Muscat urges financial services industry to be innovative in the face of challenges
Prime minister Joseph Muscat encourages financial services industry to be innovative and nimble to face challenges

Prime Minister Joseph Muscat has urged the financial services industry to out innovation at the heart of its approach to solving problems and facing challenges they encounter in the sector.
Speaking at Finance Malta’s ninth annual conference, themed ‘Malta’s Financial services industry- sustaining growth through innovation,’ Muscat spoke about the importance of the sector to the local economy, and he added that a new approach was necessary to ensure that the local industry remains competitive and relevant in the global context.
“For many countries, financial services have a certain reputation because many don't make a distinction between one country and another,” he said pointing out that it was a legitimate industry regardless of its reputation.
“We have to acknowledge the fact that convincing people of this fact is an uphill struggle at the moment,” Muscat said, adding that regulators ought to be nimble in their approach.
Muscat added that although the country had been in favour of regulation when the economic crisis struck Europe in 2008, the situation had hanged greatly in recent years and regulators ought to pay attention not to move towards over regulations.
“Such an excessive trade regulation as we are tending towards in Europe leads to investment going elsewhere, “ he said adding that international governments and businesses in Europe need to work together to find a solution.
Muscat went on to reiterate his government’s pro business stance and its efforts to promote a stronger economy through strengthening human resources, both through things like tax incentives and through initiatives such as free child care.
“It comes at a cost but it is having a tangible effect,” he said, adding that the government was also looking towards new sectors like the aviation industry to further cement and grow the economy.