Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos
EXPLANATORY NOTE
Under Article XIII, Section 3 of the Constitution, the State must
promote full employment and equality of employment opportunities for all.
But this is easier said than done when the country is still grappling with the
COVID-19
pandemic
and
has
gone
through
different
levels
of
lockdown/quarantine for over a year.
Our biggest jobs-providing sector—the micro, small, and medium
enterprises (MSMEs)1—suffered massive losses. By April 2020, according to
DTI Secretary Ramon Lopez, 52.66% of MSMEs had “fully stopped or closed
their operations.”2 This resulted in tremendous amounts of workers losing
their wages or even their jobs. As was reported by ADB financial sector
specialist Shigehiro Shinozaki, who surveyed 3,877 MSMEs, 1,804 of which were
from the Philippines:3
In terms of employment, 66.2% of Philippine MSMEs reported
temporary staff cuts[.]
[T]he work-from-home setup is “not a serious option for MSMEs,”
with only 13% to 21% of businesses in the 4 countries adopting the
scheme. This means that small businesses adapted to the pandemic
through
temporary
layoffs,
rather
than
implementing
work-from-home schemes that governments have encouraged.
For wage payments, the Philippines and Indonesia reported that
nearly 60% of MSMEs totally suspended payments.
3
https://www.rappler.com/business/adb-study-philippines-closures-layoffs-peers-coronavir
us-pandemic
2
https://business.inquirer.net/296227/dti-over-half-of-msmes-in-ph-fully-stopped-operatio
ns-due-to-virus-outbreak#ixzz6sqtl7Xu1
1 https://www.dti.gov.ph/resources/msme-statistics/
September 19, 2022
4:24 pm
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Filipinos, either needing additional income from a side business or
trying to bounce back from the loss of paying work, turned to the digital
economy—(1)
selling
goods
and
services
online,
through social media
platforms or shopping apps; or (2) trying to make it as ‘streamers’ or
‘vloggers,’
with
enough
followers
to
monetize
their
uploaded
and/or
livestreamed videos.
These sectors of the digital economy have thus flourished.4 Alongside
them have risen the shopping apps:5
The Philippines experienced the highest increase in the usage of shopping
apps in Southeast Asia in the second quarter [of 2020], according to a
report on the impact of COVID-19 on online shopping behaviors among six
countries in the region.
Data from iPrice Group’s Map of E-commerce report, in collaboration with
App Annie and SimilarWeb, showed the Philippines increased its usage of
shopping apps by 53[%] in the second quarter versus the first quarter this
year. The Philippines has the highest increase in usage of online shopping
apps
in
the
second
quarter among 6 ASEAN countries – Indonesia,
Thailand, Vietnam, Malaysia and Singapore.
According to the report, the total sessions in shopping apps in the country
reached 4.9 billion. It’s expected that e-commerce players in countries that
underwent strict social distancing measures experienced growth in mobile
app usage/downloads, but it is still important to note the country’s
hastened growth.
iPrice hypothesizes that the Philippines is now catching up to its Southeast
Asian peers in terms of digital adaptations, especially since e-Commerce
and digital services were not as accessible in the country. Brick-and-mortar
stores
still
deemed
to
be more profitable. Given the country’s strict
lockdown measures, however, the country’s economy is now forced to adapt.
This can also be seen in data from Statista, which shows that 44 percent of
Filipinos aged 35-44 purchased more online during COVID-19. Moreover,
iPrice’s previous study earlier this year also revealed that Filipinos were
looking up Wifi Adapters 518 percent more as they gear up to spend more of
their time online.
Though the Philippines may not be as savvy with e-commerce as its other
Southeast Asian peers like Indonesia or Singapore, its gradual adaptation is
still pretty evident.
Overall,
the
iPrice
Group’s
Map
of
E-commerce
report revealed that
Southeast Asians are spending more money online this year, comparing the
first half of 2020 with the first half of 2019. x x x
But notably, iPrice said the Philippines had the highest increase in basket
size (57%) compared to its neighbors. In iPrice’s platform alone, Filipinos
now spend about P1,311 month on average.
5 https://mb.com.ph/2020/10/14/ph-posts-highest-growth-in-shopping-apps-usage-in-asean-2/
4 https://www.bworldonline.com/how-online-selling-is-thriving-in-the-new-normal/;
https://insideretail.asia/2020/10/15/online-marketplaces-thriving-in-the-philippines-after-covid-19-crisis/


All
signs
now
point
to
Filipinos continuing to delve into these
online/digital industries long into the future:6
The elevated rates of e-commerce usage during the pandemic look set to
remain a more permanent feature of the retail landscape. According to a poll
released by Visa in July 2020, 73% of Filipino consumers are likely to
sustain or increase their pandemic level of online shopping once restrictions
are eased. [And] 37% of the same consumers reported a preference for the
experience of shopping online versus in store.
Consequently, for the government to successfully ride this new wave
of the digital economy, keep apace with its intricacies, and fully protect the
rights and uphold the interests of not just our online workers, sellers, and
content creators, but also our consumers, we must pass this bill into law.
This bill shall allow the DTI to create the “Online Pinoy” Creative
Market, where Filipino MSME crafters, makers, artists, artisans, performers,
and
service
providers
can
create
a
free
account
for
the
purpose
of
conducting business. “Online Pinoy” will function both as a website and an
app, providing standard store formats for account holders selling physical
products, earning from monetized video streaming or the selling of taped
film, or selling services, such as consultancy, writing, editing, tutoring,
workshop, classes, and training. “Online Pinoy” will also prioritize the
provision and maintenance of safe, secure digital payment mechanisms.
Lastly, “Online Pinoy” shall have an online help desk, giving assistance to
both sellers and service providers and their customers.
It is for the foregoing premises that the approval of this Bill is
earnestly sought.
ALFRED C. DELOS SANTOS
Representative, Ang Probinsyano Party-List
6
https://oxfordbusinessgroup.com/analysis/express-lane-traditional-retailers-shift-online-e-commerce-services-
expand-socially-distanced-world


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos
AN ACT
DIRECTING THE DEPARTMENT OF TRADE AND INDUSTRY (DTI) TO
CREATE AN ONLINE MARKET PLATFORM FOR FILIPINO CREATIVE
ARTS, PRODUCTS, AND SERVICES, TO SUPPORT MICRO, SMALL,
AND MEDIUM ENTERPRISES (MSMEs), ESPECIALLY DURING
THE COVID-19 PANDEMIC, AND PROVIDING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:
SECTION 1. Short Title. –
This Act shall be known as the “Online
Pinoy Creative Market Act.”
SECTION 2. Objectives. – The objectives of this bill are:
(a) To rapidly create a free online market and digital distribution
network
for
Micro,
Small,
and
Medium
Enterprises
(MSMEs)
engaged in Filipino creative products and services;
(b) To provide a digital stage for Filipino performing artists to sell live
events or stream taped concerts, shows, and films;
(c) To provide a means of supplemental or alternative income sources
for Filipinos who have been economically disadvantaged by the
COVID-19 pandemic;
(d) To encourage Filipinos locally and abroad to buy from Filipino
crafters, artisans, makers, artists, and service providers;
(e) For the Department of Trade and Industry (DTI) to provide web
store services and facilities to account holders, for the purpose of
the conduct of business, free of charge; and
(f) For DTI to provide free guidance and online assistance in using the
online market to potential sellers and buyers.
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SECTION 3. Creation of the “Online Pinoy” Creative Market. – The DTI
shall create an online platform that has the capacity to perform the
following functions:
(a) Allowing
Filipino
MSME
crafters,
makers,
artists,
artisans,
performers, and service providers to create a free account for the
purpose of conducting business;
(b) Providing a standard store format for account holders selling
physical products with the following capabilities:
1) Easy upload of merchandise details and inventory tracking;
2) E-commerce
sales
and
payment
mechanism
to
include
cash-on-delivery,
credit
card,
and
other
digital
payment
mechanisms; and
3) Access to accredited logistics and delivery service providers.
(c) Provide and standard store format for account holders earning
from monetized video streaming or the selling of taped film with the
following capabilities:
1) Easy uploading and streaming of videos;
2) Permission granting, control, and tracking of viewership; and
3) E-commerce sales and payment mechanisms include credit
cards and other digital payment mechanisms.
d) Provide
a
standard
store
format
for
account
holders
selling
services, such as consultancy, writing, editing, tutoring, workshop,
classes, and training, with the following capabilities:
1) Provide a digital meeting facility, free of charge to account
holders;
2) E-commerce sales and payment mechanisms include credit
cards and other digital payment mechanisms.
e) Make
the
“Online
Pinoy”
Creative
Market
accessible
via
smartphones; and
f)
Provide an online help desk for both account holders (sellers and
service providers) and their customers.
DTI shall digitally advertise and market the “Online Pinoy” Creative
Market on social media platforms, using a unified marketing campaign.
SECTION 4.
Implementing Rules and Regulations. – The DTI shall
within sixty (60) days from the effectivity of this Act, formulate the necessary
rules and regulations for its effective implementation.
SECTION 5. Separability Clause. – If any provision or part of this Act
is
held invalid or unconstitutional, the remaining provisions or parts
unaffected shall remain in full force and effect.


SECTION
6.
Repealing
Clause.
–
All
laws,
executive
orders,
presidential decrees or issuances, letters of instruction, administrative
orders, rules, and regulations contrary to or inconsistent with the provisions
of this Act are hereby repealed, amended, or modified accordingly.
SECTION 7. Effectivity Clause. – This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in a newspaper of general
circulation.
Approved,