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Advertisers MFSC - Malta Financial Services Centre Maltese-American Chamber of Commerce METCO - Malta External Trade Corporation Ltd.
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Metco: your strategic partner in the Mediterranean
“The combination of a pro-business government, a highly motivated, competitive workforce and close proximity to our customer base, makes Malta an important part of our strategy for continued growth in Europe, North Africa and the Middle East,” explained Terry Lay, chairman of VF International, a manufacturing facility that produces jeans for their Wrangler, Lee, Maverick and Old Axe brands.
Metco is also trying to act as a liaison between Maltese small and medium enterprises (SMEs) and American companies. “Malta’s manufacturing and services industry consists of SMEs whose strength lies in their flexibility, short-response times, reasonable minimum order requirements, combined with high productivity levels and above all their ability to provide a quality product or service at the right price. Labor costs are competitive compared to most European locations, while productivity, quality and efficiency levels are comparable to international standards,” explained Metco.
The new and advanced technologies brought in by foreign direct investment have benefited both the international and local companies. Furthermore, the combination of a continuous upgrading of productive systems and a strong work ethic have led to the development of a vibrant manufacturing industry, said Metco.
According to Anthony Diacono, chairman of Metco, future opportunities lie in e-commerce and telecommunications. The liberalization of the telecommunications sector has included the partial privatization of Maltacom, the formerly state-owned fixed telephony company, the creation of Go Mobile a wireless communications company that recently signed a $25 million contract with Nortel to provide them with turnkey network solutions, and the expansion of Melita Cable into both fixed and wireless telephony.
The privatizations will continue. Sixty percent of Maltacom is still in the hands of the government. Maltacom is looking for a strategic international partner that would purchase most of the remaining shares, and that would provide the technology and knowledge to upgrade Malta’s telecommunications industry. Next on the list are probably the international airport and the remaining portion of the Bank of Valletta and other parastatal companies.
Frank Leiter, chairman of Melita Cable, believes having a strategic local partner is extremely important. Fifty percent of Melita is owned by the Gasan Group, which has been representing Ford for many decades. “Since Malta is very relationship-oriented,” having a local partner can be mutually beneficial, explained Leiter.
According to Metco, companies such as Baxter Limited and Methode Electronics manufacture in Malta and export to highly competitive markets. These companies are almost entirely run by Maltese management and staff. Other companies are using Malta as the base for their international trading and marketing operations in the Euro-Mediterranean region. Hilton, Westin and Radisson have all seen the opportunities in the tourism sector and are now transforming the industry. Meanwhile KPMG, PriceWaterhouseCoopers, and Deloitte and Touche are here to help investors take advantage of Malta’s opportunities.
For companies looking to enter into technical or marketing partnerships, the BC-Net Service is quite useful. This confidential computerized matching system can identify potential business partners. The “Executive Pocket Guide to Malta” is also an extremely handy introduction to all the business opportunities Malta has to offer.
As Diacono concluded, high productivity levels; a tradition of quality; a highly skilled and adaptable workforce; and an excellent infrastructure, backed by a tradition of stability have made Malta an international business center and a world-class investment location.
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Table of Contents Building bridges and embracing the future |
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The recent Reverse Trade Mission organized by the American Embassy in Malta expects to build upon the success of last year’s mission. According to Ambassador Kathryn Proffitt, the 1999 Trade Mission to Arizona and Washington, D.C., resulted in $150 million in memorandums of understanding. The Malta External Trade Corp. (Metco) has been leading numerous delegations to the United States where companies hold one-to-one business meetings. These trade missions are usually quite successful in attracting new companies to Malta.
Industry in Malta is still quite young. Only in the 1960s when Malta became independent did the new country begin to look at a replacement for the British military. With few natural resources, Malta turned toward its best resource – its well-educated, highly trainable population. Combined with relatively low wages, as compared to Europe, Malta began to develop two major industries, tourism and manufacturing.
Metco believes that many other opportunities exist for international investment, especially for American companies. North Africa is very interested in American products and technology, explained Diacono. Malta can be the location where companies can establish themselves, invest safely and receive adequate returns. Both Malta and Maltese companies can be used as a platform to penetrate the North African and Middle Eastern markets via joint ventures and strategic partnerships with local companies.
Although flying halfway across the world to do business would be daunting, entrepreneurs do not have to face Malta’s challenges alone. Metco’s one-stop shop provides a variety of services that offer immediate assistance and backup to anyone wishing to establish business contacts with Maltese companies to explore the prospects of international business. Their partner matching and business inquiry services put international business partners in direct contact with new suppliers and potential partners. One-to-one business meetings can be supplemented with factory visits and business presentations. While in Malta, entrepreneurs can use Metco’s Trade Center facilities as their home base.