Congress of the Philippines

05/22/2023 | Press release | Distributed by Public on 05/22/2023 04:07

House OKs bill institutionalizing ‘One Town, One Product’ program to boost MSMEs

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SOURCE: Press and Public Affairs Bureau

House OKs bill institutionalizing 'One Town, One Product' program to boost MSMEs
22 May 2023 06:04:21 PM

WITH an overwhelming 268 votes, the House of Representatives has approved on third and final reading a bill that will institutionalize the "One Town, One Product" (OTOP) program, the government's stimulus package for the promotion and development of micro, small, and medium enterprises (MSMEs) in the countryside through the use of indigenous raw materials and the
utilization of local skills and talents.

The chamber approved on House Bill (HB) No. 1171 which
would institutionalize the Department of Trade and Industry's (DTI)
OTOP program which started in 2014 to support MSMEs.

"This bill aims to support our MSMEs by providing a package of
assistance to develop new, innovative, and more complex products with
significant improvement in the areas of quality, product development,
design, packaging, standards compliance, marketability, production
capability, and brand development, among others," Speaker Ferdinand
Martin G. Romualdez said.

"With this proposed legislation, we also hope to assist rural
communities in achieving competitive and innovation-driven local
economies, and promote the convergence of initiatives on product
development among local government units (LGUs), national government
agencies (NGAs), and the private sector," Speaker Romualdez added.
"Once passed into law, we will surely be able to revitalize our MSMEs
and help them recover from the impacts of the COVID-19 pandemic."

Some authors of the bill are Reps. Bryan Revilla, Lani Mercado
Revilla, Manuel Jose M. Dalipe, Migs Nograles, Joey Sarte Salceda,
Rufus Rodriguez, LRay Villafuerte, and others.

Under the bill, DTI, in partnership with LGUs, will provide a
comprehensive package of assistance to OTOP Program beneficiaries on
the areas of product development, capacity building and training,
standards and market compliance, and market access and product
promotion. The regional and provincial offices of DTI, in cooperation
with the concerned LGUs, will determine the beneficiaries of the OTOP

The OTOP Philippines Program will cover material products and
skills-based services known to an area or locality. It will include
agricultural-based products such as coffee, and cacao, agri-processed
products like processed meats, and coconut oil; arts and crafts like
coco coir, weaves, and bamboo; home and fashion or creative artisanal
products like gifts, souvenir items, and furniture; processed food
such as fruits and nuts, local delicacies and kakanin (sticky rice
cakes), among others; and skills-based services and other products
such as hilot or traditional Filipino massage, sculpting, essential
oils, and other wellness products.

The bill also mandates DTI to establish the OTOP Philippines Trustmark
that will symbolize the country's best products, and signify that the
services and products have been marked excellent in terms of quality,
design, value, and marketability.

According to Agimat Rep. Bryan Revilla, one of the bill's principal
authors, there is a need for total support to MSMEs as they employ
63.19 percent of the country's workforce.

He added that the DTI program has assisted 19,663 MSMEs all over the
country and has developed 7,612 new products which generated P2.1
billion in sales in its OTOP hubs in 2021. (END)