Investors' perception of Malta improves - lack of human resources felt across all sectors

An Ernst and Young Competitiveness Survey has found that investors' perception of Malta as an investment destination has improved.

42 percent of respondents to the survey said their perception of Malta had improved, while 15 percent said it had deteriorated. Just over half were also confident that things would continue to improve. Just under three-fourths said they would consider expanding their Malta operation.

As in previous surveys, it was found that the fact that English is widely spoken was a major draw for Malta. Next came productivity and euro adoption followed by the quality of life, the political climate and the corporate tax rate.

Investors welcomed improvements in telecommunications and air transport links but lamented labour and shipping costs, where they viewed the situation as having deteriorated.

Also as in past surveys, the respondents called for reduced bureaucracy and better fiscal incentives and skills training.

They said the most important investment criteria were availability of human resources, fiscal incentives and support from the government, the corporate tax rate, the legislative environment, skills and the euro as the national currency.

Three quarters of those surveys said the international financial and economic crises had affected them, with half reporting a drop in orders. They called for the local reduction of utility rates, tax and fiscal incentives.

The report says the gaps in the availability of human resources skills were felt across all sectors and at all levels - from technicians to highly skilled professionals.