Why Henry Sy Believes the Philippines is NOT hopeless

↑ Grab this Headline Animator

Why Henry Sy Believes the Philippines is NOT hopeless

good read...

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 theconvenience
of the public. We want shopping at our malls to be a
unique and an enjoyable experience.Why did you build
an Olympic-size 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. Iwant 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, enterta inment, 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.

This is a typical character that propels China to
become a world power in the next decade or sooner.
Like John Gokongwei, whose Ateneo speech I saved in my
archive, our "Taipans" are actually the engines that
drive our economy.They are achievers having, among
many others, these traits in common: hard work,
humility, and unwavering drive for excellence.

Despite their Chinese origins, they have strong faith
in the country and its people; an irony when our very
own are cynical.

Lately, however, it is heartening to note some of us
are involved in such laudable projects as the NSV,
Gawad Kalinga, scholarships, etc. Or, town projects
that affect the country as a whole. They are the
things that matter more.

Can there be better gauge of our worth as alumni than
the legacy we leave to our homeland?

NTP
=========

↑ Grab this Headline Animator