Prepping Up: Treñas Leads Discussion on NIR Separation, Impact

Iloilo City Mayor Jerry P. Treñas initiated a multi-sectoral meeting recently to discuss the separation of Negros Island Region (NIR) and its economic impact on Western Visayas.

Joining him were Guimaras Governor JC Rahman Nava, representatives from Metro Iloilo Guimaras Economic Development Council (MIGEDC), various regional government offices, the business sector, and City Hall department heads.

“I want us all to know how it will impact business and government transactions, among others. I think this is going to be ongoing progress for all of us. Let us start to see how it will impact all of us so that we can be prepared when it happens…so that we can also make some interventions, if necessary,” Treñas said.

Republic Act 12000 or An Act Establishing the NIR was signed into law on June 13, 2024, creating a new region composed of Negros Occidental and Bacolod City, and the provinces of Negros Oriental and Siquijor. This will lead to the establishment of their respective regional offices.

Among the potential effects on WV is the decline in the volume of transactions from clients in Negros Occidental and Bacolod City who mostly go to Iloilo City, where most of the regional offices are located. This will possibly result in a reduction in passenger and fast craft movements between Negros and Iloilo; and a decrease in the daytime population, demand for goods and services, and sales of local business establishments.

Based on the 2022 data of the Philippine Statistics Authority (PSA), Local Economic Development and Investment Promotion Office (LEDIPO) head Velma Lao said that in terms of economy, 40 percent of WV’s total Gross Domestic Product (GDP) will be reduced with the separation of Bacolod City and Negros Occidental.

However, citing a statement from PSA-6 statistical specialist Miguel Gallero, she emphasized that the exclusion of the two LGUs from the regional economic basket will have a huge effect not on the performance but rather on the inflation rate. “Ma-reduce lang sya but it doesn’t mean we will not perform. It will have an effect not on performance but on inflation. Manubo ang aton inflation rate,” said Lao adding that Negros and Bacolod City have a higher contribution to WV’s inflation rate.

Meantime, looking at 2021–2022 figures, Lao said the new WV maintains its position as the fastest-growing economy with a growth rate of 10.22, surpassing the region’s growth rate of 9.3 and the current growth rate of 9.26. Lao also cited Panay and Guimaras’ three major sectors, namely Agriculture Forestry and Fishery, Services, and Industry with the biggest shares of 63.97 percent, 61.59 percent, and 53.61 percent, respectively, in the region’s economy.

“If we do interventions with our respective offices, we can positively maintain the high growth rate of Panay and Guimaras even without Bacolod and Negros Occidental,” said Lao. For Iloilo City, among the recommendations is to enhance the tourism experience or activities (per time segment of the day); leverage the Iloilo River; and conduct economic activities along Calle Real to bring more foot traffic (coffee shops, night markets, gastro-exhibition activities, among others); and develop more tourism packages or products. There is also a need to intensify MICE activities and come up with in-migration-like programs for balikbayan or OFW returnees.

“What we are saying is for people to come, visit, stay, do business, and live in Iloilo and Guimaras,” said Lao. To note, Iloilo City’s GDP also grew by 9.6 percent in 2022 from 6.8 in 2021, with Services as the major industry with the highest share of the local economy at 87 percent.

Another recommendation is spatial expansion through reclamation projects for more businesses and investors; strengthening the manufacturing sector developing the export industry as a pull factor for labor, and building up the agri-aqua production to lessen dependency on NIR. Moreover, there is also a need for convergence of programs and initiatives among and between the national government and LGU to avoid duplication and gain impactful results.

“Mayor Trenas created an economic team so that we can assess our interventions and ensure that we will not duplicate the activities of other offices,” Lao added. Meanwhile, City Planning and Development Office head Ronald Cartagena suggested revisiting the importance of the MIGEDC as one strong local economic unit as an agent of growth for WV and the country.

“I think we have to revisit our specialized contribution to the MIGEDC. Sta. Barbara may focus on logistics and others on residential, and also Iloilo can maintain that trade and industry hub and Guimaras as tourism. I think we have to improve on our work on complementarity rather than compete,” said Cartagena. Engr. Fulbert Woo, president of the Philippine Chamber of Commerce and Industry (PCCI) Iloilo, is encouraging all local government units to check on the programs to support micro, small, and medium enterprises (MSMEs) since they are the future of businesses in their respective areas.

“Our LGUs, together with concerned government agencies like DTI and TESDA, can hopefully address the concerns of our MSMEs. Once we address those, I think makahatag siya more figures and more numbers to develop the growth of the MSMEs in Iloilo and Western Visayas,” said Woo. On the other hand, Governor Nava said Guimaras will focus and strengthen its efforts on agri-ecotourism and as a potential retirement hub.

Citing the old Guimaras Sugar Bulk Installation as the only trans-loading facility for sugar from Panay and Negros, Nava said that they still believe that Guimaras will have good seaport potential for the two big islands. “Hopefully, Guimaras will find its way as a logistics hub for the two big islands, with two special links (the bridges) that will be constructed eventually,” Nava said. (Iloilo City PIO)