SM Prime Holdings Inc., the country's leading mall developer and operator, is setting aside P10 billion for the construction of new malls in the Philippines and in China next year.

In an interview with reporters, SM Prime executive vice president Jeffrey Lim said the bulk or P7 billion of the amount will be spent locally while P3 billion will go to the company's mall operations in China.

Lim said they are building five more shopping centers in the Philippines in 2009, on top of the expansion of various existing malls.

In China, he said they will put up a mall in Suzhou City by the end of next year, while another will be opened by 2010 in ChongQuing. One more SM mall will rise in Xiandong in 2011.

Lim noted that their budget will be funded by a combination of internal cash and debt.

"About half will be raised via the issuance of instruments such as preferred shares or bonds. The timing will depend on market conditions" he said.

For the remainder of 2008, SM Prime will open SM Supercenter Rosales in Pangasinan and SM City Baliuag in Bulacan, bringing the total number of its malls to 33 nationwide. The new Atrium of SM Megamall is also expected to open for business in November. SM City North EDSA and SM City Fairview, on the other hand, are currently undergoing expansion and due for completion next year.

SM Prime chief finance officer Jose Sio said they will be closely watching developments in the economy in the next six months. He said they may slow down in their expansion plans if the global financial crisis deepens.