13 - 19 April 2000

Malta can take the lead in digital commerce

by David Kelleher

Malta is in an ideal position to become a leader in digital commerce and the island has the necessary qualities to do so, Andreas W. Gerdes, chief executive officer of iWorld, a Internet incubator company based in Malta, has said.

In an interview with The Malta Business Weekly, Mr Gerdes said that top US banks and investors are aware of the potential in Malta and people must be made aware of this potential.

"Malta is now in a position to take a lead in digital commerce. Now the top companies in the US know about the island and what it has to offer. There is a need to convince the people that this can be done," Mr Gerdes told The Malta Business Weekly.

His comments come about after the company sold 10 per cent of its shareholding to four international investors - Bank of America; Deutsche Bank AG, Hikari Tsushin Capital Inc. and PaineWebber Inc.; - in a deal worth $35 million dollars.

Mr Gerdes said a change in mentality is required and although it is difficult to convince international investors, it is possible.

"The mentality has to change. Many companies and investors believe that Malta is only good as a back office and nothing else. They cannot visualise the island as the centre of operations. While many believe the Malta are the "feet", I stress that the island is can be the "head", the focal point of all activity," Mr Gerdes said.

Convincing major global players that the head office in Malta is the most suitable location and not London or Berlin, was not easy.

"It was a new experience, but we enjoyed swimming against the current. In Malta people have the spirit to lead and change. The island offers an excellent location, possess the multi-lingual skills and provides very good financial services," he said.

iWorld is an incubator company that is focusing on m-commerce. The company will be venturing into the applications market for mobiles such as allowing a mobile user to order tickets via his or her phone, or else download material or articles from the net prior to a business meeting.

"These are all possibilities that can be turned into profitable ventures, and that is the main role of iWorld - to generate ideas and spawn individual companies," he said. iWorld already has identified around 30 areas that could be incubated and transformed into profitable companies.