Why Malta ?

Revision No. 8 - Last Updated : 09-10-2002

Geography

The Maltese archipelago consists of three principal inhabited islands, Malta, the largest island, Gozo, Comino and other uninhabited islets.  They lie almost dead-centre of the Mediterranean sea: Sicily is just 93km to the north, North Africa 288 km to the south, Gibraltar 1826 km to the west and Alexandria 1,510 km to the east.  The total area of the Maltese islands is 316 square km.

Malta, the largest landmass, covers 246 square km with 136 km of coastline.  The total population of the islands is approximately 375,000.

• Capital            : Valletta

• Main Seaport  : Grand Harbour, Valletta

• Airport            : Luqa (9km from Valletta).

Malta became an independent state in 1964 and declared itself a Republic in 1974.

Climate

The climate is warm, healthy and generally mild.  Rain falls for only very short periods averaging about 600 mm (21 inches) in a whole year.  The temperature averages 15oC in winter (November - April) and 32oC in summer (May - October).  The sun shines for an average 6.46 hours each day in winter and 10.11 hours in summer.  The hottest period is from mid-July to mid-September. 

History: a disproportionately grand legacy for such a small island

Malta’s strategic location, at the cross-roads of the Mediterranean, has meant that, over the centuries, the island has played a very important role in the vicissitudes of the region, right from the early days of civilisation up to the present times.

In fact, just about every major player in European History – from Count Roger the Norman, to Napoleon, to Hitler – has squabbled over Malta and left a mark in some corner.

All the various periods of Malta’s history are fascinating, but there are two particular periods – the Temple period and the period of the Knights of St. John – that stand out from the rest because they are unique to Malta.

Recent archaeological research has shown that the earliest Neolithic temples on Malta are the oldest free-standing architectural monuments in existence, being about 1,000 years older than the famous pyramids of Giza.  The oldest megalithic temples are thought to be those of Ggantija on Gozo which date back to 3,600 BC.

Huge rocks, several tons in weight were used in the construction of these temples.  Even with modern techniques and tools this would not be an easy task today.  How these enormous loads were moved, or even lifted, almost 6,000 years ago remains a mystery.

More than 4 thousand years after the Temple period and precisely in 1530, the Knights of the Order of St. John brought another epoch of great cultural significance to the Islands.  The Order of St. John ruled supreme in Malta for nearly 270 years and its crusading knights -- “the flower of European aristocracy” -- left part of the magic of their era in towering fortifications, stately palazzos and noble baroque churches and cathedrals whose walls are adorned still with the art of Caravaggio, Antoine de Favray and Mattia Preti.

Malta’s capital, Valletta, a fortress city, was built by the Knights of St. John and named in honour of the Grand Master Jean Parisot de la Valette under whose inspired guidance the Knights and the Maltese had defied the Turkish onslaught during the Great Siege of Malta of 1565.  Valletta is one of the earliest examples of a planned city built on the grid system.  The buildings of Valletta, its museums and churches are the work of the best European engineers and artists of the time.

The Maltese People - Friendly and Relaxed

The rare sense of hospitality and friendliness of the Maltese people invariably strike visitors to Malta.  The Apostle Paul, who was shipwrecked off Malta in AD 60, was probably the first long-stay  visitor to the Islands and the hospitality shown him by the locals is well recorded in the Acts of the Apostles.  Two thousand years later Maltese hospitality remains as warm and as unaffected as it was then.

Malta: its Government and Legal System

Malta has a parliamentary democracy.  The President represents the unity of the nation whereas executive powers rest with the Prime Minister and his cabinet.  Parliament is composed of 65 representatives elected every 5 years.

Malta’s legal system is based on Roman, Italian and French law, but more recently English law has had a strong influence, particularly when it comes to legislation on the fields of taxation, company law, maritime law and other commercial fields of law. 

With a view to Malta’s desire to have the closest possible ties with the EU, Malta has made every effort to harmonise its legislation with EU standards.

Language

Malta’s official languages are Maltese and English, the latter being spoken fluently by almost every Maltese citizen.  Business correspondence is mainly in English.  Most of the population is also conversant in Italian and a good number can communicate in French, German and Arabic.

Economic Policy

The Maltese economy has registered growth in recent years.  Malta is an open economy, with the EU being its main trading partner.  Inflation is low by international standards, and the local currency is relatively stable vis-à-vis major foreign currencies.  Malta’s economic strategy aims to sustain growth in the manufacturing industry, tourism, market services and commercial sectors, in particular, the Financial Services.

The Malta Freeport

In 1988, a free trade zone was established under the auspices of the Malta Freeport Corporation that acts as the Authority supervising work in the Freeport.  This Authority administers the affairs of the Freeport with a view to fostering the economic development of Malta by encouraging the establishment of industrial and economic enterprises therein.  Companies operating within the Freeport require licensing by the Authority.

Among the more important incentives are exemptions from customs and excise duties, income tax, stamp duties, exchange control and death and donation duties.

Manufacturing Industry

Malta’s industrial strategy is based on encouraging direct foreign investment in advanced technologies.  Emphasis is made on a progressive shift to low volume/high value manufacturing activities.

Malta’s industrial base is well diversified.  A strong emphasis is laid on the manufacturing of products that require specialised personnel, high production skills and meticulous quality control.  This factor has contributed in attracting a considerable number of high technology industries.  In fact, over 200 international companies have established operations in Malta.  Electronic consumer products are the main exports.

International Financial Services

Malta has established a comprehensive legislative and regulatory framework for financial services activities and international business which have incorporated the latest European standards and EU Directives. 

The Malta Financial Services Centre (MFSC), an autonomous authority, is the focal point for the judicious but highly adaptive regulatory environment for Financial Services in Malta.  The MFSC provides the necessary legal structure for the setting up of international business operations including banking, unit trusts, mutual funds, captive insurance and International Trading and Holding Companies.

The attractiveness of available business opportunities is further enhanced by tax planning opportunities.  Malta’s legislative framework is bolstered by an efficient tax structure introduced in 1994 together with a comprehensive network of double taxation treaties, availability of unilateral tax relief and, when applicable, a flat-rate foreign tax credit which provide excellent opportunities.  Finally, operating costs are moderate and competitive while service is efficient and effective.

Incentives for investors

The skill, adaptability of its workforce, availability of many highly-qualified professionals in law, accountancy (with all the big accounting firms represented locally), banking, insurance and finance, Malta’s climate, European culture and heritage, its European time-zone, its strategic location, political and industrial stability are among the main reasons behind Malta’s ability to attract foreign investment.

Direct investment in Malta is promoted and supported by the Malta Development Corporation (MDC), a Government agency which administers a very generous incentive package for the manufacturing industry including 10 year tax holidays for new, export-oriented companies.  Other fiscal incentives include investment and accelerated depreciation allowance for existing industry, training grants, soft loans, ready built factories at subsidised rents, duty free importation of plant, machinery and all materials etc..

English and Italian are, generally, spoken fluently with many speaking, at least, one other European language. 

Telecommunications and Accessibility

Malta has a state of the art telecommunications system incorporating a fully automated digitalised transmission system and satellite facilities.  This allows direct access to all countries of the world. 

Finally, Malta is easily accessible by sea and by air.  In fact, Malta has numerous direct flights from most of the capital cities of Europe and also from the Middle East and North African countries to its new Malta International Airport which has been modernised to handle over 2.5 million passengers annually.  In addition, many shipping companies provide regular sailing from Malta to major ports around the Mediterranean and the world.

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