Government Stability and Responsiveness

Malta represents a unique haven for investors in the region with its offer of a stable socio-economic environment and accessible, pro-business government.

* Consistently pro-business government policies

* European Union member

* Non-aligned, neutral state

* Good relations in Euro-Med region - N.Africa & Middle East

* Social & Economic stability: no domestic or foreign interference

* Independent judiciary: administrative & fiscal legislation modeled on British law.

Since the early 1990s, successive governments have followed a keen ‘can-do’ approach to enterprise and investment. As a result, Malta has witnessed substantial changes in its public structures and regulatory frameworks over the past decade. Many public entities have been reengineered to enable them to foster a climate that encourages business and contributes to a more equitable and open society for Malta’s citizens.

Malta’s size works in its favour: change can be felt quickly; access to government is easily facilitated, even to the highest levels; and private sector bodies are consulted readily and routinely in the formulation of policy.

At the start of the 1990s, Malta applied for EU membership; a move which not only confirmed the Islands’ social, political and cultural ties and future, but also triggered a series of domestic, structural changes to prepare Malta for eventual EU accession (May, 2004).

Key changes were seen in the way the public sector communicated with its various publics. Ministries, departments and other state entities underwent a series of change management exercises to promote better working practices and a culture of customer service. The public sector now largely operates under Service Level Agreements, both internally and with externals.

Simultaneously, government invested heavily in the Islands’ telecommunications infrastructure, building the backbone and catalyst for what is now today’s growing knowledge economy and a platform for growth in the financial services sector. During this period too, government embarked on a programme of privatisation, and major entities now fully- or part-privatised include the former state telecoms provider, the airport, and the postal service.

The past decade has seen also the setting up of bodies charged with disseminating information and promoting sectors, particularly trade, FDI and financial services. Relevant entities include Malta Enterprise - FDI and trade promotion; and FinanceMalta – support to and promotion of Malta’s financial services sector.

Today, the Islands are reaping the benefits of the past decade of change and the country is being acknowledged by high rankings in various international indices measuring its pro-business environment. Malta ranks second among the 27 EU member states in its provision of eGovernment services through its IT infrastructure, according to a European Commission/CapGemini (September, 2007).  The report benchmarked 20 different eGovernment services and gives Malta a position just after Austria.

Malta's economy is 67.8 percent ‘free’, making it the 42nd freest economy of 161 countries worldwide, according to the Index of Economic Freedom, 2007 compiled by the Heritage Trust, a branch of the Wall Street Journal. The Trust ranks Malta 23rd out of 41 countries in the European region, with an overall score slightly higher than the regional average. Malta scores highly in property rights, trade freedom, monetary freedom, business freedom, and financial freedom. 

There are no domestic or foreign policy issues which threaten Malta's stability or integrity. The International Living index ranks Malta’s indices as 100 per cent for freedom, and risk and safety.