Over the past few weeks many have resorted to social media to express positive words and that is certainly a good thing about the nation’s approach to the pandemic. I genuinely believe that Malta will be able to rise from this terrible challenge and flourish again.
I do not say this lightly or simply for the sake of motivating readers. It is because Malta has gone through many scares which brought our economy to our knees. Yet, we have always reinvented ourselves and emerged better than before. I have no doubt this time it will not be any different.
Take our recent history as a proof of this.
The British had already started to significantly reduce their presence in Malta following Independence to eventually run down all their business here by 1979. Despite many people fearing the worst as our former colonisers left, Malta was able, from the 1980s to the early 1990s, to build our tourism industry from scratch, to attract many manufacturing businesses, particularly in the textile and food sectors, and to develop niche economic areas such as the maritime sector and the Freeport.
Fast forward just 10 years and globalisation immediately forced us to renew ourselves completely once again, as low-cost, labour-intensive factories moved elsewhere, while offshore financial activities started to be frowned up by international financial authorities.
Yet, thanks to the vision of our political leaders, Malta sought new grounds and managed to attract new businesses in sectors such as a wide range of financial services, digital gaming and higher end manufacturing such as the pharmaceutical industry.
Similar challenges were experienced during the international crisis of 2008-9, which brought world economies to a standstill, paralleled (contrary to today) by an exorbitant price of oil.
Even here, Malta was recognised by the EU as an example to follow in the way the country approached the crisis and attracted new business niches, such as aviation maintenance and the development of digital games.
I believe this is what it will take to emerge as strong as ever here. I have no doubt about the will of the Maltese worker to dig deep, think, innovate and come up with the ideas which secure growth. However, direction needs to come from our leaders.
Direction needs to come from our leaders
We need to think of new areas to develop our industry as certain sectors will never be the same again. The opposition is at the forefront with these ideas. We see the tourism industry changing dramatically, as airlines go bust and cruises become a matter of concern for quite a few.
Malta can attract a different kind of tourist, such as medical and health tourism. We have also proposed the development of the country as a Mediterranean hub for those travelling from far-away destinations.
We can invest further in the digital economy, the creative economy as well as the circular economy while developing our transport and infrastructure sectors in ways which we can future-proof our economy. Our size is ideal for pilot projects, in particular in green energy, a futuristic sector which is here to stay and can provide for hundreds of healthy green jobs.
These are only a few ideas which can make us take the next leap forward. It is a pity that the government arrogantly shuns any suggestions coming from the opposition.
I believe in restricting political criticism at this time when a pandemic is exhorting such a toll on us all. But if this crisis taught us anything, it is the complete failure of ‘Muscat’ economics, which basically built our economy through the flooding of the country with thousands of foreign workers.
While this ‘steroid shot’ works for a few years, it has showed its constraints and limitations as soon as the first real challenge hit home. It is not sustainable and organisations such as the International Monetary Fund have also, like the Nationalist Party, been pointing this out on a regular basis.
The current health crisis will pass, particularly if we continue following the authorities’ directives. I am confident that as a country the sacrifices we are making now will reap their dividends in the coming months.
However, besides the public’s gallantry, the country seriously needs a vision of where it wants to go. These may be difficult times but yet perhaps the perfect occasion to sow the seeds for tomorrow’s success.
Ryan Callus, Nationalist Party energy spokesperson