In recent weeks, we have been told that the Maltese economy has taken a turn for the worse, with consumption slowing and firms laying off workers. This is not the first time this narrative has been peddled around.
Before 2013, voters were warned that Labour would not work. Once we were elected, they said Malta would become the next Cyprus. Before the 2017 election, voters were warned that most financial services and gaming companies would close down.
The scaremongers have been proven wrong time and time again.
Instead of a spike in the jobless, we have the lowest number of unemployed and the highest number of employed people since data started to be collected in the 1960s.
Instead of going bankrupt, we have had a surplus since 2016 and have halved the debt burden while accumulating €600 million in the National Development and Social Fund.
Instead of financial services and gaming firms laying off workers, two years after the 2017 election, there are 3,500 more workers in these sectors, or an additional five workers every single day.
The Eurobarometer held by the Commission in the second half of November shows that 81 per cent of those interviewed consider the Maltese economic situation to be good, as against just 45 per cent of respondents in the euro area.
While international economic prospects for 2020 are not rosy, our economy is very well equipped to face challenges
Two-thirds of Maltese respondents see themselves as middle class, the highest proportion in the EU, well above the EU average of 46 per cent. Whereas across the EU, there is a majority of 12 per cent of the population who believe the
economic situation will worsen in 2020, in Malta there is a majority of five per cent who believe that things will get even better. There is still strong trust in government and high optimism.
While international economic prospects for 2020 are not rosy, our economy is very well equipped to face challenges. We enter this period with a household saving ratio of 18 per cent. Our households have accumulated over €13 billion in bank deposits alone, nearly double the amount in 2012.
Similarly, our companies today make double the profits they made in 2012 and have reduced their debt burden, despite investing heavily. This year, investment rose by 12 per cent to a record
€2 billion. Government finances remain strong, with results till November exceeding the previous year’s figures.
This means that the new prime minister has ample opportunities to drive forward an agenda of enhanced social and economic progress. The task ahead is not just to keep the ship steady during a time of international economic challenges. Given the strength of our situation, we can embark on new projects and refocus our efforts to make a material difference to the lives of our families.
We have to optimise our public spending to build not just the physical infrastructure for the future, but also much stronger institutions and invest more to upgrade our human resources.
We can continue to sustain the culture of working and saving by reducing further tax burdens and providing incentives, but at the same time we can devote more resources to help those who cannot work, primarily pensioners and those with disabilities.
We can strengthen our economy further by diversifying more, while concurrently enhancing our quality of life by adopting a more vigorous approach to environmental protection and building together a greener economy.
2020 is truly a year to look forward to. It has the potential for the Labour movement to change further, turning weaknesses into strengths and giving a new progressive direction to those of good will in our country.
What we achieved in the past is just a basis for what we can achieve next.
We can do so much more if we stay focused and remain true to our progressive agenda.
Silvio Schembri is Parliamentary Secretary for Financial Services, Digital Economy and Innovation.