MANILA, Philippines – The Philippines can learn a lot from South Korea’s industrial policy in terms of integrating small and medium enterprises (SMEs) into crucial growth areas, said Josef Yap, president of the Philippine Institute of Development Studies (PIDS) during last week’s Philippines-Korea Development Cooperation Forum.
Yap said industrial policy can be used to integrate domestic SMEs into major growth areas in the country.
He cited the case of the Republic of Korea which fully integrated its SMEs into the economy.
“While industrialization in the 1970s and 1980s is largely attributed to large-scale enterprises, subcontracting with small and cottage producers was practiced widely especially in later years,” Yap said.
He noted for instance that in the case of the electronics industry, the Korean government formed the domestic equipment and supplies industry to complement the main electronics sector.
“For example, there has been active encouragement of clustering supply firms on the Chonan Second Industrial Complex in Central Korea so that several emerging supply firms such as DNS Korea, Mirae and Posco-Huls are now located there on in its vicinity,” Yap said.
He also said the Philippines could learn from this example by supporting SMEs in the country. One form of support is by enhancing their technological capabilities.
Furthermore, he said the Philippine government could take steps to link multinational corporations and large domestic firms to these SMEs.
The government, for its part, is undertaking steps to help SMEs cope with the global financial turmoil.
Last year, the Philippines and other leaders of the Asia Pacific Economic Cooperation (APEC) committed to sustain their support for the development of SMEs in the region.
SMEs have been seeking government support in the form of better access to financing with export credit agencies, international financing institutions and private banks.
SMEs also need help in product development and in marketing their products through various international exhibits. –Iris C. Gonzales, Philippine Star
July 2025
Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
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July
3 July – International Day of Cooperatives
3 July – International Plastic Bag Free Day
5 July – World Youth Skills Day
7 July – Global Forgiveness Day
11 July – World Population Day
17 July – World Day for International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons
Monthly Observances:
Schools Safety Month
Nutrition Month
National Disaster Consciousness Month
Weekly Observances:
Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week
Daily Observances:
First Saturday of July:
International Cooperative Day
in the Philippines
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