A plan to build a tunnel connecting Malta and Gozo should be reconsidered and the investment funneled into a transport system that includes a metro and a widened ferry network, Malta's business lobby group has said.

A rethink on the Gozo tunnel is one of 59 recommendations proposed by the Chamber of Commerce, Enterprise and Industry for the next five years.

It published a document on Wednesday outlining its vision for 2020-2025 that also included proposals on migration, good governance and the better use of technology. 

The government has repeatedly confirmed it plans to go ahead with the Malta-Gozo tunnel, which has the support of the Gozo Business Chamber.

On the transport section of the document, the chamber held that public transport systems in the country need to evolve.

Technical and financial feasibility studies should take place on rapid transit solutions that can be implemented in reasonable time frames, it said.

The government should reconsider the investment in the tunnel between Malta and Gozo, and direct the investment towards building a multi-modal transportation backbone with metro connectivity to Gozo, it said.

It also proposed a widened ferry network between Gozo and areas in Malta such as Valletta, Buġibba, Sliema, and Cottonera.

What are the other recommendations?

The Chamber of Commerce unveiled 59 proposals for its 2020-2025 Economic Vision for Malta. Photo: Matthew Mirabelli

Chamber director general Kevin Borg explained that its economic vision was underpinned by five policy fundamentals: securing economic prosperity; fostering human development; supporting the further development of business and enterprise; building on innovation and the investment in infrastructure and the environment.

He said the chamber considers 2020 to be a pivotal year. The right choices will enable Malta to evolve in a fast-changing world increasingly driven by disruptive innovation, technology, and increasing concerns about sustainability and the impacts of climate change. 

The document states that Malta in 2020 is similar to Malta in 1990: it is at a crossroads where decisions taken today will shape Malta’s medium to long-term future.

Mr Borg said the vision is two-pronged – on the one hand, it aims to achieve smart economic growth whilst, on the other, securing sustainable economic development. 

On the digital economy

Among others, the chamber is recommending a Prime Ministerial-led task force, which includes the Chamber and other important stakeholders, to lead the design and implementation of the fundamental elements that allow Malta to be at the forefront of the 5G-based new digital economy as well as an extensive review of the use of e-government services to identify bottlenecks hindering the uptake and use of these services. It also suggested that the Malta Information Technology Agency be tasked with building a Business e-Portal to reduce the cost of administration to businesses.

On good governance

One of the main principles driven home during the launch on Wednesday morning was the need to restore the country's reputation on an international level. To this end, the chamber compiled a separate report containing 60 recommendations to restore the damage done to “brand Malta”. 

The chamber’s deputy chairperson Marisa Xuereb stressed the importance of quality as otherwise Malta and business will be outsmarted by other contenders. The chamber was also focusing a lot of internationalisation of businesses, she said, since the local market was too small for companies to grow so they needed to look beyond Malta’s shores. Here too, she stressed upon the restoration of Malta’s reputation “so that we become a trusted partner in international fora.”

The chamber demanded a systematic clean-up of all structures and offices that have been implicated in facilitating corruption, whether actively or through their inaction, and a thorough review of all public procurement contracts that have been negotiated by implicated persons, to ensure that the national interest is safeguarded.

“In the 2014–2020 vision, the chamber underlined that the inefficiencies in the judicial system were such that it had become a liability to Malta’s continued economic growth. The chamber notes that the government embarked on reforms of the judicial system.

However, five years later, the judicial system still fails to perform to the expected level. Business requires the certainty of prompt and expeditious resolution when disputes occur. A judicial system that performs poorly inhibits the attraction of premium foreign investment to Malta. The chamber reiterates the position for a swift, fair, accountable and transparent judicial process.”

On construction

On the construction industry, the chamber suggested a shift to sustainable and green construction, and the rolling out of the Leadership in Energy and Environmental Design (LEED) certification – one of the most popular green building certification programmes used worldwide.

On labour

On labour, the chamber said that by importing talented and skilled migrant workers, Malta will strengthen and expand its base of human capital. In turn, this will allow the country to meet the demand to spur an expansion of economic sectors already in place, as well as to be able to
build new ones. 

Malta should seek and embrace foreign talent, and not fear it, is said, adding that it should make more productive use of migrants who seek refuge in Malta on humanitarian grounds. 

“If provided with the appropriate language and cultural training, these persons can productively engage in the economy and contribute towards lessening potential emerging tensions in Malta’s fast-changing culture.” 

It said Malta needs to adopt a far-reaching, zero tolerance policy towards employers who exploit foreign workers by providing them with employment conditions that do not meet legislative requirements. It suggested a name shaming policy in the context of the exploitation of foreign human capital and the strengthening of its enforcement and sanctioning regime.

How would progress be measured?

Chamber of Commerce, Enterprise and Industry president David Xuereb. Photo: Matthew Mirabelli

Chamber president David Xuereb said the chamber will be following the uptake of its recommendations by identifying a number of indicators that will tangibly assist in the measurement of progress throughout the five years. 

“We came up with 59 recommendations which are tangible and achievable over a five-year period. They are measurable and we will be updating the progress on a six-monthly basis. It strikes a balance between economic development and people’s quality of life and the sustainability of the environment in which businesses operate,” he said. 

The document was compiled by a group of 26 top executives of multinational institutions which came together without politicians and economists and drew up a business plan for the country as if it were their own business.