On September 13th, the House of Representatives of the Congress of the Philippines approved, on its second reading, a bill for the development of Creative Industries in the Philippines (Creative Industries Development Act). The proposal is part of a set of measures aimed at helping the country recover from the economic issues resulting from the Covid-19 pandemic and, in this context, aims to provide new opportunities for businesses and workers in one of the sectors most affected by the health crisis that began in March 2020.
According to a 2020 report on the labor market by the International Labor Organization (I.L.O.), the arts and entertainment sector is considered a “high-risk sector,” given that the creative industry has been classified among those with lower chances of remaining operational due to health restrictions and is experiencing a significant decrease in demand as a result of the pandemic. In this scenario, the new Creative Industries Law in the Philippines will boost the growth of a sector that already contributes over 7% to the country’s GDP.
Specifically, it envisions the creation of a Creative Industries Development Council in the Philippines, as well as the formulation of a Development Plan that will determine the economic objectives and performance indicators of companies, market expansion modalities at national and international levels, financial assistance programs, investment plans, and loan programs and guarantees for MSMEs; and will define strategies to enable creative industries to develop greater capacity and access to national and international markets to maximize their potential, all according to a development timeline staggered over three, six, and ten years.
Drafted and sponsored mainly by the Commission on Creative Industry and Performing Arts of the 4th District of Pangasinan, the text was also supported by various business groups, such as the American Chamber of Commerce in the Philippines, which aims for the Philippines to become the first “creative economy” in Southeast Asia by 2030. In the coming weeks, it will undergo another reading, this time by the Senate, and if approved, will be finally signed by President Rodrigo Roa Duterte for subsequent enforcement.
The text of the Creative Industries bill in the Philippines can be found at: https://www.congress.gov.ph/legisdocs/third_18/HBT10107.pdf
Sara Boffo
Legal Trainee
AVCO Legal
madrid@avco.legal
