The sea is a part of us Maltese almost as much as land is. Its presence is inbuilt in our way of life, in our national psyche. And, yet, in recent years, we have tended to take the sea for granted, ignored it, seen it as a barrier to the outside world. Air travel was the novelty of the last century and helped to alienate us from the sea. Perception changed from that of a "fortress rock" to an "unsinkable aircraft carrier".
For years, local economic policymakers lamented the lack of resources. The business potential and wealth that the sea could offer us was often overlooked. Of course, the sea all along continues to contribute significantly to our economic well-being. But the glamour and appeal of maritime activities seems to have been fading away. Ship registration, the Freeport, the Valletta cruise liner terminal and the setting up of the International Maritime Law Institute were all valid, albeit disconnected, developments. Now it is time to give a new impetus to the maritime sector; and we need to do so in a planned, holistic manner.
The government keeps talking about centres of excellence. Maritime probably offers the best chances and should be given priority in the national economic agenda. Not because of nostalgia but Malta has what it takes. We do not need to invent or import anything, we have the right location, history, credentials and resources. What needs to change now is our mindset; we should be more pro-active and adopt a coordinated approach. Our government should act as a catalyst, foster the re-packaging of our assets and resources so as to enhance their appeal to the global market. Further developments in this sector should be promoted and incentivised so as to help generate higher value through specialisation and increased synergy through collaboration and networking.
Being competitive should not be about Maltese workers having to work for lower real incomes. That is a short-sighted attitude, a hallmark of the failure of economic public policies. Malta needs to change the nature of its game; doing more of the same is not enough. The government has also to realise that competitiveness is not just about sound macro-economic policies but depends on what is taking place in our enterprises.
In the maritime sector, Norway shows us what needs to be done. There are 90,000 Norwegians working in this sector and their wage level is 90 per cent higher than the average industry wage level. Maritime industries are second to petroleum as the country's largest exporters. Norway's maritime industries include many activities which are found also in Malta: shipyards, insurance, finance, education, ship management, logistics and so on. Yet, these industries in Norway operate as a cluster thereby creating a whole which is much stronger and more competitive than any of the individual players involved.
The importance of clusters to competitiveness has been extensively documented. Clusters help build local knowledge, stimulate productivity, foster competition, create critical mass and generate reputation. They bring together all the stakeholders, university and vocational colleges, government agencies, manufacturers, traders and service enterprises including financial institutions. Clusters serve as a magnet for foreign direct investors offering such benefits as specialised suppliers and trained employees which far outweigh the higher labour costs enterprises may have to incur.
We need an agency that serves as an enabler, a facilitator that ensures that Malta is the most attractive place in the Mediterranean to develop, run and own a maritime business. Such as running a branch of the World Maritime University, constructing and servicing super yachts, manufacturing navigational equipment or ship insurance. Malta needs to become internationally recognised as a maritime hub, hosting quality operations.
It is important that the sector sends out to the rest of the world messages that re-enforce its market positioning. Creating a reputation is critical and needs to be safeguarded at all costs. For example, conditions governing local ship registration need to be tightened and closely monitored so as to minimise the risk of environmental disasters, such as was the case with Erika, which tarnished our reputation.
Naturally, the sea will also remain closely linked to tourism, another pillar of our economy, as well as the fish industries. This warrants policy coordination and convergence across these sectors and highlights the importance of having a national strategic economic plan.
Maritime Malta, unlike Finance Malta, should be much more than a promotional agency. The scope of its activities should be much broader than those of the Malta Maritime Authority, which would retain its primarily regulatory role. In Norway, the Maritime Forum was established in 1990, with the scope of not only bringing all the stakeholders together but also to ensure that the country offers an operating environment and has the right long-term supportive policies that will ensure the profitability and sustainability of the maritime industry.
Our country can still thrive and prosper. We should not fear to go back to our roots, our vocation. It is important to have visions but they need to be grounded in existing realities and not just wishful thinking and white elephants.
fms18@onvol.net