How do the ultra-rich go from “mere” multi-millionaires to billionaires? A closer analysis of the 40 richest Filipinos provides eight answers
By Carlos Gonzales

Let me tell you about the very rich. They are different from you and me. – F. Scott Fitzgerald in “The Rich Boy”

What is a million pesos nowadays? Or even a few millions? Having tens of millions is more like it. Hundreds of millions is already mind-boggling. But a billion pesos? Let alone P92,000,000,000? Our brains somehow refuse to grasp the possibility. Jaime Zobel de Ayala and his family are worth exactly that. According to Forbes Asia’s “The Philippines 40 Richest” list for 2007, four Filipinos have reached billion dollar status. Aside from the Zobels are Henry Sy, Lucio Tan, and newly minted billionaire Andrew Tan. In Philippine peso terms, all 40 are billionaires.

Most of the names on the list are familiar. That’s because they are the same families that have ruled the Philippine economy for decades. However, there are a few new faces that neither belong to the old rich nor are considered political cronies. And somehow, that should put billionaire status within the realm of possibility for those of you who harbor such ambition.

So how did these billionaires become so rich? Is it because of race? After all, almost half are pure Chinese, with at least five being first generation Chinese immigrants from Fujian (where most of our taipans coincidentally come from). Around 15% are Spanish (most of them Basque). Sure, many Filipinos are mixed, if you think of it, so it’s hard to pinpoint anyone on the list who is Filipino of pure Malay blood.

Is it political connections? A good number of these billionaires are known Marcos cronies, or at least have benefited one way or another from that regime. And many are close to a previous and/or the current administration.

Maybe it’s because they were born rich in the first place. At least half of those on the list came from wealthy families and a bigger proportion were already relatively rich when they hit the bigger jackpot. Just seven can be easily identified as true rags-to-riches stories. Perhaps we are being too cynical. Could it be plain hard work and sheer luck?

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By Oliver Kuy as told to Excel V. Dyquiangco

In a corporate structure, time and effort is actually limited but when you are involved in a home technology set-up, just like I am, the rate of speed and flexibility is much better since I am working within the confines of a familiar zone. Besides, going virtual allows me not only to respond to the needs of the client much faster but with this type of work, I can also choose the life that I want.

When Kuydigital Design Consultancy first started to gain ground more than six years ago, it was actually both a very rewarding and convenient experience for me. It was rewarding in the sense that I had very low overhead expenses and convenient, because I can work anywhere and anytime I want.

I actually started my online business with a mission, and that is to provide companies and individuals through effective and innovative multimedia. One of my sterling goals is just to provide clients with the most innovative and pioneering way of expressing their ideas in print (advertising, editorial, or packaging) and interactive media (Web or e-learning).

And since I just spend most of my time working at home – the most, I leave the house at least three times a week for meetings with clients – I also need to get as much inspiration as possible. However, that is not likely to happen when you are just in the confines of your home. So what I do is that I also have to travel a lot – be it within the country or outside – and be exposed to several cultures and then come up with new ideas. That is why I need to be mobile and I need to be connected all the time.

The path to digital design
The road to digital design, especially when it’s your own company, hasn’t been fairly easy at first. I took up industrial design back in college but I never got to practice it in a corporate setting. So, I just decided to put up my own virtual business, so to speak, being the president and creative director for Kuydigital Design Consultancy. I started with just a few equipment – a high-end computer, a printer, and licensed software. My investment for the business was roughly around sixty thousand.

When I first started out, just like any other company or business, I also faced a few setbacks. One of them is that I need to get my company registered, which I did myself to overcome system struggles. I also had difficulty being mobile and being connected to the Internet so what I did was just to plan my travels and trips ahead of time and to anticipate the requirements of my clients.

Since a virtual office also needs to thrive in the cyber world each day, I also spent years in creating and restructuring my Website (www.kuydigital.com) so that the online functions would adhere to the needs of the client, and I also need my Web site to be listed in as many search engines as possible so that it would be accessible to potential clients. And the thing about my Web site is that it is not yet done even up to now; I am still reformatting and recreating some functions of the site, and updating it from time to time, and of course, uploading my current projects. But I am very much happy with the results as this Web site is able to reach possible clients, both local and foreign, every minute of every day, 24/7.

I just can’t believe how much people rely on the Internet for graphic designers. I sometimes get potential clients just through word of mouth – and the site has brought forth numerous dream jobs that I can add to my portfolio. What is more is that I can reach these clients without having to do some hard calling, and I can do everything just by the click of a keyboard and the mouse. All I needed to do is just to park my car at a Wi-Fi establishment, turn on my laptop and log on to the Internet, and do some wireless video conferencing or file transfer. Along with my laptop, my cellular phone also functions as an instant access to the Internet.

Aside from time savings and reduced effort, some of the benefits of going virtual is that it lessens the stress as working at the comfort of my own time and space gives me the creative juices and the inspiration for my designs. The only disadvantage of being virtual all the time is that I don’t get to meet a lot of people in person.

My home, my business
It’s such a humbling experience to see that Kuydigital Design Consultancy was able to reach out to clients through the power of the Internet. Our clients are big names from various industries – Total Philippines Corporation, Nike Philippines, Getz Pharma Philippines, Banko Sentral ng Pilipinas, and C2 Communications in New York, USA, among others.

Being able to work with such bigwig companies doesn’t mean that I can already sit back and relax. Oh no. This is just the stepping stone to a productive and fruitful endeavor. I still work hands-on even if I’m the president and even if I have several people under my direct supervision. I make sure that my clients get what they want. I do handle the conceptualization and creative direction but aside from that, I also do a lot of thinking and idea generation and I still do production work and project management.

The thing that needs to be remembered in working with such companies is that you really need to take care of them and to handle them in the right and proper manner. In fact, we just deal with our clients like our co-workers or teammates, and as part of the team. We are just one big and happy family.

Virtual learnings
As a businessman, I have learned a lot from doing online business – from treating my clients with the right perspective to submitting the projects just in time. In fact, what really sets us apart from other competitors is that our turnaround for every project is very fast and that we work round the clock. Kuydigital also offers a cost-effective retainer-based arrangement for our clients.

This business has also embedded in me three essential characteristics that would make any endeavor a success – the 3 Ps – you should be prudent, patient, and persistent for any effort that you plan to undertake. And to really have a rewarding lifestyle on the business, every time you make a thousand pesos, spend only a hundred and the rest, you get to save.

For those who would want to be involved with online business, or just putting up a business in these trying times, I would like to offer you several tips on what to consider and how to start-up: they should think of their overhead or monthly expenses and consider knowing how to maximize inexpensive resources that can generate good quality products or services, thus, resulting to profit. Make sure that you’re always connected – you can do this by planning ahead, ensuring that you have the right online tools and resources to run your business, and take your business online.

If you have built your riches and want to leave a legacy, consider putting up a charity under your name
By Tina Arceo-Dumlao

You’ve reached the pinnacle of your career. You’ve massed tens, if not hundreds, of millions in personal wealth. Now it’s time to give back more – a lot more – to society. You can, of course, do a Buffet and give your money to an existing foundation. However, if you want to be more of a hands-on philanthropist, and you want your giving to outlast you (and enjoy tax deductions), why not set up your own?

Foundations are defined as organizations or institutions that are established primarily by an endowment fund and their purpose is to distribute grant money to volunteer organizations, non-government organizations, cooperatives, people’s organizations or even individuals.

They get their money primarily through contributions from benefactors as well as their own livelihood programs. Corporate foundations, meanwhile, get funds from the mother corporation that sets aside a percentage of their income for foundation work.

The Association of Foundations, which is the umbrella organization of all kinds of foundations in the Philippines – from the philanthropic to the corporate – states that foundations play a significant role in national development because they complement the work of the government in delivering social services to the poor.

These foundations include those that were set up by prominent figures in the business sector who have passed away. These include the Enrique Zobel Foundation, Aurelio Periquet Foundation, Ramon Aboitiz Foundation, and Jaime V. Ongpin Foundation, to name a few.

Putting up foundations has become the way for them to continue their good work long after their death. And while it is true that some put up foundations as a tax shelter – since donations to foundations are tax deductible to some extent – they were put up for a much greater purpose.

Most are involved in education, and the rest in community organizing, environment, health and nutrition, and enterprise development or livelihood. Others have also evolved to include policy advocacy in their work, as they realized that delivery of social services is not enough to have a lasting impact.

The League of Corporate Foundations, for instance, which groups the country’s largest corporate foundations, is fighting for greater corporate social responsibility in the private sector. LCF also has its own programs, such as the 57-75 movement for education and the CSR Institute, where individuals and representatives of corporations can learn more about how CSR can be successfully integrated in the running of a corporation.

Fake foundations
Organizations with the word “foundation” in their corporate name have long been regarded suspiciously by Filipinos, as what comes to mind are groups that are put up with the sole purpose of doing more than just earn a profit.

That incident brought home the point that not all foundations are created equal and there are those that do take advantage of the good reputation of others to scam others of their money or contributions.

Rules were predictably amended and today, the Securities and Exchange Commission requires that organizations must have a capitalization of P1 million to have the right to use the term “foundation” in their name.

Otherwise, non-profit organizations or non-government organizations need to shell out only P100,000, according to the Association of Foundations, which has been in operation for 36 years.

The idea behind the higher capitalization for the foundation is to make it harder for groups to become foundations so that what would be left are legitimate foundations working on different causes – mainly poverty alleviation – that potential donors and benefactors can help.

The foundation or NGO has to submit to the SEC a notarized certificate of bank deposit to be registered, along with the articles of incorporation that will spell out their primary purpose, the source of funds, and proposed use of those funds.

The SEC Web site (www.sec.gov.ph) features downloadable forms, online registration and reservation of corporate names, rules, and regulations. NGOs and foundations can also check if their proposed name has already been taken and even how much they have to pay in registration fees.

Another precautionary measure put in place to check against fake foundations is the need to be accredited by the Philippine Council for NGO Certification.  PCNC (www.pcnc.com.ph) is a private, voluntary, non-profit group whose main function is to certify NGOs or foundations as meeting established criteria for financial management and accountability in the serve of underprivileged Filipinos.

These were set up by six of the country’s largest NGOs that believed that they should check their ranks and rid their group of bad eggs. The group has been authorized by the Department of Finance to certify NGOs and foundations as qualified to seek funds.

Foundations have to be in operation for at least two years before they can seek accreditation with the PCNC. The accreditation assures potential donors that the foundation they are looking to contribute to is legitimate and has passed standards, such as financial controls and project completion.

The story of how the BBC anchor found his niche and discovered his passion for art
By Elena Torrijos

Since he was a small boy, accomplished international broadcaster Rico Hizon has been a saver. The most familiar Filipino face in financial news says his parents would call him kuripot (thrifty).

“I was always saving my money. Sometimes I wouldn’t eat even,” recalls Rico, who can be seen every morning on BBC’s business programs. “When I was in grade 2, I would be given a meal ticket that had a value of two pesos for a meal, but what I would do is that, instead of getting the full meal, I would get a cheaper meal. I would still have change of one peso, and that one peso I would put in my piggy bank.”

Even though he didn’t need to – his parents could well afford to take care of him and his two older sisters and older brother – during high school breaks and summers, Rico worked at McDonald’s Greenhills.

He also earned from being part of a mobile group with broadcasting peer David Celdran. “We would spin in parties and we would earn P500 pesos and after the job we would subdivide and the money that I would save from that job. I would either put it in the bank or I would buy my own Sperry topsiders, which was very uso at that time,” he recounts.

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