Philippines' richest man to expand empire in China

MANILA: Billionaire Henry Sy, whose retail empire has made him the richest man in the Philippines, may build as many as three malls a year in China to expand in the first major economy to rebound from the global recession.

"We have 34 malls in the Philippines and China is a market that's 13 times bigger" by population, said Hans Sy, president of SM Prime Holdings Inc, a unit of his father's SM Investments Corp. SM Prime, the biggest Philippine mall operator, is spending 5.5 billion pesos (100 pesos = RM7.67) this year in China.

SM Investments, whose 61 per cent share-price gain this year beats the Philippine benchmark, is increasing capital spending for 2009 by almost a third. Expanding in China, the world's most populous country, may help open opportunities for the family's other businesses, said Teresita Sy-Coson, Henry Sy's eldest child and vice-chairwoman at SM Investments.

"The malls will be an excellent outpost for the group," said Alex Pomento, Philippine strategist at Macquarie Group Ltd. "They get a gauge of China's consumer pulse and a springboard for the group's other businesses."