The Department of Trade and Industry (DTI), Department of Finance (DOF), World Bank and KfW Development Bank marked an important milestone in the development of the SME COMPETE+ Project with the ceremonial exchange of the grant facility to support the project’s preparatory phase.
The grant will finance key project preparation activities to ensure that SME COMPETE+ is fully developed and ready for implementation. These activities include technical studies, detailed project design, implementation planning and institutional strengthening measures necessary to ensure that the project is technically robust, economically sound and ready for rollout.
Trade and Industry Secretary Cristina A. Roque welcomed the support of the World Bank and KfW Development Bank, emphasizing the importance of investing in project preparation to maximize 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.
Secretary Roque also thanked the Department of Finance for its support in advancing the initiative.
“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.”
“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 expressed its appreciation to KfW Development Bank for providing grant support for project 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 a flagship initiative designed to support Philippine small and medium enterprises (SMEs) in meeting international quality standards, adopting productivity-enhancing technologies, accessing financing and strengthening linkages with domestic and global markets. The project seeks to address persistent barriers to SME growth, including challenges related to certification, standards compliance, market access and investment financing.
The project will provide a coordinated package of support through advisory services, matching grants, loan financing, supplier and exporter upgrading programs, quality infrastructure investments and digital platforms. 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 development, SME COMPETE+ is also expected to strengthen the Philippines’ attractiveness as an investment destination. Through its supplier development initiatives, the project will help build a stronger pool of local enterprises capable of meeting the requirements of multinational companies and large domestic firms. This, in turn, will support the development of more resilient local supply chains and deeper linkages between foreign investors and Philippine enterprises.
At its core, SME COMPETE+ is about strengthening the growth and competitiveness of Philippine exporters and suppliers—the foundations of a stronger, more resilient, and more inclusive economy. By helping enterprises upgrade their capabilities and connect to higher-value markets, the project will support the country’s broader goals of export expansion, investment attraction, job creation and industrial development.
Once implemented, SME COMPETE+ is expected to help achieve 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 both domestic and international markets.
