SM Group bullish on countryside development

MANILA, Philippines — SM Investments Corp. (SMIC), the listed conglomerate of the SM Group, is bullish on countryside development with remittances from overseas Filipino workers (OFWs) propelling growth.

A large chunk of the remittances from OFWs are going to their families in the provinces, said SMIC president Frederic DyBuncio.

Another factor driving growth is increasing connectivity in the countryside which is also driving the expansion of business process outsourcing (BPO) firms.

Both BPO revenues and dollar remittances from OFWs are each estimated at over $30 billion.

These twin drivers can influence demand in emerging cities, making it timely for SMIC to hitch a ride on these so-called next wave city developments.

“Given these, opportunities for growth in the Philippines remain high. Heading into 2023, we remain optimistic as a group,” DyBuncio said.

He said majority of the expansion is focused on the regions especially in emerging regional centers outside of Metro Manila.

“Our businesses are well-positioned and have clear strategies to participate in the country’s strong growth,” DyBuncio said.

Optimistic about the country’s growth potential, SMIC is allocating P80 to P90 billion for capital expenditures mainly for expansion activities across the group, with the bulk going to property development.

Last year, SM’s property arm, SM Prime Holdings, opened four new malls in the provinces.

These are SM City Roxas in Capiz, SM City Tanza in Cavite, SM City Sorsogon in Bicol and SM City Tuguegarao in Cagayan.

The company closed 2022 with 82 malls in the Philippines, consisting of 58 malls in the provincial areas and 24 malls in Metro Manila.

For this year, SM Prime is scheduled to open at least three new malls.

For the company’s residential segment, SM Prime has 84 residential projects. It aims to launch 15,000 to 20,000 residential units in 2023.

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The article was originally published in PhilStar Global and written by Iris Gonzales