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Companies want ‘assurances’
before coming to Malta
by David Kelleher
Stability and assurances that no major changes will be effected
over-night that could have an impact on business, are two main
concerns facing companies interested in coming to Malta.
While membership of the European Union is important, but not
necessarily a must, the fact that legislation and policies could
change within a relatively short time-frame could discourage
already interested companies, according to Stefan Svanstrom,
editor for foreign affairs of the Swedish business newspaper
FinansTidningen.
Speaking to The Malta Business Weekly, Mr Svanstrom said the
prime factor in deciding whether to come to Malta or any other
country is political and economic stability.
“Companies want assurances that they are operating on the
same level as other countries in mainland Europe. While EU membership
is not a must, a ‘No’ to membership could be seen
as a bad sign,” Mr Svanstrom, who was in Malta for a two-day
visit to write about opportunities in Malta for Swedish companies,
said.
That said, Malta is still very attractive to
foreign companies and the island has a number of qualities that
are not available in other countries, he added.
“There are great opportunities for both Maltese and Swedish
companies to do business here and coming to Malta could be beneficial
to Swedes. You have a competent labour force, impressive infrastructure
and very low costs compared to Sweden. For example, although
wages are lower in Malta, the running costs are much, much higher
in Sweden,” Mr Svanstrom said.
The main companies that would be interested in Malta are mainly
Information and Communication Technology (ICTs) companies, rather
than traditional and established companies such as Volvo.
“It is possible to grow. From what I have seen over the
past two days, the environment doesn’t really pose any
limitations, setting up costs are minimal and the labour force
is available,” Mr Svanstrom said.
“The Malta Development Corporation have been working a
lot in Sweden to attract companies there to move or open in
Malta. As Malta develops economically, Swedish interests will
grow even further.”
One of the main problems, however, is the lack of knowledge
about Malta, especially among Swedish businesses. Although many
Swedes know Malta and its attraction as a tourist destination,
very few know about the facilities being offered to businesses.
To this end, the MDC has targeted the Scandinavian markets and
revamped its marketing strategies. Several events are being
organised to create greater awareness among businesses in Malta
and Sweden.
“Malta could also become a hub for Swedish businesses.
The north African markets are expanding and Malta’s positioning
is excellent. On the other hand, Swedish companies would still
be able to export to European countries. In fact, this could
prove to be a much cheaper exercise,” Mr Svanstrom said.
The new Business Promotion Act is another step towards encouraging
foreign companies to come to Malta, he added.
For more details about investing in Malta and information on
foreign companies interested in Malta, visit Malta Development
Corporation’s website www.investinmalta.com.
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