An Ernst and Young survey of Malta's investment attractiveness has shown that 79 per cent of current foreign investors in Malta still find Malta attractive for investment, down from 91 per cent in a similar survey three years ago.
The shift resulted primarily in a movement in responses from a positive outlook to 'don't know' rather than a movement into the 'not attractive' bracket, EY said. The level of uncertainty grew from 3% to 9% between 2012 and 2013 and from 9% to 15% between 2013 and 2014,
"This shows that there is certainly no room for complacency if the country wants to ensure that the shift from positive to uncertain does not go from uncertain to negative" the report warns.
Fifty-two percent of respondents believed Malta would remain attractive in three years' time, down from 62 per cent last year. The manufacturing sector seemed to be the least optimistic.
There is certainly no room for complacency if the country wants to ensure that the shift from positive to uncertain does not go from uncertain to negative
Respondents said they saw Malta's stability of social climate, corporate taxation and the local political, legal and regulatory environment as the country's most attractive features.
They said that measures needed to further enhance Malta'c competitiveness are education and skills, support for SMEs, improved FDI incentives and supporting high tech industries and innovation.
The banks and the insurance sector were unanimous n this positive responses to Malta's investment attractiveness.
In the manufacturing sector, only 8% said that Malta was definitely attractive and 50% said it was attractive, down from 82% last year. Nearly one in four of manufacturing respondents chose the 'do not know' option and a fourth said Malta was not attractive.
Fifty-six per cent of respondents indicated having some form of expansion plans of which 36 per cent said this would be back office work, followed by research and development at 16 per cent and sale and marketing offices.
More than half of respondents said the iGaming sector would be the business sector driving Malta's growth in the next five years, followed by fund administration.
Only 3% of those interviewed did not see themselves still in Malta in 10 years' time. Nearly 60% plan on staying and 39% were uncertain about their long-term plans.
Asked about Malta's image abroad, most said that the main perception was of a holiday destination but it was increasingly seen as an investment destination. Only 40 per cent felt that Malta's marketing effort as an investment destination was effective. A similar number said Malta had the right brand image among foreign investors.
Respondents in manufacturing, ICT, telecommunications and iGaming said it was getting harder to find the skilled workers they needed.
Survey respondents also said that Malta needed to reduce bureaucracy and improve education and training in new technology. More than half were willing to provide training.
The respondents also called for an improved transport infrastructure.
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