Revisiting Managing Asia's 2007 interview with the late John Gokongwei | Managing Asia

Summary

In this tribute episode of 'Managing Asia,' we honor the late Filipino tycoon John Gokongwei, known as 'Big John.' The episode revisits a 2007 interview, highlighting his rags-to-riches journey and business acumen. Gokongwei, who built JG Summit into a leading conglomerate in the Philippines, shares his strategies for success, emphasizing the importance of seizing opportunities, having reserves during crises, and maintaining a balance between family-run businesses and professional management. His legacy is one of entrepreneurship, innovation, and giving back to society through education.

Takeaways

• 😀 John Gokongwei, a Filipino tycoon, is celebrated for his business acumen and his rags-to-riches story, highlighting the entrepreneurial spirit.
• 💼 Gokongwei's success is attributed to seizing opportunities and his 90% success rate due to thorough research and study before venturing into new business areas.
• 🏭 With a reputation for being tough and competitive, Gokongwei built JG Summit into a conglomerate leading in food, airline, and property sectors in the Philippines.
• 👶 Born into wealth, Gokongwei lost everything at 15 and had to start as a peddler, learning the importance of hard work and gaining people's trust.
• 📚 Emphasizing the value of education through self-study and reading, Gokongwei believes in continuous learning as a key to success.
• 💰 His first million was made at 30 through cornstarch and battery production, followed by diversification into snack foods and other industries.
• 🌐 Gokongwei's business philosophy includes having reserves to weather crises and not declaring default, which helped JG Summit survive the 1997 Asian financial crisis.
• 🔍 He actively seeks business ideas through travel, reading, and observing consumer behaviors, like noticing the popularity of tea among Chinese travelers, leading to new business ventures.
• 📉 Gokongwei admits not all ventures are successful, emphasizing the importance of closing unprofitable projects and reallocating resources.
• 🛑 His four rules for entering new businesses include feasibility study, capital assessment, competitive analysis, and the personal ability to sleep at night without worrying.
• 🏛 Gokongwei's vision for the company involves maintaining a manageable size, good governance, and a foundation that supports education and societal development.

Q & A

Who was the late Filipino tycoon Jongo Conway known as?

Jongo Conway was known as 'Big John,' a visionary entrepreneur with a rags-to-riches story.

What is Jongo Conway's business philosophy according to the 2007 interview?

Jongo Conway believed in seizing opportunities and conducting thorough studies before venturing into new business areas, which contributed to his 90 percent success rate.

How did Jongo Conway's reputation for being tough-as-nails help in building JJ Summit?

His tough-as-nails reputation helped him build JJ Summit into one of the largest conglomerates in the Philippines, leading in food, airline, and property sectors.

What was Jongo Conway's first successful business venture?

Jongo Conway made his first million by running a cornstarch battery business when he was 30.

How did the 1997 Asian financial crisis impact Jongo Conway's business strategy?

The crisis led to diversification into other businesses such as telecoms, petrochemicals, aviation, and banking services, which helped the company weather the economic downturn.

What is Jongo Conway's approach to spotting business opportunities?

He spots business opportunities through extensive travel, reading, and observing consumer behavior, as exemplified by his entry into the tea business after noticing Chinese travelers carrying tea.

What are Jongo Conway's four rules for entering new businesses?

The four rules are: 1) Conduct a study to determine feasibility, 2) Ensure having the necessary capital, 3) Assess if the business can serve the people and compete effectively, 4) Evaluate if the venture allows for peaceful sleep, indicating manageable risk.

How does Jongo Conway manage the risk of expanding the company's footprint abroad?

He expands by following his four rules for risk assessment and ensuring that the company has a solid foundation and competent professionals to manage operations.

What is Jongo Conway's view on the role of an entrepreneur in the changing business landscape?

He believes that entrepreneurship has evolved, with less ability to start from scratch with minimal resources, but still offers opportunities for those willing to take on challenges and adapt to change.

What advice does Jongo Conway have for aspiring entrepreneurs?

He advises them to adapt to change, understand market needs, and be willing to take calculated risks while maintaining a focus on long-term vision and hard work.

What legacy does Jongo Conway wish to leave behind?

Jongo Conway wishes to be remembered as an example for young people that success can be achieved through hard work and integrity, and that those who make money should also contribute back to society, particularly through education.

Outlines

00:00

😀 Entrepreneurial Spirit of John Go Kong Way

This paragraph pays tribute to the late Filipino tycoon John Go Kong Way, known as Big John, who was celebrated for his business acumen and courage. It recounts his journey from a peddler to one of Southeast Asia's richest men, emphasizing his ability to seize opportunities and his 90% success rate in ventures. The summary also touches on his early life struggles during World War II, which instilled in him the values of hard work, trustworthiness, and education. His first million came from the cornstarch business, and his empire, JG Summit, expanded into various sectors, including food, airlines, and property, weathering economic crises with strategic diversification.

05:01

📈 Business Expansion and Risk Management

The second paragraph delves into John Go Kong Way's approach to business expansion and risk management. It highlights his four rules for entering new businesses: thorough study, capital availability, competent team, and personal peace of mind. Despite some ventures not being successful, such as an ice cream project, he emphasizes the importance of closing unprofitable projects and moving on. The paragraph also discusses the strategic decisions that led to the company's growth in telecommunications and aviation, and the importance of having reserves during economic downturns. His business ideas stem from travel, reading, and observing global business practices, which he applies with an innovative mindset.

10:03

👨‍👧‍👦 Family Business and Legacy

In the third paragraph, the focus shifts to the family aspect of John Go Kong Way's business empire. He discusses the importance of keeping the business within the family to ensure continuity and control. The paragraph outlines the structure of the company, with a foundation owning 30% of the shares and family members in key positions, ensuring the company's stability even in his absence. It also touches on his belief in the advantages of family businesses, such as loyalty and understanding each other's capabilities. However, he acknowledges the need to bring in outside talent as the business grows and diversifies.

15:04

🚀 Entrepreneurship and Adaptability

This paragraph explores John Go Kong Way's views on the evolution of entrepreneurship and the importance of adaptability. He reflects on the changes in the business landscape since his early days, noting the increased complexity and the need for capital. Despite these changes, he believes that entrepreneurship remains a viable path, with the potential for success in various sectors. The paragraph also discusses his personal regrets, such as not learning Mandarin or playing an instrument, and his advice for aspiring entrepreneurs to adapt to change and capitalize on market opportunities.

20:06

🏆 Legacy and Advice for Future Generations

The final paragraph wraps up the tribute with John Go Kong Way's thoughts on legacy and advice for future generations. He expresses his desire for his business to remain a family affair and for his children to carry on his values of honesty, integrity, and hard work. He also shares his belief in giving back to society, particularly through education, and his commitment to this cause by donating a significant portion of his wealth. The paragraph concludes with his hope to be remembered as an example of success achieved through ethical means and his dedication to inspiring young people in the Philippines.

📺 Managing Asia Special Tribute

This final section is a closing note from the host, Christine Todd, summarizing the special tribute to Mr. John Go Kong Way and inviting viewers to explore more content from CNBC International. It serves as a sign-off, encouraging viewers to subscribe to the channel for more videos and to engage with the content by clicking on the recommended videos displayed on the screen.

Keywords

💡Industrialist

An industrialist is a person who has significant influence in the business sector, particularly in manufacturing or industry. In the video's context, the late Filipino tycoon Jongo Conway is referred to as an industrialist, highlighting his prominent role in shaping the business landscape in the Philippines.

💡Philanthropist

A philanthropist is someone who seeks to promote the welfare of others, often through the generous donation of money to good causes. Jongo Conway is hailed as a philanthropist in the script, indicating his contributions to society beyond his business ventures.

💡Entrepreneur

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The video emphasizes Jongo Conway's entrepreneurial spirit, showcasing his ability to identify and capitalize on opportunities, which is a central theme of the video.

💡Rags to Riches

The term 'rags to riches' describes a classic narrative where someone rises from poverty to wealth through hard work and determination. The script refers to Jongo Conway's legendary rags-to-riches story, illustrating his journey from humble beginnings to becoming a tycoon.

💡Conglomerate

A conglomerate is a large corporation that operates in multiple industries, often unrelated. The script mentions JG Summit, which is one of the largest conglomerates in the Philippines, led by Jongo Conway, and spans various sectors such as food, airline, and property.

💡Diversification

Diversification in business refers to the strategy of spreading investments across various types of assets to mitigate risk. The video describes how JG Summit diversified into different businesses, including telecoms, petrochemicals, aviation, and banking, which helped the company during challenging economic times.

💡Opportunity

Opportunity refers to a set of circumstances that makes it possible to do something or a situation favorable for advancement. The script repeatedly mentions Jongo Conway's ability to spot and seize opportunities, which is a key element of his success story.

💡Competition

Competition is the activity or condition of striving to gain or win something by defeating or establishing superiority over others. Jongo Conway expresses his comfort with competition and his belief that it drives him to excel, as evidenced by his statement, 'I live with competition.'

💡Reserves

In the context of business, reserves refer to funds kept on hand to provide financial security or meet future needs. The video script discusses the importance of having reserves during a crisis, as it allows a business to avoid default and maintain stability.

💡Innovation

Innovation is the process of translating an idea or invention into a good or service that creates value or for which customers will pay. The script highlights Jongo Conway's innovative approach to business, such as entering the tea beverage market after observing consumer behavior in China.

💡Success

Success is the accomplishment of an aim or purpose. The video script uses the term to describe the outcomes of Jongo Conway's ventures, emphasizing his high rate of success due to careful study and strategic decision-making.

💡Legacy

Legacy refers to something transmitted by or received from an ancestor or predecessor. In the video, Jongo Conway discusses his desire to leave a legacy, particularly through his contributions to education and his hope to inspire future generations.

Highlights

Jongo Conway, a Filipino tycoon, is celebrated for his rags-to-riches story and business acumen.

Conway's success is attributed to his ability to seize opportunities and his 90% success rate in ventures.

With a reputation for being tough, Conway built JJ Summit into a leading conglomerate in the Philippines.

Conway's business philosophy includes competition as a motivator and the importance of reserves during crises.

Despite being born into wealth, Conway lost everything at 15 and had to start from scratch.

Conway's first million was made by 30 through cornstarch and snack food production.

JG Summit's diversification into various sectors like telecoms and petrochemicals helped it survive economic challenges.

Conway's business ideas stem from extensive travel, reading, and observing market trends.

Not all business ventures are successful; Conway mentions closing an unprofitable ice cream project after 20 years.

Conway's four rules for entering new businesses include feasibility, capital, competition, and peace of mind.

Family businesses are valued by Conway for their loyalty, shared knowledge, and long-term commitment.

Conway emphasizes the importance of adapting to change and understanding market needs for business success.

He advises entrepreneurs to be prepared for challenges and to take calculated risks based on thorough research.

Conway's legacy includes his contributions to education and his belief in giving back to society.

The transcript reflects on Conway's life, from his humble beginnings to becoming a business magnate.

Christine Todd pays tribute to Conway's vision, curiosity, and the entrepreneurial spirit he instilled in others.

The interview concludes with Conway's reflections on his life, achievements, and the importance of family in business.

Transcripts

[Music]

an industrialists

a philanthropist the late Filipino

tycoon jongo Conway was hailed for his

business acumen and courage a visionary

with a legendary rags to riches story in

this episode of managing Asia we pay

tribute to the man many called Big John

with this interview from 2007 a true

entrepreneur can find opportunities

anywhere words of John go kong way

filipino tycoon and one of the richest

people in Southeast Asia known for its

sharp intuition and business savvy go

kong way has done exactly that he has

found success by seizing opportunities

even in his semi-retirement days over

the past decade

I see a opportunity I going if that is

an opportunity that I have unfortunate

but before we go into anything we really

make a study of what that's why we have

been 90 percent successful in all our

adventures with this tough-as-nails

reputation but iPod has built up JJ

summit into one of the largest

conglomerates in the Philippines

leading in the food airline and property

sectors when you avoid the business in

your successful you learn and you get

you know you feel you can compete

against anybody that's what I my

personal feeling is I live with from

competition otherwise youuuuuu were

wiser away

Cheers go Conway who turned 80 last year

was born into wealth but he lost

everything when his father died and his

mother moved to China during World War

two

and the young age of 15 he had to fend

for himself

the only thing open for me was either

AdvoCare peddler work for somebody else

so I decided to get a bicycle and become

a peddler and there's a very

exhilarating experience I don't never

forget it if I would look back as well

my best time in my life what only

lessons did you learn from your

childhood struggles and hardships most

important thing is to have people trust

you work hard the usual thing and try to

get as much education as you can by

reading or for the world no schools open

then and austerity to certain degree and

the other world the other virtues of is

a Confuciusornis I think I believe in

that I in fact I practice that up to

this this day

[Music]

go Conway made his first million when he

was 30 running a cornstarch battery but

he struck a bigger gold mine producing

snack foods in the 1990s jg summit

diversified into other businesses

including telecoms petrochemicals

aviation and banking services a timely

move which analysts say helped the

company whether through one of Asia's

most challenging periods than 97 crisis

like a foot business in the recession I

have noticed the last four years it's

never been really affected airplanes

very bad because people have no money to

travel but they eat they have to eat so

it depends on what business but what is

important you must have reserves

you must have reserves that in a crisis

you don't you know declare default

because of your declared in in default

you are in big trouble

since then go Conway has aggressively

expanded the company's footprint abroad

so where does the visionary get his

business ideas from I travel a lot I

read a lot

you asked me about do is very big

interpret know so business people and

the West or Japan or even Asia what they

do and you know I spent two three hours

reading every night how do you spot

business opportunities just by reading

no you read the you know what's going on

then you know travel around see and like

see - that's a very string that this

exceptionally successful we launched it

- two years ago I knew about the thing

by traveling in China I see every

Chinese bring a bottle of wine what's

that for I said it's tea I said with the

Chinese to bring three for free you know

you know this is such a symbol everybody

has that so I had a meeting a more

people we decided to go into it so we

went through the very big way and the

successful

a very big Wade we're we were even have

started but but the results do all your

business ideas come to fruition not all

not all their subject are not very

successful we had an ice cream project

that we had for 20 years we decided to

close it anything that doesn't give us

the return we will just close it you'll

move into aviation and

telecommunications really surprise to

everyone how did you calculate the risks

when it comes to entering new businesses

well first of all I have four rules

first you make a study whether you can

do it

secondly do you have the capital or the

deep pockets needed third do you help

the people and can you compete the

fourth is can you sleep at night I guess

I could have all three sleeping at

nights maybe have a little difficulty

but I actually during the daytime nap so

I I recover sometimes at night you know

when you're interpreting order you're

not ninety five you always think of a

problem you but I usually don't I just

go to sleep I love to sleep that's one

of my my breeches I think I love to

sleep so nothing keeps you up at night

at all nothing some do but surprises

maybe surprises or crisis all crisis

well either one new looking at your

empire the go Kong way impasse spanning

across eight core businesses do you ever

get worried that a company gets too big

too clumsy and too slow footed we're in

eight areas and we feel we're not going

to go beyond that and we're doing very

well the last five years it's been

increasing I have put in place very good

we have a foundation that owns 30% of

the company you know I gave half a mile

shares to the foundation my son is

running it as president my brother is

chairman and the two of them combined

about 50 years of experience in the

company

so if I'm not around they couldn't run

it as well maybe even there who knows

and we have a complete line of very good

professionals down

we had a McKinsey did a thorough job of

analyzing our company about eight years

ago and they recommended some steps that

you are taking and which we feel is with

some revisions was very useful for us

and this has made us a more efficient

company and more willing to to take

risks that are more more understanded

risk so in the end I think we we're in

the right place and are looking at

competition I think we will do well

definitely what what stands out for me

is his innate curiosity he's always he's

always wants to know how things work is

always interested in the new news saying

the new idea and second is really his

long-term vision and courage that he's

willing to take on make large bets and

take on take on giants for instance when

he launched civil Pacific which was the

low-cost carrier or he put up a

petrochemical plant in the in the

Philippines at the curiosity and the

courage or something to me that that

stands out what this is instincts have

you picked up from him I hope they're a

little bit of it rubbed off on me your

ship and you know the ability to I I

think my father's always taught me that

we're we're not in this business for the

next deal we're in this business to

really we want to have a business that

that stands the test of time so really

my role is to be a story but not a

conservative story but to be a you know

to keep the entrepreneurial spirit in

this company you don't you don't survive

by playing safe not you

to take bets from the days he peddled

wears on his bicycle to running one of

Philippe's largest conglomerates jongo

Conway championed entrepreneurship a bad

she wore proudly from start to end how

you think the role of an entrepreneur

has changed in the last 10 years

enterpreneurship in in in in in in in in

the philippines in asia has changed a

little when i started i could start with

a bicycle and end up where i am i don't

think you can do it with a bicycle down

and and where I am that's one big

difference second when I started I was

the gel bondage

I was the purchasing agent I was the

warehouse burn I was you know cashier I

guess now you can't do that anymore

the certain changes in the environment

but use enterpreneurship is still good

you can still log on as a group come

with some capital go into areas just

like in the u.s. your global Yahoo you

have all this Intel Microsoft these are

all interpreter ship it's starting in

the Philippines you have a lot of this

in Taiwan even in Singapore in Malaysia

some but mostly in Korea and Taiwan

that's very strong interpreter ship how

do you know that you have what it takes

to become an entrepreneur well you know

you can do it you can click and some

people just like 9:00 to 5:00 you know

they they don't want to have the

headaches enterpreneurship is very

challenging it's very worthwhile but

it's also an area where you have a lot

of headaches pressure sleepless night

but it passes through rewards I would

choose interpreter ship any time how

much of what you did was based on pure

gut instinct I don't think there's some

gods like we were selling in a bicycle

doesn't you don't need a god you need

hardwork ingenuity but as you grow

bigger now like rush it it's a different

ball game now

you hope to have so many stuff work and

you know I don't know for personally

from my viewpoint there's too much stuff

work being done before we go do any

projects there's so many stuff work from

what I knew before is if Emma it's I

agree with the you set up it's better

that way it's easier to make less this

that make mistakes you can find out

before you do it in today's competitive

environment how do you formulate a

killer strategy it's not good to out

your opponent you must leave them some

part of the market because of Europe the

mounted some some governments may not

like it the Philippines is known for its

political upheavals as a businessman how

do you manage and adapt

when you're building businesses you're

15 you learn you learn I passed through

President Rojas Quirino then you have

monks I say Garcia all the way down to

is really you learn after you better

about that presidential you what is more

important is the the policies of the

country like now we're part of the

globalization efforts whether it's good

for the Philippines I don't know up to

Nam that's quite sure do you have any

advice for entrepreneurs on how to make

it this far and this big to make really

big money adapting to change I think

it's critical because if you are in the

wrong business you may be the smartest

guy alive you can't make any money you

be able to do to to be able to pinpoint

with at least some accuracy where the

economy is going and in that economy

what kind of businesses are required and

then go into it say guys making

carriages the automobile industry comes

in you still get stuck together

whoever the best care is making the

world you know that's that's number one

rule for me now let's talk about this

book that your children gave you for

your 85th birthday the ending goes

something like this

I'm an old man I'm now 85 years old I'm

no longer little John I am now Big John

who weighs over 200 pounds

you really weigh over 200 pounds yes

unfortunately I have a good wife and a

good family

I am happy do you think you've achieved

everything he wanted a to in life no two

things that I wanted to do but I I

didn't have the money or the time to be

able to learn Mandarin I had to play an

instrument I played piano for six years

when my father died I'd no more money to

pay for the piano teacher system and

what there is the same thing these two

things I wish otherwise I have fulfilled

my duty to the family to garden to

country you say you want to keep the

business within a family why is that

important to you the family should be

able to to be able to be responsible for

the business that means they have

control of the sorts of the business

this is important I've seen also in

Europe in the it's not very much in the

US but in Europe a lot of the mostly

companies or maybe 50 percent are run by

families BMW Mercedes in America slowly

out because of taxation and all that for

me I believe that the children it's at

least it's the heritage the hell they

have to take care of it but I as I said

I have given half of my fortune to the

foundation so what did you do that I

like to to help in the education of the

child I've been giving since I was

thirty years old and beginning the

schools I gave a building

there was only 30 that that was still

struggling but I had said it you know

it's a good thing to help help Society

so it wasn't simply to stop your

children from squabbling over their

inheritance no no no this team up half

they want a squabble tickets were over

the other half do you think there's

certain advantages to family businesses

especially we are starting in first you

you know each other you you know so that

they're gonna work

and that just resided and they don't

like it it professionals you you always

have the problem with the resigning

because somebody is offering a better

job Berlin so it's hard to look for a

new one well well if you have a relative

or you know he stays like my brothers

they stayed with me all their lives

loyalty and I think that's this is very

critical and secondly you can tell them

basically all the things that should be

told and thirdly which is most important

you know their capabilities because if

you get a professional you don't really

know their capability I've made some

errors in hiring professionals after you

hired them then you found her that

they're they're lemons you know what's

too late you have to find them but with

your family

you've grown with them you give them a

small job that you know exactly what

they can do but that's changing also

because when your business grows big

enough your relatives so you're forced

to look to outside you having people

also build talent like Airlines

telephone Petro camera you can hire on

concept but they don't know anything

about the business you have to get real

pros for this your son Lance go Conway

will ultimately inherit a company what

advice would you give him on how to run

or carry on the family business as far

as fundamental ii said he should i would

like him to follow my my methods

what's more is running the business

going to new areas

going to that's his business but about

honesty integrity hard work all this

should not change and finally how do you

want to be remembered how does John

become we want to be remembered what

sort of legacy do you want to leave

behind the second example for the young

men young people the Philippines that

you can achieve without really resorting

to or measures that are not exactly

right

you can do it and do you make enough

money you should also give back to

society what you you earned and I have

been doing it in fact it's going to be

more more now because I built half mine

and given is from the shares will be

used to spend for schools and students

that's part of the legacy I want to

stress a lot of education to the youth

a legendary figure who will continue to

inspire for generations to come

mrs. managing Asia special tribute to

mr. John go Kong way I'm Christine Todd

thanks for watching

[Music]

[Music]

hi I'm Christine Todd and thanks for

watching

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international thanks for watching