It was later transferred to Palanog near the mouth of Lumbang River to make it more accessible to Bicol mainland and to the islands of Burias and Ticao.

Sometime after General Emilio Aguinaldo declared Philippine independence at Kawit, Cavite, he issued a military order to overthrow the Spanish Government in Masbate and the Visayas.

[6] During World War II, the first elements of Japanese troops from Legazpi arrive on Masbate province at the dawn of January 7, 1942, on several places without any opposition as the forces stationed there retreated to Panay Island.

In the mid-1990s, the idea of converting the municipality into a city was pushed by 2nd District House Representative Luz Cleta Reyes Bakunawa.

Her successor, Congressman Emilio Espinosa Jr. together with the Municipal Mayor Juan P. Sanchez Sr. and some local officials and employees took over where she left off.

On August 16, 2000, President Joseph Estrada signed Republic Act 8807 converting the Municipality of Masbate into a component city.

It is noted for its well-protected seaport, with Ticao Island acting as barrier against the effects of inclement weather from the north-east.

Being located at the central part of the Philippine archipelago, the city serves as Bicol Region's gateway to the Visayas and Mindanao.

Other traded products such as dried fish, crabs, prawn, bangus, livestock, and rice are coming from the neighboring or nearby municipalities on the island.

The city has existing trading relations with Manila, Iligan, Lucena, Daet, Legazpi, Naga, Sorsogon, Panay, Negros, Cebu, Bohol, Ormoc, Calbayog and Tacloban.

Banco de Oro or BDO which is the country's largest bank in terms of assets open its first branch in the entire province in the city.

From there, RORO ferry and fastcraft take about two hours and fifteen minutes or motorized boat for a three-hour ride to the Port of Masbate.

Masbate can also be reached through the sea on board in a luxury shipping lines from the Port of Manila, taking about 16 to 18 hours.