Leading local consultancy firm Seed has published its National Productivity Report 2021, titled ‘Digital Malta,’ which presents the outcomes of a survey on the readiness of Maltese firms for the ongoing digital transformation.
This survey, titled the Digital Transformation Readiness Index, was rolled out amongst a representative sample of Maltese firms to gauge their readiness to implement and reap the benefits of transformation.
It highlights specific gaps in Malta’s digital ecosystem as well as in the readiness of companies across sectors, particularly the low-productivity ones, to embrace and internalise digital transformation.
The report provided 25 recommendations for five key enablers: talent and skill, research and innovation, finance and incentives, infrastructure and security, and policy and governance.
These would aim to deliver on goals to:
- Stimulate firms and workers to adopt and build capacity and capability in digital transformation
- Support firms and workers to seize the opportunities enabled by digital transformation
- Develop a complete ecosystem that is backed by access to finance, infrastructure and a strong regulatory and policy framework
- Equip the current and future workforce with the required skills to deliver digital transformation in their respective industries
- Ensure a secure cyberspace that underpins national security, powers a digital economy, and protects the digital way of life
The report concluded that, supported by the EU’s Resilience and Recovery Fund and Malta’s specific Resilience and Recovery plan (which is digitally focused), the country has the potential to fully “embrace and harness” the power of digital transformation.
It also explained that improving productivity is not only an economic goal, but can lead to better jobs and an improved quality of life, and that as such further research and analysis is required to foster it.
The report recommended that this be conducted by a research programme collating datasets to assess and benchmarks the driving factors behind productivity differentials between firms, and particularly differences between firms, and particularly Maltese firms, to build a broad evidence-base for further enterprise policy intervention.
“Embracing digital transformation has become a matter of survival and if harnessed fully, it can lead to productivity enhancements, improved growth and employment opportunities and better economic outcomes that ultimately can lead to improved quality of life,” it added.
The report was penned by leading authorities in the local economics sector, including applied economists JP Fabri and Glenn Fenech, leading statistician Vincent Marmara, and internationally recognised digital technology expert Joshua Ellul.
Seed is a boutique advisory firm focused on helping clients achieve growth, improved performance, and tangible results.
Its full report is available online.