Microsoft Corporation has joined the Maltese government in its effort to establish Malta as a regional Internet communication technology centre of excellence within the next few years.
Microsoft will set up a base, in Malta in addition to investing an estimated €51 million (Lm21 million) in this country.
This investment agreement - reached after months of intensive discussions between Dr Austin Gatt, Ministry for Justice and Local Government, who is spearheading the attainment of a first-class information society, and Microsoft - was sealed by a Memorandum of Understanding signed last January in Paris.
At the signing ceremony Minister Gatt held talks with Microsoft chairman Bill Gates, who reiterated his company's commitment to assist the government in rapidly transforming the island into a European ICT jewel in the Mediterranean.
The determinant factors behind this important development were mainly its thriving, varied economy, its dynamic and highly trained human resources, the strategic location of the island and its forthcoming EU membership. All these issues together have created the right scenario for this large multinational corporation to set foot in Malta with such an investment.
Furthermore, the minister stressed that "EU membership will eradicate any barriers that hinder the penetration of a much bigger market. Inside the EU Malta will have access to funds for research and development and also for IT-related education."
Considering Malta's size, GDP and population, Microsoft's Lm21 million constitutes a unique per capita financial commitment. Microsoft will assist local and international software developing firms (operating in Malta) through its setting up of the first Technology Centre of Excellence (TCE) in the region.
These software developing firms will be given access to the source codes of Microsoft's latest release operating system - once this company's most closely-kept secret.
Moreover, such locally based firms will receive access to Microsoft's global marketing and technical support networks enabling them to refine their products through the inherent wealth of knowledge, research and development of this large multinational company.
Besides serving as an incentive for new companies (including international software vendors [ISV]) to set up base in Malta, Microsoft's investment will directly assist existing local firms to consolidate and compete on a broader international level, thus fostering greater employment potential for Maltese IT skilled professionals in the years to come.
The current migration of foreign ISVs from applications based on the Windows 2000 platform to the Windows XP environment opens up wider prospects as Malta can tap its mastering of this latest Microsoft platform, thus tapping a lucrative niche within an extensive EU market.
Minister Gatt has announced that in view of the potential growth of HR requirements in the IT sectors Microsoft has committed itself to support HR development. The setting up of a Microsoft IT Academy in Malta, offering over 25 high-end training specialisations and certifications to Maltese students and employees, is a major development in this regard reaching students in various fields and at various levels of specialisation.
In its bid to eradicate the digital divide and to boost the ICT skills of Maltese students, Microsoft will be subsidising over 98 per cent of the cost of Microsoft XP Professional and Visual Basic Studio Software. Microsoft accepted the Ministry's request to make this subsidy available to Maltese students at all levels - which means that over 70,000 students will benefit immediately by receiving Microsoft's latest released software at a fraction of the retail cost.
This educational campaign is probably unique worldwide in its per capita penetration in the country's population and is set to multiply Malta's ICT credentials in the coming years.
Interestingly, in a registration event held in Valletta yesterday, thousands of students lined up Republic Street to eventually receive their software copies.
With Microsoft's assistance the government has made it possible for the long-awaited localisation (translation and customisation) of Microsoft Windows XP - the most used operating system in the world - into the Maltese language. The next releases of the XP operating system and Microsoft Office will include Maltese as a standard language.
Microsoft will be actively supporting the government in providing assistance to people with special needs through the provision of subsidised, specialised software designed for use by visual/hearing impaired individuals - so no one will be left out of the IT community.
The Ministry for Justice and Local Government - the ministry leading the eGovernment programme - has aggressively adhered to its programme of transforming Malta into a regional force in ICT and a relevant dot in the dot com world.
This constitutes a classic example of efficient public-private sector co-operation, not just on a local but within a major international perspective.
Minister Gatt told The Sunday Times that this agreement can provide the "necessary agreements and infrastructure to make the country the IT tiger of the Mediterranean".
The Malta-Microsoft joint venture is yet another milestone in the government forward-looking IT strategy. More is yet to be achieved in the coming months as Malta's economy and society embraces the much anticipated EU membership challenges, growth and opportunities.