Robert Abela wants Malta to outperform Europe in the digital and green transitions

Malta needs to shift focus from outperforming Europe in economic growth to outperforming the continent in the digital and green transitions, Robert Abela told business leaders.

The Prime Minister said Malta’s future success requires the country to move forward “very decisively” on these two front.

Abela was addressing business leaders and industry stakeholders at the annual EY Future Realised conference held on Wednesday.

A highlight of the conference is EY’s Attractiveness Survey, which gauges feedback from foreign direct investment companies and provides an overview of the island’s investment climate.

Delivering a keynote address, Abela said Malta’s GDP per capita is now 5% higher than the EU average. A decade earlier it stood at 13% below average, he said.

But he also cautioned that with full employment and GDP convergence achieved, Malta must now “shift gear”.

Abela identified three major changes his administration will be focusing on over the coming years: An investment promotion strategy that focusses on attracting higher value-added projects; an employment policy that focusses on creating competencies rather than just jobs; and accelerating the digital and green transitions.

“Instead of looking at how much a project will create jobs and maximising the number of projects approved, our agencies will focus on the types of jobs created and on the value-added properties of a project,” Abela said.

Government support, he added, needs to target training, promote lifelong learning and education beyond formal education.

“The thousands of persons who have joined our workforce need to acquire the skills required for our country to be a digital and green leader,” Abela said.

Turning to investors, the Prime Minister said companies had to be at the forefront of the new sectors that are evolving. “Our firms need to be early adapters of new technologies,” he noted.

The Prime Minister acknowledged the plan to transform the Maltese economy was a “tall order”, especially because “many other countries at present have a clear advantage over us”.

However, Abela also expressed hope that Malta can achieve its targets based on past experience.

“In 2012 Germany had an employment rate a fifth higher than Malta. Last year our employment rate was higher than Germany’s. Implementing the right policies can achieve much,” he said.

Abela said Cabinet will be going over several important strategy documents over the next months.

“My ministers have spent this summer working on reviews of our investment promotion strategy, plans to improve the quality of tourism, short-term measures to tackle traffic problems and a new economic migration policy,” he said.

Abela said three recent policy decisions gave an indication of the changes government will push ahead with.

“The first results of the new tourism skills pass indicate that as many as half of potential employees in the sector are not making the grade,” he said, making a pitch for quality tourism.

The minimum requirements for buildings to improve their energy performance introduced in July will require construction firms to adopt very different working methods, he added.

“Significant progress has been made on the studies that will set out where we will be inviting international offers for offshore windfarms,” Abela said, rounding off his list of examples.

The upcoming Budget discussions will provide ample space for government to lay out its new strategic direction, he added.

Abela said the process that will define Malta’s Vision for 2050 would lead to a vision that “goes far beyond” economic growth.

“Malta Vision 2050 will chart the country’s strategic path for the coming decades, taking a holistic approach that focuses on improving the quality of life for all,” he said, adding, “it will be bold, comprehensive, and forward-looking, addressing the challenges and opportunities of our time.”

Abela said government’s vision was for a “resilient, innovative Malta”.