In reply to the editorial entitled Attracting Investment (TMID, 22 October) we would like to shed light on the investment promotional operation guidelines of Malta Enterprise, thus clarifying the questions raised.

In a global but highly volatile international investment environment, high-productivity, high value-added, knowledge intensive jobs provide the best prospect of employment stability and economic growth. This necessitates that Malta Enterprise continually evaluates and if necessary redefines its role and mission in order to focus all of its activities for the attainment of economic growth supported by the progressive enhancement of local skills.

Malta Enterprise therefore must work in partnership with client companies to develop a sustainable competitive advantage, leading to a significant increase in investments, profitable sales, exports and employment.

Malta’s competitive advantage for international companies must not be considered as a single factor or a static position. Indeed it is a combination of dynamic economic, social, cultural, political and human factors. Malta Enterprise must build internal competencies to strengthen knowledge on those factors that determine relocations and expansions and must be careful on how to position Malta. The Malta Enterprise Strategy highlights a number of target sectors. These include:

• Healthcare services including pharmaceuticals;

• Information technology and software development;

• Back office support services;

• Manufacture of component parts for electronics and electrical products;

• Services where Malta’s competitive advantage is an intellectual/knowledge input including engineering services;

• Services where Malta’s competitive advantage is in its geographical location.

Within these sectors, Malta Enterprise focuses on operations that score highly on the following criteria:

• A sufficiently high value added;

• Operations that require quick adjustments and alterations, just in time deliveries and short run operations and fast response;

• Operations with some content of research and development, niche market orientation or product/brand/world wide leadership;

• Operations where the necessary labour force is already available.

Note; Apart from projects falling under these strategic guidelines, Malta Enterprise is flexible enough to accommodate and approve other operations in other sectors where it is considered that they leave sufficient added value and economic return to the island in terms of employment, investment, foreign exchange earning etc.

Malta is marketed as a solution to companies’ specific needs. Malta Enterprise focuses on identifying companies, operating in the above-mentioned sectors or sub-sectors, rather than on broad geographical areas.

Today, Malta Enterprise is present in the main markets of Europe, such as France, Germany, Italy and UK but also in other countries. It is no coincidence that in the last two years, Malta Enterprise attracted projects from Spain, Switzerland, Austria, Holland and other non-traditional industrial markets. Malta Enterprise is also present in non-European countries, such as the US, Australia, New Zealand and others, where the focus is on very specific sectors where Malta is marketed as a platform for Europe and North Africa.

Today, a very high percentage of projects approved by Malta Enterprise fall in the identified target sectors with Pharma, ICT and Back office taking the predominant role. Medichem, Combinopharm, Crystal Pharma, Fraser Eagle, Hutchinson are some of the established names that we have attracted to Malta in the last months. During 2004, Malta Enterprise also approved a record number of 45 expansion projects, most of them, again, in line with Malta Enterprise strategy.

In promoting Malta as a location for foreign direct investment, Malta Enterprise has adopted a selective approach as opposed to the mass marketing of Malta. In terms of media, we have realised that promotions such as placing brochures and adverts in big newspapers do not yield the desired results.

Thus we prefer to be more selective and to bring over to Malta specialised journalists from foreign papers to carry out interviews and to meet the people who have successfully set up here.

We have also come up with a list of companies in certain countries and we started knocking on their doors one by one. Although the process is more difficult and time consuming, it is much more focused and we think that in the end it will produce better results.

Likewise we believe in networking. Thus we seek out opportunities to support initiatives and activities that will put us directly in touch with key players in the business such as the recently held IGPA and GIRP conferences, the EIC conference and now the Commonwealth Business Forum scheduled for November.

Attracting foreign direct investment is a process, and one which could take time for projects and results to show.

However, in this competitive scenario, we can be successful only to the extent that we are focused, selective, efficient and effective.

Mr Zammit Tabona is chairman of Malta Enterprise