SM Group Eyes Expansion in Underserved Sectors and Sustainability in 2025

The Sy family’s SM Investments Corp. (SM Group) announced plans for continued expansion in 2025, targeting underserved sectors while maintaining a cautiously optimistic outlook.

SM Group’s optimism stems from the Philippine economy’s ongoing growth, despite challenges like peso volatility and high inflation. “The business sector has adapted well,” said SM Group President and CEO Frederic DyBuncio. He noted that easing inflation could boost consumer confidence and open opportunities in consumer-focused industries.

Nationwide Expansion and Investments

SM Group plans to extend its reach into underserved areas to drive economic development, improve access to retail and financial services, and develop integrated property projects. “By investing and expanding to more areas nationwide, SM creates new markets and helps stimulate sustained economic activities,” DyBuncio explained.

The group also aims to invest in high-potential ventures, particularly renewable energy and logistics, to support long-term economic growth.

Sustainability Initiatives

SM Group has invested in clean energy through the Philippine Geothermal Production Company (PGPC), supplying 300 MW of geothermal steam. It also collaborates with the Department of Energy to achieve a 50% renewable energy supply by 2040.

In line with circular economy principles, SM Prime Holdings partnered with GUUN Co. Ltd. to reduce landfill waste by converting non-recyclable packaging into alternative fuel.

BDO Unibank, SM Group’s banking arm, is a leading supporter of renewable energy projects, funding ₱898 billion in sustainable finance, including 59 renewable energy initiatives by December 2023.

Logistics and Infrastructure Development

Through its logistics subsidiary, 2GO, SM Group launched MV Masigla and MV Masikap in 2024 to connect goods across 19 ports in the Philippines, including Iloilo, Bacolod, Cagayan de Oro, and Manila. This supports the government’s push for upgraded tourism infrastructure and regional growth.

Looking Ahead to 2025

“Our focus for 2025 will be to drive purposeful growth, empowering communities and partners through our investments towards a sustainable future,” DyBuncio said.