Issue link: https://maltatoday.uberflip.com/i/274219
maltatoday, SUNDAY, 9 MARCH 2014 44 Edward Zammit Lewis Business T he winter forecast 2014, issued recently by the European Commission, is full of good news for Malta's economic prospects for the years ahead. It also confirms, if there were any doubts at all, that the general economic policy adopted by the new administration is not only reaping positive results in the short term but is also a sound and solid foundation for sustained economic growth in the mid- to longer term. All this is achieved within an overall economic scenario within the EU/Euro Area that is not all that bright and positive, though the general economic recovery within this area is expected to gain further momentum and this can only further consolidate and improve Malta's already positive economic prospects. The European Commission, through this forecast, is predicting a sustained economic growth at or above 2% for the coming years and this places us at the top tier of the performing countries. The forecast also gives very positive indicators for inflation and unemployment that are estimated to remain in check for the coming years. I also personally predict that the numbers will actually be better than forecasted as there are many more initiatives, some of which I am actively working on and others pursued by my Cabinet colleagues, that we will be in a position to announce and implement in the weeks and months ahead that will reap further benefits in the future for the creation of more wealth to be enjoyed by all sectors of the economy and more quality jobs. Malta's sustained economic growth is influenced by a range of commerce segments such as Remote Gaming, ICT and Maritime, which have also contributed to these very positive projections. The Remote Gaming industry in Malta contributes to around 11% of the economic product of our country. This is a multi-million euro business for Malta and many licenses have been issued. This means that hundreds of jobs depend on it. Malta is strategically positioned to attract remote gaming companies and it is our aim to capitalize in this sector. In January this year, three gaming companies set foot in Malta either to expand or to start their business here. Moreover, during the ICE event held in London I met with a number of operators and the undergoing negotiations look very rewarding. To this effect, a number of international operators currently are in the process of due diligence and are actually in the course of moving to Malta. A number of prominent names will be announced shortly. Companies in data storage are being encouraged by the growth of the gaming industry in Malta and a few weeks ago a direct investment of one million euro at a data centre services provider was launched. This provides new co-location, hosting facilities and cloud service. In February the Responsible Gaming Foundation was established in order to promote sensible activities in the gaming industry, guard against harmful extreme gambling and protect minors, addicts and victims of usury. Furthermore, we are fully aware that precedent achievements in this sector are not essentially a guarantee for its future success. This is why we are determined to embark on new strategic initiatives to enhance this industry and take it to the next level. We want to maintain our competitive edge and keep on differentiating ourselves from other competing jurisdictions. The growth of the Maltese ICT industry has taken place largely as a result of a need to service local enterprises, with a number of IT companies exporting their products and services to foreign markets. The Government is giving the due importance to the digital economy, which is considered the backbone to Malta's future economy. A strong ICT stamina has allowed us to have the necessary infrastructure and skills to grow in this industry. We are also working on the Fibre To The Home nationwide project, a project that will certainly result in a very positive feedback both on the iGaming and ICT industries in Malta. Establishing the e-Skills foundation is part of the plan to reinforce our educational system to cater better for the employment needs of the ICT and iGaming sectors. Our plan is to create a strong cluster of ICT and iGaming professionals. This is also why the Government will shortly launch the National Digital Economy Strategy which will set out a lucid plan and actions that will direct Malta to accomplish its Digital Agenda targets till 2020. Malta has always placed the Blue Economy at the top of its agenda. The proposals taken up by the European Commission have given the political thrust to work both at EU and national policymaking levels in order to further motivate growth within this region, with particular focus on the competitiveness of the marine and maritime sector. Implementing an integrated maritime policy for Malta will present new momentum for growth in the marine and maritime sectors. This would also ensure that all key players work collectively in a competent and effective way. There is an insistent need to encourage a culture of integrated actions and integrated policy development, which must become the rule in moving forward. This is a Government that relentlessly works for the wellbeing of our economy, not only in the European dimension, that is obviously key, but also on a wider global perspective as is necessary in today's economic realities. It is only in this manner that we can ensure longer term and sustained economic wellbeing also for the future generations. We do not simply take decisions and implement measures for the immediate but we are looking beyond and this outlook is reaping economic benefits. A fitting example is the implementation of the energy plan that, in just a few months, attracted a positive score from credit agencies for Enemalta Corporation that was in a very precarious financial state. The Government is now managing to steer the corporation to a more sustainable situation thus safeguarding many jobs. This is only the beginning and we are all looking forward to the future with much optimism. We will no doubt improve further and strengthen our economic standing in the European and Global perspective. Edward Zammit Lewis is Parliamentary Secretary for Competitiveness and Economic Growth Definitely on the right track The growth of the Maltese ICT industry has taken place largely as a result of a need to service local enterprises, with a number of IT companies exporting their products and services to foreign markets