Senator Bong Go filed Senate Bill No. 1777 seeking to institutionalize the Shared Service Facilities (SSF) Program for micro, small, and medium enterprises (MSMEs) by amending Republic Act No. 6977, the Magna Carta for Small Enterprises, as amended by RA 9501, the Magna Carta for Micro, Small, and Medium Enterprises.
The measure aims to make the SSF Program a permanent government undertaking to address persistent production and technology gaps faced by MSMEs, support innovation and value addition, and strengthen their ability to participate in wider markets, including global supply chains.
In the explanatory note of the bill, Go laid out the policy basis for the proposal, emphasizing the economic role of MSMEs and the constraints they continue to face.
“Micro, Small, and Medium Enterprises (MSMEs) serve as the backbone of the Philippine economy.”
The veteran legislator stated that “Micro, Small, and Medium Enterprises (MSMEs) serve as the backbone of the Philippine economy, accounting for the majority of businesses and providing substantial employment opportunities across various sectors,” while also noting that “despite their vital role in national development, many MSMEs continue to face challenges that limit their competitiveness, particularly in access to modern technology, efficient production facilities, and innovative processes.”
The seasoned lawmaker pointed to the existing Shared Service Facilities (SSF) initiative of the Department of Trade and Industry (DTI) as a response to these constraints.
In the explanatory note, he stressed that “to address these constraints and strengthen the productivity of MSMEs, the DTI implemented the Shared Service Facilities Program, a strategic initiative that provides MSMEs access to common service facilities equipped with advanced tools, machinery, and technology.”
According to the senator, these facilities enable enterprises “to improve product quality, increase production efficiency, and comply with market standards both locally and internationally.”
SBN 1777 seeks to institutionalize this program to ensure that its benefits are sustained and expanded nationwide. He stressed that “this proposed measure seeks to institutionalize the Shared Service Facilities Program to ensure its continuity, sustainability, and expansion across the country,” adding that by establishing SSFs as a permanent government program, MSMEs would benefit from “a consistent and well-supported platform for innovation, skills development, and technological upgrading.”
Beyond continuity, the measure is designed to address structural gaps in production and encourage cooperation at the local level.
As stated in the explanatory note, “the institutionalization of the SSF Program aims to close the gaps in the production value chain by creating common service centers that cater to the specific needs of industries and local communities”.
Go further explained that these facilities are intended to “enhance collaboration among MSMEs, cooperatives, and local producers, promoting efficiency and reducing the duplication of costs and efforts.”
He also highlighted innovation and value addition as central objectives of the proposal.
Go wrote that “the measure underscores the importance of fostering innovation and value addition among MSMEs,” explaining that through improved access to equipment and production technologies, enterprises would be able “to develop sophisticated and diverse products and services,” which in turn would strengthen their competitiveness “in both domestic and global markets.”
Partnerships across institutions are likewise a key feature of the proposed framework.
He noted in the explanatory note that “the bill also envisions stronger partnerships between national government agencies, local government units, academic institutions, and private sector organizations to ensure the effective implementation and sustainability of SSF projects”.
Go added that such cooperation is “vital in creating an enabling environment for MSMEs to grow and contribute to inclusive economic progress.”
Under the bill’s substantive provisions, SBN 1777 formally establishes the SSF Program within the Magna Carta for Small Enterprises.
The measure provides for the setting up of common service facilities or production centers that give MSMEs access to better technology and more advanced equipment, with the aim of improving competitiveness and enabling enterprises to move toward wider market participation, including integration into global supply chains.
The bill also defines Shared Service Facilities as the machinery, equipment, tools, systems, accessories, skills, and knowledge provided by the DTI under a combined and collective system for target beneficiaries.
The bill mandates the establishment of SSF-Fabrication Laboratories to be located in at least one strategic area in every province, prioritizing provinces without existing Fab Labs.
In addition, it mandates the establishment of SSF-Fabrication Laboratories, or SSF-Fab Labs, described as high-end facilities equipped with computer-controlled tools, to be located in at least one strategic area in every province, prioritizing provinces without existing Fab Labs.
These laboratories are to be attached to state universities and colleges, local universities and colleges, private higher education institutions, or government academic training institutions for proper monitoring and maintenance.
SBN 1777 outlines specific responsibilities of the DTI in granting and managing SSFs and SSF-Fab Labs, including the timely processing of applications in line with RA 11032, consultation with cooperators, ensuring the suitability of equipment, coordination with host educational institutions on equitable use of facilities, and close assistance to cooperators during project implementation.
The DTI is also directed to ensure that all SSFs and SSF-Fab Labs established under the measure are consistent with the National Innovation Agenda and Strategy Document.
To ensure accountability and assessment of outcomes, the bill requires the DTI to submit an annual progress report to Congress.
This report is to detail the effectiveness and impact of the SSFs and SSF-Fab Labs, including budget utilization, jobs and income generated, industry engagement, technology transfer, and the overall growth of businesses that availed of the facilities.
