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How Important Are Small Businesses to Local Economies?

by J. Mariah Brown

Small businesses of all types can help strengthen local economies.

While small businesses may not generate as much money as large corporations, they are a critical
component of and major contributor to the strength of local economies. Small businesses present new
employment opportunities and serve as the building blocks of the United States' largest corporations.

Contributions

A small business is defined as a business (corporation, limited liability company or proprietorship) with
500 employees or less. According to the U.S. Small Business Administration (SBA), small businesses
represent 99.7 percent of all employer firms. Since 1995, small businesses have generated 64 percent of
new jobs, and paid 44 percent of the total United States private payroll, according to the SBA.

Economic Growth

Small businesses contribute to local economies by bringing growth and innovation to the community in
which the business is established. Small businesses also help stimulate economic growth by providing
employment opportunities to people who may not be employable by larger corporations. Small
businesses tend to attract talent who invent new products or implement new solutions for existing ideas.
Larger businesses also often benefit from small businesses within the same local community, as many
large corporations depend on small businesses for the completion of various business functions through
outsourcing.

Adaptability to Changing Climates

Many small businesses also possess the ability to respond and adapt quickly to changing economic
climates. This is due to the fact that small businesses are often very customer-oriented. Many local
customers will remain loyal to their favorite small businesses in the midst of an economic crisis. This
loyalty means that small businesses are often able to stay afloat during tough times, which can further
strengthen local economies. Small businesses also accumulate less revenue than larger corporations,
meaning they may have less to lose in times of economic crisis.

Schools and Local Government Offices

When consumers patronize local small businesses, they are essentially giving money back to their local
community. A thriving local business will generate high levels of revenue, which means that the business
will pay higher taxes, including local taxes. This money is then used for local police and fire departments
as well as schools.

Future Growth

Small businesses do not always stay small. Large corporations, such as Nike and Ben and Jerry’s, started
off as small businesses that grew to become major players in the national and international marketplace.
Many computer-industry leaders began as “tinkerers,” working on hand-assembled machines out of their
garages. Microsoft is a prime example of how a small business idea can change the world. Small
businesses that grow into large businesses often remain in the community in which the business was
first established. Having a large corporation headquartered in a community can further help provide
employment and stimulate the local economy.

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References (2)

Resources (1)

About the Author

J. Mariah Brown is the owner and editor-in-chief of Writings by Design, a comprehensive business
writing service company. She is a formally trained, seasoned journalist, and has worked in a variety of
fields, which has equipped her with the experience needed to write and edit for an eclectic audience
base on virtually any topic.

Photo Credits

store image by andrej pol from Fotolia.com

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More Articles

[Different Types] | A List of Different Types of Small Businesses

[Different Types] | A List of Different Types of Small Businesses

[Small Businesses] | The Economy's Effects on Small Businesses

[Small Businesses] | The Economy's Effects on Small Businesses

[Small-Business Owners] | Characteristics of Small-Business Owners

[Small-Business Owners] | Characteristics of Small-Business Owners

[Disadvantages] | The Disadvantages of Small-Scaled Businesses

[Disadvantages] | The Disadvantages of Small-Scaled Businesses

Also Viewed
[Small-Scale Enterprise] | Definition of Small-Scale Enterprise

[Small Local Businesses] | The Advantages of Small Local Businesses

[Characteristics] | Characteristics of a Small-Scale Business

[Small Business Management] | Features of Small Business Management

[Entrepreneurs] | What Do Entrepreneurs Contribute to Society?

[Small Businesses Generate] | How Much Tax Revenue Do Small Businesses Generate?

[Business Objectives] | 10 Most Important Business Objectives

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2017 Index of Economic Freedom

Find Your Country

COUNTRY RANKINGS
GRAPH THE DATA

INTERACTIVE HEAT MAP

EXPLORE THE DATA

DOWNLOADS

ABOUT THE INDEX

Philippines

Previous: #57 Slovakia

Next: #59 Saint Vincent and the Grenadines

overall score65.6world rank58

RULE OF LAW

Property Rights49.2

Government Integrity38.7

Judicial Effectiveness37.1

GOVERNMENT SIZE

Government Spending89.4

Tax Burden78.9

Fiscal Health97.2
REGULATORY EFFICIENCY

Business Freedom62.6

Labor Freedom57.2

Monetary Freedom80.6

OPEN MARKETS

Trade Freedom76.4

Investment Freedom60.0

Financial Freedom60.0

Embed This Data

Create a Comparison Chart

See how Philippines compares to another country using any of the measures in the Index.

Philippines

vs

COMPARE

Download PDF
QUICK FACTS

Population:

101.4 million

GDP (PPP):

$741.0 billion

5.8% growth

5.9% 5-year compound annual growth

$7,254 per capita

Unemployment:

6.7%

Inflation (CPI):

1.4%

FDI Inflow:

$5.2 billion

Embed This Data

Despite the challenging global economic environment, the Philippines has achieved notable economic
expansion, driven by the economy’s strong export performance and inflows of remittances that have
bolstered private consumption. The absence of entrepreneurial dynamism, however, still makes long-
term economic development a challenging task.

The government is pursuing a series of legislative reforms to enhance the overall entrepreneurial
environment and develop the stronger private sector that is needed to generate broader-based job
growth. Progress has been mixed, although some fiscal reforms have been accomplished. Deeper
institutional reforms are required in interrelated areas: business freedom, investment freedom, and the
rule of law. The judicial system remains weak and vulnerable to political influence.

BACKGROUND
The Philippines’ diverse population, speaking more than 80 languages and dialects, is spread over 7,000
islands in the Western Pacific. During the six-year term of President Benigno Aquino III (2010–2016), the
Philippines became one of the region’s best-performing economies. Now the question is whether his
successor, longtime mayor of Davao City Rodrigo Duterte, will maintain and expand his predecessor’s
successful policies. While agriculture is still a significant part of the economy, industrial production in
areas like electronics, apparel, and shipbuilding has been growing rapidly. Remittances from overseas
workers are equivalent to nearly 10 percent of GDP.

RULE OF LAWVIEW METHODOLOGY

Property Rights 49.2 Create a Graph using this measurement

Government Integrity 38.7 Create a Graph using this measurement

Judicial Effectiveness 37.1 Create a Graph using this measurement

Implementation of laws protecting property rights is weak. Judicial independence is strong, but the rule
of law is generally ineffectual. Courts are hampered by inefficiency, low pay, intimidation, and complex
procedures. Corruption and cronyism are pervasive. A few dozen leading families hold a disproportionate
share of land, corporate wealth, and political power. A culture of impunity is reinforced by the strong-
arm tactics of the new president.

GOVERNMENT SIZEVIEW METHODOLOGY

Government Spending 89.4 Create a Graph using this measurement

Tax Burden 78.9 Create a Graph using this measurement

Fiscal Health 97.2 Create a Graph using this measurement

The top individual income tax rate is 32 percent, and the top corporate tax rate is 30 percent. Other taxes
include a value-added tax and an environmental tax. The overall tax burden equals 13.6 percent of total
domestic income. Government spending has amounted to 18.8 percent of total output (GDP) over the
past three years, and budget surpluses have averaged 0.4 percent of GDP. Public debt is equivalent to
37.1 percent of GDP.

REGULATORY EFFICIENCYVIEW METHODOLOGY

Business Freedom 62.6 Create a Graph using this measurement

Labor Freedom 57.2 Create a Graph using this measurement

Monetary Freedom 80.6 Create a Graph using this measurement

Gradual improvement of the business regulatory environment includes reduction of the time and cost
involved in fulfilling licensing requirements. The labor market remains structurally rigid, but existing
regulations are not particularly burdensome. In 2016, the government used its authority to grant special
agriculture subsidies in response to El Niño drought conditions. There are price controls on
pharmaceuticals and some food and household fuel items.

OPEN MARKETSVIEW METHODOLOGY

Trade Freedom 76.4 Create a Graph using this measurement

Investment Freedom 60.0 Create a Graph using this measurement

Financial Freedom 60.0 Create a Graph using this measurement

Trade is important to the Philippines’ economy; the value of exports and imports taken together equals
61 percent of GDP. The average applied tariff rate is 4.3 percent. Many agricultural imports face
additional barriers. Investment in several economic sectors is restricted. The financial sector remains
relatively stable and sound. In 2016, the central bank announced that it would end a 17-year moratorium
on the granting of new banking licenses.

View Chart of Scores over Time

Regional Ranking

rank country overall change

Singapore

88.6 0.8

New Zealand

83.7 2.1

Australia

81 0.7

Taiwan

76.5 1.8

South Korea

74.3 2.6

Malaysia

73.8 2.3

Macau

70.7 0.6

Brunei Darussalam
69.8 2.5

10

Japan

69.6 -3.5

11

Kazakhstan

69 5.4

12

Vanuatu

67.4 6.6

13

Thailand

66.2 2.3

14

Philippines

65.6 2.5

15

Azerbaijan

63.6 3.4

16

Fiji

63.4 4.6

17

Tonga

63 3.4
18

Indonesia

61.9 2.5

19

Kyrgyz Republic

61.1 1.5

20

Cambodia

59.5 1.6

21

Bhutan

58.4 -1.1

22

Samoa

58.4 -5.1

23

Tajikistan

58.2 6.9

24

China

57.4 5.4

25

Sri Lanka

57.4 -2.5

26
Nepal

55.1 4.2

SEE ENTIRE REGION LIST ›

VIEW ALL COUNTRIES ›

© 2017 by The Heritage Foundation. All Rights Reserved.

Home | Country Rankings | Graph The Data | Heat Map

Explore the Data | Downloads | FAQs| About The Index

......

Indiana Small Business Development Center

The Role of Small Business in Economic Development

financial analysis

Jul 8th, 2015

“Economic development.” Elected officials recognize these words as a hot button of popular and
sometimes controversial issues. Wikipedia defines economic development as “The sustained, concerted
actions of policy makers and communities that promote the standard of living and economic health of a
specific area.” Strategy for economic development revolves around the broad primary components of
human capital, infrastructure and environment. For example, adding infrastructure such as a road to an
undeveloped area helps to make it more prime for growth, but without business enterprises and people
to work and / or people to consume, the road remains empty and thus there may be no return on the
expensive investment. It is a chicken versus the egg conundrum. What can the community do to
generate economic activity that will ultimately benefit us all?

Prior to the Great Recession, many economic development strategies were based upon “company
attraction” logic – with the goal being to entice large corporations to locate in the community and bring
along with them jobs to employ existing and new members of the locale. Like any good competitive
adventure, it was (and still is) a very big win for a community to attract a large new business. The
professionals in economic development call this “smokestack chasing” and it is difficult for most
communities to win at, as there are very few candidates with many suitors. During the recession, many
people looked to form small businesses to create their own jobs to replace what they had lost via
corporate downsizing. Entrepreneurs have always been pioneering. Today, the trend is to attract citizens
who supply the workforce which is coveted by existing and new enterprises (which is called a “Quality of
Life” approach). A parallel economic development model is to appeal to the entrepreneurial / creative
class of entrepreneurs that will start new businesses.

Today, small business is playing a leading role in local economic development across the nation.
According to the SBA:

The 28 million small businesses in America account for 54% of all U.S. sales

Small businesses provide 55% of all jobs and 66% of all net new jobs since the 1970s

The 600,000 plus franchised small businesses in the U.S. account for 40% of all retail sales and provide
jobs for some 8 million people

Furthermore, the small business sector is growing rapidly. While corporate America has been
downsizing, the rate of small business “start-ups” has grown, and the rate for small business failures has
declined (source: https://www.sba.gov/content/small-business-trends-impact).

It is much easier to attract, start and grow small businesses as an economic development strategy than it
is to entice a “trophy company” to a community. Small businesses often lead a community’s economic
growth. Small businesses tend to be more flexible than and just as innovative as their larger
counterparts. Perhaps more importantly – they work in their businesses, live near their businesses,
provide jobs, add to the tax base, participate in community activities, support local charities and share
community concerns. Attracting, developing and supporting entrepreneurs is a desirable and important
component of economic development that is sometimes overlooked in the community. The ISBDC is
committed to providing entrepreneurs expert guidance and a comprehensive network of resources to
aid in their development, which results in community growth.

Home

Locations

Workshops & Events

Services
Let’s Work Together

Copyright © 2018 ISBDC | All Rights Reserved | Web Development by Kicks Digital Marketing

Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All
opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily
reflect the views of the SBA. SBDC programs are open to the public and all services are provided on a
nondiscriminatory basis without regard to race, color, religion, sex, age, disability, or national origin.
Accommodations are made for individuals with disabilities.

.........

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HOMEWORK HELP > SOCIAL SCIENCES

Why is business so important to a country's economy?

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EXPERT ANSWERS

POHNPEI397 eNotes educator| CERTIFIED EDUCATOR

Business is extremely important to a country’s economy because businesses provide both goods and
services and jobs. Businesses do these things much more efficiently than individuals could on their own.

Businesses are the means by which we get most of the goods and services that we, as consumers, want
and need. You will presumably be reading this answer on a computer that was produced by a business.
You are buying internet access from a business. Almost everything that you use in your everyday life was
produced by a business and sold by yet another business. Without these businesses, it would be very
hard for us to get the things we need. Imagine, for example, how hard it would be for one person to
build and sell their own computers from scratch. This is a major reason why businesses are important
for a country’s economy.

Businesses are also the means by which many people get their jobs. Businesses create job opportunities
because they need people to produce and sell their goods and services to consumers. Without
businesses, each individual would have to create his or her own way of making a living. This would be
very difficult. Thus, businesses are important because they provide goods, services, and jobs. Without
these things, nations’ economies would be much smaller and weaker than they are.

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Skip to main content.

Small Business» Running a Business» Local Businesses»

What Are the Benefits of Businesses for the Local Economy?

by Alexis Writing

The benefits of businesses for the local economy are varied and numerous.

Local businesses have been a staple of economies all around the world ever since people first began
trading for goods and services. With the increase of large corporations and chain stores, many local
businesses have closed down or sold their assets and ceased operations. This is a problem on a number
of levels, but economically, local businesses provide many advantages to the economy where they
operate. Because of their advantages, it is important to patronize local businesses whenever possible to
help preserve the local economy in your area.

Support Staff

One major advantage of local businesses to the local economy is that they typically employ a wide
variety of supporting services that must also be obtained locally. For example, if a local business needs to
add to its facilities, it will hire a local contractor. Local businesses might also require the services of a tax
preparer, cleaning service or other local businesses, which increases the amount of work for everyone in
the local economy.

Locally Made Goods

Small businesses also typically offer more locally produced goods than large chain stores do. If you have
a product that you want to sell, like produce, you may find a local farmers' market that will allow you to
sell it. A chain store might purchase all of its strawberries from California or Florida, while you can sell
yours right near your home. Because of this, individuals in the local economy are able to sell their goods
and services at a local business, which benefits everyone in that area.
Keeping Money in the Area

Another advantage of local businesses is that more of the money spent at a local business stays in the
local area. A study done in 2003 in Austin, Texas, by the American Independence Business Alliance found
that out of every $100 spent at a nationwide chain store, only about $13 stayed in the local economy.
However, out of every $100 spent at a locally owned and operated business, about $45 stayed in the
local economy. This provides a huge boost to other local businesses, workers and families in the local
area.

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References (1)

About the Author

Alexis Writing has many years of freelance writing experience. She has written for a variety of online
destinations, including Peternity.com. She holds a Bachelor of Arts in communication from the University
of Rochester.

Photo Credits
economy avenue, concept photo image by Albo from Fotolia.com

Suggest an Article Correction

More Articles

[Business Objectives] | 10 Most Important Business Objectives

[Business Objectives] | 10 Most Important Business Objectives

[Small Businesses] | The Economy's Effects on Small Businesses

[Small Businesses] | The Economy's Effects on Small Businesses

[Small Businesses] | Advantages & Disadvantages of Advertising for Small Businesses

[Small Businesses] | Advantages & Disadvantages of Advertising for Small Businesses

[Small Scale Business] | List and Explain the Characteristics of a Small Scale Business

[Small Scale Business] | List and Explain the Characteristics of a Small Scale Business

Also Viewed

[Large Companies] | Advantages Small Companies Have Over Large Companies

[Disadvantages] | The Disadvantages of Small-Scaled Businesses

[Ethical Impact] | How to Evaluate the Social & Ethical Impact of Business on Society As a Whole

[Entrepreneurs] | What Do Entrepreneurs Contribute to Society?

[Business Plan] | What Functions Can Negatively or Positively Affect a Business Plan?

[Government Partnership] | The Advantages & Disadvantages of a Business & Government Partnership

[Different Types] | A List of Different Types of Small Businesses

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DJIA

-0.89%

U.S. 10 Yr

2.717%

Euro

0.26%

The Wall Street Journal

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Alliance Global Group Inc.

AGI (Philippines: Manila)

search

3:28 PM PHST 01/30/18

15.30 PHP -0.20 -1.29%

Volume

10,604,400

65 Day Avg Vol

5,668,358

1 Day Range

15.04 - 15.58

52 Week Range

12.20 - 17.30

(03/15/17 - 09/22/17)

1D

5D

1M

3M

YTD

1Y

3Y

$
%

Jan 24Jan 25Jan 26Jan 29Jan 30₱15.0₱15.5₱16.0₱16.5

COMPANY INFO

7/F, 1880 Eastwood Avenue

Quezon City MM 1110

Philippines

Email Website Map

Map Data

Terms of Use

DESCRIPTION

Alliance Global Group, Inc. is an investment holding company, which engages in the food and beverage,
real estate, and quick service restaurant businesses. It operates through the following segments:
Megaworld, Travellers, GADC, and Emperador. The Megaworld segment consists of development of real
estate, integrated resorts, leasing of properties, and hotel operations. The Travellers segment relates to
tourism-oriented business that integrates entertainment, hospitality, and leisure. The GADC segment
refers to operation of McDonald's restaurants in the Philippines. The Emperador segment engages in the
manufacture and distribution of distilled spirits including the production of glass containers. The
company was founded by Andrew L. Tan on October 12, 1993 and is headquartered in Quezon City,
Philippines.

EXPAND

KEY PEOPLE

Board of Directors

Name/Title Current Board Membership

Andrew Lim Tan, 66

Chairman & Chief Executive Officer

Megaworld Central Properties, Inc., Alliance Global Group Cayman Islands, Inc., Andersons Global, Inc.,
Travellers International Hotel Group, Inc., Townsquare Development, Inc., Golden Arches Development
Corp., The Andreson Group, Inc., Suntrust Properties, Inc., Consolidated Distillers of the Far East, Inc.,
Eastwood Cyber One Corp., Emperador Distillers, Inc., Megaworld Cebu Properties, Inc., Gilmore
Property Marketing Associates, Inc., Megaworld Cayman Islands, Inc., Megaworld Foundation, Inc.,
Sonoma Premier Land, Inc., Raffles & Co., Inc., Sherman Oak Holdings, Inc., Asian Travellers Ltd., Golden
Arches Reality Corp., Mactan Oceanview Properties & Holdings, Inc., Emperador Brandy, Inc., Megaworld
Homes, Inc., Megaworld Globus Asia, Inc., Megaworld Newport Property Holdings, Inc., The Bar
Beverage, Inc., Yorkshire Holdings, Inc., Alliance Global Brands, Inc., Richmonde Hotel Group
International Ltd., Choice Gourmet Banquet, Inc., Venezia Universal Ltd., Emperador International Ltd.,
Emperador, Inc., Anglo Watsons Glass, Inc., New Town Land Partners, Inc., Megaworld Corp., Megaworld
Land, Inc., Alliance Global Group, Inc., Empire East Land Holdings, Inc., Adams Properties, Inc., Global-
Estate Resorts, Inc., Oceanfront Properties, Inc., Valle Verde Properties, Inc., Fairways & Bluewaters
Resort Golf & Country Club, Twin Lakes Corp.

Kingson Uy Siok Sian, 54

President, Chief Operating Officer & Director

Alliance Global Group, Inc., Emperador, Inc., Eastwood Locator's Assistance Center, Inc., Travellers
International Hotel Group, Inc., Citywalk Building Administration, Inc., Asia E-Commerce, Inc., Eastwood
Cyber One Corp., World Cafe, Inc., Techno Plaza One Building Administration, Inc., Paseo Center Building
Administration, Inc., Icite Building Administration, Inc., Forbes Town Commercial Center Administration,
Inc., Eastwood City Estates Association, Inc., Eastwood Corporate Plaza Building Administration, Inc., Asia
Finest Hotels & Resorts, Inc., Prestige Hotels & Resorts, Inc., Megaworld Resort Estates, Inc., Megaworld
Corp., Megaworld Cebu Properties, Inc., Adams Properties, Inc., Manila Bayshore Property Holdings, Inc.,
Alliance Global Group Cayman Islands, Inc., Luxury Global Hotels & Leisure, Inc.

Kevin Andrew L. Tan, 37

Director

Alliance Global Group, Inc., Alliance Global Brands, Inc., Consolidated Distillers of the Far East, Inc.,
Yorkshire Holdings, Inc., Emperador Distillers, Inc., Anglo Watsons Glass, Inc., The Bar Beverage, Inc.,
Emperador Brandy, Inc., New Town Land Partners, Inc., Global-Estate Resorts, Inc.

Kevin Andrew L. Tan, 37

Director
Alliance Global Group, Inc., Alliance Global Brands, Inc., Consolidated Distillers of the Far East, Inc.,
Yorkshire Holdings, Inc., Emperador Distillers, Inc., Anglo Watsons Glass, Inc., The Bar Beverage, Inc.,
Emperador Brandy, Inc., New Town Land Partners, Inc., Global-Estate Resorts, Inc.

Winston S. Co, 57

Director

The Bar Beverage, Inc., Emperador, Inc., Alliance Global Brands, Inc., Megaworld Cebu Properties, Inc.,
Mckester Pik-Nik International Ltd., Raffles & Co., Inc., Alliance Global Group, Inc., New Town Land
Partners, Inc., Anglo Watsons Glass, Inc., Emperador Distillers, Inc.

Sergio R. Ortiz-Luis, 73

Vice Chairman

Alliance Global Group, Inc.

Alejo L. Villanueva, 74

Independent Director

Empire East Land Holdings, Inc., First Capital Condominium Corp., Suntrust Home Developers, Inc.,
Alliance Global Group, Inc., Emperador, Inc., Public Relations Counsellors Foundation of the Philippines,
Ruru Courier Systems, Inc.

EXPAND

All Executives

Andrew Lim Tan

Chairman & Chief Executive Officer

Kingson Uy Siok Sian

President, Chief Operating Officer & Director

Dina D. R. Inting

First Vice President-Finance & Compliance Officer

Rolando D. Siatela

Assistant Secretary

Kevin Andrew L. Tan

Director
Katherine L. Tan

Treasurer & Director

Winston Sy Co

Director

Caroline L. Kabigting

Investor Relations Officer

Dominic V. Isberto

Secretary

Sergio R. Ortiz-Luis

Vice Chairman

Alejo L. Villanueva

Independent Director

ADVERTISEMENT

AVERAGE GROWTH RATES

Past Five Years

Ending 12/31/2016 (Fiscal Year)

Revenue

Net Income

+1.29%

Earnings Per Share

+1.01%

Capital Spending

+20.09%
Gross Margin

+44.74%

Cash Flow

-250.14%

INSIDER TRADING

Transaction Summary

Total Insider Purchases and Sales Reported to the SEC

Data not available.

Data not available.

OWNERSHIP

Mutual Funds that own AGI

Name Shares Held % Shares Out Change In Shares % of Assets As of Date

American Funds International Growth & Income Fund 229,600,000 2.24% +229,600,000 0.60%
09/30/17

American Funds Capital World Growth & Income Fund 170,987,140 1.67% 0 0.06%
09/30/17

American Funds New World Fund 167,000,000 1.63% 0 0.17% 09/30/17

American Funds EuroPacific Growth Fund 150,350,000 1.47% 0 0.03% 09/30/17

Vanguard International Value Fund 77,156,400 0.75% +2,405,200 0.24% 06/30/17

Vanguard Emerging Markets Stock Index Fund 72,945,295 0.71% -317,200 0.03%
12/31/17

American Funds Global Balanced Fund 72,000,000 0.70% 0 0.18% 09/30/17

American Funds Small Cap World Fund 66,295,000 0.65% 0 0.06% 09/30/17

Vanguard Total International Stock Index Fund 52,557,742 0.51% 0 0.01% 12/31/17

Fidelity Diversified International Fund 44,456,756 0.43% -640,500 0.07% 10/31/17

EXPAND

Institutions that own AGI

Name Shares Held % Shares Out Change In Shares % of Assets As of Date

Capital Research & Management Co. (Global Investors) 474,144,040 4.63% -25,823,100 0.03%
09/30/17

Capital Research & Management Co. (World Investors) 455,615,000 4.45% +238,970,000 0.02%
09/30/17

The Vanguard Group, Inc. 143,013,997 1.40% -441,200 0.00% 12/31/17

FIL Investment Advisors (UK) Ltd. 93,461,851 0.91% -29,470,303 0.03% 11/30/17

Lazard Asset Management LLC 79,290,300 0.78% +2,016,100 0.02% 12/31/17

Dimensional Fund Advisors LP 76,020,163 0.74% +1,014,920 0.01% 11/30/17

BlackRock Fund Advisors 65,107,819 0.64% -79,000 0.00% 01/04/18

Fidelity Management & Research Co. 50,119,609 0.49% -272,300 0.00% 11/30/17

Teachers Advisors LLC 38,922,100 0.38% 0 0.01% 12/31/17

FIL Investment Management (Hong Kong) Ltd. 31,316,700 0.31% 0 0.04% 10/31/17

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Edward DostillioEdward Dostillio

Alliance Global Group Inc. - The Philippines' Hidden Gem

Aug. 14, 2017 9:45 AM•ALGGY

Summary

Andrew Tan: The man behind ALGGY's success.

Mcdonald's growth in the Philippines is just beginning.

Emperador Inc.: A world leader in brandy sales.

Megaworld & Travelers International - hotels, casinos and real estate.

The Philippine economy is the fastest growing in all of Asia.

Andrew Tan may not be a household name here in the US, but he is a Chinese immigrant who has
become the 4th richest man in the Philippines and is the driving force behind Alliance Global Group Inc.
(OTCPK:ALGGY) (OTCPK:ALGGF). His story is a true rags to riches saga that is the embodiment of true
capitalism. He has turned an initial purchase of a small brandy distiller, known as Emperador, into a large
conglomerate that is continuing to expand globally.

A great slide presentation by Alliance Global Group, Inc. that covers the overall structure of the company
and highlights the direction the company is headed can be seen here.

According to Bloomberg "Alliance Global Group, Inc. is a holding company with interests in food and
beverage, real estate development, and fast food restaurant businesses. The Company distills brandy,
manufactures glass containers, distributes wines and snacks, develops planned mixed-use communities,
and either operates or sub-franchises hamburger restaurants." What they fail to mention is those
hamburger restaurants are McDonald's (NYSE:MCD) restaurants!!

Alliance owns a 49% stake in Golden Arches Development Corporation, which has the franchise rights for
McDonald's in the Philippines. This is one of Alliance's fastest growing segments and with only 500
McDonald's restaurants currently open in the entire country, there is lots of room for continued future
growth. The company is hoping to have 900+ restaurants open by 2020.

Alliance owns an 81% stake in Emperador Inc., which is listed in Wikipedia "as the world's best-selling
brand of brandy in terms of quantity of brandy sold, with annual sales of over 275 million liters in 2016."
Emperador was not distributed in the US market until just recently, so many people may not be familiar
with the brand, but starting late last year, it will become available in the USA which bodes well for future
sales growth

Alliance owns a 67% stake in Megaworld, which is the Philippines' leading real estate developer and No.
1 business process & outsourcing (BPO) office developer and landlord. They also own a 44% stake in
Traveller's International Hotel Group, which owns several hotels and casino operations in the Philippines
including Resorts World, Marriott, Hilton and Sheraton.

The IMF projects economic growth in the Philippines near 7% for 2017 and 2018, which is best among all
other Asian countries. While there has been some short-term negative headlines regarding the
Philippines and President Duterte, the policies implemented will make the country a cleaner and safer
place to live and visit in years to come. I have been living in Cebu off and on for the last 3 years and I see
positive things happening there already.

According to the Financial Times: As of August 4, 2017, "the consensus forecast among 6 polled
investment analysts covering Alliance Global Group, Inc. advises investors to purchase equity in the
company. This has been the consensus forecast since the sentiment of investment analysts improved on
Jan 09, 2017. The previous consensus forecast advised that Alliance Global Group, Inc. would outperform
the market. The median price target for the stock is $17 during the next 12 months which is a healthy
18% ROI."

Alliance also pays a 2% annual dividend which makes it suitable for both growth and income portfolios. It
is a great emerging market play that is both a value investment and a growth opportunity.
The stock is trading well off its all-time highs of $33 reached in April of 2014, so valuations are cheap.
Currently, ALGGY is trading at a Price/Earnings ratio of just under 9.5 and a Price/Sales ratio of right
around 1.0. The stock is actually trading at a slight discount to its underlying book value and keep in
mind that Alliance has significant real estate holdings that are being carried on the books at cost and not
market value. Real Estate appreciation rates in the Philippines are running around 10% per year.

In the past 3 years, the company's growth rates have dropped considerably from their 10-year average
rates as seen by the chart below:

Growth Rate per share 1 year 3 year 5 year 10 year

Revenue % 0.9 6.5 20.4 31.6

Operating Income % 6.6 .3 9.7 38.5

Earnings % 5.3 -5.2 4.2 21.0

Stock Total Return % -12.2 -16.6 6.3 12.5

This is one of the reasons the stock is trading well off of its peak valuations.

One of the key reasons for the dramatic slowdown to both earnings and revenue growth was a dramatic
increase in Capital Expenditures as can be seen in the chart below.

Capital Ex Spending (Billion pesos) 2010-2013 2014-2017 % Increase

Alliance Global Group Inc 131 Billion 312 Billion 138 %

A large majority of these new expenditures were for large longer-term real estate development projects
that would take several years to complete and would not be producing a lot of new revenues in the short
term but will be contributing significant revenues in the years to come.

Even though growth has slowed considerably these past 3 years as the company invests in future growth,
the current businesses are still operating with very healthy margins. Gross profit margins for Alliance
Global are running just over 44% with operating margins just under 25% and net margins just over 16%,
with return on equity of just over 10%.
There are not many global conglomerates that offer investments in alcohol, fast food, gambling, and real
estate all in one stock and certainly not at the discounted valuations that Alliance Global Group, Inc.
currently trades at, which is reason enough to own the stock. But I want to end this piece by explaining
how the ADR of Alliance Global Group, Inc. work and how investors in the future may not only get
appreciation related to the strength of the company, but also from a weakening US$.

Alliance Global Group, Inc. is traded in the Philippines under the trading symbol AGI and is currently
trading around 13.5 pesos per share. The ADR of Alliance Global Group, Inc. trade here in the U.S. under
the symbol ALGGY and each one share of the ALGGY ADR entitles the owner to 50 shares of AGI's stock.
So you get a 50 to one leverage, but currently, the Philippine peso is trading at 50 pesos to the $, which is
why the stock is also trading at right around $13.5 per share.

Since Alliance Global Group is a holding company of several publicly traded companies in the Philippines,
another way to analyze this stock is to compare the NAV (net asset value) of the publicly traded
companies that AGI holds and compare it to the stock price of AGI to see if it trades at a premium to its
NAV or a discount.

An excellent blog article that can be found on Seeking Alpha covers this topic and highlights the fact that
ALGGY usually trades at a discount to NAV as can be seen in the chart below, which was taken from this
article.

My personal expectations for ALGGY is that not only is the underlying stock of AGI going to increase in
value over the next 5 years, which will cause your investment in ALGGY to rise, but I also anticipate an
eventual weakening of the $ vs. the peso, which will add to the appreciation of ALGGY.

By investing in the ADR of Alliance Global Group, you not only get a well-diversified global conglomerate,
but a hedge against a sudden drop in the US $, something many U.S. investors are using a non-income-
producing investment like gold to hedge with.
Disclosure: I am/we are long ALGGY.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it
(other than from Seeking Alpha). I have no business relationship with any company whose stock is
mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less
than a $100 million market cap. Please be aware of the risks associated with these stocks.

About this article:

Tagged: Investing Ideas,Long Ideas,Philippines

Includes: Alliance Global Group, Inc. ADR (ALGGY),ALGGF,HLT,MCD

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CONSUMER

The Rise of Dr. Andrew L. Tan: The Struggling Years

ARTICLEIMAGES

The Rise of Dr. Andrew L. Tan: The Struggling Years

By Prof. Enrique Soriano

Published: February 3, 2015 | No Comments

“About a week after arriving in the Philippines, I happened to wake up one day at 7 o’clock in the
morning. My father got angry and he scolded me. As a newcomer in the country, he said, I had to work
harder than the people here. “You cannot wake up at 7 o’clock. You must wake up at 5 o’clock.” I was 16
then and that incident opened my eyes to the importance of diligence and hard work, and I have taken
my father’s advice to heart since then.

Dr. Andrew L. Tan

With a net worth of US$5.1 Billion and ranked next to fellow industrialists, Henry Sy, Lucio Tan, Forbes
Asia Magazine described the first generation Dr. Tan as a “Property Plutocrat with a large stake in
Megaworld, a builder of apartment complexes doubling as small cities. He is big into Brandy, too. His
Emperador Distillers went public last year and is now worth P172.50 Billion.

Last May, Emperador acquired the 5th biggest scotch maker in the world, Whyte and MacKay for US
$720 Million outbidding global brands like LVMH. His fortune extends to 408 McDonald’s restaurants in
the Philippines and the gaming leader Resorts World Manila.”

Also last year, Tan’s holding company, Alliance Global Group became the country’s 10th most valuable
conglomerate with a market capitalization of P277.28 Billion, just a billion shy of power retailer, Meralco
and the youngest entrant to the prestigious list.

Clearly, Andrew has built, through “hardwork and brand building,” an impressive portfolio through the
Alliance Global Group that include Megaworld Corp., Travellers International Hotel Group Inc.,
Emperador Distillers Inc., Golden Arches Development Corp., Empire East Land Holdings Inc. and
Suntrust Properties Inc.

But these did not come easy for Tan, who started working for others as a marketing executive. In a one
on one interview, he emphatically remarked, “Business was tough when I started my first company.
When you don’t have much capital, it is paramount that you exercise your nose a lot, much like a dog
that never ceases to sniff out for food. You cannot afford to fail and lose vital resources. That is how you
develop an instinct for success,” Tan relates.

He revealed that two weeks after they launched the first Megaworld project in 1989, the bloodiest coup
threatened the Cory Aquino administration.

“Considering that Megaworld then was a start-up, the decision to pursue this project was one of the
toughest I made,” Tan notes.

“The Asian financial crisis in 1997 also tested me and Megaworld a lot. The crisis especially threatened
the real estate industry. Banks were very averse to lending. We were able to overcome this and came out
stronger by being innovative. Megaworld launched Eastwood City, our first integrated township project
with the live-work-play mantra, in the late 1990s,” he explains.

Today, Eastwood City is what Tan now considered as the “epitome of a successful development:
Eastwood City Cyberpark has been named as the No. 1 IT Park and counts more than 40,000 employees,
while our condo residents enjoy living here, and shoppers love visiting our new Eastwood Mall.” The
success of Eastwood City has spawned 15 other City Centers concepts all over the country.

So how did Tan climbed to the top? Hard Work and Determination!

The son of poor immigrants from Fujian province, Andrew was born in China. His family migrated to
Hong Kong when he was four years old. As a child, he and his family used to share a tenement
apartment with four other families, with only one bathroom and one concrete table for all the families’
cooking stoves. Tan recalls the apartment owner even leased out the corridor to another family.

At 16, he came to the Philippines to join his father who was then working in a transistor radio factory.
Tan recalls the difficult period, “I lived with my parents in a cramped 20 square meter apartment in Sta.
Cruz, Manila. I struggled throughout my college days because I had no money. To save on jeepney fare, I
walked every day from my apartment to the UE campus on C.M. Recto. “

For lunch, Tan often ate “bananacue” (fried bananas) that he bought from vendors along Gastambide
Street. During his first two years as a student, he supported himself by selling watches and tutoring
grade school students in math on a part-time basis. It was hard juggling a part-time job and going to
college, but Tan never complained. He learned that whether working or studying, doing it as best as he
could brought him a sense of satisfaction and fulfillment. It also helped him become a better person.

Most of Tan’s classmates were better off than him since their families owned small businesses such as a
grocery or hardware store. That started him to dream of doing his own business to give his family a
better life.

He quipped, “I would tell myself that if I had P200, 000 ($4,500)—a lot of money back then—I would use
it to open a grocery store!”

The young Andrew took up Bachelor of Science in Business Administration and eventually graduated
magna cum laude in 1974. Such a feat for a young dreamer armed only with the values of hard work,
tenacity and a burning desire to help his family have a better life!

Indeed, Dr. Andrew L. Tan has already gone far from his simple dream of owning a small grocery store to
becoming one of Asia’s wealthiest businessmen.

***

(Prof. Soriano worked with Dr. Tan for close to 8 years occupying senior management positions as Chair,
CEO and Director of various business units under the Alliance Global Group. He is now an ASEAN Family
Business Advisor and Chair of the Marketing Cluster of the ATENEO Graduate School of Business. Prof
Soriano is a National Agora Awardee and book author of Kite Runner, a book on Family Business
Governance and Succession. For comments, you may email the writer at sorianoasia@gmail.com)

Published in Consumer

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Behind many great success stories are tales of struggle and adversity

WILL SOON FLOURISH By Wilson Lee Flores (The Philippine Star) | Updated August 28, 2016 - 12:00am

4 704 googleplus0 3

Andrew Tan of Megaworld and Emperador , George S. K. Ty of Metrobank , Henry Sy Sr. of SM Group of
Companies, John Gokongwei Jr. of JG Summit Holdings, Lucio C. Tan of Lucio Tan Group of Companies,
Manny Villar of the Villar Group, Amancio Ortega of Zara

Whenever Forbes magazine, Bloomberg or others come out with their wealthiest lists, most people
generally lionize the success stories, focus on the fortunes and become fascinated by the perceived
glamorous lifestyles of the billionaires.

In my case, since I didn’t inherit any wealth but had to earn every centavo myself, I prefer studying those
“rags-to-riches” self-made men and women, their stories of overcoming often cruel odds and how they
achieved their dreams. I believe that behind many self-made fortunes are inspiring tales of struggles,
adversity, persons with strong character of Olympian proportions.

A poor boy who saw his mother turned away at a grocery store

At about age 13, a boy in a tiny village personally saw how his mother got rejected for credit at a grocery
shop. This acute and early realization that his family was poor was a strong motivation and driving force
for him, so he left school and started working in a clothing shop to help his family. His mother was a
housemaid and his father was a railway worker.

This boy eventually went into the clothing business and opened a retail shop, building up a fashion
empire with the global brand name Zara. Now this former poor boy from Spain named Amancio Ortega
is ranked the world’s second wealthiest person with a net worth of $67 billion. He has not changed his
humble lifestyle, his work ethic, or his dreams of doing well.

A poor boy who cried when he saw his father’s difficult life as a sari-sari store owner

At age 12, a boy arrived in Manila to join his father in his sari-sari store business. The Japanese military
invasion and occupation of the Philippines caused the loss of his father’s two stores — one was burned
and one was looted in the war chaos. His father was so dejected by this setback he decided to go back to
his hometown. The youth started a business with a business partner, but the partnership turned sour
and he had to make sacrifices to start a store on his own again. This youth, who was undaunted by
hardships, who had grand vision, perseverance, frugality and extraordinary work ethic, is ranked the
Philippines No. 1 wealthiest, Henry Sy, Sr. of SM Group and BDO, with huge investments and
philanthropic interests.

Several years ago, when Time magazine featured him on its cover and the journalist wrote that when the
12-year-old Sy first arrived in Manila, he cried upon seeing his father, I asked him why he cried. Henry Sy
explained to me that he saw how difficult the life of a sari-sari store owner was, so he cried.

Lifestyle Feature ( Article MRec ), pagematch: 1, sectionmatch:

The boy who lost his dad, their home and business

A boy was only 13 when his businessman father died; their family then lost their big house, their
chauffered cars and moviehouse businesses to the banks. Half his friends in school dropped him when
he could no longer treat them to free movies. More difficult than a “rags-to-riches” life is a “riches-to-
rags-to-riches” saga, because it is not easy to adjust from a comfortable and secure life to that of
adversity and struggles.

As a kid, the boy remembered their home even had a piano and his parents hired a Spanish mestiza
piano teacher who’d bribe him with apples for him to practice. All those were gone. He had to quit
schooling to help the family. He became a trader. This boy had bold vision, extraordinary work ethic,
discipline, frugality and strategic thinking. Eventually, John Gokongwei, Jr. built up one of Southeast
Asia’s top industrial conglomerates, giving away philanthropic donations to schools, and he is now
ranked the second wealthiest person in the Philippines.
A youth who endured “a lot of sufferings”

One of the country’s most accomplished business leaders and one of its most generous philanthropists
once told me that he endured “a lot of sufferings” in his youth. Perhaps this is one of the reasons he is
well known for his extraordinary personal discipline, hard work and determination? This business leader
is Metrobank, PS Bank, AXA Life, Toyota Philippines and Metrobank Foundation taipan George S.K. Ty.

A youth who dreamt of studying science abroad, but dropped out to work

A boy who came from a poor family told me that his childhood dream was to study abroad and to
become a scientist. He even researched the top schools in the west. He was a working student who
studied daily at night and on Sundays, yet he still had to drop out to work full-time and later to start his
small business. Today, the frugal, disciplined, persevering and workaholic Lucio Tan has become one of
Southeast Asia’s wealthiest taipans and owner of Asia’s first airline Philippine Airlines; he is also one of
the country’s most generous philanthropists.

Two rising tycoons who overcame the 1997 Asian financial crisis

This self-made entrepreneur was already on his way to becoming one of the Philippines’ top tycoons
when the 1997 Asian financial crisis hit and many businesses collapsed across the region. It was at this
time that his creditors, executives of American finance giant J.P. Morgan called me via conference call in
Tokyo and Makati to angrily complain about this entrepreneur’s not paying his company’s bonds.

Out of fairness, I called up this entrepreneur to get his side of the story. He told me his version of the
impasse with his creditors, admitting that his firms faced difficulties, but it was not true he was unwilling
to fulfill his obligations.

He revealed that a top blue-chip competitor in his industry almost bought his whole firm and they
already agreed on the sale price, but when this competitor wanted to take advantage of his difficult
situation and tried to squeeze him for a harder bargain, he balked. This hardworking and smart
entrepreneur eventually survived the crisis, bounced back and has become much bigger and richer than
before, he is realty billionaire Manny B. Villar.

This other self-made entrepreneur was already one of the rising stars of Philippine business when the
1997 Asian financial crisis hit, and there were rumors then spread by his detractors that his firm was in
dire straits. I heard stories that a group of prominent stockbrokers even reportedly pulled the carpet
under him in this time of crisis. During that regional Asian crisis, almost nobody was immune from
possible catastrophe, but this self-made entrepreneur is known as a hardworking finance and business
whiz; he not only overcame the worst crisis, he persevered and grew his businesses. Today, Megaworld,
Emperador and Alliance Global Group founder Andrew Tan has emerged as one of Southeast Asia’s top
billionaires.

***

Steve Goodier said: “Those who overcome great challenges will be changed, and often in unexpected
ways. For our struggles enter our lives as unwelcome guests, but they bring valuable gifts. And once the
pain subsides, the gifts remain. These gifts are life’s true treasures, bought at great price, but cannot be
acquired in any other way.”

Let us not fear difficulties or whine about life being unfair. In fact, I believe adversity and struggles are
what can make us better, wiser, protean, more resilient and stronger persons in the long run. Crisis can
toughen our character, cleanse our soul and make our dreams imperishable!

***

Thanks for your feedback! Email willsoonflourish@gmail.com or follow WilsonLeeFlores on Instagram,

Twitter, Facebook and http://willsoonflourish.blogspot.com/

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Success Story of Andrew Tan

Success Story of Andrew Tan

One of the most inspiring new “rags-to-riches” billionaires of Southeast Asia is Andrew Tan of Alliance
Global Group, Inc., the new multi-billion peso holding company for his three major businesses –
condominium-developer Megaworld, the world’s biggest brandy producer Emperador Distillers, Inc. and
49 percent shareholdings in the nationwide Philippine franchise of McDonald’s fastfood chain.

The latest 2007 issue of Forbes magazine lists Tan as the country’s fourth wealthiest billionaire after the
Zobel-Ayala clan, Henry Sy of the SM Group and Banco de Oro, and Lucio Tan of Philippine Airlines and
Philippine National Bank. Forbes estimated Tan’s personal net worth at $1.1 billion dollars.

It is difficult to believe that authentic “rags-to-riches” sagas built on honest hard work still happen in this
modern and complex world. The son of poor immigrants from Fujian province, south China and himself
born overseas, Andrew Tan grew up in downtown Manila dreaming of someday owning a store or small
business like many of his peers’ families. As a child in Hong Kong, he and his family used to share a
tenement apartment with four other families, with only one bathroom and one concrete table for all the
tenant families’ cooking stoves. Tan recalls the apartment owner even leased out the corridor to another
family.

The young Andrew studied accounting and graduated with honors at the University of the East, often
preferring to walk to school instead of riding public jeepneys in order to save money. Engineer Conrado
Acedillo, himself a self-made man in the air-conditioning business, recalls that he and the younger Tan
used to be employees of taipan Leonardo Ty of Union Hitachi, Ajinomoto and other businesses. He
remembers Andrew Tan as one of the most hardworking and conscientious employees of the late
Leonardo Ty.

Megaworld and Empire East as biggest condo developers

Both still in their fifties, fellow billionaire and realty developer, Senate president Manuel “Manny” Villar
Jr., acknowledges Andrew Tan as the undisputed No. 1 condominium developer in the Philippines,
surpassing even the old-rich landed clan of the Zobel-Ayalas.

Starting from a residential condominium in Greenhills, San Juan not so long ago, Megaworld and its sister
firm Empire East Holdings, Inc. have become trendsetters in large-scale office, residential and other real
estate development projects. Tan made a name for himself by redeveloping a former textile mill complex
in Libis, Quezon City into the commercial, office, shopping, entertainment and residential enclave known
as Eastwood City today.

After the success of Eastwood City, some of his many other urban renewal mega projects in Metro
Manila include the City Place complex in Binondo, Manila; the 25-hectare Newport City complex beside
the Villamor Golf Course; and the Manhattan Garden City complex at the Araneta Center, Cubao, Quezon
City.

Near the existing Makati financial district and next door to the Fort Bonifacio development of Ayala Land,
Inc. and the Jose Yao Campos family’s Greenfields Group, Andrew Tan’s Megaworld is developing the 50-
hectare McKinley Hill new township. Megaworld is also a leader in the call centers and BPO businesses in
the Philippines.

The world’s No. 1 largest-selling brandy

One of the amazing accomplishments of the self-made businessman is his unexpected success in making
his homegrown Emperador Brandy into the world’s largest-selling brandy in terms of total number of
bottles sold in 2006. This was revealed in a recent issue of Drinks International, a UK-based publication
that covers the world liquor industry. Tan’s firm sold 7.2 million nine-liter cases of brandy last year, and
plans to soon expand into Thailand and the vast China market.

For years, Andrew Tan has kept this business operation under the radar from his more established
competitors such as Ginebra San Miguel of the San Miguel group and Tanduay Rhum of the Lucio Tan
group, both liquor brands which have been in existence since the 19th century and iconic brand names
throughout Philippine history.
How did Andrew Tan make Emperador brandy and his newer Generoso brandy top brands, poised to
soon even outsell the gin and rum liquors in the vast but highly-competitive Philippine hard drinks
market? Alliance Global Group, Inc. president Kingson Sian, a graduate of the University of Chicago,
explains that Andrew Tan instructed the advertising firms to undertake a totally innovative campaign
which shall focus on the concept of “success.”

Instead of following the other liquor brands with their age-old strategy of producing TV and other ads
focusing on sexy women and sexy images, Tan wanted the Emperador brand to connote success and all
values associated with it such as hard work, drive, ambition, listening to parents’ advice, professionalism
and ambition. It was also Tan’s idea to have people wearing only coats and suits in all TV and other
commercials of the Emperador brand.

Unknown to most people, when the 1997 Asian financial crisis hit numerous real estate companies
throughout Asia, the efficient, fast-growing yet low-key liquor operations of Emperador brandy helped
continuously generate the crucial cash flows which kept the Megaworld and Empire East realty firms
afloat. Only with the recent public listing of the stocks of Alliance Global Group, Inc. and its acquisition of
Emperador Distillers, Inc., did Tan finally reveal the astounding business success and huge sales of his
liquor venture.

Alliance Global Group Inc. said it is targeting consolidated revenues of P25 billion in 2007, which
represents a 184 percent jump over the P8.8 billion the same firm posted in 2006. In the first half of
2007, the consolidated revenues of Alliance Global rose 254 percent to P12.4 billion and net income
increased to P1.23 billion, or representing a 445 percent increase compared to the previous year.

The position of the Philippines’ No. 1 wealthiest billionaire has been changing in the last three annual
listings of Forbes magazine, with tobacco king Lucio Tan once being in first place for years, replaced last
year by shopping mall king Henry Sy and now the Zobels gaining the top position this year. Based on this
flux in the wealthiest roster and in the fast-changing business landscape of the Philippines, it wouldn’t be
surprising if the driven, passionate and visionary self-made taipan Andrew Tan would someday become
No. 1, and prove himself the new king of the pack.

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