Legarda proposes the creation of P1 billion fund fot IT small and medium companies

By Jason de Asis


SENATE OFFICE, Manila, November 14, 2010-Senator Loren Legarda proposes the creation of an IT venture capital fund for small to medium-scale IT start-up companies in order to encourage more Filipinos to venture into the very dynamic industry of information technology and the need to widen the participation of the poor in the IT sector, particularly through entrepreneurial activities in which she proposed P1 billion funds to be administered by the Department of Science and Technology (DOST).


Legarda filed Senate Bill No. 1407 an Act to accelerate the development of information technology start-up companies by providing an IT venture capital fund which aims to assist entrepreneurs and likewise provide incentives for the proliferation of IT-related businesses through-out the country, thereby increasing connectivity, particularly in underserved areas.


This measure will allow the IT industry to penetrate even the grass roots level, thereby making IT services accessible to the marginalized poor.


The Philippines ranked 47th out of 66 countries in the Information Technology (IT) Industry Competitiveness Index in a study conducted by the Economist Intelligence Unit in the year 2009 and the same study reported that the Philippines has a generally favorable business environment, there were weaknesses and inefficiencies in the IT sector that need to be addressed in order to improve its standing.


The Senator recognized the IT industry as the RP’s productive business and efforts can be exerted to boost the country’s competitiveness in the global sector. It included the expansion and rehabilitation of information and communications technology infrastructure, promotion of research and development, and the development of human resources.


Legarda concluded that the enactment of this significant piece of legislation is in line with the government’s objective to fast-track the country’s economic development and in the global arena competitiveness. (Jason de Asis)