SM INVESTMENTS CORP. (SMIC) expects continued growth next yr, citing opportunities outside the National Capital Region (NCR) and in infrastructure and energy, at the same time as investors remain cautious amid political developments, supply chain disruptions, and currency pressures, its executives said.
“We’ll just should do our work despite all the political noises. So for us, we’re going to proceed what we’ve planned. And I feel we are going to have the opportunity to realize our targets next yr,” SMIC Vice-Chairperson and BDO Uni-bank, Inc. Chairwoman Teresita T. Sy-Coson said in a speech late Wednesday.
BDO President and Chief Executive Officer Nestor V. Tan said business uncertainty is more likely to proceed into 2026, as investors remain cautious amid supply chain disruptions, geopolitical risks, and political developments.
“2025 was a rollercoaster yr. We started off very strong, truthfully. I’m talking in regards to the bank and the business environment. We had a really strong fourth quarter last yr. It was carrying over. After which, liberation day happened. So people began to drag back. After which as things are beginning to stabilize, things are beginning to improve, then what happens? We’ve geopolitical risks, problems, after which as things are beginning to settle, supply chains are being normalized, then we’ve the flood control thing. And now, the mood is I’d say at best, somber,” he said.
He added that the uncertainty is just not attributable to an absence of willingness to take a position, but slightly because investors prefer to attend for clearer signals.
“From a business perspective it’s tough this yr and we proceed to think that 2026 will understand since the business is uncertain. The business community is just not sure what’s more likely to occur and subsequently in the event that they’re undecided what’s more likely to occur and subsequently, in the event that they’re undecided, then they are going to hold back. Not because they don’t want to take a position, but they are going to hold back slightly. And we expect that to occur going into 2026,” he said.
Mr. Tan also noted that the weaker peso could affect sentiment.
“Magkakaroon ng pressure sa currency natin. And the perception of the currency can also be essential (There can be pressure on our currency, and perception of the currency can also be essential),” he said.
He also cited the recent downgrades within the Philippines’ growth forecasts.
“Sends a negative message. So people will probably rethink or simply defer whatever they should do,” he said.
Despite these challenges, Mr. Tan said opportunities remain in certain areas.
“But it surely’s not all doom and gloom because there are still pockets of opportunities outside of the environment that we see. We still see provincial expansion occurring. It’s growing faster than NCR in the common. So we still see some positive light there. We still see some activity in infrastructure, in energy and the like. So then, people proceed to take a position. It’s just not a general positive move across the board,” he said.
Foreign direct investment (FDI) net inflows fell 25.8% to $320 million in September from $432 million a yr earlier, in accordance with the newest Bangko Sentral ng Pilipinas (BSP) data. This marked the bottom monthly FDI inflow in greater than five years, since $313.79 million was recorded in April 2020.
For the primary night months, SMIC’s net income grew 6% to P64.4 billion from P60.9 billion a yr earlier, driven by its banking arm.
Meanwhile, BDO’s nine-month net income rose 4.07% to P63.09 billion from the identical period last yr, supported by sustained growth in its core businesses. — A.M.C. Sy