A unique, FinanceMalta publication prepared by Country Profiler entitled ‘Doing Business in Malta’, that has been published to showcase Malta’s financial services industry in China, was presented to the Economics & Commerce counsellor for China, Liu Meikun by FinanceMalta Chairman, Kenneth Farrugia at the Stock Exchange on 30 June.
9,000 copies of this comprehensive, bilingual guide are currently being distributed at the Malta Pavilion for the current Shanghai EXPO being held until October of this year. FinanceMalta’s new 60-page business guide serves as a major reference source on every aspect of doing business in and with Malta in order to attract and springboard Chinese trade and investment to and through Malta.
At the presentation, Kenneth Farrugia, FinanceMalta’s Chairman remarked, “We have already begun to showcase Malta’s financial services industry in China with significant Chinese operator interest coming from Beijing and Shanghai. This publication is another tool to increase understanding amongst Chinese operators of Malta’s offering, and we will be holding an event in Hong Kong in the coming months to build on this further.”
In reply, the Economics and Commerce counsellor for China, Liu Meikun stated: “Malta could be a stepping stone for Chinese business community into Europe. This publication will boost mutual cooperation and understanding between the two business communities and will strengthen bi-lateral ties further.”
Malta is rapidly emerging as one of the fastest growing international financial centres in the world. The country is winning ever-increasing international attention from global corporations and advisors, particularly in financial services. Despite global recession, there was 22 per cent growth in 2009 and it is forecast that growth in 2010 will be equally strong.
Yet internationalisation of Malta’s financial services industry is considered to be in its early growth years. In fact, Malta was the only euro zone country to register an increase in trade of 9.7 per cent with China in 2009 with the Malta Freeport connected directly to 10 Chinese ports via seven shipping lines running eight weekly services. Malta offers excellent opportunities for Chinese companies looking to sell their products on the island or use Malta as a testing ground for new products prior to launching on the wider EU market of 500 million consumers.
In effect, any Chinese financial services company that sets up in Malta and has its product approved in Malta can be marketed in Europe.
The island’s long-established friendship with China dates back to the island’s earliest post-Independence days. And since EU accession in 2004, Malta has worked to promote the development of EU-China relations. Today, Malta offers Chinese investors a successful business and financial services centre with easy access to the European Union. In fact, the Maltese fiscal regime ensures a network of over 50 double tax treaties and agreements, including one with China. Discussions are currently being conducted for a revised Double Tax Agreement with China first agreed in February 1993.
To support this growing trade relationship, two memoranda of understanding were signed in January between the MFSA and the Chinese Financial Services regulators, namely the China Securities Regulatory Commission and the China Banking Regulatory Commission.