President Duterte said on Tuesday the Philippines will be joining the top one-third of countries in the Global Innovation Index (GII) by 2022 due to its investments in government processes, technology and human development.
In 2017 Philippines placed 73rd out of 127 economies. In 2016 the country placed 74th out of 128 and 83rd out of 143 economies in 2015.
“We will empower more Filipinos with better skills and expertise and, with our Innovation Council under the Department of Science and Technology, we will improve the competitiveness and productivity of our MSMEs [micro, small and medium enterprises],” Duterte said in a speech at the Boao Forum for Asia in Hainan, China, attended by around 2,000, including world leaders.
The index computes and economy’s performance on innovation by looking at innovative and creative outputs resulting from a slew of factors that enable innovation.
The President also noted that the government will apply science, technology and innovation in agriculture and service industries, and also improve research and development and intensify international cooperation in this areas.
Aside from investments in innovation, the Philippines will also focus on infrastructure and interconnectivity.
“Our milestones are ambitious: We will spend 5 percent to 7 percent on infrastructure. We aim to reduce poverty from 22 percent in 2015 to 14 percent by 2022. We intend to achieve growth of 7 percent to 8 percent every year up to 2022,” he said.
“Our ‘Build, Build, Build’ program will provide the solid backbone for growth. This will continue to upgrade the infrastructure, connect more people and communities, and create more jobs. Already, we have started a three-year rolling program amounting to over $69 billion until 2022,” Duterte said.
“Finally, the Philippines will remain committed to interconnectivity, both in functional terms and in political engagements and cooperation with our friends and neighbors. We will harness the potential for shared growth in our region and beyond,” he added.
The President also said the Philippines is slowly making the Filipino dream a reality.
“Far too long, the Philippines has nurtured the dream of a comfortable life for our citizens. We want a society where there are opportunities for all. We want a nation where the hardworking, the talented and the law-abiding can advance together and move up [the] socioeconomic ladder,” he said, noting that there are challenges but the nation will not be deterred.
“We seek to partner with responsible businesses—home-grown and foreign-based—to drive the progress we envision,” the President said. He also mentioned China in his speech, describing it as the country’s sovereign equal.
Duterte’s foreign shift toward China is backed by his adoption of a more cooperative stance between Manila and Beijing.
“[T]he Philippines and China are partners in the building of the much-needed infrastructure. [We are building] bridges of greater understanding between our peoples. We are working together on strengthening economic complementarities.
He also called on all nations to act collectively to achieve the shared goal of prosperity.
“Let me say it again: the Philippines’s destiny is in Asia. The Philippines is ready to work with all nations in the region to seek friendship and cooperation. We have a stake—as well as responsibilities—in [the] forging of a more prosperous continent and world. This is what [nations]—big or small—should act on collectively when we leave Boao: Cooperate, coordinate [and] collaborate. So we can achieve our shared dream of prosperity for all,” he said.
Chinese President Xi Jinping also highlighted in his opening speech China’s economic achievements and opportunities, as well as its visions for the future.
Although he did not directly addressed the escalating US-China trade war, President Xi noted that China hopes that developed countries will stop imposing restrictions on normal and reasonable trade of high-tech products and relax export controls on trade with China.
China will also reduce tariffs and expand imports, according to President Xi.
“China does not seek trade surplus; we have a genuine desire to increase imports and achieve greater balance of international payments under the current account,” he said.
A research note from RHB Bank Berhad dated April 4 said the Philippines could be the most at risk country in the Asean region because of the trade war.
Singapore Prime Minister Lee Hsien Loong, for his part, said that China’s response to the US has been careful and calibrated.
“We hope both countries can ward off further escalation. Singapore believes imposing unilateral tariffs is not the solution,” Lee said, noting that a trade war will damage bilateral ties and that the consequences could be catastrophic.
“A US-China trade war is far from inevitable, but it could compromise countries big and small,” he said.
China proposed last Wednesday for the imposition of higher tariffs on about $50 billion of US imports.
Last Thursday US President Donald J. Trump ordered to consider imposing tariffs on an additional $100 billion in Chinese imports.