Press Release
July 22, 2009

To promote growth in the technology industry and tap the rich biodiversity of the country
ANGARA PUSHES FOR STRONGER POLICIES ON BIO-TECH DEVELOPMENT

To promote the growth of bio-technology in the country, Sen. Edgardo J. Angara today urged the government to enact the Bioindustry Development Act of 2009 in order to harness the benefits of our highly rich and diverse natural resources.

"We need the appropriate policy environment to promote the bio-industry development. Biodiversity, our greatest resource, remains untapped. Industry-academe collaborations in technology development are few. Many policies encourage individual rather than multi-disciplinary achievements; biotechnology requires multi-disciplinary approach," lamented Angara who currently chairs the Congressional Commission on Science, Technology and Engineering.

According to this bill (SB 3140), the Philippine Bioindustry Research and Development Center will be established to ensure innovative and competitive bio-based technologies. It will hold contract research and provide technical services to the public, manage a bio-tech research fund to support off-site research and will be equipped with state-of-the-art facilities.

Sen. Angara added, "This is a strategic system that will enable start-up companies to progress in their initiatives through incentives to invest in bio-technology research by allowing the cost of research and development and the prices of shares of stocks in bio-tech companies tax-deductible."

The senator shares that established policies in countries like US, Canada, Australia, the EU, Singapore, Malaysia, China, India and Taiwan supports high quality research to rapidly develop research results into marketable products and services, and provide incentives for industries and start-up companies for developing new technologies.

To encourage participation in the operations and research and development and to share their achievements, the Bioindustry Development Act of 2009 provides that shareholders of local bio-tech companies can claim as tax credit the amount paid for their shares of the year. New shares issued by a bio-tech company to top executives and technology investors, in return for their knowledge and technology, will also be excluded from the amount of their collective income or corporate income tax.

Sen. Angara notes, "The present biotech-prospecting policy is biased against Filipino start-up companies and favors well-capitalized foreign investors. While we train scientists, the lack of employment leads them to other line of work or to seek in other countries. Large and competitive grants are provided for high-quality research; huge grants are provided for industry-public collaborations to expedite technology development. Guarantee funds for venture capital investing in biotechnology are provided; and science parks/bio-incubators were established to provide infrastructure, technical, administrative, marketing and legal support for start-up companies."

Under this legislation, a Biotechnology Guarantee Fund will be provided for venture capital invested in bio-tech companies; a five-year tax-deductibility for research and development agencies within the country; and incentives for bio-tech companies registered as Barangay Micro Business Enterprises (BMBEs), with the Philippine Economic Zone Authority (PEZA) or with the Board of Investments (BOI).

Investment in medical biotechnology alone at a global scale is estimated at US$200 billion, whereas that in agricultural biotechnology was only worth US$67 billion in 2003. But recently the convergence of both industries has produced pharmaceuticals through genetically engineered plants and herbal medicines. This integration also progresses to energy production and the enzyme-based processing of agri-produce and by-products to produce biofuels, plastics and other products. Collectively, this will eventually make the biggest sector of the biotechnology industry.

"Biotechnology has developed safer, more effective pharmaceuticals, less capital-intensive crops and less polluting industrial and agricultural systems. The new discoveries in biology and the development in biotechnology can potentially address the concerns on climate change, non-renewable energy sources, dwindling freshwater supply, increasing population and environmental protection," he said.

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