Article 136Labor and Agrarian Laws and Social Legislation, p. 136

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

through their national, regional and provincial offices

shall, to the best of their efforts and in coordination with

local government units, provide the necessary support

and assistance to MSMEs. (as amended by RA No 9501)

(d) Decentralization. - The State shall accelerate the

decentralization process by establishing regional and

provincial offices in order to enhance and attain greater

efficiency in the provision of services to the countryside

and the implementation of this Act, in coordination with

local government units. To this end, the government

agencies shall effect a substantial delegation of authority

to their regional and provincial offices to make decisions,

particularly in the registration of beneficiaries of this law,

qualification for availment of benefits, accreditation of

private voluntary organizations, industry associations and

cooperatives, and to resolve complaints for violation of

applicable laws. (as amended by RA No 8289)

Section 6. Micro, Small and Medium Enterprises

Development Plan (MSMEDP) . - The President shall

approve a six-year micro, small and medium enterprises

development plan prepared by the Department of Trade

and Industry (DTI) which shall form part of the Medium

Term Philippine Development Plan (MTPDP). It shall be

formulated

in

consultation

with

the

private

sector,

validated

and

updated

semestrally.

Such

plan

shall

include

a

component

on

a

micro

credit

financing

scheme. (as created by RA No 9501)

CHAPTER II

Section

7.

Creation

of

a

Small

and

Medium

Enterprise Development Council . — The existing Small

and Medium Enterprise Development Council, which was

created

by

Republic

Act

No. 6977, as amended by

Republic Act No. 6977, as amended by Republic Act No.

8289, shall be strengthened to effectively spur the growth

and development of MSMEs throughout the country, and

to carry out the policy declared in this Act and shall now

be known as the Micro, Small and Medium Enterprise

development (MSMED) Council. The Council shall be

attached to the Department of Trade and Industry and

shall be constituted within sixty (60) days after the

approval of this Act. (as amended by RA No 9501)

The Council shall be the primary agency responsible

for the promotion, growth and development of small and

medium enterprises in the country by way of facilitating

and closely coordinating national efforts to promote the

viability and growth of small and medium enterprises,

including assisting relevant agencies in the tapping of

local and foreign funds for small and medium enterprise

development, as well as promoting the use of existing

programs, as well as seeking ways to maximize the use of

our labor resources. (6a) (as amended by RA No 8289,

renumbered by RA No 9501)

Section 7-A. Composition . — The Council shall be

headed

by

the

Secretary

of

Trade and Industry as

Chairman, and may elect from among themselves a

Vice-chairman to preside over the Council meetings in

the absence of the Chairman. The members shall be the

following:

a) Secretary of Agriculture;

b) Secretary of the Interior and Local Government;

c) Secretary of Science and Technology;

d) Secretary of Tourism;

e) Chairman of Small Business Corporation;

f) Three (3) representatives from the MSME sector to

represent Luzon, Visayas and Mindanao;

g) One representative from the labor sector, to be

nominated by accredited labor groups; and

h) A representative from the private banking sector;

to serve alternately among the Chamber of Thrift Banks;

the Rural Bankers' Association of the Philippines (RBAP);

and the Bankers’ Association of the Philippines (BAP).

All members of the Council so appointed, except

from the ex officio members, shall serve for a term of

three (3) years. The person so appointed to replace a

member who has resigned, died, or been removed for

cause shall serve only for the unexpired portion of the

term.

The private sector members of the Council shall

receive per diem of Two thousand pesos (P2,000) per

meeting, for a maximum of twenty-four (24) meetings per

year, which per diem may be adjusted by the MSMED

Council as appropriate.

The Council may call upon the participation of any

national or local government agency, association of local

government officials or private sector organization in its

deliberations especially when such agency or private

sector or organization in its deliberations especially when

such agency or private sector organizations directly or

indirectly concerned with and/or affecting the growth

and development of MSMEs in any particular area or

manner.

The Council may create an Executive Committee of

five (5) members elected by the Council from among

themselves

or

their

designated

permanent

representatives,

with

at

least

two

(2)

members

representing the private sector, and with authority to act

for and on behalf of the Council during intervals of

council

meetings,

and

within

the

specific

authority

granted by the Council.

(7a) (as amended by RA No 8289, 9501)

Section 7-B. Powers and Functions . — The MSMED

Council shall have the following powers, duties and

functions:

a) To help establish the needed environment and

opportunities conducive to the growth and development

of the MSME sector;

b) To recommend to the President and the Congress

all policy matters affecting MSMEs;

c) To coordinate and integrate various government

and

private

sector

activities

relating

to

MSME

development;

d) To review existing policies of government agencies

that would affect the growth and development of MSMEs

and recommend changes to the President and Congress

through the Committee on Economic Affairs of the

Senate

and

the

Committee

on Small Business and

Entrepreneurship

Development

of

the

House

of

Representatives. whenever deemed necessary. This shall

include efforts to simplify rules and regulations, as well as

review of the applicability in the registration, financing,

and other activities relevant to MSMEs the result shall be

included

in

the

annual

report

to

be

submitted

to

Congress;

e) To monitor and determine the progress of various

agencies geared towards the development of the sector.

This shall include overseeing, in coordination with local

government units and the Department of Interior and

Local

Government

as

well

as

private

sector

groups/association, the development among MSMEs;

g) To provide the appropriate policy and coordinative

framework in assisting relevant government agencies, in

coordination

with

the

NEDA

and

the

Coordinating

Council for the Philippine Assistance Program, as may be

necessary, in the tapping of local and foreign fund's for

MSME development;

h) To promote the productivity and viability of MSMEs

by way of directing and/or assisting relevant government

agencies and institutional at the national, regional and

provincial level towards the:

1) Provision of business training courses, technical

training

for

technicians and skilled laborers and

continuing skills upgrading programs;

2)

Provision

of

labor-management

guidance,

assistance

and

improvement

of

the

working

conditions of employees in MSMEs;

© Compiled By RGL

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