‘History taught us that Malta has the strength, talent and will to turn challenges into opportunities’

On Friday, Shadow Minister Jerome Caruana Cilia recalled how, despite the waves of economic hardships throughout the years, Malta turned challenges into opportunities, a quality which he deems will be needed to safeguard important industries in the economy.

During his speech at the FinanceMalta Conference ‘Empowering Financial Services’, Mr Caruana Cilia noted that when the British left the islands in the 1970s, many feared the worst.

“We quickly adapted, transforming our economic base away from one dependent on military activities towards sectors such as manufacturing, tourism and ship repair,” he said.

He continued by pointing out other economic hardships from the 1980s, 1990s, and the strategic decisions taken to attract foreign direct investment while also mentioning the 2008 crisis.

“Malta once again demonstrated that it possessed the required skills, resilience, and vision to ride the waves of uncertainty,” he continued.

Mr Caruana Cilia commended the Malta Financial Services Advisory Council for taking on the responsibility of driving the industry forward in the years ahead. However, he remarked that it requires diligent political direction and leadership so that the legal framework can be designed to cultivate the ongoing efforts and address fundamental issues.

He was adamant that as a country, Malta must not be complacent and must work to protect the fundamentals on which the industry has developed and grown.

“This means, firstly, strengthening our reputation and brand identity and secondly investing in the necessary upgrades to our energy, transport, and healthcare systems,” he said while adding that these are essential to attract foreign investors.

Thirdly, and in agreement with a panel discussion held earlier, he expressed his belief in making further investment in Malta’s “most valuable asset.”

The financial services industry is becoming increasingly technology driven and to remain competitive he believes that Malta will need to invest even more in upskilling and reskilling in its people, particularly in our digital field. 

Subsequently, he emphasised that while Malta has been long known for its bi-lingual educated workforce, “this will need to remain the core of whatever we plan ahead.”

“As we look to the future, or rather the present, we must recognise that the world is changing faster than ever before. We must continue to enhance our regulatory frameworks and improve efficiency further to remain agile and responsive to global trends. The financial services sector thrives on trust and transparency and by maintaining high standards of governance and compliance we can attract the right type of investment and cement our reputation as a trusted jurisdiction,” he added. 

While present during the conference, Finance Minister Clyde Caruana made reference to the EY attractiveness report. He stated that in conjunction with a Parliamentary committee meeting and other meetings with individuals who are considering moving their investment and portfolios to Malta, there was one common factor.  

“Both the survey and these investors have focused on making Malta their base for one simple reason – social stability. A factor that perhaps we tend to discount significantly, which nevertheless is something that stands out and its likely to give us a competitive advantage in the years to come,” he added.

Both the Minister and Mr Caruana Cilia agreed that at this present moment, Europe is once again facing significant challenges, not only in terms of how it is going to deal with its eastern front but because its biggest economies are facing economic and financial hardships.
The Minister shared that Italy will soon be facing a general strike as the government is adamant about cutting down expenditure to limit its ever-growing debt by cutting significantly down on spending. The UK Chancellor has just presented a budget that increased taxation in a sizable manner and has put the tax burden at an all-time high since WWII. Germany will hold an election on 23rd February because the three-party government coalition failed to reach an agreement on a budget, with the economy suffering from the costs of high energy prices and, as a result, economic growth has evaporated. On the other hand, France, “which perhaps is in the most difficult situation of them all,” is facing a deficit that has continued to edge up and is being revised upward again, with the French Parliament being fragmented and lacking a majority to uphold the current government.

“Nonetheless, our economy has continued to outshine the rest of Europe, with a steady growth rate of 4.5 per cent, a fiscal balance that is gradually improving, and numbers showing that the deficit rate might be better than projected last year,” the Minister continued.