Education-industry link must be revived

The Malta Chamber of Commerce and Enterprise believes a stipend should only be given to university students who follow courses which produce human resources needed in the labour market. Andrew W. J. Mamo makes a post-budget analysis of tertiary education.

The Malta Chamber of Commerce and Enterprise is an active private-sector organisation which, among other functions, consults actively and regularly with the government over several issues related to business and the country's economic well-being.

To this end, it was an active contributor in the discussions on the social pact taking place within the Malta Council for Economic and Social Development (MCESD), where several issues of national importance were discussed, in particular those related to the enhancement of national competitiveness and the consolidation of public finances.

Throughout these recent discussions at MCESD, the Chamber made strong representations on the importance of education and investment in Malta's future workforce.

In the current economic situation and in view of the prospects in the short-medium term, the Chamber stressed the need for the country to ensure sustained economic prosperity through national competitiveness. In turn, the Chamber believes that a coherent and holistic plan for education policy is key to the enhancement of national competitiveness.

The Chamber believes that education is a key factor impinging not merely on the quality of life of present and future Maltese generations but also on the economic well-being of the country. The Islands' main asset is its people and it must therefore be developed and shaped to enhance the country's national competitiveness. This objective is achieved through a sound education programme commencing from early childhood and lasting throughout a persons' lifetime through vocational training. In the Chamber's view, investment in the local work-force was therefore among the most significant to be addressed in the discussions on the Social Pact and the 2005 budget. The technological capability profile of the local workforce must be continuously trained to supplement the investment in Malta's industrial technology base.

While the Chamber analysed the Chalmers' report through its internal committees, it noted that Malta was found to lag behind other European countries in terms of investment in tertiary education and a disproportionate amount of the investment was channelled into student support. It also noted that the report highlighted that all post-secondary and tertiary institutions are under severe financial pressure.

Throughout its pre-budget representations, the Chamber made specific recommendations on higher education. Primarily, it was strongly recommended that the output of Malta's tertiary education system must be in tune with the needs of commerce and industry. To this end it recommended that the link between industry and the educational sector be not only revived but extended to other institutions besides University. The Chamber also called for an overhaul in career-counselling.

The Chamber stressed the need to identify the key priority areas in terms of what the education set-up needed to provide to the labour market. Consequently, the Chamber recommended that the current system of University stipends be re-evaluated. They should be used to entice students to follow those courses where qualified human resources are mostly required. In view of the financial pressures, students following non-priority courses should not be given a stipend. On the other hand, stipends and all possible help is to be afforded to students if their studies are directly related to the enhancement of Malta's competitiveness. Similar considerations apply to students following MCAST courses. The Chamber is proud to contribute actively through its representative sitting on the Board of Governors as it believes wholeheartedly in the vital role of the College in bridging the gap for competent technical people. Nevertheless, the Chamber appealed to the government to aid this venture further. Unless such support is forthcoming, MCAST would be unable to serve its purpose in a more comprehensive manner as it ventures into breaking new territory by taking over existing units that had been left to deteriorate over the years. The Chamber supports MCAST's commendable aim of effecting a radical turnaround in these units in order to service demand for such skills by both the public and private sectors.

The current economic circumstances have increased the need for specialised marketing people in private industry in order to enable the exploitation of new markets overseas, or niches within such markets. A properly trained and constantly upgraded workforce is also required in the services industry, to which Malta is becoming increasingly inclined. Service industries are by nature customer oriented, hence they require a properly skilled workforce to deal with an increasingly demanding customer in the most professional manner. Professional standards and competences must be expressed in more practical workplace terms than academic qualifications. The National Vocational Qualification (NVQ) system, administered with integrity provides such a system, defining development potential for all existing grades of staff. The benefits of NVQs are needed now, at a time when industrial/administrative restructuring processes are critical, and when Malta's global performance is under scrutiny.

In its budget reactions, the Chamber commented on the delay in a decision on University stipends. In the light of the country's lack of resources and in the current public finances predicament, the Chamber again urged the government to re-evaluate the current system and utilise it in a more intelligent manner to entice students to follow those courses where qualified human resources are mostly required.

On the other hand, the Chamber commented positively on the provisions made in the 2005 budget speech for tax benefits equivalent to up to half of the employer's share of social security contributions for employees having a Masters or Ph.D. in specified subjects. It also included, under R&D expenditure, all salaries and scholarships paid to employees reading for a Masters or Ph.D. degree in specific subjects. While these were perceived as commendable initiatives, the Chamber commented that there was more to R&D than assisting academics in their post-graduate studies. There is equally a need for tangible links between entrepreneurship at the SME level of innovation and research. From a European perspective, R&D coupled with entrepreneurial skills is seen as the main driver for growth in the EU. The same should apply to Malta within the framework of a clear R&D policy which is key in reaching the targets set for GDP growth.

Mr Mamo is the chamber's honorary treasurer and the chairman of its Business Education Committee.