A BILL proposing to make permanent a Department of Trade and Industry (DTI) program building common production facilities for small businesses has been filed at the House of Representatives.
House Bill No. 8421 backs the construction of shared service facilities (SSFs) to strengthen the production capacity of micro, small and medium enterprises (MSMEs).
SSFs are expected to “address the gaps in the production value chain, promote innovation among MSMEs and enhance their capacities to produce and offer sophisticated and diverse products and services,” Antique Rep. Antonio B. Legarda, Jr. said in the bill.
The measure amends Republic Act (RA) No. 6977 or the Magna Carta for Small Enterprises, as earlier amended by RA 9501 or the Magna Carta for MSMEs.
The DTI’s SSF program was launched in 2013, setting up communal centers housing machinery and equipment for use by MSMEs.
Under the program, the government has funded the creation of 3,249 facilities — assisting over 500,000 MSMEs — and generating 200,000 jobs, the DTI said in its website.
The DTI added that SSFs have since assisted food, coffee, cacao, dairy, coconut, abaca, bamboo, metal, rubber, gifts, décor and warehouse companies, among others.
The measure aims to establish SSF-fabrication laboratories (SSF-fab labs) in strategic location in each province to assist MSMEs in manufacturing their products.
The SSF-fab labs will be attached to state and private colleges and universities as well as government academic training institutions.
“There is a need to strengthen this program by formally institutionalizing the same and incorporating it within the framework of the Magna Carta for Small Enterprises,” Mr. Legarda said.
Funding will come from the national budget.
The Senate in May passed on third and final reading a similar measure.
MSMEs account for 99.58% of businesses in the Philippines, according to the Philippine Statistics Authority (PSA).
The sector created 5.46 million jobs and generated sales of P2.09 billion in 2021, the PSA added. — Beatriz Marie D. Cruz