Indications show Malta should not face any adverse effects on British investment, service pensions and VAT on food and medicines because of Brexit, the deputy prime minister said.

However, one still needed to evaluate the effects on exports, tourism and Maltese workers and students in the UK.

“This depends much on the negotiations between the EU and the UK,” Louis Grech said.

The minister reaffirmed that the government was already working a plan to mitigate the negative effects, even if the conditions leading to the UK's exit from the EU were still not known. 

Winding up the debate on his ministerial votes in parliament, Mr Grech said local banks were not expected to be exposed to risks or liquidity problems.

He said he had set up a Brexit Unit within his office and with other ministries to examine the strengths, weaknesses, opportunities and threats of the British decision to pull out of the EU.

On the positive side, there could be opportunities in financial asset management, the gaming industry and financial services.

However, Brexit might have an impact on the multi-financial framework, including European funds, he said.