THE OF THE 4es. HILIP TWENTIETH CONGRESS OF THE RECEIVED SECRETAR OFFICE REPUBLIC OF THE PHILIPPINES DATE: APR 21.2026 First Regular Session TIME: 3:08PM BY: SENATE BILLS & INDEX 2053 S. No. . Introduced by Senator Camille A. Villar AN ACT INSTITUTIONALIZING THE SHARED SERVICE FACILITIES PROJECT FOR MICRO, SMALL, AND MEDIUM ENTERPRISES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6977, AS AMENDED, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR MICRO, SMALL AND MEDIUM ENTERPRISES" EXPLANATORY NOTE Micro, Small, and Medium Enterprises (MSMEs) account for 99.6% of all business establishments and employ over 67% of the country's workforce. Despite their critical role, MSMEs consistently face significant barriers to growth-particularly the high cost of acquiring modern machinery, equipment, and technology necessary to improve productivity, meet quality standards, and compete in larger markets. The Department of Trade and Industry's Shared Service Facilities (SSF) Project has proven to be an effective intervention, providing MSMEs with shared access to equipment, tools, and systems that would otherwise be unaffordable for individual enterprises. However, the project currently operates on a programmatic basis without statutory foundation, leaving its continuity, funding, and expansion vulnerable to changes in administration and budget priorities. This bill seeks to address these gaps by institutionalizing the Shared Service Facilities Project. As such, the approval of this measure is urgently sought. Camille co muis CAMILLE A. VILLAR
THE TWENTIETH CONGRESS OF THE RECEIVED PHILIPP REPUBLIC OF THE PHILIPPINES ) DATE: First Regular Session TIME: 3:08 PM SENATE BY: BILLS INDEX 2053 S. No. _ Introduced by Senator Camille A. Villar AN ACT INSTITUTIONALIZING THE SHARED SERVICE FACILITIES PROJECT FOR MICRO, SMALL, AND MEDIUM ENTERPRISES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6977, AS AMENDED, 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, is hereby further amended by
2 inserting new Sections 16 and 17 to read as follows, and renumbering the succeeding sections accordingly: "SEC. 16. ESTABLISHMENT OF SHARED SERVICE FACILITIES (SSF) FOR MSMES. - IN ORDER TO ADDRESS THE GAPS IN THE PRODUCTION VALUE CHAIN, PROMOTE INNOVATION AND ENHANCE THE CAPACITIES OF MSMES TO PRODUCE AND OFFER SOPHISTICATED AND DIVERSE PRODUCTS AND SERVICES, THE SHARED SERVICE FACILITIES (SSFs) PROJECT OF THE DEPARTMENT OF TRADE AND INDUSTRY (DTI) IS HEREBY INSTITUTIONALIZED. "THE SSF PROJECT SHALL ENTAIL SETTING UP COMMON SERVICE FACILITIES OR PRODUCTION CENTERS FOR CERTAIN PROCESSES TO GIVE MSMES ACCESS TO BETTER TECHNOLOGY AND MORE SOPHISTICATED EQUIPMENT TO ACCELERATE THEIR BID FOR COMPETITIVENESS AND HELP THEM GRADUATE TO A NEXT LEVEL 'WHERE THEY COULD TAP BETTER AND WIDER MARKETS AND BE INTEGRATED IN THE GLOBAL SUPPLY CHAIN. THE PROJECT MAY BE IMPLEMENTED IN COOPERATION WITH THE DEPARTMENT OF
SCIENCE AND TECHNOLOGY (DOST) AND OTHER GOVERNMENT AGENCIES, ACADEME, LOCAL GOVERNMENT UNITS (LGUS), AND PRIVATE ORGANIZATIONS. "FOR THE PURPOSE OF THIS ACT, SSFs REFER TO MACHINERY, EQUIPMENT, TOOLS, SYSTEMS, ACCESSORIES, AND OTHER AUXILIARY ITEMS, SKILLS, AND KNOWLEDGE THAT ARE BEING PROVIDED BY THE DTI UNDER A COMBINED AND COLLECTIVE SYSTEM TO ITS TARGET BENEFICIARIES. "THE DTI, IN COORDINATION WITH RELEVANT GOVERNMENT AGENCIES, LGUS, PRIVATE INSTITUTIONS, AND STAKEHOLDERS, SHALL ALSO ESTABLISH SSF - FABRICATION LABORATORIES (SSF- FAB LABS), WHICH ARE HIGH-END SSF EQUIPPED WITH AN ARRAY OF FLEXIBLE COMPUTER-CONTROLLED TOOLS THAT COVER SEVERAL DIFFERENT LENGTHS AND SCALE AND VARIOUS MATERIALS, IN AT LEAST ONE (1) STRATEGIC LOCATION IN EVERY PROVINCE TO ASSIST MSMES IN THE MANUFACTURING OF NEEDED ASSETS AND PRODUCTS. THE PRIORITY SHALL BE PROVINCES WITHOUT EXISTING SSF-FAB LABS. "THE SSF-FAB LABS SHALL BE ATTACHED TO STATE UNIVERSITIES AND COLLEGES (SUCS); LOCAL UNIVERSITIES AND COLLEGES (LUCS); PRIVATE SCHOOLS, COLLEGES AND UNIVERSITIES; OR GOVERNMENT ACADEMIC TRAINING INSTITUTIONS IN THE PROVINCE AS DETERMINED BY THE DTI FOR PROPER MONITORING AND MAINTENANCE: PROVIDED, THAT, IN GRANTING SSFS AND SSFFAB LABS, THE DTI SHALL: A) TIMELY PROCESS THE 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 APPLICATION
HAS MET ALL THE REQUIREMENTS INCLUDING THE CONDUCT OF MARKET STUDY 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 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 SSFFAB 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 OR IMPACT OF THE SSF 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 shall be established.
Sec. 3. Appropriations. - The amount necessary for the implementation
of this Act shall be charged against the current year's appropriations of the DTI. Thereafter, such amount shall be included in the annual General Appropriations Act.
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 Clause. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in a newspaper of general circulation. Approved,