Conglomerate SM Investments Corp. (SMIC) is “cautiously optimistic” for 2024 amid rising tension in West Philippine Sea, a top executive said Wednesday night.
SMIC vice chairman Teresita Tan Sy-Coson said in an interview with reporters the group watches external factors such as the Philippine-China tension, climate change and global uncertainties which could affect overall businesses.
“Left our own, the Philippine economy is okay, but there is geopolitical and there is climate change. So many things are not predictable,” Sy-Coson said.
Given these concerns, she said the group expects 2024 to be just a continuation of 2023.
“It is our group’s assessment. We are going to be okay, but we are going to be watchful,” Sy-Coson added.
Tensions around the West Philippine Sea grew on China’s provocative actions which resulted in collision of vessels. These incidents prompted the Philippine government to step up its ties with the US-Japan-Australia coalition.
Sy-Coson, however, warned about being “too antagonistic” against China which is a major trading partner of the Philippines.
“China is very close to us, so we cannot be too antagonistic even though we know what is happening. We should do that through more peaceful negotiations,” she said.
“As a business, we don’t know what will happen there. We just hope there are no skirmishes in the areas because what ever happens there will affect all of us,” she said,
SMIC, one of the largest conglomerates in the country, has investments in real estate, banking and retail businesses. It also operates seven malls in China.
SMIC’s consolidated net income reached P55.9 billion in the first three quarters, up 30 percent from P42.9 billion in the same period last year on strong contribution from core businesses.
Nine-month consolidated revenues increased 15 percent to P440.4 billion from P382 billion.
“This year was okay. It’s not the best, it’s not worse. I think maybe next year will be the same,” Sy-Coson said.
