The grant will support critical pre-implementation activities, including technical studies, detailed project design, implementation planning and institutional strengthening to ensure the flagship program is technically sound, economically viable and ready for rollout.
Project preparation
Trade Secretary Cristina A. Roque said investing in thorough project preparation is essential to maximizing the program's long-term development impact.
"We are grateful to the World Bank for its close collaboration and technical expertise in shaping the SME COMPETE+ Project. The extensive work that has gone into its design gives us confidence that this initiative can significantly accelerate the growth of Philippine exports and strengthen the competitiveness of our enterprises," Roque said in a statement.
She also acknowledged the Department of Finance for helping move the project forward.
Finance Secretary Frederick D. Go said strengthening small and medium enterprises (SMEs) is key to generating jobs, attracting investments and sustaining economic growth.
"Through this project, we are investing in the competitiveness of Filipino businesses, ensuring that they are equipped to participate in domestic and global value chains,” Go said.
“The DOF is proud to support this partnership because empowering our SMEs to become more productive and globally competitive will create better jobs, attract more investments, and sustain long-term economic growth for the benefit of all Filipinos," he added.
Building competitiveness
The DTI also thanked KfW Development Bank for providing grant support that will help ensure the project is fully prepared before implementation.
"The KfW grant will enable us to ensure project preparedness from the outset. It will help us undertake the necessary preparatory work to make SME COMPETE+ shovel-ready while ensuring that project investments are technically feasible, economically viable, and responsive to the needs of Philippine enterprises," Roque said.
SME COMPETE+ is a flagship initiative designed to help Philippine SMEs become more competitive by meeting international quality standards, adopting productivity-enhancing technologies, gaining better access to financing and strengthening links with domestic and overseas markets.
The project seeks to address long-standing barriers that limit SME growth, including certification requirements, compliance with international standards, limited market access and inadequate investment financing.
Coordinated support
Under the program, participating enterprises will receive a coordinated package of assistance that includes advisory services, matching grants, loan financing, supplier and exporter upgrading programs, quality infrastructure investments and digital platforms.
These interventions are expected to help businesses improve productivity, increase revenues, expand export participation and gain entry into new domestic and international markets.
The project is also expected to strengthen the country's investment climate by developing a stronger network of local suppliers capable of meeting the requirements of multinational corporations and large domestic companies.
By improving supplier capabilities, SME COMPETE+ aims to deepen linkages between foreign investors and Philippine enterprises while building more resilient local supply chains.
National goals
Beyond supporting exporters, the initiative is expected to contribute to broader economic development by helping businesses move into higher-value markets, attract investments and create more jobs.
Once implemented, SME COMPETE+ is expected to support the objectives of the Philippine Development Plan, the Philippine Export Development Plan, the MSME Development Plan and the Tatak Pinoy Strategy.—Ed: Corrie S. Narisma
