Mirror, mirror on the wall, who’s the richest of them all?
If you’re interested to know who the wealthiest people are in the Philippines, you need not ask the magic mirror but instead refer to Forbes Magazine’s list of The Philippines’ 40 Richest released this August 2009.
Who are the richest Filipinos? Read below.
SM mall mogul Henry Sy is still the richest man in the Philippines for two consecutive years now. In the 2008 Richest Filipinos list, he topped the list followed by Lucio Tan, Jaime Zobel de Ayala, and Andrew Tan. There is no change in the Top 4 this year.
There are three new Filipinos added to the list. Robert Coyiuto Jr. (#18) is the president of Oriental Petroleum & Minerals. Imelda Marcos’ younger brother, Benjamin Romualdez (#30) has stakes in Banco de Oro and Benguet Mining Corporation. The third, Marian Rosario Fong (#40), is a former partner of Sy’s supermarkets and has a 1% stake in SM Investments.
Last year’s #39, Manuel Pangilinan of PLDT and Metro Pacific, is out of the list this year.
The complete 40 Richest Filipinos list below.
Top 10 Richest People in the Philippines – 2009
1. Henry Sy
Networth: $3.8 billion
Age: 84
Marital Status: Married, 6 children
Stock price of his SM Investments has almost doubled since December low. Group, with interests in malls, retail, property, posted 14% increase in net income in first half of 2009. Daughter Teresita Sy-Coson runs its Banco de Oro Unibank, country’s largest bank by assets, which signed deal in May to acquire GE Capital’s Philippines banking arm in exchange for strategic investment from the U.S. company; deal expected to close this month. Sy, who got start selling shoes, shares fortune with wife and children.
2. Lucio Tan
Networth: $1.7 billion
Age: 75
Marital Status: Married, 6 children
His Philippine National Bank received regulatory approval to buy 38% of China’s Allied Commercial Bank in August. Former electrical engineer’s other holdings include Fortune Tobacco, Asia Brewery, Philippine Airlines and Hong Kong properties. Government case against Tan for allegedly holding assets for the late Ferdinand Marcos has dragged on for 22 years. Some of his fortune still sequestered as part of the long-running investigation.
3. Jaime Zobel de Ayala
Networth: $1.2 billion
Age: 75
Marital Status: Married, 7 children
Chairman emeritus of family’s Ayala Corp., one of the country’s largest conglomerates, which celebrated its 175th birthday this year. Eldest son, Jaime II, replaced his dad as chairman more than a decade ago; son Ferdinando is vice-chairman. Family’s shares now in his children’s hands.
4. Andrew Tan
Networth: $850 million
Age: 57
Marital Status: Married, 4 children
His holding company, Alliance Global Group, reported jump in first-quarter earnings thanks in part to strong food, beverage businesses (he owns the Philippines’ McDonald’s franchise) and improving real estate sales. Resort World Manila, his $1.35 billion casino joint venture with Malaysia’s Star Cruises, opened last month. Son of a factory worker made his first fortune in brandy, and later in property development through Megaworld.
5. John Gokongwei
Networth: $720 million
Age: 82
Marital Status: Married, 6 children
Shares of his conglomerate JG Summit — which has interests in airlines, telecoms, power, banking and real estate — are up more than 300% since last December’s low. Also owns Robinsons retail department store operations, with stores in 7 countries. Brother James Go chairs the group and son Lance is president.
6. Tony Tan CaktiongNetworth: $710 million
Age: 59
Marital Status: Married, 3 children
His fast-food company Jollibee Foods is expanding: it already has 1,800 locations, 9 brands in 11 countries, including popular burger joint Jollibee; plans to open another 200 this year in such countries as China, Vietnam and the U.S. Completed purchase of a congee restaurant chain in China last October. Got his start 34 years ago when he opened 2 ice cream parlors.
7. Eduardo Cojuangco Jr.
Networth: $660 million
Age: 74
Marital Status: Married, 4 children
Chief executive of Southeast Asia’s largest food and beverage conglomerate, San Miguel. Company has been buying up stakes in a power company, oil refiner and bank; has shown interest in buying Dole Food’s Asian assets. In July announced it is negotiating with potential investors to sell part of branded food, alcohol operations. Son Mark is a member of the Philippines’ House of Representatives.
8. Enrique Razon
Networth: $620 million
Age: 49
Marital Status: Married, 2 children
Was part of consortium, which also included China’s State Grid and Robert Coyiuto (No. 18), that paid $3.95 billion for National Grid Corp. of the Philippines. Runs port operator International Container Terminal Services, with operations in 10 countries; it posted one-third drop in net income for first half of year due to decline in global trade.
9. Manuel Villar
Networth: $530 million, Age: 59
Marital Status: Married, 3 children
Philippines Senate president, known as Manny, is a candidate in the 2010 presidential race. He is also the largest shareholder in property firms Vista Land & Lifescapes and Polar Property Holdings. Both sons are on board of Vista Land, whose stock hit 52-week high in August. Shrimp vendor’s son grew up in slum.
10. George Ty
Networth: $515 million Age: 76
Marital Status: Married, 5 children
His Metrobank, the country’s second-largest lender, saw profits rise in first quarter for first time in a year. Founded bank decades ago. His son Arthur replaced him as chairman 2006. Family, which includes Ty and his children, hold 40% of the bank.
Source: Forbes
http://www.pinoymoneytalk.com/2009-list-richest-philippines/
Subscribe to Biztalk and Jobs via Email
Become a fan Biztalk and Jobs in Facebook
Follow me on Twitter
Jul 10, 2010
Jul 9, 2010
Marcos' $658-M Swiss bank deposits gone, Bongbong says
MANILA (PNA) - No less than Ferdinand ‘Bongbong’ Marcos, son of the late former President Ferdinand Marcos, revealed on Thursday that the $658 million Swiss bank deposits, believed to be the ill-gotten wealth of the Marcoses, are gone.
Bongbong Marcos, now a senator, revealed this to the Senate media during the weekly Kapihan sa Senado forum.
When asked where is the money which is now held in escrow at the Philippine National Bank, the neophyte senator answered: “I don’t know why it is now gone.”
”What I’ve heard is that the money was used during the 2007 elections. You should look for it. Ask them where is the money because every time I asked them, they cannot answer me,” Marcos said.
Asked if he would initiate an investigation to find the money, Marcos said that the government has problems that should be given priority.
”The problem of the Marcoses is not priority,” he added.
The funds were frozen by the Swiss government after the late dictator Ferdinand Marcos was toppled in a bloodless popular revolt in 1986, and transferred to the escrow account in 1998. Marcos died in exile in Hawaii in September 1989.
The funds are believed to form part of a huge fortune allegedly ransacked by Marcos during his 20-year rule.
Aside from Sen. Marcos, his mother Imelda and sister Imee have been elected in the last May 10 elections, winning as mayor of Laoag City and governor of Ilocos Norte, respectively. (PNA)
Bongbong Marcos, now a senator, revealed this to the Senate media during the weekly Kapihan sa Senado forum.
When asked where is the money which is now held in escrow at the Philippine National Bank, the neophyte senator answered: “I don’t know why it is now gone.”
”What I’ve heard is that the money was used during the 2007 elections. You should look for it. Ask them where is the money because every time I asked them, they cannot answer me,” Marcos said.
Asked if he would initiate an investigation to find the money, Marcos said that the government has problems that should be given priority.
”The problem of the Marcoses is not priority,” he added.
The funds were frozen by the Swiss government after the late dictator Ferdinand Marcos was toppled in a bloodless popular revolt in 1986, and transferred to the escrow account in 1998. Marcos died in exile in Hawaii in September 1989.
The funds are believed to form part of a huge fortune allegedly ransacked by Marcos during his 20-year rule.
Aside from Sen. Marcos, his mother Imelda and sister Imee have been elected in the last May 10 elections, winning as mayor of Laoag City and governor of Ilocos Norte, respectively. (PNA)
Jul 8, 2010
REAL ESTATE AS A BUSINESS?
Joyce, the wife of the OFW whose husband remits to her $300 or PhP15,000 monthly wants to consider just buying real estate as an investment. She understood from our last talk that she should not invest more than PhP7,000 in real estate so that she can spread her risks.
Her cousin, Tina, is offering her a piece of land in her province as an investment. It is 1,000 sq.m. for only PhP400,000. Her cousin is even willing to accept installment payments if she just makes a 10% down payment of PhP40,000. Joyce has the money for the down payment because her husband just received a bonus.
Tina is willing to accept payment for the balance of PhP360,000 at the installment payments of PhP7,000 per month for 5 years or 60 months. This is actually equivalent to paying Tina an interest rate of only 6.24% p.a. for the PhP360,000 balance due. Tina told Joyce that this is a good deal because the property is well located and there are talks that prices will at least double in five years (this means that the value of the property will increase by 14.4% per year) because the area will be developed very soon. Tina can’t wait for the development because she is getting married and living abroad. The monthly installment is something that she wants to give to her parents as a monthly gift because her husband will be giving her the same amount to give to her parents anyway.
My comments are:
In terms of the money involved the deal does look okay if Joyce is able to:
Make sure that the PhP15,000 or at least PhP7,000 monthly remittance of her husband will really continue for 5 years and that she will have no other need for it except to pay for this property.
Investigate with the Registrar of Deeds that the value of property recently sold in the area to be really at least PhP400 per square meter.
Check out that the Transfer Certificate of Title (TCT) is clean and that it really corresponds to the property that was shown to you.
Visit the property to see that it does not have any squatters. Joyce will be paying less than the Php15,000 that she has available monthly so she has the budget to pay for real estate taxes and other expenses to maintain the land free of “talahib” and future possible squatters.
Ensure that the TCT can readily be transferred to Joyce after full payment considering that Tina will already be living abroad. Joyce should consult with a lawyer on this.
Joyce should try to understand if there is real basis in expecting the value to double in five years. She should verify from the local government whether or not there are approved infrastructure developments in the area and how long it will take. “Chismis” can never be reliable. She has to go there herself and check with the Registry or Deeds and the companies who will be developing the area.
However, even plans of big companies can change. Then, she has to make an educated guess if the future increase in value will give her returns that are at least higher than the average annual inflation rate of 7%.
If the property appreciates by only 7% annually, which is the average increase of property values, then the sales value of the property after five years will be PhP 561,000 or PhP527,000 after a 6% capital gains tax. This will mean that the effective return of this investment will only be 5.1%. This is lower than the average inflation rate of 7% and is therefore not that attractive as an investment
I need to remind Joyce that land, as an investment, is generally an illiquid investment. It is something she cannot sell very quickly if she needs cash. In this case, she can only sell the property after she has completed her installment payments and the TCT has been transferred to her. Again, this is an issue that ought to be discussed with Tina and the lawyer before the down payment is made.
In this case, she should be able to sell the land at PhP600 per square meter after five years if she wants to make a return equal to at least the inflation rate of 7%. She must remember that she will have to pay for the transfer of the TCT (about 2% of selling price) after she has completed the installment payments. Also she has capital gains tax of 6% when she sells the property.
If Joyce is able to find other uses for the real estate to give her income, she should include that income in the computation of the returns she has derived from the property. This would of course improve the return on that property investment.
Let us assume that there is a small building on the property that Joyce has been offered for the terms given above. Let’s say that Joyce has the option to rent out space in that building. In such a case, when she estimates her rental income, she should remember that she has to deduct the following from her rental income:
Cost of daily maintenance if there will be more than one tenant in the building as there will be common areas.
20% vacancy rate. This means that there will be no income for about 2.5 months per year.
Cost of major repairs of the building
Possible non-payment of rent by the tenants.
In addition to real estate tax, municipal permits and income taxes.
I also told Joyce, for her information that others also buy real estate to develop into buildings to rent, sell or into condominiums. However, these involve bigger capital and a lot more serious business management expertise.
Subscribe to Biztalk and Jobs via Email
Become a fan Biztalk and Jobs in Facebook
Follow me on Twitter
Her cousin, Tina, is offering her a piece of land in her province as an investment. It is 1,000 sq.m. for only PhP400,000. Her cousin is even willing to accept installment payments if she just makes a 10% down payment of PhP40,000. Joyce has the money for the down payment because her husband just received a bonus.
Tina is willing to accept payment for the balance of PhP360,000 at the installment payments of PhP7,000 per month for 5 years or 60 months. This is actually equivalent to paying Tina an interest rate of only 6.24% p.a. for the PhP360,000 balance due. Tina told Joyce that this is a good deal because the property is well located and there are talks that prices will at least double in five years (this means that the value of the property will increase by 14.4% per year) because the area will be developed very soon. Tina can’t wait for the development because she is getting married and living abroad. The monthly installment is something that she wants to give to her parents as a monthly gift because her husband will be giving her the same amount to give to her parents anyway.
My comments are:
In terms of the money involved the deal does look okay if Joyce is able to:
Make sure that the PhP15,000 or at least PhP7,000 monthly remittance of her husband will really continue for 5 years and that she will have no other need for it except to pay for this property.
Investigate with the Registrar of Deeds that the value of property recently sold in the area to be really at least PhP400 per square meter.
Check out that the Transfer Certificate of Title (TCT) is clean and that it really corresponds to the property that was shown to you.
Visit the property to see that it does not have any squatters. Joyce will be paying less than the Php15,000 that she has available monthly so she has the budget to pay for real estate taxes and other expenses to maintain the land free of “talahib” and future possible squatters.
Ensure that the TCT can readily be transferred to Joyce after full payment considering that Tina will already be living abroad. Joyce should consult with a lawyer on this.
Joyce should try to understand if there is real basis in expecting the value to double in five years. She should verify from the local government whether or not there are approved infrastructure developments in the area and how long it will take. “Chismis” can never be reliable. She has to go there herself and check with the Registry or Deeds and the companies who will be developing the area.
However, even plans of big companies can change. Then, she has to make an educated guess if the future increase in value will give her returns that are at least higher than the average annual inflation rate of 7%.
If the property appreciates by only 7% annually, which is the average increase of property values, then the sales value of the property after five years will be PhP 561,000 or PhP527,000 after a 6% capital gains tax. This will mean that the effective return of this investment will only be 5.1%. This is lower than the average inflation rate of 7% and is therefore not that attractive as an investment
I need to remind Joyce that land, as an investment, is generally an illiquid investment. It is something she cannot sell very quickly if she needs cash. In this case, she can only sell the property after she has completed her installment payments and the TCT has been transferred to her. Again, this is an issue that ought to be discussed with Tina and the lawyer before the down payment is made.
In this case, she should be able to sell the land at PhP600 per square meter after five years if she wants to make a return equal to at least the inflation rate of 7%. She must remember that she will have to pay for the transfer of the TCT (about 2% of selling price) after she has completed the installment payments. Also she has capital gains tax of 6% when she sells the property.
If Joyce is able to find other uses for the real estate to give her income, she should include that income in the computation of the returns she has derived from the property. This would of course improve the return on that property investment.
Let us assume that there is a small building on the property that Joyce has been offered for the terms given above. Let’s say that Joyce has the option to rent out space in that building. In such a case, when she estimates her rental income, she should remember that she has to deduct the following from her rental income:
Cost of daily maintenance if there will be more than one tenant in the building as there will be common areas.
20% vacancy rate. This means that there will be no income for about 2.5 months per year.
Cost of major repairs of the building
Possible non-payment of rent by the tenants.
In addition to real estate tax, municipal permits and income taxes.
I also told Joyce, for her information that others also buy real estate to develop into buildings to rent, sell or into condominiums. However, these involve bigger capital and a lot more serious business management expertise.
Subscribe to Biztalk and Jobs via Email
Become a fan Biztalk and Jobs in Facebook
Follow me on Twitter
Loan to grow a business- COLAYCO
I received a question some time back on a matter that applies even today.
Would it be wise to borrow to grow our catering business?
Ten years ago, my husband and I took over his mother's catering business. Although the business has been around for 50 years and has built a solid reputation for quality food and exceptional service, we soon realized it needed a lot of improvement. We had to spend most of our savings to build a new kitchen, get a new service vehicle, buy new equipment and utensils, design a new logo, etc. We also had to re-introduce the business to the market because most of its old customers were gone. In this kind of business, we always have to change outdated equipment and design to keep up with the changing trends and keep the competition at bay.
Most of our revenues go into these improvements. However, since we only rely on our sales from the bookings that we get, we realize that it will take several more years before we can take our business to a whole new level.
We have contemplated on taking out a business loan, at least P1M but kept postponing it because we were too afraid of the monthly amortization. But I think it's about time we did this while we are still young, have the energy and enthusiasm, and while we're still bursting with ideas on how to run this business effectively. I can't wait for another 10 years while we see our competition take off.
My reply:
Based on the information you gave, it seems that you are in a perfect position to make your business dreams come true. You both have the passion for your food and catering business, a main ingredient in any business. You have started building up your productive assets to support your catering business and you need a process to validate your plan to borrow to grow your business. Borrowing is leverage and properly used, the most powerful tool to build capital and grow a business. Since both of you are still of prime age, you can still be more aggressive as clearly, you can still recover from any mistakes you might make.
Your immediate need is to make your actual Financial Statements for your business, that is, Cash Flow, Profit and Loss Statement and Balance Sheet as of the end of the latest month to understand the real condition and the true net worth of your business. I strongly advise that you seek professional assistance to make these financial statements for you. Any prospective lender will require the information from you anyway before they even start evaluating your loan application.
After you have established your true financial condition, think out your business plan in detail: what market you will sell to, what product and/or services you will sell and your best estimates as to how much it will cost you to produce and deliver these products and services. The most important projection is your Cash Flow, which provides the true and total amount of cash (capital and debt) required to sustain the profitability of your business. You need to make your monthly projections for the next few years. These must be based on your most realistic set of assumptions pertaining to all aspects of the business requiring cash (cash out) or producing cash (cash in).
Make as many projections as you want using different assumptions for each item. These include all the cash that you receive and all the amounts you need to spend for. For each item, use different assumptions. On one sheet, you can have optimistic assumptions. On another sheet, you can use the pessimistic assumptions. Then, choose what assumption in each item is the most realistic and come out with a working financial plan, which will be a combination of all the scenarios you make. Some items can change monthly and some can be the same all throughout. You have to put some thought to each amount you use.
The negative amounts in your Net monthly Cash Flow represent the Equity and/or temporary funding (loan) needed by your business during those months. If you see the need for a loan based on your initial projections, your inflows and outflow projections will change with the benefit of the improved operations from your loan and the cash flows related to the loan. Go back and forth with all these changes until you arrive at what in your best judgment truly represents the most likely and conservative outcome. This will determine whether or not you can afford to take out a loan; how much; what payment terms and the interest rate you can absorb.
In taking out a loan, the most critical ingredient is your source of repayment and the cost or interest rate of the loan. Note that a loan is a definite and firm obligation for you to repay specific amounts at specific dates in the future. You must pay this obligation whether or not you achieve your business projections. To lower your borrowing rates, you may need to put up some collateral (most likely real estate). As a matter of fact, while the borrowing cost is important, what is more important is that you understand your true financial burden. As a final note, don’t rush into getting any loan until you have determined (from various cash flow projections) the amount of temporary borrowing you will need and the amount of amortization your business can comfortably service on a periodic basis (i.e., monthly quarterly, or even yearly).
You must make sure that under the worst conditions, you will have real and sufficient source for repayment.
Remember that your business financials should be separate from your personal financial statements. Your business should pay you and your husband a salary. If you are using your home and vehicles for your business, your business should pay you for the use of these assets. This will give you a true picture of what your business profitability really is.
Join our July Seminars:
July 15 Thursday – 9AM-12NN Investability: The Stock Market Fundamental
July 24 Saturday – 2-5PM Pisobilities: Managing Your Personal Finances
July 30 Friday – 6-9PM Investability: The Stock Market Technical Analysis
Call 6373731 o 6373741 or write info@colaycofoundation.com or check out www.colaycofoundation.com
Subscribe to Biztalk and Jobs via Email
Become a fan Biztalk and Jobs in Facebook
Follow me on Twitter
Would it be wise to borrow to grow our catering business?
Ten years ago, my husband and I took over his mother's catering business. Although the business has been around for 50 years and has built a solid reputation for quality food and exceptional service, we soon realized it needed a lot of improvement. We had to spend most of our savings to build a new kitchen, get a new service vehicle, buy new equipment and utensils, design a new logo, etc. We also had to re-introduce the business to the market because most of its old customers were gone. In this kind of business, we always have to change outdated equipment and design to keep up with the changing trends and keep the competition at bay.
Most of our revenues go into these improvements. However, since we only rely on our sales from the bookings that we get, we realize that it will take several more years before we can take our business to a whole new level.
We have contemplated on taking out a business loan, at least P1M but kept postponing it because we were too afraid of the monthly amortization. But I think it's about time we did this while we are still young, have the energy and enthusiasm, and while we're still bursting with ideas on how to run this business effectively. I can't wait for another 10 years while we see our competition take off.
My reply:
Based on the information you gave, it seems that you are in a perfect position to make your business dreams come true. You both have the passion for your food and catering business, a main ingredient in any business. You have started building up your productive assets to support your catering business and you need a process to validate your plan to borrow to grow your business. Borrowing is leverage and properly used, the most powerful tool to build capital and grow a business. Since both of you are still of prime age, you can still be more aggressive as clearly, you can still recover from any mistakes you might make.
Your immediate need is to make your actual Financial Statements for your business, that is, Cash Flow, Profit and Loss Statement and Balance Sheet as of the end of the latest month to understand the real condition and the true net worth of your business. I strongly advise that you seek professional assistance to make these financial statements for you. Any prospective lender will require the information from you anyway before they even start evaluating your loan application.
After you have established your true financial condition, think out your business plan in detail: what market you will sell to, what product and/or services you will sell and your best estimates as to how much it will cost you to produce and deliver these products and services. The most important projection is your Cash Flow, which provides the true and total amount of cash (capital and debt) required to sustain the profitability of your business. You need to make your monthly projections for the next few years. These must be based on your most realistic set of assumptions pertaining to all aspects of the business requiring cash (cash out) or producing cash (cash in).
Make as many projections as you want using different assumptions for each item. These include all the cash that you receive and all the amounts you need to spend for. For each item, use different assumptions. On one sheet, you can have optimistic assumptions. On another sheet, you can use the pessimistic assumptions. Then, choose what assumption in each item is the most realistic and come out with a working financial plan, which will be a combination of all the scenarios you make. Some items can change monthly and some can be the same all throughout. You have to put some thought to each amount you use.
The negative amounts in your Net monthly Cash Flow represent the Equity and/or temporary funding (loan) needed by your business during those months. If you see the need for a loan based on your initial projections, your inflows and outflow projections will change with the benefit of the improved operations from your loan and the cash flows related to the loan. Go back and forth with all these changes until you arrive at what in your best judgment truly represents the most likely and conservative outcome. This will determine whether or not you can afford to take out a loan; how much; what payment terms and the interest rate you can absorb.
In taking out a loan, the most critical ingredient is your source of repayment and the cost or interest rate of the loan. Note that a loan is a definite and firm obligation for you to repay specific amounts at specific dates in the future. You must pay this obligation whether or not you achieve your business projections. To lower your borrowing rates, you may need to put up some collateral (most likely real estate). As a matter of fact, while the borrowing cost is important, what is more important is that you understand your true financial burden. As a final note, don’t rush into getting any loan until you have determined (from various cash flow projections) the amount of temporary borrowing you will need and the amount of amortization your business can comfortably service on a periodic basis (i.e., monthly quarterly, or even yearly).
You must make sure that under the worst conditions, you will have real and sufficient source for repayment.
Remember that your business financials should be separate from your personal financial statements. Your business should pay you and your husband a salary. If you are using your home and vehicles for your business, your business should pay you for the use of these assets. This will give you a true picture of what your business profitability really is.
Join our July Seminars:
July 15 Thursday – 9AM-12NN Investability: The Stock Market Fundamental
July 24 Saturday – 2-5PM Pisobilities: Managing Your Personal Finances
July 30 Friday – 6-9PM Investability: The Stock Market Technical Analysis
Call 6373731 o 6373741 or write info@colaycofoundation.com or check out www.colaycofoundation.com
Subscribe to Biztalk and Jobs via Email
Become a fan Biztalk and Jobs in Facebook
Follow me on Twitter
Subscribe to:
Posts (Atom)