The Lm13 million that will be invested in new factories over the next 18 months is a clear indication that the government is not simply geared up on massive projects such as that of SmartCity, but is giving equal importance to smaller projects that will also give their contribution to the local economy as well as create more job opportunities.

Large projects perhaps attract more media attention when they are launched or completed, but at the same time one cannot ignore the many enterprises that employ fewer people and have a smaller turnover, and which however play their own important role. Oceans are made of small drops, and these small companies put together, carry a lot of weight in the local industry.

Last Tuesday, Malta Industrial Parks announced that it will be investing such a sum to construct 27 ultra-modern factories over an area of 15,000 square metres at Hal Far and another 11,000 square metres of factories at the Mosta Technopark. MIP is working closely with Malta Enterprise in this regard.

MIP chairman Alec Mizzi pointed out that a recent study indicated that there will be a high demand for factory space in the near future and, as a result, MIP initiated a refurbishment process at the Bulebel and Hal Far industrial estates that is financed by the European Union.

The development of new factories will also act as an incentive for new investment, with three sites to specialise in general industry and a fourth to concentrate on biotechnology and pharmaceuticals.

All this goes to prove that the manufacturing industry is not being put aside by the government, and Investments, Industry and IT Minister Austin Gatt insists that all that is happening is that the sector is moving with the times. It is a transformation from low-end to high-end manufacturing that is inevitable in a fast-growing competitive world.

Factories are closing down as firms decide to shift their base to other, less expensive destinations. Jobs are being lost too. But other companies are opening up shop in Malta and more job opportunities are being created. Those who are losing their job are finding others.

As such, the country needs to be prepared and has, in fact, been preparing for this changing scenario. Whether Malta will be able to pass this test successfully depends on how much it manages to absorb the shift towards a more modern industry, while at the same time keep all its options open.

This is because this transformation will never be completed; in the sense that the changes are constant and ongoing, and therefore the country must always be at the ready to accept that it needs to adapt itself to the prevailing circumstances.

One important factor that was mentioned by Minister Gatt is that modern factories no longer need the large open spaces that used to be taken up in the past. This is good news for a small country like Malta, because it means that more firms could be stationed in the same amount of space that used to be occupied by one big factory. At the other end of the scale, new factories must however have high-quality finishes that were not the norm 30, 40 years ago, and this is why there is a need to invest the way MIP is doing.

Another consideration is that the factories that MIP will be investing in are available for both foreign and local investors, and therefore Maltese entrepreneurs who are seeking to expand their business will have the possibility to relocate in the complexes that are being constructed by MIP. This should in itself be an incentive for local businessmen.