VALLETTA, Dec 27 (AFP): Malta joins the Eurozone on January 1, hoping that adoption of the single currency will help the Mediterranean island nation’s economy transform itself into a high-technology investment magnet, officials say.
“Malta became a very attractive place for investment from Europe and outside Europe at the moment we said we would be joining the Eurozone,” Maltese Prime Minister Lawrence Gonzi told the news agency.
From January 1 “it will be more so … in all sectors targetted for tranformation,” he added, citing six sectors including information technologies.
Competition with Asia, eastern Europe and north Africa has forced Malta to leave both the textile and electronics sectors and embrace other areas such as pharmaceuticals and high technology and value-added manufacturing services.
The shift accelerated with its entry into the European Union in 2004, attracting new investment.
In July, the Maltese government signed an agreement with Lufthansa to begin maintaining and overhauling planes for the German airline.
In pharmaceuticals, several companies have set up research centres to take advantage of legislation allowing them to develop generic copies of patented drugs, poised to roll them out as the patents expire.
Gordon Cordina, an adviser of Malta’s employers’ federation FOI and economics professor, said that traditional industries such as printing and agribusiness have also begun repositioning themselves.
“In 1964, when we became independent (from Britain), we had the same per capita income as Singapore. Now theirs is 2.5 times greater than ours,” said Cordina.
“Singapore got into textiles in the ’60s and Malta 10 years later, when Singapore began converting to electronics. We’ve always been 10 years behind in entering growth sectors,” he said.
Adrian Said, coordinator of the Competitive Malta think tank financed by leading companies here, said: “We should promote our country better so that investors associate other aspects of excellence with Malta besides tourism, which we are best known for.”
Adoption of the euro will put Malta on the same footing with rivals such as Cyprus, also joining the Eurozone on January 1, Luxembourg and Slovenia, Said said. The Eurozone of 13 members now will have 15 members from the beginning of 2008.
Advantages include the elimination of currency exchange costs and the credibility of a major currency, Said noted.
“We should emphasise that our people speak English and are well educated, that we have strong ties with the rest of Europe and a pleasant way of life,” he added.
Even so, Malta needs to improve its education system and produce more qualified personnel, observers said.
