The recent political crisis has hit Malta by storm. The developments were indeed unfortunate as the country was progressing well in an unprecedented growth mode. Thriving economic sectors coupled with foreign direct investment created prosperity throughout and a strong, optimistic outlook for the future.
Following recent allegations, implying that people within the highest organisational structures of the country were somewhat involved in covering up the assassination attempt, Malta has been under the spotlight, being closely monitored by its own citizens, together with international media. Many are complaining that this controversy is impacting the country’s economy with dipping sales across the whole board. Although the political instability does indeed concern people and makes them less inclined to spend, the streets of Malta have been brimming with activity over the past Christmas season. The streets of Valletta were swarmed with people shopping and eating at restaurants. Most restaurants were fully booked and would not provide a table without a booking. When people are out swarming the streets, are sales really that bad?
One of the main attractions which took centre stage at Valletta was the Christmas market and the imposing “Valletta eye” which could be seen from afar.
Apart from these minor observations, can we really expect that Malta will not manage to get out of this hurdle? Amidst all the negative media reports, let us look at the established foundations of Malta. As it stands today, the country is one of the most popular destinations for businesses seeking to set up shop and expand their operations. The beneficial tax regime offered by Malta makes the country an attractive jurisdiction, together with the qualified workforce, the ability to find English-speaking staff and the overall perceived safety. Malta has a track record for business growth across various industries such as online gaming, financial services, tourism, property and the construction sectors. Apart from this, many Maltese entrepreneurs are very capable and hardworking. Let us also not forget that Malta has made its intent perfectly clear to attract new industries such as the blockchain and cryptocurrency sectors.
When considering all these positives, can one really conclude and anticipate that Malta is in for a torrid time? What is your view on Malta’s future? Will the current predicament eventually subside and would things go back to normal? Let us know in the comments section below.