We have just been through four weeks of football games. Those that excelled during this competition were the teams which worked hardest both on the pitch and outside. Playing well, employing good tactics, vision and foresight in the national associations' policies, a good infrastructure and investment in youth academies, resilience and stamina where endurance is required and, why not, an element of luck were some of the key ingredients of the best teams we saw. The World Cup showed that the power of the team is stronger than that of the single or individual talent.
This is not just about the World Cup or any sport, for the matter. To keep winning the investment attraction game we need to remain competitive and skilled. Above all, we need to look at it as a team.
Stakeholders' confidence is a crucial factor in the retention and growth of foreign direct investment as it sends positive signals to potential investors. A recent survey showed that 75 per cent of participants were considering developing or expanding their activities. A similar proportion of companies did expand or develop their presence in Malta over the past three years. This vote of confidence is very important in terms of our continuous efforts to attract FDI. No one can provide a better endorsement and sense of confidence than past, present and potential future investors.
A close look at the world situation shows that global FDI slumped by 39 per cent in 2009 with a 36 per cent slide in FDI inflows into Europe as economic uncertainty caused hesitation among investors. In Europe, the number of FDI projects fell 11 per cent while FDI job creation maintained a three-year downtrend, falling another 16 per cent.
I think it is important to understand the scenario we're playing this game in and, even more importantly, understand how to improve our offering in this sense.
To be able to win and be competitive in this game, it is important that societies set long-term goals and anticipate future needs. The Lisbon Strategy, the EU 2020 Strategy and Vision 2015 all aim to stimulate growth and bring about opportunities for more and better jobs through an economy that is more responsive to economic and social needs.
We managed to thrive because of the abilities of our human resource. We need to build further our capacity to meet the increasing demands. We shouldn't shy away from the needs of retraining and the continuous evolution of our skills base. We need to look forward, aware of what we're good at. With a national employment rate of 54.9 per cent, compared to 64.6 per cent for the EU 27, it is important that we have the necessary policy measures to address those factors hindering people from entering or remaining in the workforce.
The increase in the employment rate is required to ensure economic sustainability and retain our growth.
Through Vision 2015, we're set to build on the work carried so far in the various economic sectors and chart the path for future economic development. To retain and improve our competitiveness we need to have an economy built on our key strengths, capabilities, competencies and excellence. We want to have our policies and action plans respond in a flexible way to the priorities and the identified needs of the labour market.
More investment in skills and the human capital is important at a time when we're coming out of the economic downturn. We have seen countries resort to reforms which safeguard the individual's employability.
Malta has undergone this exercise over the past decade. The reality is that this exercise is a continuous one because flexibility and readiness to change is crucial for our economic development. In the past 10 years our economy has shifted itself to new sectors.
I emphasise the need of education, skills and retraining because, ultimately, even if we had to provide the most lucrative fiscal incentives and benefits, unless investors find the required HR and skills-set we won't be able to retain our attractiveness.
Incentives to assist the growth of our enterprises, the investment required in education and to maintain our competitiveness are coming from public finances. We need to keep in mind that we are in the enviable position that, while others are announcing major austerity measures, we are here planning and mapping our future and discussing how to invest further and assist those who need assistance.
The government is committed towards creating the right environment for more investment and growth. We have to look at things from a holistic perspective. We need to work together and prepare ourselves for the needs of our economy, retaining your and our confidence that, yes, we can win the game.
The author is Minister of Finance, the Economy and Investment