Malta must ensure it remained competitive by keeping wages, energy costs and taxes “at the right level” a German company owner warned on Tuesday.

Speaking in the presence of Prime Minister Lawrence Gonzi during the inauguration of a €5 million investment, the chief executive of ProMinent Malta Viktor Dulger also cautioned against excessive bureaucracy like that which has stifled the German economy.

ProMinent produces water treatment and fluid metering technology and the expansion inaugurated this week includes a new electronic products assembly line.

“It will be up to the Maltese to make sure that their country, as a location for manufacturing, maintains the conditions which allow it to compete successfully. In order to achieve this, it is essential to promote the skills and knowledge of highly qualified employees and to keep wages, energy costs and taxes at the right level,” Prof. Dulger said.

Dr Gonzi said his government was conscious of the importance of remaining competitive and insisted the policy of reducing subsidies was intended to redirect money into productive areas and education.

He reiterated the government’s commitment to invest in education so that Malta could have the skilled workers investors were seeking.

High value manufacturing, Dr Gonzi added, was an extremely important component of the economy.

The Prime Minister praised the company over the fact that a large percentage of its employees were women who returned to the labour market after a career break, which was in line with government policy.

The German firm set up its subsidiary in Bulebel in 1988. It now employs 100 workers. The company exports its products to 40 countries.

In his speech the chief executive thanked the workers and the Maltese authorities, particularly Malta Enterprise, for their support over the years.