There was a time when there was consensus about a particular feature of the market: supported by the key features and institutions of democracy, the market imparted ‘stability’ to national economic and financial systems, particularly those that used to belong to what used to be called the West. ‘Mature capitalism’ was the talk of the town, and the world – Adam Smith’s powerful unseen hand of the market, sure, but gently guided and restrained by political, institutional and social stabilisers on all sides. That was what we believed the present was and what the foreseeable future held in store.
This picture is no longer an accurate picture of reality. Two particular drivers have already changed it substantially and will eventually change it beyond recognition – technology and disruption. Closely interrelated, these two drivers are literally mutating the world as we know it.
Until quite recently, technology was seen as the handmaiden of market forces. Its role was to make the market and its productive forces work faster and more efficiently. While still doing this, however, today’s technology is doing more, much more. It is literally reshaping the market itself.
The nature of new and upcoming technologies is redefining what the market is and how it operates. They are changing the way we work and interact. Malta is slowly catching on to this radical development. Yet if we are to transform this challenge into an opportunity, the pace needs to be quickened.
Simultaneously, there is the other ground-breaking phenomenon of disruption operating at all levels, from the small local to the vast geopolitical one. The heart of it all is the notion, nay the reality, that newcomers to the market are delivering new products and services, new value networks, and in ways which prevent traditional economic and financial operators from continuing to exercise their advantage.
The nature of new and upcoming technologies is redefining what the market is and how it operates
None of this should be seen as a threat to our economy. In fact, there’s already a lot happening that should point to myriad opportunities opening up. For starters, confidence in Malta as a start-up hot bed is growing – largely in iGaming, fintech and digital business. We should strive to widen this catchment. In addition, our size and consequential agility, our social cohesion and our workforce have all been major success factors in recent years. There is every reason to believe that with the right energy, policies and drive, these could be harnessed once again to catch the new wave.
Yet a word of caution is in order. Regrettably, we seem to be losing some agility in regulatory change, at least in some sectors. The sooner we come up to speed, the better.
Secondly, social cohesion has become increasingly strained, probably as a result of the never-ending electoral campaigning. Hopefully, in the coming months and years this unwelcome trend will be subside. Thirdly, our workforce skill sets, as well as their volume, are increasingly lagging behind the demand arising from our economic and financial success.
Pulling all these challenges and opportunities together will be this year’s EY Malta’s Annual Attractiveness Event – Thinking without the Box: Disruption, Technology and FDI (October 25, InterContinental Arena Conference Centre). Now into its second decade, attracting all the top stakeholders in the public and private sectors to the podium, seminal speakers from around the globe, vibrant breakout sessions and with over 500 participating delegates, EY’s national conference is the place to be to network and feel the country’s economic and financial pulse today. It is also the place from where you have the best view of what lies in store for the future.
To register and find more information, visit http://eymaltaattractiveness.com .
Ronald Attard is managing partner, EY Malta.