Malta's stability and social environment are major attractions for investment, 95 per cent of the respondents in a survey on Malta's competitiveness carried out by Ernst & Young Malta said.

Ninety per cent felt Malta enjoys a clear and stable political, legislative and administrative environment.

The survey - Discovering Malta - was produced with the help of Ernst & Young in Paris.

Eighty per cent of the respondents considered the country's labour costs favourable and labour laws flexible, particularly with regard to hiring, termination and duration of work. Another attraction is the quality of life and the state of Malta's telecommunications structure, while 75 per cent considered the island's entry into the EU a plus.

"Our survey suggests Malta has attractions of its own that may or may not be much different from those in other countries.

"What needs to happen is for these attractions to become consistently better known by potential investors," Mario Galea, Ernst & Young Malta's managing partner said.

These results were announced during an annual World Investment Conference in La Baule, France earlier this month.

Parliamentary Secretary for Finance Tonio Fenech addressed the conference and described Malta's attractions, particularly to small and medium companies, as hugely accessible, adding that the country offers a great opportunity for companies seeking to invest in the Mediterranean.

Also making the case for Malta was a strong Maltese team which included Philip Micallef, Malta Enterprise CEO and Ronald Attard, from Ernst & Young in Malta.

James Turley, chairman and CEO of Ernst & Young told the 600 participants that Europe is still the most attractive destination in the world and this was due to its flexibility and the diversity of its markets.

"Knowledge is a key factor drawing investors to Europe," Mr Turley told participants.

"In the last five years, economies in Central and Eastern Europe were transformed from low cost workshops into markets with huge potential," he added.

"We are seeing a similar pattern emerge in China, Russia, India and Brazil - countries which in the next five years will become increasingly innovative and will present a real challenge to the more developed markets."