Issue link: https://maltatoday.uberflip.com/i/1254968
04.06.2020 5 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS CONTRIBUTING JOURNALIST: MASSIMO COSTA BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 A country like Malta with a small domes- tic market has to rely on a strong ex- port base to ensure prosperity for its citizens. Domestic consumption, including government spending, is a key component of this country's eco- nomic set up but it will never be enough to sustain the quality of life we have become accustomed to. It is this realisation that propelled policy makers in the 1960s and 1970s to diversify the economy by kick starting tourism and creating a strong manu- facturing base focussed on exports. More recently, policy makers helped grow the services industry through financial services and re- mote gaming. ese activities not only create jobs but more importantly earn this country money from abroad that helps boost wellbeing. e secret for success is the ability to have a di- versified portfolio that enables the country to be resilient in times of crisis. e COVID-19 experience has decimated tour- ism, and operators can only hope for the recovery to start next year. is has removed from Malta's equation a major export industry and this has mul- tiple repercussions. Efforts must continue being made to get the tour- ism industry back on its feet but the experience has shed light on the importance of nurturing another export industry mainstay – manufacturing. roughout the COVID-19 crisis, Malta did not close its factories. e health authorities worked with companies to help them introduce mitigation and safety measures that enabled factories to con- tinue operating. e accessibility of the authorities and the flex- ibility of Maltese unions enabled operators to re- spond dynamically as the pandemic developed. is is not to say that manufacturing companies and their employees did not face problems but by and large the challenges were overcome. is was a feather in the cap for the sector because it helped avoid the major disruptions witnessed in other countries where factories were closed as the coronavirus wreaked havoc. More importantly, this is a lesson learnt on the importance of having a strong manufacturing base that could serve as the antidote to the sudden loss of income from tourism. Malta must use the COVID-19 experience to at- tract more manufacturing firms to the island and encourage those already here to expand their op- erations. e country's health system, its use of the English language, its relative safety, its proximity to major European markets, its hardworking labour force, its good education system, its sea and air connec- tions are all plus points to attract new business. Niche sectors like the medical cannabis industry must get off the ground. Despite the effort to in- troduce legislation as quickly as possible two years ago making it possible for these pharma companies to open shop in Malta, not one medical cannabis manufacturer has started operating yet. e efforts in this sector have to be intensified. e same holds for the aviation sector. Malta has a lot going for it here but a strategic airport master plan that started being drawn up in 2018 has failed to see the light of day. ere are new niche sectors in aviation that can be attracted to Malta, which require a strategic land use plan. But there is also the issue of space that cannot be ignored. Having modern factory spaces is a must to be able to attract manufacturing firms. Malta In- dustrial Parks has to speed up its efforts to identify new spaces, including the redevelopment of dis- used factories into modern multi-storey facilities. Never has the importance of manufacturing been highlighted as the current period we are in and part of the EU funds coming Malta's way should be ded- icated to strengthening this crucial export sector. COVID-19 crisis has highlighted importance of a strong manufacturing base