Batangas techno park targets Indian startups

MANILA, Philippines — The establishment of a technological park in Batangas could pave the way for the entry of more startups from India and other countries, the Department of Finance (DOF) said.

During a ceremonial signing Monday, Finance Secretary Carlos Dominguez commended the Batangas State University (BatStateU) for putting up the Knowledge, Innovation and Science Technology Park (KIST) inside its campus, with support from the embassy of India.

The finance chief said this project would help strengthen the Philippines’ partnership with India and create more opportunities for Indian startups in the country.

“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 (Association of Southeast Asian Nations) regional base,” Dominguez said.

“Both our countries will benefit from this partnership through enhanced knowledge sharing, increased investments, and more job opportunities for our two people,” he said.

He said the two countries complement each other, with India’s rising power in science and technology and the Philippines’ highly educated, tech-savvy and young workforce.  He added that the two are “natural partners” as they are both English-speaking countries with aligned trade and development interests.

Meanwhile, Dominguez emphasized the need to initiate more technological projects like KIST Park to accelerate the Philippines’ transition to the new economy amid the challenges brought about by the coronavirus pandemic.

“We need more forward-looking innovative projects such as the KIST Park. We are moving toward 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,” Dominguez said.

He said that technological innovations would build new industries and create many employment and investment opportunities which, in turn, would allow both the Philippines and India to bounce back stronger from the pandemic and help ensure long-term economic growth.

Dominguez said the soon-to-be enacted Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act is also expected to encourage more knowledge-based industries to locate in the Philippines and present more opportunities for science and technology ventures.

Once enacted into law, CREATE will grant a 100-percent additional deduction on research and development expenses of enterprises. This is on top of the reduction in corporate income tax from 30 percent to 20 percent for micro, small and medium enterprises, and 25 percent for all other businesses.

“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,” Dominguez said.