Air travellers from around the globe last month received a taste of what Malta has to offer through an in-depth review published in last month's edition of "Lufthansa Inflight Magazine". The special feature, drawn up by Country Profiler, marked Malta's 10 years of EU membership, while showcasing the country's business and investment potential.
Malta is described as a "vibrant, popular and respected international finance centre", challenging and competing with the top domiciles in the world. The popular Lufthansa publication states that financial services have become one of the country's most important economic generators, registering impressive year-on-year growth, and attracting international attention, all against the backdrop op one of the worst financial crises in history.
"Attracted by EU-compliant legislation, a competitive business environment, access to key market and a pool of highly-trained professional services providers, some of the world's top-rated financial firms now base their operations in Malta.
It highlights the fact that "while bigger economies have been rocked by the global financial crisis, Malta's "finance sector has been given a clean bill of health by rating agencies, the EU commission and the IMF. The country's banks did not require government assistance, and their strong capital reserves and liquidity ratios continue to serve them well. Offering both security and flexibility, Malta is increasingly being seen as an alternative to established European finance centres."
Looking at specific areas of business, Country Profiler dwells into Malta's development as an important wealth management location. The country's wide range of investment vehicles, including trusts and foundations are increasingly utilised by high net worth individuals, wealth managers and family offices. When focusing on the factors underpinning the country's success, the report focuses on three specific areas: regulation, connections and talent.
In terms of regulation, Country Profiler credits Malta's success to the country's regulatory framework, which is in line with EU law and which has facilitated a commercially secure business environment from which international investors can operate. The country has gained a reputation for striking a good commercial balance, providing an appropriate legal framework without over-regulation in a way that might inhibit growth and innovation. Commenting in this context, MFSA Chairman Prof Joe Bannister said that "Companies are being attracted to Malta largely on the basis of a proactive MFSA which seeks to combine high standard regulation with efficient response to industry and consumer needs".
With regards to talent, the report notes that a high proportion of Maltese students continue to third level education, with law, accountancy and management amongst the popular subjects. In addition, industry-specific training is offered by a number of institutes, couples with tax incentives which attract highly qualified foreign professionals working on the island who benefit from a flat income tax rate of just 15%.
Finally, EU membership has provided with access to a market of 500 million people. However Malta has always looked far beyond its shores, including towards developing markets, with favourable tax treaties negotiated with China, India and the US amongst others.
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