Overview

Malta exports about US$3.6 billion worth of goods and services to more than a hundred countries every year. Annual imports for the same period amount to about US$3.98 billion. Malta became a full member of the European Union in May 2004.

Few people know that Malta manufactures and exports a broad spectrum of goods and services ranging from sophisticated industrial equipment to general consumer goods such as giftware, cosmetics, toiletries, furniture, foodstuffs, footwear and clothing items.

Visitors to Malta are assured of a warm welcome. People coming over to the Maltese Islands for the first time are invariably struck by the sense of hospitality and friendliness of the Maltese people. The visiting business person will find that it's a pleasure to do business in Malta. Malta is in many ways an ideal place to mix business with pleasure.

Population & Language

Maltese is the national language, but for official purposes both Maltese and English are given equal status and use in the Government. Most business correspondence is normally in English.  The Maltese flag is made up of two stripes, white on the left and red on the right.  The George Cross which lies on the white stripe was awarded to the Maltese people by King George V.

Geography

The Maltese Islands, consisting of Malta, Gozo and Comino, are situated almost exactly in the centre of the Mediterranean Sea between Europe and North Africa.

The total area of the islands is 320 square kilometres and these lie 95 kilometres south of Sicily and 290 kilometres from the nearest point on the North African coast.

The main island, Malta, is 27 kilometres long and its widest point measures 14 kilometres.

Malta has neither mountains nor rivers. The island is characterised by a series of low hills with terraced fields on the slopes. Malta's coastline, covering a total length of 137 kms, has many natural harbours, bays, creeks, sandy beaches and rocky coves.

The capital city, Valletta, is situated on the main harbour and is the country's Governmental, commercial and shopping centre.

Climate

Malta enjoys a moderate climate of warm, dry summers and mild winters. The proximity of all parts of the island to the sea ensures that cooling breezes are often in evidence. Earthquakes, floods, hurricanes and other violent natural occurrences are unknown on the islands.

Average annual rainfall is 590 mm and temperatures range from 12°C in the winter months to over 30°C in August, the hottest month of the year.

History

Malta's strategic position and its natural harbours have often made it an object of contest among competing powers.

The Maltese Islands, which were converted to Christianity by the visit of St. Paul almost two thousand years ago, have been occupied through the ages by many different races including the Phoenicians, Carthaginians, Romans, Arabs, French and British, and retain an unmistakably European culture. Malta is also well known for its links with the Knights of St. John who were based in the country for 268 years and who left a lasting mark on its history and architecture.

Malta was a British colony from 1801 until 1964 when it became an independent sovereign state. In 1974 Malta became a Republic and today it remains a member of the British Commonwealth whilst enjoying close links with the European Union.

Holidays

January 1; February 10; March 19, 31; Good Friday; May 1; June 7, 29; August 15; September 8, 21; and December 8, 13, 25.

Government offices are generally open Monday through Friday from 8 a.m. to 4:30 p.m. in Winter and from 7:30 a.m. to 1 p.m. in the summer. Banking hours are from 8:30 a.m. to 12:30 p.m. Monday through Friday and from 8:30 a.m. to 12 noon on Saturday. Commercial and industrial establishments generally are open from 8:30 a.m. to 4 p.m. Monday through Friday.

Currency

Malta’s currency is decimal. The unit of currency is the Maltese lira which is represented by the symbol Lm. The lira is divided into 100 cents. One MaItese lira is roughly equivalent to 2.38 euros.

There is no limit to the amount of foreign currency visitors may bring into Malta and any unspent foreign currency can be freely repatriated.

Government

Malta is a Republic with a democratic system of Government. The titular head of state is the President who is appointed by the House of Representatives. Legislative power lies in the hands of the House of Representatives which currently has sixty five members drawn from the two major political parties. Elections are held every five years.

Executive power is exercised by the Prime Minister and the Cabinet. The Prime Minister is usually the party leader commanding the greater support in the House.

Accomodation

The Maltese Islands offer varied accomodation in hotels, guest houses, holiday complexes and in self-catering apartments and villas. The islands boast a number of hotels of international standard.

Restaurants

The food in Malta is European and tends to be based primarily upon Italian tastes. Domestic menus are often set by the food currently in season, particularly in summer with its varieties of fish and fruit. However there are numerous restaurants all providing a varied menu designed to suit every palate.

The Media

Malta has a flourishing press, as well as radio and television, both in English and Maltese. In addition, various UK and other European newspapers are sold in Malta on the same day they are published, and all major European and international magazines are sold locally. Over 20 Italian TV stations are clearly received in Malta, and through a cable and digital television networks. So are many of the satellite stations.

Recreation

Malta's climate, its historical heritage and its culture combine well in providing a varied range of sports and recreational activities. Various sports are catered for through local clubs such as scuba-diving, sailing, water-skiing, wind surfing, tennis, golf, squash, basketball and football. Facilities are also available for less popular activities such as badminton and bowling.

For those who enjoy the nightlife, Malta has many bars, restaurants, cafes, discotheques and also a Casino. For those who like the theatre, various operas, concerts and plays are staged during the year.

There are also several museums and archaeological sites which, beginning from the Neolithic temples, trace over 5,000 years of history.

The Economy

Until 1979, Malta was used as the main naval base for the British Mediterranean Fleet and, as a result, received a rent which together with other income indirectly generated from such use, accounted for a substantial portion of the country's total earnings. As this source of income drew to a close there was a shift in emphasis in Malta's economic policy towards the development of the manufacturing and tourism industries.

Malta's real GDP growth in 2005 has been quoted at 2.5% in the European Commission's Economic Forecasts (Spring 2006). The Services sector, primarily those related to Information Technology and Financial services make up an important percentage of Malta's GDP and the aim is for this figure to continue increasing in the next few years. Maltese manufacturing is currently adapting itself to focus on higher value added production. The island is perfectly placed to take advantage of the European Union's focus on the Mediterranean and developing African markets, as well as US and Asian interest in the EU. Low labour costs and an incentive scheme aimed at value-added export manufacturing have attracted a large number of international companies to set up manufacturing sites in Malta.

International Trade

International trade, and in particular export activities, represent Malta's economic lifeline. Measures designed to increase the competitiveness of Maltese exports and to widen the range of incentives available to the industrial investor are given priority.

The importance of this emphasis follows from the fact that apart from its tourist attractions, Malta lacks natural resources and has to import a substantial part of its requirements.

Annual imports are approximately of US$3.98 billion, compared to exports of approximately US$3.59 billion for the same period.

The Maltese have always been convinced that their future lay with exports. Exports of manufactures, along with tourism, transport-related services such as transhipment and ship repair, as well as financial services are now the prime motors of Malta's economic growth and development.

Maltese goods make their way into practically every country of Europe, and also into North Africa and the Near East. However the European Union consistently take the lion's share of Malta's exports - approximately 57% in 1996. This pattern was favoured by a long-standing Association Agreement which gives the majority of Maltese exports duty-free access to markets in the EU, and by large amounts of direct investment in the Maltese economy by enterprises from the EU. This reflects Malta's cultural and geographical proximity to the largest market in the world.

North America is another significant market absorbing more than 12% of Malta's merchandise exports in 1996. In Canada and the USA, the General System of Preferences (GSP) has provided Maltese exporters with an entry into markets which promise to become more important for Malta over the next few years. Other important markets include the Gulf States and North Africa while exports to South-East Asia are growing as the electronics industry develops and consolidates its operations.

The challenge facing Malta is to simultaneously increase, diversify and deepen its exports. New products must be added to the export portfolio, while fresh markets must be continuously sought and developed. The continued growth of the Maltese economy depends on export success, whether in manufacturing or in services.

Exports

Malta’s competitive edge as a supplier is not simply its proximity to Europe, North Africa and the Middle East, but its reputation for quality and reliability. Maltese companies tend to be large enough to cope with substantial orders yet small and flexible enough to care for their clients and to respond to their requirements with short lead times and quick deliveries.

There are several hundred manufacturers and exporters in Malta who are able to supply a remarkably broad selection of goods and services. Here are some of the product categories exported from Malta:

- Food and beverages
- Clothing, footwear and accessories
- Furniture and fixtures
- Giftware and home accessories
- Cosmetics and toiletries
- Health, hygiene and cleaning products
- Paper and stationery products
- Plastic and Metal products and components
- Building Materials
- Electronic and Electrical equipment and parts
 

Related Link/s : (all links open in a new page)

CountryProfiler.com (A very good country profile site)
VisitMalta.com (Malta's official tourist website)
SearchMalta.com (Malta's best search engine)