Space has terrific potential as a new economic niche and we want to do something about that.

The space ecosystem already plays a fundamental role in our everyday lives.  Many of the services we use, particularly in relation to communication, observation, and navigation, rely on data derived from space.

Various governments across the globe have stepped up their efforts to further understand how space research and technology can improve the lives of their citizens.  A few weeks ago, we unveiled our smart specialization strategy as the next phase of Malta’s economic development which is built on the need to be prepared for the jobs of the future which will deliver sustainable economic growth and employment.

Within that context, engagement with space develops skills and knowledge across a range of technological domains which will support the delivery of this ambition.  We believe that growing Malta’s space sector will support Malta’s workforce for a future increasingly focused on the use of emerging technologies, such as those set out in Malta’s research and innovation priority areas, including artificial intelligence, machine learning, robotics and smart manufacturing. 

In order to do that, we must work with businesses and researchers to help develop a strong and expanding space sector. Malta must ensure that local enterprises are equipped to seize new opportunities presented by the evolving global space market for business, research, society, the economy, and the environment.

The time is right for Malta to implement its first National Space Strategy which will enable the development and expansion of a sustainable space sector and research capacity with a plan which takes us right up to 2027.  The Malta National Space Strategy, which we have launched for public consultation, will achieve this by focusing on advancing foreign direct investment and space business attraction, harnessing space innovation, supporting the development of a highly skilled and adaptable workforce, building international linkages, and linking up with emerging technologies. 

The strategy is driven by a set of thematic goals, covering the relevant themes which are deemed to be critical for the successful achievement of the space strategy vision.   There are five Pillars, which are enabled by concrete key strategic actions designed to realise Malta’s space vision by 2027. 

Space is vast and ever-expanding and so is the space economy.  The man in the street might think that a Space Strategy is all about planets, stars and comets but it is absolutely not the case.  As the Strategy itself explains, “Space economics also encapsulates a complex and widening space value chain, ranging from the segment relating predominantly to the manufacturing of objects to be sent to space (dubbed ‘upstream activity’), to the other segment which involves the use of space objects to deliver products and services back on Earth (dubbed ‘downstream activity’).”

Space technologies have become a part of our lives and we make use of weather forecasting, satellite-based media and location services as if they were around since forever.  The contribution of space to the lives of citizens is very easy to explain as it is very apparent. 

Similarly, the contribution of space technologies to sectors of national importance, such as maritime services, aviation and the sustainable use of resources is easily explainable as well.

However, in recent years, another phenomenon has occurred – the substantial, and growing, private sector investment in commercial space technologies and activities. And that is the point which I want to drive home.

As the Strategy itself explains, the global space economy grew to €309 billion in 2017, having grown by an average of 6.7% per annum between 2005 and 2017, almost twice the 3.5 % average yearly growth of the global economy. Furthermore, the commercial space industry has been estimated to grow to approximately €2.3 trillion by 2033.

Malta has some presence in the area.  In terms of the upstream sector, the activities taking place are mainly academic such as the work being undertaken by the Astrionics Research Group or the Institute of Space Science and Astronomy or the biomedical faculty at the University of Malta.  We all remember the space balloon or the capsule sent to the International Space Station by Prof Kris Zarb Adami and Prof Joe Borg and their teams respectively.

On the downstream level, we believe that there is potential in areas such as satellite communications, SATNAV applications, Earth observation and so on. 

All this is taking place while “Europe” – and by Europe I mean the Member States, the European Union (EU), the European Space Agency (ESA), and the European Organisation for the Exploitation of Meteorological Satellites(EUMETSAT) – has achieved many successes in space with breakthrough technologies and exploration missions.

Copernicus, Galileo, Rosetta, BepiColombo, Meteosat- these are all European success stories.  In fact, between 2014 and 2020, the EU alone invested over €12 billion in space activities, and Europe represents today the second largest public space budget in the world with programmes and facilities spanning different European countries.

Of course all this is taking place in a fast-changing international space context.  The private sector is involving itself all the more, technological shifts are changing existing business models and space data along with digital technologies opens a new world for business opportunities.

And that is why the EU is speaking about “New Space” and a dedicated Space Programme for a total of €16 billion.   The EU Space Program, for the first time, also proposes specific provisions to support the emergence of a ‘European New Space’ through smart financing for the sector.

In reality ‘New Space’ represents, as the Strategy itself says, the evolution of the space sector into a new era, characterised by competition between private companies rather than nations. This has triggered previously unexplored avenues to growth and innovation.

As the European Investment Bank says, the role of space has become more apparent as an enabling infrastructure for the digitisation of industries, as a basis for new business services, and as an area of economic growth, a trend recognized by governments across the globe.

We believe that there are a wealth of opportunities for agile countries, such as Malta, to capitalise upon by exploiting current research, existing industry capabilities and commercial knowledge to create new, high-growth business opportunities.

As the strategy itself says, the opportunities are developing in both commercial upstream and predominantly in the downstream and space-derived sectors, and through technology transfer into and out of related sectors such as the aviation, maritime, and medical sectors.

Let’s do this.