A strong economy begins with a strong nation. A healthy society is reaped from a healthy economy and a healthy economy is achieved through a healthy society. Trusted on a local and European level, for a balanced approach, where tilting of the scales is one towards the safeguarding of the well-being of the lives and livelihoods of our people. A crises, occurring on a global level, is once again disclosing our strength in adjusting to the flexibility that such times require. In the process, earning us leadership headlines. It is with pride towards the hard work carried out together, different sectors in society, that we welcome the reports recently issued portraying Malta as the country which is vaccinating people against Covid-19 at a faster rate than the rest of its European peers. The smallest nation in the EU, is once again being regarded as a reference point, this time, for its utilised metholody in a vaccination roll-out, an example of efficiency and maintenance of the highest of standards.
Recognition for excellent leadership, was also reckoned by the European Commission in its forecast for a Malta that will have the fastest GDP growth rate in the EU,in 2022. This follows the recent communication by the Central Bank report that in the third quarter of 2020, economic activity level improved compared wih the preceding quarter. This was due to a better performance of domestic demand.
Such results are in lines with the pre-intended measures launched in our holistic plan for economic regeneration. When announcing several measures as part of a financial package to help the Maltese economy during the COVID-19 outbreak, we aimed at easing pressures on the liquidity of businesses, protecting jobs and helping the most vulnerable during this challenging period. Following the initial measures, then we focused on an Economic Recovery Plan aimed at reducing business costs, stimulating domestic consumption, and directly supporting businesses.
As the Bank’s assessment concluded, containment measures relating to the COVID-19 pandemic so far had a stronger impact on the demand-side of the economy. By contrast, the supply side (the production capacity) of the economy has proved resilient.
Indeed, as a government we are not only striving to maintain our well reputed resilient economy, but we are committed towards a Government for its people. From rent subsidies, fuel price cuts, utility bill subsidies, logistics call refunds, tax refunds, wedding expenses refunds, to increase in-work benefits, first-time buyers’ schemes, wage supplement, skills development skills. This is how together as Team Malta, led by our adept Prime Minister Robert Abela, we defended lives and livelihoods during a global crisis. Now it is time to launch our new prosperity, with a positive but cautious attitude.
In effect, as the central-bank report well noted whilst tourism-related activity contracted sharply, by contrast, information and communication, financial and insurance activities, real estate activities, as well as public administration, and the arts and entertainment sectors collectively added 2.5 percentage points to nominal growth. Such outcomes are in line with the Ministry for Economy and Industry’s vision to further diversify Malta’s economic niche sectors creating the way forward for the next future of work. From a solid gaming and financial service industry, we are already reaping economic success from other sectors, we have worked hard to see flourishing, including the maritime, the engineering, logistics, manufacturing, and the digital economy sector such as Internet of Things and Artificial Intelligence. When conducting several industrial visits, I was impressed by the businesses abilities to adjust, innovate, and diversify their services and products to safeguard employment and generate new sales activities.
Thus, the positive results of the Labour Force Survey (LFS) come as no wonder. As the report showed, on an annual basis, both the labour force and employment still rose, while at 4.6%, the unemployment rate in Malta remained below that in the euro area. The bank argues that the impact of COVID-19 on unemployment was mitigated by government measures aimed at protecting employment. Firms opted for shorter working-time arrangements rather than make staff redundant.
We are proud to support a business society that shares Government’s mentality that the human resources are the country’s best resource for investment. Upskilling our workforce, exposing them to the skills required in a digital economy, will facilitate our country’s transition towards the 4th industrial revolution. We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another.
As a government, we will continue to invest both in the Infrastructure and people’s skills to ensure that we have the latest technology, in order to attract the best investment and the best talent, as well. In this regard, the government aims to strengthen Malta’s reputation as a digital island and to be the pioneer in the field of digital innovation.
As a Government we are also committed to strengthen our institutions for a country that is reputed for its robust jurisdiction. A case in point is the bolstering of the Malta Gaming Authority. As announced in the last days a, total of €2.43 million were issued in fines by the Malta Gaming Authority during January to June 2020. This means that the regulatory work being done by the Malta Gaming Authority is in line with the Government’s efforts to strengthen Malta amongst the best jurisdictions in the world for gaming companies and continue to protect business in this sector.
All in all, the year 2021, has already paved its mark as being another challenging year. With resilience and optimism, we will continue with our mission of being the defenders of lives and livelihoods and the builders of an EconomyForTheBenefitOfAll.
Silvio Schembri is Minister for the Economy and Industry