Executive Order No. 0005 s. 2026

Bangsamoro Autonomous Region in Muslim Mindanao Bangsamoro Government Center, Governor Gutierrez Avenue, Rosary Heights VII, Cotabato City 9600 OFFICE OF THE CHIEF MINISTER Republir af the Hhilippines

EXECUTIVE ORDER NO. 0 0 0 5

Series of 2026

AN ORDER TO PROMOTE, DEVELOP AND ASSIST MICRO, SMALL AND MEDIUM

SMALL, AND MEDIUM ENTERPRISES DEVELOPMENT (MSMED) COUNCIL AND SCALE ENTERPRISES THROUGH THE CREATION OF THE REGIONAL MICRO,

MANDATING THE FORMULATION OF THE BANGSAMORO MSME

DEVELOPMENT PLAN

especially the underprivileged; economy, to wit: a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and service produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, WHEREAS, the Constitution of the Philippines provides for the goals of national

economy and all regions of the country the opportunity to develop; WHEREAS, in the pursuit of such goals, the Constitution gives all sectors of the

that the Constitution encourages to be developed for the economic growth of the country; WHEREAS, the Micro, Small, and Medium Enterprises (MSMEs) is one of the sectors

to the Bangsamoro Autonomous Region in Muslim Mindanao and gives recognition to the private sector as mover of trade, commerce, and industry; WHEREAS, the Bangsamoro Organic Law (Republic Act No. 11054) gave autonomy

development of MSMEs; the region, the Bangsamoro Government encourages and supports the building up of entrepreneurial capability in the region and recognizes, promote, protect, and support the WHEREAS, in order to achieve equity, social justice, and economic development in

and mandate the formulation of the Bangsamoro MSME Development Plan to serve as the comprehensive framework for MSME development in the Bangsamoro Autonomous Region; Bangsamoro Organic Law, there is a need to create a Bangsamoro Regional MSMED Council WHEREAS, premises considered, and consistent with the Constitution and the

Cabinet approved in principle this Executive Order creating the Regional Micro, Small, and Medium Enterprises Development (MSMED) Council and mandating the formulation of the Bangsamoro MSME Development Plan as a Cabinet-supported measure; WHEREAS, during the 81st Cabinet Meeting held on 4 May 2026, the Bangsamoro

Autonomous Region in Muslim Mindanao, by virtue of the powers vested in me by the Constitution, Republic Act No. 11054, and existing laws, do hereby order: NOW THEREFORE, I, ABDULRAOF A. MACACUA, Chief Minister of the Bangsamoro

rural/agri-based enterprises, shall ensure the MSMEs' continuing viability and growth by: development of Bangsamoro MSMEs in all productive sectors of the economy particularly Government, in the promotion, support, strengthening and encouraging the growth and SECTION 1. Promotion of Micro, Small, and Medium Enterprises. The Bangsamoro

a) intensifying and expanding programs for training in entrepreneurship and for skills development for Iabor: b) facilitating their access to sources of funds; C assuring them access to a fair share of governments contracts and related

e) instituting safeguards for the protection and stability of the credit delivery d) complementing and supplementing financing programs for MSMEs and doing incentives and preferences; away with stringent and burdensome collateral requirements that small entrepreneurs invariably find extreme difficulty complying with;

g) promoting linkages between large and small enterprises, and by encouraging the h) making the private sector a partner in the task of building up MSMEs through the f raising government efficiency and effectiveness in providing assistance to MSMEs throughout the region, at the least cost; promotion and participation of private voluntary organizations viable industry system; establishment of common service facilities;

assuring a balance and sustainable development through the establishment of a feedback and evaluation mechanism that will monitor the economic contributions as well as bottlenecks and environmental effects of the development of MSMEs. associations, and cooperatives; and

MSMEs shall be defined as any business activity or enterprise engaged in industry. corporation whose total assets, inclusive of those arising from loans but exclusive of the land agribusiness and/or services, whether single proprietorship, cooperative, partnership or SECTION 2. Micro, Small and Medium Enterprises (MSMEs) as Beneficiaries. -

value falling under the following categories: on which the particular business entity's office, plant and equipment are situated, must have

micro: not more than P3,000,000

small: P3,000,001 - 15,000,000

medium: P15,000,001 - P100,000,000

variables, including the number of employees, equity capital, and asset size, in formulating taking into account inflation, prevailing economic conditions, applicable national standards, and relevant Bangsamoro laws. The Council may likewise consider other appropriate its recommendation. The foregoing definitions shall be subject to periodic review by the MSMED Council,

recommended by the Council for approval by the Chief Minister and shall take effect upon its publication in accordance with applicable laws. Any proposed adjustment to the MSME definitions or threshold values shall be

graduate from one category to the next or even higher category. as a whole, there shall be set and implemented other plans and programs varied and distinct from each other, according to the specific needs of each sector, encouraging MSMEs to The Council shall ensure that notwithstanding the plans and programs set for MSMEs

Page 2 of 8

counseling, incentives and promotion under this Eo, businesses falling under the above definition must be: SECTION 3. Eligibility for Government Assistance.- To qualify for assistance.

a) duly registered with the appropriate agencies as presently provided by law: Provided. the municipal or city treasurer shall be deemed sufficient compliance with this that in the case of micro enterprises as defined herein, registration with the office of

requirement:

b) one hundred percent (100%) owned, capitalized by Filipino citizens, whether single proprietorship or partnership. If the enterprise is a juridical entity, at least sixty percent (60%) of its capital or outstanding stock must be owned by Filipino citizens;

c) a business activity within the major sectors of the economy, namely; industry, trade agricultural produce; and services, including the practice of one's profession, the operation of tourism-related business activity involving the manufacturing, processing, and/or production of establishments, and agri-business, which for purposes of this Eo refers to any

d) it must not be a branch, subsidiary or division of a large-scale enterprise.

However, this requirement shall not preclude MSMEs from accepting subcontracts

activities with other MSMEs. and entering into franchise partnership with large enterprises or from joining in cooperative

liability under existing laws. misrepresentation for the purpose of availing the benefits under this EO shall be immediately disqualified as a beneficiary, without prejudice to any administrative, criminal or civil Any MSME, its directors, officers or agents, found to have committed fraud or

competitiveness and value-for-money procurement, Bangsamoro Government agencies are encouraged, whenever practicable and legally permissible to provide MSMEs with procurement packaging, supplier development programs, and other lawful mechanisms. opportunities to participate in government procurement through capacity-building, Subject to applicable procurement law, rules, and principles of transparency.

Bangsamoro Government shall be guided by the following principles: SECTION 4.Guiding Principles. - To set the pace for MSME development, the

(a) Minimal set of rules and simplification of procedures and reguirements. - All

registration, availment of financing and accessing other government services and government agencies having to do with small enterprises shall pursue stability of shall see to it that procedural rules and requirements, within their respective offices in coordination with other agencies, are minimized in the act of assistance. rules and to encourage entrepreneurial spirit among the citizenry. The agencies

(b) Role of the private sector. - In order to hasten growth and expansion of small and encourage private sector participation, the Council, in consultation with the to small enterprises. The Government shall encourage the organization and medium enterprises, the private sector throughout the country shall be government programs for small and medium enterprises strictly in accordance with the law, and consistent with the attainment of the purposes hereof. To concerned sector, may recommend simplified procedure and localized incentives encouraged to assist in the effective implementation of this Act by participating in

Page 3 of 8

establishment of small and medium enterprise industry associations at the local and regional levels preferably unified under a national federation/association.

(c) Coordination of government efforts. Government efforts shall be coordinated to achieve coherence in objectives. All appropriate offices, particularly those under necessary support and assistance to MSMEs. Management (MFBM), Ministry of Environment, Natural Resources, and Energy Science and Technology (MOST), Ministry of Interior and Local Government Bangsamoro Information Office (BIO), and their provincial offices shall, to the best the Ministry of Trade, Investments, and Tourism (MTIT), Ministry of Agriculture Fisheries and Agrarian Reform (MAFAR), Ministry of Finance, Budget and and Communications (MOTC), Ministry of Public Works (MPW), Ministry of of their efforts and in coordination with local government units, provide the (MENRE), Ministry of Labor and Employment (MOLE), Ministry of Transportation (MILG), as well as the Bangsamoro Planning and Development Authority (BPDA],

(d) Decentralization. - The Bangsamoro shall accelerate the decentralization process applicable laws. by establishing provincial offices in order to enhance and attain greater efficiency in the provision of services to the countryside and the implementation of this E0 in coordination with local government units. To this end, the government agencies for availment of benefits, accreditation of private voluntary organizations) industry associations and cooperatives, and to resolve complaints for violation of shall effect a substantial delegation of authority to their provincial offices to make decisions, particularly in the registration of beneficiaries of this law, qualification

financing scheme. The Chief Minister shall approve a six-year micro, small and medium enterprises Development Plan. It shall be formulated in consultation with the private sector, validated. reviewed and updated on its midterm. Such plan shall include a component on a micro credit development plan prepared by the MSMED Council which shall form part of the Bangsamorc SECTION 5. Micro, Small and Medium Enterprises Development Plan (MSMEDP). -

(MSMED) to effectively spur the growth and development of MSMEs throughout the attached to the MTIT and shall be constituted within sixty (60) days after the approval of this EO. There shall be established a Micro, Small and Medium Enterprise Development Council Bangsamoro Region, and to carry out the policy declared in this Eo. The Council shall be SECTION 6. Micro, Small and Medium Enterprise Development (MSMED) Council. -

coordinating regional efforts to promote the viability and growth of small and medium development of small and medium enterprises in the region by way of facilitating and closely The Council shall be the primary agency responsible for the promotion, growth and

programs, as well as seeking ways to maximize the use of our labor resources. 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

following: Chairman, and the Minister of MILG as Vice Chairman. The ex officio members shall be the SECTION 7. Composition. - The Council shall be headed by the Minister of MTIT as

a Minister of MAFAR b. Bangsamoro Director General of BPDA; c.Minister of MoLE; d. Minister of MENRE;

Page 4 of 8

e. f Minister of MOST; Executive. Director of CSEA;

h Minister of MBHTE; Minister of MFBM; I Commissioner of Bangsamoro Youth Commission

Commissioner of Bangsamoro Women Commission

I. Representative from the Business Sector; and m. Representative from State Universities and Colleges. k. Representative from the Banking Sector;

until revoked by competent authority. highest-ranking officials as their permanent alternate. Such designation shall remain in force Ex officio members may choose to designate their Deputies, Director Generals, or next

serve for a term of three (3) years. The person so appointed to replace a member who has term. resigned, died, or been removed for cause shall serve only for the unexpired portion of the The private sector members of the Council, except from the ex officio members, shall

pesos (5,000) 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 private sector members of the Council shall receive per diem of five thousand

agency, association of local government officials or private sector organization in its particular area or manner. deliberations especially when such agency or private sector or organization directly or indirectly concerned with and/or affecting the growth and development of MSMEs in any The Council may call upon the participation of any regional or local government

including the Chairman and Vice Chairman, from the Bangsamoro Government members representatives, 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. elected by the Council from among themselves or*their designated permanent The Council may create an Executive Committee of five (5) members, automatically

powers, duties and functions: SECTION 8. Powers and Functions. - The MSMED Council shall have the following

a. To help establish the needed environment and opportunities conducive to the b. Formulate, adopt, and periodically update the Bangsamoro MSME Development C. To recommend to the Chief Minister and the Parliament all policy matters growth and development of the MSME sector; Plan;

e. To review existing policies of government agencies that would affect the growth d To coordinate and integrate various government and private sector activities To monitor and determine the progress of various Bangsamoro agencies geared towards the development of the sector. This shall include overseeing, in relating to MSME development; and development of MSMEs and recommend changes to the Chief Minister and the Parliament 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 the Office of the Chief Minister; affecting MSMEs;

Page 5 of 8

D To provide the appropriate policy and coordinative framework in assisting coordination with local government units and the MILG as well as private sector groups/association, the development among MSMEs;

h. To promote the productivity and viability of MSMEs through the provision of relevant Bangsamoro government agencies, in coordination with the BPDA, as may be necessary, in the tapping of local and foreign funds for MSME development; agencies and institutions at regional and provincial level, facilitating their efforts administrative direction and/or assistance of relevant Bangsamoro government

towards the: h.2. Provision of labor-management guidance, assistance and improvement of h.1. Provision of business training courses, technical training for technicians h.3. Provision of guidance and assistance regarding product quality/product h.4. Provision of guidance and assistance for the adoption of improved h.5. Provision of assistance in marketing and distribution of products of the working conditions of employees in MSMEs; linkaging and the establishment of shared service facilities such as development and product diversification; technologies for the product development and for increased utilization MSMEs through local supply-demand information, industry and and skilled laborers and continuing skills upgrading programs; of indigenous raw materials; provincial profiles, overseas marketing promotion, domestic market production techniqueand commercialization of appropriate

processing and drying facilities, ice plants, refrigerated "storage, common and/or cooperative bonded warehouse, grains storage, agro- cooperative trucking facilities, etc:

h.9. Provision of bankruptcy preventive measures through the setting up of a h.6. Intensification of assistance and guidance to enable greater access to h.7. To provide effective credit guarantee systems, and encourage the h.8. Provision of concessional interest rates, lower financing fees, which may h.i0. Intensification of information dissemination campaigns and h.11. Support and facilitate qualified MSMEs' access to or availment of tax entrepreneurship education activities; financing, leasing and venture capital activities; credits and fiscal/non-fiscal incentives strictly as provided under applicable Bangsamoro and national laws and implementing rules; and credit through a simplified multi-agency formation of credit guarantee associations, including setting up credit records and information systems and to decentralize loan approval include incentives for prompt credit payments, arrangements tying amortizations to business cash flows, effective substitution of government guarantee cover on loans for the borrower's lack of collateral; mutual relief system for distressed enterprises, and the establishment of measures such as insurance against extraordinary disasters; encourage development of other modes of financing such as Islamic mechanism coordinate with the appropriate offices for information, facilitation, and financing program; to

h.12. Provision of support for product experimentation and research and h.13. Through appropriate government agencies: development activities as well as access to information on compliance; commercialized technologies; and

Page 6 of 8

h.13.I. Provide more infrastructure facilities and public utilities to h.13.HI. Establish, operate, and administer a small business incubation support operations of MSMEs; program in coordination with academic institutions, MOST and provide space for start-up and expanding firms, shared use of other appropriate Bangsamoro government entities that will

h.13.III. Provide local and international network and linkages for MSME essential to high-quality commercial operations, technical equipment and work areas, daily management support services assistance and other services to develop innovative and deserving MSMEs;

h.13.IV. Compile and integrate statistical databank on Bangsamoro development;

h.13.V. Sept-up new MSME centers and revitalize already established MSMEs;

to services such as, but not limited to, the following: MSME centers to provide MSMEs in the provinces easier access a Accept and act on all registration applications of MSMEs;

b. Streamline registration process and facilitate speedy C. Provide all information and referral services it shall registration for the establishment of business enterprises in the region;

C Conduct other programs and development programs, deem necessary or essential to the development and promotion of MSMEs;

marketing, and such other services to support the needs conceptualization management, capacity building, human resources, training, advice, and consultation feasibility, on financing, business

e Provide courses and development programs, training, of MSMEs;

h.13.VI. To submit to the Chief Minister a yearly report on the status of h.13.VII. To coordinate, monitor and assess the implementation of the relevant government policies, programs and legislation as well as MSMEs in the region, including the progress and impact of all private sector activities; MSMEDP, and when necessary, institute appropriate adjustments thereon in the light of changing conditions in both domestic and advice, consultation on business conceptualization and services to support the needs of MSMEs; feasibility, financing, management, and such other

h.13.VIII. Generally, to exercise all powers and functions necessary for the obiectives and purposes of this Eo. international environment; and

and shall have the following duties and functions: Council Secretariat. - The MTIT-BTI is hereby designated to act as the Council Secretariat SECTION 9. Designation of the Bureau of Trade Industry of MTIT (MTIT-BTI) as

a. b. to prepare, in coordination with local government units and/or associations of to coordinate the preparation of position papers and background materials for local government officials, and recommend annual as well as medium-term small and medium enterprises development plans for adoption of the Council;

discussion or approval during Council meetings;

Page 7 of 8

c. to assist the Council in coordinating and monitoring small and medium enterprise policies and programs and activities of all government agencies with respect to

d. to prepare, collate and integrate all inputs to the Council's yearly report on the e. to submit periodic reports to the Council on the progress and accomplishment of status of small and medium enterprises in the region; small and medium enterprises;

its work programs; and f. to perform ad hoc functions as authorized by the Council.

the Council shall have an annual appropriation under the MTIT budget which shall be SECTION 10. Appropriations. - To finance its activities and operational expenses,

provided in the General Appropriation Act starting in the fiscal year immediately following the approval of this EO. The Council may likewise receive grants, donations, or contributions from the private sector and other lawful sources, subject to existing budgeting, accounting and auditing laws, rules and regulations; applicable government policies on gifts, donations, disclosure, and conflict of interest; and the acceptance procedures prescribed by law. All such grants, donations, and contributions accepted for the benefit of the Council shall form part of public funds, shall be received, administered, and accounted for by the Ministry of Trade, Investments, and Tourism in accordance with applicable laws, and shall be subject to audit by the Commission on Audit.

SECTION 11. Rationalization of Existing MSME Programs and Agencies. - The MSMED Council shall conduct continuing review of government programs for MSMEs and submit to the Chief Minister and the Parliament a report thereon together with its policy recommendation.

SECTION 12. Separability Clause, - The provisions of the EO are hereby declared to be separable. If any provision of this EO shall be held unconstitutional, the remainder of the EO not otherwise affected shall remain in full force and effect.

thereof, inconsistent herewith are hereby repealed or modified accordingly. SECTION 13. Repealing Clause. - All executive orders, rules and regulations, or parts

from its publication in the Bangsamoro Official Gazette and in a newspaper of regional SECTION 14. Effectivity Clause. - This EO shall take effect within fifteen (15) days

circulation.

DONE in the City of Cotabato, this pth day of July 2026.

ABDUAR MACACUA

Chie ste

OCM-BARMM AMS-RD A 1113

ASg

3_AUG 2026 O Page 8 of 8