€470 million for the largest industrial infrastructure investment programme

It is a certainty that the loftier the building, the deeper the foundation must be laid. And the establishing of deep and robust foundations for our country’s economic growth and success has been of utmost priority for this government since day one.

It is, as we have often witnessed in the past, an exercise in futility to aspire to success without striving to secure the appropriate groundwork required for such success to take root.

In much the same way as you cannot take flight without wings, our economy cannot reach its full potential without the bolstering of powerful investment. For this to happen, our country needs to be logistically prepared. This past week, together with Prime Minister Robert Abela, we have unveiled the details of the €470 million industrial infrastructure investment programme which is spread out over 8 years.

Past administrations have consistently ignored the need for our industrial areas to be maintained and the adverse repercussions emanating from their consequent degeneration have been devastating. The situation on the ground shows that at the moment only 4% of approved projects are being considered by Malta Enterprise due to space limitation. For investors to set up shop within our shores they require easily available space in which they can launch their operations.

Besides the negative implications this situation brings about for our competitiveness and our attractiveness for Foreign Direct Investment in the long-term, on a more tangible level, our economy will suffer a loss of some €136 million per year in gross value added and an equivalent of 3,000 full time jobs. This, when indirect and induced effects are taken into consideration would be equivalent to €267 million and a gargantuan loss of some 6,000 jobs. It would be immoral to ignore all this knowing that failure to provide these facilities would have such devastating effects on Malta’s economic growth and the future employment of generations to come.

Currently, the readily available built space for industrial enterprise stands at a meagre 6,358 sqm and therefore, this unprecedented investment will provide for the creation of 600,000 sqm of new industrial and environmentally-friendly space, which will not only accommodate new Foreign Direct Investment, but will also create thousands of quality new jobs and provide better quality work spaces and environments and more importantly contribute to sustainable economic growth. This record investment, aims to create new industrial space for businesses to operate and flourish, whilst allowing new business models to operate from our shores, therefore ensuring Malta’s competitive edge and its attractiveness for foreign direct investment, as well as aiding local companies to implement their projects.

The holistic approach of this industrial infrastructure programme is wide and far-reaching, spanning from upgrading of industrial road infrastructure in Ħal Far, Bulebel, Marsa, Kordin and San Ġwann Industrial Estates, the extension of the Life Sciences Park, the Rehabilitation of former Luqa Dump, the rebuilding of the Kordin Business Centre, new industrial facilities in Ħal Far, the development of new bespoke industrial properties and the accommodation of organised business clusters within a business-friendly environment, the construction of various roads to create additional plots to the upgrade of Taxiway Lima to accommodate wide-body aircraft, new services and MRO facilities.

It is an ambitious plan, but one which we, as government intend to see through till the end. We do not simply pay lip service to the supporting of investment but strive to make it as smooth and straightforward as possible for investors to establish their operations, not only through ground-breaking initiatives and schemes but also through our relentless efforts for the continuous development and management of qualitative and sustainable industrial property solutions.

However, while this programme seeks to better accommodate and bolster our industrial sector, and consequently gives more scope for investment, we have ensured that this is not done at the at the expense of the environment nor at the expense of the residents’ quality of life of the areas involved. As pledged by the Prime Minister Robert Abela, this programme will be conducted with a gray-to-green strategy and new facilities built will be aesthetically pleasing and do not tarnish the dynamic of the neighbouring communities. It is also important to note that no virgin land will be encroached upon and only existing industrial land will be used.

This is the way which we believe would positively impact our way forward in a significant way. A holistic vision, which not only enhances our country’s competitive edge, especially where Foreign Direct Investment is concerned but also lays robust foundations for further sustainable economic growth for the long-term. As a government, we have consistently facilitated, through such investments and initiatives, for investment to take root and flourish, smoothing the path as much as we possibly can for visionary investors to pick up the gauntlet and join us in our drive towards the generation of more economic growth and prosperity.