The newly enacted One Town, One Product (OTOP) Philippines Act is a monumental milestone for the country’s micro, small and medium enterprises (MSMEs), Senate President Pro Tempore Loren Legarda said on Tuesday, August 29.

Senate President Pro Tempore Loren Legarda (Senate PRIB Photo)

Legarda, principal author and co-sponsor of the bill, said the recent signing into law of Republic Act No. 11960 will provide a boost to MSMEs who are essentially the country’s economic growth drivers.

“The passage of the OTOP Philippines Act is groundbreaking not just in catering to our MSMEs, but it also paves the way for the government to further strengthen its support to all Filipinos by treating this as a strategic tool in establishing a more inclusive economic growth,” Legarda said in a statement.

“This is a clear example of what a whole-of-government and whole-of-nation approach is all about,” she said.

Legarda said the new law will finally provide the needed financial support and capacity building for the sector.

RA 11960 institutionalizes the OTOP program that promotes local products and capacitates the MSMEs through developing indigenous raw materials, utilizing local skills and talents, and featuring local traditions and cultures across the country.

The new law aims to address the gaps in entrepreneurial skills, market compliance to preserve the OTOP brand as a mark of excellence, and access to local and foreign markets.

Under the law, the Department of Trade and Industry (DTI) will serve as the lead agency in crafting a set of criteria for OTOP products that are consistent with cultural values, derived sources from the community, evoke a sense of connection among locals, exemplify Filipinos’ creativity and innovations, among many others.

“The OTOP law is a long time coming. We are now in an era where every role of the Filipino, whether big or small, is deemed crucial toward a progressive nation that we have been advocating ever since,” she said.

“This law assures Filipino local businesses of our continuous commitment to MSMEs in upholding their welfare and growth,” added Legarda.

Legarda is a staunch supporter of Filipino-made products and services, and has consistently promoted local products in every town, emphasizing their contributions to sustainable development, growth and competitiveness of small units of society, the well-being of involved residents, and the quality of the living environment.

The senator has hailed the MSME sector for serving as one of the “backbones of the Philippine economy.”