By JON VIKTOR D. CABUENAS, GMA Integrated News
SM Investments Corp. (SMIC), the holding firm of the Sy family's businesses, said Wednesday it is focusing on remaining agile, even as the country's fundamentals remain sound amid the ongoing global tensions brought about by the tariffs announced by US President Donald Trump.
According to SMIC chairman and independent director Amando Tetangco Jr., the company's businesses remain stable, as the country's economic growth, inflation, and remittances remain strong.
"In the case of SM, the company, the core businesses in particular—retail, banking, property—are closely tied to the domestic economy and the everyday needs of Filipinos. These sectors continue to show stability and relevance unless market conditions change," he said during the company's annual stockholders meeting in Pasay City.
"As consumption patterns continue to evolve, we are positioning ourselves, continue to position ourselves to meet new demands while preserving the strengths that have anchored our group over the decades. Our focus is to remain agile, maintain financial discipline, and stay well-positioned for sustainable growth," he added.
During what US President Donald Trump termed as a "Liberation Day" announcement, he said America plans to slap a 17% reciprocal tariff on Philippine goods, which compares with the 34% rate that Manila charges against US goods.
This was set to take effect on April 9, but Trump announced a 90-day pause on most countries except China, while countries such as the Philippines could still face a baseline 10% tariff.
Tetangco noted that the country's macroeconomic fundamentals remain sound, exports of goods account for only some 15% of the gross domestic product (GDP), which gives the country some breathing room compared to other countries which rely more on exports, and could face even higher tariffs.
"We remain conscious that the environment is changing and we should be alert to the changes both in terms of what is happening to the trade side as well as what is happening on the market side," he said.
"Generally to be resilient, I think we need to be flexible in shifting conditions and protect long-term growth. We need to invest in prediction, adaptability, and resilience. These are the three things that will help us go through or navigate during this challenging period," he added.
SMIC is engaged in retail through The SM Store, SM Supermarket, SM Hypermarket, SaveMore, Walter Mart Supermarket Inc., and Alfamart; property through SM Prime Holdings Inc.; and financial services through BDO Unibank Inc. and China Banking Corp.
Its property unit SM Prime on Tuesday said it has no plans to launch its real estate investment trust (REIT), which it initially targeted to establish by the second half of 2023, due to the prevailing market conditions.
SMIC also has equity investments in other sectors such as the Neo Group, Philippine Urban Living Solutions and CityMall Commercial Centers Inc., Belle Corp., 2GO Group Inc., Airspeed, Goldilocks, and Atlas Consolidated Mining & Development Corp.
Shares in the company closed Wednesday at P870.00 per share, up by P15.00 or 1.75% from Tuesday's finish of P855.00. — VDV, GMA Integrated News
