The dynamic Filipino business community is thriving as the Philippines plays an increasingly important role in the Association of Southeast Asian Nations (ASEAN). The country’s close affinity with Japan meanwhile is encouraging Japanese investment, creating business opportunities and strengthening economic partnerships.
Growth forecasting
With its deep experience in tourism, banking, real estate development and shopping mall management, SM Investments Corp. is a key growth-driver within the Filipino economy. As a leading conglomerate, the company has made significant contributions to the Philippines and remains committed to serving people across the country.
“The Philippines is a growing and rapidly developing country with many communities for us to serve, and we understand the important role we play in helping to build these communities,” said Vice Chairperson of the Board Teresita T. Sy-Coson.
SM Investments’ growth mindset taps into the opportunities present in the country, and it is further expanding its footprint in the provinces, fully aware that it is in the peripheries where it is needed most.
Nurturing its excellent relationships with stakeholders, local and international suppliers, consumers and employees has enabled SM Investments to thrive.
To strengthen its core businesses, SM Investments has taken deliberate and decisive steps to acquire new assets in high-growth sectors that have significantly contributed to the company’s business ecosystem.
Recognizing the value of connecting the various regions across the country, the company has increased its stake in the logistics industry, further creating a stronger and more responsible ecosystem. In addition, dedicated leadership efforts and strong partnerships with the public sector are enabling the company to better serve its customer base.
Retail therapy
As consumer demand increases in the Philippines, SM Investments is serving rural communities and bringing retail solutions to the provinces.
Subsidiary SM Retail currently has 3,590 retail outlets across the Philippines and consistently delivers quality and affordable products and services.
In the first quarter of this year, 89 stores were opened, with over 80% outside of Metro Manila. In grocery and food retailing, SM Retail operates in different formats ranging from stand-alone hypermarkets and large supermarkets in malls to midsize neighborhood stores and small minimarts. This strategy gives customers more options based on their budget.
Last year, SM Retail expanded its presence in rural areas by opening four SM stores in Roxas, Tanza, Sorsogon and Tuguegarao. The food group, which includes SM Supermarket, SM Hypermarket, Savemore, Alfamart and Waltermart, added 231 stores across the country.
Alfamart, the company’s minimart chain, recently opened its 1,500th store in the Philippines near a residential cluster in Barangay Nancalobasaan, a neighborhood in Urdaneta, Pangasinan province. The opening of this store, the first in the province, is in line with SM Retail’s philosophy of going where the company can make a difference.
“Through all these developments and openings in the provinces, we are strengthening our omnichannel approach,” Sy-Coson said.
“Today our customers across the country can browse our products online and have the option of picking them up or having them delivered to their homes. In order to tap into new channels and reach as many communities as possible, we are further improving our digital offerings through the ShopSM app.”
Housing a nation
As with many countries across ASEAN, there is a lack of affordable housing in the Philippines. With a housing backlog of around 6 million units, SM Investments is addressing this challenge head-on.
SM Development Corp., SM Prime Holdings’ residential arm, has been actively pursuing opportunities in the housing segment.
Having established a growing number of residential projects in key provincial cities with emerging economies and growing populations, SMDC developments are integrated into SM malls or have their own commercial establishments within communities. Developments are near transport terminals and major thoroughfares for the convenience of residents.
“We understand that demand is growing so we continuously launch projects across the country to suit markets and demographics,” Sy-Coson said.
“We currently have 18 projects in the provinces and 46 projects in Metro Manila, to address the current deficit and future demands within the economic and low-cost segments. We have also initiated residential development projects in Bulacan, Davao and Pampanga.”
Money matters
Over 50% of the population is still “unbanked” in the Philippines and this presents huge opportunities for businesses and investors.
Through BDO Unibank Inc. and China Banking Corp., SM Investments is committed to bringing appropriate financial services to the broader community. With over 2,300 bank branches across the country, SM Investments is encouraging financial inclusion for every Filipino.
“We are continuously opening new bank branches across the country as our customers prefer banking in person with someone they can see and trust,” Sy-Coson said.
BDO’s agency banking service Cash Agad has been created to further improve accessibility and allow customers to utilize and manage their money across several platforms.
Since 2014 Cash Agad has been making banking accessible to Filipinos, particularly in low-income and rural areas. BDO continues to expand Cash Agad’s coverage through community partnerships while adding more services, such as “cash-in” and facilitated bill payments. Today, all 82 provinces in the nation have access to Cash Agad.
BDO Network Bank, BDO’s community banking arm, provides initiatives and innovations to better serve more individuals and communities. Bank tellers and account officers travel long distances and go to underserved communities to provide access to financial services and solutions.
SM green movement
SM Investments continues to successfully balance its business with initiatives designed to strengthen the company’s push for sustainability.
“We want to continue providing our customers with options which help them to ‘go green’ and live a more sustainable and healthy lifestyle,” Sy-Coson said.
Within its retail business, the company is expanding its Green Finds campaign. As part of its SM Green Movement, this campaign is designed to promote products that are eco-friendly and made from natural and local ingredients, while also actively supporting local Filipino communities.
The SM Green Movement is driving change. Last year, over 50% of SM Prime Holdings Inc.’s energy usage was drawn from renewable sources.
The effort to “go renewable” is also in line with BDO’s effort to finance renewable energy projects. Today, the bank is leading sustainability initiatives and has financed 58 renewable energy projects as of the first quarter of this year.
BDO has made a strong commitment to halve its involvement with coal before 2033. This will ensure that coal constitutes no more than 2% of its overall loan portfolio within 10 years.
BDO recently celebrated an important milestone when it issued the first private-sector blue bond in Southeast Asia. The issuance expands financing for projects that help prevent marine pollution, preserve clean water resources and support the country’s climate goals.
The company is proud to have partnered with the World Wildlife Fund to host a conference that was aimed at launching a private-sector climate alliance. The event also raised public awareness regarding climate advocacy.
As the company’s contributions to the Philippines gain momentum across the country, SM Investments’ environment-positive initiatives are also set to continue into the future.
