“Malta is another notable nation, pursuing an offensive growth-strategy and moving towards a knowledge economy. The country is on its way to becoming the new Singapore of the Mediterranean.” – European Report
In the latest report from the European Centre for Policy Reform and Entrepreneurship (ECEPR), Malta is considered as the southern European hotbed for ‘brain businesses’ – companies that compete through their brain power and expertise. The new study, The Geography of Europe’s Brain Business Jobs, shows that 5.5 per cent of the working age population of Malta is employed in highly knowledge-intensive companies. This is higher than the European average of 5 per cent
Proud of our rankings
The report is aimed at businesses and investors making a strategic choice about where to locate and invest. The opening last week of Noovle Google new offices, a new and innovative investment in Gozo, is proof of such international interest.
We should all be proud of statements by such bodies as the ECEPR. This is what Labour’s long-term vision, sense of innovation and commitment to change is all about. The ability to keep abreast of current events and developments gives us the cutting edge when competing with other countries, regardless of our size. The country is fast making a name for itself in becoming a hub for blockchain, bitcoin and the latest artificial intelligence sector. This is something we should all be proud of and in no way inferior to any other nation, and certainly desisting from the concerted strategy by some to belittle our democratic credentials at every opportunity overseas.
Quite rightly, Prime Minister Joseph Muscat has expressed optimism that Malta will continue to be eligible for EU Cohesion Funds, despite its economic progress. Speaking in Bratislava at a Friends of Cohesion conference this week, he said that progress needed to be sustained, rather than have support withdrawn, and he was confident that this view was gaining support in the European Commission. It is preferable for any member state to progress, with adequate EU funds, and there should be an acceptable level of EU funds to help sustain the progress that is being made.
A prosperous country
Another international report this week states that Malta is among the world’s richest, healthiest and most prosperous nations. A long-running international survey by the Legatum Institute’s Annual Prosperity Index considers more than 100 variables to determine the most prosperous countries among the 149 under review.
Malta is placed 19th, up from 22nd last year. Legatum, which has been carrying out the survey for 12 years, looked at per capita gross domestic product and the number of people in full-time work, among other criteria. It also includes economic quality, business environment, governance, personal freedom, social capital, safety and security, education, health and natural environment.
The government will not rest on such positive classifications and will not leave any stone unturned in ensuring that the country’s prosperity reaches out to include all our families and social groups. It is, however, encouraging to note that the optimistic outlook and the feel-good factor all around is also recognised at European and international levels.
Family businesses
Family-run businesses are the pulse of our economy and not least in Gozo. It is estimated that these businesses directly employ about 40,000 people across both islands. Through new and innovative legislation, the Government aims to facilitate the transfer of businesses between generations to ensure continuity in their operations.
At a meeting specifically held this week at the Gozo Ministry, I pointed out that businesses in Gozo are confronted with the same problems as those in Malta, the main challenge being that the business transfer between generations usually faces administrative and other related difficulties. Through the Family Business Act we are proposing, measures will be in place to ensure that businesses will have access to financial aid, including micro-invest and micro-credit.
In the meeting, all clauses within the legislation were explained, including the assistance and other schemes. The law includes specific provisions intended to assist these businesses to expand their operations, employ more workers and explore new horizons.
With the business community present at the meeting, I gave further insight into the infrastructure projects underway in Gozo to assist the core businesses, including the new SME Park in Xewkija and the agreement between the Gozo Ministry and Malta Industrial Parks (MIP). The upkeep and maintenance work of the common parts of the industrial zones of Xewkija and the Ta’ Dbiegi Crafts Village are now the responsibility of the Ministry and we are also planning to set up an office to serve as a bridge between the Family Business Unit and Gozitan family businesses.
Useful consultations
Public consultations and specific discussions with particular stakeholders are the way by which we move as a government from initial proposals to the realisation of projects or the implementation of laws and other administrative measures. My first year at the Gozo Ministry has been an endless exercise in this direction on various aspects of what needs to be done in Gozo. The constituted bodies, NGOs and the public in general are fully aware of my efforts to allocate adequate time for such useful hearings.
Within this pathway, together with my colleague Silvio Parnis, I discussed the proposed Local Government Reform White Paper with Gozitan Mayors and Councillors, with a wider public consultation. Useful opinions and proposals were aired regarding specific ideas included in the White Paper that was launched in October. There is common agreement to ensure that local councils offer the best possible service whilst supporting and assisting citizens, particularly in the social and educational spheres. We strongly believe that these and other initiatives will strengthen the sense of community within any town or village.
We also intend to strengthen and enhance the effective participation of local citizens in local government operations, including 16-year-olds who can work hand-in-hand with older people and thus blend years of experience with innovative ideas. Apart from other reforms, a better sense of autonomy will be reflected in renaming the existing law as the ‘Local Government Act’, which will give due recognition to both the local and regional councils.
In the meantime, the Christmas spirit is creeping in and Gozo is transforming itself into a magical destination for this festive season.