Tony Cai is Chairman of ABA Chemicals, a Shenzhen Stock Exchange-listed (300261.SZ) corporation that in 2017 acquired the Malta-based Amino Chemicals from Dipharma Francis Srl and set up A2W Pharma Ltd, which is specialised in the research, development, and manufacturing of active substances derived from cannabis.

In 2022, the company unveiled its new facilities, providing full end-to-end processing from raw material to bottling with chemical and stability testing capabilities.

What were the key reasons for the choice of Malta as an operational base?

Malta was one of the most obvious choices for ABA to invest in. We had other options around Europe, however, Malta provided an environment that few countries in the Union can claim to provide.

For starters, the government and agencies involved in FDI are extremely helpful, very transparent, and committed. We received a lot of assistance with the registration process, and we did not encounter any serious issues with the due diligence process.

We also found the authorities to have the right balance in being practical whilst adhering to the strictest EU and international standards.

What benefits did ABA Chemicals obtain in acquiring a Maltabased company with 30 years of regulatory experience?

ABA Chemicals has seen accelerated growth in the agrochemical sector thanks to reliable and consistent development and the support of major players in the global industry. Our plans to expand into the pharmaceutical sector, and to utilise our growing R&D expertise and facilities, brought about a need to have a strong presence in Europe, allowing for rapid expansion as well as inheriting valuable GMP experience. ABA Chemicals is now integrating the expertise and GMP culture into its own sites, whilst also investing in new facilities, in China, Malta, and beyond.

How do you rate the ease of doing business in Malta?

The reduced bureaucracy arising from the direct communication channels with authorities and institutions, whilst still complying with EU and international regulations, certainly makes Malta a good place to work in.

Most importantly, the strength of the Malta Medicines Authority’s reputation, as well as its mutual recognition with the US FDA, makes our accreditation from Malta much more valuable than it would be in some other EU member states.

The commitment by the MMA to maintain a high level of compliance and vigilance over its licensees whilst still managing to keep a very open channel of communication and a helpful approach makes Malta a very stable environment in which a pharmaceutical company can thrive.

What opportunities does the medical cannabis industry offer to established pharma players?

Malta made the right move to regulate and allow R&D and manufacturing operations to take place so early. Medical cannabis is a loose term for a sector with huge potential. We see the innovation brought about by the efficacy trials of cannabidiol (CBD) against known central nervous system conditions as only the tip of the iceberg.

ABA is committed to invest in this sector and to establish itself as a leading player in the pharmaceutical cannabinoid sector.

What is different about investing in Malta when compared to investing in other jurisdictions?

Investing in Malta represents a unique opportunity to invest in a European member state whilst still working in a truly international setting.

Malta Enterprise provides numerous incentives to companies involved in scientific innovation and research, and rewards companies that invest in fixed assets or employment of additional staff.

Malta’s second language is English, and Malta’s authorities are truly recognised worldwide.

Its rating is one of the best in the financial world, despite recently going through some challenging times, and its government has proven to be one of the most stable and reliable in the whole Union.

Its institutions are extremely welcoming to Chinese investors, and understand the benefits of having good relations with China. Diplomatic relations between the two countries are excellent, and this makes it much easier to invest in Malta in comparison to other countries.

This feature was first carried in the Malta Invest 2023 edition. Malta Invest is the first-ever comprehensive international investment guide focusing on Malta as a destination. It is produced by Content House Group.