GENERAL SANTOS CITY — Economic boom is expected to sweep this city, dubbed the “Tuna Capital of the Philippines,” with the entry of listed SM Prime Holdings, Inc., the Philippines’ largest shopping mall operator.

Mayor Pedro B. Acharon, Jr. said the Henry Sy-led firm has readjusted its engineering work plan to be submitted to the city government for clearances needed to start construction of a shopping mall.

“We’ve told them that we are putting traffic lights, and they will incorporate our traffic plan to make their investment of at least P1 billion attractive to the public,” Mr. Acharon told BusinessWorld on Tuesday.

The SM City General Santos Mall is expected to rise next year.

SM Prime’s entry will further boost the competitiveness of the city, said Mr. Acharon, citing the opening last year of a mall owned by rival Robinsons Land Corp. of the Gokongwei family.

Jeffrey C. Lim, chief finance officer of SM Prime, said recently the company is investing P12 billion this year to put up 11 new shopping malls until 2011.

At the end of the year, SM will have 41 local malls and four malls in China. “We will also start to construct malls that will open in 2011,” Mr. Lim said. Next year, SM malls will rise in General Santos, Commonwealth in Quezon City, Lanang in Davao City, La Consolacion in the town of Liloan in Cebu, and in Chongqing in China.

Mr. Acharon said SM Prime has signed a lease with the Salazar family for the eight-hectare property that will host the new mall.

Pilar T. Afuang, executive director of the local business chamber, echoed the sentiments of the city mayor, saying the presence of shopping complexes is another indication of the city’s economic viability.

The opening of the SM mall next year will bring to four the number of big shopping malls in the city. Aside from Robinsons Place-General Santos, which began operations last year at a reported investment of P2 billion, the two other malls operating in this city are Gaisano Mall and KCC Mall.