This year, I was honoured to address EY’s annual Attractiveness Survey conference, as our Chamber of Commerce once again supported this event which has been running for a number of years.
Through its Attractiveness Survey, the event publishes an objective and unbiased measure of how well the country is doing, in terms of attracting foreign interest for purposes of investment. The survey, hence, is an annual appointment for policy makers and industry practitioners alike to fully understand where the pain points of our economy lie.
The findings of the survey consistently highlight the policy areas that need to be addressed, modified or fostered in order for Malta to enhance its attractiveness in the context of ‘free movement of capital’ as it were.
This is also a perfect opportunity to pause briefly and take stock of our situation. Attractive? Yes.
Economically successful? As well… but as a champion of national competitiveness in the country, our Chamber is compelled to challenge any suggestion of sitting back and ‘resting on our laurels’ as we insist on being the agent that drives the country forward to the new levels demanded by the disruptive world we experience.
Success invariably triggers our competition into action – smart and aggressive action, more often than not. The more successful we are, therefore, the stronger and smarter our efforts must be to maintain and consolidate our winning position.
In this context, and on behalf of Maltese business we represent, we as a Chamber insist on being one step ahead of any concerning signals we may be receiving.
We have shown, time and again, that ethical business is often the provider of long-term and sustainable solutions
Case in point, I cannot but mention the World Economic Forum’s Global Competitiveness Index, where we recently discovered that Malta has moved two places in the wrong direction. The result was attributable to the soundness of institutions, skills, market structure and financial systems. Our Chamber made its voice heard about the matter as soon as the report was published on October 12.
Similarly, we are equally interested to learn what the EY Malta Attractiveness Survey has to say about the current state of play and how our investors responded to questions about issues of current, prime concern to our Chamber and our members.
Here, I am referring to, among others, the constant rise in the overall cost of labour; productivity levels across different sectors of business; availability of skills across the board; labour legislation; prevailing rates of rent inflation; the ever-rising operating costs; transport and logistics; our taxation structures; the present levels of RTDI conducted in our country; and last but certainly not least the prevailing perceptions about Malta abroad.
These matters are very relevant to our members and the local business community at present. While we stand in front of our next wave, not without a certain excitement we must be sure that we are well equipped to take the wave, and ride it successfully.
The next wave is inevitable, and the opportunities it brings with it are certainly interesting. We are encouraged by the fact that as a country, we are embarking on a forward-looking vision while, in the process, strongly embracing the digital revolution.
However, our country’s competitiveness is the product of a wide array of investment attractiveness factors which must all be given their due priority and attention. The necessary transformations must continue to take place and they must do so in a manner that address any shortcomings and without losing sight of the fundamental objectives of investment attraction. In fact, during this year’s Budget consultation process, the Chamber strongly recommended adopting a ‘sustainability’ approach in economic and environmental terms. We proposed that today’s progress must not occur at the expense of tomorrow’s. Our input throughout the process was to capitalise on the present economic resilience by investing in further development and growth that is both sustainable and beneficial to the country.
Therefore, we must all take heed of the warning signals being given to us.
I also appeal to the authorities to continue to support social dialogue and consult with the business community through our Chamber.
We have shown, time and again, that ethical business is often the provider of long-term and sustainable solutions.
David Xuereb is president of the Malta Chamber of Commerce, Enterprise and Industry.