The potential closing down of STMicroelectronics' plant in Kirkop would put the country's economic resilience to the test and no effort should be spared to ensure Malta remains a competitive business destination, experts have told The Times Business.
"Should the STMicroelectronics plant in Malta close down, the consequences would depend on the economic resilience of the Maltese economy," economist Gordon Cordina said. Dr Cordina was quick to point out that, in the past, the Maltese economy did show "remarkable resilience" with a good degree of restructuring occurring.
He considers the bleak future faced by the Kirkop plant as "a very eloquent reminder of the need to sustain Malta as a competitive business destination". Deeming the impact of a potential closing down of the plant as likely to be "horrendous", Karm Farrugia, credited to have founded the Malta Development Corporation, feels there is still room for "that degree of dynamism so badly needed to attract to Malta the level of investment to adequately cope with suchlike disinvestment as STM's and, possibly, also others..."
The role of economic policy was raised too by economist Edward Scicluna. Prof. Scicluna fears that if the plant did close down, it would not only leave a "big hole" in the economy but would also negatively affect the country's efforts to sell itself to overseas investors.
"Should the STMicroelectronics plant in Malta close down, the consequences would depend on the economic resilience of the Maltese economy," economist Gordon Cordina said. Dr Cordina was quick to point out that, in the past, the Maltese economy did show "remarkable resilience" with a good degree of restructuring occurring.
He considers the bleak future faced by the Kirkop plant as "a very eloquent reminder of the need to sustain Malta as a competitive business destination". Deeming the impact of a potential closing down of the plant as likely to be "horrendous", Karm Farrugia, credited to have founded the Malta Development Corporation, feels there is still room for "that degree of dynamism so badly needed to attract to Malta the level of investment to adequately cope with suchlike disinvestment as STM's and, possibly, also others..."
The role of economic policy was raised too by economist Edward Scicluna. Prof. Scicluna fears that if the plant did close down, it would not only leave a "big hole" in the economy but would also negatively affect the country's efforts to sell itself to overseas investors.