Foreign investment vital for continued growth

by Gotthard Tabone

Over the past 30 years Malta has managed to convert an economic structure that was dependent on the servicing of military forces to a diversified economy based on export- orientated manufacturing and services activities, Economic Services Minister Josef Bonnici said.

"However the global scenario is characterised by continuous change and we must be sure to seize all new opportunities so that we do not lag behind," he said.

Prof. Bonnici said that Trade Unions too have a vital role in paving the way for change in our economy. However he warned that it is essential that unions moderate their demands. "unless they do so they will be protecting the interests of those who are still employed at the expense of those who are or will become unemployed."

He said Malta's ability to sustain net job creation in the future is dependent on the country's capability to sustain growth in an international dimension. "It is only in this way that we can absorb the increase in labour supply of over 1,800 persons every year."

Prof. Bonnici said the attraction of foreign investment to Malta is so vital for continued growth that we should all strive to understand the contributing factors that brought it about and to identify future opportunities that may be available for us to exploit.

Malta's strategy has to be that of seizing the opportunity to entrench itself within Europe's developing economic geography. "We have to strive to enable, lead and serve as a pivot in the development of another growth axis reaching from central Europe southwards to us, and from here generate links with north African regions, while strengthening our existing links back to Europe's vital economic axis," Prof. Bonnici said.

He added that this government's strategy is to facilitate Malta's adoption of this pivotal role through the EU membership option, gaining unhindered market access to Europe and attracting investment from outside the EU, most notably from the US and the Far East.

Potential investors in these regions are actively looking for the opportunity to break into the European and Mediterranean region, locating within reasonable distance from Europe's vital axis, while being conveniently placed to target the emerging markets of the Middle East and North Africa.