One Town, One Product bill hurdles House 2nd reading
A HOUSE bill seeking to further develop indigenous and local products made by micro, small, and medium enterprises (MSMEs) in rural areas of the Philippines has been approved on second reading.
Lawmakers on Tuesday voted through voice House Bill No. 1171, which will institutionalize the One Town, One Product (OTOP) Philippines program.
The OTOP program was first launched in 2004 to promote distinct products from different localities. It has since been expanded to support MSMEs producing local goods.
The bill seeks to ensure that OTOP goods follow training and criteria set by the Department of Trade and Industry (DTI).
The bill mandates the DTI to “provide a comprehensive package of assistance for MSME-OTOP beneficiaries to develop new, innovative, and more complex merchandise and services, with significant improvements in the areas of quality, product development, design, packaging, standards compliance, marketability, production capability, and brand development,” House Trade and Industry panel chairman and Batangas Rep. Mario Vittorio A. Mariño told the plenary.
He added that the bill also promotes joint initiatives between local governments, national government agencies, and the private sector in the development of local products.
Funding to support the program will come from the annual national budget.
“As the lifeblood of our economy, it is high time that we empower our MSMEs to make them resilient and sustainable by supporting them financially and in terms of capacity-building,” Mr. Mariño said.
“They are the engines of economic activity and job creation especially in the countryside,” he added.
The Senate passed a similar measure in March.
The Securities and Exchange Commission (SEC) said that MSMEs make up 99.5% of all businesses in the Philippines, taking account for 25% of the country’s total exports.
MSMEs contribute 40% to the country’s gross domestic product. — Beatriz Marie D. Cruz
