Editorial

The setting up of Finance Malta was welcomed across the financial services industry but many questions remain over whether its structure, funding and resources are enough to meet its given tasks.

The financial services industry grew in leaps and bounds over the past 10 years or so and it is poised to become a major pillar of the Maltese economy, alongside tourism, manufacturing industry and IT.

The sector has established itself as one of the leaders in the Mediterranean region, in some cases it is even competing with major jurisdictions.

And all this has come about with only low-key promotion, handled mostly by the Malta Financial Services Authority and the operators in Malta that form part of the major international financial networks.

However useful their work has been, the need for a proper structure to spearhead and coordinate Malta's branding and marketing efforts has been felt for quite some time. Promotional work by the MFSA has also been increasingly seen as conflicting with its role as regulator. Many would argue that Finance Malta has been too long in coming. What matters now is to get this young organisation up and running as quickly as possible.

For this is an important time for the Maltese financial services industry. Tough negotiations in European institutions have finally led to Malta's unique taxation structure being certified as compatible with EU rules, requiring only minor amendments, which have just sailed through the Maltese Parliament.

Malta, therefore, needs to go out and raise its profile as an efficient and competitive financial jurisdiction.

Yet, it has to do so in an intelligent, coordinated way. For its strengths are not just low taxation. Malta has a modern, efficient regulatory regime and a pleasant and relatively low-cost working environment. It is a jurisdiction with many double taxation avoidance agreements and a good reputation it is determined to safeguard.

Finance Malta foundation has already indicated some of its marketing ideas, including increased participation in international events, conferences and other events in Malta, international road shows and other forms of profile raising, targeting of potential clients, focused marketing-oriented websites and the publication of a Doing Business In Malta guide.

Not to mention other roles the foundation could assume. Promoting financial services in Malta itself should be one of them. Despite the sector's steep growth rate, far too many Maltese simply do not know how important financial services are becoming. That is a major reason why the industry may have a human resources problem on the horizon. Finance Malta could help promote an updating of courses relating to financial services at the University and better focus official data collation on the financial industry.

The service providers to the financial industry also need to be made aware of the impact they have on potential players in the industry. Indeed, since it already groups the various private sector segments, the government and the regulator, Finance Malta could also take over the role of the Financial Services Consultative Council. It can become the focal point for financial services in Malta, the cohesive voice of the industry and the common platform where all the players could reach out to the potential market of 400 million people in Europe, and beyond.

But it needs to be well resourced. Its governors are clearly up to the task. Now everyone should pull at the same rope, in the same direction.