WITH 22 affirmative votes and no negative votes, the Senate passed Senate Bill 1594 also known as the One Town, One Product (Otop) Philippines Act of 2022.
In a statement, the bill institutionalizes Otop as a program that aims to drive inclusive economic growth by supporting micro, small, and medium enterprises (MSMEs), the backbone of the country’s economy.
Otop Philippines Act of 2022 warrants the provision of assistance for MSMEs to develop new, innovative and more complex products with significant improvement in the areas of quality, product development, design, packaging, standards and regulatory compliance, marketability, production capability and brand development.
Likewise, rural communities will be given assistance to foster local economic development by creating higher quality and innovative products.
It also promotes the convergence of initiatives from local government units, national government agencies and the private sector in developing and promoting Filipino-made products that can compete in the local and international market.
“We thank the Senate for passing this very important legislation that will increase the capacity of our MSMEs by addressing gaps in terms of training and product development,” Department of Trade and Industry (DTI) Secretary Alfredo Pascual said.
MSMEs make up 99 percent of the country’s business enterprises.
Pascual said passing the bill will allow the DTI to customize its interventions that will pave the way for the development of new and innovative products from various regions of the country.
“It will also help promote our cultural identity in the international market,” he added.
Through the establishment of Otop Hubs, Otopreneurs or budding MSMEs from the grassroots are given the opportunity to showcase their unique products in various locations and access larger market and earning potential.
Assistance to MSMEs
From 2017-2023, Otop Philippines has already assisted 79,985 MSMEs, generated P10.9 million in sales, developed 39,815 products, established 111 Otop Hubs (52 in Luzon, 18 in Visayas, and 41 in Mindanao), and conducted 1,390 trade fairs.
MSMEs were mainly assisted in the form of standards compliance, product development, capacity building, and promotional activities.
“Since we aim to introduce Filipino-made products in the international market, we also want to assist MSMEs in terms of standards and market compliance. We aim to preserve the Otop brand as a mark of excellence and for that to happen, Filipino entrepreneurs must be capacitated in observing various standards and requirements. We need to make our products export quality, and this is where the DTI-Bureau of Philippine Standards comes in,” said Pascual.
The DTI-Bureau of Philippine Standards oversees the establishment of standards that will increase the competitiveness of Philippine products.
Through the Otop Philippines Act of 2022, the DTI is likewise authorized to establish the Otop Philippines Trustmark, an assurance that products under the Otop Program represent the country’s best and that these have been marked as excellent in terms of quality, design, value and marketability.
The Otop Philippines Program covers products that are known to an area or locality and those that are ingrained in the community’s cultural identity such as processed foods, agricultural-based products, home and fashion and creative artisanal products, and arts and crafts.
Otop is an international program that originated from Japan’s One Village, One Product. This program has been in the Philippines since 2002.
DTI 7 is set to open a mall-based Otop store in Ayala Center Cebu and will be managed by Lamac Multi-purpose Cooperative.
The Otop Store, which is set to open soon will be located on the second level of the mall.
Having a presence in malls, where high foot traffic is guaranteed, Otopreneurs get to attract various kinds of buyers.