Mur Lura
Il-Ministru tal-Kummerc, l-Onor. Leo Brincat jindirizza Seminar fl-Italja
PR2034
28/11/1996
28/11/1996
| Il-Ministru æall-Kummerð, Leo Brincat, li kien qieæed jaæmel | parti minn panel internazzjonali, illum indirizza seminar ta' l-EUROPARTENARIAT '96 li qieæed jiíi organiúúat f'Genova u li hi sponsorjata mill-Kummissjoni Ewropeja biex tæin ditti úæar u meúúana Ewropej (SMEs) isibu ko-operazzjoni fin-negozju kif ukoll sóab æall-joint ventures. |
| B'kollox qed jieódu sehem madwar 400 ditta Taljana kif ukoll 2,000 | kumpanija mill-Unjoni Ewropea, mill-pajjiúi ta' l-EFTA, mill-Ewropa tal-Lvant u dik Ðentrali, kif ukoll mill-Mediterran. Il-Ministru attenda wkoll seminar dwar il-ko-operazzjoni internazzjonali li qed tieóu sehem fih il-METCO u kellu wkoll taóditiet ma' diversi personalitajiet li qed jattendu l-EUROPARTERNARIAT, fosthom il-Kummissarju Ewropew æad-Ditti ú-úæar, Christos Papoutsis. |
Id-diskors tal-Ministru qed isegwi:-
ADDRESS BY MINISTER FOR COMMERCE, THE HON. LEO BRINCAT TO EUROPARTENARIAT, GENOA, 28.11.96
MALTA - A POSITIVE APPROACH TO INTERNATIONAL BUSINESS
1. The Key Factor behind Malta's success
The key element responsible for Malta's success as an international business centre during the past two decades can be summed up quite simply in one word: 'Cooperation'. That is, mutually beneficial and profitable cooperation between Malta and its investment and commercial partners overseas. This spirit of cooperation can be viewed on two levels - at a national bi-lateral level and perhaps more importantly, profitable cooperation between countries at the enterprise level.
2. Overview of Malta as an International Business Centre
| Compared with most European countries, industrialization came late | to Malta. However in the space of just four decades, the country's economic, commercial and industrial potential has rapidly developed through a winning combination of Maltese and foreign investment in export orientated manufacturing and international trade. Despite Malta's diminutive size, its export business is significant with over US$2.5 billion worth of goods and services exported annually. |
| Malta's growth in its export trade during the past twenty years has | also been quite impressive with an annual average export growth rate of 45% per annum between 1975-1995 and 24% growth per annum in the decade spanning from 1985 to 1995. The pivotal importance of international business to Malta's economy can easily be seen from the fact that its visible export trade represents over 63% of its GDP and that this figure increases to over 90% of GDP if the export of services is also included. Furthermore, Malta's visible import trade represents no less than 115% of its GDP thereby making Malta one of the most open economies in the world. And this brings me to another key responsible for the success of Malta as an international business centre, that is, two way trade. |
| In short, Malta has one of the highest export (and import) to GDP | ratios in the world. This is even more impressive when one considers that Malta does not have any natural resources and depends exclusively on the capabilities and adaptability of its human resources and its strategic business location in the centre of the Mediterranean. That is, at the heart of what will eventually be known as the Euro-Med Free Trade Area as envisaged by the Barcelona Conference. |
3. Structure of International Trade
| The market distribution of Malta's international trade in terms of | both exports and imports reflects the high degree of economic and commercial integration which already exists between Malta and Europe. Indeed, suffice to say that today over 73% of Malta's export trade and 76% of our import trade is done with Europe. |
| However, in recent years, a marked increase in trade and commercial | exchanges with other markets, particularly those in North America, Asia and the Middle East has taken place and this trend is expected to continue. In this context, export market diversification is an important strategy being followed where the objective is not only that of seeking to enhance trade and commercial linkages with new markets in Europe, but that of encouraging and promoting, in a very practical way, commercial and trade exchanges between Malta and its Mediterranean neighbours. |
4. Trade & Commercial Relations with Italy
| Trade and commercial relations between Malta and Italy are | extremely good in terms of both import trade, export trade and direct investment. Around 31% of our exports are directed to Italy while 27% of our import business is also done with Italy, thereby making Italy one of our largest trading partners. We are determined to consolidate this relationship even further and the presence of a large number of Maltese companies, mainly SMEs, here today is tangible evidence of this determination and willingness to continue to build mutually advantageous and profitable commercial, trade and investment linkages between Malta and Italy at the enterprise level. Indeed, in recent months, over 60 SME's from Malta have taken part in 'business meets business' events in Milan, Bologna and now Genoa, with a view to exploring concrete international business cooperation possibilities at the enterprise level between Maltese and Italian companies in the form of joint ventures, reciprocal marketing and distribution arrangements, sub-contracting, know-how and technology transfers, franchising, joint marketing arrangements and many other forms of mutually beneficially business cooperation options. |
| The presence of a significant number of Maltese companies at | Europartenariat - Genoa is also reflective of the eagerness of Maltese companies to participate with enterprises from EU member states and the Mediterranean region in EU initiatives including MEDA and ECIP, among others. In this regard, we would like to affirm, once again our openness for business and would like to extend an invitation to you to take part in and benefit from a Med-Interprise event which will be held in Malta in March of next year. |
5. SMEs - Behind Malta's Success
| Earlier this year, the European Commission has, at the initiative | of Commissioner Papoutsis, adopted a common definition for small to medium sized enterprises where companies with less than 250 employees and a turnover of less than 40 million ECU fall into this category. Given this definition, around 97% of Maltese companies are SME's and as a result this category of companies are the undisputed backbone of our economy in commerce, trade and export manufacturing sectors. In this context, we are extremely supportive and appreciative of the European Union's initiatives for SMEs and I can confirm that Malta's Euro Info Correspondence Centre hosted by the Malta External Trade Corporation is extremely active in its assistance to local and foreign SMEs in their globalisation and internationalisation strategies through the provision of partner search and information services. |
| With this scenario in sight, one can say that SMEs in Malta have | been crucial to its success as an international business centre whereby the corporate flexibility and short turn-around times, typical of many SMEs, has been used to maximum advantage in the trade, commerce and investment spheres. |
6. Positive Approach to International Business
| Another factor behind Malta's success as an international business | centre is the positive attitude to international business, trade and investment expressed at both the national policy levels and at the enterprise level. In this regard, Maltese and Italian companies share a common success factor in terms of their positive orientation to international trade. |
| Success in international trade is always a challenge, especially | for SMEs. The challenge is even greater when one's home market, like that in Malta, is small. As a result, this size of our domestic market has made it inevitable that sustained economic growth and long term industrial and commercial development could only occur through export lead industrial expansion. The success of Maltese companies in the international arena is therefore closely linked to their success as direct and indirect exporters. In view of this, export development has always been and will remain a national priority - we have no choice! Furthermore, given the global nature of business and international competition today, even those countries with relatively large internal markets must look increasingly outwards for their long term economic viability. |
7. Reciprocity - Key to Success in International Business
Malta's experience suggests that reciprocity is probably one of the single most important factors behind its success as an international business centre. In today's increasingly global and inter-dependent economies and markets, trade and investment flows are essentially two-way. In this regard, the principle of reciprocity and the formation of strategic alliances - even between former direct competitors - has become increasingly important to success in international business. In this context, the presence of so many enterprises from so many countries here today is an unequivocal and clear confirmation of this fact!
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