A prime minister has called for a significant increase in state budget allocation towards high-tech and core technologies, urging that at least 3% of annual public expenditure be directed to science, innovation and digital transformation under Resolution 57.
Strategic shift towards innovation-led growth
The directive, issued within the framework of Resolution 57 adopted by the Politburo, reflects a broader policy shift aimed at accelerating technological self-reliance and long-term economic competitiveness.
By mandating a minimum allocation of 3% of total state spending, authorities are seeking to elevate science and technology from a supporting role to a central pillar of national development strategy.
Focus on core and emerging technologies
The policy places particular emphasis on investment in core technologies, including semiconductors, artificial intelligence, advanced manufacturing and digital infrastructure. These sectors are increasingly viewed as critical to economic resilience, especially as global supply chains continue to evolve.
Officials argue that targeted funding will enable domestic enterprises and research institutions to move up the value chain, reducing dependence on external technologies while fostering innovation ecosystems.
Digital transformation as a national priority
In addition to industrial innovation, digital transformation is highlighted as a key driver of productivity and governance reform. Expanding digital services, modernising public administration and supporting the growth of digital enterprises are central objectives of the initiative.
The increased budget allocation is expected to support infrastructure development, workforce training and the scaling of digital platforms across both public and private sectors.
Implementation challenges remain
While the policy signals strong political commitment, execution will be critical. Analysts point to the need for efficient capital allocation, transparent project selection and measurable outcomes to ensure that increased funding translates into tangible economic gains.
There are also calls for closer collaboration between government, academia and industry to maximise the impact of investment and avoid fragmentation.
Positioning for long-term competitiveness
The move underscores a growing recognition that future economic growth will be driven by innovation rather than traditional factors. By formalising budget priorities through Resolution 57, policymakers aim to position the economy to compete in an increasingly technology-driven global landscape.
If effectively implemented, the initiative could mark a structural shift towards higher productivity, enhanced competitiveness and sustainable growth.
Newshub Editorial in Asia – April 23, 2026
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