2014 Malta attractiveness survey

50 years of FDI: Looking forward

Over three quarters of existing and potential investors believe that Malta is currently attractive for FDI. This year’s report paints a very favorable picture of Malta as an FDI destination and shows that significant opportunities exist in Malta.

This report provides a detailed analysis of the views held by existing FDI investors in Malta. 79% of investors believe that Malta is currently attractive for FDI, and more than half think that it will remain so in the next three years.

More than half (56%) of the foreign owned companies surveyed indicate that they have plans to expand operations in Malta in the next 12 months. An even larger percentage (59%) expects to remain in Malta in the next decade.

What makes Malta so successful in attracting and retaining such FDI in today’s rapidly-changing market place?

Even though sectors and types of operations have and will continue to change, Malta has remained attractive for FDI. The ability to act quickly and nimbly in reaction to developments and threats, both real and potential, is considered to be very important. So are the short ‘decision lines’ and the ability to contact all levels of government in a very short timeframe.

Over half of respondents (51%) indicated that Maltese legislation created a competitive advantage in European and global markets, and this is something that Malta should build upon.

Despite an increase in average labor rates, respondents indicate that Malta’s workforce remains a relatively competitive one. Moreover, Maltese employees are renowned for their hardworking and flexible attitude as well as their skills and multilingual abilities.

Key findings

  1. Malta’s most attractive features: stability and transparency of social, political, legal, corporate taxation and regulatory environment
  2. 79% of foreign investors find Malta attractive for FDI
  3. 56% of foreign investors have expansion plans in the next three years. The most common preferences were for back office work (36%), followed by R&D (16%) and sales and marketing offices
  4. Over half of all respondents believe that the iGaming sector will be the business sector driving Malta’s growth in the next five years
  5. 59% of respondents plan to stay in Malta in the next 10 years, while 39% were uncertain about their long term plans
  6. Malta’s marketing efforts as an FDI destination are considered effective by 40% of respondents, with a similar number agreeing that Malta has the right brand image for foreign investments
  7. 57% of investors consider the local labor market is providing the needed specialized skills. At the same time, more than half of each sector’s respondents are willing to provide the training and education needed to create or develop their required skills
  8. 51% of respondents think that the Maltese legislative framework creates a competitive advantage within European and global markets

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