Department of Trade and Industry hub for micro, small and medium enterprises in Tabuk City, Kalinga (PNA file photo by Liza T. Agoot)
MANILA – The approved Senate measure that seeks to institutionalize the One Town, One Product (OTOP) program will promote local products of micro, small and medium enterprises (MSMEs) and boost economic growth through jobs.
Senate President Pro Tempore Loren Legarda, principal author of Senate Bill No 1594, said the OTOP program shall include product development as the primary instrument of assistance for MSMEs.
OTOP products must meet a set of criteria to be established by the Department of Trade and Industry (DTI), the lead agency under the measure.
“The bill will also address gaps in entrepreneurial skills through capacity building, set standards, and market compliance to preserve the OTOP brand as a mark of excellence and access to local and foreign markets. It will also enhance product promotion across different platforms,” Legarda said in a news release on Tuesday.
Under the bill, the products should be consistent with the cultural values rooted in a locality, derive its sources from the community, evoke a sense of connection among locals, exemplify the Filipino people’s creativity and innovation, and draw from the locality’s innate and endemic strengths.
The bill, also authored by Senate Majority Leader Joel Villanueva and Senators Ramon Revilla Jr. Jinggoy Estrada, Christopher Go, Sherwin Gatchalian, and Mark Villar, garnered 22 affirmative votes and zero negative votes during the final reading on Monday night.
Records from the Philippine Statistics Authority showed that 99.58 percent of the total business enterprises in the country are composed of MSMEs, which created 5,461,731 jobs and generated PHP2.09 billion worth of sales in 2021 alone.
“This is a way to promote sustainable development, growth, and competitiveness of small units of society and the regions, the well-being of residents, and the quality of the living environment,” Legarda said.
The DTI has long been supporting OTOP hubs in coordination with local government units to give avenues for local entrepreneurs to showcase their products and be exposed in the market.
In February, DTI-Northern Mindanao gave point-of-sale terminals worth PHP25,000 each to 81 OTOP hubs to ensure they keep track of sales and manage their inventories. (Leonel Abasola/PNA)
