Huwebes, Pebrero 16, 2012

Rise to the Top

Now a preferred business hub, Cebu has come a long way from the day Portuguese explorer Ferdinand Magellan set foot on the island. Even before the Spanish came to the so-called Queen City of the South, Cebu was already a bustling trading port, where Chinese traders parked their wares in exchange for honey, wood, gold, and spices.

Today, the presence of various developments in the city have practically made Cebu synonymous with business. Gordon Joseph, Cebu Business Club president, credits much of Cebu's success to a strong entrepreneurial spirit.

"Cebuanos have remained relatively self-sufficient and have long understood that the national government's focus has never been south of Luzon," said Mr. Joseph in an email. "Cebuanos have had decades, if not centuries, to carve out their own business and political destinies."

Cebu's foreign direct investment (FDI) strategy, he also said, was simple. "Cebu created an FDI product, such as export processing zones and tourism, out of nothing, almost out of sheer bravura and confidence—another Cebuano trait that has worked to Cebu's advantage."

Mr. Joseph credits Joel Yu, an outsourcing specialist and one of the architects of the Cebu export processing zones, as one of the main men who put Cebu on the map by setting up the necessary infrastructure, through a well-managed Cebu Investments Promotions Center. "He is the right man for the job," said Mr. Joseph.

The city's growth as a thriving business center has also banked on tourism, perhaps Cebu's biggest draw. Marketing its educated workforce and upgrading its airport to international status has also done wonders for the Cebu economy.

"[The strategy's] message was that it was more fun to do business in Cebu," said Mr. Joseph, adding that tourism is a low-hanging fruit that has a huge impact on both the local and national economies. "The strategy worked, and Cebu boomed almost overnight."

Several industries—real estate, business process outsourcing, shipping, furniture, light manufacturing, and knowledge process outsourcing—have since found a home in perhaps the Philippines' fastest-growing metropolis. Mr. Joseph said that the city must continue to focus on these industries.

Despite its successes, though, Cebu is still riddled with problems that every emerging city has to deal with as it grows. The lack of a comprehensive database, for one, undermines Cebu's potential to be more attractive as a business destination to investors. At a Sun.Star Economic Forum held in 2010, Cebu leaders pointed out that while government agencies like the Department of Trade and Industry pool data per region, there is still a need to build a one-stop source that focuses on the economy of the Cebu province itself.


A database would provide the necessary numbers—such as GDP—that local and foreign investors need to decide whether Cebu is a good destination for their businesses. By listing only registered businesses in the city, it would also help both companies and customers avoid fly-by-night firms.

There have been talks of putting up a Cebu Information Bureau with the help of government arms such as the National Statistics Office and the National Economic Development Authority, but the project seems to be put on hold for now.

Cebu's infrastructure itself also has to keep up with the city's growth. "Cebu must sustain and revive its vision and seriously plan for its future," said Mr. Joseph. "We must keep the momentum going and remember that there is competition."

A master plan for turning the province into a "smart city" called Mega Cebu is in the works. A newly-formed Metro Cebu Development Coordinating Board (MCDCB), chaired by Governor Gwen Garcia with Cebu City Mayor Michael Rama and Bobby Aboitiz of the Ramon Aboitiz Foundation—will be in charge of seeing to this goal.

The mayors of the 13 LGUs involved are also part of the board. The private sector, meanwhile, is represented by members of the Cebu Chamber of Commerce, the Mandaue Chamber of Commerce, the Filipino-Chinese Chamber of Commerce, the Cebu Leads Foundation, and the Cebu Business Club.

"This is the first time in the history of Cebu that the public and private sectors have coalesced to bring Cebu back on track to sustainable and inclusive growth," said Mr. Joseph, himself an MCDCB member.

While the brand of personality-oriented politics in the country may make cooperation among different areas difficult, the goal of a more cohesive Cebu seems to be not that far off. "Turf war politics in Cebu can be counter-productive, but we are very confident this initiative will succeed in uniting all major political factions toward a common goal: a renewed, master-planned, modern Mega Cebu composed of 13 independent, but cooperating LGUs," said Mr. Joseph.

The business club president has the same optimism for the future of Cebu as a growing business destination. "[Cebu may not surpass Manila] in terms of size, but [it can] in terms of sustainability, efficiency, and productivity," he said. "These will in turn feed toward the continuing success of its niche industries."

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