Issue link: https://maltatoday.uberflip.com/i/1542534
JP Fabri Economist ECONOMIC debate often suf- fers not from a lack of data, but from a lack of attention. Some of the most important signals about where an economy is heading do not arrive with polit- ical drama or headline-friendly soundbites. They arrive quiet- ly, buried in technical releases, waiting to be interpreted. One such release was published re- cently by the National Statistics Office on global value chains and international sourcing. It barely registered in public discourse. Yet it offers a revealing snapshot of Malta's place in an increasing- ly fragmented and fragile global economy. At first glance, the findings ap- pear modest. A small share of large enterprises relocated parts of their operations abroad. A few hundred jobs were affected over a multi-year period. Noth- ing that would typically trigger alarm. But this would be a super- ficial reading. In reality, the data tells a deeper story about how Malta interacts with the global economy, where its vulnerabili- ties lie, and how urgently it needs to rethink resilience in an age of permanent disruption. The release shows that firms in Malta are increasingly embed- ded in global value chains, not primarily to cut costs, but to ac- cess specialised knowledge and technology. This is a crucial dis- tinction. Unlike much of Europe, where labour-cost arbitrage re- mains the dominant driver of offshoring, Maltese firms are sourcing internationally because they cannot find the skills, ca- pabilities or technological depth they require locally. That alone should give policymakers pause. Connected but exposed Malta's economy has always been outward-looking. Trade, services, logistics and financial flows are its lifeblood. Integra- tion into global value chains has brought growth, employment and diversification. But integra- tion also brings exposure. The NSO data shows that the most commonly outsourced functions are information technology, en- gineering and technical servic- es, followed by management, administration and marketing. These are not peripheral activ- ities. They are core to competi- tiveness. When firms relocate such func- tions, they are not simply moving tasks. They are moving learning, 14 maltatoday | SUNDAY • 11 JANUARY 2026 NEWS Paceville already screwed, says SCH on hotel rising above listed convent THE environs of the listed Villa Rosa and St Augustine's Convent in Paceville have already been compromised, the heritage watchdog admitted, paving the way for a 10-storey hotel. The Superintendence for Cultural Her- itage (SCH) acknowledged the proximi- ty of the proposed 10-storey hotel to the Grade 2 scheduled buildings but could do little else. After examining a photomontage showing the new development rising directly above the historic convent, the heritage watchdog said it was "con- strained to note that the existing com- mitment to high and intensive devel- opment in the immediate environs has drastically compromised the historical context". In view of this consideration, the Su- perintendence concluded that the pro- posed development does "not discerni- bly increase the impact on the context or on the values of the convent," and therefore it raised no objection to the application. The hotel is being proposed in place of a villa and its extensive green grounds adjacent to St Rita's Chapel and the Au- gustinian convent. The site lies less than 40 metres from the upper entrance of Villa Rosa. In a submission to the Planning Au- thority last month, the Superintendence noted that the site lies within the setting zone of both Villa Rosa and the St Au- gustine Monastery. The chapel, convent and Villa Rosa are all listed heritage buildings, but they now stand in an area increasingly engulfed by high-rise development that has replaced the once low-lying villas of Paceville. The project, proposed by Albert Henry Xuereb, foresees a 93-room hotel spread over 10 floors above ground, with five underground levels, a rooftop pool and ancillary facilities. The 12-storey Hyatt Regency Malta, lo- cated just metres from the proposed site, was approved in 2018 on land owned by the Augustinian Order, despite objec- tions from the Superintendence and the Archdiocese of Malta. Another hotel, located next to the Hyatt, is still awaiting approval by the Planning Authority. A separate development proposed by Anton Camilleri on the Villa Rosa site also includes a high-rise component which could rise to 39 floors, according to the draft local plan revision proposed by the government. Heritage NGO Din l-Art Ħelwa has objected to the proposal, warning that it could seriously impair the visual amen- ity of these scheduled monuments, un- dermining their heritage integrity and value. The organisation stressed the im- portance of detailed visual assessments to properly evaluate the project's impact and ensure the visual context of the his- toric properties is preserved. The Augustinian Order has reserved the right to submit representations as necessary. St Rita's Chapel and the adjacent Au- gustinian convent in St Julian's were es- tablished in the late 1920s by the Augus- tinian Order. The convent's foundation stone was laid in 1927, and the public oratory dedicated to St Rita was bless- ed in 1928. During World War II, the chapel was largely destroyed by bomb- ing but was rebuilt and reconsecrated in 1944–45. The complex was designed by Maltese architect Gużeppi Cachia Caru- ana, reflecting early 20th-century eccle- siastical design in Malta. Reporting by James Debono The existing view The proposed development