Senate Offire of the Gertetary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session 25 AUG 27 A9:17 SENATE RECEIVED BY: 1254 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 growth 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 institutionalize 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 SS 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
Senate Ofter of thic docentary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) AUG 27 A9:18 SENATE RECEIVED BY: 1254 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:
Section 1. Republic Act No. 6977, as amended by Republic Act No. 9501, is
2 hereby further amended by inserting new Sections 16 and 17 to read as follows, and 3 renumbering the succeeding sections accordingly: "SEC. 16. ESTABLISHMENT OF SHARED SERVICE FACILITIES (SSF) FOR MSMES. - TO ADDRESS PRODUCTION VALUE CHAIN GAPS, FOSTER INNOVATION, AND STRENGTHEN THE CAPACITY OF MSMES TO DEVELOP AND DELIVER SOPHISTICATED AND DIVERSE PRODUCTS AND SERVICES, THE SHARED SERVICE FACILITIES (SSF) PROGRAM OF THE DEPARTMENT OF TRADE AND INDUSTRY (DTI) IS HEREBY INSTITUTIONALIZED. THE SSF PROGRAM SHALL INVOLVE THE CREATION OF COMMON SERVICE FACILITIES OR PRODUCTION CENTERS FOR SPECIFIC PROCESSES,
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.
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
(F) PARTNER WITH OTHER GOVERNMENT AGENCIES, IF NEEDED, TO HELP ENSURE THE SUCCESS OF THE PROJECTS: PROVIDED, FURTHER, THAT THE DTI SHALL ENSURE THAT THE SSFS AND SSF-FAB LABS CREATED UNDER THIS ACT ARE CONSISTENT WITH THE NATIONAL INNOVATION AGENDA AND STRATEGY DOCUMENT.
SEC. 17. MONITORING OF PRODUCTIVITY
OUTCOMES. - THE DTI, IN COORDINATION WITH THE CONCERNED COOPERATORS, LGUS, SUCS, LUCS, PRIVATE SCHOOLS, COLLEGES AND UNIVERSITIES, AND GOVERNMENT ACADEMIC TRAINING INSTITUTIONS IN WHICH THE SSFS AND THE SSF-FAB LABS ARE SITUATED, SHALL SUBMIT AN ANNUAL PROGRESS REPORT TO CONGRESS DETAILING THE EFFECTIVENESS AND/OR IMPACT OF THE SSFS AND SSF-FAB LABS WHICH SHALL INCLUDE THE BUDGET UTILIZATION OF THE PROJECT, ADDITIONAL JOBS AND INCOME GENERATED, INDUSTRY ENGAGEMENT, TECHNOLOGY TRANSFER, AND OVERALL GROWTH OF THE BUSINESSES WHICH AVAILED OF THE FACILITIES.
Sec. 2. Implementing Rules and Regulations. - Within three (3) months from
the effectivity of this Act, the DTI shall promulgate the necessary implementing rules and regulations for the institutionalization and establishment of the SSFs including the guidelines for the partnership with the cooperators, SUCs, LUCs, private schools, colleges and universities, and government academic training institutions where the SSFs and SSF-Fab Labs will be established.
Sec. 3. Appropriations. - The amounts necessary to carry out the
implementation of this Act shall be charged against the current budget of DTI. Thereafter, the funds necessary for the continuous implementation of this Act shall be included in the annual General Appropriations Act (GAA).
Sec. 4. Separability Clause. - If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in full force and effect.
Sec. 5. Repealing Clause. - All laws or parts thereof, decrees, orders, rules and
regulations inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation. Approved,