The news of Swiss aircraft maintenance giants SR Technics deciding to set up shop in Malta is a good shot of adrenalin for the faltering Maltese economy.
Malta has already made a very good name for itself in the field of aircraft maintenance and there is no more tangible example than the Lufthansa Tecnik operation which has become an integral part of the economy.
The set up of SR Technics will result in the employment of some 350 people from Malta by 2014. The company will for now use an existing hangar while a new 4-bay narrow body hangar is built near the Lufthansa site.
It is understood that the company looked at a total of 54 possible destinations before choosing Malta, citing the good standards of work, the English language and the high level of training available locally as the main reasons.
Coming off the back of a budget which was largely aimed at stimulating industry, the news is most welcome. It must not only be looked at in terms of the creation of 350 jobs. Let us break it down bit by bit.
The most important benefit to come out of this is international recognition of Malta’s efforts to become a leading player in high-tech aircraft maintenance. The fact that another foreign giant has chosen to come to Malta proves that the workforce is capable, and make no mistake, if Lufthansa Tecnik were not happy with the way things were going, SR Technics would have known about it.
The second issue to highlight is that we now have a steady employment stream in a sector of the economy where Malta enjoys a good training infrastructure. The courses on offer at MCAST have been described as being of very high standard.
In addition, we must also look at all the work which will be contracted out once the company begins to construct its new hangar terminal. The knock on effect will also benefit the economy and will create additional jobs.
And finally, we have the most important benefit of all, 350 jobs for kids that might not really have had very many other options, at least not for this skilled a job.
The benefit to the economy will probably not be felt until midway through 2010, but such an investment can only serve to stimulate economic growth and help Malta along the very rough road to recovery.
The investment also came at a very good time for the government. Beleaguered Finance Minister Tonio Fenech has something concrete to show against the backdrop of allegations which have been made against him.
It also comes at a very good time for Prime Minister Lawrence Gonzi. The news came one day after the Opposition leader’s reply to the budget speech and also on the eve of his (Gonzi’s) own reply to Dr Muscat.
The Opposition leader had said that the government was not doing enough to promote investment and to encourage industries to set up shop in Malta. Well, this is most certainly to be used as ammunition to repel Dr Muscat’s claims.
At the end of the day, who can complain? Malta has secured direct foreign investment at a time when it really is hard to come by anywhere in the world. Moreover, 350 kids will get a job and others will also benefit through work being contracted to them during the logistics phase.
Now we are well on our way to becoming a leader in the field. The key is to sustain that position.