Product standard law to boost MSME competitiveness

By Beatriz Marie D. Cruz, Reporter

A PROPOSED LAW to create a unified framework for product standards and testing should prioritize micro, small and medium enterprises (MSMEs) to ensure smaller firms can meet global market requirements, analysts said.

“Normally, micro and small companies may not have the kind of quality control setup that larger firms possess, but we don’t want them left behind,” Philippine Chamber of Commerce and Industry Chairman George T. Barcelon said by telephone. “The law must be simple to understand and easy to apply.”

The National Quality Infrastructure (NQI) bill, under consideration in both the House of Representatives and Senate, seeks to consolidate standards, metrology, accreditation and conformity assessment across industries.

It aims to align Philippine practices with international norms, potentially opening access for domestic products to foreign markets.

Teddy G. Monroy, Philippine representative for the United Nations Industrial Development Organization (UNIDO), said the framework should address challenges faced by MSMEs, including fragmented regulations, unclear standards and limited access to accredited testing laboratories.

The NQI framework should equip smaller enterprises with the tools and guidance to participate more effectively in global markets, he said in an e-mailed reply to questions.

Mr. Barcelon noted that existing compliance rules tend to favor larger producers such as electronics manufacturers.

“The law has to be crafted in a way that is understandable and practical so that smaller companies can comply,” he said.

UNIDO said a well-drafted NQI Development Act could streamline regulatory processes, reduce duplicative procedures and expand access to reliable certification services.

A national framework that consistently applies standards “will help MSMEs gain the trust of consumers and buyers, build reputations for quality and participate in higher-value supply chains,” Mr. Monroy said.

The measure will also support small firms in upgrading production capabilities and accessing government support programs, complementing the Tatak Pinoy Act, which provides financing and incentives to domestic producers.

UNIDO is offering technical assistance to lawmakers and agencies in implementing the measure.

MSMEs, which account for more than 99% of Philippine businesses and contribute roughly 40% to the nation’s gross domestic product, are widely regarded as a key driver of economic growth.

By establishing a modernized, integrated system for standardization and quality assessment, the NQI Act could provide a critical boost to smaller enterprises, helping them compete abroad while enhancing domestic product quality and market trust.