Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
INTRODUCED BY REP. HARRIS CHRISTOPHER M. ONGCHUAN 
EXPLANATORY NOTE 
Micro, small and medium enterprises (MSMEs) comprise a large chunk of the 
Philippine economy. Accounting for roughly 35.7% of the country’s Gross Domestic 
Product (GDP) and generating around 5.7 millions jobs in 2018 according to the 
Department of Trade and Industry (DTI). In its pursuit for economic growth, the 
national government must put its focus on the development of MSMEs, especially 
those situated in rural communities. 
This proposed legislation aims to utilize a currently existing partnership 
between Local Government Units (LGUs) and the DTI called One Town, One Product 
(OTOP), which aims to develop local industries and maximize their profits. The 
program will offer various forms of assistance to beneficiaries such as product 
development, capacity building, quality control, and market access. Furthermore, it 
will cover a wide range of indigenous industries such as agriculture, handicrafts, food 
processing, and services. 
In the 18th Congress, this bill was filed by Rep. Argel Joseph T. Cabatbat and 
Rep. Loren Legarda. It was approved by the House on Third Reading, and was 
transmitted to the Senate. 
In view of the foregoing, the passage of the bill is earnestly sought.  
 HARRIS CHRISTOPHER M. ONGCHUAN 
August 30, 2022
8:02 am
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 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by Representative 
HARRIS CHRISTOPHER M. ONGCHUAN 
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 House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "OTOP Philippines 
Act" 
SEC. 2. Declaration of Policy. - 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 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 further provide adequate and effective support 
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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 
Program. - 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 the utilization of local skills and talents. 
 
SEC. 5. Program Components. - The Department of Trade and Industry 
(TI), in partnership with the LGUs, shall provide a comprehensive package of 
assistance to TOP Philippines Program beneficiaries, such as the following: 
(a) Product Development, including: 
(i) 
Product Design - design assistance to new products, product 
adaptation, product diversification, and expansion of existing product 
lines: 
(ii) 
Packaging and Labeling assistance to new packaging, improvement of 
package design, or labeling; 
(iii) 
Technology Updating - conduct workshops on new technology 
procedures, materials, and processing to increase production quality 
and quantity; and 


(iv) 
Product Enhancement - provide seminars to increase design awareness 
and appreciation of product or merchandise development and the 
industrial design profession. 
(b)  Capacity Building shall be provided through training opportunities focusing 
on improving the human aspect of OTOP Philippines, including business 
skills training and business counseling: 
(c) Standards and Market Compliance where beneficiaries shall be trained and 
capacitated to observe standards and comply with the requirements of DTI-
Bureau of Philippine Standards, Food and Drug Administration, and the 
Intellectual Property Office of the Philippines, and other concerned 
government agencies. Monitoring and evaluation schemes shall be developed 
and maintained to ensure that products under the OTOP Philippines conform 
to these standards; and 
(d) Market Access and Product Promotion where beneficiaries shall receive 
support in market access and promotion of products across different 
platforms. These platforms may include multimedia advocacy campaigns, 
trade fairs, and OTOP Philippines Hubs.  
 
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 and Fashion/Creative Artisanal Products such as gifts, souvenir items, 
furniture, ornaments, houseware, garments, and textiles; 
(d) Processed Food such as fruits and nuts, local delicacies, and kakanin (sticky 
rice cakes), juices, wines, tea, and other beverages, pastries and baked goods, 
preserved food sauces, cakes, and other desserts products, food supplements, 
and culinary-based speciality products; and 
(e) Skills-based Services and other Products such as hilot 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 Hubs.  
 
SEC. 9. Beneficiaries. - The regional and provincial offices of the DTI shall, in 
cooperation with the concerned LGUs, determine the beneficiaries of the OTOP 
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 (CDA); 
(b) Department of Interior and Local Government (DILG); 
(c) Technical Education and Skills Development Authority (TESDA); 
(d) Department of Science and Technology (DOST); 
(e) Department of Agriculture (DA); and 
(f) Department of Tourism (DOT). 
 
SEC. 12. Appropriations. – The amount necessary to carry out the initial 
implementation of this Act shall be sourced from the current budget of the DTI. 
Thereafter, such sums as may be necessary for the continued implementation of this Act 
shall be included in the succeeding General Appropriations Act. 
SEC. 13. Implementing Rules and Regulations. – The DTI, within sixty (60) 
working days from the effectiveness of the Act, in coordination with the other 
implementing agencies, shall formulate and promulgate the necessary rules and 
regulations to effectively implement the provisions of this Act. 
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 Clause. – This Act shall take effect fifteen (15) days from the 
date of publication in the Official Gazette or any newspaper of general circulation. 
 
Approved.