SM plans further expansion in education
By Keith Richard D. Mariano,
Reporter Posted on December 19, 2016
http://www.bworldonline.com/content.php?section=Corporate&title=sm-plans-further-expansion-in-education&id=137911
THE SM GROUP will pursue its expansion in the higher education sector by building or taking over more schools, which will eventually operate under a single brand, a top executive said.
The group is keen on growing its portfolio of schools by whatever means, Hans T. Sy, chairman of the Sy family-backed National University, told reporters after the awarding of the Management Man of the Year by the Management Association of the Philippines in Makati City on Dec. 13.
“We’re going to be open to any way. By organic growth, yes. By acquisition, yes. And by joint venture, also yes — because, as we are pushing for this, we are not aiming to create any enemies or competitors, because our goal here is to reach out to as many Filipinos as we can,” Mr. Sy said.
“As my father has always told us, education is the greatest equalizer. And that’s what we’re going to do,” added Mr. Sy, who recently retired as president of listed property developer SM Prime Holdings, Inc.
The SM Group has received credit for turning around National University, where it acquired a 60% stake in 2008. The Manila-based school, founded in 1900 as Colegio Filipino, has around 8,500 college students at present.
The group of the country’s richest man Henry Sy, Sr. also operates Asia Pacific College, which offers information technology-related courses, among others, and enrols around 3,000 students currently.
The SM Group intends to expand its portfolio of schools initially within the National Capital Region before entering the rest of Luzon, the Visayas and finally Mindanao. For instance, the company is looking at developing idle properties beside its shopping malls, Mr. Sy said.
“That’s something similar of what we’re planning to do. As a matter of fact, what I envision is it to be right within our mall areas. As you know our malls — there are certain limits to a mall. As we expand, we expand offices, call centers, why not a school?”
Asked whether the group plans to consolidate its school properties under one brand, Mr. Sy said: “Eventually, yes. That’s what we would like to do.”
But the SM Group faces obstacles in expanding its portfolio of schools. In fact, Mr. Sy said, the group will focus on training more faculty members in the next five years to address “one of the biggest difficulties” in expanding in such a regulated sector.
“As we are doing some of these studies, there are certain obstacles that we have to go through — many obstacles because it’s a regulated industry. But as what I usually do in SM, nothing is going to stop us,” Mr. Sy said.
Echoing a remark by sister Teresita T. Sy-Coson — vice-chairperson of the group’s listed holding firm SM Investments Corp. and chairperson of banking giant BDO Unibank, Inc. — in accepting the Management Man of the Year award last week, Mr. Sy added: “We will find ways. So, there will be some setbacks but we will definitely want to push through.” |
