Factories plan to expand - Minister

A pharmaceutical company is among a number of factories that are planning to expand their business in Malta, according to Finance Minister Tonio Fenech.

"We will be announcing this investment in the coming days," he said yesterday without elaborating.

When contacted for more details, a Finance Ministry spokesman said it was "too premature" to reveal more given that matters had to be finalised. He said he was not in a position to give an indication of how much this investment was worth or whether more jobs would be created.

All he could say was that one of the factories to expand belonged to a pharmaceutical company.

Mr Fenech hinted at this upcoming investment during a Nationalist Party activity in Naxxar where he was interviewed by The Malta Independent journalist Stephen Calleja.

He was making the point that Malta had continued to attract foreign investment despite the global financial crisis.

He pointed out that, recently, Moody's Investors Service had praised Malta's economic resilience during the crisis.

He mentioned that last month a Hedge Funds Review supplement had said Malta was gearing up to challenge the established hedge fund jurisdictions in Europe.

Mr Fenech went on to add that, last year, the government had helped factories in difficulty to ensure they remained in operation and did not sack employees.

This year, results would be reaped because, apart from having kept factories from closing shop last year, further investment was being attracted to the island.

German toymaker Playmobil had already announced that it planned to invest €11 million over the next two years to extend its plant by 5,000 square metres and employ a further 80 workers.

Recently, cosmetics packaging manufacturer Toly Products pledged to find ways to attract new business to Malta.

Turning to the public transport reform, Mr Fenech added it would cost money now but would save money for taxpayers in the future. The government will be paying €57 million in compensation to bus owners to pave the way for reform.

Mr Fenech said the current "mediocre" public transport system absorbed about €7 million a year in government subsidies. The new reformed system would not be subsidised, would be better for the environment and would improve the quality of life.