To help boost recovery, innovation among MSMEs

SENATOR Christopher “Bong” Go has filed in the 19th Congress a measure institutionalizing the Department of Trade and Industry’s “One Town, One Product” (OTOP) program, saying that it will help boost recovery and promote innovation among micro, small, and medium enterprises.

OTOP is a government-run program providing assistance for MSMEs and promoting the commodities and products of Filipino towns, cities and regions.

In the explanatory note of the bill, Go noted that 99.51% of businesses operating in the country are MSMEs, according to the 2020 List of Establishments of the Philippine Statistics Authority.

“These figures emphasize and solidify the important role of MSMEs in the country’s economy,” said Go.

The senator stressed that it is therefore the duty of the government to “provide protection and recognize the profound and undeniable contributions of MSMEs in nation building, continuing national economic growth, and the realization of our economic objectives.”

Go’s Senate Bill adopts the OTOP as a government stimulus program to encourage the growth of MSMEs in the country through the utilization of indigenous raw materials, local traditions and cultures across the country.

It seeks to assist and capacitate MSMEs in developing new, innovative and more complex products and services through significant improvement in the areas of quality, product development, design, packaging, standards compliance, marketability, production capability, brand development, sustainability, and securing licenses, product registration and other market authorization, among others.

Furthermore, the bill seeks to support MSMEs in coping with the adverse effects brought by the ongoing pandemic.

The committee report of the Senate Committee on Trade, Commerce and Entrepreneurship of the 18th Congress was adopted in the bill.

Under the measure, the DTI is mandated to establish the OTOP Philippines Trustmark, which is an assurance that the products under the program represent the country’s best. The OTOP Philippines Trustmark shall signify that the businesses and products have been marked excellent in terms of quality, design, value and marketability.

The DTI is also mandated to establish a set of criteria for OTOP products consistent with the local culture, community resource, connection, creativity and competitive advantage.

Beneficiaries of the OTOP Program will be determined by the regional and provincial offices of the DTI, in cooperation with local government units. The DTI and LGUs are mandated to make available a comprehensive package of assistance to OTOP Program beneficiaries.

While the DTI will serve as the lead agency of the program, an OTOP Management Committee will be created to be designated by the DTI Secretary which shall have the main responsibility of directing the implementation of the proposed measure.

The Department of Tourism, Civil Aviation Authority of the Philippines, Philippine Ports Authority, Land Transportation and Franchising Board, and other similar agencies are also tasked to support the construction and allocation of spaces for the establishment of OTOP Philippines hubs.

To promote access to market, the DTI is tasked to ensure that the OTOP Philippines hubs are established in strategic ports of entry, such as but not limited to airports, seaports, bus terminals, high-traffic retail outlets like malls, tourist destinations, and other consumer-frequented locations.

The DTI, in coordination with the relevant agencies, will also formulate a comprehensive marketing and operations plan for the establishment of the OTOP Philippines hubs.

“Backbone ng ating ekonomiya ang mga MSMEs. Masisipag at madiskarte sa buhay ang mga Pilipino. Kung mabibigyan lang sila ng tamang suporta, hindi malayo na mas lalago pa ang mga negosyo nila,” said Go.

“Tulungan natin ang mga MSMEs na buhayin ang kanilang mga negosyo dahil sila rin ang bubuhay sa ating ekonomiya, lalung-lalo na ngayon na nasa gitna tayo ng krisis dulot ng COVID-19,” he ended.

Go has also been consistent in advocating for sustained government support for MSMEs. At the height of the pandemic, the lawmaker successfully advocated for the implementation of the Small Business Wage Subsidy program. It provided eligible workers who were unable to work or get paid during the enhanced community quarantine period with two tranches of financial assistance.