This article appeared in the ‘Connecting Malta to mainland Europe’ supplement by ATTO published with The Sunday Times of Malta on April 7, 2024
The Maltese economy is often associated with tourism and the financial services industry, but the development of the Maltese Islands has historically been driven by a large industrial and manufacturing sector comprised mainly of Foreign Direct Investments. This means that international trade has historically been a crucial part of Maltese economic development, and the ongoing importance of this sector and of various related economic activities continue to make it important.
As a small island with limited natural resources, our ability to trade freely and openly with other countries around the world is an essential support for the Maltese economy and for Malta’s attractiveness as a destination for industry and foreign investment. This has been especially evident in recent years, where interruptions in global supply chains made it harder for the country to secure what it needed. International developments, particularly the fallout of the COVID-19 pandemic and the current crisis in Ukraine, have contributed to a climate where geopolitical risks to international trade are increasingly being recognised and efforts are being made to “de-risk.” This is a positive development, but we should approach de-risking in a sober manner and avoid the politicisation of trade relations.
Our ability to trade freely and openly with other countries around the world is an essential support for the Maltese economy and for Malta’s attractiveness as a destination for industry and foreign investment
The complexity of international trade means that markets nowadays are incredibly interlinked, with different stages in the production of most goods spread over geographically diverse locations. Whereas recent decades have seen the rapid globalization of trade, the economic challenges of recent years have brought home the importance of securing the supply of critical goods and the necessity of retaining domestic and regional manufacturing capacity. In this respect, we are pleased to be working with other member states to prepare an industrial policy for the European Union which is fit to meet contemporary challenges and future risks, and we continue to put Malta on the map as an attractive location for foreign direct investment and a key part of international companies’ diversification strategies.
ATTO has a great significance in representing its members in such a large and dynamic industry. During my latest conversation with its leadership I augured them success in continue safeguarding its members while expanding Malta’s trade horizons.