TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE 
S. No.
of tl)f ^>’;rf»nr/>
25 AUG 27 PI 30
RECEIVED BY.
Introduced by Senator MARK A. VILLAR
AN ACT
TO INSTITUTIONALIZE THE SHARED SERVICE FACILITIES (SSF) PROJECT 
FOR MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) BY AMENDING 
REPUBLIC ACT NO. 6977 OR THE "MAGNA CARTA FOR SMALL 
ENTERPRISES," AS AMENDED BY REPUBLIC ACT NO. 9501 OR THE "MAGNA 
CARTA FOR MICRO, SMALL, AND MEDIUM ENTERPRISES"
EXPLANATORY NOTE
The Philippine economy is dominated by Micro, Small, and Medium Enterprises 
(MSMEs), with the 2023 report of the Philippine Statistics Authority (PSA) reflecting a 
99.63% market share of establishments in the country, employing around 66% of the 
labor force.
To meet the continuous growth of the sector, the Department of Trade and 
Industry (DTI) spearheaded the Shared Service Facility (SSF) Project under the MSME 
Development Plan to improve MSME competitiveness by providing machinery, 
equipment, tools, systems, accessories, and other auxiliary items, skills, and 
knowledge under a shared system.
From 2013 to 2024, the government has allocated an aggregate amount of 
Php3.7 billion for the implementation of the program, funding 3,651 facilities in all the 
regions of the country. For more than a decade, the program has aided more than 
700,000 MSMEs and has generated approximately 300,000 employment opportunities.
The SSF has shown a commendable capacity to accelerate efforts for the 
development of the country's trade sector, particularly small businesses.
Thus, this measure seeks to institutionalize the SSF Project in order to address 
the gaps in the production value chain, promote innovation among MSMEs, and 
enhance their capacities to produce and offer diverse products and services. This


measure will improve the quality and market reach of MSME products and shall 
contribute to the attainment of inclusive and sustainable economic growth.
Therefore, urgent approval of this bill is earnestly sought.
MARK A. VILLAR


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 1274
^eiuKfp
. \ -Oil
’■'it iwr ilJffirf of tiu'
25 AUG 27 PI :30
A
RtiCEIVED BV __ ^_________
Introduced by Senator MARK A. VILLAR
AN ACT
TO INSTITUTIONALIZE THE SHARED SERVICE FACILITIES (SSF) PROJECT 
FOR MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) BY AMENDING 
REPUBLIC ACT NO. 6977 OR THE "MAGNA CARTA FOR SMALL 
ENTERPRISES," AS AMENDED BY REPUBLIC ACT NO. 9501 OR THE "MAGNA 
CARTA FOR MICRO, SMALL, AND MEDIUM ENTERPRISES"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Insert new Sections 16 and 17 under Republic Act No. 6977, as
2 
amended, to read as follows, and renumber the succeeding sections accordingly:
3 
"SEC. 16. ESTABLISHMENT OF SHARED SERVICE
4 
FACILITIES (SSF) FOR MSMES. - IN ORDER TO
5 
ADDRESS THE GAPS IN THE PRODUCTION VALUE
6 
CHAIN, PROMOTE INNOVATION AMONG MSMES AND
7 
ENHANCE THEIR CAPACITIES TO PRODUCE AND OFFER
8 
SOPHISTICATED AND DIVERSE PRODUCTS AND
9 
SERVICES, THE SHARED SERVICE FACILITIES (SSFS)
10 
PROGRAM OF DTI IS HEREBY INSTITUTIONALIZED.
11 
THE DTI SHALL ALSO ESTABLISH SSF-FABRICATION
12 
LABORATORIES (SSF-FAB LABS), WHICH REFER TO
13 
HIGH-END SSFS EQUIPPED WITH AN ARRAY OF
14 
FLEXIBLE COMPUTER-CONTROLLED TOOLS THAT
15 
COVER SEVERAL DIFFERENT LENGTHS AND SCALE AND
16 
VARIOUS MATERIALS, IN AT LEAST ONE (1) STRATEGIC
17 
LOCATION IN EVERY PROVINCE TO ASSIST MSMES IN
1


1 
THE MANUFACTURING OF NEEDED ASSETS AND
2 
PRODUCTS. THE PRIORITY SHALL BE PROVINCES
3 
WITHOUT EXISTING FAB LABS.
4 
THE SSF-FAB LABS SHALL BE ATTACHED TO STATE
5 
UNIVERSITIES AND COLLEGES (SUCS); LOCAL
6 
UNIVERSITIES OR COLLEGES (LUCS); PRIVATE
7 
SCHOOLS, COLLEGES, AND UNIVERSITIES; AND
8 
GOVERNMENT ACADEMIC TRAINING INSTITUTIONS
9 
OF THE PROVINCE AS DETERMINED BY DTI FOR
10 
PROPER MONITORING AND MAINTENANCE."
11 
"SEC. 17. MONITORING OF PRODUCTIVITY OUTCOMES.
12 
- THE DTI, IN COORDINATION WITH THE CONCERNED
13 
COOPERATORS, LGUS, SUCS, LUCS, PRIVATE SCHOOLS,
14 
COLLEGES AND UNIVERSITIES, AND GOVERNMENT
15 
ACADEMIC TRAINING INSTITUTIONS IN WHICH THE
16 
SSFS AND THE SSF-FAB LABS ARE SITUATED, SHALL
17 
SUBMIT AN ANNUAL PROGRESS REPORT TO CONGRESS
18 
DETAILING THE EFFECTIVENESS AND/OR IMPACT OF
19 
THE SSFS, WHICH SHALL INCLUDE THE BUDGET
20 
UTILIZATION OF THE PROJECT, ADDITIONAL JOBS
21 
AND INCOME GENERATED, INDUSTRY ENGAGEMENT,
22 
TECHNOLOGY TRANSFER, AND OVERALL GROWTH OF
23 
THE BUSINESSES WHICH AVAILED OF THE
24 
FACILITIES."
25 
Sec. 2. Implementing Rules and Regulations. - Within three (3) months from
26 
the effectivity of this Act, the DTI shall promulgate the necessary implementing rules
27 
and regulations for the institutionalization and establishment of the SSFs, including
28 
the guidelines for the partnership with the cooperators, SUCs, LUCs, private schools,
29 
colleges, and universities, and government academic training institutions where the
30 
SSFs and SSF-Fab Labs will be established.
31 
Sec. 3. Appropriations. - The amounts necessary to carry out the
32 
implementation of this Act shall be charged against the current budget of DTI.


1 
Thereafter, the funds necessary for the continuous implementation of this Act shall be
2 
included in the annual General Appropriations Act (GAA).
3 
Sec. 4. Separability Clause. - If any portion or provision of this Act is declared
4 
unconstitutional, the remainder of this Act or any provision not affected thereby shall
5 
remain in full force and effect.
6 
Sec. 5. Repealing Clause. - All laws or parts thereof, decrees, orders, rules, and
7 
regulations inconsistent with the provisions of this Act are hereby repealed or modified
8 
accordingly.
9 
Sec. 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
10 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,