The Aboitiz Group has touched the life of practically every Cebuano—student or homemaker, businessman or jeepney driver, young or old, rich or poor.
This is because the conglomerate’s interests extend way beyond financial services (UnionBank of the Philippines and City Savings Bank) and food production (Pilmico Foods Corp.), to marketing, real estate development and construction (Aboitizland and Gorones), ship building (Tsuneishi Heavy Industries Inc. and FBMA Marine Inc.), power generation and distribution (Visayan Electric Co.) and transport and logistics (2Go and Aboitiz Transport System, formerly WG&A).
Steering this multibillion-peso Cebu-based enterprise is Jon Ramon Aboitiz, 57, president and chief executive officer of Aboitiz Equity Ventures Inc. and Aboitiz & Co.
He started his career with the Aboitiz Group in 1970, right after graduation from the University of Santa Clara, California with a degree of B.S. Commerce, major in Management. From a manager of the Aboitiz Shipping Corp., he rose to become its president in 1976 and in 1991 became president of Aboitiz & Co.
He now holds various positions in the Aboitiz Group, including chairman and chief executive officer (CEO) of Davao Light & Power Co. Inc., chairman of Veco and Aboitiz Jebsen Bulk Transport Corp., and director of Hapag-Lloyed Phils., Cotabato Ice Plant Inc. and Bukidnon Hydropower Corp.
Aboitiz is also involved in poverty alleviation and education initiatives as trustee of the Ramon Aboitiz Foundation Inc., the Aboitiz Group Foundation Inc. and the Association of Philippine Foundations.
He is a member of the Board of Advisors, Washington Sycip Policy Forum at the Asian Institute of Management.
As chief executive officer of one of the most successful business organizations in the country, what do you find as Cebu’s strengths as a business and industry site? In what aspects can Cebu still improve?
In my opinion, the main strength of Cebu is its people/workforce, who arewell educated, have a no-nonsense attitude, are hardworking and industrious, skilled, creative, prudent and can easily adapt. The Cebuano is also hospitable and friendly.
Above all, it’s the entrepreneurial spirit combined with the above traits that make up the unique and competitive character of the Cebuano. The Cebuano, therefore, has the aptitude for a world-class output demanded by the world markets. 
Cebu needs to continue to focus on improving the skills of its workforce through technical training. Location, while a strength in the past, today is not so important.
In education, we should focus more on improving our English communication skills to add value to one’s self to be able to work not only abroad but also locally with so many call centers and BPOs (business process outsourcing firms) wanting to establish themselves in Cebu and in the Philippines.
How much has government helped in boosting the Cebu business environment?
I believe both the national government and more so the local government have done a good job in making Cebu an attractive place to invest in. The examples of our Peza (Philippine Economic Zone Authority) zones in Mactan being fully leased out and our own two shipbuilding facilities in Balamban are testament to the success of government’s policy of promoting of light and heavy industry in Cebu.
Can it do more and better?
Yes, the government must ensure that basic facilities and infrastructure keep up with investment growth and tourism. This is a very crucial role the government must play to keep Cebu always in the investment map as a competitive and preferred choice.
Do you believe in the tourism pitch of Cebu being an island in the Pacific that needs little assistance from the central authorities?
Yes and no.
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Yes, on a case-to-case basis when we deal with specific tourist markets that already have negative impressions about the Philippines as a whole but have positive feedback about Cebu, and that are not yet fully aware that it’s part of the Philippines.This, in fact, worked in the past when the central authorities did not have the resources to support us. Some private travel agents continue to use this marketing strategy.
No, because from a general perspective and in the long term, we are part of the Philippines, and we do need all the support we can get. The tourism pitch needs central government assistance for promotion, especially abroad through roadshows, promotional videos, among others.
Our embassies too play a crucial role in promotion. I think we are getting very positive results with the recent tourism drive led by a Cebuano himself, Sec. Ace Durano who is doing a good job.
Can you apply that to business and industry? Or do you believe that when Manila sneezes, Cebu might catch a cold?
Manila is the country’s seat of government and therefore, it is the nerve center for public information etc. Cebu, many times in the past, has developed enough resistance to resist being infected by “colds” from Manila and continues to operate “business as usual” whenever Manila sneezes.
But we have to face the fact that yes we are and can be affected by negative issues emanating from Manila.
What do you see for Cebu business in the next decade or so?
I see growth in Cebu business not only in our traditional exports, but more so in tourism, call centers, business process outsourcing.
Our shipbuilding projects in Balamban will also continue to grow and expand. Hopefully, the mining sector in Cebu can also be rehabilitated, which will not only expand employment but also exports.
But to achieve good growth, we need to focus a lot more attention on our infrastructure, especially the road network in the City and north Cebu.
If you were to give a piece of advice to Cebu business, what would it be?
Invest in your people for they are your most valuable asset. Leverage on the great world-class work ethic of the Cebuano.
How can business enhance its social responsibility of providing jobs and giving workers a better life? Does restiveness in the ranks of the poor tell the business community anything?
Social responsibility of businesses goes beyond giving people employment and paying them fair wages and benefits. It should be part of all businesses’ basic philosophy to share their gains with the communities they serve through other value-added initiatives and interventions, i.e. projects like building schools, donating computers and scholarships, microfinance etc.
Corporate social responsibility is crucial for any and all businesses because it’s good business to practice it.
What is your conviction on the use of wealth and power for public good?
In any society, wealth and power should be used for public good and not for selfish ends because it is the right, equitable thing to do. Abuse of wealth and power for the good of a few will never succeed as long term society will reject it.
Aside from leading your company to higher profitability and success, what gives you most joy?
My family, being with them.
How does a powerful CEO like you relax and unwind?
I like to go to the beach, read, watch a good DVD. Exercise is important too, as it’s not only good for your health but helps you unwind. |
