Jobs on the Rise: New Urban Developments Are Driving Employment Growth

Cities worldwide, while diverse in demographics and culture, share a common pursuit of progress through new urban developments. These projects not only enhance convenience amid urban congestion but also stimulate local economies and communities through various socio-economic activities like job creation.

Whether in the form of public transportation, cutting-edge business districts, or towering residential communities, a single new development requires a whole host of jobs from pre-construction, to construction, and completion. These range from real estate developers and planners to construction workers and suppliers – all requiring extensive collaboration for successful project development.

Hudson Yards: Direct and indirect employment opportunities

Photo credit to Following NYC. Featuring ‘Vessel’, a honeycomb-like structure and visitor attraction in the Hudson Yards Development in Manhattan, New York City. 

The cycle of job creation doesn’t stop after completion. A new development also drives indirect employment opportunities generated from industries attracted or related to the development. 

Such is the case for Hudson Yards, New York City’s 28-acre mixed-use development and considerably the United States’ biggest megadevelopment in history. It had created thousands of construction jobs that resulted in transforming Manhattan’s iconic skyline and becoming home to diverse shops, offices, cultural institutions, and hotels and residences. Ongoing operations and management of these facilities are expected to contribute to its large-scale economy, such as hosting over 55,752 workers daily and about $19 billion annually to the city’s GDP.

Dubai and Songdo IBD: Creating economic opportunities afresh

Meanwhile, cities like Dubai and Songdo International Business District (IBD) generate jobs by creating economic opportunities from the ground up. They used land reclamation as an urban development strategy to address land scarcity and high population density challenges.

Photo credit to Kadir Avşar. A closer aerial view of the Palm Islands. 

Dubai's ambitious projects, including the Palm Islands, the World Islands, and Burj Al Arab, have turned it into an ultramodern metropolis for commerce and tourism. In 2023, it drew over 30,000 new businesses, driving demand for talent in finance, legal, and digital technology sectors.

The Songdo IBD is an ongoing smart city built on reclaimed land in Incheon, South Korea. It’s designed to be an international business and residential hub with sustainable features. As of 2020, the 1,500-acre development hosts about 30,000 residents, 33,000 jobs, and 70% fewer emissions than any other development.

SM’s Integrated City Developments: Empowering local communities and residents

SM Prime contributed photo. An aerial view of SM Mall of Asia (MOA) featuring its iconic Globamaze and thriving network of retail, business, residential, and hotel developments. 

The SM Group, a leading conglomerate in the Philippines, has an ecosystem of interests spanning retail, banking, property, and mall developments across the country, making it the largest employer with over 140,000 employees.

For every SM mall development by SM Prime Holdings, the integrated property developer of the Group, the local economy is invigorated because of the opportunities created by supporting small and medium enterprises (SMEs) that comprise about 68% of its mall tenants. For instance, SM City Bataan, SM Supermalls’ 83rd mall, employs about 96% of its mall administration staff who are residents called Bataeños, including two in leadership roles. It also proudly showcases local industries by partnering with homegrown businesses like family-owned brands and locally managed franchises. 

Job security, stable income, and tax revenues contribute to the local workforce’s quality of life; and SM Prime ensures to manifest these waves of progress in its developments, especially in its future plans for smart cities in the Philippines to be spearheaded by its ongoing 360-hectare development in Pasay City.

New urban developments are catalysts for growth, innovation, and avenues for increased prosperity, shaping local economies through job creation and improved lives. The success of these city centers requires a network of opportunities – from its pre-construction supply chain to empowering businesses for individuals to thrive and contribute to the communities.

SM Prime Marks 30th Anniversary with Record-Breaking Income, PHP 100 Billion Investment for 2024

Manila, Philippines - SM Prime Holdings, Inc. (SMPH), the leading integrated property developer in the Philippines, marks its 30th anniversary as a publicly listed company with the announcement of its highest-ever recorded income and a ₱100 billion investment for its partners, stakeholders, and communities they operate in. With eyes set on the future, SM Prime reaffirms its position as a catalyst for economic development and community advancement.

Record-Breaking Performance

During the Annual Stockholders Meeting held on April 23, 2024, SM Prime announced its highest-ever recorded income, reaching PHP40 billion in consolidated net income, marking a 33% increase from 2022. Additionally, the company's revenues surged by 21%, soaring to PHP128.1 billion, a notable growth from the previous year. The consolidated operating income also saw significant growth, rising by 24% to PHP61.3 billion.

The outstanding performance can be attributed to SM Prime's mall business, driving 56% of consolidated revenues and a 30% growth to PHP71.9 billion in 2023. This growth was bolstered by a 24% increase in mall rental income, amounting to PHP61.3 billion. Moreover, the opening of four new malls in 2023 expanded SM's retail presence to 85 malls in the Philippines and 8 malls in China.

Meanwhile, SM Prime's residential business group, led by SM Development Corporation (SMDC), recorded an 8% growth in revenues to PHP43.1 billion in 2023. The residential group's gross profit rose by 15% to PHP25.4 billion, with reservation sales standing at PHP102 billion.

In addition to its mall and residential businesses, SM Prime's other key segments, comprising offices, hotels, and convention centers, contributed 10% of consolidated revenues, reported PHP13.1 billion in revenues in 2023, marking a remarkable 26% increase from the previous year.

Commitment to Shared Growth

At the core of SM Prime's success is its unwavering commitment to shared prosperity in every city where they are present. With a strategic ₱100 billion investment capital expenditure in 2024, SM Prime aims to reinvest in its partners, stakeholders, and communities.

SM Prime aims to continuously expand and develop new places for every Filipino to enjoy. 60% will be dedicated to enhancing its malls, development of new residential properties under SMDC, and construction of new hotels and convention centers. 40% will be directed towards acquiring new properties and coastal developments to pave the way for modern, eco-friendly urbanization.

Commitment to Environmental Sustainability and Disaster Resilience SM Prime has always been committed towards creating a sustainable future. SM Prime continues to work towards its goal of achieving Net Zero carbon emissions by 2040, aligning with the Department of Energy's target of reaching a 35% renewable energy share by 2030. Through partnerships with renewable energy suppliers and organizations like the World Wildlife Fund for Nature (WWF), SM Prime endeavors to reduce its environmental footprint and advocate for sustainable practices in all areas of its operations.

SM Supermalls' SM Cares and SMDC's The Good Guys also remain actively engaged in various community initiatives, such as conducting community disaster preparedness programs, providing support programs for senior citizens and persons with disabilities, and promoting job generation and entrepreneurship through nationwide job fairs and MSME programs. Other initiatives include coastal clean-ups, the donation of school buildings and fire trucks, and the organization of eco-camps for youth.

Jeffrey C. Lim, President of SM Prime Holdings shared, “At SM Prime, we're not just building spaces; we're cultivating lifetimes of progress and shared growth. Our commitment lies in empowering Filipinos to thrive within their neighborhoods, whether through convenient shopping experiences at SM Supermalls, quality living in SMDC homes, or fulfilling work environments in our office properties. We believe that individual success fuels community prosperity, creating opportunities, and driving the nation's growth for many years to come.”

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people. For more information, visit www.smprime.com.

SM Prime Invests in Future Sustainability Leaders with Scholarship Program

Inspired by the late Henry Sy Sr.'s belief in the power of education and driven by their commitment to sustainability, leading integrated property developer SM Prime Holdings, Inc. (SM Prime) has launched a scholarship program in partnership with the University of the Philippines Los Baños (UPLB).

Aptly called the "SM Sustainability Scholarship," the initiative reflects SM Prime's commitment to both educational access and sustainability stewardship.

The program will fully support ten deserving students through their undergraduate studies at UPLB, providing them with the opportunity to pursue degrees in either Bachelor of Science in Human Ecology or Bachelor of Science in Forestry. These fields align with SM Prime's focus on building resilient communities and fostering a sustainable future.

The scholarship recipients, meticulously chosen for their academic excellence and dedication to sustainability, were formally recognized during a meet-and-greet gathering at UPLB, marking the start of their journey as SM Sustainability Scholars.

SM Sustainability Scholarship. In the photo are the SM sustainability scholars with the University of the Philippines Los Baños’ Office of Scholarships and Grants Director Assoc. Prof. Ariel L. Babierra, Ph.D., College of Forestry and Natural Resources’s Prof. Marilyn Combalicer, College of Human Ecology Dean Dr. Jennifer Amparo, Vice Chancellor for Student Affairs Dr, Janette Malata-Silva, Scholarship Affairs Officer Ivy Salarde and SM Prime AVP Rida Reyes-Castillo with the rest of the SM team.

Each scholar will receive a full scholarship covering tuition fees, a monthly living allowance, and a book allowance, ensuring they can focus on their studies without financial worries.

During the gathering, College of Human Ecology (CHE) Dean Dr. Jennifer Amparo expressed that the pursuit of sustainability is most effectively undertaken collaboratively.

“CHE is one of the colleges that puts a premium on interdisciplinarity and trans-disciplinarity because we believe that in sustainability, you don’t work in silos. We need to work together and build each other’s skills, know-how, and also our programs together to ensure sustainability,” she said.

“I would also like to thank SM Prime for putting emphasis on this scholarship. SM Prime did not just provide the finances or scholarship. They invested the time to really meet our scholars and provided other support mechanisms to ensure that our scholars thrive in their academic lives. This is also a manifestation of SM’s commitment to sustainability by really developing our future sustainability leaders,” she added.

College of Forestry and Natural Resources’ Prof. Marilyn Combalicer also extended the college’s support to the scholars on behalf of the college’s dean, Dr. Marlo Mendoza: “We hope to continue nurturing such meaningful collaboration and initiatives that enhance our educational experience and initiatives for our students. Rest assured that we will continue providing support to our students in ensuring their growth and success in both academia and beyond.”

SM Prime’s AVP Rida Reyes-Castillo meets the SM sustainability scholars.

Meanwhile, SM Prime AVP and Head of Marketing, PR and Corporate Communications, Rida Reyes-Castillo, echoed that the fundamental values of the company are intricately interwoven with both education and sustainability.

“SM Group’s founder, Mr. Henry “Tatang” Sy, Sr. believed that education is a great equalizer, and he envisioned that sending one child to college would create ripples of social good not just for families but for an entire community,” she said. “The improvement of the well-being of the youth and the partner communities is something that we at SM invest in.”

For decades, the SM group has embraced the responsibility to contribute to nation building through social good programs that are geared towards quality education, sustainable agriculture, healthcare, and disaster response. By helping improve the quality of life of the people in these host communities, social development and investment go hand in hand with business growth to achieve a better future for all.

This is a paid partnership with SM Prime Holdings.