San Miguel, the renowned food and beverage conglomerate led by chairman Ramon Ang, is undergoing a transformation into an infrastructure giant. The company has won multiple bids for airports, toll roads, and power plants, with a focus on nation-building projects to boost economic growth in the Philippines. Despite a staggering debt load of 1.5 trillion pesos, Ang remains confident in the company’s financial capacity to pursue these projects, supported by a strong balance sheet and comfortable lenders.
The shift towards infrastructure investments is gradually adding to San Miguel’s top-line, with an ambitious capital expenditure plan of 1.4 trillion pesos over the next five years. This pivot marks a significant opportunity for Ang to cement his legacy by reengineering the company and remaking the Philippines from the ground up. The goal is to attract overseas investors and tourists, ultimately benefiting San Miguel’s legacy food and beverages business. The company’s expansion into essential national needs such as electricity, transportation, and modern airports aims to address longstanding infrastructure gaps in the country.
San Miguel’s plans for modernizing power plants and developing a new LNG facility in Batangas province align with efforts to provide cheaper and cleaner energy in the Philippines. The company is also set to build 1,100 kilometers of new toll roads to improve connectivity within the country and create synergies with its other businesses. Moreover, the proposed merger with Metro Pacific Tollways could extend San Miguel’s operations across Indonesia, the Philippines, and Vietnam, enhancing regional infrastructure networks.
One of the key projects for San Miguel is the upgrade and operation of Manila’s Ninoy Aquino International Airport, in addition to the construction of the new Bulacan airport. These initiatives aim to address the country’s underwhelming tourism numbers and create better transportation facilities for both locals and tourists. By investing in infrastructure, San Miguel is strategically positioning itself for long-term growth and profitability, despite investor concerns about its debt levels and foreign exchange losses impacting net income.
Despite challenges, Ang remains focused on expanding San Miguel’s infrastructure footprint and increasing revenue from these projects. With a goal to double Ebitda by 2028 and deliver double-digit revenue and earnings growth, Ang is confident in the company’s ability to generate substantial returns. Beyond business, his initiatives extend to environmental stewardship, with efforts to clean up polluted rivers in Metro Manila and neighboring provinces. Ultimately, San Miguel’s focus remains on driving economic growth, supporting local industries, and creating job opportunities for the community.
