A ministry dedicated to industry or the economy should include a Cabinet member focused on research and development, says the Malta Chamber of Commerce, Enterprise and Industry.

The recommendation is made by chamber president Frank Farrugia in the Talking Point appearing on the back page today.

Read: Let’s refocus and move forward

Figures released by Eurostat at the end of last year showed that, at almost a third of the European Union average, Malta had the fourth lowest R&D expenditure in the EU in 2015.

R&D is one of the foremost pillars upon which Malta’s sustainable economic growth rests

In 2005, Malta’s R&D expenditure amounted to 0.53 per cent of GDP, rising to 0.77 per cent by 2015, when the EU average stood at 2.03 per cent.

In 2015, the EU Member States spent almost a total of €300 billion on research and development, Eurostat said.

“In the past, R&D has been combined with completely unrelated subjects, naturally ending up on the back-burner of priorities. This crucial aspect of economic growth, in a value-added economy like Malta’s, requires the full and undivided attention of the government to motivate innovation-driven companies to make the leap forward to the next level.

“R&D is one of the foremost pillars upon which the country’s sustainable economic growth rests, as it can provide Malta with a much-needed competitive edge over competing neighbouring regions,” Mr Farrugia writes.

He also calls for an early solution to the problems facing Air Malta. In Mr Farrugia’s opinion, the solution should rest on three columns: lowering operational costs, rectifying the debt situation and dividing shareholdings into three parts – the government, an international aviation strategic partner and local investors.