Commencement Address
Ateneo de Manila University
March 27, 2004 By
John L. Gokongwei, Jr.
I wish I were one of you today, instead of a 77-year-old man, giving
a speech you will probably forget when you wake up from your hangover
tomorrow. You may be surprised I feel this way. Many of you are
feeling fearful and apprehensive about your future. You are thinking
that, perhaps, your Ateneo diploma will not mean a whole lot in the
future in a country with too many problems. And you are probably
right. You are thinking that our country is slipping?no, sliding.
Again, you may be right. Twenty years ago, we were at par with
countries like Thailand, Malaysia, and Singapore. Today, we are left
way behind. You know the facts.
Twenty years ago, the per capita income of the Filipino was 1,000 US
d ollars. Today, it's 1,100 dollars. That's a growth of only ten
percent in twenty years. Meanwhile, Thailand's per capita income
today is double ours; Malaysia, triple ours; and Singapore, almost
twenty times ours. With globalization coming, you know it is even
more urgent to wake up. Trade barriers are falling, which means we
will have to compete harder. In the new world, entrepreneurs will be
forced to invest their money where it is most efficient. And that is
not necessarily in the Philippines. Even for Filipino entrepreneurs,
that can be the case.
For example, a Filipino brand like Maxx candy can be manufactured in
Bangkok?where labor, taxes, power and financing are cheaper and more
efficient?and then exported to other ASEAN countries. This wil l be a
common scenario, if things do not change. Pretty soon, we will
become a nation that buys everything and produces practically
nothing. We will be like the prodigal son who took his father's
money and spent it all. The difference is that we do not have a
generous father to run back to. But despite this, I am still very
excited about the future. I will tell you why later.
You have been taught at the Ateneo to be "a person for others." Of
course, that is noble: To serve your countrymen. Question is: How?
And my answer is: Be an entrepreneur! You may think I am just a
foolish man talking mundane stuff when the question before him is
almost philosophical. But I am being very
thoughtful here, and if I may presume this about myself, being
patriotic as well.
Entrepreneurship is the answer. We need young people who will find
the idea, grab the opportunity, take risk, and set aside comfort to
set up businesses that will provide jobs. But why? What are jobs?
Jobs are what allow people to feel useful and build their self-
esteem. Jobs make people productive members of the community. Jobs
make people feel they are worthy citizens. And jobs make a country
worthy players in the world market. In that order of things, it is
the entrepreneurs who have the power to harness the creativity and
talents of others to achieve a common good. This should leave the
world a better place than it was. Let me make it clear: Job creation
is a priority for any nation to move forward. For example, it is the
young entrepreneurs of Malaysia, Thailand, and Singapore who created
the dynamic businesses that have propelled their countries to the
top. Young people like yourselves. Meanwhile, in the Philippines,
progress is slow. Very little is new. Hardly anything is fresh. With
a few exceptions, the biggest companies before the war?like PLDT,
Ayala, and San Miguel?are still the biggest companies today. All
right, being from the Ateneo, many of you probably have offers from
these corporations already. You may even have offers from JG Summit.
I say: Great! Take these offers, work as hard as you can, learn
everything these companies can teach?and then leave! If you dream of
creating something great, do not let a 9-to-5 job?even a high-paying
one?lull you into a complacent, comfortable life. Let that high-
paying job propel you toward entrepreneurship instead.
When I speak of the hardship ahead, I do not mean to be skeptical but
realistic. Even you Ateneans, who are famous for your eloquence, you
cannot talk your way out of this one. There is nothing to do but to
deal with it. I learned this lesson when, as a 13-year-old, I lost my
dad. Before that, I was like many of you: a privileged kid. I went to
Cebu's best school; lived in a big house; and got free entrance to
the Vision, the largest movie house in Cebu, which my father owned.
Then my dad died, and I lost all these. My family had become poor?
poor enough to split my family. My mother and five siblings moved to
China where the cost of living was lower. I was placed under the care
of my Grand Uncle& nbsp;Manuel Gotianuy, who put me through school.
But just two years later, the war broke out, and even my Uncle Manuel
could no longer see me through. I was out in the streets?
literally.
Looking back, this time was one of the best times of my life. We
lost everything, true, but so did everybody! War was the great
equalizer. In that setting, anyone who was willing to size up the
situation, use his wits, and work hard, could make it! It was every
man for himself, and I had to find a way to support myself and my
family. I decided to be a market vendor. Why? Because it was
something that I, a 15-year-old boy in short pants, could do. I
started by selling simple products in the palengke half an hour by
bike from the city. I had a bicycle. I would wake up at five in the
morning, load thread, soap and candles into my bike, and rush to the
palengke. I would rent a stall for one peso a day, lay out my goods
on a table as big as this podium, and begin selling. I did that the
whole day. I sold about twenty peso s of goods every day. Today,
twenty pesos will only allow you to send twenty text messages to your
crush, but 63 years ago, it was enough to support my family. And it
left me enough to plow back into my small, but growing, business. I
was the youngest vendor in the palengke, but that didn't faze me. In
fact, I rather saw it as an opportunity. Remember, that was 63 years
and 100 pounds ago, so I could move faster, stay under the sun more,
and keep selling longer than everyone else. Then, when I had enough
money and more confidence, I decided to travel to Manila from Cebu to
sell all kinds of goods like rubber tires. Instead of my bike, I now
traveled on a batel?a boat so small that on windless days, we would
just float there. On bad days, the trip could take two weeks! During
one trip, our batel sank! We would have all perished in the sea were
it not for m y inventory of tires. The viajeros were happy because my
tires saved their lives, and I was happy because the viajeros, by
hanging on to them, saved my tires. On these long and lonely trips I
had to entertain myself with books, like Gone With The Wind.
After the war, I had saved up 50,000 pesos. That was when you could
buy a chicken for 20 centavos and a car for 2,000 pesos. I was 19
years old. Now I had enough money to bring my family home from
China. Once they were all here, they helped me expand our trading
business to include imports. Remember that the war had left the
Philippines with very few goods. So we imported whatever was
needed and imported them from everywhere?including used clothes and
textile remnants from the United States. We were probably the first
ukay-ukay dealers here. Then, when I had gained more experience and
built my reputation, I borrowed&nbs p;money from the bank and got
into manufacturing. I saw that coffee was abundant, and Nescafe of
Nestle was too expensive for a country still rebuilding from the war,
so my company created Blend 45. That was our first branded hit. And
from there, we had enough profits to launch Jack and Jill. From one
market stall, we are now in nine core businesses, including retail,
real estate, publishing, petrochemicals, textiles, banking, food
manufacturing, Cebu Pacific Air and Sun Cellular. When we had shown
success in the smaller businesses, we were able to raise money in the
capital markets?through IPOs and bond offerings-- and then get into
more complex, capital-intensive enterprises. We did it slow, but sure.
Success doesn't happen overnight. It's the small successes achieved
day by day that build a company. So, don't be impatient or focused
on immediate financial rewards. I only started flying business class
when I got too fat to fit in the economy seats. And I even wore a
used overcoat while courting my wife?it came from
my ukay-ukay business. Thank God Elizabeth didn't mind the mothball
smell of my overcoat or maybe she wouldn't have married me. Save what
you earn and plow it back. And never forget your families! Your
parents denied themselves many things to send you here. They could
have traveled around the world a couple of times with the money they
set aside for your education, and your social life, and your
comforts. Remember them?and thank them. When you have families of
your own, you must be home with them for at least& nbsp;one meal
everyday. I did that while I was building my company. Now, with all
my six children married, I ask that we spend every Sunday lunch
together, when everything under the sun is discussed. As it is with
business, so it is with family. There are no short cuts for building
either one. Remember, no short cuts.
Saint Ignatius of Loyola, your patron saint, and founder of this 450-
year old organization I admire, described an ideal Jesuit as one
who "lives with one foot raised." I believe that means someone who is
always ready to respond to opportunities. Saint Ignatius knew that,
to build a successful organization, he needed to recruit and educate
men who were not afraid of change but were in fact excited by it. In
fact, the Jesuits were one of the earliest practitioners of
globalization. As early as the 16th century, upon reaching a foreign
country, they compiled dictionaries in local languages like Tamil and
Vietnamese so that they could spread their message in the local
language. In a few centuries, they have been able to spread their
mission in many countries through education. The Jesuits have
another quote. "Make the whole world your house" which means that
the ideal Jesuit must be at home everywhere. By adapting to change,
but at the same time staying true to their beliefs, the Society of
Jesus has become the long-lasting and successful organization it is
today and has made the world their house.
So, let live with one foot raised in facing the next big
opportunity:globalization. Globalization can be your greatest enemy.
It will be your downfall if you are too afraid and too weak to fight
it out. But it can also be your biggest ally. With the Asian Free
Trade agreement and tariffs near zero, your market has grown from 80
million Filipinos to half a billion Southeast Asians. Imagine what
that means to you as an entrepreneur if you are able to find a need
and fill it. And imagine, too, what that will do for the economy of
our country! Yes, our government may not be perfect, and our
economic environment not ideal, but true entrepreneurs will find
opportunities anywhere. Look at the young Filipino entrepreneurs who
made it. When I say young, and I'm 77, remember, I am talking about
those in their 50s and below. Tony Tan of Jollibee, Ben Chan of
Bench, Rolando Hortaleza of Splash, and Wilson Lim of Abensons.
They're the guys who weren't content with the 9-to-5 job, who were
willing to delay their gratification and comfort, and who created
something new, something fresh. Something Filipinos are now very
proud of. They all started small but now sell their hamburgers, T-
shirts and cosmetics in Asia, America, and the Middle East. In doing
so, these young Filipino entrepreneurs created jobs while doing
something they were passionate about.
Globalization is an opportunity of a lifetime?for you. And that is
why I want to be out there with you instead of here behind this
podium, perhaps too old and too slow to seize the opportunities you
can.
Let me leave you with one last thought. Trade barriers have fallen.
The only barriers left are the barriers you have in your mind. So,
Ateneans, Class of 2004, heed the call of entrepreneurship. With a
little bit of will and a little bit of imagination, you can turn this
crisis into your patriotic moment?and truly become a person for
others. "Live with one foot raised and make the world your house." To
this great University, my sincerest thanks for this singular honor
conferred on me today.
To the graduates, congratulations and Godspeed.
"Ad Majorem Dei Gloriam".
Thank you.