Gordon Cordina is a leading economist on the Maltese Islands, with professional experience spanning 25 years covering banking, government policy, academia, and private sector consultancy. He is Executive Director at E-Cubed Consultants Ltd and Chairman of Bank of Valletta, the largest bank in Malta.

What are the main advantages Malta brings to the table when it comes to prospective investors?

Malta’s attractiveness to investment has so far relied in good part on a low cost base, particularly with respect to human capital and, over the past few decades, taxation. Balanced approaches to regulation, in sectors such as gaming and aviation, is another key consideration.

The availability of human capital, nationally and globally, is yet another central consideration, strongly determined by education and training activities, the ease of immigration, and the attractiveness of the country as a lifestyle destination. The reliability and quality of infrastructural services, particularly for digital and physical connectivity, is of significant importance as well.

In recent years, Malta has tended to attract investment based on a number of these elements, but renewed efforts to enhance competitiveness are required, mainly because of global developments, including the taxation scenario and AML/AFC requirements, but also due to the fatigue created by a very strong rate of economic growth over a relatively short period of time.

Foreign investors have noted that the level of scrutiny experienced in Malta is perceived to be higher than in competing investment destinations. Can the fact that Malta is now no longer greylisted help the local regulatory regime reach a better balance?

The enforcement of adequate compliance standards is a basic requirement to attract investment. Getting out of the greylisting situation, rapidly and credibly, was key to our future economic growth. We must build on this success to offer the correct regulatory perspectives to the niches in which Malta will be specialising further.

Of course, no country or investment destination can be suitable for all types and scales of investment. What kind of investment do you reckon that Malta is best suited for?

At this stage, Malta needs to be more selective of the investment that it aims to attract, basing its appeal less on generic attractiveness factors and focusing more on being ever more relevant to specific niches that would be more consistent with the competitiveness strengths that it can present.

What kind of sectors and operations are most ripe for further investment?

Foreign investment in Malta would ideally target export activity. Niches which could be developed include family offices in financial services, litigation services in maritime and aviation, video game production, linking gaming with the tourism vocation, and a number of others.

Do you expect Malta’s economy to continue growing at the strong rates seen over the last years?

There is a need for compatibility and mutually reinforcing relationships between foreign investment and the quality of life in the country. It will be acceptable for growth to proceed at a more moderate pace, as long as it is sustainable and durable.

This is not merely nowadays a question of opinion or policy choice, but also very much mandated by global regulatory frameworks. ESG considerations are becoming the next frontier of regulation, comparable in importance and impact to that which was experienced through AML/AFC regulations over the past decade.

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.