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SPEECH BY THE HON. PROF. JOSEF BONNICI, MINISTER FOR ECONOMIC SERVICES, AT THE AWARD FOR ACHIEVEMENT IN INDUSTRY PRESENTATION CEREMONY – ST. GEORGE’S, ST.JULIAN’S - 15TH NOVEMBER 2001
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15/11/2001
15/11/2001
| It is always a great pleasure for me to attend the annual presentation | ceremony of the ‘Awards for Achievement in Industry’. As appropriate, my first greetings go to the winners of this year’s awards, WET Automotive Systems and Crimsonwing Ltd. in the industry section and Cutajar Works Ltd. in the crafts’ section. I extend my greetings also to the chairman and members of the organizing committee. Thank you and well done. |
| As one would expect, on occasions like this the | spotlight falls upon the award winners. However, I believe that it is Maltese industry as a whole that is sharing the centre stage this evening. Industry is here being given its wider definition that includes not only the production of physical products, but also the production of computer software. |
| As I had the occasion to remark during the same | activity last year, there are still, unfortunately, many people who have very little contact with our manufacturing sector and who, as a result, have a tendency to underestimate the achievement of our manufacturing firms. Such persons are not sufficiently aware of the high level of quality that characterises much of our industrial output, nor of the vast expertise that exists within our manufacturing firms. This is one of the principal objectives of the ‘Award for Achievement in Industry’ and of this presentation ceremony in particular; namely to highlight the achievements of our industrial sector by focusing upon some of the more deserving success stories. |
| This has been a critical year for our manufacturing | sector. Global output, export and investment figures have declined when compared to last year, which was a record year. However, a more in-depth analysis of available statistics shows us that the current situation is much more positive than first appearances might otherwise indicate. If we were to analyse the latest dis-aggregated GDP data and assess separately the electronics sector that has been hardest hit by the international economic slowdown, we can see that the remainder of the manufacturing industry has actually managed to expand its sales and exports. It is relevant to note that these other segments of the manufacturing industry account together for around 92 % of the total labour employed within manufacturing, whilst employment within the electronics sector has, notwithstanding the international downturn in sales, remained stable. |
| From the available figures there emerges a picture of | an industry that is, inevitably, feeling the effects of the international down-turn but which still appears to be solid enough and in sufficient good health to fulfil its crucial role as one of the pillars of the Maltese economy. Ultimately, we can derive an encouraging picture of the local manufacturing industry that appears to have the necessary attributes to stay on its two feet and to think positively about its plans for the future. |
| The tragic events of the 11 September have aggravated | an already precarious international economic situation, which will need some time to recover to its previous growth levels. In this intervening period, resilience has become the most desirable attribute. Resilience refers to the ability to hold one’s course even in the face of adversity. It is a label that appears appropriate to describe Malta’s manufacturing sector. |
| To no small extent, this resilience is the result of | the broad base that the manufacturing sector in Malta displays. The scope of manufacturing activity in Malta encompasses a diverse range of products and activities. This means that, on average, a downturn in one particular sector is likely to be, at least in part, mitigated by more positive trends in the other sub-sectors. This is the message that I keep getting in my regular visits to various manufacturing firms where a good number of them are currently embarking on plans to expand their activity in Malta. This is a very encouraging sign since it shows that industrial activity in Malta is still competitive internationally. |
| The subject of competitiveness is one of the many | issues addressed in our draft ‘Industrial Policy Document’ that I have recently had the opportunity to launch as part of a broad consultation process, before the finalisation of this document later this year. |
| The analysis contained in this document has three | primary components. The first is the study of the external environment; more precisely an evaluation of the challenges and opportunities that present themselves regionally and internationally. Another component is the analysis of Malta’s manufacturing industry, taking stock of recent developments and of its current strengths and weaknesses. The third component is the examination of recent and current policies that determine the environment that business operates in, particularly the legal, educational, physical and social infrastructure, and the formulation of the appropriate policy measures. |
| The Industrial Policy document is also intended to | serve as an important input into the formulation of Malta’s ‘National Development Plan for Economic and Social Cohesion’ that will be co-ordinated by the Ministry for Economic Services. Preparatory work on this plan, that will cover the years 2003 to 2006, has now been taken in hand and the social partners will shortly be formally consulted about this subject since they will be closely involved in all stages of the relevant process. |
| The principal objective of this exercise will be to | ensure the necessary co-ordination in the implementation of economic policies that target the various sectors of the Maltese economy and to relate these, in a holistic manner, to policy measures that address the wider social issues. One of the ultimate objectives of this exercise will be the preparation of the necessary framework to allow Malta to access the E.U.s ‘Structural funds’ following membership. |
| I will end this short speech by referring, once | again, to the previously mentioned Industrial Policy Document. One very interesting and highly indicative statistical data to emerge from this analysis is the realisation that value added per employee within the manufacturing sector has, not only, been on the increase but that, over the last 6 years, it has outpaced the increase in value added for the rest of the economy. This means that manufacturing is once again solidly in the forefront of economic development in Malta. |
| It is a situation that the Government wants to | support and sustain. Hence the publication, earlier this year, of a new package of incentives under the Business Promotion Act that has provided new impetus to manufacturing activity in Malta. Hence also the establishment of the ‘Malta Crafts Council’ that is intended to provide a special focus to the crafts industry in Malta, as another important component of our overall industrial strategy. |
| Congratulations, once again to the winners of this | year’s awards. May this happy occasion herald for you additional success in your future endeavor. |
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