NEWS | Wednesday, 27 February 2008

Wider and more focused incentives for Chamber of Commerce

Earlier last week, during the launch of these new investment schemes, the Director General of the Malta Chamber of Commerce and Enterprise, Kevin J. Borg, said: “The Chamber welcomes the new package of incentives aimed at assisting industry as these reflect the new international realities demanded by investors.”
The new incentives - devised within the framework of the new Malta Enterprise Act - are wider and more focused than those previously available under the Business Promotion Act. Government is earmarking €213 million (Lm90.15 million) between 2008 and 2013 towards these incentives. This total is divided between European and local funds. In fact the incentive schemes have been approved by the European Commission.
Borg stated that in the Chamber’s view, industry is continuously evolving through globalisation and due to this phenomenon the demarcation line that once existed between manufacturing and related processes is quickly fading away.
“Consequently, functions within the same organisation are being divided and located in different parts of the world according to incentives and resources made available. So there exist several examples of companies that manufacture, design and research in different countries and territories according to where it pays them to do so,” he continued.
In fact the eligibility criteria for the incentives are being widened to include sectors beyond strictly manufacturing activities such as research and development, software and development of ICT, audio-visual, eco innovation and call centres. Besides, the incentives also cover research and development, SME development, enterprise support, investment aid and access to finance.
“These incentives complement other measures announced in the last Budget by means of which local and foreign investors alike are being supported to ensure their companies and the economy in general, remain competitive. Such incentives encourage SMEs and larger companies to invest locally and create employment opportunities in those new sectors where Malta is gaining new competitive advantages through renewed innovative efforts. Hopefully, this will more than offset investment and job losses in areas of low-value added manufacturing,” added Borg.
He concluded by stating the Chamber augurs the incentives bring about the desired success in encouraging investors to face the global world with continued energy and vigour. The Chamber looks forward to new investment flows as a result of these incentives and renewed developments on the international scale which would allow an ever widening of the eligibility criteria to entitle more companies and activities for assistance.