SPEECH BY THE HON. JOSEF BONNICI, MINISTER FOR ECONOMIC SERVICES, AT THE OFFICIAL INAUGURATION OF NEM ITEC DEVELOPMENT LTD, AT MOSTA TECHNOPARK.

t is a pleasure for me to have been invited to inaugurate this new German enterprise in Malta, operating in the IT sector.

In this particular case, the foreign investor has not only been attracted to locate part of its operation in Malta, but has also set up a holding company in Malta. The company that we are inaugurating today, NEM ITEC Development Ltd, is a subsidiary of the NEM Group of Companies, set up earlier this year, and wholly owned by NEM Holdings Deutschland AG, a German-based company. NEM ITEC Development will be engaged in software development.

One is pleased to note that there has been a consistent interest in Malta, shown by German investors that goes back twenty years. There are now more than 55 German companies operating in Malta, employing over 3,000 people. During the first half of this year, six new projects originating from Germany have been approved. I must say that the largest community of foreign direct investment in Malta is German. But more important is the fact that German investment has shaped and transformed the whole Maltese industrial scenario, forging a work ethic and imprinting the traditional German industrial culture envied worldwide.

Like other investors from other parts of the world, German investors have recognised Malta's potential and its advantages. Our location between Europe and the potentially huge African market; competitive labour costs; and a well-trained, highly skilled, multi-lingual labour force provide the edge over our competitors in the market. Effective marketing strategies; and, above all, a highly attractive incentives-package should help to attract the ideal foreign investment to our shores. The Industrial Development Act is being updated in order to benefit in particular those investments with high value-added potential. These include the software industry, which provides export opportunities with a high local value added content.

We are striving very hard to attract more foreign investment to our shores, in particular in those sectors where Malta offers a distinct competitive advantage, such as information technology, software development, electronics, pharmaceuticals and medical related products and precision mechanical engineering.

In the field of information technology, our aim remains that of becoming Europe's software capital in the Mediterranean and I believe that our economy could create the right conditions for this type of success. Our vision should be nothing less than that of becoming an IT centre of excellence in the Mediterranean region.

In conclusion, I wish you success in this venture.