Issue link: https://maltatoday.uberflip.com/i/1258061
11.06.2020 7 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 €400 million investment over eight years in industrial infrastructure an- nounced by the government as part of its economic recovery plan is a welcome move. Although details of the how this money will be spent are scant for the time being, it is an important stimulus for the manufacturing sector. Last week, this leader noted that the forced absence of tourism as a result of COVID-19, highlighted the importance of the export manufacturing industry. roughout the pandemic, factories did not close and although they sustained reduced demand and had supply chains disrupted, they continued functioning. 'Never has the importance of manufactur- ing been highlighted as the current period we are in,' this leader wrote last week. Manufacturing not only creates jobs but more importantly earns the country money from abroad that helps boost domestic well- being. e economic recovery plan recog- nises this and dedicates a substantial sum of money to improve industrial estates. is money will go to expand the Life Sciences park in San Ġwann, create a logis- tics centre, build new multi-storey factories, invest in the business incubation park and improve the environment in industrial estates to create a welcome environment. A lack of industrial space makes it very diffi- cult for the government to attract foreign in- vestment in manufacturing, which is why the investment is important. is cash injection will not provide an im- mediate boost to the economy but it is impor- tant to prepare for the long-term recovery. e important thing now is to get the money rolling. Malta Industrial Parks must have a list of projects, prioritise them and start drafting plans to move forward with the exercise. is process must be modelled on the same lines adopted by Infrastructure Malta and its continued investment in new road projects. Deliverables must materialise the quickest possible and at a sustained pace. But the investment in infrastructure alone will not be enough. Government through Malta Enterprise must embark on an aggres- sive international effort to attract new manu- facturing companies to Malta. ME must also entice existing factories to expand. e country's health system, its use of the English language, its relative safety, its prox- imity to major European markets, its hard- working labour force, its good education sys- tem, its sea and air connections are all plus points to attract new business. And with these benefits, Malta would be able to add a modern industrial and logistics infrastructure. But the recovery plan also provides financial support to alleviate port and container han- dling charges, which are crucial to mitigate the higher expenses as a result of disrupted supply chains. is is all the more important for an island economy that depends on shipping, and to a lesser extent, air travel, for its commercial links. Lowering costs for industry helps keep it competitive. A country like Malta with a small domestic market has to rely on a strong export base to ensure prosperity for its citizens and this renewed effort to invest in manufacturing is important because it further diversifies the economy. Diversification ensures the country will be resilient in times of crisis. A stimulus for manufacturing