The post-pandemic reality has established what can be described as ground zero in the highly competitive market of attracting foreign direct investment. This is both a risk and an opportunity for jurisdictions to make up lost ground.
The scenario Malta finds itself in is a mixed one.
On the one hand, the economic fundamentals, the stability of the banking and the wider financial system, and key unique selling points such as a highly-trained, knowledgeable workforce remain ever-present.
However, at the same time, Malta’s reputation as a tarnished jurisdiction remains a challenge that needs to be urgently addressed by all stakeholders – this will make or break the country’s competitiveness in the years ahead.
In the ever-evolving landscape of international commerce, competitiveness is the linchpin that determines the ability of a nation to thrive. Owing to its strategic location, Malta has been steadily cultivating a reputation for being a competitive force in the global market.
For this to happen, it is fundamental that Malta restores its once-unblemished credentials in terms of the rule of law, governance, adherence to the highest international standards in procurement, and refocuses on attracting quality, rather than just quantity.
In parallel, the government needs to be committed to create a conducive business environment, coupled with investments in education and innovation, so as to bolster Malta’s standing of attracting international direct investment.
At the heart of Malta’s competitive strategy lies the development of a strong national brand. ‘Brand Malta’ is not merely a glitzy marketing slogan that looks great in a promotional campaign; it captures the unique identity, values and offerings that set Malta apart in the global market.
From its rich history and cultural heritage to its modern telecom infrastructure and business-friendly policies, accessibility and skilled multilingual workforce, Malta has been actively shaping and promoting its brand to attract investors, tourists and trade partners alike.
Brand Malta captures the unique identity, values and offerings that set Malta apart in the global market
We managed to overcome every difficulty faced and maintained the integrity of our brand and what it represented. Despite our small size, the Maltese jurisdiction became one which other countries aspired to mirror. Brand Malta attracted quality long-term foreign investment that strengthened the economy and the country.
A cursory glance at our maritime and aviation registers, international financial service brands domiciled or operating out of Malta, the huge expansion of our education sector and the growth of our skilled workforce are only a few examples which prove the success of Brand Malta and the investment attracted to the islands.
Unfortunately, Brand Malta has been damaged and requires immediate attention. Our brand identity, strength, performance and positive aura in comparison to other jurisdictions has taken a number of hits in the recent past. It will take more than slick advertising, marketing and testimonials to put it right.
The present, mass low-revenue tourism, embattled environment and multi-lane gridlocked roads will not help either. Nor will the lack of enforcement, non-functioning institutions, or institutionalised corruption. Action across all fronts is required as a matter of urgency.
To repair the damage before the ship sinks, we need the government to take the right decisions. We expect this to take place in a credible, coordinated and transparent fashion. While the government ought to set its sights on global competitiveness, the importance of maintaining a level playing field on the domestic front must be stressed.
This commitment to fairness ensures that local businesses, regardless of size or industry, have equal opportunities to thrive. Regulatory frameworks, transparent policies and initiatives to support start-ups, including easier access to finance, all contribute to creating an environment where innovation and enterprise can flourish.
The concept of a twin digital and sustainable transition encapsulates Malta’s journey through economic and digital transformations.
The government’s support in navigating these transitions is crucial for businesses to adapt and thrive. Initiatives such as investment in digital infrastructure, upskilling the workforce and fostering innovation are pivotal.
By aligning with global trends and technological advancements, Malta should aim to position itself as a hub for digital innovation and economic growth. I look forward to witnessing the optimal allocation of EU funds which will support Malta’s efforts to achieve its goals in the long run. Again, I insist on full transparency in the way such funds are allocated.
In conclusion, Malta’s pursuit of competitiveness, the cultivation of Brand Malta, the commitment to a level playing field locally, and the strategic support for the twin transition are interconnected elements propelling the nation forward in the international realm.
As businesses in Malta embrace these principles, they not only contribute to the nation’s economic prosperity but also become ambassadors of the resilient spirit that defines Brand Malta on the international stage.
Jerome Caruana Cilia is the Nationalist Party’s spokesperson on finance.