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Republic of the Philippines IS pare 09 SEP
HOUSE OF REPRESENTATIVES + Tie JD:
Quezon City, Metro Manila &. BY

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TWENTIETH CONGRESS i)
First Regular Session

House Bill No._ 4446

Introduced by Representative KATRINA REIKO CHUA - TAI
1 District, Zamboanga City

EXPLANATORY NOTE

‘The Philippines, celebrated as the “Pearl of the Orient,” possesses a unique advantage in
global pearl production due to its rich natural resources, especially its world-renowned
golden South Sea pearls. As a national treasure and economic asset, the pearl industry
represents a key opportunity for sustainable growth, if developed with vision and care.
The most prized pearls are harvested from Pinctada maxima oysters. native to Palawan
and Zamboanga, making the country a potential global leader in both quality and
environmental best practices.

Major finds, such as the Pearl of Lao Tzu (1939) and the world’s largest natural pear!
(2015), underscore the country’s global reputation. Local communities, notably Badjao
families, sustain the industry, which has grown from $9 million in 1991 to $15 million in
2015, thereby boosting local economies.

Despite these successes, the industry faces several significant challenges that hinder its
long-term development. These include poor farming practices, inadequate processing
methods, disease outbreaks, and rising stock losses. The global pearl supply chain has
also been disrupted by the COVID-19 pandemic, resulting in logistical challenges and a
sharp increase in pearl prices, which has created a significant supply-demand gap not
seen in over two decades.

In response to these challenges, there is an urgent need for sustainable marine pearl
farming practices, Studies indicate that regenerative pearl farming can offer considerable
environmental benefits. For example, a ton of farmed pearl oysters removes 10 kg of
nitrogen, 0.5 kg of phosphorus, and 0.7 kg of heavy metals from the water. Additionally,
pear! oysters filter tens of liters of water per hour, improving water quality and providing
essential marine habitats. The carbon captured in pearls and oyster shells, which are later
used for mother-of-pearl products, also helps mitigate climate change.

Sustainable marine pearl farming offers both ecological and economic benefits. In the
Philippines, with its diverse marine ecosystems, local pearl farmers can produce high-
quality pearls while contributing to the conservation of these vital environments.



However, the industry remains vulnerable due to limited government support, outdated
technology, and insufficient funding for sustainable development.

To address these issues, this bill proposes the establishment of the Pearl Industry Support
and Development Program (PISDP). The objectives of the program are to promote
sustainable pearl farming practices, increase productivity, enhance quality standards, and
improve the global competitiveness of Philippine pearls. Additionally, it aims to provide
systematic support, training, and resources for local pearl farmers, as well as encourage
investment in modern technology relevant to the industry. Additionally, the bill proposes
formally integrating pearl farming into the Department of Agriculture's Shellfish
Aquaculture for Rural Advancement and Progress (SARAP), thereby establishing its
important role in sustainably managing the country's aquatic resources.

In sum, this bill seeks to secure the Philippines' future as a global leader in sustainable
pearl production. By advancing eco-friendly farming, supporting local producers,
increasing output and tourism, creating new jobs, and preserving natural resources, the
bill presents a strategic framework to realize both economic and environmental benefits
for the nation, Through this approach, the Philippines’ reputation as the Pearl of the
Orient can be sustained and strengthened for generations to come.

IN VIEW OF THE FOREGOING, immediate passage of this

is earnestly sought.

KATRINA REIKO CHUA- TAL


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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bill No. 44 46

Introduced by Representative KATRINA REIKO CHUA - TAI
1 District, Zamboanga City

AN ACT
STRENGTHENING THE PHILIPPINE PEARL INDUSTRY AND PROMOTING
SUSTAINABLE PEARL FARMING AND TOURISM, AND FOR OTHER PURPOSES

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 “Sustainable Pearl Industry
Development Act.”

SECTION 2. Declaration of Policy. - \t is hereby declared the policy of the State to:
(1) promote sustainable development of the pearl industry by improving productivity,
diversifying products, and generating employment; (2) ensure the welfare of local pearl
farmers; (3) conserve marine resources; and (4) recognize pearl farming as an essential part of
shellfish aquaculture production and eco-tourism development.

For this purpose, the State aims to boost productivity, expand infrastructure, promote
research and development for product diversification, strengthen human resource development
and extension services, and extend financial assistance to micro and small pearl farmers, with
the overall policy objective of improving the competitiveness and sustainability of the pearl
farming sector.

SECTION 3. Definition of Terms. - As used in this Act, the following terms shall be
defined as follows:

“Pearl” shall refer to a natural or cultured gemstone formed within the soft tissue of a
mollusk, primarily composed of calcium carbonate, and valued for its luster, color, and
shape. Pearls may be used for jewelry, ornamentation, and other commercial or
industrial purposes.

“Marine Pearl Farming” shall refer to the cultivation of pearl-producing mollusks
under controlled or semi-controlled aquatic environments for the purpose of producing
natural or cultured pearls. This includes breeding, growing, harvesting, and post-harvest
processing.

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"Pearl Farmers" refers to individuals, cooperatives, or enterprises engaged in the
cultivation, maintenance, harvesting, post-harvest operations, and direct marketing of
pearls.

“Pearl Industry” shall refer to the entire value chain involved in the production,
processing, research, trade, export, marketing, and promotion of pearls and pearl-related
products, including ancillary services such as pearl farming, tourism, and aquaculture
support industries.

“Micro Pearl Farmer Enterprise” shall refer to a pearl farming enterprise with total
assets not exceeding 3,000,000 (excluding land), and employing less than 10 workers,
primarily operating at the community or household level, as defined and classified by
the Department of Trade and Industry (DTI) or relevant government agencies

"Small Pearl Farmer Enterprise" refers to a pearl farming enterprise with total assets
from P3,000,001 to P15,000,000 (excluding land), employing 10 to 99 workers, and
engaged in the commercial-scale cultivation, production, or trade of pearls, as classified
by DTI or appropriate agencies.

SECTION 4. Integration into the Shellfish Aquaculture for Rural Advancement and

Progress (SARAP). - Pearl farming shall be recognized as a component of aquaculture under
the Bureau of Fisheries and Aquatic Resources (BEAR) of the Department of Agriculture (DA).
‘The DA shall:

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a. Allocate appropriate funding for pearl aquaculture under the SARAP;

b. Extend the same types of support given to aquaculture sectors (c.g.
feed support, disease management, training, equipment); and

©. Include pearl farmers in national programs for capacity building,
insurance, and disaster resilience.

SECTION 5. Establishment of the Pearl Industry Support and Development

Program (PISDP). - There is hereby created the Pearl Industry Support and Development
Program (PISDP) under the Bureau of Fisheries and Aquatic Resources (BFAR), in
coordination with the DA-SARAP, Department of Environment and Natural Resources
(DENR), and Department of Tourism (DOT).

The PISDP shall initiate:

b. Product/Process Development and Improvement - The Department of Science
and Technology (DOST), through its Product/Process Development and
Improvement Program, shall establish the pearl farming product/process
development and improvement.

Pearl Farming Support Program — The Department of Agriculture (DA) and the
Department of Environment and Natural Resources (DENR) shall establish a
support program that includes, among others, credit access, pearl farming
management, and technical assistance services.

a. Credit access shall be made available through the Land Bank of the
Philippines (LBP) for the acquisition of oyster farming inputs, pearl
processing machinery, and implements necessary for the care of oysters
and the processing of pearls that will continuously produce pearls. hat
borrowers cannot be granted another loan until existing loans are fully
paid. Provided, further, that the lender shall have a lien on the pearls of
the pearl farmers who obtained the loan unit until the loan is fully paid:
Provided, finally, that borrowers cannot be granted another loan until

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1 b. Pearl Farming Sustainability, Management and Technical Assistance
2 Services - The DENR, DOST, DOLE, TESDA, State universities and
3 colleges (SUCs), and other concerned private and NGO's, shall
4 formulate and — implement a deployment program of pearl engineers
5 and technicians for the provision of pearl farming sustainability,
6 management, and technical assistance services to pearl
7 farmers.

8 C. Pearl Production Mechanization Program — Pearl Farmers shall be encouraged
9 and trained to utilize appropriate machinery and equipment necessary for the
10 efficient production of pearls. DA, DENR and/or the DOST, in partnership with
1 LGUs, shall:

12 1. Introduce and expand the use of machinery for the different stages of pearl
13 production; and

14 2. Formulate and implement a Pearl Production Mechanization Program at the
15 Barangay level.

16 To develop and deploy appropriate machinery and equipment, DA, DENR and/or
7 the DOST, through their respective research centers, shall formulate and conduct
18 research, development, and extension programs for mechanizing pearl production
19 and engineering.

20 SECTION 6. Research and Development. - DA, DENR, and DOST, in coordination

21 with relevant SUC’s, the government research and development institutions, and the private
22. sector, shall intensify research on pearl farming, analyses of pearl farming, and other methods
23. on the production of pearls, as well as other viable raw materials that can be derived from it.

24 SECTION 7. Extension Services. — Extension services that can be provided shall
25. include, but not be limited to, the provision of technical and mechanical assistance and advice,
26 the conduct of tests, safety of use, and production.

27 SECTION 8. Infrastructure Support. — To facilitate the production, transport,
28 marketing, and export of pearls and other products derived therefrom, and complement
29 productivity improvement measures in this Act, transport infrastructures, farm-to-market roads,
30. and other necessary infrastructures shall herewith be provided.

31 1. Transport Infrastructures - DA, DENR, Department of Agrarian Reform (DAR),
32 Department of Economy, Planning, and Development (DEPDev), Department of
33 Transportation (DOTr), Department of Public Works and Highways (DPWH), and
34 the Philippine Ports Authority (PPA), shall include in their annual Development
35 Plans and Priority Investment Programs the immediate construction and/or
36 improvement of new/existing transloading ports for coast-wide transport, sale or
37 export of pearls in key pearl producing areas.

38 SECTION 9. Support for Sustainable Aquatic Resource Farming. - In collaboration

39 with the DENR and relevant local government units (LGUs), the PISDP shall ensure that pearl
40. farming:

4 a. Adheres to marine conservation and ecological balance principles;
2 b. Is practiced in areas designated as sustainable aquaculture zones; and
B c. Uses eco-friendly farming techniques to minimize environmental impact.

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SECTION 10. Pear! Farming Capacity-Building and Training. - The Technical
Education and Skills Development Authority (TESDA), in cooperation with BFAR and state
universities and colleges (SUCs), shall develop training modules on:

a. Pearl farming techniques;
b. Marine conservation;

c. Aquaculture entrepreneurship;

d. Post-harvest management; and

e. Pearl farming tourism development and community-based ecotourism.

SECTION 11. Incentives for Local Pearl Farmers. - To encourage participation and
investment in pearl aquaculture, registered local pearl farmers shall be entitled to:

a. Priority access to government financing, grants, and insurance
programs;

b. Tax incentives and exemptions on imported farm inputs and
equipment;

c. Inclusion in national livelihood and rural development initiatives; and

d. Access to tourism promotion programs for pearl farms recognized as
tourism sites.

SECTION 12. Pearl Farming Tourism Promotion. - The Department of Tourism
(DOT), in coordination with BFAR, DA, and LGUs, shall:

a. Develop and promote pearl farming sites as ecotourism destinations;

b. Provide technical and marketing support for community-based pearl
tourism initiatives;

¢. Include pearl farming tourism in national and international tourism
campaigns; and

d. Ensure that tourism activities are aligned with ecological sustainability
and cultural preservation.

SECTION 10. Appropriations. - An initial amount of P500 million shall be
appropriated from the General Appropriations Act (GAA) for the first year of implementation
Thereafter, the necessary funds shall be included in the annual budget of the Department of
Agriculture and supported by the budget of the DENR, DPWH, DOT, and DOTr.

SECTION 11. Implementing Rules and Regulations. - Within ninety (90) days from
the effectivity of this Act, the Department of Agriculture, in coordination with BFAR, DENR,

DTI, TESDA, DOT, and other concemed agencies, shall promulgate the necessary rules and
regulations.

SECTION 12. Separability Clause. - \f any provision of this Act is declared
unconstitutional or invalid, the remaining provisions shall remain in full force and effect.

SECTION 13. Repealing Clause. - All laws, decrees, executive orders, or regulations
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 14. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,

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