MANILA — President Ferdinand Marcos, Jr. has signed a new law that forms the country's One Town, One Product (OTOP) program which aims to provide support services to micro, small, and medium-sized enterprises.

Republic Act No. 11960 signed on Aug. 24, 2023 seeks to "enable communities to determine, develop, and promote products and services that are rooted in their culture, community resources, creativity, connection, and competitive advantage."

This includes the creation of an OTOP Philippines Trustmark that would show the products under this program are excellent in terms of quality, design, value, and marketability.

Products and services covered under this law are the following:

• Processed foods such as fruits and nuts, local delicacies, juices, wines, tea, and other beverages, pastries and baked goods, preserved food sauces.
• Agricultural-based products such as coffee, cacao, and other agricultural produce, agri-processed products like processed meats, coconut oil, and preserved and processed seafood products.
• Home and fashion, and creative artisanal products like gifts, souvenir items, furniture, ornaments, houseware, garments, fabrics, and textiles/
• Arts and crafts such as coco coir, weaves, bamboo products, paper artistry, and wood.
• 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 cosmetic

Based on the law, those who want to get the OTOP seal of approval must be consistent with the country's culture, community resources, connection to locals, creativity, and competitive advantage.

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Shortlisted OTOP beneficiaries will be provided product development with the help of partner agencies, such as the improvement of product design, packaging and labeling, technology, and product enhancement.

"Eligibility for government assistance which includes a minimal set of rules and simplification of procedures and requirements for government agencies dealing with OTOP beneficiaries and as provided under Section 4 of Republic Act No. 9501," the law read.

"The [Department of Trade and Industry], in coordination with other government agencies, shall also formulate a program to provide the OTOP beneficiaries with easier access to credit or capital infusion for the establishment, development, or growth of their business, if necessary," it added.

DTI has been tasked under the law to create the OTOP Program Management Office which would direct and guide the program on the. national level.

Its organizational structure would be formed by the trade secretary along with the Department of Budget and Management.

Local government units must also create their own OTOP Local Program Office, which would implement and supervise the program at the local level.

"All LGUs shall establish their own LGU OTOP Hub in any location that has high foot traffic preferably in the city or municipal hall or any LOU facility or location that has high foot traffic or is frequented by locals," read the law.

"The DTI, in coordination with the agencies, shall formulate a comprehensive marketing and operations plan for the establishment of the OTOP Philippines Hubs," it added.

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