The Manufacturing and Other Industries Economic Group of the Malta Chamber of Commerce is concerned that this year’s Pre-Budget document was devoid of any significant recommendations in relation to industry, according to the group’s chairman Matthias Fauser.

In an article entitled “The future of manufacturing in Malta” which was sent to the Times Business, Mr Fauser says that industry requires serious and effective plans to curb rising trend in operating costs, improvements in the general education levels of the manufacturing workforce, the addressing of skill mismatches especially vis-à-vis more specialised and technical workers, and an industrial policy which complements the development of existing enterprises.

“A clear long-term industrial strategy for Malta needs to be drafted in consultation with the Malta Chamber and other stakeholders, with a focus on the long term sustainability and competitiveness of this sector. Such a strategy should place innovation and R&D, coupled with internationalisation efforts, human resources, the efficient use of resources and the environment at centre stage. In essence, productivity and cost reduction have to be the driving force, with the aim to at least, safeguard current investments,” Mr Fauser says. He adds that industry needs sound public policies and good regulation in order to minimise economic shocks and induced costs to enterprises.

“This requires proper management and development of the public infrastructure that is needed for the sector to operate in. The MEG firmly believes that this infrastructure must not be seen as a commercial venture only, but rather as an economic development instrument. For instance, the leasing of government factory premises must reflect Malta’s insular realities. The authorities must be more sensitive to the consequences of increasing rent rates and other associated charges on the competitiveness of the manufacturing sector,” he says.

Mr Fauser says that an economy without a strong manufacturing presence is not a complete economy.

“The UK and US economies can be seen as proof of this, with their respective governments turning to manufacturing once again. On the flipside is the German economy, whose manufacturing sector has gone from strength to strength.”