Louis Grech MP, Deputy Prime Minister and Minister for European Affairs
“The Maltese economy continues to perform better than the Eurozone average - through perseverance, resilience and positive thinking, we have broken through barriers, both real and imaginary”, the Deputy Prime Minister told the conference gala dinner on Thursday..
“We are achieving a higher growth in GDP, restraining our fiscal imbalance to below the 3% level, creating thousands of new jobs, reducing inflation and diversifying economic activities. Stable ratings and higher inflows of FDI are the result of a sound regulatory environment, a good communications and physical infrastructure, a skilled and educated workforce, a population that is largely English-speaking, reasonable labour costs, a strong and sound banking system, social cohesion, and a good quality of life. In addition, we have a number of legislative and non-legislative initiatives that will make Malta even more attractive. “
“Malta will have the Presidency of the Union between January and June 2017. Although we still have to identify its main themes we are aware that our presidency can only be successful if we home in on the right priorities, some of which will be debated during this Roundtable.”
“The European Union has all the strengths to transform all the setbacks it has suffered into a positive comeback. We might find it useful to review the assumption that there is a size which fits all descriptions and needs. This calls for a new paradigm of political thinking. A balance needs to be struck between austerity and growth, between an open economy capable of stimulating growth and investment and one able to provide the necessary social safety net to its citizens. The major real challenge is to restore Europeans’ trust in the union’s economic system and market.”
The Deputy Prime Minister emphasised that the completion of the Single Market which must feature prominently in this, still suffers from “market fatigue” and has to be accepted by citizens as championing their interests and protecting their rights, as well as by SMEs as giving them the right incentives. These companies are the main drivers of job creation and investment and should be given the opportunity of playing a prominent role in the shift towards a green economy.
The EU has fallen behind in certain vital sectors - the Knowledge, the Green, the Digital Economy. “We should also avoid the wholesale migration of industrial production to other regions of the world. Services are important and they earn the EU billions, but it would be a mistake to denude the EU of the capacity to produce goods.“
“The European Union can be seen as one continuous development. This historical continent embraces a mass of divergent views, inconsistencies, contradictory thoughts, vested interests – all of which have somehow been able to function together in a dialectically consistent development. However, we should not ignore the authentic and very perplexing problems .“
“Hopefully, the recent crises have helped us discover who we are, where we’re weak and where we’re strong, but more importantly they will be an opportunity to prove to future generations that we lived up to the challenges.”
Prof. Edward Scicluna, MP Minister of Finance
Malta’s positive economic turnaround is due to three main factors. according to Prof. Scicluna.
“First and foremast is this government’s clear roadmap for business, that we will do whatever is possible to remove any obstacles in the way of doing business, whether these are bureaucratic procedures or worse, corruption.”
“Secondly, the surge in economic activity came about because Prime Minister Joseph Muscat’s Government takes decisions. We found a backlog of thousands of such pending decisions. The government just unblocked the process. Decisions are taken on a daily basis, come workday or weekend. Parliament’s agenda is full with legislation bringing about much-needed change. The wheel is turning with less screeching than before.”
“The third reason, perhaps less known than the previous two, is that we were spared the poison chalice by the Commission in May last year. We knew that the so called two-pack legislation would condemn us to some form of austerity programme. I remember clearly telling the European Commissioner for Economic and Monetary Affairs Olli Rehn, ‘if you want to throw the book at us, you can do so. But do you really want to turn one other Eurozone country from a ‘breadbasket case’ into a ‘basket case’? Another problem country on your desk?’
“In the event, he was persuaded by the Maltese Government not to impose austerity programmes, in return for being kept informed of the Government’s spending review, as well as of the series of reforms in the energy, education and training sectors and in the labour market.”
Dr Chris Cardona MP, Minister for the Economy, Investment and Small Business
Emphasising Malta's economic stability, the minister said that "there was no banking crisis here. The Eurozone crisis was something we helped with, rather than suffered from. We have a growing economy with high rates of employment. We also have political stability, with a consensus across the board about the need to welcome business and help it prosper." said Dr. Cardona.
Robust regulation is also flexible, adapting to help businesses as they deal with current realities without burdening enterprise with heavy taxation. "All of these factors have enabled Malta to become one of the most important places in the world for on-line gaming. There has been enormous growth in all financial services.Tourism and manufacturing are still big business and flourishing. Construction surges ahead and other sectors, niche and not so niche, are doing well – everything from life sciences to our aviation park."
“The Mediterranean Sea is a tremendous resource which Malta needs to use to develop a blue economy, blue growth and blue jobs. Yesterday I announced that the proposal for a Maritime Hub at Marsa Shipbuilding has been categorised into four areas and the 28 consortia that had submitted bids are being invited to rebid under one of the categories. The call for proposals will be issued at the end of the month and will be open for 13 weeks.”
"In the plans for the Maritime Hub, we are exploring the possibility of a Maritime Academy so that prospective seafarers acquire the necessary skills and training to get work in this sector. Something similar already happens in aviation.”
Dr Edward Zammit Lewis MP, Parliamentary Secretary for Competitiveness and Economic Growth
?The forthcoming Digital Malta strategy for 2014-2020 designed with stakeholders and about to be launched by the Prime Minister will transform Malta into a digitally-enabled nation, giving it a long lasting competitive advantage and empowering every Maltese to grow as a digital citizen.
“We have notable successes to boast about such as financial services, I-Gaming, aircraft maintenance and pharmaceuticals. ICT is another success story that has happened perhaps more silently”, Mr. Zammit Lewis said. “Malta also performs relatively well on the Digital Agenda for Europe, attaining a good number of above average rankings in significant indicators such as broadband penetration, e-Government, e-Commerce, export of ICT goods and services, and SMEs selling online.”
“However, take-up is not as wide and coherent as it should be. Research has amply shown that it is social and cultural conditioning, not cognitive differences between genders, that prompts less females to choose STEM subjects. The country cannot afford to lose out on the creative capital that women can contribute to society.”
Karmenu Vella MP, Minister for Tourism
“Tourism accounts for around 25 percent of GDP, with 2013 performance the best ever so far - registering a 10 percent growth in arrivals (reaching 1.6 million) a 9 percent growth in both bed nights and growth in revenue,”, the minister indicated.
It also one of the most important economic activities in Mediterranean, the top global destination hosting more that 30% of world tourism arrivals, mostly from Europe.
To support the sector's competitiveness the Government has increased the tourism allocation in its first budget, encouraged more joint public-private marketing, set up of a number of action teams to address issues with direct impact on the sector’s competitiveness, encouraged new airlines to fly to Malta and existing airlines to open new routes, hence improving accessibility and identification of winter markets in order to reduce the seasonality gap. As from next year, the Government would be reducing the energy costs for the sector.
“In view of the fact that the tourism industry is rapidly changing, with global tourism set to continue growing and with the Mediterranean continuing to receive increased inflows of visitors in coming years, this calls for constant investment, removal of unnecessary barriers, innovative products and services and enhance visitor management”.
Aviation had been identified as a potential growth sector especially in terms of increased foreign earnings and job opportunities. Government intended to support the private sector to continue expanding in other areas such as aircraft management and aeronautical engineering services, repair and maintenance of helicopters, R&D in aircraft technologies and avionics as well as back office and shared services operations.
“A Civil Aviation Authority has been established and a National Aviation Policy drawn up aiming to create a cluster of specialist aviation activities and to brand Malta as a centre of aviation excellence. In addition, the setting up of a national Aerospace Centre will bridge industry with academia and support the local industry primarily in maintaining competitiveness”.
Joe Mizzi, MP Minister for Transport and Infrastructure
Malta is surrounded by proven hydrocarbon systems with producing oil and gas fields in offshore Sicily, Libya and Tunisia.
The new government has given the issue its deserved importance publishing a notification EU Official Journal while seeking to resolve overlapping maritime claims of neighbouring states through a dialogue aimed to achieve a joint activity exercise.
“Government’s efforts are channelled to attract oil companies to invest in Malta’s petroleum opportunities. Interest in the acreage has been encouraging. We offer favourable contractual and fiscal terms as well as low tax rates and attractive incentives for deep water drilling. An offshore well 130km to the south of Malta will be drilled by Genel Energy which will also act as operator. Cairn Energy and Mediterranean Oil and Gas will also be soon commencing a seismic survey to the north of Malta. Depending on the results, the companies may enter into a Production Sharing Contract with Government for the drilling of an offshore well.”
“We shall be forming a Government Agency to spearhead Government’s efforts in this sector, promote the oil and gas service sector and increase related training and education.”
“Government is committed to continue reviving Malta's glorious maritime history While the further development and consolidation of this industry will be driven by the private sector, there is a role for Government to support policies and initiatives that will stimulate growth and long-term sustainability.”
“We are committed to identifying zones within our ports that can be transformed and developed into more modern facilities, related to high value maritime services. A policy document will be prepared to ensure that the future development of port areas is well planned and consistent with the objectives to facilitate increased maritime transport and business in a sustainable manner.”
“Beyond compliance with the ballast water, sulphur and energy efficiency regulations we predict that more alternative fuels such as LNG and biofuels will be used for shipping, creating opportunities for Maritime Malta on the port side, as will the further expansion of the Suez Canal”
Dr Konrad Mizzi, Minister for Energy and Water Conservation
The new government is addressing Malta's 100% dependence on fuel oil for energy production and will also reduce household electricity tariffs by 25 per cent from 31st March, those for industry and business in early 2015.
“Following rigorous international competition, ElectroGas Malta has been selected as the partner to develop gas-based electricity generation. The consortium comprises Siemens Project Ventures, SOCAR’s trading arm which enables the supply of gas, Gasol plc and local investors. This project initiative guarantees fixed gas and electricity prices for five years, providing stability and lowering Enemalta's energy production costs. “
“The project will comprise a new efficient power plant, a new jetty at Delimara for berthing a Floating Liquified Natural Gas Storage Unit, a pipeline to shore and a unit transforming liquid gas into methane for use in the new and existing power stations. While the Floating Unit offers flexibility the government is also studying a possible pipeline connection to the continent. If deemed feasible and supported by EU funds, this would replace the floating infrastructure. “
The Minister reported that a fully fledged Environmental Impact statement including risk studies had been developed while an independent study just issued by the Occupational Health and Safety Authority satisfied the regulatory authorities as to the project's safety. The new equipment would deliver massive reductions of emissions of greenhouse and other gases as well as particulate matter and dust, enabling Malta to meet EU and international commitments.
“Enemalta is in advanced discussions with China Power Investments and Shanghai Electric Power on a significant capital investment in the company giving it an opportunity to venture into regional markets in the areas of renewable energy and service management of power plants.”
“Europe needs to diversity its energy sources, as underscored by the current Ukrainian crisis and develop a Mediterranean dimension – which may include include pipelines, terminals and other interconnections with gas as the most promising energy in the immediate future. The region requires investment and project finance should be complementary to investments undertaken by traditional utilities.”
“A longer-term view, requiring stability in the Mediterranean region may also include physical electricity links between North Africa and Europe. In this context Malta will serve as a key connection point.”