The EY Malta survey, which has been carried out for the past 16 years and measures Malta’s attractiveness for investment, has shown that the majority of companies find Malta is attractive. This year the sentiment has dropped among participating companies.
The 16th edition of the EY Malta survey, which asks foreign investors how much Malta attracts investment, has shown most of these companies still consider Malta as attractive. 62% of the companies which took part in the survey expressed the opinion that Malta is still atractive for them.
Ronald Attard of EY Malta stated that “the factors which make Malta attractive are our tax system, with 83% saying they consider this an attraction. Telecoms infrastructure, our telecommunications infrastructure in Malta, has also emerged strongly this year; I believe this is important for industries like gaming, but it’s not just this, as social climate in Malta was also mentioned.”
Despite this positive sentiment among the majority of participating companies, Ronald Attard explained to TVM that there are still factors which deter investors from choosing to set up shop in Malta.
“We ask people to tell us about the stability of the political regulatory environment in Malta, and this had dropped. Whereas it used to be one of the top factors in the past, today it is one of the least attractive for Malta. We then have other factors which have always been low for Malta, like innovation capacity as well as the transport network in Malta, which is perhaps partly because we are an island.”
Investors participating in the EY Malta survey said 80% of foreign investors expect that their companies will still be in Malta in ten years’ time. This is at the same level as 2019. Prior to the pandemic, 53% of these companies had plans to extend their operation in Malta during the year.With the onset of the coronavirus, however, only two-thirds of the companies felt confident they would come out of this period, with 15% not feeling confident enough and 19% being uncertain.
Nearly all investors, 94%, stated that as part of the strategy which is addressing the pandemic, the Government should give priority to sustainable environmental practices.