If there were one key message that I got from the Commonwealth Business Forum held this week at the Hilton, to coincide with the Commonwealth Heads of Government Meeting, it was that, for an economy to grow at a rate that is comparable to its competitors, it needs to kill bureaucracy.

This message could be received not only from speakers who stated explicitly that, in today's economic reality, growth and bureaucracy cannot live side by side but also from questions that were put from the floor of the various sessions to the speakers.

As expected, a number of speakers sought to promote their own countries and, invariably, persons attending their presentations asked questions that had one common feature - "and what about regulations and red tape?"

Hugh Morgan, president of the Commonwealth Business Council, spoke of the need to help improve the business climate by removing unjustified costs and barriers. His claim is that the extent of legislation, regulations and red tape have now reached a level in several countries that is stifling economic growth. The private sector is not being allowed to exploit market opportunities because of such bureaucracy.

He specifically mentioned issues relating to the efficiency of the public service, taxation and the need to have the adequate infrastructure in place. He also mentioned the issue of corruption, which may not be so relevant to our country; however, all the other aspects he mentioned apply to us as well.

Peter Caruana, Gibraltar's Chief Minister, highlighted in his presentation his country's ability to position itself as a bridge country, that has managed to build up an excellent economy and to become a leading hub for financial services, bunkering and online gaming. The secret of Gibraltar's success was a sound international legislative infrastructure, transparency and regulations that did not hamper the needs of business. Economies have to cut down on bureaucracy and unnecessary burdens and must have a competitive tax regime.

The Minister for Investment, IT and Industry, Austin Gatt, also expressed his concern that, although investors do not consider bureaucracy in Malta to be particularly stifling, we still need to be vigilant that it does not make us lose out on opportunities.

Speaking to Maltese participants of the Commonwealth Business Forum, I noted that they agreed with Dr Gatt's comments and expressed their fear that there could be a group of invisible people in this country who seem to have made it their mission to thwart the initiatives being taken by the private sector or at the political level to create economic activity, thereby generating growth.

Key investors in this country like HSBC and De la Rue applauded the level of education and the flexibility of the work force. This leads to higher productivity and therefore lower unit costs. I am sure that other investors would agree with them. The additional investment announced by Actavis at one of the sessions of the Commonwealth Business Forum is proof of this. However, it does not mean that we do not have bureaucracy.

It is becoming a known fact that Malta is losing out on foreign direct investment because the regulatory bodies within the public sector are too keen at laying down the law rather than adding value to the economy.

These regulatory bodies do not appreciate that, unless there is sufficient economic activity, there is no logical reason for them to exist because they would have nothing to regulate. The problem could be that they have as yet not learnt how to interpret their role correctly. However, in the meantime, possibilities for job creation are being lost.

It needs to be understood that positive situations like a favourable tax regime, the availability of a skilled and flexible workforce, low factory rents, can easily be copied by other countries.

What is now distinguishing countries is the extent of bureaucracy that may or may not exist. It is for this reason that the public sector must understand that, although its role in the economy is that of a regulator and not that of an operator, it must still add value and must not stifle economic growth and job creation.

This is why that the key message that has emerged from the Commonwealth Business Forum must be understood loudly and clearly - kill bureaucracy!