What are the results telling us – Malta Attractiveness Survey 2022 Simon Barberi, EY Director, EU Advisory and Malta Attractiveness Programme Lead

What are the results telling us?

Malta Attractiveness Survey 2022

SIMON BARBERI, EY DIRECTOR, EU ADVISORY AND MALTA ATTRACTIVENESS PROGRAMME LEAD

The 18th edition of the Malta Attractiveness Survey (MAS) is based on the feedback gathered from 120 foreign direct investment (FDI) companies operating in Malta. The interviews were carried out just after Malta was removed from the FATF greylist. The MAS results offer an in-depth view of Malta’s attractiveness to foreign investors. It also looks at Malta’s strongest sectors, and identifies those set to accelerate in the near future, whilst understanding what drives these preferences. The results were announced during EY’s annual conference (called Future Realised) which brought together over 1000 participants from across the globe for a series of presentation and workshops.

This year’s MAS report focuses on resilience in a time of disruption and shed light on the effects on Malta’s FDI community of ‘factors like the FATF grey-listing, Covid-19, inflation, and the war in Ukraine. This constant change in our surrounding world captured the growing need for adaptation and flexibility in today’s business environment.

THE MAS HEADLINE RESULTS INCLUDE THE BELOW:

Malta’s attractiveness for FDIs has increased from the 2021 MAS but is still not as high as pre-2020 levels. Corporate taxation (71 percent) remains Malta’s top parameter to attract FDI, followed by the stability of social climate (69 percent), and telecommunications infrastructure (68 percent).

ATTRACTIVENESS INDEX

One-third of surveyed companies believe environmental sustainability is critical for their investment strategies, while half believe it is somewhat important.

Companies are continuing to place greater emphasis on mitigating their impact on the environment. This is being done through environmental responsibility related-projects (71 percent), as well as initiatives that involve the reduction of carbon emissions (which at 53 percent has increased by 10 ppts), and waste reduction (49 percent).

“Companies are continuing to place greater emphasis on mitigating their impact on the environment."

ADOPTING SUSTAINABLE ACTIONS IN FUTURE INVESTMENT PROJECTS

Recruitment actions are on the increase but the skills available locally still fall short as 66 percent reported not being able to find the required specialized skills in the local labour market. In addition, the ability of companies to retain specialized personnel has remained relatively constant.

RETAINING SPECIALISED PERSONNEL

Investors have mixed views on whether Malta is as attractive as other European countries in terms of technology-related factors, with the most important factor for investment being the availability of a technology skilled workforce.

MOST IMPORTANT TECHNOLOGY-RELATED FACTORS WHEN CHOOSING A COUNTRY TO INVEST IN

A majority (69 percent) of companies still believe their long-term future is in Malta, although the these have also been slowly declining over the last few years. Following a decrease in expansion plans during the pandemic (and reflected in the 2021 MAS), investors’ appetite to expand is making a resurgence.

EXPANSION PLANS

Respondents believe that the top priority for Malta to remain globally competitive for FDI is education and skills, followed by ease of doing business and developing new economic sectors.

PRIORITIES TO REMAIN GLOBALLY COMPETITIVE

The insights into Malta’s economic standing offered by the results of the survey are widely regarded by businessmen, politicians, the media, and major public stakeholders as the benchmark into what makes the country attractive for investment on both national and sectoral levels.

The full report can be found on https://www.ey.com/en_mt/events/ malta-future-realised-2022

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