SM Prime Holdings Inc. has officially withdrawn its proposal to redevelop the Baguio City Public Market, Mayor Benjamin Magalong confirmed after receiving a formal letter from the company.
A report by Mountain Beacon said a source familiar with the matter claimed SM Prime was “dismayed over the lies and inaccuracies being circulated,” which the company believed had negatively affected its corporate image. The same report also cited misinformation as a key factor behind the decision.
Before the withdrawal, Mayor Magalong had already addressed allegations tied to the project, including: supposed corruption, claims the market would become a mall, and accusations that city councilors accepted bribes.
“I pity some councilors who are being accused of accepting bribes. Those are lies,” the mayor said in a December 22, 2025 statement.
SM Prime Outlines Reasons in Official Statement
In its letter addressed to Mayor Magalong, SM Prime stated:
“We write in connection with the Proposed Baguio City Public Market Redevelopment Project (the ‘Project’). Before anything else, we wish to thank the City of Baguio and your good office for actively participating in and encouraging the Public-Private Partnership (‘PPP’) process for purposes of spurring development within the City.”
SM Prime then formally notified the city of its withdrawal, saying:
“However, with the current conditions surrounding the Project, we regret to inform your good office that SM Prime Holdings, Inc. (‘SMPHI’) has decided not to proceed with the Project and is hereby withdrawing therefrom since it appears that Baguio City, the executive and legislative branches, the BCPM vendors and other stakeholders in the project have several matters to settle before the Project may be undertaken.”
Despite withdrawing from the project, the company also reaffirmed its support for the city.
“Please trust that SMPHI shall remain a steadfast supporter of the City of Baguio and will gladly offer its assistance to the City in furthering its development and other objectives.”
Future of the Project Remains Uncertain
The redevelopment had been planned to modernize the decades-old public market. With SM’s exit, long-discussed upgrades, including market sanitation, organization, and structure, are now uncertain.
Some residents had also expressed frustration over the current market condition.
“Masikip, masukal, mabaho at hindi organisado ang palengke…Nais din nilang mapaganda ang palengke. Maayos na sana kaso sayang lang talaga,” Jordan Tablac, a local resident shared.
Councilor Weygan earlier said redevelopment must still continue.
“Regardless of the result, the redevelopment of our public market must push through. There is no room for complacency…A market for all—and a market built for future generations. Anong market ang gusto nating ipamana sa kanila?” said the councilor.
The question now facing the city is whether this outcome truly benefits Baguio or merely preserves the status quo. It also raises concerns about the signal being sent to future investors considering long-term partnerships with the city, even as residents and vendors continue to express a clear desire for a safer, cleaner, and better-managed public market.
