One of Malta’s most successful financial experts says the country needs to do more if it is to sustain its current economic growth.
Fund manager Anton Tagliaferro, who lives in Australia, believes the Maltese government should improve the island’s infrastructure or it will struggle in the future.
“If Malta was a client, I would advise it to invest more in infrastructure as roads and traffic are becoming a bit of a nightmare,” he said.
Mr Tagliaferro visits the country several times a year to use it as a base for doing business in Europe, as well as to visit Premier League side Balzan FC of which he is the chairman.
“Malta’s favourable tax rate has incentivised businesses from abroad to be based here and it is obvious the country has prospered because of the government’s economic policies. But there could have been a bit more planning,” he explained.
“Lots of good things have happened, but it’s easy to see that the construction industry has got a bit out of hand.
“Now, the question on everyone’s mind is how sustainable all of this is and whether consumer and business confidence – which both took a hit from the political turmoil at the end of 2019 – can be fully restored.
It’s easy to see that the construction industry has got a bit out of hand
“There is no doubt that at some stage the construction sector – which tends to be highly cyclical – will slow to a more sustainable rate and at some stage an oversupply in some sectors of the property market will occur and we will see prices ease.”
In Australia, Mr Tagliaferro is an investment director at Investors Mutual Ltd, and sits on the board of directors at QV Equities Ltd, a listed investment company which he co-manages.
He recently published 20 Lessons from 20 Years of Quality and Value Investing, a book which offers guidelines and tips to people on how to invest their money.
While it focuses on the nuts and bolts of investment funds especially when it comes to those thinking about retirement, Mr Tagliaferro also has some more practical advice for younger people, especially when it comes to smartphones.
“I feel like the next generation are suffering from a deluge of information and very little knowledge,” said the 60-year-old, who operates a multi-million-dollar business with just two Nokia phones.
“I use one when I’m in Australia and one when I come to Malta,” he said.
“I don’t use a smartphone as I don’t want to be bombarded with information all day. If I had a phone like that, I’d be on Facebook all the time and checking the London stock market or what’s happening when the Dow Jones opens in the US, and I don’t want that.”
The father-of-three says he has already convinced his 23-year-old son to use his phone less.
“Telephones were invented for communication, but the way I see it is if it’s really urgent they can call me. And what I don’t want is to sit around scrolling all day.
“Nowadays, you get inside an elevator and everyone is on their phone or they are walking along the street with their heads down. We are all living in virtual reality and I just want to tell people to enjoy the moment.
“I think smartphones are fantastic devices, but the culture around them has become ridiculous. Yes, I often wish I had them for helping me get somewhere on a GPS map, but before they were invented, we survived,” Mr Tagliaferro said.