Lord Mandelson’s word of advice for Malta: ‘reputation is key’

A country’s reputation is the key component to attracting foreign direct investment, Lord Peter Mandelson told a hall of politicians and businesspersons gathered at the Westin Dragonara.

Mandelson – former EU Commissioner and trusted adviser to former UK Prime Minister Tony Blair – is in Malta for the launch of the 11th edition of the EY attractiveness survey.

Delivering his thoughts on how Malta is and can be more ‘open to business’, Mandelson said that high value services were the main drive to economic growth.

“The obvious areas are technology and software service and the European Commission’s digital market proposal will be very important. It is here that Malta has important role to play, with its high-value entrepreneurs and well-spoken English,” Mandelson said.

While talking about opportunities beyond Europe – citing as an example China’s maritime silk road – the former UK deputy prime minister pointed to how Malta could continue growing as Europe tries to seek its new direction for growth.

The exposure to international competition, he said, meant that Malta should have an important voice as financial services will play an important role in Europe’s recovery.

The EU’s plans for the energy sector, through projects of common interest initiatives, can help improve the resilience of  Malta’s energy supply. “As the Paris summit on climate change draws closer, I trust Brussels will continue to support Malta’s decision to switch from polluting heavy fuel oil to gas,” he said.

Mandelson noted that international negotiations with China were very important for countries like Malta, although there was more to Asia than China.

“But it wouldn’t make sense for Malta to ignore the opportunities opening up through China’s maritime silk road,” he said.

Mandelson is ‘less suspicious’ of Chinese investment than most. In reply to a question from the audience, he said he didn’t see any political implications with China investing in Europe.

During his term as European Commissioner, Mandelson “wrestled and negotiated” with China.

“They are difficult, pushy, demanding, ego-centric … and yes, nice,” he said to an amused crowd.

“They mean business and they are very focused on what they need and want. Don’t let them get away with the idea that we need them more than they need us. We [UK] welcome Chinese investment but you also have to think why they need to do it properly with us. They need to access other markets but can’t do that if they fail or are inefficient in Europe.

“Keep your eyes wide open, be competitive, don’t be bullied and read the small print.”

The Guardian last month revealed a policy paper by Mandelson, which made it abundantly clear how he felt about Labour’s new leader, Jeremy Corbyn. He thinks that Labour “cannot be elected” with Corbyn at the helm.

Mandelson told the Maltese conference that voters were looking “to more radical and populist parties on the fringes” because solid leadership injecting confidence was lacking.

“The UK is not completely immune to this turbulence across Europe,” he said, adding that Corbyn was elected to lead Labour.

“Well, he didn’t have my vote,” Mandelson said, expressing “concern” that Corbyn would steer a course far away “from the successful, modernization common sense type of approach adopted by Labour here in Malta”.

“We may well be spending more time in Malta in the coming years,” he quipped.

Muscat later joked that “he hadn’t yet received Mandelson’s asylum application” after Corbyn took over.

The launch of this year’s EY attractiveness survey – ‘Malta: Open for Business’ – has once again attracted a number of politicians, civil servants, businessmen and other stakeholders.

Main speakers include the leaders of the government and Opposition, former prime minister of the Netherlands Jan Peter Balkenende and Paul Brody, America’s strategy leader at EY.