After 450 years of existence and with no assets to its name, the University of Malta yesterday took a historic step in establishing a trust fund to be used primarily for research purposes.

The University of Malta Research, Innovation and Development Trust will start with an initial capital of €500,000 invested by the government.

The instruments creating the fund were signed by Prime Minister Lawrence Gonzi and University Rector Juanito Camilleri during a ceremony at the Auberge de Castille, yesterday.

Prof. Camilleri explained that the University had no assets or reserves of its own and it only managed to generate 15 per cent of its income, mostly from fees paid by foreign students.

The remaining funds to finance the University’s operations came from government contributions.

The trust fund, he said, would help the University accumulate reserves to enable it to invest in research and sustain expenditure if circumstances led to a situation where government cut its funding.

Individuals and companies are being asked to donate money to the trust fund either by earmarking their donations for specific projects or allowing the board of trustees to manage the funds. Donations may also include property.

Donations to the fund will be tax deductible.

Dr Gonzi said there was an urgent need for the country to give more importance to research and to encourage graduates to remain in Malta, contributing to the economy and the community.

The purpose of the university was not only to prepare graduates but also to carry out research that benefited society, Dr Gonzi said.

In a Eurobarometer survey published in February, Malta emerged as performing below EU average in innovation, with its main weaknesses being a shortage of qualified human resources and low levels of public and private investment in research and development.