President Ferdinand “Bongbong” Marcos Jr. has signed into law the Act Institutionalizing the OTOP Philippines Program, which has been hailed by House Speaker Martin Romualdez as the “true embodiment of the Filipino first policy”. The law, also known as Republic Act (RA) No. 11960, aims to support the post-pandemic recovery of micro, small, and medium enterprises (MSMEs) by providing incentives and assistance.
According to Romualdez, this law is crucial for the recovery of MSMEs, which make up 90 percent of all local businesses. He emphasized the importance of recognizing the indispensable role of the private sector and providing incentives for businesses, especially MSMEs. The OTOP Philippines Program seeks to encourage the growth of MSMEs in the countryside by utilizing local skills and talents, promoting indigenous raw materials, and showcasing local traditions across the country.
Under RA No. 11960, the OTOP Philippines Program will cover a wide range of products and skills-based services specific to each area or locality, including processed foods, agricultural-based products, home and fashion products, arts and crafts, and skills-based services. The law also aims to support rural communities in becoming more market-oriented and innovation-driven.
The law designates the Department of Trade and Industry (DTI) as the main implementer of the program. The DTI will establish the OTOP Program Management Office to oversee the program and create the OTOP Philippines Trustmark as an assurance of product quality. The regional and provincial offices of the DTI will work with local government units to determine the beneficiaries of the program.
Romualdez expressed confidence that the OTOP Program will contribute to the growth of localities, regions, and the entire country in an expedited manner. The law provides a package of assistance for MSMEs to develop new, innovative, and high-quality products, improve their marketability, and enhance their production capability.
The enactment of this law is seen as a significant step towards supporting MSMEs and promoting Philippine products, both for export and the domestic market. With the OTOP Philippines Program now institutionalized, the government aims to foster the advancement of MSMEs and stimulate economic growth.
