TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
1254
'©ffitP of tlif
25 AUG 27 A9 -17
RECEIVED BY;
S. No.
Introduced by Senator Loren Legarda
AN ACT
INSTITUTIONALIZING THE SHARED SERVICE FACILITIES (SSF) PROJECT 
FOR MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs), 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
The State promotes, supports, and strengthens the grovvth and development 
of micro, small, and medium enterprises, recognizing their central role in employment 
generation, innovation, and inclusive industrialization. Republic Act No. 6977, as 
amended by Republic Act No. 9501, affirms this policy and mandates coordinated 
assistance to MSMEs across productive sectors.
Micro, small, and medium enterprises (MSMEs) are the backbone of the 
Philippine economy. Supporting MSMEs creates widespread benefits—generating jobs, 
increasing productivity, and boosting local economies. However, despite their 
importance, many MSMEs struggle due to limited access to equipment, packaging 
tools, design services, and other facilities needed to improve their products and 
competitiveness.
To help bridge this gap, the Department of Trade and Industry (DTI) launched 
the Shared Service Facilities (SSF) Program in 2013. The program provides common- 
use equipment and technical services to MSMEs through cooperators. Independent 
reviews show the SSF has led to increases in jobs and productivity at a relatively low


cost. However, they also recommend better monitoring and data collection to fully 
measure its long-term impact.
This bill aims to institutionaiize the SSF Program to ensure its continuity, 
improve its implementation, and align it with existing MSME policies, including the 
Magna Carta for MSMEs and the National Innovation Agenda. It encourages placing 
advanced SSF facilities in universities and innovation hubs, following global best 
practices that promote collaboration between MSMEs, schools, and researchers.
Through this measure, we strengthen our commitment to MSMEs and help 
create a more innovative, inclusive, and job-generating economy.
In view of the foregoing, the immediate passage of this measure is earnestly 
sought.
_LOREN LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
1254
25 AUG 27 A9 *18
RECEIVED BY;
S. No.
Introduced by Senator Loren Legarda
AN ACT
INSTITUTIONALIZING THE SHARED SERVICE FACILITIES (SSF) PROJECT 
FOR MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs), 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:
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Section 1. Republic Act No. 6977, as amended by Republic Act No. 9501, is
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hereby further amended by inserting new Sections 16 and 17 to read as follows, and
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renumbering the succeeding sections accordingly:
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"SEC. 16. ESTABLISHMENT OF SHARED SERVICE
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FACILITIES (SSF) FOR MSMES. — TO ADDRESS
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PRODUCTION VALUE CHAIN GAPS, FOSTER
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INNOVATION, AND STRENGTHEN THE CAPACITY OF
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MSMES TO DEVELOP AND DELIVER SOPHISTICATED
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AND DIVERSE PRODUCTS AND SERVICES, THE SHARED
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SERVICE FACILITIES (SSF) PROGRAM OF THE
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DEPARTMENT OF TRADE AND INDUSTRY (DTI) IS
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HEREBY INSTITUTIONALIZED.
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THE SSF PROGRAM SHALL INVOLVE THE
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CREATION OF COMMON SERVICE FACILITIES OR
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PRODUCTION CENTERS FOR SPECIFIC PROCESSES,
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ENABLING MSMES TO ACCESS ADVANCED 
TECHNOLOGIES AND EQUIPMENT THAT WILL ENHANCE 
COMPETITIVENESS, EXPAND MARKET REACH, AND 
INTEGRATE THEM INTO THE GLOBAL SUPPLY CHAIN. 
THE PROGRAM MAY BE IMPLEMENTED IN PARTNERSHIP 
WITH THE DEPARTMENT OF SCIENCE AND TECHNOLOGY 
(DOST), OTHER GOVERNMENT AGENCIES, ACADEMIC 
INSTITUTIONS, LOCAL GOVERNMENT UNITS (LGUS), 
AND PRIVATE ORGANIZATIONS.
FOR PURPOSES OF THIS ACT, 'SHARED SERVICE 
FACILITIES' REFER TO MACHINERY, EQUIPMENT, 
TOOLS, SYSTEMS, ACCESSORIES, AND OTHER 
AUXILIARY ITEMS, AS WELL AS SKILLS AND TECHNICAL 
KNOWLEDGE, PROVIDED BY THE DTI UNDER A 
COLLECTIVE SYSTEM TO TARGET BENEFICIARIES.
THE DTI, IN COORDINATION WITH RELEVANT 
AGENCIES, LGUS, PRIVATE INSTITUTIONS, AND 
STAKEHOLDERS, SHALL ALSO ESTABLISH SSF- 
FABRICATION LABORATORIES (SSF-FAB LABS), 
DEFINED AS ADVANCED SSFS EQUIPPED WITH 
FLEXIBLE, COMPUTER-CONTROLLED TOOLS FOR A 
RANGE OF MATERIALS AND SCALES, IN AT LEAST ONE 
(1) STRATEGIC LOCATION IN EVERY PROVINCE, 
PRIORITIZING THOSE WITHOUT EXISTING FAB LABS.
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 THE DTI FOR 
PROPER MONITORING AND MAINTENANCE.


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PROVIDED, THAT IN GRANTING SSFS AND SSF- 
LABS, THE DTI SHALL:
(A) TIMELY PROCESS 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 APPLICATIONS 
HAS MET ALL THE REQUIREMENTS INCLUDING AMONG 
OTHERS THE CONDUCT OF MARKET STUDIES 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 
WITHIN AND OUTSIDE THE EDUCATIONAL 
INSTITUTIONS;
(E) CLOSELY COORDINATE AND IMMEDIATELY 
ASSIST THE COOPERATORS WITH THEIR ISSUES OR 
CONCERNS REGARDING THE IMPLEMENTATION OF 
THEIR PROJECTS; AND


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(F) PARTNER WITH OTHER GOVERNMENT
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AGENCIES, IF NEEDED, TO HELP ENSURE THE SUCCESS
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OF THE PROJECTS:
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PROVIDED, FURTHER, THAT THE DTI SHALL
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ENSURE THAT THE SSFS AND SSF-FAB LABS CREATED
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UNDER THIS ACT ARE CONSISTENT WITH THE
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NATIONAL INNOVATION AGENDA AND STRATEGY
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DOCUMENT.
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SEC. 17. MONITORING OF PRODUCTIVITY
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OUTCOMES. - THE DTI, IN COORDINATION WITH THE
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CONCERNED COOPERATORS, LGUS, SUCS, LUCS,
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PRIVATE SCHOOLS, COLLEGES AND UNIVERSITIES, AND
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GOVERNMENT ACADEMIC TRAINING INSTITUTIONS IN
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WHICH THE SSFS AND THE SSF-FAB LABS ARE
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SITUATED, SHALL SUBMIT AN ANNUAL PROGRESS
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REPORT TO CONGRESS DETAILING THE EFFECTIVENESS
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AND/OR IMPACT OF THE SSFS AND SSF-FAB LABS
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WHICH SHALL INCLUDE THE BUDGET UTILIZATION OF
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THE PROJECT, ADDITIONAL JOBS AND INCOME
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GENERATED, INDUSTRY ENGAGEMENT, TECHNOLOGY
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TRANSFER, AND OVERALL GROWTH OF THE
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BUSINESSES WHICH AVAILED OF THE FACILITIES.
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Sec. 2. Implementing Rules and Regulations. - Within three (3) months from
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the effectivity of this Act, the DTI shall promulgate the necessary implementing rules
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and regulations for the institutionalization and establishment of the SSFs including the
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guidelines for the partnership with the cooperators, SUCs, LUCs, private schools,
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colleges and universities, and government academic training institutions where the
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SSFs and SSF-Fab Labs will be established.
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Sec. 3. Appropriations. - The amounts necessary to carry out the
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implementation of this Act shall be charged against the current budget of DTI.
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Thereafter, the funds necessary for the continuous implementation of this Act shall be
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included in the annual General Appropriations Act (GAA).


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Sec. 4. Separability Clause. - If any portion or provision of this Act is declared
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unconstitutional, the remainder of this Act or any provision not affected thereby shall
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remain in full force and effect.
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Sec. 5. Repealing Clause. - All laws or parts thereof, decrees, orders, rules and
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regulations inconsistent with the provisions of this Act are hereby repealed or modified
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accordingly.
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Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,