SM Prime Holdings, Inc. said it sees potential growth opportunities this year despite the challenging economic outlook.
“We are very positive despite the current situation. You know us. We have been trained. The more challenging it is, the more opportunities there are for expansion,” SM Prime Executive Committee Chairman Hans T. Tsai told reporters last Friday.
Although he expects a “challenging” year for the country's economy, secondary effects, such as a weaker peso, could present growth opportunities for the company's retail business.
“Even with the weakness of the peso, it means more OFW (overseas Filipino worker) money coming in. It means more opportunities,” Mr. Sy said.
On January 15, the peso closed at a record low of P59.46 per dollar. It broke the P59 level for the first time on October 28, 2025 and analysts predict it could fall further, possibly even below P60, following the flood control scandal.
Although SM Prime's retail sales have benefited from the weak local currency, Mr Sy said other sectors may face negative impacts.
“With the weakness of the peso, our retail sales are actually improving. You can see the improvement. But, on the other hand, I am a little worried about the future. I don't know how much impact it will have on other businesses, because if other businesses are affected, it will not be good for the economy,” he said.
He added: “So, we will keep a very close eye on how the government reacts to this. But, as far as the private sector is concerned, this is an opportunity to increase your market share.”
Mr Tsai also sees potential growth for SM Prime in renewable energy, but he stressed the need to watch how government support evolves amid fiscal and expenditure issues.
He said, “We are quite open, but we also have to see how the government supports it. As you know, there is a big controversy going on in this area. We are also keeping an eye on it. But hopefully it is not that bad, so we can actually support it.”
He said he was monitoring “big, bold reforms” planned by the government, aimed at restoring investor confidence following a widespread corruption scandal involving state infrastructure projects.
“I wouldn't say I'm optimistic or pessimistic about it, but I'm watching it closely, especially after what happened last year with the flood control issues,” Mr Tsai said.
SM Prime's net income rose 8.07% year-on-year to P13.01 billion in the third quarter of 2025 from P12.04 billion, bringing nine-month profit to P37.89 billion, up 9.66% from P34.55 billion in the same period of 2024.
On Monday, SM Prime Holdings shares fell 25 centavos or 1.1% to close at P22.55. -Aaron Michael C. Cy