Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS,
First Regular Session

HOUSE BILL NO. 457

Introduced by Representative Crispin Diego “Ping” D. Remulla

AN ACT
INSTITUTIONALIZING THE SHARED SERVICE FACILITIES (SSF) PROJECT
FOR MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) BY AMENDING
REPUBLIC ACT NO. 6977, OTHERWISE KNOWN AS THE MAGNA CARTA FOR
SMALL ENTERPRISES, AS AMENDED BY REPUBLIC ACT NO. 9501,
OTHERWISE KNOWN AS THE MAGNA CARTA FOR MICRO, SMALL AND
MEDIUM ENTERPRISES

EXPLANATORY NOTE

Micro, small, and medium enterprises (MSMEs) play a massive role in the Philippine
economy. In fact, almost all businesses in the country, specifically 99.63%, fall under this
category, providing jobs for over 6 million Filipinos. This is nearly 67% of the entire
workforce. Clearly, MSMEs are vital to helping families earn a living and keeping the

‘country’s economy running strong.

However, many small businesses face challenges because they lack access to modern
equipment, tools, and technology that can help improve their products and services. To address
this, the Department of Trade and Industry (DT!) established the Shared Service Facilities
(SSF) Project, which enables MSMEs to utilize advanced equipment and facilities without
incurring the costs of purchasing them individually. These shared centers also help small

businesses grow, innovate, and become more competitive, both locally and globally.


‘This measure aims to make the SSF Project a permanent part of the government's
support for MSMEs by officially institutionalizing it. It also requires the DTI to set up high-
tech SSF Fabrication Laboratories, or Fab Labs, in every province, especially in areas that still
do not have them. These labs will be located in schools or government training centers, where
entrepreneurs can learn, develop, and improve their products. By providing small businesses
with better tools and opportunities, this measure aims to create jobs, foster innovation, and

promote long-term growth in communities nationwide.

In view of the foregoing, the approval of this measure is earnestly sought.

CRISPIN DI “PING” D. REMULLA


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 457

Introduced by Representative Crispin Diego “Ping” D. Remulla

AN ACT
INSTITUTIONALIZING THE SHARED SERVICE FACILITIES (SSF) PROJECT
FOR MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) BY AMENDING
REPUBLIC ACT NO. 6977, OTHERWISE KNOWN AS THE MAGNA CARTA FOR
SMALL ENTERPRISES, AS AMENDED BY REPUBLIC ACT NO. 9501,
OTHERWISE KNOWN AS THE MAGNA CARTA FOR MICRO, SMALL AND
MEDIUM ENTERPRISES

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Republic Act No. 6977, as amended by Republic Act No. 9501, is hereby
further amended by inserting new Sections 16 and 17 to read as follows, and renumbering the
succeeding sections accordingly:

“SEC. 16, ESTABLISHMENT OF SHARED SERVICE FACILITIES

(SSF) FOR MSMES. - IN ORDER TO ADDRESS THE GAPS IN THE

PRODUCTION VALUE CHAIN, PROMOTE INNOVATION AMONG

MSMES AND ENHANCE THEIR CAPACITIES TO PRODUCE AND

OFFER SOPHISTICATED AND DIVERSE PRODUCTS AND SERVICE!

THE SHARED SERVICE FACILITIES (SSF) PROGRAM OF

DEPARTMENT OF TRADE AND INDUSTRY (DTI) IS HEREBY

INSTITUTIONALIZED.

THE SSF PROGRAM SHALL ENTAIL SETTING UP COMMON

SERVICE FACILITIES OR PRODUCTION CENTERS FOR CERTAIN

PROCESSES TO GIVE MSMES ACCESS TO BETTER TECHNOLOGY



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AND MORE SOPHISTICATED EQUIPMENT TO ACCELERATE THEIR:
BID FOR COMPETITIVENESS AND HELP THEM GRADUATE TO A
NEXT LEVEL WHERE THEY COULD TAP BETTER AND WIDER
MARKETS AND BE INTEGRATED IN THE GLOBAL SUPPLY CHAIN.
THE PROJECT MAY BE IMPLEMENTED IN COOPERATION WITH
THE DEPARTMENT OF SCIENCE AND TECHNOLOGY (DOST), AND
OTHER GOVERNMENT AGENCIES, THE ACADEME, LOCAL
GOVERNMENT UNITS (LGUS), AND PRIVATE ORGANIZATIONS.

SHARED SERVICE FACILITIES REFER TO MACHINERY,
EQUIPMENT, TOOLS, SYSTEMS, ACCESSORIES, AND OTHER
AUXILIARY ITEMS, SKILLS, AND KNOWLEDGE THAT ARE BEING
PROVIDED BY THE DTI UNDER A COMBINED AND COLLECTIVE
SYSTEM TO ITS TARGET BENEFICIARIES.

THE DTI, IN COORDINATION WITH RELEVANT
GOVERNMENT AGENCIES, LGUS, PRIVATE INSTITUTIONS AND
STAKEHOLDERS, SHALL ALSO ESTABLISH SSF-FABRICATION
LABORATORIES (SSF-FAB LABS), WHICH REFER TO HIGH-END
SSFS EQUIPPED WITH AN ARRAY OF FLEXIBLE COMPUTER-
CONTROLLED TOOLS THAT COVER SEVERAL DIFFERENT
LENGTHS AND SCALE AND VARIOUS MATERIALS, IN AT LEAST
ONE (1) STRATEGIC LOCATION IN EVERY PROVINCE TO ASSIST
MSMES IN THE MANUFACTURING OF NEEDED ASSETS AND
PRODUCTS. THE PRIORITY SHALL BE PROVINCES WITHOUT
EXISTING FAB LABS.

THE SSF-FAB LABS SHALL BE ATTACHED TO STATE
UNIVERSITIES AND COLLEGES (SUCS); LOCAL UNIVERSITIES AND
COLLEGES (LUCS); PRIVATE SCHOOLS, COLLEGES AND
UNIVERSITIES; AND GOVERNMENT ACADEMIC TRAINING
INSTITUTIONS OF THE PROVINCE AS DETERMINED BY DTI FOR
PROPER MONITORING AND MAINTENANCE:

PROVIDED, THAT IN GRANTING SSFS AND SS!
THE DTI SHALL:

A) TIMELY PROCESS THE APPLICATIONS FOR THE

GRANTING OF SSFS AND SSF-FAB LABS IN COMPLIANCE

'-FAB LABS,


WITH THE PROVISIONS OF REPUBLIC ACT NO. 11032 OR
OF DOING BUSINESS AND EFFICIENT
SERVICE DELIVERY ACT OF 2018” ON
THE MAXIMUM PRESCRIBED PROCESSING TIME
DEPENDING ON THE COMPLEXITY OF THE
TRANSACTIONS: PROVIDED, THAT THE APPLICATION
HAS MET ALL THE REQUIREMENTS INCLUDING AMONG
OTHERS THE CONDUCT OF MARKET STUDY AND OTHER
RECOMMENDATIONS THAT MAY BE IDENTIFIED BY
THE NATIONAL TECHNICAL WORKING GROUP (NTWG);
CONSULT WITH THE COOPERATORS ON THE
APPROPRIATE PROJECTS TO BE GRANTED TO THEM;
ENSURE THAT THE MACHINERY, EQUIPMENT AND
TOOLS ARE PROPER, SUITABLE, USABLE, AND APT
WITH THE CAPABILITIES AND REQUIREMENTS OF THE
FACILITIES;

COORDINATE WITH SUCS AND LUCS WHERE THE SSF
AND/OR SSF-FAB LABS ARE ESTABLISHED IN SETTING
GUIDELINES FOR THE EQUITABLE UTILIZATION OF
SAID FACILITIES AMONG USERS WITHIN AND OUTSIDE
THE EDUCATIONAL INSTITUTIONS;

CLOSELY COORDINATE AND IMMEDIATELY ASSIST
THE COOPERATORS WITH THEIR ISSUES OR CONCERNS
REGARDING THE IMPLEMENTATION OF THEIR
PROJECTS; AND

PARTNER WITH OTHER GOVERNMENT AGENCIES, IF
NEEDED, TO HELP ENSURE THE SUCCESS OF THE
PROJECTS:

PROVIDED, FURTHER, THAT THE DTI SHALL ENSURE THAT
THE SSFS AND SSF-FAB LABS CREATED UNDER THIS ACT
ARE CONSISTENT WITH THE NATIONAL INNOVATION
AGENDA AND STRATEGY DOCUMENT.

SEC. 17. MONITORING OF PRODUCTIVITY OUTCOMES. - THE

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DTI, IN COORDINATION WITH THE CONCERNED COOPERATORS,


LGUS, SUCS, LUCS, PRIVATE SCHOOLS, COLLEGES AND
UNIVERSITIES, | GOVERNMENT ACADEMIC — TRAINING
INSTITUTIONS IN WHICH THE SSFS AND THE SSF-FAB LABS ARE
SITUATED, SHALL SUBMIT AN ANNUAL PROGRESS REPORT TO
CONGRESS DETAILING THE EFFECTIVENESS AND/OR IMPACT OF
THE SSFS AND SSF-FAB LABS WHICH SHALL INCLUDE THE
BUDGET UTILIZATION OF THE PROJECT, ADDITIONAL JOBS AND
INCOME GENERATED, INDUSTRY ENGAGEMENT, TECHNOLOGY
TRANSFER, AND OVERALL GROWTH OF THE BUSINESSES WHICH
AVAILED OF THE FACILITIES.”

SEC. 2. Implementing Rules and Regulations. — Within three (3) months from the

effectivity of this Act, the DTI shall promulgate the necessary implementing rules and
regulations for the institutionalization and establishment of the SSFs including the guidelines
for the partnership with the cooperators, SUCs, LUCs, private schools, colleges and
universities, and government academic training institutions where the SSFs and SSF-Fab labs
will be established.

SEC. 3. Appropriations. - The amounts necessary to carry out the implementation of
this Act shall be charged against the current budget of DTI. Thereafter, the funds necessary for
the continuous implementation of this Act shall be included in the annual General
Appropriations Act (GAA).

. 4. Separability Clause. ~ If any portion or provision of this Act is declared

unconstitutional, the remainder of this Act or any provision not affected thereby shall remain
in full force and effect.

SEC 5. Repealing Clause. — All laws or parts thereof, decrees, orders, rules and
regulations inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SEC. 6. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in

the Official Gazette or in a newspaper of general circulation.

Approved,