Issue link: https://maltatoday.uberflip.com/i/1245222
13 maltatoday | SUNDAY • 10 MAY 2020 OPINION THE answer is a resounding yes, and the digital economy is prob- ably the best path to achieve this. Economics is the art of reach- ing an equilibrium to generate the best outcomes out of com- peting pressures fighting for limited resources. The Maltese economy survives and thrives by offering value to global business in a manner which meets the expectations and as- pirations of its population. How does the balance sheet of the Maltese economy look to international business and investment decision-makers? On the assets side, a stable democracy within the EU and eurozone, boasting an enviable macroeconomic track record and international credit rat- ings, strategically located on at the Mediterranean crossroad, with the idyllic island aura at- tracting international visitors, also thanks to a strong back- bone of physical and digital connectivity. On the liabili- ties side, Malta's size and pe- ripherality inevitably limit the range of business that may be productively undertaken, while the country is heavily engaged in meeting global require- ments with respect to com- batting money laundering and financial crime. Crucially, in an increasingly globalised world, Malta faces stiff competition for international business from similar jurisdictions with lo- cations as diverse as Northern Ireland to Singapore, Cyprus to New Zealand. What does the resident pop- ulation demand of its econo- my? More and better paid jobs remain an obvious priority, nowadays flanked by equally important considerations af- fecting well-being including environmental and resource sustainability, the liveability of urban spaces, the ability to manage one's time more effec- tively, and the inclusion in so- cial and political decision-mak- ing processes, to mention but a few. With the hindsight of the experience of the COVID situ- ation over the past few weeks, one would easily add the ro- bustness of the national health system and the resilience of business activities underpin- ning jobs to this wish-list. The digital economy is an ob- vious vocation for Malta. It is the smart strategic fit that can and indeed already is balanc- ing the need to sustain an in- ternationally competitive and relevant small island economy in the global landscape with the aspirations of an upcoming and modern Maltese society that yearns for the fundamen- tal characteristics that have traditionally upheld the quality of life on our islands. The promise of the digi- tal economy comes from the very definition of the term. It is about the fundamental economic functions of work- ing, producing, consuming, saving and investing, but in a setup that is intensively or hyper-connected and which makes use of sensor technolo- gies. This will allow us to con- tinue doing what we are doing in better ways, and achieve more with less, making far bet- ter use of our time and living spaces. The specific opportunities for Malta are obvious. The problems of small economic size and insularity have little relevance in the digital space. While production would take place in locations close to re- sources or final markets, its management and global coor- dination can take place from Malta, generating value add- ed and high-quality jobs in our economy. Digital working and commerce can go a long way to address traffic conges- tion problems on our islands, giving us much-needed time to manage as we best please, and space to enjoy commu- nally. Data and information will be key to better manage our environment and resourc- es. Tourism experiences can be enhanced through virtual and augmented experiences, attracting higher-spending niches. Digital investments are key to managing informa- tion and building more robust regulatory platform to ensure the stability and security of our financial services industry and other key sectors such as remote gaming, steering away from high-risk activities which the digital economy can en- able but which are not suited to the reputation of the coun- try. The digital economy is in itself a sector of activity cre- ating high-quality jobs, whose output permeates all other di- mensions of the economy and society bringing enhancements across the board. The reaping of the dividends from the digital economy is not automatic. It requires a concerted effort from social and civil stakeholders. Gov- ernment needs to be at the pinnacle of these efforts to secure sufficient investment in human and physical capital required to achieved the digital transformation, and mobilise the involvement especially of those sectors which are less amenable to innovation, but most likely to benefit from it. Gordon Cordina Can competitiveness fit with an improved quality of life in Malta? Prof. Gordon Cordina is an economist Feed-in Tariffs Do you wish to contribute to cleaner air by investing in a PV system? NEW AND IMPROVED SCHEMES T og et he r for cle aner e nergy and a bet t er e nvi ro n me nt ! Regulator for Energy and Water Services - REWS Higher grant of a maximum €3,000 per system. Guaranteed feed-in tariff for 20 years at a rate of 10c5 per unit. For more information visit rews.org.mt or call 2295 5000. Investment recovered in a short time, while PV system keeps producing clean energy for several years thereafter. f or the co mm erci al sector too Attracti ve sche mes MINISTRY FOR ENERGY AND WATER MANAGEMENT