Panay and the economy moved into a standstill. During World War II, Iloilo was controlled by several Japanese battalions. Japan's ultimate goal was to entrench itself deeply into the Philippines so that at the close of the war they could occupy it just as the Spanish and the Americans had years before. When Iloilo was liberated by Filipino and American forces from Japanese military occupation on March 25, 1945, the remnants of these battalions were held in Jaro Plaza as a makeshift detention facility. Post-war decline The war heavily damaged the infrastructure in Iloilo. However, the continuing conflict between the labor unions in the port area, declining sugar economy, and the deteriorating peace and order situation in the countryside, the exodus of Ilonggos to other cities, provinces/regions and islands that offered better opportunities and business. People were moving to other cities such as Bacolod, Cebu, and Manila that led to Iloilo's decline in economic importance in central Philippines. Rural agricultural areas continued to help the local economy. For years, because of this exodus of investors, Iloilo's economy progressed in a moderate pace. Change slowly came. First came the construction of the fishing port and a new international seaport. One by one, commercial business firms invested in Iloilo, spurring on the city to its eventual recovery. Iloilo became a highly urbanized city on December 22, 1979, by the virtue of Batas Pambansa Blg. 51. Corollary to this new status, its residents effectively lost their eligibility to vote for provincial officials. 21st century and economic boom After the opening of the new commercial and business center in Mandurriao district and with the construction of a national highway that traverses this area, big businesses like the SM Supermalls, SM Prime Holdings, Megaworld Corporation, Gaisano Capital, Robinsons Land, Ayala Corporation, and Filinvest poured in huge investments in the city, giving impetus and catalyst toward future progress. Geography Iloilo City is located in the southern shores of Panay Island. The city faces Iloilo Strait and Guimaras Island across it, making it a natural harbor and a safe anchorage for ships. It is bordered by the towns of Oton in the west, Pavia in the north and Leganes in the northeast. Just across the Iloilo Strait in its eastern and southern coastlines, are the towns of Buenavista and Jordan in the island-province of Guimaras . The city lies on a flat alluvial plain, reclaimed mostly from