Budget 2013 to support small business, FS sector – minister

With economic growth and job creation the priorities in Budget 2013, the government will continue to incentivise the expansion of enterprise and small business, the driver of both aims, while it pursues strategies to attract foreign investment, Finance Minister Tonio Fenech told The Times Business yesterday.

The pre-Budget document launched last Saturday underlines the importance of the business community’s ability to respond dynamically and robustly to market changes and sudden shocks, and ensuring it is capable of adopting innovative ideas to ensure competitive advantage.

Asked to outline the spirit of the government’s vision for small business for next year, when the effects of the slowdown are widely expected to impact Malta, Mr Fenech replied: “The world is not yet out of the crisis, and our trade and tourism partners are still facing troubles at home. This is why this document continues to lay emphasis on the need to generate economic growth and sustainable job opportunities.

“We want to achieve those aims by incentivising enterprise and small businesses to expand their operations, and to continue attracting foreign investment to Malta. The government acknowledges the critical role played by small business, as it has throughout this legislature.”

The recently launched micro-guarantee scheme, a Budget 2012 pledge, joins a collection of incentives which so far have helped more than 2,000 businesses access over €160 million and create hundreds of new jobs, he added.

Mr Fenech said the authorities’ efforts will be focused on sustaining and improving current activities to reach four key objectives: attract and foster investment, create sustainable employment, ease access to finance, and facilitate business establishment and growth. He pledged to see efforts to cut red tape stepped up. Authorities will build on the success of Business First, the Malta Enterprise proposition bringing more than 50 services under one roof, and the drive to simplify commercial licence procedures and reduce fees.

Meanwhile, Budget 2013 will aim to ensure that the factors that have strongly contributed to the growth of the burgeoning financial services sector and the competitive positioning of the jurisdiction will be bolstered, Mr Fenech said.

Malta, he added, had managed to attract considerable business despite the compelling choice of long-established financial services domiciled in the EU. Malta’s attractiveness had been achieved thanks to a skilled workforce and its strong work ethic, competitive operational costs, the 55-plus double taxation treaties and a stable political and economic climate, Mr Fenech emphasised.

The setting up of a financial services industry think tank announced at the Finance Malta annual conference before the summer is “well on its way to materialise” and there are plans to ensure that the educational sector provides the talent stream required by the industry.

The financial services sector contributes over 12 per cent of GDP and employs around 10,000 people.