13 - 19 April 2000

FOI says industry White Paper overlooks foreign direct investment

by Franco Aloisio

The White Paper on Malta's industrial policy - "Prosperity in Change - Challenges and Opportunities for Industry" - does not specifically state how the country is to attract foreign direct investment, the Federation of Industry (FOI) said yesterday.

In its reaction to the White Paper issued by the government last December, the FOI said the document is a good starting point for charting the long-awaited industrial policy document. However, it fails to address the real issues facing the economy.

FOI President Joseph Zammit Tabona said Malta needs to decide those areas of economic activity in which it realistically stands a fighting chance to be successful.

"It is indeed the right time to prepare for eventual opportunities in this direction by concentrating our energies in order to sharpen our advantages, by improving our education and infrastructure and directing our investment promotion budgets to specialised activities tailored to Malta's uniqueness," Mr Zammit Tabona said.

He added that education is the key factor for whatever strategy Malta embarks on. The White Paper is a disappointment in this respect because it only makes a brief mention on education and gives the impression that it has overlooked human resources development, a country's sustained development.

"The government needs to invest in the right kind of education and professional qualifications, which the private sector will require in the coming years," he added.

FOI urged the government to set up the long-delayed College for Applied Arts, Science and Technology which is needed to provide the necessary skills-base.

The FOI position paper states that the active participation and involvement of the social partners is essential for the economy to move forward.

This can only be done if the government seriously and effectively uses the structure of the Malta Council for Economic Development (MCED).

Mr Zammit Tabona stressed the urgent need to find the reasons why Malta is not attracting new foreign direct investment in manufacturing and high value added service industry which are essential for Malta to generate wealth and prosperity.

The government should come up with innovative incentive structures and packages for foreign direct investment, which has been lacking in these last 10 years, he added.