From sugarcane to BPOs—investment opportunities abound in Bacolod

By Karen B. Bitagun

The half a million residents of Bacolod City, the “City of Smiles” of the Philippines, have many reasons to feel good about their city. Bacolod has already been inducted into the “Clean and Green Hall of Fame” after being cited by the national government as the country’s cleanest and greenest highly urbanized city in 1997, 1998, 2000, 2001, and 2002. In 2006, it was named the most child-friendly city in Western Visayas, and its local government was recognized for being the most business-friendly in the Visayas. The year before, Bacolod was chosen as the most competitive city in the midsize category by the Asian Institute of Management, while the city government was awarded the Apolinario Mabini Award for the “Local Government Unit of the Year” by the Philippine Foundation for the Rehabilitation of the Disabled because of its disabled-friendly services and projects. The city has also been hailed as one of the most livable cities in the country, boasting of a low crime incidence rate and a very high crime solution rate of 97%.

regional gateway

The city’s name comes from the Ilonggo word bakolod, which means “stone hill.” Located in the northwest of the Visayan province of Negros Occidental on the island of Negros, Bacolod City is accessible from Manila by air and water transportation. By air, it is just 55 minutes away from Manila. The airport is a mere 4 kilometers from the city proper, but before the end of the year it will be relocated to a new and bigger facility in Silay City, 24 kilometers north of Bacolod. By sea, Bacolod is an 18-hour boat ride from Manila and can be reached through the seaports in Banago, the Reclamation Area, and Pulupandan.

Bacolod, which covers an area of 161.45 square kilometers, is the gateway to the 12 component cities and 19 towns of Negros Occidental and to the neighboring province of Negros Oriental. It is bound on the north by Talisay City, on the east by the municipality of Murcia, on the south by Bago City, and on the west by the Guimaras Strait. Due to its strategic location, Bacolod has become the commercial, trade and industrial, agricultural, and even ICT hub of the region.

economic activity

Bacolod is alive with economic activity. Trade between the city and other Visayan towns and cities in the provinces of Negros Oriental, Iloilo, Bohol, and Cebu is thriving. Goods from Bacolod reach Camiguin Island, Cagayan de Oro, Dapitan, Dipolog, Surigao, and Zamboanga in Mindanao. Beyond domestic trade, products from Bacolod and the rest of the province are also transported to Manila and on to overseas markets.

Sugar is still the lifeblood of the province, which supplies more than half of the country’s sugar needs. In Bacolod, as of 2003, 7,216 hectares of the city’s 8,560 hectares of agricultural land were still planted to sugarcane. Meanwhile, 915 hectares were devoted to rice, 120 to assorted vegetables, 100 to coconut, 43 to banana, and 34 to corn.

The fresh and processed export products that Bacolod is most famous for include refined sugar, muscovado sugar, fresh green bananas, frozen black tiger prawns, squid and cuttlefish, pasteurized crabmeat, and canned sardines and milkfish. It has also been very successful in promoting its exports of furniture, home furnishings, and holiday decor made from wood, shell, and other indigenous materials, as well as garments.

business opportunities

For investors looking for areas of growth in the city, the emerging investment opportunities are in power generation, cutflowers and ornamentals, travel and support services, sports and ecotourism, mass housing, and ICT. The business process outsourcing industry, especially the call center sector, has already discovered the enormous potential of Bacolod.

With its six universities and colleges, the city produces about 5,000 graduates every year to fill and replenish the pool of potential agents. This—coupled with the cheap cost of living, stable infrastructure, and the local government’s continued efforts to improve the ease of doing business in the city—has drawn four call center firms into setting up shop here since the beginning of 2005. Focus Communications, IO Asia, Teletech, and Teleperformance all have operations in Bacolod, with the last being the largest with more than 500 seats. Convergys Philippines and other contact centers have expressed plans to set up in Bacolod as well. The city already has four Philippine Economic Zone Authority-accredited IT parks in anticipation of the requirements of the booming BPO industry.

Thus, as Bacolod City strives to keep its position as a one of the country’s leading economic centers down south, expect it not only to draw on its traditional agricultural products and staple industries, but also to ride on promising investment prospects grounded on the dynamic and competitive skills of the smiling people of the city.