Press Release
December 5, 2021

Gatchalian seeks to institutionalize 'One Town One Product' to encourage growth of MSMEs

To further encourage the growth of local micro, small and medium enterprises (MSMEs), considered as the backbone of the country's economy, Senator Win Gatchalian sought to institutionalize "One Town, One Product (OTOP) Philippines" through Senate Bill No. 2366 or the One Town, One Product Philippines Act.

The bill seeks to enable the recovery of local economies, especially the countryside, from the adverse effects of COVID-19 pandemic, further promote rural development and generate employment and livelihood opportunities.

The proposed OTOP Philippines Program highlights the use of indigenous raw materials and utilization of local skills and talents. It covers processed food, craft or artisanal products, wellness products and cosmetics, agricultural-based products such as coffee and cacao, and skills-based services such as hilot or traditional Filipino massage and sculpting, among others.

"Habang itinataguyod natin ang mga ipinagmamalaking sariling produkto ng bawat bayan, siyudad, at rehiyon sa buong bansa, mabibigyan pa natin sila ng pagkakataong makabuo ng iba't ibang inobasyon sa kanilang mga produkto at serbisyo na magpapalago sa kanilang lokal na ekonomiya at makapagbibigay ng mas maraming trabaho," said Gatchalian.

The Vice Chairperson of the Senate Economic Affairs Committee noted that the OTOP concept has been in existence since 2012 and was entrenched in Executive Order No. 176 s. 2003 as "Isang Bayan, Isang Produkto, Isang Milyon" and relaunched in 2017 as OTOP.

The Department of Trade and Industry's Impact Assessment Surveys of COVID-19 on the MSME sector showed that 52.7% MSMEs partially closed as of end September 2021 from 52.5% in June 2020. The same survey showed that although 27.7% of MSMEs stopped operations in June 2020, the figures went down to 6.9% as of end September 2021.

Under Gatchalian's "One Town, One Product Philippines Act," the Department of Tourism (DOT), Civil Aviation Authority of the Philippines (CAAP), Philippine Ports Authority (PPA), Land Transportation Franchising and Regulatory Board (LTFRB), and other similar agencies shall support the construction and allocation of spaces for the establishment of OTOP Philippines hubs.

Data also obtained from the DTI showed that there were 66 OTOP hubs established, 13 of these are shifting to online platforms. A total of P56.89 million sales were generated by MSMEs as of September 30, 2021.

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'One Town, One Product' isinusulong ni Gatchalian para palakasin ang MSMEs

Upang maitaguyod ang paglago ng mga maliliit na negosyo o 'yung mga tinatawag na micro, small and medium enterprises (MSMEs) na tinaguriang "backbone of the Philippine economy," isinusulong ni Senador Win Gatchalian ang pagsasabatas ng "One Town, One Product (OTOP) Philippines" sa pamamagitan ng Senate Bill No. 2366 o ang One Town, One Product Philippines Act.

Layon ng panukalang ito na ibangon ang mga negosyong pinadapa ng pandemya, lalo na ang mga nasa kanayunan, upang makalikha ng mga trabaho at makapagbigay ng iba't ibang livelihood opportunities.

Sa ilalim ng OTOP Philippines Program, hinihikayat ang paggamit ng mga materyales na gawang lokal pati na rin ang mga itinuturing na local skills and talents. Sakop nito ang mga processed food, produktong ginawa sa tradisyonal na paraan, wellness products at cosmetics, agriculture-based na produkto gaya ng kape at cacao, at mga serbisyong tulad ng hilot, paglililok, at iba pa.

"Habang itinataguyod natin ang mga ipinagmamalaking sariling produkto ng bawat bayan, siyudad, at rehiyon sa buong bansa, mabibigyan din natin sila ng pagkakataong makabuo ng iba't ibang inobasyon sa kanilang mga produkto at serbisyo na magpapalago sa kanilang lokal na ekonomiya at makapagbibigay ng mas maraming trabaho," ani Gatchalian.

Ang konsepto ng OTOP, ayon sa Vice Chairperson ng Senate Economic Affairs Committee, ay pinapatupad na noon pang 2012. Ito'y nakapaloob sa Executive Order No. 176 s. 2003 o "Isang Bayan, Isang Produkto, Isang Milyon" at muling inilunsad noong 2017 bilang OTOP.

Batay sa Impact Assessment Surveys of COVID-19 on the MSE Sector ng Department of Trade and Industry (DTI), magmula noong magkapandemya umabot sa 52.5% ang mga nagsarang MSMEs hanggang Hunyo ng nagdaang taon at umakyat pa ito sa 52.7% noong katapusan ng Setyembre ngayong taon. Ayon pa sa naturang survey, bagamat may 27.7% ng MSMEs ang tuluyan nang huminto sa kanilang operasyon noong Hunyo ng nagdaang taon, bumaba ang pigura sa 6.9% nito lamang Setyembre.

Batay pa rin sa datos ng DTI, umabot sa P56.89 milyon ang nalikom na kita ng mga MSMEs hanggang Setyembre 30, 2021. Mula sa mga naitatag na 66 OTOP hubs, 13 na dito ang lumipat sa online platform.

Sa panukala ni Gatchalian na "One Town, One Product Philippines Act," imamandato rin sa Department of Tourism (DOT), Civil Aviation Authority of the Philippines (CAAP), Philippine Ports Authority (PPA), Land Transportation Franchising and Regulatory Board (LTFRB) at iba pang ahensya na maglaan ng mga establisyimentong magiging OTOP Philippines hubs na nagtatanghal ng mga produktong sakop nito.

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