This week we hosted our annual flagship event, Future Realised. Now in its 20th edition, this event has become the leading forum for debating Malta’s economic direction. We are grateful for the unwavering support of the Malta Chamber and the various decision- and policymakers present, as well as the 1,000 or so attendees.

Our objective for this conference is clear: to bring together Malta’s decision-makers, influential thinkers and industry movers in a forum that promotes reflection and encourages debate on leveraging our strengths and devising innovative solutions to our challenges.

For two decades, we have been analysing survey findings and tracking trends. Our survey explores what has made Malta more or less attractive since 2004. While some elements have remained consistent over our 20-year journey, much has evolved.

The country is viewed as attractive by the majority of investors. There has been a recovery from the lows of 2019-21, although attractiveness has dipped slightly this year.

Previous surveys have highlighted two resounding pull factors – tax and telecommunications infrastructure. Yet some criteria that were major draws in our earlier surveys are no longer viewed as attractive. The stability of the social climate has scaled down from the peaks experienced when we started our research.

Labour costs and skills, which were major selling points, are now challenges. The stability and transparency of the political, legal and regulatory environment, although improved from 2020–21, remains significantly lower than the highs of 10 years ago. Transport and logistics infrastructure, a consistent challenge, continues to be perceived negatively.

Yet, amid these challenges, one key advantage shines through − our size. Like a nimble sailing boat among larger ships, our small size affords us the ability to swiftly navigate changes, adapt to new circumstances and implement innovative solutions. This agility, this inherent advantage of being small, is a key factor we need to leverage as we chart our course forward.

And we should always bear in mind that while the sailing boat cannot match the larger ship’s cargo capacity, it can respond to changes or challenges, be it in weather or currents, quickly.

Back to Malta − skills, tax reform and reputational concerns are highlighted by respondents as the challenges to address. Infrastructure and education are seen by most as the key areas that Malta needs to prioritise.

Against this backdrop, we are losing ground in two of the most fundamental areas that potential investors assess − workforce skills and availability, as well as the stability of the political and regulatory environment.

Despite the challenges in attractiveness and infrastructure readiness, only one in 10 respondents want less − the majority of investors want more quality and one in every four want more of everything. The solution, according to respondents, is enhancing and nurturing investment. Demand for more investment is pervasive across different areas − education, energy, roads, health and the natural environment.

Like a nimble sailing boat among larger ships, our small size affords us the ability to swiftly navigate changes

A significant number of current investors want to grow their business year on year, and the overwhelming majority plan to stay here. This is extremely positive.

Leveraging Malta’s strengths in telecommunications infrastructure and technology, not least the significant skills base on the island built through the growth of the gaming industry, may be part of the answer. Another may be leveraging the experience of the people who already know us and the people they work with. These are the people who are here and intend to stay.

Last year, we referred to calls for an adjustment or change to the island’s economic model, to one that emphasises substantial, tangible improvements in infrastructure, the labour market and holistic economic sustainability beyond mere numerical growth. Those calls are more pronounced this year. And this year we are building a number of initiatives around the themes of ‘build’, ‘share’, ‘generate’, ‘engage’ and ‘change’.

When we refer to build, it is not necessarily bricks and mortar. In fact, the greatest call is for education. Still the desire to build more infrastructure is there, particularly as businesses continue to expand.

When it comes to sharing, logistics immediately comes to mind as an opportunity to explore in alleviating growth pains. But there could be more areas to explore and we could also look beyond our shores. Perhaps Malta should even help its businesses to offshore some of their less value-adding processes and functions to cheaper locations.

In a more globally connected world, collaboration is key, and choices need to be made. By ‘engage’ we refer to engaging with techology. Both the public and private sectors need to engage with new technologies to manage growth as efficiently as possible. Views on the ground are encouraging. This should help us to not only be efficient but also change behaviours to sustain the island’s attractiveness and appeal.

Returning to the sailing boat analogy, as the sailing boat harnesses the power of the wind, a country leverages technology to fuel its growth. It implements smart systems, automates processes and adopts cutting-edge innovations that allow it to punch above its weight, competing with larger nations on the global stage.

Just as a sailing boat relies on the synergy between its sails, hull and rudder to move efficiently, a country integrates its policies, infrastructure and education to create a cohesive environment where technology can thrive. It invests in renewable energy to power its journey, in high-speed connectivity to maintain its course, and in the education of its people to ensure a crew ready for the future.

In this ocean of global competition, the sailing boat does not seek to become a massive cargo ship or cruise liner; instead, it aims to be the most maneuverable, the most efficient and the most forward-thinking vessel at sea. It understands that in the modern age, it is not sheer size that dictates success but the ability to adapt, innovate and leverage technology to create sustainable growth.

And as we look to Malta’s future, this does not mean that the road ahead is easy, as we need to develop and generate the right skill sets, particularly with the young generations coming into the workforce.

We believe that our survey provides an objective assessment of the nation’s current attractiveness levels, and we at EY look forward to discussing and debating this with all stakeholders. We will, during the forthcoming year, continue the debate through a whole suite of events being rolled out with the themes of ‘build’, ‘share’, ‘generate’, ‘engage’ and ‘change’.

We have felt over the years that so much comes out not only from the survey but from the ensuing debate that it would be a pity to stop there. So 20 years on, we will be building a continuous forum for the sharing of insights, celebrations and concerns with the business community, the public sector and politicians. And we will do this with the Malta Chamber who have been our companions throughout most of our Future Realised journey.

Let me conclude with a quote which is often attributed to Charles Darwin:

“In the long history of humankind… those who learned to collaborate and improvise most effectively have prevailed.”

Perhaps what he said some 150 years is relevant not only to the evolution of species but to evolution and survival in the business world too.

Ronald Attard is EY Malta managing partner.

The 2024 Attractiveness Survey Report can be downloaded from ey-malta-attractiveness-report-2024.pdf.