Carlos G. Dominguez
Secretary of Finance
His Excellency Shambhu Kumaran, Ambassador of India to the Philippines; Dr. Tirso Ronquillo, President of the Batangas State University; distinguished guests; ladies and gentlemen: Good morning.
Thank you for inviting me to join you on this important day.
I congratulate the Batangas State University and the Embassy of India for today’s signing ceremony to strengthen our two countries’ cooperation in the knowledge economy.
I am impressed with the visionary leadership of the Batangas State University for venturing to establish the KIST or the Knowledge, Innovation, and Science Technology Park in its campus. I thank the Embassy of India for supporting this initiative.
This momentous occasion will take the Philippines’ and India’s partnership to a higher plane. India is a rising power in science and technology with a strong cadre of experts in digital technology. The Philippines, meanwhile, has a talented, tech-savvy, and young workforce that can compete globally with the world’s best.
We can tap and complement our respective advantages. The Philippines has a highly educated workforce that can provide intellectual capital to locator industries in the KIST Park. This is an opportunity for India to create an ecosystem for its leading startups to establish their presence in the Philippines. Our country can even serve as India’s ASEAN regional base. After all, we are natural partners. We are both English-speaking democracies with aligned trade and development interests. Both our countries will benefit from this partnership through enhanced knowledge sharing, increased investments, and more job opportunities for our two peoples.
I thank Ambassador Kumaran for expressing India’s keen interest to assist our country’s digitalization programs. India also has expressed its willingness to fund the creation of small information technology centers in our schools and universities nationwide.
We need more forward-looking innovative projects such as the KIST park. We are moving towards an economy where knowledge is the main driver of growth. The next generation must be trained in cutting edge science and technology to support our aspirations for a truly inclusive and competitive economy.
The COVID-19 pandemic has magnified the need for us to rapidly modernize our processes and transition to the New Economy. This accelerated trend towards an economy driven by technology and innovation will continue to flourish. The Philippines must evolve and take advantage of this trend.
The Department of Finance is using fiscal policy as a tool to promote a regime that rewards innovation and the creation of new knowledge. With the expected enactment of CREATE or the Corporate Recovery and Tax Incentives for Enterprises Act, we hope to strengthen the culture of research, development, and innovation in the Philippines.
In addition to other tax perks, CREATE grants a 100 percent additional deduction on research and development expenses for enterprises to incentivize the creation of new knowledge and products.
CREATE prioritizes industries that make use of the knowledge economy in their activities. The types of investments that will be pursued are activities consistent with the Fourth Industrial Revolution.
CREATE will open up numerous doors of opportunities for the Philippines and India to collaborate in the knowledge economy. This momentous event is just the start of our close partnership in this field.
Technological innovations will build new industries and create many employment and investment opportunities. These will allow us to bounce back stronger from the pandemic and help ensure the long-term recovery of our economies.
I wish this partnership success and hope to see this technology park flourish in the near future.
Thank you.
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