It’s wonderful to see all of the recent attention and interest in South East Asia and ASEAN. When I moved to the Philippines last year, I didn’t expect to find myself in the centre of the region which has become the subject of so much attention (events, conferences, missions, podcasts and Government reports – see Invested: Australia’s Southeast Asia Economic Strategy to 2040) and it has caused me to think hard about how I can assist and support foreign investors and business leaders navigate the complexity and challenges of getting deals done in this part of the world. It’s very different to China.
As a (newly arrived) foreigner in a young country of over 100 million with all of its history, culture, customs and complexities, I hesitate to call myself anything other than a local observer and/or commentator at this stage. I realise I’m on a steep and rapid learning curve. However, I offer some of the following observations from my local vantage point:
- Like many SE Asian countries, the Philippines is dominated by five or more long established local families (Aboitiz, Sy, Ayala are some of the best known, but there are many others you probably haven’t heard of). Their influence and tentacles have grown so far and over so long that they dominate many local industries (e.g banking, energy, mining, telecommunications, infrastructure, real estate etc) and are embedded into the local political system. They are known locally as the ‘conglomerates’ and you see their name and brands everywhere. You’ll need to understand the influence and impact of these groups if you’re serious about investing or doing business in this part of the world. This will take time, require patience and involve getting on the ground. This can’t be done from a distance.
- “Westerners” (i.e. Brits, Aussies, Americans, Europeans) are not as revered/respected/worshipped in this part of the world as we might like, hope or think. Quite the opposite actually. We are greeted warmly and with hospitality (as is customary for Asians when receiving foreign guests) but that’s about as far as it goes. To be accepted as serious local players we need to turn up regularly, appreciate local customs, give respect graciously and be humble. There are no short cuts. As always in Asia, relationships come before transactions. This is a difficult concept for westerners to grasp.
- There is an enormous gap between strategy and execution, and this is where the real challenge lies. It’s one thing to research the market, identify opportunities, meet people at networking events and prepare colourful brochures and web sites…it’s another to get anything done on the ground. You need experienced local guides, advisers and navigators to manage your expectations from the start. I have joined a local advisory firm, Mabuhay Capital, to bridge this gap and, if you’re interested, I invite you to contact me to find out more.
Don’t take my word for it. I’ve only just arrived. But don’t be fooled by the high level statistics, economic forecasts and geopolitical predictions and assume that it’s all going to be easy. From my experience so far, its not!
But that’s what makes it interesting!
