Malta Economy Should Out Perform the European Average
Posted: 13/05/2012 Filed under: Malta News | Tags: economy, EU, GDP Leave a comment »
Though the economic growth of Malta has slowed down when compared to last year, the Maltese economy is still expected to outperform the average in the EU27. This is according to a report from the European Commission for Economic and Financial Affairs which was published late last week.
The data shows that the economy in the European Union is currently in a mild recession and will likely contract by about -0.3% of the GDP by the close of 2012. However, for Malta, that forecast is not exactly true. By the end of 2012, the Maltese economy is expected to grow by 1.2% of the GDP and has a 2.0% increase expected throughout 2013.
Other information from the Commission includes positive forecasts in other areas of the Maltese economy as well. Inflation is expected to remain at about 2.0% through the rest of 2012 which is also lower than the EU average of 2.4%. There is also an expectation of increases in both imports and exports. However, not all of the news is rosy. The Commission is also expecting a slowdown when it comes to tourism for Malta compared to last year and are also expecting employment to slow down to 0.6%. In 2011, the employment rate was 2.4%.
When it comes to the finances of the government more debt is expected for Malta. Though the Commission agrees that the efforts of the government to lower the deficit to 2.6% of the GDP, debt for the island is expected to reach about 74.8% which is an increase of about 2.8% from 2011. According to the Commission, both the debt and deficit outcomes should be a bit higher especially due to the restructuring efforts of Air Malta. Other things that should be having an impact include the financial situation of Enemalta and the renewal of the public service wage agreement.
New Aircraft Company Opening in Malta
Posted: 11/05/2012 Filed under: Business Setup In Malta, Malta News | Tags: aviation, business, Employment Leave a comment »
A company that is based in the Netherlands has announced that they are opening their aircraft “cosmetics” company right here in the Malta Aviation Park. Prime Minister Lawrence Gonzi and Finance Minister Tonio Fenech announced late this week that the company, called “Aviation Cosmetics” was relocating to Malta. The owners of the company, which specialises in aircraft cabin refurbishment and external aircraft painting, have put €22 million into the economy thus far through this relocation. This is certainly something that should be celebrated throughout the Maltese aircraft industry.
Dr. Gonzi was quite pleased with the arrangement and gave a short speech that focused on that. He stated that this was an excellent testimony to the success that Malta hopes to achieve in the aviation industry. He announced that there are currently over 1000 people who are employed by this industry and with this new company coming into the country, even more employment opportunities will become available. He also said that this proves that the country of Malta is attractive to investors and the vision that the government has worked so hard to achieve is beginning to take shape. There have been 130 projects approved in the past 4 years that have the potential to create a further 3400 jobs.
Finance Minister Tonio Fenech said that this announcement has injected new life into the economy and the aviation industry will certainly benefit from this. This announcement, according to Mr. Fenech, has allowed the government to achieve a short term goal and given a long term potential. He went on to say that this company’s decision to expand into Malta would help it to expand its market away from Europe. Malta is an ideal place to start this with its access to northern Africa and the Middle East.
IMF Positive about the Growth of Malta
Posted: 10/05/2012 Filed under: Malta News, Malta Taxation | Tags: budget, IMF, Taxation Leave a comment »
Finance Minister Tonio Fenech delivered a speech this week on the Budget Measures Implementation Bill and closed with news of the latest report from the International Monetary Fund (IMF). Mr. Fenech says that the IMF has called Malta’s plans for the future and the effort the country is putting out to reach financial stability is “impressive”.
The IMF publishes information monthly and its 1 May publication reported Malta as being one of the 6 countries in the developed world that had increased its employment rate throughout the month of April. After announcing this information, Mr. Fenech said that this progress is proof that the Maltese government has made up a budget that is focused on stability and economic growth. This budget is one that offers incentives to industry as well as to the tourism industries, something that are both important to the Maltese economy. Additionally, there are tax reduction schemes for working parents and to parents who are sending their children to private nurseries and schools. The government has also increased its benefits to the elderly which is important to the middle class.
Mr. Fenech also announced that the Maltese national debt was standing at 72% of the GDP when using the EU methodology. This does not include guaranteed debts of independent organisations of the books. He stated that if the opposition party was governing, it would have included austerity measures based on the pretext that debts were not officially announced.
The speech continued by Mr. Fenech stating that the reason for uncertainty for investors was due to the change in government and not the way the parliamentary vote was taken like many believe. He backed that up by saying investors knew that the party was supportive of the business but they were not sure about the stand of the opposition.
More Maltese Women are Finding Jobs Than in Previous Years
Posted: 08/05/2012 Filed under: Malta News | Tags: Employment, EU, unemployed Leave a comment »
The number of Maltese women who are now employed outside of the home has risen 1% over last year to 8.2% according to a study that was done out of Brussels. It is thought that the main reason for this increase is that more women are taking advantage of incentives given by the government by entering the labour market. However, since more women are going into the workforce, short term, this could have an effect on unemployment. Malta has held on to relatively good unemployment numbers throughout the crisis, but since more women are entering the work force, more are counting when it comes to unemployment numbers which could raise them slightly.
Looking back to figures from 2005 and 2006, the rate of women in Malta who are in the work force shot up by about 6.7% and by 2010, about 41.6% of the women in Malta were employed. As more women study at university, which is what statistics show, this number will continue to rise. In fact, more companies throughout Malta are offering family friendly employment options and offering more flexible hours for Maltese working mothers. This also helps to bring more women into the work force.
When looking at unemployment overall, March numbers show an unemployment rate of 6.8% which is the same as February 2012 but up from March 2011 when it stood at 6.3%. Compared to the Eurozone, however, whose unemployment numbers are sitting at 10.9%, Malta is doing quite well. Malta has the fifth best unemployment figures overall and is behind Austria, the Netherlands, Luxembourg and Germany. Greece and Spain are still showing the worst numbers at 21.7% and 24.1% consecutively. These numbers indicate that about 24.7 million men and women in the EU are currently unemployed and when compared to 2011, 2.1 million more were unemployed.
Maltese Ship Detained in Libya Could Cause Diplomatic Troubles
Posted: 07/05/2012 Filed under: Malta News | Tags: Libya, maritime, Trade Leave a comment »
Maltese Foreign Minister Tonio Borg is in Libya this week to discuss a Maltese ship that has been detained in a Tripoli harbour. The ship, called Azzurra, has been in the harbour for almost 2 weeks now and has been held due to claims of a Libyan businessman that the ship contained illegal contraband. However, according to Libyan authorities, nothing illegal has been found on the ship. Maltese officials, like Foreign Minister Borg, say they understand why the ship was investigated, but do not feel there is any reason to hold the ship for that long when nothing has been found. This incident could push back the efforts that have been going on by Malta to build a stronger foreign relationship with Libya.
Three Maltese crew members were cleared to return to Malta last week. Jalal Husni Bey, the Libyan businessman who has made the claims, sent letters to several high ranking government officials in Libya on March 28th, 2012. It the letters, he claims that the ship, Azzurra, was being used to smuggle goods in and out of the country of Libya.
The Maltese shipping agent, who has asked the media not to identify him, states that all of the cargo on the ship has been documented and during inspection nothing of interest was found. That inspection took place almost 2 weeks ago, yet the ship has still not been cleared to return to Malta. Because of this, the Maltese government has become involved in the situation. Jalal Husni Bey continues to state that these ships from Malta are carrying goods, like food, that is not fit for human consumption and cars that are driving around Tripoli, distributing unregistered Maltese goods to Libyan people. It is thought that Mr. Bey is only making these allegations because he doesn’t like competition.
Malta Employers’ Association Asks Government to Support Service Industry
Posted: 06/05/2012 Filed under: Malta News, Working In Malta | Tags: charter, Government, working conditions Leave a comment »
A service charter is currently being prepared by the Malta Employers Association that would encourage ethical practices when it comes to employment in the security, cleaning and care workers’ sectors of the economy. Companies who operate in these sectors will be asked by the Malta Employers Association to voluntarily sign the service charter. This would allow them to commit their businesses to bring their strategies and operations in line with the practices laid out in the service charter. This behaviour would respect the legal obligations that the country has in place and would also allow employers to operate in ethical ways.
The Malta Employers Association believes that this service charter will be able to show the Maltese government the difference between those companies who are operating at ethical levels and those who are not. Responsible employers will sign the service charter willingly, but those who advertise excellent working conditions but don’t actually have them will hesitate to sign. All companies who sign the service charter would be required to go through inspections to ensure they are holding up the values of the charter and to make sure that they are staying within the laws.
The association is asking the Maltese government to support the petition by assigning a preferential weighting to the charter. This would allow companies who sign up to receive benefits from the Maltese government as well as be a part of this exclusive group. It is hoped that these initiatives would encourage companies to sign the charter. For the companies who do not offer good working conditions and are not working within legal regulations, it is hoped that they will literally clean up their acts and bring their companies in line with the law.
Though none of this is yet set in stone, the framework is being built right now.
Maltese Financial Sector is Experiencing Continued Growth
Posted: 05/05/2012 Filed under: Business Setup In Malta, Malta News | Tags: banking, economy, finance Leave a comment »
According to FinanceMalta, the partnership that has been set up to promote Malta’s financial sector, Malta is well on its way to becoming a secure location in Europe for financial entities like fund managers, to make flexible arrangements for their operations. Malta joins the likes of Luxemburg, Geneva, Zug and Dublin who already carry this promising distinction.
Malta is currently showing growth in five separate areas of the financial sector. They are insurance, trust funds, banking, wealth management and investments. Each of these parts of the financial sector has shown solid growth throughout 2011 and is forecasted to continue this growth in 2012. FinanceMalta has been paramount in bringing the sector into this position and is currently in line with the Maltese government’s vision of where the industry should be.
FinanceMalta claims that the country is definitely establishing itself as a dynamic, effective and English speaking location in Europe that is in a great position to make an impact on the world’s financial sector. In the recent Global Financial Centres Index (GFCI) survey, the cities that are showing weak financial growth are continuing to slide downwards. Some of these include Athens, Milan, Madrid and Lisbon. Other cities that are showing financial potential, like those mentioned above, are slowly but surely showing growth.
Some of the things that go into the GFCI survey include transportation costs, office infrastructure and the opinions of financial professionals throughout the EU. There are also more volatile factors that are taken into consideration like the rise and fall of the Euro and the continuing effect of the European debt crisis.
FinanceMalta announced that the GFCI survey has listed Malta as one of the top 10 off shore centres for finance which opens up Malta for more competition in the EU. This could bring positive changes to the financial sector of the economy.
Eurozone Unemployment Rises Again, But Malta Holds On
Posted: 04/05/2012 Filed under: Malta News | Tags: economy, EU, unemployment Leave a comment »
Unemployment in the Eurozone has hit a record high in March according to the latest reports. Generally it is thought that this is due to spending cuts. When looking at the entire Eurozone, unemployment rose to 10.9% which is the highest since the Euro was introduced in 1999. Compared to March of 2011, when many people believed that the economy was at its worst, it was 9.9%. Looking at the 27 EU members, unemployment in March 2012 was not much better sitting at 10.2%. In March of 2011, the EU27 had an unemployment rate of 9.4%.
Malta is sitting as the sixth lowest when it comes to the Eurozone and for March, 2012, registered an unemployment rate of 6.8%. The lowest unemployment rate for March came from Austria where unemployment is at a very normal 4.0%. Other countries that are registering low unemployment numbers include the Netherlands at 5.0%, Luxembourg at 5.2% and Germany at 5.6%. The highest unemployment rate in Europe is Spain with a stunning 24.1% unemployment. Greece is not far behind at 21.7%.
When comparing numbers to 2011, eight members of the EU had unemployment rates that fell, which is promising, however 19 members of the EU had unemployment rates that rose. The largest increases from March, 2011 to March 2012 were Greece with an increase of 4.2%, Spain with an increase of 3.3% and Cyprus with an increase of 3.1%. Even countries that traditionally do well in the EU, like Italy, are seeing the highest unemployment rates in years. Italy has an unemployment rate of 9.8%, the highest since 1999. Italy, along with Spain, has already announced that they are back in a recession, known as a “double dip” to many economists.
Malta is still holding on to a relatively good economy and unemployment rate, but as noted by other countries in the area, this could quickly disappear.
Malta’s Relationship with Libya Could be Beneficial to the US
Posted: 03/05/2012 Filed under: Business Setup In Malta, Malta News | Tags: America, economy, Libya Leave a comment »
The long standing relationship that Malta has with Libya could be a great opportunity for American businesses according to Lorraine Harriton, US State Department Special Representative for Business. Harriton was visiting Malta in order to hold meetings with Maltese business leaders about collaborating and supporting American businesses in Malta. She said that due to the long standing relationship between Malta and Libya, American companies could easily work with both countries. This relationship would be a boost to the American, Maltese and Libyan economies. By using the strong relationship between the US and Malta, the US would be able to pick up more opportunities in Libya as well.
According to Harriton, the US is extremely grateful to Malta for all of the assistance that was given during the Libyan conflict and she said because of this, more American businesses became acquainted with Malta. American companies are becoming extremely interested in business opportunities in both Malta and Libya which would be positive for all through countries.
Harriton’s visit to Malta was part of a programme that the American business community is trying to get started. Gene Cretz, who is the US ambassador to Libya has also been involved in the programme. The focus for the US in Libya and Malta would be to bring companies like GE and Dow Chemicals into these countries. According to Harriton, aside from these energy companies, there may be plans to include other economic sectors as well. As an example, she mentioned the problems that Libya has with infrastructure. She said that many US companies are extremely interested in coming into the country and working on building roads, new buildings and making sure that everyone has water and electricity. After that, the plan would be to work on IT, telecommunication, tourism and retail. Harriton said that the US economy is growing and now is a wonderful time for all three countries to start a dialogue.
Maltese Tourism Niche Expected to Surge
Posted: 30/04/2012 Filed under: Living in Malta, Malta News | Tags: economy, Rock Climbing, Tourism Leave a comment »
Maltese tourism is always a hot topic when considering that it is one of the largest sectors in the Maltese economy. Though tourism itself is doing quite well, tourism niches, like climbing, are really starting to take off. After a visit from two of the world’s most well known climbers, more are expected to follow which could really help the economy.
The island has great potential to really catch the eyes of the climbing community after climbers Sonnie Trotter and Tommy Caldwell chose the area around Gozo to explore potential climbing areas. Corey Rich, a world famous photographer accompanied Trotter and Caldwell to Malta in order to photograph the climbers. The shots that were taken will be used in promotional material that will be focused on climbers throughout the world.
The excitement is really flowing through the climbing community here at home too since Malta has never really been noticed on the world scene before. However, now that Trotter and Caldwell have chosen Malta as a destination, more are sure to follow. Andrew Warrington of the Maltese Rock Climbing Club said that Trotter and Caldwell chose Malta on their own, which is a great testament to the wonderful climbing areas that the country has.
Warrington continued on by saying from 2005 to 2011, climbers coming to Malta rose by about 50%. In 2011, there were about 25 people per week coming into Malta solely for rock climbing. Once news this that Trotter and Caldwell chose Malta as a climbing destination, about 50 people have contacted Warrington about climbing opportunities which is phenomenal.
During their stay in Malta, these professional climbers discovered six new climbing routes around Gozo and after making four climbs, are planning to return to do the other two. They will also be exploring the area for more possible climbs.
