What the US should learn from the STAR: High revenues & zero debt!

Excellent firms don’t believe in excellence — only in constant improvement and constant change. —Tom Peters

Politicos of the US as well as businessmen should emulate the example of The Philippine STAR, led by the Belmonte brothers Miguel, Isaac and Kevin, for leading this media group to the highest advertising revenues, financial discipline and zero debt! In stark contrast, the US, the world’s former most dynamic economic superpower, is now mired in a record $14.3 trillion in debt.

The Star Group of Companies is a fine example of entrepreneurial success. Other impressive facts revealed in the 25th-anniversary celebration last July 28 at Makati Shangri-La Hotel include 18-month salaries per year for all employees, housing projects plus free shuttle transport service, the absence of a labor union, the socio-civic commitment of the newspaper, pioneering color printing in all pages, etc.   

The US is suffering a government-spending and debt crisis, compounded by a serious investment exodus caused by Washington’s weak-dollar policy. We in the Philippines should expand our economic ties beyond the US to that of other nations like the ASEAN, China, energy-rich Russia, industrial powerhouse South Korea, booming colossus Brazil, India, Japan, and others.

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Is it true that the Jaime Augusto Zobel de Ayala-led Globe Telecom might be able to get naming rights to the now-under-construction Arena near SM Mall of Asia, which will reportedly become bigger and more modern than the iconic Araneta Coliseum in Cubao, Quezon City? Is it true that in answer to Manny V. Pangilinan clinching the naming rights of the “Smart Araneta Coliseum,” the country’s new ultimate sports and entertainment venue might possibly be named the “Globe Arena”?

Congrats to the Henry Sy family for the fast-growing chain of IMAX movie theaters nationwide. I heard that SM Group is not only entering moviemaking due to their IMAX theaters, but also venturing into the concert-organizing business due to Arena.

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Congratulations to Ace Saatchi & Saatchi led by chairman Arthur Young and vice chairman Matt Seddon  for having secured the most coveted Agency of the Year title : the Campaign Brief Asia 2010 Philippine Agency of the Year.  Also, Ace Saatchi & Saatchi is included in Campaign Brief’s Top 20 Agencies in Asia, ranking number 18.  In the country’s history, this is the highest that any Philippine agency has ever come in the Campaign Brief Asia rankings.

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Philippine-China Relations Not Only Spratlys But Also $27.7 Billion In Trade

Thanks to topnotch architect and Management Association of the Philippines (MAP) president Jun Palafox for introducing me to China Embassy Economic and Commercial Counselor Wu Zhengping at the July 27 dinner in Makati Shangri-La Hotel, with the Xuzhou City delegation led by leader Cao Xinping from the Jiangsu province of east China.

Among the various VIP guests were Federation of Filipino-Chinese Chambers of Commerce & Industry, Inc. (FFCCCII) president Tan Ching, Liwayway Marketing (Oishi) boss Carlos Chan and other business leaders.

Architect Jun Palafox requested a copy of Counselor Wu’s speech for me. The Philippine STAR was the only media group present at that formal dinner reception of entrepreneurs from the Philippines and east China. Here are some excerpts of the speech:

“This year marks the 36th anniversary of diplomatic relations between China and the Philippines … the enhanced economic relations make our overall bilateral relations stronger and more solid.

“According to the National Statistics Office of the Philippines, in 2010, China was the fourth largest trading partner of the Philippines. Bilateral trade volume amounted to US$10.352 billion, registering a growth rate of 53 percent over the previous year. In 2010, Philippine exports to China increased by 95 percent.

“According to China’s Custom Statistics, our bilateral trade in 2010 was $27.7 billion, up by 34 percent over 2009. Although there is a discrepancy with regard to our respective statistics, both Chinese and Philippines statistics showed that the Philippines enjoyed a trade surplus in its trade with China in recent years. 

“Last year, the Philippines had a trade surplus of $1.097 billion, according to Philippine stats, and $4.7 billion according to Chinese stats. Mainland China and Hong Kong accounted for one-fifth of the Philippines’ export market, more than any other country in the world.

“It is gratifying to note that two-way investment is also on the increase. According to Philippine statistics, last year, FDI from China totaled P5.657 billion, more than doubling this figure in 2009.

“Despite the hostage-taking incident last year, our cooperation in tourism also advanced.  Now China is the fourth biggest source of tourists for the Philippines. Last year, 187,446 tourists from Mainland China visited this country, representing a growth rate of 21 percent over the year 2009. In the first four months of this year, this number rose by 71,113, up by 19 percent over the corresponding period last year. It is estimated that Chinese tourists visiting the Philippines will surpass 200,000 in the year 2011.

“China and the Philippines are close neighbors … we will continue to encourage Chinese companies to invest in the Philippines, either through FDI or Private Public Partnership (PPP), which President Aquino and the current administration advocate. With Chinese capital and technology and Philippine resources well utilized, we can work together to achieve a win-win solution for our two peoples.

“The Philippines has made tremendous achievements in the modern service industry. Due to the fact that most Filipinos speak fluent English and the high-quality labor force, BPO emerged as a pillar industry of the Philippines with an output around US$10 billion. The Philippines overtook India as the most important BPO center of the world. About 10 million Filipinos work abroad and sent back last year around $ 20 billion to the motherland.

“The Philippines has great potential in its agricultural development — 47 percent of its land is agricultural. There are 14.2 million hectares of alienable and disposable lands. There are also 15.8 million hectares of forestland. Philippine agriculture includes forestry and fishery-dominant sectors in the economy. Seventy percent of its total population (more than 60 million) is in the rural areas.

“Two-thirds of this population depends on farming for their livelihood. One-half of the labor force is engaged in agricultural activities. Thus, high priority is given to transforming agriculture into a modern, dynamic and competitive sector.

“The country is the world’s third largest exporter of bananas, fifth largest mango exporter, second largest pineapple producer, and the largest coconut oil exporter in the world, supplying 64 percent of the world’s coconut oil requirement.”

P-Noy: Philippine-China relations aren’t just about territorial disputes, they’re about fast-growing trade, investments and tourism. While our former colonizer the USA seems to be following the example of the declining Roman empire, China is rising economically as fast as the ultimate superpower.

The Thai government in Bangkok told me that China’s tourists to Thailand will reach a record 1.8 million this year. In order to boost more affluent China tourists, the Thai government last year waived visa application fees. What are we doing to woo China tourists and investors?

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