Understanding what makes a country appealing as an investment destination is the first step to making an investment decision. For foreign companies that are already based in Malta, corporate taxation, fiscal incentives and aspects relating to human resources are key investment criteria.
During these past 40 years, the country has notched up an impressive record in attracting foreign investors to Malta, and who continue to re-invest in their production and service facilities on the island. How has Malta achieved this? By successfully moving from labour-based to knowledge based industry and in so doing, attracting Foreign Direct Investment from countries like the UK, Germany, Italy, France, Spain and the United States. Malta’s favourable industrial climate and pro-business policies have been the pillars on which foreign companies have built their success.
Direct labour costs also hold up well, at a competitive 30% to 50% of those in the older EU Member States. However, when labour costs, productivity and working hours are factored together, the picture is even better. Malta’s workforce then becomes cheaper than all established EU economies. What's more, when social security costs and other employment taxes are added in, Malta's total labour costs are competitive with the new EU Member States and significantly lower than established EU Members.
Financial services, advanced manufacturing, life sciences, ICT, creative industries and aviation related activities are changing Malta’s foreign investment climate, further testimony that Malta is one of the most advantageous investment locations in Europe and the Euro-Med region.
Adaptability, innovation, competitiveness and flexibility are key elements of Malta’s economic strategy. Throughout the years, these traits have helped the Maltese to adjust to the islands’ realities as well as to those of the international business environment. This ability to accommodate necessity has kept investors interested in setting up business on the island. Today, official statistics demonstrate that the package the country offers, ranging from a highly skilled workforce to the availability of fiscal and financial incentives, together with the fact that Malta is an EU and eurozone member state, makes Malta attractive even in difficult times.
The presence of so many renowned names based on the islands, continually investing in and expanding their operations, provides a true testimony to the quality and productivity of the Maltese workforce as well as the infrastructure within which they operate. Some of these names include: