Carlos G. Dominguez
Secretary of Finance
Science and Technology Secretary Fortunato de la Pena and distinguished guests: Good morning.
Philippine manufacturing is taking a major step forward today with the inauguration of this Advanced Manufacturing Center.
I congratulate the Department of Science and Technology for spearheading this initiative. This Center is an important hub for technological innovation and research and development in the country.
The inauguration of this Center is very timely. Our experience with the pandemic taught us well about the urgency of adopting new technologies to the way we do things.
This accelerated trend towards an economy driven by technology will continue into the future. The Philippines must evolve and take advantage of these abrupt changes to better respond to the demands and challenges of the new global economy.
As our country recovers from the pandemic and industries get back on their feet, businesses will require heftier investments in innovation and technology in order to stay competitive.
Our enterprises can team up with this Center to explore how they can adopt additive manufacturing practices to improve their production lines. This Center could also serve as a good starting point to upskill and retool our workers on advanced manufacturing technologies.
The Duterte administration understands that technological innovation drives the modern economy. This will be a more definite trend in the coming years.
With the enactment of CREATE or the Corporate Recovery and Tax Incentives for Enterprises Act, we will be able to strengthen the culture of innovation and research and development in the Philippines.
The Department of Finance uses this fiscal policy as a tool to promote a regime that rewards innovation and the creation of new knowledge.
The law provides significant reductions in corporate income tax rates for all enterprises in the country. These tax savings could very well be used by businesses to modernize their systems and processes.
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.
Under CREATE, the types of investments that will be pursued are activities consistent with the Fourth Industrial Revolution. These would spur the development of new production techniques and business models.
These would also help our workers constantly upgrade their skills and competencies to keep pace with the rapid developments in the digital economy.
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 economy.
Again, let me congratulate the Department of Science and Technology for making this Advanced Manufacturing Center a reality. I expect the inauguration of more forward-looking projects to bring the Philippines closer to our goal of becoming a major player in the digital economy.
I wish the Department of Science and Technology all the success in the years to come.
Thank you.
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