Even with the economic downturn, SM Prime Holdings Inc. is not slowing down on capital spending as it earmarks P12 billion for expansion in the Philippines and China this year.

Of the amount, P6.5 billion will go to the construction of new malls and expansion of existing ones locally while the remaining P5.5 billion will be spent to lay the groundwork for new malls in China. This year’s capital outlay is double the P6 billion that SM Prime alloted in 2008.

‘We view things from a long-term perspective. We remain positive about the prospects in the Philippines,’ SM Prime chief finance officer and executive vice president Jeffrey Lim said, noting that they want to be well positioned when the economy recovers.

Company president Hans Sy said, meanwhile, they believe remittance inflows from abroad and mushrooming of business process outsourcing companies, where a lot of their shoppers work, will continue to support their operations.

‘It (growth) may not be bigger than last year’s but there will still be growth,’ Sy said.

SM Prime will open new malls in Naga in Camarines Sur, Rosario in Cavite and Pamplona in Las Pinas within the year. It is also expanding SM City Rosales by 17,000 square meters as well as SM City North EDSA, by 34,000 sqms.

Next year, the company will open three malls in Tarlac, and San Pablo and Calamba in Laguna.

Lim said they have 14 local sites lined up for development until 2012.

In China, SM Prime is building its fourth mall, which will have a gross floor area of 73,000 sqms. The mall will open in Suzhou by early 2010. The company’s next two China malls will rise in the cities of Chongqing and Zibo by 2011 and 2012, respectively.

“We are now working on strengthening our organization overseas and further enhancing our operational efficiency in line with our planned expansion in China,” said Sy.

SM Prime expects to post a 15-percent growth in revenues for the first quarter of 2009, with official figures to be out by May.

The company will own and manage a total of 39 malls by the end of this year, from 36 in 2008.