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Helga Ellul
Deputy President, FOI Attracting investment and enhancing trade are crucial for our investment agenda
The Malta Federation of Industry together with the Malta Institute of Accountants are today joining forces in this seminar on a topic that promises to be an opportunity to discuss investment issues. During the past decades Malta has undergone dramatic political and economic changes which opened up new horizons for the inflow of foreign direct investment, thus providing a stronger platform for external trade. Attracting investment and enhancing trade are two main strategic objectives to access international markets. In this context, one has to mention that throughout the years Malta has made impressive inroads in international investment and trade flows. This accomplishment has contributed significantly to job creation and economic growth in the country.
As an EU Member State, Malta is determined to make the most of its status in order to enhance business confidence in the country, irrespective of the exceedingly stiff international competition. Malta’s position in the centre of the Mediterranean Sea makes it ideally placed to leverage maximum advantage from a unique and natural location as a stepping-stone between Europe and North Africa. It also presents a highly interesting proposition to companies seeking the right location for their operations. In this regard, the advantages of investing in Malta are numerous. Investors are offered a favourable environment from where to operate and make profit; this environment is supported by a broad and comprehensive package of incentives and a clear commitment to encourage enterprises to flourish for the mutual benefit of both the investor and the country itself. Furthermore, institutions such as Malta Enterprise continuously support this process through their own incentives for foreign investment, support to start ups, and the expansion of existing business through various schemes.
In terms of human capital, consecutive governments have invested heavily in the enhancement and upgrading of local skills at all levels. The government invested heavily in human resources and educational institutions; these include the University of Malta, the Malta College of Arts, Science and Technology, and the Employment & Training Corporation. All work very closely with industry to ensure delivery of the required personnel with competencies and qualifications at different levels. With our modern business infrastructure, excellent telecommunications framework, competitive labour costs and highly skilled and educated workforce, Malta truly offers a compelling business destination to foreign investors.
Malta is also committed to attract new industries, new technologies, and to open new markets and business opportunities be it in manufacturing, services, back office or regional operations. The Island’s proximity to and cultural links with North African markets and the Middle East is attracting companies that are using Malta as a stepping-stone for their trading, distribution and marketing operations in Southern Europe and North Africa.
This framework shows that even though we should be celebrating our successes, we still have major challenges to address. The issue of setting up a “one-stop shop” has been high on Government’s agenda for a number of years. Today’s seminar is also meant to take stock on what has been happening on this issue. A prospective investor will decide which way to go not only on the incentive package presented, but also on the procedural effectiveness of the country. The recent news about the deal to establish Smart City in Malta is not only a huge development in Malta’s attraction to foreign investment, but also an unprecedented positive story of how government and its agencies managed to fast-track the initial procedural undertaking. This is what any investor looks for when dealing with a modern country and I strongly believe that this should not be a one-off case but it should be our standard in all cases.
The Malta Federation of Industry has during the past decades voiced the industry’s views on this subject. In its extensive contribution to the drawing up of the Industry Strategy, the Federation of Industry addressed issues relative to investment, human resources, research and innovation. The final document acknowledges that industrial survival is to be based on the development of excellence and specialization through human resource development and the channeling of academic research into industrial innovation. Other important issues identified in this document are the need to facilitate access to finance and to foster a culture of entrepreneurship.
Malta has been a success story on many accounts: Not only in attracting investment but also in its ability to adapt to the changes around us: From the traditional indigenous low-end manufacturing industries to more knowledge driven high end manufacturing and service industries.
Speech by Mrs. Helga Ellul, Deputy President, Malta Federation of Industry at the Joint Seminar held by the FOI and the Malta Institute of Accountants, “Investing in Malta –one-stop-shop?”, 18th May, Radisson SAS Bay Point Resort, St Julian’s |
