PHL seeking $305 million from World Bank to fund DTI-led project to raise SME productivity – BusinessWorld Online
THE PHILIPPINES will seek a $305 million from the World Bank to support small and medium enterprise (SME) investments in productivity and quality upgrades, with approval targeted for 2027.
The Philippines COMPETE for SMEs project is estimated to be approved by Feb. 25, 2027, according to a document uploaded to the bank’s website on Jan. 21. The implementing agency is the Department of Trade and Industry (DTI).
The project cost is $330 million, with $25 million to be funded by the government.
The World Bank said the project is designed to help SMEs “export and integrate in global and domestic value chains through investment finance, quality certification, and market connections.”
SMEs account for 63% of total employment in the Philippines and contribute 36% of gross value-added, the bank added.
It also noted constraints on SMEs like the lack of skills, quality certifications, market intelligence, and business connections, as well as long-term finance.
SMEs are also disproportionately affected by gaps in Philippine infrastructure, with 209 of 704 technical testing and analysis firms lacking an accredited personnel certification body.
“Consequently, Filipino conformity assessments lack international recognition, forcing firms to seek services abroad — often at higher cost and longer times,” the World Bank said. — Aubrey Rose A. Inosante