Philippine Animation Industry Development Act

Senate Offire of the sorcerary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES 26 JAN 27 P2:01 First Regular Session SENATE RECEIVED BY: S. No. 1703 Introduced by Senator MARK A. VILLAR AN ACT ESTABLISHING STATE-OF-THE-ART ANIMATION FACILITIES AND INFRASTRUCTURE IN THE PHILIPPINES, TO PROMOTE A COMPETITIVE ENVIRONMENT FOR THE ANIMATION INDUSTRY, AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE Animated content is consumed worldwide across various platforms by captive audiences, encouraging a greater appreciation for cultural heritage and creativity. Consequently, the animation industry predicts an increase in its market size from USD 373.23 Billion in 2024 to about USD 631.52 Billion by 2034.1 But while we take pride in our exceptional pool of talented artists and animators, we can better support them by providing sufficient funding, competitive and advanced animation production facilities, incentives, training centers, incubation hubs, and studios. Most local animation companies struggle to invest in advanced software tools that allow them to produce cutting-edge animation. Due to limited resources, outdated software, and inadequate facilities, local Filipino animators face a trade-off between crafting quality work and meeting budget constraints. Furthermore, only a few studios are present in the country, and animation training programs are limited. As a result, the industry's productivity is compromised, while animators suffer from skill gaps. 1 Precedence Research, Animation Production Market Size, Share and Trends 2025 to 2034 <https://www.precedenceresearch.com/animation-production-market>.

According to the Animation Council of the Philippines Inc. (ACPI), the animation industry in the Philippines could increase by 12 to 15% every year with support from the government.? Notably, the Philippine 3D animation market is expected to grow rapidly at a compound annual growth rate of 15.3% from 2025 to 2031.3 The Philippines can be a recognized leader in the animation industry in the Asia-Pacific region. However, this goal cannot be realized without investments in state- of-the-art animation facilities and infrastructure. This bill will therefore showcase the talent and creativity of Filipinos on a global scale by creating specialized animation training programs, devising animation development plans, and funding technological resources for the country. Ultimately, this bill will help attract investments, enhance local talent, promote more jobs, and help the Philippines become a competitive force in the animation industry. In view of the foregoing, the approval of this bill is earnestly sought. MARK A. VILLAR ROC 2 Jenina P. Ibañez, Business World, Animation industry poised for transition from outsourcing to original content <https://www.bworldonline.com/special-reports/2020/01/20/276018/animation-industry- poised-for-transition-from-outsourcing-to-original -content/>: 6w Research, Philippines 3D Animation Market (2025-2031): Outlook, Value, Trends, Growth, Analysis, Revenue, Share, Size, Industry, Companies & Forecast <https://www.6wresearch.com/industry- report/philippines-3d-animation-market>.

Senate Office of the saucertarp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 26 JAN 27 P2:01 SENATE RECEIVED BY: S. No. 1703 Introduced by Senator MARK A. VILLAR AN ACT ESTABLISHING STATE-OF-THE-ART ANIMATION FACILITIES AND INFRASTRUCTURE IN THE PHILIPPINES, TO PROMOTE A COMPETITIVE ENVIRONMENT FOR THE ANIMATION INDUSTRY, AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Philippine Animation

2 Industry Development Act"

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

encourage creativity, innovation, and competitiveness in the animation industry, by establishing state-of-the-art facilities and infrastructure, creating a conducive environment for the growth and sustainability of animation studios in the country, and 7 incentivizing the production of original content.

Sec. 3. Animation Industry Development Council. - An Animation Industry

9 Development Council (AIDC) is hereby created and shall be attached to the Department of Trade and Industry (DTI), composed of representatives from relevant government agencies, as well as representatives from private animation studios, professional organizations, and educational institutions.

Sec. 4. Roles and Responsibilities of the AIDC - The AIDC shall have the

following powers, roles, and responsibilities: (a) Formulate a comprehensive and integrated national animation development plan;

(b) Identify strategic locations for the establishment of animation hubs throughout the country; (c) Oversee the construction and management of state-of-the-art animation facilities and infrastructure; (d) Develop training programs and standards for the animation industry; (e) Facilitate the collaboration between the animation industry and educational institutions; (f) Establish mechanisms for research and development that foster innovation in the sector; (g) Implement an incentive program for animation studios and professionals; (h) Promote the animation industry through domestic and international marketing initiatives; (i) Coordinate with relevant government agencies for the enforcement of laws affecting the animation industry; (i) Perform such other functions as may be necessary to achieve the objectives of this Act.

Sec. 5. State-of-the-Art Animation Facilities and Infrastructure. - The AIDC shall

ensure the establishment, development, and maintenance of state-of-the-art animation facilities and infrastructure in strategic locations nationwide, which shall include but not be limited to: (a) Advanced digital animation production facilities; (b) Sound stages and recording studios; (c) High-speed internet and data storage facilities; (d) Cutting-edge software and hardware resources; (e) Post-production houses; (f) Training centers and incubation spaces.

Sec. 6. Incentives and Support for Animation Industry Stakeholders. - The AIDC

shall develop an incentive program for both local and foreign animation studios, as well as professionals who contribute to the growth of the Philippine animation industry.

Sec. 7. Animation Education and Training. - The AIDC, in coordination with the

2 Department of Education (DepEd) and the Commission on Higher Education (CHED), 3 shall create a curriculum for animation and related disciplines in primary, secondary, and tertiary education, as well as specialized training programs in partnership with the Technical Education and Skills Development Authority (TESDA).

Sec. 8. Funding. - An initial amount of One Billion Pesos (Php1,000,000,000.00)

is hereby appropriated for the implementation of this Act, subject to subsequent appropriations, grants, donations, and other forms of assistance provided subsequently or other funding sources.

Sec. 9. Implementing Rules and Regulations. - Within ninety (90) days from

11 the effectivity of this Act, the DTI, in collaboration with other concerned agencies, shall promulgate the necessary rules and regulations for the effective implementation of this Act.

Sec. 10. Separability Cause. - Any portion or provisions of this Act that may be

declared unconstitutional or invalid and shall not have the effect of nullifying other 16 portions or provisions hereof as long as such remaining portions or provisions can still 17 subsist and be given effect in their entirety.

Sec. 11. Repealing Clause. - All laws, presidential decrees, executive orders,

memoranda, circulars, and other issuances, or parts thereof, which are inconsistent with the Act, are hereby repealed or modified accordingly.

Sec. 12. Effectivity Clause. -This Act shall be take effect fifteen (15) days after

its publication in at least two (2) newspapers of general circulation. Approved,