The trees came down in Baguio City, and for a time, the criticism felt like a physical weight. SM was accused of prioritizing profit over the environment, a narrative that stung deeply. But beneath the surface of that controversy lay a story of difficult choices, unwavering responsibility, and a profound lesson in leadership that would ultimately reshape my path.
Above the University of the Cordilleras, a hillside loomed, a constant source of worry. As the head of SM, I couldn’t ignore the growing threat of soil erosion with each rainfall. Thousands of students were unknowingly in danger, and the weight of that potential disaster kept me awake at night. The only viable solution – a robust retaining wall – demanded a sacrifice: the removal of trees on our property.
It was a heartbreaking decision, one made with a heavy heart and a deep respect for the environment. Explaining the necessity proved difficult; the public saw only the felled trees, not the intent to protect a community. A concert was even canceled in protest, a stark illustration of the public’s disappointment. Yet, we pressed forward, completing the work that ensured the safety of the university and its students.
That experience wasn’t just about engineering and construction; it was a crucible for my understanding of leadership. It taught me that true leadership isn’t about popularity, but about doing what is right, even when it’s deeply unpopular. It was a lesson forged in the fires of public scrutiny and solidified by a commitment to safeguarding lives.
Unexpectedly, the situation opened a door to a global stage. A conversation with the head of the United Nations Office for Disaster Risk Reduction led to an invitation – an invitation to become the first Filipino from the private sector to join their ranks. It was an opportunity to share the principles SM had quietly embraced for decades: proactive planning and building resilience.
Now, through ARISE Global, I collaborate across sectors, helping communities prepare for and recover from the inevitable challenges posed by our geography. The Philippines, situated in the Pacific Ring of Fire and the path of countless typhoons, faces a relentless barrage of natural disasters. For 21 years, we’ve been recognized as the world’s most disaster-prone nation – a sobering reality.
Despite the risks, my family and I remain steadfastly committed to the Philippines. At 70 years old, I still carry only a Philippine passport, a symbol of unwavering faith in our country’s potential. We believe that the Filipino spirit is resilient, that hope can triumph over hardship, and that a better future is always within reach.
SM’s story began not with grand ambitions, but with hardship and hope. My grandfather instilled in my father a vision that extended beyond personal success – a desire to lift others up. From a single shoe store in Manila, SM has grown into a diverse ecosystem encompassing real estate, banking, retail, and education, all driven by a commitment to service.
Our journey hasn’t been without its trials. Political unrest, economic downturns, and even a global pandemic have tested our resolve. But each challenge has made us stronger, not by avoiding adversity, but by learning, adapting, and daring to dream bigger. Our guiding principles – our values and a robust sustainability framework – have remained constant.
Integrity, hard work, and humility are the cornerstones of our family and our company. Integrity, as my father defined it, is about making decisions you can live with, in peace. This principle guided our response to the pandemic, leading us to waive rent for our tenants nationwide, even before any government mandate, extending over P23 billion in concessions.
Hard work is ingrained in our family’s DNA. We believe in the dignity of all labor, and my siblings and I continue to dedicate six days a week to our work, not as an obligation, but as a passion. We find joy in connecting with people, listening to our customers, and learning from our employees – a constant reminder of the opportunities for improvement.
Humility, passed down through three generations, shapes our approach to life. Simple lessons, like my son Chico learning to save his allowance for a soft drink, instilled a deep understanding of value and responsibility. These principles extend to our sustainability framework, ESG+R: Environmental Stewardship, Social Inclusion, Good Governance, and Resilience.
A documentary on climate change in 2006 served as a wake-up call. We began recycling water in the 1990s, a costly but necessary step. Today, water stewardship is integral to our operations, alongside stormwater management, water-efficient fixtures, and elevated properties designed to withstand flooding. We’ve even transformed our rooftops into solar fields, reaching 100-megawatt peak capacity and continuing to expand.
Our commitment to social inclusion was born from a single, poignant incident: a young boy with autism overwhelmed in one of our malls. This experience transformed our approach to customer service, leading to sensitivity training for our teams, accessible spaces, and a dedication to creating inclusive environments for everyone, regardless of ability.
Good governance at SM is a collaborative effort between family members and professional managers, guided by expertise and integrity. Our company presidents are chosen for their skills, not their lineage, and independent directors bring diverse perspectives and accountability. Malasakit – a deep sense of caring – is the common thread that binds us.
Resilience, however, wasn’t a concept we adopted; it was forged in the crucible of experience. The 1988 fire that ravaged SM Makati, occurring on my mother’s birthday, was a defining moment. From the ashes, a commitment to safety was born. We installed sprinkler systems, improved our designs, and learned from every incident, no matter how small.
Recent events serve as a stark reminder of the importance of our values and ESG+R framework. When faced with adversity, we must stay the course, upholding our responsibilities to create value, opportunity, and stability. My father’s decision to invest in the Philippines during a period of capital flight serves as a powerful example.
We are making the same choice today, continuing to invest in the Philippines despite the challenges. Nation-building is demanding, but by doing what is right, even when it’s difficult, we can build a future filled with dignity and hope. Receiving this award is both an honor and a call to action.
I pledge to dedicate more time and resources to strengthening the Philippines, focusing on education, expanding access to affordable learning at the National University with a goal of reaching 100,000 students by 2027. I will also continue to bolster disaster preparedness and climate adaptation through ARISE Philippines, and prioritize community rebuilding, as we are doing in Cebu, where we will build a church instead of simply rebuilding homes.
Finally, we will continue to invest in the future, creating smart cities, sustainable communities, and modern infrastructure that reflect the aspirations of the Filipino people. This is my commitment, a tribute to my father’s legacy and a testament to the enduring power of hope. I extend my deepest gratitude to the MAP Board, my family, our employees, our customers, and, most of all, to my parents, who taught me everything I know.
