The Philippines and Japan share fundamental values rooted in industriousness, respect, community, family and a commitment to progress. Thus, the Philippines fosters an environment that welcomes global investment, notably from Japanese companies.
Leveraging these shared core values, GT Capital Holdings Inc., the publicly listed holding company of the Ty family, has firmly established itself as the partner of choice for Japanese investors and enterprises, cultivating a legacy of trust and collaboration. The group initiated partnerships with Japan nearly 36 years ago through Toyota Motor Philippines Corp. (TMP), driven by a shared vision between George S.K. Ty, the late founding chairman of Metropolitan Bank & Trust Company (Metrobank), and Shoichiro Toyoda, then president of Toyota Motor Corp. Their common goal was to contribute to the sustainable development of the Philippines through the vehicle industry.
Today, the automotive sector is a significant part of the Philippine economy, contributing up to 4% of gross domestic product at its peak in 2017. Collaborations with Japanese parts manufacturers, such as Aisin, Tokai Rika, Hikari Seto and Aichi Steel, based in TMP’s assembly plant within an export processing zone in Santa Rosa, Laguna province, have bolstered Philippine exports.
The synergy generated by the Japanese and Filipino cultures, emphasizing group harmony and collective decision-making, resonates deeply in GT Capital’s Japanese partnerships, reflecting a mutual commitment to consensus-building and collaborative growth. This cultural alignment is evident in GT Capital’s diverse portfolio of partnerships. For instance, Toyota Financial Services Philippines collaborates closely with Toyota Financial Services of Japan to provide auto loans to retail buyers, enabling access to vehicles that enhance mobility and livelihood.
Rightfully, George S.K. Ty’s contributions to Philippine-Japanese economic relations were recognized with the bestowing of Japan’s highly prestigious Order of the Rising Sun, Gold and Silver Star decoration, emphasizing his enduring legacy in cultivating meaningful international partnerships and supporting philanthropic initiatives through the Metrobank Foundation. He was awarded this honor by no less than His Majesty then-Emperor Akihito on Nov. 7, 2017. He was also awarded an honorary Doctorate in Humanities from the University of Santo Tomas.
Beyond Toyota, the GT Capital group has forged alliances with leading Japanese leasing and financing firms to establish joint ventures, such as Orix Metro Leasing and Finance Corp. and Sumisho Motor Finance Corp. Sumisho, co-owned by GT Capital, Philippine Savings Bank (a member of the Metrobank Group) and Sumitomo Corp., offers comprehensive financing solutions tailored for motorcycle ownership, reinforcing GT Capital’s commitment to accessible and convenient financial services in the Philippines.
These partnerships exemplify GT Capital’s mission to elevate the quality of life for Filipinos through ventures that promote economic resilience and prosperity, supported by a society united in progress and development.
In addition to automotive partnerships, Japanese companies have expanded into property development. In 2011, they demonstrated their project development expertise through a joint venture between GT Capital’s wholly owned subsidiary Federal Land Inc. and Japanese financing conglomerate Orix Corp., resulting in The Grand Midori, a Japan-inspired condominium. This collaboration continued with the Grand Hyatt Metrobank Center and the Grand Hyatt Residences, offering residential units with access to world-class amenities.
In November 2022, Mitsukoshi BGC, the first Japan-inspired mall, was opened, showcasing Japanese culture through its product offerings, tenant mix and architectural style, offering a bridge between Filipino and Japanese culture.
GT Capital’s long-term, strategic partnerships with leading Japanese corporations over four decades have contributed significantly to foreign direct investment in the Philippines. For instance, Nomura Real Estate Development Co. infused ¥44.4 billion ($275 million) to form a ¥133 billion property development joint venture with Federal Land known as Federal Land NRE Global Inc. NRE’s investment in FNG is its biggest thus far outside Japan. Another contribution came from TMP’s ¥13 billion investment in a vehicle predelivery inspection and logistics facility in Batangas province, further enhancing the capabilities of the country’s automotive and mobility sector.
TMP is one of two vehicle assemblers in the Philippines that qualified for the national government’s initiative to increase local auto parts production through fiscal incentives provided by the Comprehensive Automotive Resurgence Strategy Program.
TMP invested more than ¥13.9 billion in the CARS program and has already sold 189,966 units of the Vios, the country’s bestselling car, since the program was launched in July 2018. Moreover, TMP’s ongoing ¥15.2 billion investment in the IMV 0 or ‘Next Generation Tamaraw’ (an international, multipurpose customizable utility vehicle), as well as its support for parts localization and vehicle versatility for specialized applications, further underscore TMP’s pivotal role in strengthening bilateral relations and serving as a testament to Ty’s lasting legacy.
Strategic partnerships
GT Capital forms strategic partnerships with leading global brands across various sectors under a unified holding company with a shared strategy, mission and vision. This collaboration enables GT Capital to create added value for stakeholders and contribute significantly to the development of the Philippine economy.
Solidifying its position as a prominent conglomerate, GT Capital differentiates its business model by combining local expertise with global brand leaders through joint ventures in banking, mobility, property development, insurance and infrastructure. These alliances drive sustainable growth and are pivotal to GT Capital’s expansion and success, highlighting its commitment to trust and enduring partnerships with prominent Japanese entities, among others.
Pioneering Japanese partnerships
Even prior to the establishment of GT Capital, Metrobank had already forged robust partnerships with Japanese companies across sectors including automotive, property development, investment banking, insurance and consumer finance. The collaboration with Toyota in 1988 marked a significant milestone in the Philippine automotive industry, elevating TMP to prominence as one of Toyota’s top global affiliates. This enduring partnership underscores Metrobank’s understanding of Japanese culture and its dedication to fostering relationships based on mutual respect, trust and fairness in business.
Driving the automotive sector
Established on Aug. 3, 1988, TMP stands as the Philippines’ foremost automotive and mobility leader. Now a joint venture between GT Capital and Toyota, TMP excels in assembling, importing and distributing Toyota and Lexus vehicles nationwide. Operating from its advanced facility in the Toyota Special Economic Zone in Santa Rosa, Laguna, TMP assembles two top-selling models, the Vios and the Innova multipurpose van.
TMP’s commitment to excellence was highlighted by its recent achievement of its 22nd consecutive Triple Crown award in 2023, marking its dominance in car, commercial vehicle, and overall vehicle sales. Additionally, TMP attained Level 4 of the Philippine Quality Award, the highest national recognition for exemplary organizational performance. This accolade solidifies TMP’s pivotal role in shaping the Philippine automotive industry.
As part of its thrust of providing mobility for all, TMP recognizes the evolving needs of the Philippine market and is offering the widest range of electrified vehicle models in the country. TMP and Lexus have 15 hybrid electric vehicle models (HEV) and Lexus is offering its first battery-powered electric vehicle, the RZ450e, in the Philippines.
“With the resumption of motorization, the continued under-penetration of passenger cars in the country, and an improved supply situation, we are confident that Toyota will continue to lead the way this year,” TMP President Masando Hashimoto said. “I believe we are in an ideal position to help outline and form the future of mobility in the Philippines.”
With the resumption of motorization, the continued under-penetration of passenger cars in the country, and an improved supply situation, we are confident that Toyota will continue to lead the way this year.
Masando Hashimoto, President of Toyota Motor Philippines Corp.
Recognized for its substantial tax contributions at the national and provincial levels, TMP reflects its robust economic impact and corporate responsibility.
To support the country’s societal goals, the TMP School of Technology was established in 2013. This world-class training school is geared toward transforming the Philippines into a human resource development hub to meet the automotive technician requirements of TMP. There have been over 2,172 graduates from the TMP School of Technology and more than 1,035 scholarship recipients as of the end of 2023.
Celebrating its 35th anniversary and the opening of its 74th dealership in 2023, TMP expanded its network, reinforcing its commitment to superior service and accessibility for Toyota enthusiasts nationwide. Notwithstanding that the Philippines is still a developing economy, TMP was already ranked 10th globally in terms of Toyota unit sales as of last year.
Advancing mobility
TMP continues to innovate with the launch of the HEV Zenix in addition to improved and new models, such as the Wigo and Yaris Cross, setting benchmarks in performance and sustainability. Partnering with PLDT Enterprise (formerly known as the Philippine Long Distance Telephone Company), TMP integrates smart Internet of Things embedded SIM card solutions into myToyota Connect, enhancing digital services and connectivity for customers nationwide. This platform enhances the customer experience with real-time connectivity via smartphone, offering features like vehicle status updates, stolen vehicle tracking, trip summaries, geofencing alerts and maintenance notifications.
Toyota Mobility Solutions Philippines introduced Toyota RentaCar, providing flexible and affordable rental options for short-term and long-term needs, enhancing mobility solutions across the Philippines.
GT Capital Auto and Mobility Holdings Inc., another wholly owned subsidiary, has significantly grown its presence in the Philippine automotive sector through strategic ventures. Among them are JBA Philippines Inc. — a joint venture with Japan Bike Auction Co., a member of the publicly listed USS group and the largest auctioneer of used cars in Japan — and GT Mobility Ventures. JBA Philippines operates an innovative auction house for used cars that makes use of the advanced App-based Inspection System, ensuring transparency and reliability.
GT Capital Auto and Mobility Holdings Inc., another wholly owned subsidiary, has significantly grown its presence in the Philippine automotive sector through strategic ventures.
In addition, Premium Warranty Services Philippines Inc., a joint venture between GTMV and Japan’s largest warranty provider Premium Group Co., offers high-quality vehicle inspection and warranty services, bolstering confidence in the market for pre-owned cars.
Furthermore, GT Capital invested ¥22 billion in Toyota in 2018 to further solidify their successful and longstanding partnership. On the local front, GT Capital and TMP own seven and five, respectively, of the 74 dealerships in the Philippines. Toyota Manila Bay Group, a joint venture between GT Capital and Mitsui & Co., operates the aforementioned five dealerships, which are in Metro Manila and nearby Cavite province.
Toyota Corolla Sapporo Corp., one of Japan’s largest Toyota dealers with over 110 outlets, is a key strategic partner of GT Capital. The conglomerate partnered with Toyota Corolla Sapporo in 2020 and acquired the Toyota Santa Rosa dealership in Laguna. With over 50 years of experience and robust sales figures, this dealership enhances both operational efficiency and used car sales at TSR. This collaboration underscores GT Capital’s commitment to enhancing the automotive value chain in the Philippines.
GT Capital’s network of 12 dealerships across the Philippines accounted for 20.7% of TMP’s total unit sales as of the first quarter of 2024.
Elevating Philippine real estate
Federal Land is a leading Philippine property developer known for its distinct design, superior customer service and comprehensive market knowledge. With over 50 years of experience, Federal Land develops innovative residential projects, commercial developments and master-planned, mixed-use communities, primarily targeting the luxury and upper middle-income market segments. Its extensive land bank in key Metro Manila locations ensures continued growth and development.
Federal Land is a leading Philippine property developer known for its distinct design, superior customer service and comprehensive market knowledge.
Federal Land has forged significant partnerships with Japan’s NRE and Isetan Mitsukoshi Holdings Ltd., marking a new era of excellence. Together, they developed Sunshine Fort, a Japan-inspired integrated community within the sprawling 10-hectare Grand Central Park in Bonifacio Global City, integrating superior design and functionality. The collaboration led to the grand opening of Mitsukoshi BGC, the Philippines’ first Japan-inspired mall
NRE, established in 1954, is one of Japan’s largest property developers, specializing in residential and commercial development, corporate real estate brokerage, building leasing and architectural design. NRE’s partnership with Federal Land resulted in the formation of FNG, combining over a century of local and international real estate experience to elevate urban living in the Philippines.
Led by Federal Land Chairman Alfred Ty and NRE Chairman Eiji Kutsukake, FNG’s upcoming projects are expected to set new standards in quality. The partnership combines over a century of local and international property development, offering a wider range of products and services in the Philippines.
Isetan Mitsukoshi, the parent of the renowned Isetan and Mitsukoshi department stores, aims to be the world’s foremost retail services group. With over 19,000 employees globally, it operates 26 stores in Japan and 10 overseas, embodying a blend of Asian hospitality and Western innovation.
Federal Land continues to expand its portfolio with notable projects, such as The Grand Midori Tower Ortigas Tower 2 and The Seasons Residences. Recent awards and citations include: Best Retail Interior Design (Mitsukoshi BGC) Regional Winner (Best in Asia); Best Mixed-Use Developer (Philippines) by PropertyGuru Asia Property Awards; and Best Residential High-Rise Development (Grand Hyatt Manila Residences South Tower) by the Asia Pacific Property Awards.
These achievements highlight Federal Land’s commitment to excellence in property development.
Building a modern Philippines
Orix Corp., through its partnership with the GT Capital group, entered the Philippines in 1977, attracted by the country’s dynamic economy, burgeoning population (now approaching 114 million) and youthful demographics with an average age of 25, therefore fostering a vibrant labor force.
Since expanding the leasing joint venture in 2000, now known as Orix Metro, the partnership has grown to include 98 branches nationwide. Orix Metro supports a wide range of businesses from rural micro, small and midsize enterprises to urban enterprises, financing assets such as cars, office equipment and medical devices.
This relationship has evolved into a strategic alliance, enabling Orix Corp. to diversify into new sectors such as infrastructure and property development. Projects like the Grand Hyatt and Grand Midori condominiums, in partnership with Federal Land, highlight Orix’s role in shaping the modern Philippine property development sector. This partnership underscores Orix and GT Capital’s shared commitment to advancing the Philippines’ economic landscape through innovation and sustainable development.
International collaborations
GT Capital expands its global reach through strategic collaborations with other prestigious brands such as the United States’ Grand Hyatt Hotels and Hong Kong’s Marco Polo Hotels, enriching its presence in the upscale hospitality sector. These partnerships complement GT Capital’s diverse portfolio, which includes alliances with France’s AXA S.A. in life insurance and general insurance, and the Philippines’ Metro Pacific Investments Corp. in infrastructure development.
GT Capital expands its global reach through strategic collaborations with other prestigious brands such as the United States’ Grand Hyatt Hotels and Hong Kong’s Marco Polo Hotels, enriching its presence in the upscale hospitality sector.
In 2023, First Pacific Co., alongside GT Capital and a consortium including Mitsui, successfully privatized Metro Pacific Investments Corp. MPIC is a leading infrastructure conglomerate in the Philippines with investments in water utilities, toll roads, electricity distribution, hospital operations, light rail and agriculture.
Strategic growth
In 2023, GT Capital achieved a record-breaking financial performance. The conglomerate attained robust growth in its core net income during the year, reaching ¥79 billion, marking an 82% increase from ¥43 billion in 2022. Consolidated revenues also grew significantly to ¥857 billion from ¥670 billion the previous year, up 25%. Earnings per share rose to ¥360 from ¥225, and book value per share increased to ¥2,844 from ¥2,414 in 2022, demonstrating 18% growth.
“The stellar performance of GT Capital in 2023 can be attributed to a combination of factors, including the substantial growth in income of Metrobank, robust auto sales from TMP, the successful launch of new projects and joint ventures by Federal Land and the significant contributions from AXA Philippines and Metro Pacific Investments Corp.,” GT Capital Chairman Francisco C. Sebastian said.
President Carmelo Maria Luza Bautista outlined GT Capital’s strategic focus for 2024, emphasizing: “GT Capital is setting the stage for a strategic 2024, with a keen focus on expanding and enhancing its core sectors, namely property, automotive and banking, while also exploring opportunities in new business segments such as health care and renewable energy. These include the pursuit of synergistic opportunities, the expansion of our value chain in established sectors and investments in new growth sectors.”
Regarding environmental, social and governance initiatives, Bautista stated: “In 2023, GT Capital made significant strides in its ESG initiatives, demonstrating a strong commitment to sustainable practices and governance throughout the year. The company’s ESG ratings have seen notable improvement over the past five years, with 2023 marking a year of substantial achievements.”
In 2023, GT Capital made significant strides in its ESG initiatives, demonstrating a strong commitment to sustainable practices and governance throughout the year.
Carmelo Maria Luza Bautista, President of GT Capital
GT Capital was recognized for exemplary corporate governance practices, receiving four Golden Arrows from the Institute of Corporate Directors from the 2023 Golden Arrow Awards. Additionally, GT Capital received an upgrade in its ESG risk rating from MSCI, moving from BBB to A.
Summarizing the strategic plans, Bautista said, “This strategic allocation of resources, coupled with our exploratory initiatives in new areas with new partnerships, reflects GT Capital’s unwavering dedication to achieving its strategic objectives.”
“As we move forward into 2024 and beyond, rest assured that our dedication to serving as a premier conglomerate, devoted to nation-building and delivering superior products and services to the Filipino people, will remain at the core of our endeavors,” Sebastian concluded.
