Jollibee is cautiously bullish in 2009

One of the things I learned the hard way was that it doesn’t pay to get discouraged. Keeping busy and making optimism a way of life can restore your faith in yourself. — Lucille Ball

We turn not older with years but newer every day. — Emily Dickinson

Love not what you are but what you may become. — Miguel de Cervantes

Miracles happen to those who believe in them. — Bernhard Berenson

 First of all, congratulations to legendary “Appliance King” Benito Lim — father of Automatic Appliances boss Samie Lim and Abenson Appliances/Waltermart malls boss Wilson Lim — for recently being honored as the “Father of Appliance Retailing in the Philippines.” Samie Lim told the STAR that he foresees continued robust appliance sales growth and overall positive Philippine economic growth in 2009.

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This writer is bullish on Philippine economic growth in 2009 because of many reasons, e.g., the start of election spending for the May 2010 elections, the expected continued record-low world oil prices being beneficial for our oil-importing economy, the start of a more sane US presidency under Barack Obama, and the Philippine government’s pro-active P300-billion (US$6.3 billion) economic stimulus plan. 

Another piece of good news is that finally, 20 years after it was first filed in Congress, President Gloria Macapagal Arroyo recently signed the Renewable Energy bill into law. We foresee more investments and economic activities in the development of environmentally friendly and renewable “green” energy resources.

Our neighbors China and its breakaway Taiwan province recently started historic direct air and shipping links, and China commemorated the 30th anniversary of Deng Xiaoping’s breathtaking capitalist-style economic reforms. The Philippines is at the crossroads of exciting Asia; we will continue to grow with this dynamic region in this “Asia Pacific Century.”

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The latest issue of S magazine forecasts that one of the best movies in the Metro Manila Film Festival starting Dec. 25 is Star Cinema’s Tanging Ina Ninyong Lahat starring comedy queen Ai Ai de las Alas. After watching its premiere, this writer confirms it isn’t only well-scripted, well-crafted, well-acted and hilarious as well as a tearjerker, this excellent and entertaining film also has redeeming moral lessons about family values and good governance.

The wacky and passionate single-parent character of De las Alas becomes president of the Philippines in this film. I urge President Gloria Macapagal Arroyo and all presidentiables for 2010 to watch this film and learn lessons on honorable, humble, selfless and sensible leadership.

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This writer believes the corporate performance of the biggest fast-food chain, Jollibee, is a more accurate barometer of true Philippine economic conditions and prospects, more than the statistical claims and projections of NEDA and other government institutions. So I sought out 50-year-old Jollibee president Ernesto “Ato” Tanmantiong for an exclusive interview about the state of the Philippine economy now and next year. Excerpts from this interview:

THE PHILIPPINE STAR: How is 2008 going to end for Jollibee in terms of growth and total sales?

ATO TAN: We are growing over 10 percent and sales will be over P30 billion; 2008 is a good year for Jollibee.

How do you assess 2009 for the Philippine economy?

I agree there will be a slowdown next year due to world conditions caused by the US crisis, and I think various forecasts of two- to three-percent economic growth for the economy is possible. We are still optimistic on growth.

What is Jollibee doing to respond to these challenges?

We will continue to invest, but in a more conservative way. We plan to open 30 new outlets nationwide. We will focus on strengthening our cost efficiency, and we shall enhance our marketing programs.

Any recommendations for entrepreneurs and professionals on how to maintain success in these challenging times?

It’s called ko khe-lang in Hokkien, or focus more on customer satisfaction — continue to delight the customers. We should all be more prudent in spending or making investments. Never give up, don’t be pessimistic.

What are the reasons we should remain cautiously bullish on the Philippine economy?

First of all, the Philippine banking system is better than that of the US — we have no problems with our well-managed banks. We can see that there is still a strong international demand for overseas Filipino workers (OFWs); let’s all work harder to maintain the Philippines’ competitive edge in this field. The call centers and business process outsourcing (BPOs) will hopefully continue strong growth. I am bullish about these and other sectors, because the good quality and English proficiency of the Filipino workforce remain competitive advantages.

Will Jollibee continue its global expansion plans in 2009?

Jollibee will continue to expand in markets like China, Vietnam, the USA and the Middle East.

How do you assess the macroeconomic management of the government?

They’re doing okay in managing the Philippine economy.

Any suggestions for the Philippine government and other sectors in order to strengthen our economy in 2009?

Hopefully, all of us should focus more on the economy rather than politics. We at Jollibee are apolitical. We hope to see continued strong infrastructure spending and more efforts to maintain the all-important concern about peace and order, because these are so essential for economic development and investor confidence. Another important priority should be to promote the Philippine tourism industry more. We will continue to have growth in the Philippine economy in 2009 and hopefully we can work hard together to make it a good year for all.

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