Malta’s attractiveness slips, EY survey finds

Attractiveness of the political, legal and regulatory environment has slipped among investors, the EY annual attractiveness survey has found.

Even so stability of Malta’s social climate remains an attraction for foreign investors.

The findings of the survey were presented this morning at the EY conference at the Intercontinental Hotel. The glitzy event, which attracts business people, politicians and community leaders, is overshadowed by Daphne Caruana Galizia’s murder.

Prime Minister Joseph Muscat and Opposition leader Adrian Delia both referred to the murder in their address to the conference.

Malta’s most attractive foreign direct investment parameters are its corporate taxation, the stability of the social climate and the telecommunications infrastructure.

On the flipside, the areas for improvement highlighted by business leaders are the flexibility of labour legislation, transport and logistics and fostering an environment of innovation.

The skills gap is another challenge highlighted by business leaders at a time when the country is running at full employment that is forcing companies to look beyond Malta’s shores for workers.

Only 38% of investors are managing to find the required skills and while Malta has been investing in education and training it had to do more to educate workers for a digital economy.

Technology is eliminating existing jobs but simultaneously creating new opportunities that require new skills, conference delegates heard.

Half of respondents believe the legislative framework is internationally competitive and Malta is keeping pace with competing jurisdictions.

A majority said that Brexit did not have an affect on their business but the economic and political instability in the EU was seen as a major concern.

The survey also shows that online gaming is likely to continue to be a leading sector in the next five years.

NUMBERS AT A GLANCE

Current attractiveness: 78%

Future attractiveness: 54%

Malta's most attractive FDI parameters

Corporate taxation: 88%

Stability of social climate: 82%

Telecommunications infrastructure: 73%

Malta's areas for improvement

Flexibility of laboUr legislation: 49%

Transport and logistics infrastructure: 32%

R&D and innovation environment: 29%