Budget to promote competitiveness

Finance Minister Tonio Fenech has pledged the government’s continued support to sustain Malta’s overall competitiveness, saying Budget 2010 will maintain its backing of SME internationalisation.

Addressing participants at the conference themed Gearing Up For Internationalisation organised by the Malta Chamber of Commerce, Enterprise and Industry last Friday, Mr Fenech said government support was vital if more SMEs were to tap new markets overseas.

“Many SMEs would probably not consider internationalisation were it not for this support,” Mr Fenech said.

The number of businesses looking to venture abroad was still low and there was an urgent need for a holistic approach to internationalisation processes.

Five years after Malta’s accession to the European Union, many SMEs failed to realise the potential of the single European market primarily because of lack of information, skills and financial resources. The Budget, Mr Fenech said, will encompass policies to ensure that business people and firms had access to appropriate support at various stages of their development.

The minister said the authorities were planning a budget package that continued to focus on education and the improvement of human resources standards, and the development of new academic and vocational skills to keep up with the challenges faced by industry and enterprise in the global marketplace.

“The fundamental aims of the Budget 2010 – jobs, growth and social cohesion – go hand in hand with competitiveness and internationalisation,” Mr Fenech emphasised. “They are sides of the same coin.”

Mr Fenech stressed that Maltese industry had to be innovative, competitive and show leadership to thrive sustainably in the global economy. Rather than undermine the case for globalisation and internationalisation, the current crisis underlined it, and many Maltese businesses were mindful of this.

While the government was in duty bound to provide support services, the main responsibility for venturing overseas lay with businesses, primarily with the way they were structured and operated.

The minister called on Maltese companies to step up their efforts to seek opportunities in major emerging markets like BRIC and Turkey. In its extensive calendar of 2010 events geared at internationalisation, Malta Enterprise has planned business delegations to all these destinations to help local firms break into new markets. Other trade missions were to serve to consolidate links with Malta’s business partners.

“Budget 2010 comes at an important juncture of our economic life,” Mr Fenech pointed out.

“The main thrust in the coming years will be on strengthening our business and labour structure by more investment in education, research, development and innovation. Our strategies on skills, science, technology and innovation will provide the framework in which our SMEs can successfully thrive and internationalise.”