The manufacturing industry’s significance in the Maltese economy and its’ recent growth was today highlighted by Minster for the Economy, Investment and Small Business Chris Cardona as he visited three local furniture makers and manufacturers as part of Workers’ Day activities.
Recent statistics released by Eurostat show that manufacturing in Malta is healthy. Whilst industrial production in the EU and in the Eurozone went down by 0.8% and 1.3% respectively, Malta has registered an increase of 5.7% which ranks Malta in third amongst EU states in industrial production growth. This corroborates with statistics released by ETC which show that the number of employed persons in this sector increased by 1.3%.
Whilst the furniture sector in Malta faces numerous difficulties, there is a thriving market as shown by the three companies visited today by Minister Cardona. In recent years Grixti Mobili Ltd, Float Glass Ltd, and St. Anthony Woodworks, have expanded and made use of incentives from MIP and Malta Enterprise as their production demands increased. Notably, the 25% cut in electricity bills have aided these small, local-based companies in hiring more employees and foster their venture.
At the end of October 2015, full time employment in the manufacturing of furniture amounted to 1,095 individuals. In the first two months of 2016 (January and February), the export of furniture amounted to €392,000. This represents an increase of 6.8% (€25,000) on the same period in 2015.
Minister Cardona noted how Malta has a great industrial potential, as echoed in the recent €30 million investment by the company Playmobil to further expand and strengthen their presence in Malta. The latest Labour Force survey shows that the manufacturing sector employs around 26,000 employees, as well as having attracted an increase of FDI from 23% to 46% in this sector over the previous year.
Although the current economy is swamping past records, with an economic growth of 6.3%, Workers’ Day significance endures as a reminder that wealth is only built by hard work and commitment. The Government will continue to strengthen Maltese companies by creating the right climate for investment and growth; by offering incentives to facilitate and aid, reducing bureaucracy as with the establishment of the Small Business Support Coordination Unit, as well as by creating a cooperative legal framework such as the Family Business Act which will soon be tabled in Parliament.