2022 has been a strange year on a number of fronts. Still reeling from the aftermath of the COVID-19 pandemic, our country, just like the rest of the world, found itself combating another crisis, this time brought about by war on the periphery of Europe but which still hit us to the core by destabilising markets, prices, production, transportation of goods and services, and so on.

On the domestic front, we also had a general election in which even though the electorate returned the same political party to Government, it still unleashed a number of administrative and political changes, excacerbated also by the efforts to get Malta off the FATF greylisting at the very earliest, as in fact happened last June.

Ronald Mizzi

Right after the outcome of the March 26 election in Malta, I was asked by the Principal Permanent Secretary to move from the Tourism Ministry – where I had been at its helm as Permanent Secretary for the last five years – to the Economy Ministry, which was now being re-designed as Ministry for the Economy, EU funds and Lands. It is a challenge I embraced, even if against a backdrop of the rather strange developments happening around us and which are often leading us to unchartered territories.

The resilience of the Maltese economy is something that we should be proud and protective of. Malta’s annual GDP growth in the five-year period pre-COVID was measured at an average of 8 per cent, placing Malta consistently amongst the top EU countries with a growth more than double the EU average. The resilience of the Maltese economy was confirmed during the same pandemic period as while the hospitality sector was almost at a standstill, the productive industries, aviation services and the services industry in general, including gaming – many of which now fall under my portfolio - kept the economy going whilst Government took the necessary measures - in which this Ministry also took an active part - to sustain domestic demand through ad hoc schemes such as wage supplements, cash grants and financial guarantees to the industry, to mention a few. Thanks to these measures, unemployment has remained amongst the lowest in the EU. While the average EU unemployment rate stands at 6.6 per cent, Malta registers slightly over two per cent. In practice, the percentage of the gainfully employed within the population is the highest in the EU.

In 2022, real GDP growth is forecast to reach 4.9 per cent, which is higher than projected in spring, given the expected stronger gains in the services sector, although tampered by the negative impacts mentioned above. The Economy Ministry and its entities, have been prime contributors to this success namely through the implementation of key Budget and Manifesto measures throughout the last year, all guided by the overarching strategy of safeguarding our industries, whilst nurturing a culture of innovation for the creation of new economic niches – such as blockchain, quantum computing, AI, robotics, life sciences, fintech, video game development and e-sports – for more economic growth, and a better quality of life. We want our country to be a front runner in the fourth industrial revolution, digitalisation and innovation. That is why we are working on a regulatory framework to ensure that AI technologies are embraced; yet are also secure and transparent – whilst also exploiting our cutting edge on other jurisdictions. Of notable importance this year has been the European Commission’s favorable decision for a €4.5 million project to set up a Digital Innovation Hub in Malta, which would provide our start-ups and SMEs with many exciting opportunities for digital transformations.

In the last months we have also finalised work on an umbrella Digital Strategy for Malta, which shall be launched very soon, together with a number of equally important and interlinked-strategies on Cybersecurity, E-Commerce, E-skills and Digital Innovation. These strategies will shape the work of the Ministry and the respective entities for the next five years whilst also stimulate and stir interest and investment by the private sector on the basis of a clear roadmap on where we want our country to position itself.

The gaming industry generates over 11,000 direct jobs and many more indirect ones, and through the Malta Gaming Authority and Gaming Malta, several initiatives, including academic training and bootcamps, continued to be undertaken aimed at further diversifying the sector, especially in e-sports and video gaming, whilst the MGA continued to strangthen the regulatory framework in order to ensure that Malta remains on the forefront in face of a dynamic and constantly evolving gaming industry.

If we want to promote innovation, we need to create the right climate for start-ups which are so essential for vibrant economic growth. In the last months we have studied in detail the feasibility of a venture capital fund and at the same time, we are also working on legislative frameworks and amendments to simplify and improve banking-related facilities and the overall ease of doing business in Malta, especially for SMEs. In similar fashion the Malta Business Registry continued with its project for a business-oriented online portal for company resgistration with the aim of increasing efficiency, transparency and accountability, whilst the Lands Authority and the Lands Registry continued to implement various simplification schemes for the benefit of businesses and residents alike, including the digitalisation of processes.

Whilst incentivising niche industries remains very important, manufacturing retains a core element to our overall industrial strategy and during this year, prompted by a healthy pipeline of foreign direct investment, we continued working with the private sector in the development and improvement of industrial areas that can accommodate ‘clusters’ of enterprises and to equip them with the right infrastructure. Of notable importance is the near completion of the Taxiway Lima at the Malta International Airport, a project which will continue to attract aircraft MRO business to Malta and also ensures that the island’s connectivity remains well served, and we have also kick-started the Onshore Power Supply Project at the Malta Freeport, a project which will make our freeport industry more sustainable and cleaner.

On the Artisan sector, works continued in Ta’ Qali on the construction of the Crafts Village whilst the incubator and Interpretation Centre have now been completed, and works on the iStart Ups and Dying Crafts’ Centres are at an adanced stage. In the meantime work has also started on a new online Register of Handcrafts made in Malta, of Artisans and Handcraft entrepreuners.

I am sure that all these initiatives are and will continue to yield positive results and will be instrumental in the country’s drive towards stability and more economic growth.

Ronald Mizzi is the Permanent Secretary for the Ministry for the Economy, EU Funds and Lands.