Malta’s economy is built on services, its construction industry and a small part of it made by its financial industry.
It has performed well for many years as it has improved its banking system to international standards and offer very amicable tax arrangements for foreign companies.
Read more about Malta’s progress with this infographic!
The European Commission’s EU Operational Programme for the SME Initiative for the period of 2014-2020 allowed Maltese authorities to secure €15 million in funding for the private sector.
The programme will also guarantee local Maltese businesses an estimated range between €50-70 million worth of credit capital investment to support SME competitiveness. This support package will be funded through the European Regional Development Fund (ERDF) using uncapped guarantees.
The Maltese Business Bureau gleamingly commends the Maltese authorities for heeding the European Council’s call to participate in the SME Initiative. The Initiative was developed by the European Commission and the European Investment Bank to help member states during financial crises.
MRB President Mario Spiteri said “We are pleased with this development as it shows Government’s commitment towards private enterprise. With the backdrop of a declining investment by the private sector in the past years, particularly due to the uncertainty that surrounded and is still surrounding the euro area and the European economy, the allocation of €15 million for the SME Initiative will encourage and incentivize SMEs to reverse this trend.”
“In a report we published last year on the allocation of EU Structural and Investment Funds in aid of private enterprise, the MBB noted how boosting private investment when the economy is in distress is likely to have a significant and permanent positive impact on the country’s potential growth. For this reason, we have welcomed past initiatives such as JEREMIE, and encouraged Government to invest in similar financial instruments, with the SME Initiative being a case in point,” Mr Spiteri continued.
Malta may be a small European Union member state, but it helps to know that it’s potential on competitiveness remains to be seen. The Global Competitiveness Index indicates that the country had ranked very highly in categories such as Health, Institutions, Primary and Higher Education, training and Market Development.
However, the GCI also indicated that Malta lagged behind in terms of Labour and Market efficiency. Analysts say that this means Malta’s potential is not realized due to the lack of solidification.
Malta has a good GDP even if it is below the Euro area average. It had a growth rate of 2% in 2010, leaving behind its neighbours in the past 10 years. Malta’s economy also had the fastest growth in the Euro Union with 2.8% in 2011.
Malta’s Tourism also received a great number of tourist arrivals. In 2013, Malta is expected to go over 1.3 million tourist arrivals. In Malta, all foreign investments should be locally-owned, allowing the country to have a hold on the tourist industry of the country.
Malta’s high competitiveness and potential makes it a prime investment choice for the uncertain investor. Experts also commented that Malta’s technological achievements allowed the country to increase its economy by overcoming the natural disadvantages it has.
If you’re looking to purchase a property in Malta, it’s feasible to also start a business in the country. Malta is a country rich with oil and minerals. Limestone is a primary export product of the country. Existing industries in the country include tourism, tobacco, aviation, financial and information technology services. Here are a few things you need to know if you want to open good business in Malta.
1. Tourism
Malta is a Mediterranean country and is a great tourist spot for both western and eastern tourists. Malta’s tourism is quite in its prime and taking advantage of this height is important. Look for market gaps in their tourism. For example, if you see somebody selling memorabilia, you could also sell certain kinds of memorabilia, but remember that it must be unique and must fulfil a certain gap.
2. Trade Competition
Know your competition before you enter certain industries. For example, if you’re entering the cotton and tobacco industry, there are at least three or four factories already doing the same thing. You’ll need to look for cotton and tobacco farmers and it will be difficult if they are already taken. Rental properties for tourists are great ways; but you’ll need to get approved for residential property in Malta first.
3. Know the Public Offices for Trade and Commerce
You must consider securing your trademarks such as your company name, logo and colour scheme, your patents and copyrights. Look for the Commerce Department of Malta. You could choose to register your company on your own, or you could hire a company that could incorporate your company into the system quickly for a fee.