SM Prime Holdings will increase capital
spending 66 percent next year despite a global financial crisis
that has sent developed economies into recession.
SM Prime is bucking a domestic trend in which
big corporations like the Philippine Long Distance Co. and Globe
Telecoms announced cuts in their 2009 spending plans earlier
this month.
The worst financial crisis in 80 years has
depressed profits at major financial and consumer companies
worldwide.
SM Prime, a unit of conglomerate SM
Investments Corp. of Henry Sy, one of the Philippines’ richest
men, said in a statement to the stock exchange it would spend
P10 billion next year from P6 billion this year.
The company is counting on steady remittances
from overseas Filipinos, equivalent to about 10 percent of
domestic output, to fuel continued growth in domestic
consumption despite the deepening financial crisis globally.
The company, which recorded a 9 percent
increase in net income in the third quarter, said 70 percent of
the 2009 capital spending plan would go to the construction of
new shopping malls and expansion of existing ones.