Business leaders pledge internationalisation support

Any business seeking its fortune abroad may tap into a variety of resources and support services available specifically for internationalisation projects.

Organised by the Malta Chamber of Commerce, Enterprise and Industry at the Exchange Buildings in Valletta last Friday, the conference themed Gearing Up For Internationalisation showcased all efforts being made to support firms seeking to venture overseas at governmental, diplomatic, organisational and commercial level. And, the event heard, much more is planned.

All speakers – from Finance Minister Tonio Fenech, Chamber president Helga Ellul, Internationalisation Committee chairman Peter Grima to Malta Enterprise chairman Alan Camilleri, the Foreign Office’s Permanent Secretary Cecilia Attard Pirotta, and HSBC Bank Malta’s head of commercial banking Richard Cottell – agreed that Malta Inc. had to broaden its horizons to achieve growth and prosper.

“Just ask,” Mr Cottell replied when asked by a participant about information from the bank on resources in other markets. The message from all speakers was not dissimilar.

Chamber president Helga Ellul pointed out that by internationalising early and well, Maltese firms will not only be more competitive abroad but be in a stronger position to rise above the competition locally. She stressed that internationalisation did not centre on export of goods but the services sector was witnessing constant growth and it was important for it to see potential in other markets in the same way as the tourism, ICT and education sectors had done.

Peter Grima is a champion of internationalisation and believes there is no reason why firms of a dozen staff and over should not look abroad.

With the help of other committee members – Michael Farrugia and Tonio Casapinta – and other Chamber officials, Mr Grima is steering efforts to give the Maltese business community a resourceful and efficient reference point.

The committee’s strategy focuses on complementing existing national resources and collaborating further with Malta Enterprise and the Foreign Office. It also had to do much more with less. It aims to offer guidance to low and hi-tech businesses in services or manufacturing both where inwards or outwards foreign direct investment was concerned.

Mr Grima pointed out that this function was committed to assist firms participate in events and delegations, organising information seminars on doing business with specific markets, establishing joint trade councils, enlisting NGOs’ co-operation, developing and proposing identified projects, and helping individuals with limited resources.

In the meantime, the committee was working on setting out a template for franchising projects, and organising resources for educational, consortia and web portal market research.

Alan Camilleri used the forum to announce the re-engineering of Malta Enterprise, aimed to transform it into an economic development agency.

Three major “thrusts” were being undertaken to achieve what Mr Camilleri termed greater agility in the interaction between government and enterprise.

Malta Enterprise is to absorb the Infrastructure Ministry’s Government Services Unit, which is currently finalising the drawing up of service level agreements with other government entities governing time frames of service delivery.

A Business Service Bureau is to be established to provide a holistic service to firms. The establishment process will also include the integration of back office services between Malta Enterprise and the service level agreement-designated entities.

A new e-business portal will allow for better interaction with Malta Enterprise and these entities.

Malta Enterprise and Malta Industrial Parks are to be integrated with a view to achieve better efficiency.

Meanwhile, Malta Enterprise is to re-establish its presence in six markets (London, Paris, Milan, Delhi and New York) and is examining Munich. Libya will be the responsibility of a commercial officer. The possibility of moving from Dubai to Abu Dhabi is also being considered as Malta may shift its major diplomatic presence from Saudi Arabia to Abu Dhabi. Malta Enterprise is also in consultation with the Foreign Office over representation in South Africa and Brazil. In-house units will be dedicated to serving other regions worldwide. Mr Camilleri is also seeking international investors to partner local firms with a view to establishing a 100,000-square metre logistics centre, a badly needed facility expected to require a capital investment of between €70 to €100 million.

Cecilia Attard Pirotta pointed out that globalisation and membership of the EU had necessitated a review of Malta’s diplomatic presence abroad. Conscious of boundaries between foreign and domestic policies becoming increasingly blurred, the Foreign Office has also sought to capitalise on Malta’s network abroad for the benefit of business.

This is also one of the reasons why a business-oriented approach had been adopted towards appointments to top diplomatic posts.

“Our embassies and consular representations abroad regularly monitor commercial and economic developments in their respective countries and pass on prospective business opportunities to the ministry,” Ms Attard Pirotta explained.

HSBC’s Richard Cottell listed several issues to be considered when firms were looking at going international: understanding the market and the culture, identifying the right time, sizing up the competition and considering the mitigation of risks.

He emphasised that it was crucial that firms examined macro and micro risks like the authorities’ attitude in the overseas market, import and export controls, the legal system and employment laws, manpower, communications and infrastructure. He stressed that firms would do well to partner only market leaders, learn about the culture – even minor customs like gifts were very important in some business environments abroad – identifying the right suppliers and buyers, what safeguards existed for payments and the effects of foreign exchange.