SM Investments Corp., unlike other retail owners, is embracing the further liberalization of Philippine retail trade while looking forward to the entry of small foreign brands.
SM Investments vice chairman Tessie Sy-Coson said foreign retailers still needed to team up with a local investor, who is more familiar with the local business terrain.
“There’s always the threat (from foreign retail) but there’s also the positive and negative. You have to live through that. For big ones like us, if you can’t beat them, join them,” she said at the sidelines of the pre-event briefing in Makati City for the Asean Business and Investment Summit.
SM Investments, which owns the biggest retail chain in the country, said foreign retailers would have a difficult time learning and adapting to the peculiarity of the Filipino market, “so they have to partner somehow or hire Filipinos as part of their team.”
Despite the proposed lower financial hurdle, SM Investments said the trade liberalization would lead to increased foreign investments.
Sy-Coson conceded the reduced ceiling of $200,000 was a bit small for an investment.
But “this should not come from my perspective only. Let’s hear (what) other people (has to say). I guess it depends upon how the country will see what is small or how legislators will see it,” she said.
The trade liberalization has encouraged foreign companies to invest in the Philippines.
“In the future, we need to have more restaurants, (more retail outlets). And then we will become an entertainment center. We need to have the attention shifted to the Philippines, especially as we conclude the Asean sponsorship this year. By bringing the attention to us, we will have more investors interested in the Philippines,” Sy-Coson said.
She said with the advent of the Asean Economic Community, member-countries had started to evolve as a shared economy and partnerships.
While malls in the US have started closing down due to the convergence of retail platforms, SM Investments is confident it will maintain its share of the local retail.
“We’ll try not to close. SM is part of the Filipino lifestyle. We’ll try to continue that,” Sy-Coson said.