mbr special edition 2016 low (1)

Malta Business Review | SPECIAL EDITION
Economic Rundown
JET
Malta Business Review | SPECIAL EDITION
Economy of Malta: strong points and development of
Maltese business and trade
Minister for Finance launches Joint Enforcement
Task Force to combat black economy
Minister for Finance Edward Scicluna
announced the formation of a Joint
Enforcement Task Force (JET) which
will bolster the government’s efforts at
combating the black economy.
Speaking during a press conference,
Minister Scicluna explained that through
JET, the government will channel the
resources and technical knowhow of the
Income Tax Department, VAT Department
and Tax Compliant Unit to various degrees
in order to prevent, detect, investigate,
and prosecute offences related to unfair
business competition and the avoidance
and evasion of Income Tax, VAT, National
Insurance and Excise Tax in order to
uphold the country’s licensing, regulatory
and tax laws.
“JET will in no way replace any of
these entities and departments,”
said Minister Scicluna, “it will serve
as a centre of intelligence and a
central coordination unit supporting
increased cooperation between these
departments and entities, as well as
facilitating the sharing of information
between them.” He also confirmed that
JET will be enabled to spearhead its own
risk assessments and investigations.
PHOTO: DOI - KEVIN ABELA
JET will be recruiting a core team of
multidisciplinary professionals in the field
of gathering of intelligence, risk analysis,
inspections and investigations. The core
team will be supported by staff from the
various entities and departments who will
be retrained for this purpose. MBR
Sources: DOI/Ministry of Finance
Malta has limited resources
but a thriving economy
Malta’s Economy after the
Second World War
Malta’s Economy in the
aftermath of EU membership
Malta does not have any natural resources
and experiences a limited fresh water
supply; and it only produces around
20% of the food requirements. Thus, the
economy is dependent on the human
resources and foreign trade. Malta’s
economy is practically driven by financial
services, tourism, real estate, Igaming
and manufacturing, particularly of
electronics. Other significant sectors are
pharmaceuticals, information technology,
and call centres.
The Development of Malta’s
Economy
Before the 1800, most Maltese were
farmers or fishermen, even if there was
considerable commerce. At the time
there were very few industries apart
from cotton, tobacco and shipyards.
During wars, Malta’s economy flourished
because of its strategic location in the
Mediterranean. With the opening of
the Suez Canal in 1869, Malta saw a
substantial rise in the number of ships
entering the port, as the Mediterranean
became the main trade road.
By the end of the Second World War, Malta
lost its strategic importance and the
British had to wonder about alternative
ways of income. When Malta got its
independence in 1964, economic activity
was minimal, but huge government efforts
to start up the manufacturing and tourism
industry yielded good results. Aided
by agreeable international economic
conditions and policies that supported
foreign investment, the Maltese economy
sustained fast growth right to the end of
the 20th century.
The Economy in Malta today
Malta managed to maintain a relatively
low unemployment rate, mainly
because of the constant growth and
by policies encouraging continuous
training for the labour force. Globally,
Malta ranks sixth in inward Foreign
Direct Investment and amongst the top
twenty among countries most likely
to sustain economic growth over the
medium and long term.
Malta joined the European Union in
2004 and the Eurozone in 2008. When
comparing the per capita GDP in the EU,
the country falls just above the middle
with respect to wealth. The Maltese
Government has pursued a policy
of gradual economic liberalization
and privatisation, taking some steps
to shift the emphasis in trade and
financial policies from reliance on direct
government intervention and control
to policy regimes that allow a greater
role for market mechanisms. While
change has been very substantial by
international standards, the economy
remains fairly regulated and continues
to be hampered by some longstanding
structural weaknesses. MBR
Source: TMIS; malta.com;
Web: www.daikin.com.mt Email: info@maa.com.mt Tel: 2385 0400
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