The economic and social loss of events taking place over the past year has been well-documented in recent weeks, with the loss of lives, jobs and businesses taking an unprecedented toll.
Yet, the reality we face also offers a silver lining. The current pandemic has collectively placed us, as a country, at ground zero level, offering a unique opportunity for a general restart on par with our competitors. This is the right time to sit down together – politicians, experts in various fields, business and thought leaders – to chart the course of our nation for the decades to come.
Envisaging a vision that yields long-term success requires a strategy accompanied by the will to implement the necessary changes, whether legislative, regulatory, or otherwise. As a country, we should resist the temptation of going for growth at all costs by shooting in various directions, in the hope of getting something right. Rather, we have a unique opportunity to truly mould our future by identifying clear, achievable objectives and adapting the tools needed accordingly.
Before we take the plunge and head towards a particular route, we need to truly understand the needs for industry to flourish in Malta. These tools are indeed the biggest challenge we face and include education, banking, fiscal measures, diplomacy and travel connections, to name just a few. This is a point I would like to drive home in a strong manner.
We should resist the temptation of going for growth at all costs
Malta’s investment promotion agency has been very active in recent years to encourage businesses to consider new markets, particularly in developing countries. That is all great and a move I commend. Yet, such promotion needs to be accompanied by tangible reforms that make having businesses in such markets realistic and profitable.
Here, we are talking about the need for good air connectivity to such locations, eliminating or, at least, reducing the need to revert to expensive and time-consuming journeys via other destinations.
We are talking about attracting and incentivising trading banks that understand how business in certain locations and markets operate and which have links to correspondent banks that are strategically and uniquely located.
We are talking about having consulates representing these markets which save entrepreneurs having to go through other European countries for legalisation of documents and issuing of visas, resulting in huge delays and costs, putting us at a significant disadvantage against our competitors.
Most importantly, we have to ensure that educational policies move hand-in- hand with such a vision. I am concerned that we live in a reality that our country counts few thousands of unemployed people, especially young ones while, at the same time, businesses in niche economic sectors, such as financial services, gaming, oil and gas and many others, are struggling to find the right resources and resort to recruiting from abroad to sustain their growth.
Finally, it is also about having the right incentives to develop local champions who are able to become drivers of growth in their own way. Sure enough, foreign direct investment remains a key contributor to growth in a smaller nation. Yet, we must encourage and provide the space for the local investor to grow.
A strong economy is one offering solid platforms and programmes for its local entrepreneurs to explore new markets while willingly investing in the country’s physical and human infrastructure to develop further the specific industries.
These are just a few examples of the wide-eyed vision we need to undertake in the months ahead. I believe that no political party, business leader or expert can see all the advantages and pitfalls of any particular strategy.
This is why the country needs to enable an open and frank discussion, roping in industry leaders and thought leaders to identify not only the sectors which can be developed in the coming decades but also the gaps that need to be addressed to transform such ideas into reality.
The pandemic has pressed the reset button for us and our competitors. It is up to us to make the best use of this opportunity and to truly prepare ourselves for the exciting journey ahead.
John Naudi is the CEO and founder of the PB Group of Companies, a product specialist and engineering company operating within the upstream oil and gas industry in Africa.