SMIC sees growth opportunities in 2026 despite hesitant investor sentiment

SM INVESTMENTS CORP. (SMIC) expects continued growth next year, citing opportunities outside the National Capital Region (NCR) and in infrastructure and energy, even as investors remain cautious amid political developments, supply chain disruptions, and currency pressures, its executives said.

“We’ll just have to do our work in spite of all of the political noises. So for us, we’re going to continue what we have planned. And I think we will be able to achieve our targets next year,” SMIC Vice-Chairperson and BDO Uni-bank, Inc. Chairwoman Teresita T. Sy-Coson said in a speech late Thursday.

BDO President and Chief Executive Officer Nestor V. Tan said business uncertainty is likely to continue into 2026, as investors remain cautious amid supply chain disruptions, geopolitical risks, and political developments.

“2025 was a rollercoaster year. We started out very strong, honestly. I’m talking about the bank and the business environment. We had a very strong fourth quarter last year. It was carrying over. And then, liberation day happened. So people started to pull back. And then as things are starting to stabilize, things are starting to improve, then what happens? We have geopolitical risks, problems, and then as things are starting to settle, supply chains are being normalized, then we have the flood control thing. And now, the mood is I would say at best, somber,” he said.

He added that the uncertainty is not due to a lack of willingness to invest, but rather because investors prefer to wait for clearer signals.

“From a business perspective it’s tough this year and we continue to think that 2026 will understand because the business is uncertain. The business community is not sure what’s likely to happen and therefore if they’re not sure what’s likely to happen and therefore, if they’re not sure, then they will hold back. Not because they don’t want to invest, but they will hold back a little. And we expect that to happen 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 is also important (There will be pressure on our currency, and perception of the currency is also important),” he said.

He also cited the recent downgrades in the Philippines’ growth forecasts.

“Sends a negative message. So people will probably rethink or just defer whatever they need to do,” he said.

Despite these challenges, Mr. Tan said opportunities remain in certain areas.

“But it’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 going on. It’s growing faster than NCR in the average. So we still see some positive light there. We still see some activity in infrastructure, in energy and the like. So then, people continue to invest. 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 year earlier, according to the latest Bangko Sentral ng Pilipinas (BSP) data. This marked the lowest monthly FDI inflow in more than five years, since $313.79 million was recorded in April 2020.

For the first night months, SMIC’s net income grew 6% to P64.4 billion from P60.9 billion a year earlier, driven by its banking arm.

Meanwhile, BDO’s nine-month net income rose 4.07% to P63.09 billion from the same period last year, supported by sustained growth in its core businesses. — A.M.C. Sy