The seminar organised last week by the Malta Federation of Industry and Malta Enterprise, in collaboration with the Hong Kong Trade Development Council, Hong Kong: Bringing you to China’s Markets, was an excellent initiative undertaken by Malta Enterprise and the Federation of Industry and complimented by the expertise of the Hong Kong Trade Development Council. Such projects will be a turning point in ensuring that our various but mutual interests

converge.

Hong Kong is at the crossroads of east and west, a vital connecting point, a unique location of charm that has, throughout the course of history, fuelled the imagination of travellers, traders, fortune-seekers and sailors. Hong Kong, deriving from “Heung Gong”, literally “Fragrant Harbour”, is a vibrant commercial hub, connecting to various destinations around the globe, demonstrating in itself the dynamism of this harbour city.

Hong Kong continues to enjoy a high degree of autonomy, empowering the Hong Kong government to conduct external relations in areas such as trade, economic, financial and monetary affairs, shipping, communications and tourism. The European Union and Hong Kong share many common values, including the rule of law, respect for individual freedoms and human rights and the right of free enterprise. Maintaining these fundamental values and further developing them is

paramount in strengthening further bilateral and commercial relations.

Malta-Hong Kong

relations

The EU is one of Hong Kong’s largest trading partners, with figures that total bilateral trade to over €30 billion annually. However, economic ties go beyond trade. The excellent bilateral relations enjoyed between Malta and Hong Kong are very relevant within this context. Several business delegations organised by various relevant and influential domestic organisations have paid work visits in a bid to strengthen further our political, commercial, economic and cultural ties. The same was reciprocated by the many delegations visiting Malta.

Throughout these years, Malta has witnessed a successful economic growth, an increase in investments, a strategy aimed at ensuring that industry, entrepreneurs and small and medium enterprises are provided with the correct environment to flourish even further, and while ensuring a successful work force, contributes to the well-being of domestic economy. The government has moved to the very top of its agenda, a strategy place to ensure that Malta maintains its competitiveness.

Maintaining

competitiveness

I have always maintained that today’s world is a fierce battle to ensure that the products and services offered maintain a competitive edge when compared to others, in turn complimenting the respective countries’ economies. Therefore no one can afford to be left out. I describe the term “competitiveness” as being the ability to provide a product or a service at high standards but at the same time at low costs. These are today’s realities and Malta is compelled to translate them into each and every sector of its economy.

However, it is not only industry that has adopted such a strategy but, most importantly, small and medium enterprises, which constitute a substantial part of our working force and economy. Therefore within an environment offering strong political stability, excellent financial, banking and maritime services, a sound telecommunications platform, modern infrastructure and the ability of quick adaptation by trained human resources to demanding necessities, the potential for foreign investments, economic growth and commercial opportunities is prime.

Malta and the EU

Malta’s membership of the EU, a market of over 450 million consumers, has also provided us with a new experience we intend to live through with the utmost determination and will

forcefully exploit the new opportunities at our country’s threshold and utilise them for the very best benefit of our people.

Within this context, the government intends to seriously address and assist with all possible means every project aimed at further strengthening our relevance within such initiatives, in order to ensure that our competitiveness and productivity levels are enhanced even further.

Malta’s strategic

position

I recall the meeting at my ministry last September with the Hong Kong Trade Development Council. I discussed with Mr Lawrence Yipp and the representatives of the Milan Office various issues pertinent to the promotion of trade between the two countries, while identifying various ways of cooperation.

In particular I underlined Malta’s strategic geographical position in the Mediterranean and emphasised that with the opening up of the North African market, Malta’s connecting routes will be a valuable asset to the Hong Kong import/export industry.

Malta, being equidistant from Europe and North Africa, and being both European and Mediterranean in culture and identity, has the most valuable assets in providing a sound connecting point to the North African market.

An expansion in

services

Malta’s maritime services have continued to expand. The ports of Valletta and Marsaxlokk continued to experience a contained growth in their activities. This results from the number of ships calling at our ports and territorial waters and in the throughput of cargo handled.

Additionally, providers of services in our ports, ranging from ship-repair to ship chandling and bunkering, registered a sustained increase in their operations. These results are considered to be significant. In fact during the year starting October 2003, the number of ships calling at Malta has increased by six per cent. The composition of the traffic shows very clear indications that the number of vessels calling within territorial waters for a particular service, without entering a port, has continued to

register the fastest growth.

The cargo throughput statistics reported in the previous years’ annual reports exhibit a consistent trend in the way conventional cargo is giving way to containerised cargo. All other cargo sectors, whether for local consumption or for trans-shipment, have experienced a growth. In parallel, we are actively involved in the development of the Short Sea Shipping concept and the development of the Motorways of the Seas, particularly now that “feedering” is considered as one of its important components.

The main objective focuses on improved competitiveness of the ports, to further penetrate their regional market share given current and future opportunities. This, however, can only be met if all industry players realise the long-term benefits resulting from enhanced collaboration among all industry stakeholders and from the gradual materialisation.

Malta is the second largest ship register in Europe and one of the largest in the world. Last year the number of ships registered under the Merchant Shipping Act was 3,660, with a total gross tonnage of over 24.5 million.

The average age of all vessels registered during this same period was 11.1 years, giving a clear indication of our policy to focus on quality shipping and ensure that Malta is not a flag of convenience.

Bridging Malta and Hong Kong’s markets

Hong Kong is a harbour city, Malta is a harbour nation. Even though different in geographical indications, population and cultures, there is an exact similarity in what lies at the very core of our identities – maritime affairs. Though over ten hours away by air, we are connected by sea. Hong Kong’s harbour, located on the primary Far Eastern trade routes, facilitated Hong Kong’s development as one of the greatest trading ports in the Asia-Pacific region. Malta’s natural Grand Harbour and government’s trans-shipment project, namely the Freeport, in the 1990s provided us with the right tools to be a shipping hub in the Mediterranean.

It is also within this context that government will, very soon, be implementing a strategy aimed at enhancing the efficiency of our ports, resulting in a competitive working environment. I have always stressed that through such strategies, the workload could increase due to a further attraction of vessels calling at Malta and resulting in a potential increase in income. Discussions are at a very advanced stage, and I am also informed that the economic/financial model study for the port of Valletta is nearing completion, which will serve as the basis for future cargo handling operations and the reorganisation of its pertinent sectors.

Malta-Hong Kong trade in 2003 produced figures of over Lm6 million in imports and over Lm22 million in exports. A substantial amount of the latter flowed to Europe. During my tenure of office as Competitiveness and Communi-cations Minister, responsible for trade, I am confident that the Hong Kong Trade Development Council and the Hong Kong authorities will not just be assisting Malta, as in several instances in the past, to “bring us to China’s markets” but will also be ensuring that Hong Kong is a vital pivot in bringing China to Mediterranean and European markets.

A yearly study of trade flows since 1999 shows a slow but steady increase in figures. In fact, between January and March last year, trade figures were already hovering in the Lm1.2 million region for imports, and Lm7.2 million for exports.

The future

The cooperation here is twofold. The seminar organised by the Malta Federation of Industry and Malta Enterprise, in collaboration with the Hong Kong Trade Development Council, is not a starting point but a continuation which I augur will be strengthened further. Such initiatives are to be applauded.

Censu Galea is Competititiveness and Communications Minister

www.mcmp.gov.mt