Senate OKs bill institutionalizing OTOP

The Senate on Monday, March 20, 2023 approved on third and final reading a proposed measure that seeks to institutionalize the One Town, One Product (OTOP) Philippines as one of the government's stimulus programs for micro, small and medium-scale enterprises (MSMEs) to drive inclusive local economic growth.

Sponsored by Sen. Mark Villar, chairperson of the Committee on Trade, Commerce and Entrepreneurship, Senate Bill No. (SBN) 1594 or the OTOP Philippines Act of 2023 was approved with 22 votes, zero negative votes and no abstention.

SBN 1594, authored by Senate President Pro Tempore Loren Legarda, Senate Majority Leader Joel Villanueva and Senators Ramon Bong Revilla Jr., Jinggoy Ejercito Estrada, Christopher Lawrence "Bong" Go, Win Gatchalian and Villar, shall capacitate the MSMEs on product development, initiatives and training, among others.

The proposed measure will provide a package of assistance for MSMEs with viable products in order to develop new, innovative and more complex products, with significant improvement in the areas of quality, product development, design, packaging, standards as well as regulatory compliance, marketability, production capability and brand development.

SBN 1594 also aims to assist rural communities in growing the local economy by being more market-oriented and innovation-driven and to promote the convergence of initiatives from LGUs, national government agencies and the private sector in developing and promoting Philippine products, whether for export or the domestic market.

The OTOP Philippines program was introduced in 2002 and further strengthened through the signing of Executive Order 176 by then President Gloria Macapagal-Arroyo.

The Department of Trade and Industry (DTI) will be the lead agency in implementing the provisions of SBN 1594 with the assistance of other agencies, namely the Cooperative Development Authority, Department of Agriculture, Department of Information and Communications Technology, Department of the Interior and Local Government, Department of Health, Department of Science and Technology, Department of Tourism and concerned local government units (LGUs), among others.

To ensure that the products under the program represent the country's best, SBN 1594 shall authorize the DTI to establish the OTOP Philippines Trustmark that will signify that the business and products have been marked as excellent in terms of quality, design, value and marketability.

Under the proposed measure, an OTOP Management Committee shall be created and designated by the DTI Secretary which shall have the primary responsibility of directing the implementation of the provisions of SBN 1594.

SBN 1594 also calls for the creation of OTOP program office in each LGU which shall direct, supervise and implement the program on the local level and the establishment of

OTOP Philippines Hubs 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 to promote access to the market.