Inefficient government bureaucracy 'biggest obstacle' to business

Malta has been ranked 56 among 122 countries analysed for their performance in a Global Competitiveness Index published by the World Economic Forum, down five places from 51 last year.

Economist Adrian Said said the methodology has changed since last year and the number of countries in the forum is now bigger.

The World Economic Forum is an independent international organisation committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.

Speaking at a business breakfast organised by The Malta Business Weekly at the Le Meridien Phoenicia to discuss the findings, Mr Said said most of the information in the report was taken from published statistical data while 30 per cent was based on interviews with 100 leading businessmen. The interviews were conducted in April.

Economist and analyst John C. Grech said the aim of the index was to provide a platform for business leaders and policy makers to identify obstacles to improved competitiveness and the results were not meant to be used to point accusing fingers at anyone but should shed light on which sectors of the economy had to be beefed up or encouraged further.

"The fact that Malta ranks so well in sectors such as ICT, and looking where we started from, should act as a spur to encourage us and show that we are able to make it in other sectors as well," Dr Grech said.

The United States, Denmark and Sweden were the top performers in the index. Malta lags behind mostly in innovation.

Businessmen interviewed perceived inefficient government bureaucracy as the most problematic factor for conducting business. Some questioned whether this was a real obstacle or a perceived one, but Dr Grech said if it was only a perceived obstacle, one still had to work on it as perceptions were how one felt, even if they were untrue.

Tax rates and inadequate infrastructure were also factors identified by businessmen as hindering business.

Competitiveness Minister Censu Galea said the government was striving to establish a period of 10 days as the maximum that can be taken to determine an application for a business licence and the target was to eventually reduce this period to seven days.