NIR separation may ease inflation in Western Visayas

By Mariela Angella Oladive

The separation of the newly established Negros Island Region (NIR) from Western Visayas could help lower inflation numbers.

During a recent multi-sectoral meeting, Treñas emphasized the need for preparedness and potential interventions to mitigate negative impacts on the local economy.

“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 stated.

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

The creation of NIR, through Republic Act 12000 signed into law on June 13, 2024, forms a new region comprising Negros Occidental, Bacolod City, Negros Oriental, and Siquijor.

This change is expected to result in the establishment of respective regional offices within NIR, which could lead to a significant decline in the volume of transactions for Iloilo City, as clients from Negros Occidental and Bacolod City will no longer need to travel to Iloilo for regional services.

Velma Lao, head of the Iloilo City Local Economic Development and Investment Promotion Office (LEDIPO), highlighted the potential economic impact based on 2022 data from the Philippine Statistics Authority (PSA).

Lao indicated that the separation could reduce Western Visayas’ Gross Domestic Product (GDP) by 40 percent due to the exclusion of Bacolod City and Negros Occidental.

However, she emphasized that the reduction would not necessarily impact the region’s economic performance but could lower the inflation rate, as these areas have higher contributions to the current rate.

During a press conference on May 2024 Western Visayas inflation, Ma. Goretti Novilla, Officer-in-Charge of the Iloilo Provincial Statistical Office, noted that Negros Occidental and Iloilo significantly impact regional data.

In 2022, Western Visayas experienced the highest economic growth rate among all Philippine regions at 9.3 percent, exceeding the national average of 7.2 percent.

The region’s economy was valued at P955 billion, with Negros Occidental contributing the largest share at 25.8 percent, followed by Iloilo Province at 21.6 percent, Iloilo City at 15.2 percent, and Bacolod City at 13.9 percent.

Despite the changes, Lao pointed out that Western Visayas remains the fastest-growing economy, with a growth rate of 10.22 percent from 2021 to 2022, surpassing the previous year’s rate of 9.3 percent and the current rate of 9.26.

She noted that Panay and Guimaras’ major sectors—Agriculture, Forestry, and Fishery, Services, and Industry—remain strong contributors to the region’s economy with the biggest shares of 63.97 percent, 61.59 percent, and 53.61 percent, respectively.

“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,” Lao said.

Recommendations for Iloilo City include enhancing tourism experiences and activities, leveraging the Iloilo River, conducting economic activities along Calle Real to increase foot traffic, and developing more tourism packages.

Additionally, intensifying Meetings, Incentives, Conferences, and Exhibitions (MICE) activities and creating programs for returning Overseas Filipino Workers (OFWs) were suggested.

To sustain economic growth, the city is also considering spatial expansion through reclamation projects, strengthening the manufacturing sector, developing the export industry, and boosting agri-aqua production to reduce dependency on NIR.

Treñas formed an economic team to assess interventions and ensure coordination among various offices to avoid duplication of efforts and maximize impact.

City Planning and Development Office head Ronald Cartagena suggested revisiting the importance of MIGEDC as a key economic unit, emphasizing the need for complementarity among local government units (LGUs) instead of competition.

Engr. Fulbert Woo, president of the Philippine Chamber of Commerce and Industry (PCCI) Iloilo, called on LGUs to support micro, small, and medium enterprises (MSMEs), highlighting their critical role in local economic growth.

“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 it can give more figures and numbers to develop the growth of the MSMEs in Iloilo and in Western Visayas,” Woo said.

Meanwhile, Governor Nava shared plans to focus on agri-ecotourism and develop the island as a potential retirement hub.

Nava pointed out that the old Guimaras Sugar Bulk Installation remains the only transloading facility for sugar from Panay and Negros, underscoring the island’s promising seaport potential for both 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.