To talk about investment at a time when the world economy is passing through such a difficult period may be seen as being inappropriate. Investment is in itself a sign of well-being, of confidence and of courage that ultimately there will be a return, a profit on the money that one has put in.

Investment is a risk that people take, and for many it will be a calculated one. This risk is taken when there is a greater chance of being successful, when the pros exceed the cons and when the general feeling is that it will bear fruit. Planting a seed in fertile land gives one a better chance that the tree will grow than when the seed is planted in a barren patch.

The “economic land” is currently not so fertile. Companies are feeling the pinch of low orders and fewer services required, and this is not likely to push them into investing more in what they provide. Families, for their part, are burdened with extra costs such as the rising water and electricity tariffs, and their spending power has been hit.

It is, as we say, a ripple effect. In simple terms, if people eat less in restaurants and keep back from buying items they need, then shop owners will earn less and start dismissing personnel.

It is, of course, much more complex than this. In a globalised world, what is happening in Los Angeles and Tokyo has an effect elsewhere around the globe. All developed countries have been hit by what happened in the United States late last summer, and some believe that the worst is not over yet.

In this scenario, however, one must be optimistic and forward-looking. While acknowledging that the current problems are difficult to overcome and that it will take a while for the world to recover, one must also look ahead at better times and start planning as from now for the day when the crisis will be history.

This is easier said than done. Companies are today seeing how they will survive the prevailing situation and are not thinking of what they will be doing in the future. Families are seeing how they can make ends meet and are not planning to spend hard-earned money on things they can do without. It is already difficult to have the money to pay for what you need, let alone the luxuries.

In national terms, however, we cannot just sit and wait. It would be wrong if the government simply waited for things to happen without preparing the groundwork for the time when things will improve. While doing all its best to cushion the negative impact of the crisis and dealing with the prevailing situation, it must be well-prepared for the time when the economy starts picking up and matters will revert to what they were a few months ago.

And this is, in a nutshell, what Central Bank of Malta Governor Michael C. Bonello spoke about when he addressed a business breakfast last week.

“It is essential for economic operators to prepare themselves with products of tomorrow at prices that the market will bear, to grasp opportunities of economic recovery and be in a stronger position to compete in overseas markets,” he said. Mr Bonello also called for an investment strategy more focused on products and markets where demand promises to grow faster in the years ahead.

This strategy is needed because Malta cannot afford to be caught unprepared when the economic wheels start turning again.