28 December 2000 - 3January 2001

Ushering in the New Year

As the first year of the new millennium comes to an end, it is time to look to the future and the challenges facing our small country in 2001. The year 2000 was important for this small island in many ways. On the political front, we have moved a step closer to becoming members of the European Union. Economically, the measures introduced in the budget for this year have paid off albeit creating greater burdens on the working and middle class. In other areas we have seen the liberalisation of the telecommunications sector and a new mobile telephony operator, the introduction of broadband technologies, the final plans for the privatisation of a number of public companies, a marked increase in business on the Malta Stock Exchange, numerous bond and share issues from the private sector, and the opening of Baystreet and the Embassy complex in Valletta.
On the downside, the government faced a major challenge from the General Workers’ Union over the budget measures and the rising cost of living, tempers once again flared over Kalaxlokk and surging oil prices worldwide also left their impact on the country’s finances.
Despite the country’s weaknesses, all our achievements have been reached thanks to the hard work of the Maltese and their enduring efforts to reap success.
We have a lot to build upon. Malta has a strong financial services sector, a modern infrastructure, an educated workforce, and a very active entrepreneurial class. These qualities have enabled Malta to arrive at where it is today. While we have made great strides forward, both politically and economically, we must not lose sight of our weaknesses and the need to work even harder to achieve what is, ultimately, prosperity for everyone.
Of course, we have many challenges ahead in 2001. There are still problems that have to be tackled head on. What is required, however, is commitment, determination and a long-term vision. The government has made it clear that its main priority is membership of the European Union. Malta is among the front-runners to join in the next enlargement, yet the government must be careful not to create more problems at home as it endeavours to meet the deadlines and requirements of the Union.
We sincerely hope that all discussions on this issue will be carried out in a fair and transparent manner. There are both benefits and disadvantages in EU membership yet joining the EU is, in our opinion, the way forward for Malta.
Another great challenge facing the country, which is certainly conn-ected to joining the European Union, is to restructure and reform the economy. Malta must be well prepared to enter the global economy. The government has already made it clear that it intends to privatise a number of State-owned enterprises and this is to be welcomed. Within the next few weeks we should see the privatisation of Malta International Airport.
Further liberalisation is also expected as the government continues
to remove protective levies. Bringing the deficit down even further is another challenge, as is tax collection.
The pensions time-bomb has not been tackled properly and the government must take stock of the situation and do something. The longer it takes to find a lasting solution, the more problematic the issue will become in the next few years.
One also hopes that the government will have the determination to end certain restrictive trade practices which create such high costs for businesses, such as the port handling fees scheme and the system of burdnara (stevedores) at our ports. Our roads, as well as our public transport systems, need to be given another facelift.
The setting up of the Malta Tourism Authority augurs well for the future of tourism in Malta and the Communications Authority – which starts working on 1 January – will hopefully be able to provide stability in the local telecommunications sector.
We have every reason to look to the future with confidence, as long as we have the courage of our convictions. We must continue to think long term and we must be prepared to undergo some pain for long-term gain. In the end, it will be worth it and once we have done whatever needs to be done, and we have found our rightful place in the European family of nations, we will never look back. This small island of ours has the potential to succeed among greater countries. We will only succeed if everyone does his bit. This is what The Malta Business Weekly wishes for Malta and its future.