What: SM Prime Holdings has underlined its regional development strategy in the archipelago with the grand opening of a new mall in Mandaue City, Cebu on October 25.

Why it is important: SM Prime is committed to concentrating more resources in regional areas outside metropolitan Manila, where more than 40% of the company’s mall floorspace already resides.

The opportunity for regional growth in consumer spending comes partly as a result of government regional development programs, in much the same way as is occurring in Thailand (shifting economic development from Bangkok to the provincial capitals), Vietnam (emphasising growth outside of Ho Chi Minh City and Hanoi) and China (investing more in cities inland from the first-tier coastal metro areas). In the Philippines, SM Prime is well equipped to drive the development process because it develops its own ‘lifestyle cities’, or what it calls ‘integrated developments’ that include retail, residential, office, hotel, convention and entertainment uses.

A new mall for Cebu: Why SM Prime remains committed to regional expansion