Issue link: https://maltatoday.uberflip.com/i/1244430
07.05.2020 8 OPINION G lobally, cannabis has undergone a normalising process given its wide adoption, social tolerance and generally speaking a broader cultural acceptance; going from being branded as a gateway drug to being used as a thera- peutic alternative to conventional medi- cine. e legalisation promulgated for med- ical cannabis represents a golden oppor- tunity for licensed producers seeking to position themselves at the forefront of this emerging landscape. In fact, the legal cannabis industry is attracting more and more investors to Malta. ese want to diversify their portfolios since this industry is consid- ered one of the most promising indus- tries. Many countries are now realising the potential of this growing industry and have moved to legalise cannabis for medical use. Uruguay was the first country in the world to legalise canna- bis, followed by Canada in 2018 and eight US states have authorised recrea- tional cannabis. Looking at the European context, can- nabis production has been decriminal- ised in countries such as Spain, Germany, Belgium, Netherlands, Italy, Switzerland, Portugal and Czech Republic. In line with findings that people are more like- ly to maintain or increase consumption in the coming months, there have been numerous reports from North America and Europe that consumers have been bulk-buying cannabis from dispensaries, leading to record-breaking sales. Gov- ernments in regions like Quebec, Illinois and the Netherlands will keep cannabis stores open despite regional lockdown measures. is is intended to maintain supply of medications to patients. Some revenue may yet be lost due to incidence of lock- down factors such as disrupted supply chains, shop closures, restricted move- ment and general economic slowdown. However, this temporary setback may also prove an important time of inno- vation, planning and strategising for cannabis companies, the fruits of which will outlast the pandemic distinction must be drawn between recreational and medical use, as well as the legal and regulatory issues underpinning both is- sues. Smoking cannabis should not be rec- ommended by any medical profession- al. Nevertheless, trained medical pro- fessionals may reasonably consider the use of cannabis-based medicines - such as oils, capsules or vaporised substanc- es - for chronic neuropathic pain and stress relief. Given the ever-expanding medicinal capabilities of cannabis, Malta has fol- lowed suite pioneering countries such as Canada, and in March 2018we offi- cially legalised the production and use of medicinal cannabis. e Maltese Parliament has approved the "Produc- tion of Cannabis for Medicinal Use Act", which is an all-encompassing Act regulating which entities are eligible to distribute and produce cannabis under strict supervision. e new law also allows all registered doctors to prescribe medical cannabis to patients, which can be acquired in local pharmacies. In order to produce cannabis, entities must first obtain a let- ter of intent from the Malta Enterprise and also a license from the regulatory authority. Such legislation gives our country an edge over other countries, as some countries still do not allow for the production and supply of medical cannabis. For example, the use of medical can- nabis is allowed in Germany, yet it is still in the first stage of granting its first licences and thus first harvest is only expected in 2020. On the other hand, Malta Enterprise has already approved an area measuring 4,000 in square me- tres for cannabis cultivation. Security systems must be in order to prevent unauthorised movement of cannabis material and only authorised personnel may be allowed to access specific designated areas. Waste mate- rial must not be treated with negligence and has to stored in a lockable contain- er. e production and use of medicinal cannabis may provide a new found re- lief to people afflicted by illnesses, yet it also introduces a vast array of economic opportunities and positive spill over ef- fects. Naturally, cultivation requires a size- able amount of professional staff to allow a smooth and orderly process. An increase in the number of compa- nies operating from Malta to cultivate cannabis transpires into additional tax revenue for Government, besides in- creasing the amount of research and development. Cannabis production in Malta is also expected over the next five years to in- crease the amount of exports, resulting in an injection of funds into our local economy. All of these factors are expected to contribute to a continued increase to our country's economic growth. is is particularly important as the latest forecast issued by the European Com- mission indicates that whilst the growth momentum for the Maltese economy is expected to be badly hit by the pandem- ic. e GDP growth is forecasted to drop this year to 3.1% or less. Total debt to service payroll subsidies for idle work- ers will possibly peak in the region of €8 billion. However, the net impact on the amount of jobs lost and reduced eco- nomic output created by the pandemic remains to be seen. Another social aspect remains in place: the issue concerning the lack of information on the use of medic- inal cannabis. Locally, patients often comment on the limited knowledge by medical practitioners, particularly as medical practitioners are sometimes re- luctant to prescribe cannabis as a form of treatment. Apart from this, the price for medici- nal cannabis is quite costly for patients. Some patients have shown their dismay after discovering that some variants costs as much as €17 a gram, giving rise to a number of concerns regarding the affordability of this medicine by the general public. Whilst progress by the Government has been made in this arena, the af- fordability issues of this effective med- icine by the general public must not be underestimated. It is worth exploring, the possibility of offering this medicine to deserving patients at a subsidised price. Furthermore, one cannot sepa- rate the use of cannabis from its long history as an illegal substance, which is very often abused of. Stigmatisation of the use of this drug is a strong deterrent for many healthcare providers and uncertainty will only slow down the use of medicinal cannabis. In- deed, the perception of the public needs to be better informed, with perhaps the introduction of frank discussions about the use of cannabis. In addition, continuous educational programmes for medical practitioners are also a must, in order to remove the general stigma concerning its use. e opportunities for using cannabis go be- yond medical reasons. e beauty industry is also jumping on the bandwagon, and at the moment Cannabidiol (CBD) is one of the most buzzed words one will find in the beau- ty spectrum. In fact, CBD oil is being used in a number of high-end creams, oils and even make-up products. Given this, the cultivation of cannabis in Malta provides an added opportunity for production to expand its use of oil by the beauty industry, thus enhancing the range of exports generated by the same industry. Medical cannabis taking the rhino by the horns George Mangion George Mangion is a senior partner of an audit and consultancy firm, and has over 25 years experience in accounting, taxation, financial and consultancy services. His efforts have seen PKF being instrumental in establishing many companies in Malta and ensured PKF become one of the foremost professional financial service providers on the Island