Sai Mizzi Liang. Photo: Matthew Mirabelli

Telecommunications giant Huawei Technologies yesterday signed a memorandum of understanding with the government to open a local office and pursue research and development in Malta.

The MOU commits the Chinese company to begin testing 5G technologies on the island and to potentially support the government in achieving nationwide fibre-to-the-home coverage and laying an additional submarine cable.

“Huawei have seen here the potential of developing a centre for themselves but also a very specific testing ground,” Prime Minister Joseph Muscat said after signing the agreement.

“We should not underestimate the importance of a huge multinational like Huawei choosing Malta. This will not go unnoticed and will definitely strengthen our credentials and help us take Malta to another level.”

The signing also marked a rare public appearance by Sai Mizzi Liang, the government’s special investment envoy to Asia, who was described by Dr Muscat as instrumental in securing the investment.

Huawei is headquartered in Shenzhen, and is the world’s largest telecommunications equipment manufacturer. It is ranked 258th on the Global Fortune 500 list and employs some 170,000 people in 140 countries.

Huawei will initially be operating from a small office in Smart City with a handful of staff, all existing employees.

Asked to quantify the scale of the investment, Dr Muscat said it would be “quite simplistic” to reduce it to a monetary figure.

“The domino effect on the economy and infrastructure that will be needed to carry out island-wide testing of even a single technology is not small.”

Joseph Cuschieri, the technical expert leading the discussions with Huawei, said this was the start of a long relationship. He highlighted the importance of high-speed internet to Malta’s burgeoning digital economy and gaming industry.

5G, the most advanced generation of mobile network, which is not yet commercially available, is thought to be capable of delivering speeds some 100 times greater than existing 4G networks.

The new technology will also pave the way for developments such as advanced traffic management systems and the so-called ‘internet of things’, which will allow everyday objects and appliances to send and receive data.

Edward Chan, the CEO of Huawei Italy, said the opportunity for Malta was to serve as a testing ground for the technology.

He praised the efficiency of the Maltese authorities and the stability of the economy, also highlighing the island’s size as an advantage.

Dr Muscat added that rather than showing a lack of confidence in local telecommunications operators, the agreement would ultimately benefit all parties.

“I think operators will be looking forward to having access to new technologies,” he said. “This is an opportunity for them be at the border of the future before others.”

Sai Mizzi

Sai Mizzi Liang, who has been the subject of intense scrutiny since being appointed to a lucrative and vaguely-defined position as investment envoy in Shanghai, used the opportunity to defend her work.

“You’ve finally found me,” she joked before the signing. “You may have read all kinds of things about me online, but don’t believe everything you read. Here, this is the real me.”

She said her role was that of developing Malta’s relationship with “the largest economy in the world”, promoting Malta in China and returning business to the island.

Asked about her role in the discussions with Huawei, Ms Mizzi Liang said she had made initial contact with the company at a strategy forum in Shanghai in May 2014 before organising a meeting with a Maltese delegation in Shenzhen. “There were a number of meetings and discussions after that and you can see the results,” she said.

Ms Mizzi Liang’s appearance in Malta had the further irony of coinciding with a visit by Opposition leader Simon Busuttil to Shanghai where the two were expected to hold a meeting.