Regulatory innovations underpinning Malta's resilience – MFSA Chairman
MFSA Chairman Prof. Bannister said that Malta's economic resilience, which had surpassed even that of core EU member states, is a direct consequence of the constant regulatory innovations developed over the past years. "These created business opportunities in the European ambit, thus attracting investment". Bannister also hailed Malta' robust and respected legal system – as these unique value propositions, together with the single passport, truly distinguished the island in its field.
Prof Bannister was addressing the Economist Events' Business Roundtable, organised in conjunction with the Government of Malta, held on 6-7 March. This Conference assembled a high-level audience of policy-makers, CEOs, investors and stakeholders to discuss opportunities to invigorate investment and growth in Malta.
Bannister grouped Malta's advantages in four categories: the business environment, which includes a product-driven jurisdiction, established banking and insurance industry, sharp growth in financial intermediation services, easy access to decision makers, ability to adapt fast to changing circumstances; Malta's cost structures – including cost of human resource, expertise, quality, productivity levels, taxation; strategic factors: multi-linguistic skills, geography, culture, international perception and finally infrastructure: communications and IT, regulation, training structures, tax treaties.
The MFSA Chairman dwelled on the opportunities that exist in the expansion of the financial services industry including the management of insurance and re-insurance companies, the management of trusts, the management of pension schemes and wholesale capital markets.
During the same conference, Finance Minister Prof. Edward Scicluna said that the encouraging economic turnaround being experienced by Malta is due to Government's clear road-map for business, its energetic and decisive approach to governance, and the Government's negotiations with the European Commission that allowed Malta to avoid an austerity programme related to the Excessive Deficit Procedure.
Prof. Scicluna attributed Malta's positive economic turnaround to three main factors. "First and foremost is this government's clear road-map for business, that we will do whatever is possible to remove any obstacles in the way of doing business, whether these are bureaucratic procedures or worse, corruption," said Prof. Scicluna.
"Secondly the surge in economic activity came about because Government takes decisions. The government just unblocked the process. Decisions are taken on a daily basis, come workday or weekend. Parliament's agenda is full with legislation which is bringing about much-needed change. The wheel is turning with less screeching than before," Prof. Scicluna added.
"The third reason, perhaps less known than the previous two, is that we were spared the poison chalice by the Commission way back in May of last year," Prof. Scicluna explained. The Minister recalled that Commissioner Rhen was persuaded by the Maltese Government not to impose austerity programmes, in return of being kept informed of the Government's spending review, and of the series of reforms in the energy field, in the labour market and in the education and training sectors.
Besides the Minister and the MFSA Chairman, the discussion panel also featured the participation of Jim O'Neill, Visiting Research Fellow, Bruegel, & Former Chairman, Goldman Sachs Asset Management, Prof. Joe Bannister, Chairman, Malta Financial Services Authority (MFSA), Kenneth Farrugia, Chairman, FinanceMalta, and Dr John C. Grech, Chairman, FIMBank.
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