Foreign direct investment in Malta last year amounted to Lm575 million, or an average of more than Lm1.5 million per day, the government says.
Malta Enterprise, the government’s exclusive agency for attracting investment from abroad and supporting enterprise in Malta, played a leading role in bringing such a huge amount of money over to the country, and the results should encourage it to work even harder.
The agency, for example, approved 89 projects during 2006, up from 69 the previous year. Negotiations on at least another 13 projects are at an advanced stage and will hopefully be concluded within a short time.
The agency does not only help potential foreign investors, providing them with a comprehensive package of fiscal and financial assistance, industrial space and advisory services, but it also deals with locally-based companies. Last year alone, the financial assistance Malta Enterprise provided amounted to Lm2.4 million, which is nearly 10 times as much as that given in 2004.
When one considers that Malta Enterprise’s work does not cover major areas of our economy, that is most tourism-related areas, financial services, property and real estate – sectors that are all pillars of the economy – the agency’s success carries even more weight.
Furthermore, in a changing world, where globalisation affects competitiveness and where the expansion of Asian and East European countries has made it much harder for a small country like Malta to thrive, ME’s efforts to shift the focus from low-end to high-end manufacturing have led to positive results.
True, some factories that used to employ hundreds of workers have closed down, but many of these employees have either been absorbed by other companies providing jobs in the same industry or else have moved on to other areas, making use of re-training services that enabled them to learn new skills.
As Investment, Industry and IT Minister Austin Gatt acknowledged during a press conference on Malta Enterprise’s work during the past year, ME has worked hard in the manufacturing area, but now it is important to look into other sectors that have the potential to improve the country’s competitiveness.
The government’s decision to change ME’s policies after the last election, “moving away from the one-size-fits-all” attitude, he said, and targeting potential niche markets that could deliver, has so far brought about good results, in spite of the problems being faced because of globalisation, competition and the increase in the price of oil.
During 2006 in particular, there was a hefty increase in ICT projects, call centre activities and aviation maintenance, repair and overhaul services. These three sectors have further potential for expansion that could create even more employment, and the SmartCity project is only one – although the biggest ever – of the developments that are expected to open up new avenues in the economy.
One important factor that has helped Malta Enterprise to achieve so much is the fact that Maltese workers continue to prove that they are capable of adapting to new situations and new jobs. They are quick to learn and they are eager to be re-trained. They are not afraid of new challenges.
And it is with this in mind that Minister Gatt emphasised the importance of offering Maltese workers the opportunity to learn new trades and new skills. “Our biggest challenge is to continue strengthening technical education, particularly in untapped sectors,” he told the press conference.
The government, through Malta Enterprise and other agencies, should continue to insist that Maltese workers do not stop learning once they find a job, but seek further training to enable them to keep up-to-date with newer trends.