Lawrence Farrugia

The rate of progress in Malta's manufacturing industry is evidenced by a 40 percent increase in the industrial labor force and by a ten-fold increase in the export of manufactured goods over a period of 15 years.

Well-planned preparations and intensive development programs have been the major formula contributing to the achievement of this objective. Basically, these programs have incorporated a strengthening of all the major sectors of the economy: a rapid build-up in Malta's foreign currency, improvements in financial institutions, establishment of new investment banks, a redrawing of the infrastructural base, the setting up of an efficient telecommunications network, and a far-reaching sea and air transport system. In the political field, Malta's association agreement with the Common Market has been revised periodically and relations with the Arab World have improved consistently over the past 15 years; these relations are excellent.

Once these targets were attained, Malta was ready economically to offer excellent investment incentives to interested industrialists. The result so far has been very successful, as we have had investors coming from all over Europe to set up their manufacturing branches in Malta, some of these in participation with local businessmen. Most have come from West Germany; however, the biggest single industry in Malta happens to be American-owned. Considering the circumstances, most of the initial investment promotion efforts have been concentrated on European firms. However, our recent plans have been to diversify our industrial base, and our next goal is the United States. We are well aware that this new task demands further incentives, so in addition to the existing ones, which have already benefited the Europeans, we have introduced others to enhance the marketability of those U.S. goods manufactured in Malta. It could therefore be stated that the competitiveness of our costs and the easy access of our products to the EC and to North African markets are not the only incentives offered to U.S. investors; now, there are also secured markets for a variety of their products. In order to make U.S. businessmen more conscious of this opportunity, the Malta Development Corporation has aggressively embarked upon a program involving exchange of visits by its members to the United States and by U.S. officials to Malta. These visits have helped prove to American businessmenand government officials that American opportunities in Malta are numerous and promising--as is verified by the many favorable reports submitted by the U.S. side.

Consequently, the urgent need to expand on these activities has been answered by the establishment of a Maltese-American Business Council. It is worth noting that at this early stage this Council has already stirred interest in Malta among a number of U.S. investors.

I should add that when a U.S. entrepreneur schedules a business trip to Malta, we usually try to facilitate his stay in our country by preparing for him a full program which includes meetings with Maltese officials, local businessmen and bankers, in addition to on-site visits to operating factories and industrial estates. Minor arrangements such as hotel reservations are also taken care of, and in order to make the visit pleasant as well as productive, local transport is also provided from arrival until departure.

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