In the past few days Malta has managed to witnessed a significant vote of confidence in its economy. Major institutions and investors alike expressed their confidence in the country while hailing its achievements in the past months.
Just 10 years ago the aviation industry barely employed 100 people; today, it provides more than 1,000 jobs- Tonio Fenech
A recent employment assessment by the International Labour Organisation put Malta in a restricted group of nations that managed to increase job creation even through the past crisis-ridden years.
Last week, the International Monetary Fund presented a detailed study on Malta’s economy. In its conclusions, the IMF describes Malta’s economic performance as resilient and among the strongest in the European Union, while remarking on the impressive achievements in improving the stability of our finances.
The IMF report builds on a previous important analysis which the European Commission carried out in all European member states, forming part of the new Six-Pack Procedure and known as the Alert Mechanism Report.
Only a limited pool of nations got a clean bill of financial and economic health, and Malta featured among them – this is good news for all of us. Such independent, institutional and international reports go a long way to shoring up confidence in our economy and hence will increase investors’ readiness to do business here. Most importantly, in turbulent times the report highlights our country’s stability.
This stability is the result of strategic decisions taken years back – including investment in energy generation, new roads, new industrial parks, IT and telecoms infrastructure – but also of our continuous efforts to offer the right incentives to industry and business to continue making Malta their preferred destination.
Malta has indeed remained attractive to investment and our vision for the country is producing tangible results. Some 130 projects have been approved throughout these past four years with a combined investment of €320 million and the potential of creating a further 3,400 job opportunities.
The next milestone took place on Thursday in Safi, with the official inauguration of the Aviation Park, a €17 million, 200,000-square metre development.
This park is already hosting world leaders in aviation repair and maintenance and other service providers, including SR Technics and Medavia. Even before the proverbial ribbon had been officially cut, a new significant €22m investment was announced the same morning.
Aviation Cosmetics is another internationally-established brand that has chosen Malta as its preferred destination to significantly expand its operations, creating more than 80 jobs in the process. The company will build two new hangars and will also construct a technical facility in Malta. All production and back office personnel are envisaged to be local.
The project will also enable Malta to diversify the local aviation industry with a related and complementary business, thus enhancing the concept of an aviation cluster particularly within the Safi Aviation Park, whose tenants could outsource work to provide a more holistic offering.
This achievement epitomises the transformation of our vision and ideas into practices – a transformation which takes place through investment, allocation of resources and provision of incentives.
Just 10 years ago the aviation industry barely employed 100 people; today, it provides more than 1,000 jobs and is now a remarkable reality within our manufacturing industry set-up and has broadened beyond maintenance, repair and overhaul of aircraft, engines and components.
This is the result of strategy of a Nationalist administration which is synonymous with investment and job creation.
Strangely enough, the opposition, which is quick to call a press conference on any petty issue, has been remarkably silent on these achievements. The only expression we got from Joseph Muscat’s Labour is No to more investment, No to tax benefits, No to better pensions. Basically a No to all our policies and budgetary measures.
Investors do not only study economic trends. They also look at the policies of the government, or governments-in-waiting. They need clearly-defined policies. Our policies are clear. The country has been judged positively and our results are there to be seen.
If on the other hand, Muscat’s Labour policies remain shrouded in secrecy, and every time there is an opportunity, it continues to display short-sightedness and political opportunism.
Saying No to policies which work means investors will just take their money elsewhere.
Muscat’s Labour Party is nothing but the old MLP, despite new logo, new colour schemes – our colour schemes – and change in names.
Ultimately, this fear is what creates real uncertainty in the country, and business knows it has been let down by Labour promises over and over again.
What counts for Labour is only your vote, not your future.
Tonio Fenech is Minister of Finance, Economy and Investment.