Despite a turbulent economic climate, SM Investments Corporation anticipates continued growth in the coming year, focusing on regions beyond the capital and key sectors like infrastructure and energy.
Executives acknowledge a prevailing sense of caution among investors, fueled by ongoing political uncertainties, persistent disruptions to global supply chains, and fluctuations in currency values.
Teresita Sy-Coson, Vice-Chairperson of SMIC, emphasized a commitment to pursuing planned strategies, stating the company remains confident in achieving its targets despite external “noise.”
The past year has been marked by volatility, according to BDO President Nestor Tan, beginning with strong momentum that was subsequently tempered by various unforeseen events.
Initial positive trends were disrupted by shifts in the political landscape, followed by escalating geopolitical tensions and, more recently, challenges related to flood control measures – creating a somber mood within the business community.
Tan clarified that the current hesitancy to invest isn’t a lack of desire, but rather a preference for greater clarity before committing capital.
Businesses are adopting a “wait-and-see” approach, anticipating that uncertainty will likely extend into 2026, delaying significant investments until a more stable outlook emerges.
Adding to the complexity, the weakening Philippine peso is creating additional pressure and influencing investor sentiment, as perceptions of currency stability play a crucial role.
Recent downward revisions to the Philippines’ economic growth forecasts further contribute to the cautious atmosphere, prompting businesses to reconsider or postpone planned initiatives.
However, the outlook isn’t entirely pessimistic. Opportunities persist in specific areas, particularly in provincial expansion, which is currently outpacing growth within the National Capital Region.
Investment activity continues in vital sectors like infrastructure and energy, offering pockets of positive momentum even amidst broader economic headwinds.
Recent data from the Bangko Sentral ng Pilipinas reveals a decline in foreign direct investment, with net inflows falling 25.8% in September – reaching the lowest level in over five years.
Despite these external pressures, SMIC reported a 6% increase in net income for the first nine months of the year, reaching P64.4 billion, largely driven by the performance of its banking division.
BDO also experienced growth, with its nine-month net income rising by 4.07% to P63.09 billion, supported by consistent gains in its core business operations.
The company remains focused on navigating these challenges and capitalizing on emerging opportunities to sustain its growth trajectory.
