EU membership improves outlook on Malta in France

French automotive and pharmaceutical companies, in particular, are showing an interest in Malta and a number of visits are being lined up, the Maltese Ambassador to France, Salvino Busuttil said.

In an interview, he said the level of French investment in Malta was "quite low" at the moment, although the potential was "enormous".

Top officials from Renault are visiting Malta in mid-July to explore the market and determine whether it would be profitable to buy car parts from existing local companies, of which there are four, or to set up their own manufacturing plant.

The federation of automobile manufacturers is currently in Malta through contacts established by the embassy and the Malta Development Corporation, which now has a representative, Josephine Vassallo, in Paris.

Prof. Busuttil said the Renault visit could turn into a buying, rather than an investment exercise. But if the car maker decides to place a large order, the local company could need to expand anyway.

"We must not be short-sighted," said Prof. Busuttil, whose embassy is devoting time and energy to promoting Maltese investment, not only in trade, but also in the finance and insurance sectors.

"If you exclude STMicroelectronics, there is minimal interest except in the tourism sphere, with Accor, and a couple of minor French activities, although there is a whole gamut of imports. That is why we have to concentrate more on attracting French business," Prof. Busuttil said.

"It may not be easy because Malta may not be sufficiently competitive," he said, referring to the Renault interest, which already operates in Eastern Europe and North Africa.

In the pharmaceuticals field, the chairman of Aguettant, one of the larger companies in the Lyons area, has already visited Malta.

France, like other European countries, is moving into the more affordable generic medicines, as opposed to branded medicines, and Malta can penetrate this pharmaceutical niche market, offering special incentives.

He was hoping to bring to Malta the French union of pharmaceutical manufacturers, and said MEDEF (the French enterprises movement) was also sending a delegation to Malta.

The accessory/luxury market is also showing an interest in Malta, with the Carven fashion house sending a delegation in a month's time to determine whether they could purchase what is being produced in Malta, or whether they could manufacture their products on the island.

Prof. Busuttil maintained that Malta needed to be projected as a country in the EU, but with a "special" and "very important" relationship with North Africa.

Malta's low production costs and its relationships with North Africa, particularly Libya and Tunisia, could be a winning combination.

Prof. Busuttil said Malta, in industry terms, was not really known in France.

"Those who know Malta know it is serious. However, for the average French businessman, Malta is not, so far, a place to invest in simply because it is not known."

Prof. Busuttil maintained that language is still a "superficial" drawback. Malta is also still perceived as "being tied to Britain and British ways". However, he believed this was changing, and added that one of the positive remnants of the colonial heritage was the serious administration, which the French appreciated.

Malta's main shortcoming, not just in the economic sphere, is that "we do not pull together" - as a result of an insular mentality.

Prof. Busuttil was, therefore, a strong supporter of Malta Enterprise, which would bring about synergies and reduce bureaucracy.

"We are too small to have our own little empires. It is important to have one direction," he stressed.

The concept of the one-stop shop is always appealing to businessmen and facilitates their investment, or commercial activity, he continued

The referendum result and ensuing election have been positive in terms of the attitude of the French towards Malta, which has "improved enormously", Prof. Busuttil said.

The fact that Malta is joining the EU has "changed the climate completely". Until the referendum, the French were not sure whether it was worth their while to work with Malta, he said.