Plays Its Cards Right
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SPECIAL SUPPLEMENT BY UPPER REACH Tuesday, December 23 2014 M A LTA PLAYS ITS CARDS RIGHT This island nation has had much to celebrate in 2014, including being one of Europe’s top economic performers, as well as several milestone anniversaries: independence, becoming a republic and EU entry his is a banner year in Malta and the island na- recognising that Malta is moving in the right direc- tion strategically located smack in the centre tion. This in no way means that we have achieved Tof the Mediterranean has had a lot to celebrate enough. We will aim higher,” Dr Muscat promises. in 2014 – and not only its decade of European Un- International investors are taking the PM at his ion membership, 40 years as a republic and a half word. The most recent IBM Global Location Trends century of independence from the United Kingdom. Report ranked Malta as number two in the world Another reason for hoisting the champagne for the quality of the foreign direct investment (FDI) glasses is that last year the country registered GDP it attracts, just behind leader Ireland but ahead of growth of 2.4 per cent, one of the highest growth such stellar investment destinations as Denmark, rates among the 27 members of the European Union South Korea, Japan and Sweden. while the other Eurozone economies contracted by Well-trained workers, low labour costs and mem- 0.4 per cent. bership in the European Union are just some of And little Malta, along with European powerhouse the factors attracting FDI, along with the country’s Germany, were the only EU states to experience geographic location, English as an official language almost continuous job growth from 2002 to 2013, and a tight, yet flexible regulatory regime. according to Eurostat. In the recent economic According to government data, Malta lured 36 Malta’s PM Dr Joseph Muscat travelled to the UK last July, where he met with David Cameron storms buffeting the rest of Europe and the world, completely new FDI projects in 2013 and authorities Malta managed to remain on course to prosperity, approved another 17 new ones in the first half of this ing, thanks to comprehensive legislation which has to do business, and, as the prime minister argues, with its financial and banking systems remaining year, with the fastest growing sectors involved in made Malta the gaming capital of Europe adding despite its size, the country has vast potential. stable throughout. health-related activities, precision engineering and another booming industry to those already well- “Throughout our long history, Malta has man- “Malta of today doesn’t just stand on its own two others requiring a high degree of digital creativity. established ones of manufacturing, trade and, of aged to reinvent its economy, its success, its own feet; it punches above its weight,” boasts Prime Baxter International, the US-based health prod- course, tourism. self by always being innovative in its outlook,” Minister Dr Joseph Muscat. “We are a respected in- ucts manufacturer, recently announced it was add- When most people think of Malta its beaches he said in a recent speech in New York City. dependent nation, part of the European mainstream, ing 190 jobs at its Maltese plant producing medical and sunny days come immediately to mind, and “This means that Malta has always been much enjoying excellent relations with our neighbours and disposable sets for the infusion of solutions and International Living magazine recently rated the more important than its small size would lead countries worldwide.” blood transfusions, proving its trust in the country’s country as having the best climate worldwide. one to believe.” “Being among the best in Europe is not a tagline competitiveness as an investment location and in Overseas visitors know this, and more and more anymore, it is becoming a reality. We are among the skills of the local labour force. are arriving each year, making tourism one of the the top-ranking EU countries for people in work, And another new FDI project is a joint venture country’s main economic sectors. In 2013, tourist PROJECT TEAM: Pablo Delcassó, Karla our growth figures are going up and our deficit is with International Energy Group of Singapore to arrivals hit 1.6 million, up almost 10 per cent over Arteaga, Connor Sullivan, Julia Sniegovski, going down,” he says. develop Malta into a trading hub for energy products the previous year, while expenditure by visitors rose Artur Sirbu and Fatima Ruiz-Moreno Owen Bonnici, Minister of Justice, Culture and between Europe and Asia with the first transactions 9 per cent compared to 2012. Local Government, notes: “We changed from an scheduled to be carried out in 2015. And why do they come? Agreeable weather (no UPPER REACH economy built on war to one built on prosperity, “Malta may be a small investment destination, surprise there) was among the main reasons cited 68 King William Street, services, tourism, and on the need of providing but foreign investors know that it is ideal for their by 57 per cent of tourists surveyed by the Malta London EC4N 7DZ fresh solutions to economic questions. Malta has needs because there is an international language, Tourism Authority, followed by the country’s histori- T. +44 (0) 207 959 2424 managed to use its geographical position and the reliable and flexible connections and Malta boasts cal and cultural attractions at 40 per cent and value [email protected] talent of our people to build this prosperity together.” a workable environment,” says Maltese Minister of for money at 32 per cent. “The European Commission and credit rating Finance Prof Edward Scicluna. Malta, in short, has a lot to offer the world #Malta agencies have had words of praise for our country, Another sector enjoying healthy growth is iGam- whether it’s a great holiday destination or a place MALTA PLAYS ITS CARDS RIGHT This is an independent publication by Upper Reach 2 ROBUST financial sector attracts global attention Malta has just won for the second consecutive year the title of “Most favoured domicile in Europe” at the Hedge Fund Awards. This is a tangible sign of the financial sector’s robust fundamentals and a strong suggestion of more good things to come hese are boom times for Malta’s growing finan- cial sector as the island’s economy becomes Tmore international, an influx of foreign banks open their doors, financial services expand, the Malta Stock Exchange (MSE) creates new markets and the government works to ensure the tiny country remains a welcoming environment while adhering to international regulator standards. “One of our top priorities at the moment is our emphasis on continuing with fiscal, economic and financial stability,” says Minister of Finance Prof Ed- ward Scicluna, pointing to Malta’s escape from the financial meltdown that devastated other southern European economies as proof that the island nation is doing things right. “It was an achievement that we got out of that mess in a healthy way. Our banks didn’t need any bail out and the European Central Bank’s latest results Paul J. Spiteri, Chairman of Malta Stock Martin Vella, Managing Director of Halmann are confirming this state of affairs.” Exchange Vella Group Malta’s financial authorities are justifiably proud of the country’s banking sector for other reasons tinue the spectacular growth it has enjoyed since presenting themselves is Halmann Vella Group, says as well, noting that the Malta Financial Services its founding in 1990. the firm’s Director of Finance Joseph Tabone. Authority’s (MFSA) high regulatory standards copy “When we started there was no equity and fewer “This will allow refinancing of our existing facilities as European Union legislation, but at the same time than eight government stocks with something like 8,000 well as making strong investments in our manufactur- are flexible enough for banks to operate in a modern account holders,” recalls MSE Chairman Paul J. Spiteri. ing facilities and demonstrates our group’s clear com- financial environment. “Today we have 23 equities quoted, 44 corporate ones, mitment to the Maltese industrial sectors,” he explains. And for international banks, the country offers “There are thousands of [SMEs] more than 50 government stocks with close to 80,000 “We’ll be spending between 3 and 5 million euros in qualified professionals in accounting, taxation, IT looking for an opportunity to raise individual investors holding listed securities, or approxi- machinery and new state-of-the-art equipment, and and law, English as an official language and com- mately 50 per cent of the Maltese adult population.” besides investing in technology, we will also continue petitive operating costs. capital on a market and we are Acknowledging that Malta is a small country with investing in our human capital resources.” “Our country has always been seen as a hub and seeing a lot of interest” a limited growth rate if the MSE remains active only Celebrating its 60th anniversary this year, the group today this image is evolving into one where Malta is domestically, the exchange’s board has worked to has long been a leader in the manufacture and sale of seen as a safe and stable base located in a difficult boost its ability to become an international player. terrazzo tiles, especially marble and natural stone with and unstable region,” the finance minister explains. Eileen Muscat, CEO of Malta Stock Exchange “The last few years have been dedicated to prepar- the United Kingdom as its principal market. “International companies notice this and so we are ing all the necessary groundwork to be able to take on But now, with Malta’s new emphasis on internation- now entering into sectors such as operations and international business and last year the MSE approved alisation, Halmann Vella is seeking to further expand to logistics with a new service industry based on loca- of the fact that these alone are enough to lure outside its first international member,” explains the MSE’s CEO, foreign markets with innovative products and services tion, stability and trust.” interest without having to dangle additional carrots as Eileen Muscat.