Lufthansa Malta Report 2017 by CountryProfiler

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Malta

Gearing up for the Next Transformation

On the up and up: Malta wants to ensure that the progress of recent years continues. The island has placed infrastructure investment at the top of its development agenda as it seeks to transform itself into a truly global hub for business, as well as a very liveable place to work and raise a family.

othing speaks more convincingly than the facts, and there is no denying that tiny Malta has emerged as one of Europeâ&#x20AC;&#x2122;s best-performing economies, with high GDP growth and record-low unemployment. Maltaâ&#x20AC;&#x2122;s well-diversified economy proves alluring to international companies and foreign professionals pursuing dynamic careers in sectors such as finance, maritime, aviation and the digital industries. The nation, famous for its 7,000 years of history and 300 days of sunshine in a year, has never

been as wealthy before as it is today and has grown both in influence and confidence. In the international political arena, Malta, which currently holds the EU Presidency, has significantly enhanced its credentials. However, the fast pace of development has presented Malta with a new set of challenges. The country now needs to invest in infrastructure and the attractiveness of its built environment to transform itself into a world-class destination complete with the best amenities, green parks and places for recreation and entertainment.

Mediterranean Location

Located at the southern tip of Italy and just over 316 square kilometres in area, the Maltese Islands lie virtually midway between Europe and North Africa, some 90 kilometres south of Sicily and 290 kilometres north of Libya. The archipelago comprises Malta, Gozo and Comino. The main island, Malta, is 27 kilometres long and measures 14.5 kilometres at its widest point. It takes just 45 minutes to cross Malta, reducing commuting times and increasing leisure time. u

CountryProfiler MALTA FEATURE

u A rocky island with dry and often windy weather, Malta enjoys a typical Mediterranean climate, with the average temperature ranging from 12 degrees in winter to 30 degrees in summer. The capital city Valletta is both the administrative and business centre of the country. Other main towns include: the popular sea-side towns of Sliema and St. Julian’s on the west coast; the inland towns of Mosta and Birkirkara, situated in the centre of the island; and Paola in the south. There are also numerous small villages that still evoke the traditional Mediterranean rural way of life, although some 90% of Maltese live in urban settings and the overall vibe of Malta is modern. Ruled by the Major Powers

Malta’s strategic location at the commercial crossroads linking Europe, Africa and the Middle East has attracted the interest of the various dominant cultures for millennia. The Phoenicians, the Romans, the Carthaginians, the Arabs, the Ottomans, the Knights of St John, the French and the British all ruled the island at one time and have contributed to the mosaic that is modern Malta. Not surprisingly, Britain’s legacy has lasted the longest as Malta was part of the British Empire for over 150 years:

“Malta scores high when it comes to economic stability. This is really of importance because it is a key criterion for many investors when choosing a country over another. As a country, we are aware that nothing comes easy and you have to work for it. We have a high standard of education, while we do our best to create a proactive business environment and to make Malta a location of choice for foreign direct investment and international trade.” Dr Christian Cardona Minister for the Economy, Investment and Small Business

business, law and education retain British characteristics, while English, alongside Maltese, is an official language. Maltese is believed to have developed during the Arab occupation of the islands (870-1090) and is the only Semitic language to be written in Latin script. People with International Outlook

Descendants of ancient Carthaginians and Phoenicians, with strong elements of Italian and other Mediterranean stock, the Maltese are truly an international people. With a history that has seen a succession of foreign rulers, the islanders have acquired an ability to adapt to new ideas and adopt them to their advantage. Generally well-educated and qualified, 90% of Maltese are bilingual in English and Maltese, and many also speak a third language, usually Italian, German or French. Malta is also home to a growing expat population, attracted by strong economic growth and career prospects. The country’s population is one of the most politically active in Europe, with elections seeing voter turnout regularly exceeding 90%. Malta is a parliamentary representative democratic republic, in which executive powers rest with the

Prime Minister while the President fulfils the function of Head of State. Elections are contested, for the most part, by the two main parties: the Labour Party led by current Prime Minister Joseph Muscat, and the Nationalist Party headed by Simon Busuttil. The last general elections, in March 2013, resulted in a landslide victory for Labour, at the expense of the centre-right Nationalist Party that had been in power for 15 years. In April 2014, Malta also chose a new president, Marie-Louise Coleiro Preca, Malta’s second female president. The next parliament election is expected to take place later in 2017 or in early 2018. Fastest Growing Economy

Gaining independence from Britain in 1964, the country’s decision to join the EU in 2004, and the Eurozone in 2008, was integral to the expansion of its horizons and bolstered its status as a key business hub in the Euro-Mediterranean region. There is no doubt that Malta leads the region in many economic indicators. Its small, open economy has proven to be remarkably resilient in the face of the global economic downturn. Malta has posted positive growth figures over the past six years and has regularly been among the best-performing economies in the EU. In 2016, the economy grew by 5%, making it the fastest growing economy in the EU. The International Monetary Fund recently said that Malta’s outlook is strong and that growth is expected to remain solid in 2017, highlighting that Malta’s diversified economy has helped preserve stability. GDP growth is projected to glide to 3.7% in 2017 and 2018, which still puts it among the fastest growing economies in the euro area according to the European Commission’s winter forecast.

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MALTA FEATURE

Driven by Services Exports

Tourism is among Malta’s top performing sectors. In 2017, the island expects to welcome over two million tourists – more than ever before. Tourism today accounts for some 30% of the country’s GDP. Rivalling tourism’s importance and growing in tandem over the last few years has been Malta’s financial services sector, which now accounts for 13% of GDP. As the first EU country to license online gaming, Malta can look back at almost two decades of uninterrupted growth in the iGaming sector, which now contributes around 10% to GDP. Life sciences and digital media are joining the traditional economic generators and creating a solid base of diverse operations from which Malta is competing on an international level. The maritime industry is one of the oldest, and today Malta is home to the largest ship register in Europe and is one of the major logistics providers in the Mediterranean. Malta is also on the fast track to becoming a hub for education, healthcare, and energy – sectors that are poised to become the country’s next success stories. Electricity production has been shifted away from fuel oil generation towards a cheaper, cleaner, gas-powered energy matrix, which has helped persuade the private sector to invest. Working hand in hand with foreign partners, Malta is also seeking to add education and health to its list of exportable services. High-Profile Investment

The decision by high-profile companies to invest in and to move operations to the island is a strong indicator of the extent to which Malta is being regarded as a profitable business hub. Some prominent compa-

nies, which have invested in productivity and increasing efMalta, are HSBC and Banif in ficiency are critical if growth is banking, French line CMA to be sustained. While Malta has CGM in the port sector, the infrastructure that anyone Microsoft, Huawei and would expect to find in a prosVodafone in IT and telecoms, perous city-state, an influx of and Lufthansa Technik and companies and foreign profesPlaymobil in manufacturing. sionals has put pressure on roads, Foreign investment has helped telecoms and energy networks to push Malta’s economic perand many other facets of urban “The shift from oil formance throughout the years. living. Malta is on the verge of a to gas has brought Providing access to the EU’s major infrastructure overhaul, and about a 50% single market, Malta’s proximity there is a strong desire to develop reduction in emisto, and cultural links with, North visionary projects that will deliver sions, while the African and Middle Eastern social impact and economic value. internationalisacountries are particularly atHuman capital investment is tion of Enemalta tractive to companies that use also on the government’s priorhelped it recover the country as a stepping stone ity list as a shortage of talent financially. We for trading, distribution and in certain industries is putting are pushing really marketing of their international upward pressure on the island’s hard on all fronts. operations in Southern Europe cost competitiveness. Malta not We are for the and North Africa. In addition only remains open and welcomfirst time investto the historical and strong ing towards foreign professionals, ing €100 million commercial links with Italy and but also actively encourages them in the distributhe UK, Malta enjoys healthy to come and work on the island. tion network trade with France, Germany, the infrastructure.” Netherlands, the US, Canada Newfound Confidence and China. Malta’s exposure to Strong economic growth has Konrad Mizzi international commerce is one transformed Malta into a conMinister within of the highest worldwide, and fident nation, which is now the Office of the the country’s leaders are conseeking to strengthen its position Prime Minister stantly working on developing on the global stage. Malta’s EU new ties with foreign governPresidency, which runs till the ments in order to facilitate end of June 2017, has been shaped worldwide market access for all industries. and influenced by Brexit given that the UK triggered Article 50 of the Lisbon Treaty in March. Despite this challenge, Malta, as head A Place to Grow a Company Malta offers investors a secure and transpar- of the 28-nation bloc, insists that Europe ent environment in which to start or expand needs to keep a positive outlook and ensure that the European project moves ahead. a business. The country has introduced business-friendly policies underpinned by a However, Brexit is as much about politics as it is about business, and although Malta is not legal and regulatory framework that is fully pitching as aggressively as other nations for harmonised with EU legislation. Malta has UK business, it is quietly positioning itself also built up modern telecommunications as an attractive alternative for companies and international transport links, while a seeking an address in the European Union. full package of incentives that range from fiscal benefits to the provision of custombuilt production facilities are available to Moving Forward investors. Start-ups also play an increasingly Investment, across all sectors, will remain important role in Malta’s economy and a key driver of future growth and is seen find support in the form of seed financing as important to raise living standards even schemes and incubators. This trend has not further. There is also a lot of enthusiasm to gone unnoticed by investors, venture capital implement ‘beautification projects’, as well firms, and more recently global investment as to realise urban renewal programmes that banks, who are competing to fill the funding reflect the needs of modern Malta. Its capital needs of promising early-stage businesses. city Valletta has been chosen as European Capital of Culture for 2018, and while it by no means is already a beautiful city worth a An Impetus on Infrastructure visit, fresh investment is currently transformThe country now pushes itself towards ing into a vibrant hub of activity, effectively a more innovation-driven economy, as mirroring Malta’s strong economy. n there is increasing awareness that raising

CountryProfiler MALTA FEATURE

Interview with the Prime Minister of Malta - Dr Joseph Muscat

Record Growth in Record Time Malta’s economy grew faster and more comprehensively than many had expected. Prime Minister Joseph Muscat is now focused on turning the country into a cosmopolitan hub and one of the world’s best places to live.

When you came into power in 2013 you set your sights on making Malta the most competitive economy in the EU. How much of this ambitious target do you think you have achieved?

Our economic success cannot be denied. Regardless of how you look at the statistics and the numbers, we are pretty successful on the economic front. In the past four years Malta reached the lowest rate of unemployment in its history, which is also the third lowest in Europe, and we continued to surpass our own record rate 12 times in this legislature alone. Real GDP growth has turned out at 5% in 2016 – the second highest in the EU. We have put forward ideas like universal free childcare, which has unleashed the tremendous, previously untapped potential of the female labour force. We have lowered energy bills by 25%, increased pensions for the first time in 25 years, while we are also taking

turned out at

Many, including the international rating agencies, were surprised that Malta’s small economy was able to outperform majority of other EU states. How do you explain this?

The key to Malta’s economic success has always been that all sectors of the economy are contributing to our growth. In 2016,

IN 2016

Real GDP Growth has

people off benefits and putting them into work through in-work benefits. In the past four years, we have created enough job opportunities not only for the Maltese, but also for 30,000 foreigners. We have developed from a place where there were not enough jobs, into a place that needs more workers to fill all the jobs. At the same time we managed to balance our books and reduce the deficit, exceeding even our own expectations. This, together with responsible use of public funds, has led to Malta receiving its first upgrade in years from the international rating agency Fitch.

The second highest in the EU

we received a record of almost 2 million tourists. We are seeing growth in financial services and iGaming, and even in manufacturing, which many had predicted to be obsolete by now. New companies are setting up, and order books are healthy. The driving force behind Malta’s past and current success is that we worked on turning Malta into the ultimate destination for investment and left our doors wide open for businesses. We have a skilled workforce, firstclass technology and communications, and we continue to foster a pro-business environment. Investors also comment favourably on our ‘can-do attitude’. This is perhaps what differentiates us. There is a spirit in Malta to always do better. This also means that we are aware that past success is not a guarantee for the future. So we need to diversify further. What sectors of the economy do you feel offer foreign investors the greatest opportunities going forward?

Our next big projects will be related to logistics and the maritime economy with the construction of a dedicated maritime services hub. We have also invested heavily in education and health, in particular with a view to make them exportable services industries. We want Malta to become a leading medical hub in the region, and the interest received by foreign investors, for instance for the opening of a new private hospital and a medical school on Malta’s sister island Gozo, confirms that Malta has the right credentials in this regard. When it comes to education, we want to build on our reputation as a teaching and training centre. Malta is already a top location for the teaching of the English language. In the autumn

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MALTA FEATURE

consider the UK’s exit from the European Union as an opportunity. British companies wanting to remain within the EU could see us as a gateway to the European Union. Valletta has been chosen as the European Capital of Culture in 2018. What opportunities does this title present to Malta?

of 2017, the American University of Malta (AUM) – a private university – will open its doors. Our intention is to position Malta as an education destination for students from all over the region and beyond. We also want to consolidate the results we achieved so far in other sectors, and current and potential investors believe that Malta is extremely attractive for FDI. Malta endeavours to pursue its promise of an environment conducive to business that offers investors stability and transparency in terms of corporate taxation and regulatory processes. Malta’s first EU Council Presidency is coming to an end. How would you describe your experience at the helm of the EU?

The Maltese Presidency of the Council came at a time when the very existence of the Union was being put to test. The economic crisis, Brexit, migration issues, security threats and terrorism have traumatised the European project. However, we were deeply committed to ensuring that the European project continues. The EU Council Presidency was both a challenge and an opportunity for us as a nation. We showed that even the smallest member state of the Union can contribute to prosperity, peace and security. We brought tangible results in areas that truly make a difference to European citizens. On the issue of migration, we struck a deal to avoid a humanitarian crisis in the central Mediterranean. We agreed to further assist the Libyan coast guard in their efforts to counter human trafficking while also engaging with would-be migrants to explain the perils of the dangerous trip. Malta’s leadership also helped to strengthen the single market, in particular

the single digital market, by addressing the issue of unjustified geo-blocking and by removing roaming charges in Europe, a measure which brought about a real change in peoples’ lives. We also pushed for the development of the European Social Pillar by addressing the ever-changing issues of the job market and for women’s full access to employment. Malta also promoted the better governance of our oceans, in particular that of the Southern Mediterranean basin. How do you see Malta’s relationship with the UK developing in the future?

We, like our fellow EU member states, want a fair deal for the UK, but – and I have said this very clearly – this cannot translate into a better deal than membership. As a country, Malta is keen to continue to have excellent bilateral relations on many fronts with the UK, although it is still too early to define what this would look like. But I think we need to

It is a brilliant opportunity for us to showcase Maltese culture. The truth is Valletta is a gem that many people have yet to discover. It is a wonderful place to wander around and absorb. The European Capital of Culture gives us the opportunity to show the other side of Malta: our history, culture and arts. It’s also an opportunity for Malta to not only strengthen its cultural infrastructure through the development of its local sector, but also to open new avenues of dialogue and knowledge-sharing with various international partners from within the fields of culture, the arts, academia and diplomacy. What are your expectations for Malta in the coming five to ten years?

In the coming years we will continue to work to become one of the best, if not the best, economies in the world. As I already mentioned, we want Malta to be a hub for various services and are diversifying our economy further. To achieve our ambitious goals, we need to address gaps in our education system, as well as the current skills mismatch between workers and jobs that we are presently working to overcome. We also need to give proper importance to urbanisation, infrastructure development and long-term planning. In a few years’ time, I hope that Malta will not only be an economic success story, but also a country that offers one of the best qualities of life to its people. I want Malta to be open, cosmopolitan and leading by example on a global stage. n

CountryProfiler MALTA FEATURE

Key Facts & Figures Located in the centre of the Mediterranean, between Europe and North Africa, Malta is the European Union’s smallest member state.

Location: Southern Europe Official Name: Republic of Malta Area: 316 km2 Shoreline Malta: 200 km Shoreline Gozo and Comino: 71.2 km

Population: 434,403 Foreign: 6%

Maltese: 94%

300

days of sunshine/year

Temperature average: Winter 12ºC Summer 31ºC

Annual rainfall:

600mm

Languages:

Maltese & English

Time:

GMT+1

Currency:

Euro

International Dialling Code:

+356

Religion:

Roman Catholic

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MALTA FEATURE

The Maltese Islands were, just a decade ago, best known as a holiday destination. However, over recent years, the country has sought to diversify its economy beyond tourism by promoting a range of sectors and activities. Financial Services 13%

Industry

23% Agriculture

Services

Malta’s economy in 2016

+5%

Total GDP:

€9.9bn

Unemployment rate:

Inflation:

Deficit:

Debt to GDP:

GDP Growth: Tourism 30%

GDP Composition

Transport 12%

Source: National Statistic Office, CountryProfiler

75%

iGaming 10%

0.9%

0.7%

FDI Stock:

4.8%

59.6%

€156.7 billion (June 2016)

Malta’s Top Trading Partners: Italy, Canada, Germany, UK, US, France, Netherlands, China

Selected Sector Rankings

16th Soundness of banks

21st 15th 21st 19th 30th 30th FDI and Technology Transfer

Strength of auditing & reporting standards

Country capacity to attract talent

Quality of the education system

Affordability of financial services

Transparency of government policymaking

World Economic Forum, Global Competitiveness Index 2016-2017

Double Taxation Treaties:

70+

Accounting Standards:

IFRS

Corporate Tax: 35%. However, through Malta’s full imputation system, shareholders can claim a tax credit for the tax paid by the company.

Fiscal Year: Calendar Year

Sovereign Ratings: A/F1 (Fitch, 2016) A3 (Moody’s, 2016) A-/A-2 (Standard & Poor’s, 2017)

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Foreign Direct Investment

German Success in a Mediterranean Context Many countries claim to be business-friendly, but few come close to what Malta has to offer. For evidence, just look at the many foreign companies who have made this country their home.

n island at the centre of the Mediterranean Sea is not the first place one would expect global investors to set up state-of-the art production plants and international service centres. However, the quest for cost-competitive and high-quality production has drawn their attention to the Maltese Islands for many decades. Some 250 FDI companies operate in Malta in manufacturing, productive industries and ICT. Investors are also becoming increasingly upbeat about the opportunities that the island offers in emerging areas such as education, logistics and international distribution centres, life sciences and medical services, Research & Development, cyber security, as well as advanced manufacturing, including robotics and supply change management. Playmobil, Lufthansa Technik, ProMinent Fluid Controls, Merit Tools, Metallform, Seifert, Hotset, MSC and Piltz Machines are

Lufthansa Technik chose Malta for it its excellent geographical position serving Southern Europe, Northern Africa and the Near East, its stable business climate, EU membership with the euro as the currency, as well as its very good level of English, skilled workers and stable political landscape. Another driver back then was to find a more cost-efficient setup for services to its largest customer: Lufthansa German Airlines. Even though the success of the Maltese economy and the domestic labour market means it is increasingly challenging to fill vacancies, Lufthansa Technik Malta, as well as its over 50 customers, still enjoy the aforementioned benefits. Marcus Motschenbacher CEO of Lufthansa Technik Malta

well-known German companies operating in Malta; all sharing one common feature: profitability. The underlying strengths of Malta are its workforce, its location with the ease of access into surrounding markets, and its competitive cost structure. Situated two to three hours by air from Europe’s major cities and well connected to other parts of the world, Malta’s EU membership provides companies with access to the Union’s massive internal market of over 500 million people. At the same time, the country has sought to promote itself actively in third countries and developing markets and is an ideal launch pad to access the growing markets of the region. n

Back in the mid-1980s ProMinent was seeking to open a plant to produce in-house a new product line. The local FDI incentives together with the relatively competitive labour costs were primary reasons for the initial investment in Malta. Over the years, ProMinent has come to appreciate the dedication and flexibility of the hard-working local workforce as well as the pro-business culture of the institutions on the island. A primary driver in recent years has also been the ability to engage highly skilled and motivated human resources within its Malta plant. This has kept the plant competitive on a global scale. Various investment incentives offered by Malta Enterprise have also proven to be a further catalyst to the growth of the local enterprise. Dr Ing. Conrad Pace General Manager of ProMinent Fluid Controls

The factory has literally grown from 1 injection moulding machine when we started production of PLAYMOBIL figures in Malta in 1976 to over 320 injection moulding machines in 2017, rendering it one of the largest injection moulding plants in Europe. At that time, the Maltese government offered attractive investment packages as well as favourable rents for factory space for foreign companies. Over the years, we have seen an evolution from a mostly manual and labour-intensive operation to a high-tech and state-of-the-art factory. Continuous investment in training and development, coupled with a very flexible workforce, have ensured that Playmobil Malta has strong ties to the Maltese Islands and continues to invest in the factory, as well as in new tools and machinery, so much this year we are inaugurating an extension to our existing factory building. Matthias Fauser CEO of Playmobil Malta

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MALTA FEATURE

Interview: Mario Galea, CEO of Malta Enterprise

A Platform for Quality Manufacturing Can you provide a brief introduction to Malta Enterprise and tell us about Malta’s FDI portfolio?

Foreign direct investment has always been important for Malta’s economic development, although the industries that we sought to attract have changed throughout the years. New sectors have emerged, while existing industries in Malta have reengineered their activities to maintain and enhance their competitive edge. Today, we have a very diverse client base and host companies from a wide range of established and growing sectors, such as electronics, precision and mechanical engineering, automotive and aviation, pharma, medical devices and life sciences. The productive sector accounts for about 32% of our economy and is the main export contributor. The core function of Malta Enterprise has always been to promote and facilitate international investment in order to create employment with economic and social benefits. One of our priorities is to ensure that Malta continues to be one of the most welcoming locations in the world, both for existing clients as well as for new companies considering doing business in Malta. We also want to stay ahead in the future, and are actively looking at the ‘industries of tomorrow’ – sectors that are still in their infancy today and can mature in five to ten years’ time. Malta wants to offer job opportunities at all levels of skills, competencies and qualifications. There is a very positive perception of the operation of the bigger German companies in Malta. What has cemented the relationship throughout the last three to four decades?

German investment represents one of the largest communities of FDI in Malta, and trade of industrial goods and services between the two countries amounts to €800 million annually. German-owned firms in Malta employ almost 3,000 workers in direct production. The bond between Malta and German companies has stood the test of time, and many of the companies that set up here decades ago are still operating on the island. German industry has certainly left a hallmark on the work ethic of the Maltese, as well as on the level of professionalism and efficiency of Maltabased companies, something which has proven to be an important factor in attracting additional operators to the island.

More countries than ever are seeking to attract foreign investment. What is Malta’s competitive edge?

airport and seaports to the industrial zones and vice versa upon being cleared through the streamlined customs procedures. Malta offers a competitive base Offering excellent opportunities that enables companies to be for customs warehousing as well “ The bond profitable. It is as simple as that, as supply chain management, between Malta and we are doing our utmost Malta is also an ideal location and German to ensure that this remains for companies wanting to ship companies has the case. Electricity tariffs for varying quantities of products stood the test of businesses have been reduced to many different countries, time, and many and administrative charges enabling suppliers and customers of the companies have been lowered, while our to work on a ‘just in time’ basis. that set up here social costs are contained at Our geographical position also decades ago are 10%. Our cost base is very stable means that we are an ideal hub for still operating and predictable, which gives non-EU companies keen to enter on the island.” investors long-term certainty. the EU market, as well as for EU Our educational system procompanies seeking to tap markets Mario Galea duces good people: qualified, in North Africa or the Middle East. CEO of Malta flexible, multi-skilled, quick When it comes to robotics, Enterprise to learn and English-speaking. Malta is developing new knowlMeasures have also been edge and skills to add to our implemented to attract foreign already strong technical base. In professionals to work in Malta, and we fact, the local advanced automotive compoare constantly in dialogue with industry nents industry has already adopted robotic to ensure that our training and educaprocesses. I believe that more manufacturtion programmes reflect their needs. I am ing sub-sectors will embrace robotics in confident that every foreign investor will their technology processes, and that Malta comment positively on the skills of the is well positioned as a place that could Maltese workforce, as well as their capabilfacilitate interesting synergies and partnerity to learn and acquire new competences. ships between firms developing industrial robotics as well as companies exploring Robotics and logistics are playing an and introducing advanced automation. increasingly important role in business today. How is Malta positioning itself in this regard?

Historically, Malta has excelled in the field of logistics, helped in no small part by our geographical location. Furthermore, our Grand Harbour has always been crucial to our economic success. Malta’s small size means that we can move goods around easily and quickly within the country, as it only takes minutes to travel from the

What would you like Malta to be known for in a few years’ time?

I would like us to continue to be known for efficiency and quality – centres of excellence in target niches, the home of top class names in technology and in production. We want our productive sector to continue to give a solid contribution to our GDP, to our economy, to our society. n

CountryProfiler MALTA FEATURE

Interview: Karl Azzopardi, CEO of Malta Industrial Parks

A New Vision for Economic Zones What is the landscape of industrial parks in Malta and what are Malta Industrial Parks’ (MIP) priorities in the management of such zones?

MIP administers around 4 million square metres of Government land, which is distributed across the island in the form of 11 industrial estates, two craft-related estates and two aviation parks. This translates into approximately 1,000 businesses working within the sphere of the manufacturing industry. MIP works hand in hand with Malta Enterprise when allocating factory and industrial space. However, our function goes beyond that of simply being a landlord. We want to improve our parks and are actively engaging our tenants in this process. We promote the formation of Tenants Associations and would like to see them involved in master planning, branding and the identification of capitalrelated investment. We also focus on optimising

and regenerating the parks in order to mitigate current and future demand for space. You have already identified the first two zones for a major quality upgrade. Can you tell us more about these projects?

We plan to develop an industrial zone, which is centrally located in Mriehel, into a cluster. Ideally industrial zones are planned in a way to favour such set-ups, and in Mriehel we aim to build a cluster of food products. Mriehel is a good example of how government and the private sector can work together to plan, administer and upkeep an industrial zone. Government has also agreed to double the tenant’s financial investment towards upgrading the area. This model might be adopted and improved upon with other zones. Another project, the rejuvenation of an artisan village, will see a 63,000 square metre area being developed into a hub of excellence for locally manufactured products, predominately those related to traditional Maltese crafts.

What plans do you have for Gozo’s industrial zones?

MIP is looking at extending its industrial remit in Gozo through three separate projects. Firstly, we want to extend the Xewkija Industrial Estate through the development of 15 new business workshops with a total of 5,355 square metres for traditional industrial activities. Secondly, we plan to repurpose an existing building for use by the financial, ICT, research and other related sectors. Both projects are in the procurement process stages. Thirdly, MIP is also working on the possibility of developing a micro-enterprise hub via a Public-Private-Partnership. What is your message to international investors looking at opening a plant in the Mediterranean region?

We act diligently, but promptly, in providing space to reputable investors. Malta can offer good quality premises at reasonable rates through which we create economic value and growth. Don’t miss out on Malta. n

Interview: William Wait, Executive Chairman of Projects Malta Ltd.

Projecting the Future Why was Projects Malta set up?

Projects Malta Limited (PML) was created to serve as a central touchpoint for publicprivate partnerships (PPPs). We identify national interest projects and are seeking to attract private sector investment. We can be described as project instigators that promote and manage stakeholders in the initiation stages, while our sister company Projects Plus oversees implementation of the approved projects. However, the nature of our work saw us adopting a wider interpretation to our role. In fact, PML has already assisted in the creation of several joint ventures on behalf of Government. A prime example would be Trade Malta, a joint venture with the Malta Chamber of Commerce, Enterprise and Industry promoting the internationalisation of companies operating in Malta, as well as Yachting Malta alongside the Royal Malta Yacht club which promotes Malta’s vibrant yachting services and facilities.

Infrastructure upgrades are a major hurdle that the country faces. What projects are currently being realised?

Transport is high on our agenda, and we do not shy away from unusual solutions. For instance, one project that is being implemented at the moment seeks to link the busy Sliema area, a major tourism and business hub, with the southern harbour region of Cottonera, passing right through the capital Valletta via a semi-submerged tunnel. When it comes to parking, we are currently shortlisting strategic locations for parking-lot developments. Another perfect example of Malta’s approach to PPPs is the health sector, where three hospitals are being upgraded in partnership with the private sector. We will soon be issuing request for proposals for the construction and development of several retirement homes.

What is PML’s vision for the future?

Malta is open for business, we are interested in more PPP ideas with local and foreign investors. Education, health and energy are all areas of interest. We are looking at opening new schools to cater for the needs of the ever-increasing expat community. Government is also interested in the construction of new sports facilities for several disciplines, and the improvement of landscaping at existing beaches as well as the creation of new ones. n

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MALTA FEATURE

Gozo

An Isle for Innovation While retaining its rural ethos, Malta’s second island is readying itself to support a more refined business eco-system.

nyone visiting Gozo for the first time gets the feeling they have stepped back in time. The villages, especially the smaller and more remote ones, are the epitome of a truly Mediterranean setting that hasn’t changed much with the passing decades. However, Gozo is also the home of hardworking and enterprising communities that have been known for their apt business sense and are now busy weighing the ingredients of a new winning formula.

Making the Most of Smallness

With 32,000 people (about 7.4% of Malta’s general population), Gozo is the secondlargest island on the Maltese archipelago. Because of its beauty, tourism has always been Gozo’s main economic pillar. Roughly 50% of Gozo’s GDP depends on the tourism sector and the numbers are on the rise. 2016 was a record year in terms of tourism arrivals, with one million bed nights being registered. However, the economic operation of the island is witnessing palpable diversification. Gozo is attracting service-oriented companies in sectors such as IT and financial services. RS2, the global payments software provider, has recently invested €1 million in a new office in Gozo, as has KPMG, one of the Big Four international audit firms. The latest industry additions also include producers of natural cosmetics, quality foods and even artisan breweries. Malta’s investment entity, Malta Enterprise, is rolling out the red carpet for entrepreneurs choosing to locate on Gozo. Companies can benefit from more advantageous tax credits.

A major public-private partnership for a health-tourism hub is also starting to take shape in Gozo.

Together with the Gozo Ministry, Malta Enterprise has also allocated €16 million for a partially EU-funded project to develop a digital hub aimed at attracting more high-tech companies to Gozo, mainly for R&D purposes. This activity will galvanize the good results that Gozo has already achieved in its GDP growth and employment rate. GDP growth in 2015 was already ten times that of 2012. Health Hub Potential

A major public-private partnership for a health-tourism hub is also starting to take shape in Gozo. A total of 300 medical students from Europe and beyond are set to enrol in what will be Barts School of Medicine and Dentistry’s first campus outside of the UK. Education and train-

“Gozo is open to various forms of investment and government is working on improving the infrastructure. We are investing €3.2 million in a second fibre optic cable that shall provide comfort to firms looking at a Gozo presence.”

ing will be amalgamated with a revamp of the Gozo hospital. The main three pillars of this hub will be oncology, orthopaedics and elderly care. However, there will also be openings for rehabilitation services and specialised medical manufacturing. Inspiration meets Innovation

Accessibility is still an issue anyone doing business in Gozo needs to consider, as the island is a 30-minute ferry ride out of Malta. However, studies for a tunnel across the channel and plans for a fast ferry connection between Valletta and Gozo mean that sooner rather than later this issue will be a thing of the past. Funding a second submarine fibre-optic Anton Refalo cable to Gozo is also a priority of Minister for Gozo the current administration in order to offer security and redundancy to companies heavily reliant on international services and transactions. Gozo cannot be a location for the production of huge quantities but it can offer a space for inspiration and innovation. Over the last years the island has attracted several foreign entrepreneurs and artistic-type expats in search of a slower pace of life. If their experience and know-how can be twinned with the desire and ambition of local companies to venture into new fields and tap new markets, it is likely that interesting strategic partnerships will result. The sound of the word Gozo might become more familiar in the years to come. n

CountryProfiler MALTA FEATURE

Start-Ups

A New Home for Start-ups Malta is taking steps to spur the growth of early-stage businesses and to attract new talent from around the world.

hen one thinks of European start-up hubs, London and Berlin come first to mind, perhaps followed by Dublin and Lisbon too. However, the Facebook, AirBnB and Uber bug has also landed in Malta where a start-up ecosystem is starting to take shape. In the past months, the country has seen the creation of incubators, co-working spaces and seed-financing schemes, as well as the arrival of venture capital firms.

Growing Start-up Community

Traditionally, Malta focused on attracting large foreign-owned corporations with special privileges, however there is a new desire to support smaller business ventures of a domestic and international nature. Malta has already picked up some promising start-ups. Gaming is the biggest field due to the country’s reputation as Europe’s iGaming hub, with ex-employees of gaming operators establishing their own companies. Malta has also launched its first technology business incubator, TAKEOFF, which is based at the University of Malta. A similar initiative is the Microsoft Innovation Centre and the Innovation Hub run by Malta’s national IT agency. Concurrently, Malta is witnessing the creation of lobby and networking groups such as the Silicon Valletta network. MIMCOL as a Partner

Maltese start-ups have been successful in raising finance on global crowd-funding platforms, but the initial capital injec-

Malta’s USPs tion remains one of the top Malta’s start-up scene looks hurdles for young companies. promising and full of potential However, start-ups in Malta as it evolves through a mixture can find many helping hands, of public and private initiatives. including the Malta Investment However, Malta needs to find its Management Company “We see ourselves own voice in the choir of start-up Limited (MIMCOL). MIMCOL as facilitators, nations. Research shows that a has recently introduced a Seed easing the life company’s seed capital can last Investment Scheme to help of start-ups and three to five times longer in Malta start-ups raise equity finance. providing support than in the bigger and more expenThe scheme, capped at €5 to entrepreneurs sive start-up hubs. Start-ups with a million, grants tax credits to at their most small budget can also benefit from individual investors resident in, critical time.” less burdensome auditing requireor operating in, Malta investments and a deduction in tax. ing in start-up businesses. Stanley Mifsud Recognising that some prodThe next building block to CEO of the Malta ucts do not scale as quickly as reinforce Malta’s credentials as Investment others, Malta is positioning itself a start-up hub is to attract an Management as a partner for early-stage venInternational Accelerator, and Co. Ltd tures that require time to build MIMCOL is currently establishtraction and revenues. Due to its ing links with foreign accelerasmall size, the island is also an tor programmes to lure a bigideal research and innovation test bed. There hitter to the island. MIMCOL is also looking are numerous areas of opportunity for indusat other initiatives that could be pursued to try players to get involved in, either through bolster Malta’s start-up ecosystem, one of research and development projects or inthem being a dedicated national centre for novative ideas that could help Malta address start-ups. It is also entertaining the idea of some of its very own challenges in sectors so-called start-up exchanges, where incubasuch as energy, transport and health. n tors from different countries cooperate to give entrepreneurs the opportunity to explore markets abroad. Start-ups, which are part of a participating incubator, can benefit from free office space for a certain period of time, as well as from introductions to key players in the local ecosystem.

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MALTA FEATURE

Utility Management

The Digital Utility Opportunity As utilities around the world start adopting a more data-driven approach, Malta is positioning itself as a partner for digital innovators promising new product and management tools.

igital transformation is on the top of Malta’s development agenda, and the utility sector is no exception. The emergence of advanced technologies, and the rise of ‘prosumers’ who both consume and produce energy, are changing the relationship between utilities and their customers. Malta’s utility billing company is proactively thinking about its evolving role, opening up numerous opportunities for forward-thinking IT and tech firms to help them adjust to this new reality.

A New Utility Business Model

While in many countries the utilities sector has historically underinvested in IT, Malta realised early on that it needs to embrace game-changing trends and innovation. The island was one of the first countries that saw the nationwide roll-out of smart meters when it partnered with computing giant IBM to replace old analogue electric metres. The project started in 2009, and in the same year the island’s utility management and billing company ARMS – which is short for Automated Revenue Management Services – was established. The private company is a joint venture between Enemalta PLC, Malta’s main electricity generation and distribution company, and the island’s national water utility, the Water Services Corporation (WSC). Driven by the desire to increase operational efficiencies, ARMS was set up to

mation, which the company can use to improve core systems and processes. ARMS is aware that it can gain a lot more from exchanges of information and partnerships with all kinds of players. The development of new applications, products and “The satisfaction services based on energy rate of our demand and consumption customers patterns can create significant has increased value for both utility compasubstantially in nies and their customers. recent years. We As concepts such as the are constantly Internet of Things and smart trying to improve homes are gaining more tracthe services we tion with customers, utility give and are players are keen on exploring interested in new solutions taking into account Data as Key Asset digital solutions new and future forms of Investment in, and the applicathat can help generation and storage, as tion of, new digital technologies optimise and well as billing and payment. are also changing the way ARMS transform existing In this climate, the Maltese communicates and interacts processes and authorities are promoting the with its customers. Its web business models.” country as an ideal research portal www.smartutilities.com. and innovation test bed, mt allows customers to manage David Magro and its utility management their accounts online, while CEO of ARMS company offers tech entrenew tools are being deployed preneurs a space to develop to cut waiting times and fasten innovative products and tools before service times. The ability to analyse data taking them to the market. n means ARMS has more and better inforhandle the customer care and billing functions on behalf of both corporations. ARMS was also charged with the task of coordinating the transition to smart meters. In common with other big tech projects elsewhere in the world, all has not quite gone to plan and implementation took longer than expected. However, some 90% of Maltese households are today equipped with smart devices that enable ARMS to carry out automated reading and give consumers the ability to monitor their personal usage as well as adjust consumption when waste or inefficiencies are identified.

CountryProfiler MALTA FEATURE

Water & Wastewater

Keeping it Flowing The import and export of innovative ideas and techniques within the water and wastewater industries are among the priorities of Malta’s Water Services Corporation.

ew technologies and fresh thinking are being poured into Malta’s water management sector as population growth and uncertain weather patterns are placing increasing demands on the island’s scarce freshwater resources. The semi-arid climate with minimal rainfall meant Malta had to invest early on in water infrastructure and solutions. Already in the 1600s, the Knights of Malta built aqueducts that transported water by gravity from one village to another. In more modern days, desalination plants became a key part of the puzzle, and the first reverse osmosis (RO) unit was established in 1983. The island is now incorporating solutions to recycle and reuse wastewater, and this is an area that could be expanded in the years ahead. Meanwhile, Malta has developed top-notch expertise in leakage detection and repair, and the island’s engineers are regarded among the best in this field and are winning international contracts.

The Water Services Corporation

Malta’s Water Services Corporation (WSC) was founded in 1992 and is responsible for the complete drinking and waste water cycle in Malta and Gozo. During the past decades, Malta has become increasingly dependent on desalination, and WSC operates three RO plants. They contribute some 60% to Malta’s water supply, with groundwater sources accounting for 40%. Desalination

Reverse Osmosis Plant

is an energy-intensive and expensive technology, and the country has recently invested in new membrane technology to make the process more energy-efficient and more cost-effective. Additionally, Malta has started to use water reclamation to recycle water. Three Sewage Treatment Plants (STPs) are currently operating on the Maltese islands, two of which are in Malta and one is in Gozo. STP plants treat sewage water by removing solids and impurities and produce treated sewage effluent, which meets the requirements of the Urban Wastewater Directive and is therefore safe to dispose into the sea. While this water has traditionally been released into the Mediterranean, Malta is in the process of reaping the benefits of a €22 million investment in three polishing plants. These plants are treating wastewater to so-called ‘NEW water’ for agricultural and industrial purposes. However, this water can also be treated further and be used to replenish Malta’s groundwater sources. It is estimated that more than seven million cubic metres of NEW water could be produced annually.

“We are really making a big push to introduce innovative solutions and sophisticated technology. We have made significant progress in recovering wastewater for agricultural purposes. This water was once considered permanently lost. We believe that collaboration and joint thinking can bring about further change.” Mario Zammit Chairman of the Water Services Corporation

International Projects

The Water Services Corporation has also developed technology that assists in locating and fixing leakages in water distribution systems. The extensive work on the national networks helped curb leakages substantially. The corporation is now exporting this know-how to other countries and was

chosen by the World Bank to carry out a water leakage management project in Lebanon. The project consisted of working on a three-kilometres-zone in Beirut, Lebanon’s capital, by arranging and controlling water pressure, repairing damage and providing a 24-hour water supply. WSC’s monitoring technology could also be replicated for application in other industries, for instance in the oil and gas sector. While hopes are high that many international contracts will follow, including other World Bank projects in North Africa and the Middle East, the island is also aware that it needs to find ways to make more efficient use of water to support its growing economy. Global Water Intelligence has estimated the global water market to be worth US$862 billion. Investors from around the world are now paying more attention to the watertech sector as new companies and start-ups are experimenting and developing new solutions at a rapid pace. Recognising the complex and evolving challenges to its water supply system, Malta is looking to adopt new technologies in partnership with the private sector in a number of areas including water reclamation, water engineering, water safety and water quality. n

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MALTA FEATURE

Real Estate & Development

Booming with Confidence Malta’s construction industry is experiencing a surge of activity as companies and talent relocate to the island. Malta’s biggest problem now is building the infrastructure to welcome all those new arrivals.

Strong economic growth has overtaken infrastructure development in Europe’s smallest country. Housing, factories, business parks, offices, shopping malls, utilities, transport infrastructure, education and healthcare facilities are all on the priority list of projects. The challenge for Malta will be to make all infrastructure updates concurrently, as well as to find the personnel resources to manage these projects given the size and scale of the infrastructure overhaul required.

alta’s real estate and construction industry is buzzing with activity on the back of a booming economy that is built on everything from tourism, financial services and iGaming, manufacturing and a host of new creative industries. The trend of business operations moving to Malta is predicted to continue and even increase following Brexit. Malta now needs to get building to accommodate the needs of the many well-paid and demanding foreign executives who are now choosing to call Malta home. “We are ready to A Changing Skyline

Zaha Hadid and Renzo Piano are just two of the firms that have been putting their architectural stamp on Malta’s skyline in recent years, in turn firing the enthusiasm of the country to create iconic buildings that cater for the needs and reflect the ambitions of modern Malta. Economic analysts are also calling on the government to plan and build for the future. Malta, they say, needs to consider a major infrastructural overhaul.

support innovative ideas that can take Malta’s built environment to the next level, while respecting our centuriesold heritage and environment.”

Johann Buttigieg Executive Chairman of the Planning Authority

Architectural Innovation

The Planning Authority (PA) understands that taking no action and not addressing the infrastructure deficit is not an option. To improve Malta’s infrastructure in quality and functionality, the PA is ready to support innovative initiatives and is encouraging sustainable private/public sector joint ventures to help realise these major projects. The country is seeking to attract companies of international repute that are ready to go beyond the industry standard and apply the newest technologies, innovative techniques and the latest construction methods, without compromis-

ing the island’s heritage and historic fabric. Promoting Malta’s image as a progressive country through its built environment is also aimed at positioning the island as a desirable location for companies to set up operations and attract high-end buyers seeking to purchase property abroad. People from every nationality are relocating into all areas of Malta for business and lifestyle reasons, bringing a multicultural flair and rich cosmopolitan feel to the island. With a tight housing supply, sales prices have increased significantly in recent years, while Malta’s rental market is booming due to an influx of foreigners relocating for work. The island’s rising demand for prime office space, luxury apartments and villas is now attracting the attention of international investors, financers, construction companies, architectural firms and real-estate developers who are all looking to share in the fruits of the country’s economic success. New projects are sure to attract more investment and have the potential to become symbols for Malta’s growing cosmopolitan culture. Scaling Up

Quality of infrastructure is a decisive factor when businesses plan investments. A thorough infrastructural overhaul will place Malta in a better position to compete and challenge other countries for the highest value investment. The sector is poised for significant near-term growth, with private investment set to rise on the back of a bold agenda. n

CountryProfiler MALTA FEATURE

Individual Investor Programme

Redefining Global Mobility Paris, London and New York define cosmopolitan living at its best and are home to the most ethnically diverse populations. While Malta is not as fast-paced as these metropolises, there aren’t many places in the world that make it so easy for foreigners to feel at home. Malta’s international outlook and its fast-growing economy, combined with a lifestyle that comes with the Mediterranean environment, are attracting people from all over the world to work and live on the island. In addition to offering the common routes to residency and citizenship, in Malta foreigners can also take advantage of special residency programmes, as well as a citizenship-by-investment programme.

Interview: Dr. Christian Kälin, Group Chairman of Henley & Partners

a range of social, political, economic and family issues are typically also considered to determine the best jurisdiction in which Can you kindly provide a brief introduction to reside or hold a residence permit. to the concept of investment migration? Increasingly popular, citizenship-byThe purpose of investment migration proinvestment programmes provide a grammes is to enable individuals to acquire mutually beneficial solution for a growing citizenship or residence in another movement of global citizens as country by making an excepwell as governments seeking tional economic contribution. to drive economic growth. Most of the programmes are By offering greater choice, structured to ensure that opportunity, freedom and the investment made by the security to talented and individual contributes to wealthy individuals from the welfare, advancement other countries, governand economic developments secure much-needed ment of the country in which foreign investment and enrich they wish to reside or belong their own citizens by attracting too. The concept of residence people with proven business “Malta’s IIP is the and citizenship planning was success and valuable networks. most exclusive created by Henley & Partners citizenshipin the 1990s. As globalisaWhat makes Malta’s Individual by-investment tion has expanded, residence Investor Programme (IIP) programme in and citizenship have become stand out from others? the world, being topics of significant interest Malta’s IIP is the most exclucapped at 1,800 among the increasing number sive citizenship-by-investment applicants. It of internationally mobile programme in the world, being offers citizenship entrepreneurs and investors. capped at 1,800 applicants. in an EU member It offers citizenship in an EU state that is Investors often have very specific member state that is stable, stable, neutral motivations. Why would highneutral and highly respected. and highly net-worth-individuals choose The application process respected.” to apply for a second passport? includes the world’s strictest Investors and their families are due diligence standards and looking to acquire citizenships vetting of applicants. It is also that can simultaneously provide them with the most successful programme, securbetter security, mobility, quality of life, ing more than €1 billion in new capital education, as well as help them expand for Malta within the first 18 months of their business opportunities. Obtaining operation. Maltese citizenship provides an alternative residence or citizenship is a an individual with the right to live, work significant, very personal and multifaceted and study in any of the 28 EU countries decision for any individual, and is often and Switzerland; visa-free travel to 167 dependent on the country or region from countries, including Canada, the US and which they originate. While this decision Australia; and it is an attractive place to may have a direct impact on the applicant’s live or own a second home, being strategipersonal situation and business interests, cally located with excellent air links.

How do you expect this sector to develop in the next 5 to 10 years?

Compared to a decade ago, there are now many more residence and citizenship-byinvestment programmes available for those who wish to increase their travel freedom as well as business and personal opportunities. Today, it is more common to be educated abroad and to have roots, footings, connections, residences and even citizenship in more than one country. In fact, it is becoming the norm. It was recently reported that most people today move an average of 12 times during their lifetime, and this average is expected to increase in the coming decade. The desire for global mobility, additional security, and a better quality of life is increasingly driving the demand for these investment migration programmes. Investors see these programmes as an ‘insurance policy’ to reduce their exposure to risk, and ensure enhanced stability and security for their families. We expect this sector will continue to grow significantly over the next decade. n

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MALTA FEATURE

The Individual Investor Programme

1. Fabulous all-year round weather

10 reasons why expats enjoy living in Malta

2. Short distances between destinations keep commuting times to a minimum 3. Friendly local population 4. English as official language 5. Low cost of living while all goods are easily available

Malta’s Individual Investor Programme (IIP) is the only citizenship programme in the European Union that has been recognised by the European Commission. To qualify for Maltese citizenship, the main applicant would need to contribute €650,000 to the National Economic and Social Development Fund, purchase property having a minimum value of €350,000 or lease a property for a minimum annual rent of €16,000, in addition to investing €150,000 in government-approved financial instruments. The property and the government bonds have to be held for five years. Applicants are also required to hold a residency card for 12 months prior to becoming a Maltese citizen. Malta is aware that citizenship is a very complex and sensitive matter, and therefore has developed a four-tier due diligence system to ensure that applicants are worthy of Maltese citizenship. It has also capped the IIP to 1,800 successful applicants.

6. Excellent social life for all ages 7. Low crime rate 8. Good medical services 9. English-speaking schools and a respected university 10. A wide variety of property is available in all price ranges

Interview: Stuart MacFeeters, Managing Partner Malta of Henley & Partners

The Benefits of a Second Passport How would you describe the perfect candidate for Malta’s Individual Investor Programme (IIP)?

The typical profile of individuals looking at the IIP would be high-net-worth-individuals and their families – entrepreneurs or investors – who are particularly interested in providing their family and future generations with the right (and choice) to live, work, and study within the EU at any time without notice. Malta would like to attract highly talented and networked people. How are you ensuring that applicants fulfill this requirement, and what type of due diligence process would they need to go complete?

“Each country’s investment migration programme is only as reputable as the last investor to gain entry, so the most important element in any residence or citizenship programme is due diligence.”

In this sector, each country’s investment migration programme is only as reputable as the last investor to gain entry, so the most important element in any residence or citizenship programme is due diligence. The process is different

for every programme worldwide. All prospective clients are first screened by Henley & Partners, and once they have passed our screening, we work closely with them at every stage in the application process, be this for three months or five years. The IIP has a world-leading four-tier due diligence process, designed by Henley & Partners. What would be your message to new applicants and anyone considering economic citizenship?

There has been a sharp increase in the number of wealthy and talented individuals worldwide seeking to acquire a second or third citizenship in order to take advantage of the many business and personal opportunities afforded by having more than one passport. Investment as well as citizenship portfolios need to be diversified to reduce risk, globalise a family’s opportunities and expand business interests in a rapidly changing and uncertain world. n

Application Support

The Identity Malta Agency is responsible for the administration of the IIP. However, potential applicants need to make use of the services of an agency, which is authorised and trained to guide them through the whole application process. Henley & Partners (H&P), the concessionaire for the IIP, is a specialist firm for residence and citizenship planning and is one of the leading firms in this field. H&P was contracted by the Government of Malta to design and implement the IIP in 2014, and H&P Malta has since been advising applicants and processing applications for the programme. A Moving Experience

As an island in the Mediterranean, Malta was always considered to be a safe port for sailors, and that tradition continues to this day. The crime rate is very low providing a secure environment for families. Malta offers a unique lifestyle of unsurpassed quality that combines luxury with comfort. The island also boasts an abundance of high-end properties, ranging from sea-front apartments to exclusive villas with private pools. Anyone seeking to purchase property in connection with the IIP will be spoilt for choice. H&P has a dedicated team of specialist that can assist applicants with all their property needs during their IIP journey.

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MALTA FEATURE

Conference & Incentive Travel

Putting Magic into M.I.C.E. Better than a theme park destination – Malta’s many unique venues and an abundance of attractions will turn any event into an unforgettable experience.

xcellent facilities, year-round good weather and convenient connections to Europe’s major airports make Malta a dream destination for incentive planners and conference organisers: Showcase your brand under medieval vaults, come together at the company’s retreat by the waters’ edge, flaunt your black-tie-look at a gala under the stars, and treat the travelling press to a scuba-diving session. Conventions Malta, a new governmental entity, has adopted an ‘access-all-areas-strategy’, meaning any location can be transformed into a formidable event space. The organisation is also looking into the development of large-scale conference facilities as events are seeing increasingly larger number of participants. The rise of the M.I.C.E. (Meetings, Incentives, Conferences and Exhibitions) sector seems unstoppable. The EU, the Commonwealth, WHO, UNDP, Microsoft, IBM, Bayer, Roche, Cable & Wireless, Cadbury, Sony, Dell Computers, Eriksson, UPS, Opel, Deutsche Telecom and many others have already chosen Malta as their meeting place, and more are actively considering a Malta event.

A Space for every Purpose

Malta boasts an impressive selection of function venues. From the 16th century Mediterranean Conference Centre in Valletta, to magnificent castles, stately houses, and impressive fortifications, adding a historical accent to the function is easy in Malta. For a more contemporary note, available venues include theme parks, village squares, luxury

yachts and exclusive sea-front properties among others. In addition, many four and fivestar hotels, including most international brands, can offer the highest level of accommodation, conference facilities and services to visiting delegates, while special conference centres can accommodate from around 2,000 to over 5,000 delegates. Frequent connections between Malta and all major European cities mean comfort and convenience for the delegates participating in the conference or enjoying an incentive break. Travel times vary from three hours (from London) to just one hour (from Rome). Malta International Airport is located less than 30 minutes away from most hotels. Fully Equipped

hotel ballrooms can be rented for around €2,000 a day, while hotel rates in the off-peak season can be as low as €40 a night. Making M.I.C.E. Memorable “Malta is an ideal location for professional associations and corporate clients alike, providing an authentic historical feel without the need to ‘Disneyfy’. In Malta, there is a space made just for you. You only need to come and discover it.” Edward Zammit Head of Conventions Malta

Conventions Malta offers a variety of services designed to help event organisers. The website www.conventionsmalta.com provides specific information on the 64 certified destination management companies (DMCs), hotels, facilities, service providers and venues, audio visual companies, exhibition stand designers and event organisers. Malta is also excellent value for money. Most smaller venues such as palazzos and

Excellent conference and entertainment facilities, in addition to its glorious Mediterranean climate, make Malta the must-visit destination for thousands of conference delegates every year. With great food, shopping, cultural and musical events, historical sites and sports of all types, all within a few minutes distance of each other, Malta has probably one of the world’s widest ranges of firstclass activities ready to keep convention attendees entertained. When the day is done, delegates can make the most of their stay and discover Malta’s many Mediterranean charms. Events of the Future

Conventions Malta has now set its sights on the future. A new multipurpose venue, which can host larger conferences, exhibitions and concerts, is an option that is being discussed. The island has also plans to expand the required infrastructure to compliment the already strong choice of leisure-centred amenities. While it might take some years until the new infrastructure is ready for use, it will surely consolidate Malta’s name as a preferred destination on the M.I.C.E. map. n

CountryProfiler MALTA FEATURE

Travel & Tourism

Incomparable Malta Old meets new in Malta, where 7,000 years of history and a modern, increasingly trendy, vibe attract record numbers of tourists each year.

ermany’s ‘Die Welt’ recently described Malta’s proximity to Europe means it is Malta as ‘the island of culture’. Listed relatively easy to reach. From most major second in the newspaper’s top places cities such as London, Frankfurt, to visit in 2017, Malta certainly Paris and Rome it takes just two lives up to the hype. The to three hours’ flying time to island’s culture is based on reach Malta International a history that dates back to Airport, the island’s only the dawn of civilisation, has airport. With around 300 been enriched by numerous days of sunshine per year, foreign influences and plays and temperatures rarely dropa large part in the island’s ping below 15 degrees Celsius storied charm. But there is more even in winter, Malta is an ideal to this small island nation than holiday destination year-round. its most apparent associations. The peak holiday season is “Tourism is a Malta is a place for sunrise yoga July to September, however the key sector for and nightly DJ sessions, for milder temperatures of spring Malta, accounting swimming in the crystal-clear and autumn attract tourists for around 30% Mediterranean Sea and visiting keen to explore the island’s rich of our GDP. We megalithic temples, and for history and cultural heritage. are constantly top culinary experiences and Visitors can choose from a investing in our breath-taking country walks. It wide range of accommodation very diverse is hard to think of a destination options. From the global brands tourism product that appeals in equal measures and the most luxurious hotels to to enhance the to backpackers and honeymore economic ones appealing quality of our mooners, foodies and fitness to the budget-conscious traveloffering that we enthusiasts, as well as those ler, Malta has it all. Malta also believe is critical seeking the most luxurious exhas a thriving boutique hotel to our present perience. A mixture of exciting scene. Set in historic palazzos, and future urban renewal initiatives and their classic but contemporary success. We are investment in all-year round look suits everyone from busialso working to leisure facilities have further ness traveller to families. Most appeal to a more upped Malta’s appeal and helped hotels are located in tourist cosmopolitan attract almost two million tourareas such as Sliema, St Julian’s type of tourist and ists in 2016 – a record-high for and St Paul’s Bay. However, one to make Malta the seventh consecutive year. of the best things of compact a destination of Malta is that wherever visitors choice for them.” chose to stay, they will not be A Slice of Paradise far from everywhere else. Anchored in the crystal Dr Edward clear waters of the central Zammit Lewis Mediterranean, the Maltese Explore & Experience Minister for archipelago is situated just 90 Malta prides itself of being all Tourism kilometres south of Sicily and things to all people. It can offer 300 kilometres north of Africa.

action or relaxation, peace and quietness or excitement. For lovers of music, theatre and the arts, there is an extensive cultural calendar. For visitors interested in sports, it offers practically any activity, from golf and tennis, to horse riding and hiking through Malta’s rural landscape. The seas around Malta and Gozo are clean and clear and offer an unlimited variety of water sports. Sailing, snorkelling and windsurfing are superb, and as a scuba diving location Malta ranks among the best in the world. Yachting and sailing holidays are also on offer. Most of the picture-postcard bays are found in the northern region of Malta and the islands of Gozo and Comino, although there is no shortage of natural beauty anywhere on the archipelago. Malta’s vast special interest sector has also inspired many visitors to put the island at the top of their holiday list. Meetings, Incentives, Conferences and Events (M.I.C.E.) tourism has been on a steady growth path in recent years due to the many suitable facilities that are widely available. With some of Malta’s temples being over 7,000 years old and 365 churches – one for each day of the year – Malta is a hotspot for cultural and religious travel. Easter processions and Christmas festivities, as well as the traditional Maltese ‘festas’ complete with fireworks and band marches are a spectacular sight for foreigners to enjoy and participate in. More than Sun & Sea

Malta offers everything that is quintessentially Mediterranean. However, at the same time it has a tad of Berlin’s or Barcelona’s atmosphere, and trendy bars and artsy hangouts are drawing an increasingly younger crowd to holiday on the island. While some might come to learn the English language (on average 75,000 students visit the island per year), others are attracted by a nightlife that takes them from dusk till dawn. Big music events happening in Malta, including Annie Mac’s acclaimed ‘Lost and Found’ in spring and June’s Isle of MTV, have become fixed dates in the European

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MALTA FEATURE

festival calendar. July 2017 will see the first edition of ‘Unite with Tomorrowland Malta’, an offshoot of the world-famous electronic music festival that takes place in Belgium. “We are driving Malta’s cruise forward a strong sector also goes calendar of from strength to events, and there strength. Some are around 250 700,000 passengers main events are expected to visit taking place Malta as part of their throughout the itinerary in 2017. year. You won’t Valletta Cruise Port get lost on Malta – has a long list of it is a small island clients, including – but you might AIDA Cruises, Royal find it difficult to Caribbean Cruise chose what to do.” Lines and MSC Crociere to name but Paul Bugeja a few. The port has CEO of the Malta also built up a strong Tourism Authority relationship with TUI Cruises, which has made Malta its homeport for its Mediterranean cruises. Going forward, the industry seeks to encourage repeat visits from those travellers who only had ‘a taste’ of Malta while on shore. Malta’s rise to the top of the ILGA Rainbow Europe ranking in 2016 is making the country also an increasingly popular destination for LGBTIQ tourism and same sex weddings. Hip and Historic

Malta is proving that hip and historic aren’t opposites. The Malta Tourism Authority has set its sights on further developing the country as a holistic destination, and the industry is upbeat on prospects for the sector in areas such as medical and sports tourism. There is also potential for investment in upscale entertainment venues, gourmet restaurants and high-end shopping facilities. Meanwhile, Malta’s smaller designers are luring tourists with a style of their own, and restaurants with imaginative menus as their main attraction are ensuring that there is always something new to experience. n

City of Culture

Valletta Rediscovered While Valletta has lost none of its century-old charm, these days it feels like an exciting new city.

alletta, surrounded by the sea on three sides, is without a doubt one of the most beautiful capital cities. Often described as a “city built by gentlemen for gentlemen”, Valletta, the 2018 European Capital of Culture, offers a treasure trove of historical and cultural experiences. In spite of all its glory, for many years Valletta has lived in the shadow of Sliema and St. Julian’s, Malta’s main entertainment and shopping districts. Many Maltese also preferred to reside in the surrounding towns and villages due to restrictions on car use in the capital. But all this has changed. Valletta was given a makeover to revive its cultural, social and economic scene and to mark its status as European Capital of Culture. Recent years have seen large areas of Valletta shrouded in scaffolding as its ancient palazzos are converted into boutique hotels, apartments and offices. New bars and restaurants are turning the city into a quirky place at day and at night-time. One of the key initiatives promoted by the Valletta 2018 Foundation was the regeneration of Strait Street, a narrow side road that has now been turned into a lively entertainment spot. Valletta’s restoration project also has prominent partners, including star architect Renzo Piano who designed a new city gate and a parliament building. Valletta is an exciting place to be right now and ideal for a city break. A Living Museum

As an UNESCO World Heritage site, Valletta has no shortage of historical must-see attractions, and it is referred to as a living museum, boasting impressive architecture, churches, galleries, shops, open-air markets and the remarkable St John’s Co-Cathedral. The city is overlooking the majestic Grand Harbour, always full-to-bursting with luxurious superyachts and cruise liners. Valletta also hosts the Manoel Theatre, the country’s oldest theatre, as well as Europe’s third oldest working theatre built back in 1732. Today the Manoel stages everything from contemporary plays to opera and attracts performers from all around the world. Malta also proudly exhibits paintings by the famous artist Caravaggio who fled to Malta in the early 17th century escaping a murder charge in Rome. More to Come

Culture lovers have much to look forward to. There is the desire to restore an old Victorian market site in Valletta, while an exhibition of Pablo Picasso’s work is planned for next year. Malta’s Fine Arts Museum will also be given the importance it deserves when, in 2018, it will be transferred to the historic Auberge d’Italie on Merchants Street. Although Malta put Valletta forward as Capital of Culture, the organisers are committed to making the project a success for all of Malta. Conveniently located within a couple of hours of all main European cities by air, Malta is now inviting visitors to discover the island and its cultural gem, Valletta.

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MALTA FEATURE

Interview: Alan Borg, CEO of Malta International Airport

More than Flying

The first phase of Malta International Airport’s terminal makeover is now well underway, aimed at making travelling in and out of Malta as efficient and comfortable as possible. But that’s not all, the airport has also evolved into one of Malta’s top corporate addresses and an exciting investment programme still lies ahead, says CEO Alan Borg. Malta International Airport’s Masterplan, which includes plans for SkyParks 2

Malta International Airport (MIA) handled a record of 5 million passengers in 2016. What were the main reasons for this strong performance?

a new central screening area, which has double the current footprint and will increase our screening capacity by 50%. We are aware that the The milestone reached in 2016 security process is one of the “As Malta’s only means that the airport gained an biggest pain points for our pasairport, it is our additional 1 million passengers sengers, so we have designed responsibility in just three years – a staggering the space with plenty of natural to invest in a increase of 26% since 2013. The light. On top of this, we will well-designed growth we have been experiencalso be introducing family and Terminal ing is the result of significant fast-track lanes. The current to continue efforts by our team, who work security area will then be cleared to improve closely with the Government to create more circulation space our guests’ and the Malta Tourism Authority at check-in, as well as at least experience. in attracting airlines to choose eight additional check-in desks. Our €28 million Malta, in order to continue to As part of this upgrade, a terminal improve our island’s connecnew La Valette lounge opened expansion plan is tivity and expand our network its doors in March, inviting geared at doing with the rest of the world. We VIP members, business and precisely this.” are projecting further growth first-class passengers, as well this year, and 2017 has already as one-time guests to step into Alan Borg got off to a flying start. First a new level of airport luxury. CEO of Malta quarter results closed with Carefully chosen furnishings International a 22% increase in passenger add a touch of warmth to the Airport movements, and we are looking stylish surroundings, while a forward to welcoming five new panoramic view of the airfield scheduled routes and two new operators gives it a particular airport feel. Visitors to our family of airlines this summer. can now also enjoy the lounge’s unique outdoor terrace, where they can soak up You are currently in the midst of a €28 the sun while waiting for their flight. million terminal expansion project. Can you tell us more about the project and the progress achieved to this date?

Our €28 million terminal expansion plan will ensure that the terminal’s capacity adequately matches our increasing number of passengers while significantly enhancing our guests’ experience. We are first addressing two of the more important areas that are key to the passenger journey: check-in and security. In fact, MIA will shortly be opening

Airports around the world are investing in technology, especially in relation to self-service amenities for passengers. How does MIA respond to these trends?

The installation of queue management systems and instant feedback tablets around the terminal, for instance, allows us to provide real-time solutions to any flagged shortcomings. Future proofing our airport was also fundamental to the development

process of our Terminal Reconfiguration project. A new state-of-the-art baggage handling system is due to be installed early next year, while more self-check-in kiosks and automated boarding card readers will improve our efficiency in terms of passenger throughput. On another level, our recent partnership with global air transport IT specialist, SITA, will enable our ICT Department to focus on better harnessing the potential of emerging technologies and making the best possible use of them in an airport environment. Your investment programme has also seen MIA become a provider of office space, with SkyParks now offering a top corporate address. What is the vision for the next phases as you roll out SkyParks 2 and 3?

In 2016, Skyparks Business Centre celebrated its fourth anniversary, and we are proud of the success this has achieved, housing some of Malta’s biggest brands. We want to continue capitalising on this and develop the area further, notably by exploring the opportunities presented by the growing number of aircraft registration companies. This market needs physical office space to operate, and working from a building just off the terminal can be highly beneficial for these businesses. At the end of the day, investing in our airport’s success is an investment in the country itself, especially considering that the airport campus now supports more than 4,000 jobs. At the moment we are actively working on getting the permits in hand for the development of SkyParks 2, which is envisaged to provide office space for 1,700 employees. What is exciting about this second centre, is that it includes plans for a business hotel which will give us a new edge and benefit both existing and potential customers. n

CountryProfiler MALTA FEATURE

Film

The Mini-Hollywood in the Med 2.

f Malta was a movie star, it would certainly join the leagues of the world’s best actors, those who do not stick to one genre or only a few character themes, but who are able to play many different roles. There are only a few film locations in the world as versatile as Malta; and throughout the past years the island has provided the backdrop for cinema blockbusters, TV series, commercials and music videos. The island’s natural beauty, English-speaking crew and a cash rebate system have attracted directors such as Steven Spielberg, Ridley Scott and Michael Bay. To raise its profile even further, this Mediterranean Mini-Hollywood aims to develop top-notch studio infrastructure as well as fresh financial incentives. Malta is also keen to write itself more into the picture and is inviting script and screenwriters to develop Maltese stories that have the potential to appeal to an international audience. Long Filmography

Malta’s love affair with the film industry dates back to 1925, when the first feature film was shot on the island. To date, almost 150 films have been shot in Malta, either entirely or partially. Among the biggest productions that chose Malta in more recent times were Justin Kurzel’s Assassin’s Creed, Michael Bay’s 13 Hours – The Secret Soldiers of Benghazi, as well as Angelina Jolie’s and Brad Pitt’s By the Sea. Other films shot on the island include Gladiator, The Da Vinci Code, Troy, The Count of Monte Cristo, Munich, Popeye, Captain Philips, and many more. Malta has also become a popular location for the filming of commercials and TV series. Campaigns for companies such as Bacardi, Range-Rover, Coca-Cola and Hugo Boss, as well as sequences for television series such as Game of Thrones and Netflix’ Sense8, have been realised on the island.

3. 5.

1. Assassin’s Creed: © 2015 Twentieth Century Fox Film Corporation. All Rights Reserved. 2. The Malta Film Studios: © Malta Air Photo 3. 13 hours: © 2015 Paramount Pictures. All Rights Reserved. 4. World War Z: © 2013 Paramount Pictures. All Rights Reserved. 5. The Promise: © 2016 Survival Pictures. All Rights Reserved.

Movies shot in Malta move audiences around the world, and the island is looking forward to strengthen relationships between local and foreign filmmakers for both big and small screen productions.

two sound-stages to allow producers to work in a fully controlled environment so that filming can flourish 365 days a year. From Malta to the World Supporting Filmmakers

The MFC is keen to take the film industry to a new level. Asia has been The ability to double-up for identified as a new target market, and multiple locations is one of the “We want to 2017 will see the first major Bollywood country’s greatest selling points. build bridges production shoot on the island. The Over the years the island has with both new government has also been quick to acbeen transformed into ancient and established knowledge the potential of a growing Rome, Marseilles, Tel Aviv, North filmmakers. Film local film industry. One initiative to Africa, the South of France and is one of Malta’s nurture this segment was the launch many other locations. Mother fastest growing of a Co-Production Equity Fund to Nature also plays her role; with economic niches, encourage collaboration between 300 days of sunshine a year, and our ultimate Maltese and foreign companies. To directors can rest assured that aim is to create future-proof the industry, the MFC filming will not be unexpecta sustainable is offering training to those who edly interrupted. The Malta film industry.” wish to work in film. While local and Film Commission (MFC) is the international production compago-to agency for the sector and Engelbert Grech nies can already call upon a wealth offers filmmakers assistance Malta Film of Maltese talent and an army of and guidance. The MFC runs Commissioner enthusiastic extras, there is demand an incentive scheme, which for more crews. The MFC is also back offers up to 27% rebate on costs on the drawing board to sharpen its competirelated to film production. Film is also tive edge and, in particular, to attract more TV being seen as a great tool to promote Malta, productions. Filmmakers can look forward to and its sister island Gozo, across the globe. a new package of production incentives that Productions that portray Malta in a cultural is expected to be launched later this year. n way can benefit from an additional rebate. The Malta Film Studios

Malta is also home to the Malta Film Studios that allow the shooting of water scenes in a controlled environment with an unlimited ocean backdrop. The island is currently developing further film infrastructure. There are plans for the building of one or