DTI, partners advance SME COMPETE+ preparation

MANILA — The Department of Trade and Industry (DTI), the Department of Finance (DOF), the World Bank and KfW Development Bank have advanced preparations for the SME COMPETE+ Project following the ceremonial exchange of a grant facility that will finance the initiative’s preparatory phase.

The grant will support key pre-implementation activities, including technical studies, detailed project design, implementation planning and institutional strengthening measures. According to the DTI, these activities are intended to ensure the project is technically robust, economically sound and ready for rollout.

Trade Secretary Cristina A. Roque welcomed the support from the World Bank and KfW Development Bank, saying thorough project preparation is essential to maximizing the initiative’s 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,” the Secretary said.

Roque also acknowledged the Department of Finance’s role in advancing the project.

“The Department of Finance has been a steadfast partner in bringing this project forward. Today’s milestone reflects our whole-of-government commitment to creating greater opportunities for Filipino enterprises to participate in domestic and global value chains.”

Finance Secretary Frederick D. Go said the project is expected to improve the competitiveness of Philippine small and medium enterprises (SMEs) while contributing to broader economic development.

“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. 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,” Finance Secretary Frederick D. Go said.

The DTI also thanked KfW Development Bank for providing grant support that will fund the project’s preparation.

“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,” Secretary Roque added.

SME COMPETE+ is the Philippine government’s flagship initiative aimed at helping SMEs improve their competitiveness by meeting international quality standards, adopting productivity-enhancing technologies, accessing financing and strengthening links with domestic and global markets.

The project seeks to address long-standing constraints to SME growth, including challenges involving certification, standards compliance, market access and investment financing.

Under the program, participating enterprises will receive a coordinated package of support that includes advisory services, matching grants, loan financing, supplier and exporter upgrading programs, quality infrastructure investments and digital platforms.

The DTI said these interventions are expected to increase SME revenues, expand export participation, facilitate entry into new markets and strengthen integration into domestic and global value chains.

Beyond export promotion, the agency said SME COMPETE+ is also expected to enhance the Philippines’ attractiveness as an investment destination by strengthening supplier development initiatives. The project aims to build a larger pool of local enterprises capable of meeting the requirements of multinational companies and major domestic firms, helping create more resilient local supply chains and stronger linkages between foreign investors and Philippine businesses.

The government said the initiative is designed to strengthen the competitiveness of Philippine exporters and suppliers by helping enterprises upgrade their capabilities and connect to higher-value markets, supporting broader goals of export expansion, investment attraction, job creation and industrial development.

Once implemented, SME COMPETE+ is expected to contribute to the objectives of the Philippine Development Plan, the Philippine Export Development Plan, the MSME Development Plan and the Tatak Pinoy Strategy by enabling more Filipino enterprises to compete successfully in domestic and international markets.

SMEs account for more than 99% of business establishments in the Philippines and play a significant role in employment generation, making government programs that improve productivity, market access and export readiness central to the country’s long-term economic growth strategy. The World Bank and KfW Development Bank have supported similar private sector development and competitiveness initiatives in developing economies through financing, technical assistance and institutional capacity-building.