This is nice! Inspiring!
Subject: [CITAALasVegas] Why Henry Sy Believes the Philippines is not Hopeless
Why Henry Sy Believes the Philippines is not Hopeless
"I am optimistic that we can achieve a better future. It is not true
that the Philippines is a hopeless case." 82-year-old SM Group and
Banco de Oro founder Henry Sy recently told The Philippine STAR. "I am
an immigrant who came here at 12 years old, spoke no English or Tagalog,
but I came to appreciate the natural beauty and many economic advantages
of the Philippines more than many other people do, and I kept working
and investing with positive thinking."
The exclusive three-hour interview took place at his simple but elegant
bungalow in North Forbes Park , Makati City, and at Tanabe Japanese
Restaurant in his SM Mall of Asia in Pasay City .
In the over two decades I have known the legendary rags-to-riches taipan
and shopping mall pioneer, Henry Sy has become more mentally sharp and
energetic than ever before. He is strong despite his weak knees, which
occasionally forced him to use the wheelchair when we briefly toured his
newest pride and passion at the SM Mall of Asia.
PHILIPPINE STAR: Congratulations on the success of the SM Mall of Asia.
What did your competitors say about your biggest shopping mall project
yet?
HENRY SY: I called Robinsons mall boss John Gokongwei, Jr. to personally
invite him to the blessing of the SM Mall of Asia, but he said he
couldn't make it. Even though we are competitors, I do not think
Gokongwei has any complaints about me.
Your executives tell me that one million people came to the SM Mall of
Asia on your first day, May 21, then 400,000 came the next day, Monday.
Why are people coming here, when this location is not along a highway
like SM Megamall or at a crossroads like SM North Edsa ?
A lot of the customers to this mall came from the provinces and they
enjoy touring the place. It is not only constructing the place that
creates a good mall, we at SM create destinations using continuous
research, studies and new ideas to match the needs and wants of the
people. Doing a mall is not only construction of the physical place,
what's important is the merchandising mix. We strive to serve the
convenience of the public. We want shopping at our malls to be a unique
and an enjoyable experience.
Why did you build an Olympic-sized ice-skating rink in this mall?
Very few people know this: I love skating and bowling. I used to roller
skate a lot in my youth on Taft Avenue, Manila . That's the reason why
there's always a skating area in all my SM malls. I want more people to
share my love for skating.
When you were a kid, what was your original ambition?
I have always wanted to be a businessman. No other ambitions. I just
wanted to be in business, even when I was a child in Fujian province,
South China .
Why did you invest P7 billion in Mall of Asia's 500 outlets, 180
restaurants and other facilities, at a time when the Philippine economy
is not that strong?
It's investment that manifests my strong confidence in the Philippine
future. I hope this biggest mall project will have a positive impact on
the Philippine economy and I hope to encourage other business people to
invest, too. Not everything I do is purely for money. Of course, as a
businessman and as head of publicly listed companies, we have to earn,
but at this point in my life, there are other considerations more
important besides just money. I took a risk and invested in SM Mall of
Asia because I wanted to create something that could contribute to
Philippine tourism growth. If I am only after profits, the easiest way
is for me to construct high-rise condominiums here along the seashore
facing Manila Bay , or I could just develop high-end subdivisions here
and subdivide the lots to cash in quickly with big profits. But
constructing this mall is a long-term investment; it is proof of my
faith in the future of the Philippine economy. I wanted to build a
beautiful destination for shopping, wholesome family-oriented
entertainment and leisure. That church outside this mall, I donated it
to everything from the structure, the land, to the interior furnishings
and decor and it's not for profit.
What else do you wish to achieve after the SM Mall of Asia? What other
big projects can we expect from you?
My biggest wish is for government, the private sector and all of us to
work together to make the Philippines the best tourism destination in
Southeast Asia. This is the reason I am always optimistic that the
Philippines is not a hopeless case, contrary to what a lot of cynics
claim. What Thailand can offer in tourism places and services, we in
the Philippines can match, except for our past reputation in
peace-and-order problems. That's what has held back our tourism growth.
Philippine economic prospects are very good; we just have some problems
in the investment environment which the government is now rectifying.
Other export industries often rely on imported raw materials and the
Philippines often only earns the labor input, but in the tourism
industry, the Philippines can earn as much as 80 percent for every
dollar spent here on food, shopping, entertainment, hotels, transport,
etc., while 20 percent probably goes to imported liquor and other luxury
goods. I am into tourism with Tagaytay Highlands, & Taal Vista Hotel.
We shall keep investing in new tourist-friendly malls, we are now
master-planning a new 5,700-hectare seaside tourism project called
Hamilo Coastal in Batangas, and many others.
Why do you think the Philippines is ideal for tourism?
First, there's the location: we are just two to three hours from all the
major Asian cities like Singapore, Malaysia, China , Hong Kong, Taiwan,
and others.
Second, our people are famous for the best service in Southeast Asia .
Third, people here are proficient in English.
Fourth, the Philippines has many naturally beautiful tourist
destinations, beaches, thousands of islands, unique flora and fauna,
vast fishery resources, and others.
Fifth, the Philippines is excellent in entertainment, which is important
in tourism. Look at the singers and bands in top hotels, from Shanghai
to Seoul to Tokyo, many of them are Filipino entertainers.
Sixth, you do not need much capital or foreign investments for tourism
development.
Seventh, Philippine hospitality is better than others in ASEAN culture
just look at the people's smiling faces. In our Chinese language, we
call this "ho khe chieng", or people who are warm and hospitable in
welcoming clients and guests.
There are many more advantages. I could spend all day and all night
talking to you about the tourism potentials of this country.
What are your suggestions on how to build up Philippine tourism?
I have a very simple formula based on common sense that will help
accelerate Philippine tourism growth: the government should improve the
peace-and-order situation as well as the international image of the
Philippines on this crucial issue. The government should upgrade
infrastructure, there should be a strong information campaign worldwide
to promote the Philippines as an ideal tourism destination. In a recent
event of HSBC, a TV talk show host of CNN asked for my advice to
politicians and I shared only a few words of advice: work more, talk
less. Government every year claims over two million tourist arrivals.
What do you think should be the ideal number of tourists coming to the
Philippines annually?
Our target should first be to attract five million tourists in the first
five years, then go for over 10 million in 10 years. Every time I meet
President Gloria Macapagal Arroyo, I always tell her this dream of mine
and my excitement about Philippine tourism potentials because I know she
really wants a better Philippine economy.
In this era of globalization, SM is also going international like the
western multinationals Walmart, Carrefour, Metro, and others.
What are your plans in China ?
We have four major projects in China . In August or September this
year, we shall inaugurate our new mall in Chengdu City , the capital of
the 100-million-people Sichuan province. China is a dynamic place, it
is amazing in progress.
Why is it that your children did not grow up spoiled, and seem to have
imbibed your work ethic and business acumen?
How did you train them?
I think it's their innate natural drive. I also trained them in the
importance of hard work. Even while they were in high school, my
children used to spend their free time working at our SM Department
Store in Makati.
Who among your six children like Tessie, Elizabeth, Henry Jr., Hans,
Herbert, and Harley will become your future successor and the leader of
the SM Groups next generation?
I cannot for now ascertain who will be the leader. We are organized as
corporations, publicly listed firms. Whoever becomes the leader of the
next generation shall rise based on merits and abilities. Unlike other
top Chinese business families in Asia, which favor male sons over
daughters, all my six children are treated equally. My eldest child
Tessie is hardworking and very capable; it doesn't matter that she's a
woman. She always wants to learn and she is a fast learner.
A billionaire asked me recently who is richer, you or Lucio Tan?
How can I know for sure who is bigger in net worth when each person has
his own strengths that not everyone fully appreciates? I don't like to
say this guy is the biggest in wealth, because some people have wealth
which is hidden and isn't that a fair point of view?
John Gokongwei Jr. told me that when he first applied for a loan with
PBCom it was not approved, and it was China Bank's Dee K. Chiong and Dr.
Albino SyCip who approved his first loan of P500,000 in 1950.
What about your first loan?
I don't usually like to get loans. In fact, the reason why we did well
and completed our first mall project, SM North Edsa, even after the 1983
economic crisis and after the Ninoy Aquino assassination, was because we
had very little loans then. I got my first credit line in 1949, it was
from China Bank and they lent me P1 million. My credit line was
approved by Mr. Yap Tian Siang in their head office before at Juan Luna
Street, corner Dasmarinas Street.
Did you ever imagine in 1949 that you would someday own more than 70
percent of China Bank, and that you would have Banco de Oro and soon,
possibly, Equitable PCIBank?
No, I never imagined then that I would own banks. You know, despite our
many shareholdings in China Bank, the Dee family of the original founder
has managed the institution so professionally and profitably, we never
attempted to change the incumbent chairman Gilbert Dee or president
Peter Dee. We are not that greedy, it's not good. I don't believe in
wanting both power and financial gain. Even those executives who have
been with China Bank for many years, they are still there. If a
venerable institution like China Bank is doing so well, why make
changes?
Is it true you already own 11 percent of San Miguel Corporation?
I have invested a lot in that well-managed company, but I do not want to
mention figures.
What are the business principles or strategies that made you successful?
I would not classify this as a secret to success, but one of my lifelong
practices is to pay my obligations on time, especially my suppliers.
Even in my early years as retailer, I didn't delay my payments to
suppliers, because I tell my kids that we have to be considerate to
suppliers and think of their own "hinyong" or how they have to protect
their sense of trustworthiness with others. If it's time to pay others
on Monday, we would already deposit the money in their bank accounts on
Friday, so they need not even come to our office to collect.
Your SM Cinemas do not allow R-18 or For Adults Only movies, including
The Da Vinci Code. Are you a Catholic or is it just your wife?
I am Catholic, but yes, it's my wife Felicidad Tan Sy who is the most
devout among us in the family. She devotes almost all her time and
money to the Catholic Church.
Your SM Group leases out or has retail businesses in millions of square
meters of prime commercial space. When you came to the Philippines as a
12-year-old boy, how big was the sari-sari store of your father and what
was its name?
It was a small "ha-ya-tiam", it had no name. It was located on Echague
St., which is now Carlos Palanca Sr. St. in Quiapo, Manila . It was
only about 30 square meters in floor area.
Why did you cry when you first saw your father in his store?
I cried because I saw how hard the life of my father was as a small
shopkeeper. He worked from early morning to late at night every day.
He would go to "chay-chi-khaw" area or Divisoria to buy goods, carrying
them himself on his back in order to resell in the store. I learned the
importance of honest hard work, frugality, and discipline from his
example.
Where did you and your father sleep at night, on the second floor or at
the back of the store?
Our sari-sari store was so small it had no back or second floor, we just
slept on the counter late at night after the store was closed.
When you were a kid and you saw your father struggling with his
sari-sari store, did that motivate you to aspire to become Southeast
Asia 's Shopping Mall King ?
As a kid, I had the will to strive for excellence and to overcome the
hard environment, but I never imagined attaining big success. Whatever
I have achieved did not happen overnight; ever since my teen years I
have devoted many, many years of my life to non-stop studying, diligent
work, and dreaming of a better future.
--Shared by Ariel Reinoso Almendral
Henry Sy believes in Philippines
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