TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. No. 1054
25 AUG-6 P2 :31
Hl'CLiVcu bV.
Introduced by Senator Jinggoy Ejercito Estrada
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
According to the 2023 List of Establishments of the Philippine Statistics 
Authority (PSA), 99.63% of the total number of businesses in the country are 
considered as micro, small and medium enterprises (MSMEs), and collectively, they 
generated 6.35 million jobs which is equivalent to 66.97% of the country's total 
employment.1 These figures illustrate the significant contribution of the MSMEs to the 
country's progress, as they are considered the "growth engines of the national 
economy."
This bill, which was reported out by the Committee on Trade, Commerce and 
Entrepreneurship and already approved on Third Reading by the Senate during the 
19th Congress, aims to strengthen the support of the national government to this vital 
sector through the institutionalization of the Shared Service Facilities (SSF) program 
of the Department of Trade and Industry (DTI). Under the said project, the DTI
1 2023 Philippine MSME Statistics. Accessed through https://www.dti.eov.ph/resources/msme-statistics/
1


provides MSMEs access to technology by granting eligible cooperators (which can be 
government agencies, local government units, state universities and colleges, or 
private entities such as cooperatives, private schools, non-government organizations, 
etc.) with machinery, equipment, tools, and other auxiliary items, skills and knowledge 
to be used by MSMEs and other potential entrepreneurs under a shared system. As of 
December 2024, the government has allocated P3.7 billion since 2013 and funded the 
establishment of 3,651 facilities with over 700,000 MSMEs and other users assisted.2
In 2013, KAAGAP Development Multi-Purpose Cooperative (KAAGAPMUCO) in 
Agusan del Sur was granted P0.5 million worth of SSF (i.e. 85 units of manual twining 
machine, 10 units of electric twining machine and 13 units loom weaving equipment) 
by the DTI to aid them in their coco-coir processing. The intervention resulted in the 
increase in monthly production of coco net from 50 to 300 rolls. In 2014, their sales 
amounted to P8 million, and further rose to P12 million in 2015.3
San Jose Vendors Multi-Purpose Cooperative (SJVMPC) in Occidental Mindoro 
was provided Computerized Embroidery Machines through the SSF Project in 2015 
and in 2018. SJVMPC demonstrated success in its bag-making operations, achieving 
194% increase in sales and 75% increase in the number of beneficiaries.4 Their 
business has since expanded to other ventures and their number of full-time 
employees tripled.
The Abaca Processing Facility in Zamboanga del Norte, built in partnership with 
the Santa Fe Upland Farmers Association, was given decorticating and spindle 
machines under the DTI's SSF project. This resulted to a scaled-up production from 
800-1,000 kilograms of abaca fiber and eventually reaching 3,000-4,000 kilograms, 
and a significant increase in the farmers' income.5
2 Ibid.
3 https://www.dti.gov.ph/regions/caraga/caraea-success-stories/
4 https://www.dti.eov.ph/archives/regional-archives/mimaropa-success-stories-regional-archives/sewine-
dreams-into-realitv-san-iose-vendors-multi-purpose-cooperative/
5 https://pia.eov.ph/helping-msmes-since-2013-dtis-ssf-proiect-hopes-to-uplift-small-businesses-as-pbbm-
paves-wav-
forward/#:~:text=SSF%20success%20stories%20hiehlight%20the.one%20of%20these%20success%20stories.


These success stories prove the effectivity of the SSF Program in improving the 
production capacities of the beneficiaries, which in turn resulted in higher sales, 
revenues and income, upgrading the value of products, expanding the business, and 
ultimately uplifting the quality of life of many Filipinos, especially in the countryside.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
NGGOY EJERCITO ESTRADA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1054
25 AUG -6 P2 31
m:covto by;
Introduced by Senator Jinggoy Ejercito Estrada
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:
1 
Section 1. Republic Act No. 6977, as amended by Republic Act No. 9501, is
2 
hereby further amended by inserting new Sections 16 and 17 to read as follows, and
3 
renumbering the succeeding sections accordingly:
4 
"SEC. 16. ESTABLISHMENT OF SHARED SERVICE
5 
FACILITIES (SSF) FOR MSMES. - IN ORDER TO
6 
ADDRESS THE GAPS IN THE PRODUCTION VALUE
7 
CHAIN, PROMOTE INNOVATION AMONG MSMES AND
8 
ENHANCE THEIR CAPACITIES TO PRODUCE AND
9 
OFFER SOPHISTICATED AND DIVERSE PRODUCTS
10 
AND SERVICES, THE SHARED SERVICE FACILITIES
11 
(SSF) PROGRAM OF DEPARTMENT OF TRADE AND
12 
INDUSTRY (DTI) IS HEREBY INSTITUTIONALIZED.
13 
"THE SSF PROGRAM SHALL ENTAIL SETTING UP
14 
COMMON SERVICE FACILITIES OR PRODUCTION


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
CENTERS FOR CERTAIN PROCESSES TO GIVE MSMES 
ACCESS TO BETTER TECHNOLOGY 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.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
"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 SSF-FAB 
LABS, THE DTI SHALL:
"(A) TIMELY PROCESS THE APPLICATIONS FOR 
THE GRANTING OF SSFS AND SSF-FAB LABS IN 
COMPLIANCE WITH THE PROVISIONS OF REPUBLIC 
ACT NO. 11032 OR THE "EASE OF DOING BUSINESS 
AND EFFICIENT GOVERNMENT 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);
"B) CONSULT WITH THE COOPERATORS ON THE 
APPROPRIATE PROJECTS TO BE GRANTED TO THEM;
"C) ENSURE THAT THE MACHINERY, 
EQUIPMENT AND TOOLS ARE PROPER, SUITABLE, 
USABLE, AND APT WITH THE CAPABILITIES AND 
REQUIREMENTS OF THE FACILITIES;
"D) 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


1 
WITHIN AND OUTSIDE THE EDUCATIONAL
2 
INSTITUTIONS;
3 
”E) CLOSELY COORDINATE AND IMMEDIATELY
4 
ASSIST THE COOPERATORS WITH THEIR ISSUES OR
5 
CONCERNS REGARDING THE IMPLEMENTATION OF
6 
THEIR PROJECTS; AND
7 
"F) PARTNER WITH OTHER GOVERNMENT
8 
AGENCIES, IF NEEDED, TO HELP ENSURE THE
9 
SUCCESS OF THE PROJECTS: PROVIDED, FURTHER,
10 
THAT THE DTI SHALL ENSURE THAT THE SSFS AND
11 
SSF-FAB LABS CREATED UNDER THIS ACT ARE
12 
CONSISTENT WITH THE NATIONAL INNOVATION
13 
AGENDA AND STRATEGY DOCUMENT.
14 
"SEC. 17. MONITORING OF PRODUCTIVITY
15 
OUTCOMES. -THE DTI, IN COORDINATION WITH THE
16 
CONCERNED COOPERATORS, LGUS, SUCS, LUCS,
17 
PRIVATE SCHOOLS, COLLEGES AND UNIVERSITIES,
18 
GOVERNMENT ACADEMIC TRAINING INSTITUTIONS
19 
IN WHICH THE SSFS AND THE SSF-FAB LABS ARE
20 
SITUATED, SHALL SUBMIT AN ANNUAL PROGRESS
21 
REPORT TO CONGRESS DETAILING THE
22 
EFFECTIVENESS AND/OR IMPACT OF THE SSFS AND
23 
SSF-FAB LABS WHICH SHALL INCLUDE THE BUDGET
24 
UTILIZATION OF THE PROJECT, ADDITIONAL JOBS
25 
AND INCOME GENERATED, INDUSTRY ENGAGEMENT,
26 
TECHNOLOGY TRANSFER, AND OVERALL GROWTH OF
27 
THE BUSINESSES WHICH AVAILED OF THE
28 
FACILITIES."
29 
Sec. 2. Implementing Rules and Regulations. - Within three (3) months from
30 
the effectivity of this Act, the DTI shall promulgate the necessary implementing rules
31 
and regulations for the institutionalization and establishment of the SSFs including the
32 
guidelines for the partnership with the cooperators, SUCs, LUCs, private schools.


1 
colleges and universities, and government academic training institutions where the
2 
SSFs and SSF-Fab labs will be established.
3 
Sec. 3. Appropriations. - The amounts necessary to carry out the
4 
implementation of this Act shall be charged against the current budget of DTI.
5 
Thereafter, the funds necessary for the continuous implementation of this Act shall be
6 
included in the annual General Appropriations Act (GAA).
7 
Sec. 4. Separabiiity Cause. - If any portion or provision of this Act is declared
8 
unconstitutional, the remainder of this Act or any provision not affected thereby shall
9 
remain in full force and effect.
10 
Sec. 5. Repealing Cause. - All laws or parts thereof, decrees, orders, rules and
11 
regulations inconsistent with the provisions of this Act are hereby repealed or modified
12 
accordingly.
13 
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
14 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,