NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
S.B. No. 946
MS -1 flIO 38
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROMOTING INCLUSIVE AND SUSTAINABLE ECONOMIC DEVELOPMENT 
THROUGH THE INSTITUTIONALIZATION OF "ONE TOWN, ONE PRODUCT" 
PHILIPPINES PROGRAM AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The idea of One Town, One Product (OTOP) originated from Japan's One 
Village, One Product during the 1980s. It was commenced with a group of women 
producing homemade biscuits to sell in the local market, which immediately gained 
popularity in the market and the women involved learned new skills such as 
bookkeeping and marketing. They also improved the quality and packaging of their 
products, which enabled them to trade more and gain access to credit from local banks 
that eventually helped them grow their businesses and increase their income.1
In the Philippines, this concept has been present since 2002 and was 
entrenched on Executive Order No. 176 s. 2003 as "Isang Bayan, Isang Produkto, 
Isang Milyong Piso" Program to stimulate local economic activity and sustain the anti­
poverty thrust of the government. After almost two decades of gains in terms of job 
generation and increase in domestic sales and exports, and challenges on the limited 
capacity to engage micro, small and medium-scale enterprises (MSMEs), OTOP
1 https://reIiefweb.int/report/afghanistan/one-village-one-product-how-japanese-idea-changing-iives- 
and-helping-rural


remains to be a strategic tool that provides assistance to MSMEs from local 
government units, national government agencies, and the private sector, and 
promotes inclusive growth with'n communities.
Currently, there are 62 OTOP hubs nationwide. In 2020, the Department of 
Trade and Industry (DTI) held an OTOP Virtual Trade Expo participated by 320 MSMEs 
which has generated a total sale of P90,896,907.442 which proves the potential of 
these MSMEs to grow and earn amidst the pandemic.
In this regard, the bill aims to institutionalize the OTOP Ph lippines program to 
provide the necessary support to communities in determining, developing and 
promoting products and services that are rooted in their culture, community resources, 
creativity, connection and competitive advantage.
The bill likewise mandates the DTI to provide a package of assistance for 
MSMEs to help them develop innovative and more complex products with significant 
improvement in the areas of quality, product development, design, packaging, 
compliance with standards, marketability, production capability, and brand 
development. It also aims to establish the OTOP Philippines Trustnark as a guarantee 
of excellence in OTOP Philippines products and services. It also directs certain 
agencies to construct and allocate spaces for the establishment of OTOP Philippines 
Hubs as well as creates and OTOP Program Office in every LGU,
In view of the foregoing, passage of this bill is ear
GATC
2 Consolidated Department of Trade Industry Updates presented by Secretary Ramon M. Lopez on 
July 7, 2021 during Senate Committee on Trade public hearing


Senate.
NINETEENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
SENATE
S.B. No. 946
H AUG-r A10 38
RECaVEtttf: 
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Introduced by SEN. WIN GATCHALIAN
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AN ACT
PROMOTING INCLUSIVE AND SUSTAINABLE ECONOMIC DEVELOPMENT 
THROUGH THE INSTITUTIONALIZATION OF 
"ONE TOWN, ONE PRODUCT" PHILIPPINES PROGRAM 
AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Phiiippines in 
Congress assembied:
SECTION 1. Short Tide. - This Act shall be known as the "OTOP Philippines
Act"
SEC. 2. Deciaration of Poiicy. - It is hereby declared the policy of the State to 
develop a self-reliant and independent national economy effectively controlled by 
Filipinos through policies and programs that drive inclusive local economic activity and 
boost national economic growth. The State also recognizes the indispensable role of 
the private sector and private enterprises and the necessity to provide incentives to 
foster advancement among businesses especially local micro, small and medium-scale 
enterprises (MSMEs).
Towards this end, the State shall equip MSMEs to progressively improve product 
and service quality, and to utilize new technologies to pursue innovation and


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diversification. The State shall likewise promote the preferential use of Filipino labor, 
domestic materials, and locally produced goods, and adopt measures to make them 
competitive. The State shall fuither provide adequate and effective support services 
for MSMEs to enable communities to determine, develop, and promote products and 
services that are rooted in their culture, community resources, creativity, connection, 
and competitive advantage.
SEC. 3. Objectives. - This Act aims to:
(a) Provide a package of assistance for MSMEs with minimum viable 
products to develop new, innovative, and more complex products with 
significant improvement in the areas of quality, product development, 
design, packaging, standards compliance, marketability, production 
capability, and brand development, among others;
(b) Assist rural communities in achieving competitive and innovation-driven 
local economies;
(c) Promote convergence of initiatives from local government units (LGUs), 
national government agencies (NGAs), and the private sector in the 
development and promotion of Philippine products, whether for export or 
domestic market; and
(d) Establish the "One Town, One Product" (OTOP) Philippines Trustmark as 
a guarantee of excellence in OTOP Philippines products and services.
SEC. 4. Institutionalization of One Town/ One Product Philippines. - The One 
Town, One Product Philippines Program, herein referred to as OTOP Philippines, is 
hereby institutionalized to serve as the government's stimulus program for the 
promotion and development of MSMEs in the countryside through the use of 
indigenous raw materials and utilization of local skills and talents.


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SEC. 5. Program Components. - The Department of Trade and Industry (DTI),
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in partnership with the LGUs, shall provide a comprehensive package of assistance to
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OTOP Philippines Program beneficiaries, such as the following:
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(a) Product Development including, but not limited to:
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(i) Product Design - design assistance to new products, product
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adaptation, product diversification, and expansion of existing product
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lines;
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(ii) Packaging and Labeiing - assistance to new packaging,
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improvement of package design, or labeling;
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(iii) Technology Updating - conduct workshops on new technology
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procedures, materials, and processing to increase production quality
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and quantity; and
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(iv) Product Enhancement - provide seminars to increase design
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awareness and appreciation of product or merchandise development
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and the Industrial design profession.
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(b) Capacity Building shall be provided through training opportunities
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focusing on improving the human aspect of OTOP Philippines, including
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business skills training and business counseling;
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(c) Standards and Market Compliance where beneficiaries shall be trained
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and capacitated to observe standards and comply with the requirements of
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DTI-Bureau of Philippine Standards, Food and [Tug Administration, and the
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Intellectual Property Office of the Philippines, and other concerned
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government agencies. Monitoring and evaluation schemes shall be
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developed and maintained to ensure that products under the OTOP
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Philippines conform to these standards; and
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(d) Market Access and Product Promotion where beneficiaries shall receive
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support in market access and promotion of products across different
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platforms. These platforms may include but are not limited to multimedia
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advocacy campaigns, trade fairs, and OTOP Philippines Hubs.


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SEC. 6. Coverage. - The OTOP Philippines Program shall cover material 
products and skills-based services known to an area or locality. This shall include the 
following products and services:
(a) Agricultural-based Products such as coffee, cacao, other agricultural 
produce, agri-processed products like processed meats, coconut oil, 
preserved and processed seafood products;
(b) Arts and Crafts such as coco coir, weaves, bamboo, paper artistry, and 
wood;
(c) Home & Fashion/Creative Artisanal Products such as gifts, souvenir 
items, furniture, ornaments, houseware, garments, and textiles;
(d) Processed Food such as fruits and nuts, local delkzacles and kakanin 
(sticky rice cakes), juices, wines, tea, and other beverage, pastries and 
baked goods, preserved food sauces, cakes, other desserts products, food 
supplements, and culinary-based specialty products; and
(e) Skills-based Services and Other Products such as hiiot or traditional 
Filipino massage, sculpting, essential oils and other wellness products, 
industrial goods, soaps and other personal care goods, and cosmetics.
SEC. 7. OTOP Philippines Trustmark. - The DTI shall establish the OTOP 
Philippines Trustmark that shall signify that the services and products have been 
marked excellent in terms of quality, design, value, and marketability. It shall be a 
symbol representing the country's best products.
SEC. 8. Establishment of OTOP Philippines Hubs. - The Department of Tourism 
(DOT), Civil Aviation Authority of the Philippines, Philippine Ports Authority, Land 
Transportation and Franchising Board, and other relevant agencies shall construct and 
allocate spaces for the establishment of OTOP Philippines Flubs.
SEC. 9. Beneficiaries. - The regional and provincial offices of the DTI shall, in 
cooperation with the concerned LGUs, determine the beneficiaries of the OTOP


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Program. The guidelines and mechanism for the selection of beneficiaries shall be 
formulated by the implementing agencies identified by this Act.
SEC. 10. Creation of the OTOP Program Office. - Every LGU shall create an 
OTOP Program Office (OTOP PO) managed by an officer who shall administer, 
supervise, and implement the OTOP Program.
SEC. 11. Implementing Agencies. - The DTI shall implement the provisions of 
this Act, in coordination with the following agencies;
(a) Cooperative Development Authority;
(b) Department of Interior and Local Government;
(c) Technical Education and Skills Development Authority;
(d) Department of Science and Technology;
(e) Department of Agriculture; and
(f) DOT.
SEC. 12. Appropriations. - The amount necessary to carry out the initial 
implementation of this Act shall be charged against the current year's appropriations 
of the DTI. Thereafter, such amount as may be necessary for the continued 
implementation of this Act shall be included in the annual General Appropriations Act.
The LGUs concerned shall set aside the amount needed for the operation of 
the OTOP PO under Section 10 hereof.
SEC. 13. Implementing Rules and Regulations. - Within sixty (60) days from 
the effectivity of the Act, the DTI shall, in coordination with the other implementing 
agencies, formulate and promulgate the necessary rules and regulations to effectively 
implement the provisions of this Act.


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SEC. 14. Separability Clause. - If any provision of this Act is declared 
unconstitutional or Invalid, the provisions hereof which are not affected shall continue 
to be In force and effect.
SEC. 15. Repealing Clause. - All laws, decrees, proclamations, issuances, or 
ordinances that are contrary to or inconsistent with the provisions of this Act are 
hereby amended, repealed, or modified accordingly.
SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication In the Official Gazette or In a newspaper of general circulation.
Approved,