While it is a given that thousands of local companies are reliant on our tourism sector, COVID-19 managed to further crystallise the indirect links that so many companies have with this one economic segment.

Meanwhile, during the worse months of COVID, as the hospitality industry was on its knees, other industries retained their momentum, with some in fact even flourishing during the pandemic.

Take for example the case of technology companies that enabled secure video calls, those who enabled online ordering and delivery services and the digital games industry. 

This is another reason why we need to continue to invest in tech alongside our more traditional niches. But how?

I am not the first to highlight Malta’s proposition as a test base. In the 1990s, telephony giant Vodafone had already used Malta to act as one of its expansion testing projects outside the UK, for example.

What I am suggesting is that we now harness Malta’s already proven potential as a test base and finally start putting it to work with a plan.

If we turn these strengths to our advantage we can capitalise even further- Carmelo Abela

Malta has the advantage of being a small territory, which is, however, populated by a diversified, cosmopolitan community and their differing consumption and attitude patterns. Good internet connectivity and an open approach by the government and the authorities is another plus. Not to mention the fact that while being an EU member state, thus adhering to European quality standards of regulation, Malta is also close to huge markets like North Africa and the Middle East.

If we turn these strengths to our advantage, we can capitalise even further.

I also believe that this would be a win-win not only for the economy but also for our environment. Activities and jobs in relation to the development and the testing of technology prototypes and services, while creating better employment opportunities, would create fewer burdens on our environment when compared to more traditional economic sectors.

Let me clearly state, however, that by saying that Malta can become an exciting test bed, it does not mean allowing the testing of any technology by any company. The health and safety of our population is paramount; so is Malta’s neutrality.

Lessons learnt and silent wins

In embarking on this work we should also learn from experiences that we have recently had with pushing new emerging technologies. Changes in laws to make them attractive for certain sectors to be launched from Malta are positive. However, we need to see that such laws are backed by encouraging operational rules and conditions.

We need to focus on sub niches on which we are being proven right, like the digital games sector and AI, for example. I have noticed how quietly entities like Gaming Malta and Malta Enterprise have been building a close-knit cluster in the digital games field, with new investments and local expansions.

More can be done here including via attracting game publishers, independent game studios and VCs to Malta while also appealing to companies that bridge digital games and e-sports.

Not to mention Malta’s possible promise when it comes to using AI and the Internet of Things (IOT) in, for example, the testing of driverless cars – in closed environments.

Malta’s own natural resources are sometimes underutilised treasure troves.

Think of our vast territorial waters for example; with the required professional procedural and safety set-ups, these can be utilised for piloted or unmanned drone testing.

An active and relevant MCESD

I have made it clear that I want the Malta Council for Economic and Social Development (MCESD) to be more proactive and relevant in its output in relation to the economy.

I believe that both the body itself and its member organisations need to have the right technical resources at hand in order to be able to navigate the most relevant policy discussions. Improving Malta’s technology test base offering can be one of them.

We need to dissect this and similar ideas, especially when it comes to making changes from an employer and employee point of view. Diversification and harnessing Malta’s unique selling points will be a central debate in order to future-proof our economy, our jobs and our livelihoods.

Meanwhile, companies that focus on RDI and testing might also bring about new challenges like highly-paid but cyclical jobs.

This is where the government needs to intervene to assist both Maltese and incoming innovative start-ups but also mid- or high-tier FDIs that would be willing to invest in Malta. Our offering would also need sectoral improvements by updating certain laws.

As stated in the beginning, Malta does not afford not to continue its policy of diversification. The level and quality of economic activity that we already have in Malta can only be sustained by always striving for more.

As clearly stated by Prime Minister Robert Abela, our government and this country remain open to the ideas of serious entrepreneurs who can help us create value.

I am encouraged to see that the majority of our social partners have understood the opportunity that we are presented with and I look forward to work further with them in order to benefit as much as possible from such a national approach that adds economic value in full respect of international standards, our national predisposition, while safeguarding the health and safety of our people.

Carmelo Abela is Minister within the Office of the Prime Minister.