Manila: SM Investments Corp., the operator of the Philippines' largest mall chain, has reaffirmed its confidence on the growth trajectory of the country this year. SM Investments Treasury, Finance, and Planning executive vice president Erwin Pato said the SM Group aligns its investments in retail, property, and financial services, noting that the Philippine economy will continue to be consumption-driven.

According to Philippines News Agency, Pato emphasized the significance of consumption in the national economy, stating, "Seventy percent of our gross domestic product (GDP) is consumption-driven, and our business is right within that footprint. Our offerings in retail, integrated property development, and financial services will continue to be key players in this consumption-driven growth."

For its property development unit, SM Prime Holdings, Inc., SM Investments is allocating PHP100 billion this year for the construction of new malls, residences, offices, hotels, and convention centers. This investment is in anticipation of sustained growth in consumer demand and corporate activity.

Pato also highlighted SM Investments' PHP60-billion share buyback program, reflecting the firm's belief in the potential growth of its share value. "We're having this buyback because we believe in our company and its growth potential," he added.

The executive noted that the easing of interest rates and maintaining inflation within the government's target would support the country's macroeconomic fundamentals. "If that happens, it suggests a strong tailwind for the consumer story," Pato said.

In 2024, SM Investments' consolidated net income saw a 7 percent increase, rising to PHP82.6 billion from PHP77 billion.