This Person Inspire me to Start a Business in the Philippines

One of the riches person in the Philippines, not from a Filipino decent but an immigrant from China. Read the words of this person and learn from him.

This was an interview between DAILY STAR and MR. HENRY SY.

“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.

PHILIPPINE STAR: 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 ?

HENRY SY: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.

PHILIPPINE STAR: Why did you build an Olympic-size ice-skating rink  in this mall?

HENRY SY: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.

PHILIPPINE STAR: When you were a kid, what was your original  ambition?

HENRY SY: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.

PHILIPPINE STAR: 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?

HENRY SY: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 t o 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.

PHILIPPINE STAR: What else do you wish to achieve after the SM Mall of  Asia? What other big projects can we expect from you?

HENRY SY: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.

PHILIPPINE STAR: Why do you think the Philippines is ideal for  tourism?

HENRY SY: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.
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There are many more advantages. I could spend all day and all night  talking to you about the tourism potentials of this country.

PHILIPPINE STAR: What are  your suggestions on how to build up Philippine tourism?

HENRY SY: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. Â

PHILIPPINE STAR: What do you think should be the ideal number  of tourists coming to the Philippines annually? Â

HENRY SY: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. Â

PHILIPPINE STAR: What are your plans in China?

HENRY SY: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.

PHILIPPINE STAR: Why is it that your children did not grow up spoiled, and  seem to have imbibed your work ethic and business acumen? Â

How did you train them?

HENRY SY: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 .Â
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PHILIPPINE STAR: 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?

HENRY SY: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.

PHILIPPINE STAR: A billionaire asked me recently who is  richer, you or Lucio Tan?

HENRY SY: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.

PHILIPPINE STAR: What about your first loan?

HENRY SY: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.

PHILIPPINE STAR: 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?

HENRY SY: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?

PHILIPPINE STAR: 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.

PHILIPPINE STAR: What are  the business principles or strategies that made you successful?

HENRY SY: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.

PHILIPPINE STAR: 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?

HENRY SY: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.

PHILIPPINE STAR: 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?Â
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HENRY SY: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.

PHILIPPINE STAR: Why did you cry when you first saw your father in his  store?

HENRY SY: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.

PHILIPPINE STAR: Where  did you and your father sleep at night, on the second floor or at the back of  the store?

HENRY SY: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.

PHILIPPINE STAR: 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 ?

HENRY SY: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.

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Like most of us Mr. Henry Sy didnt start big. He created his wealth from scratch up. If he can do it then we can do it too. I am not saying that we can be as rich as him but at least we can sustain and enjoy life in our own country rather than continuously working hard in the foreign land.