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