Find Industry and Manufacturing expertise in Malta

The total industrial sector in Malta contributed 33% to GDP in 2010, while within this the manufacturing sectors contribution to GDP was reported at 13.41%, according to a World Bank report published in 2012, a total contribution of €826 Million of the country’s total GDP of €8.16billion (UNdata, 2010). Manufacturing shrank by 19%, from 15.55% to just over 13.21% in 2009 compared to 2008 – partly because of the global economic crisis. The figures shown by the World Bank suggest that the manufacturing sector began to recover somewhat in 2010 (World Bank, 2010). In 2010 24.6% of the labour force in Malta was employed in the industrial sector (UNdata, 2010); of which 20,803 were employed in the manufacturing sector (European Commission, 2012).

Malta’s favourable geographic location, labour force, and abundance of natural resources, including limestone, make for a productive manufacturing industry. These factors, coupled with efficient trade links to Europe, North Africa and the Mediterranean assisted Malta in the move away from agriculture and towards industrial development in the 1960s. Products manufactured in Malta include: medium and high-technology products; clothing and accessories; as well as food and cosmetics. Electrical and optical equipment is one of the largest sub-sectors of the manufacturing industry, contributing €140 million to GDP in 2010.

Large manufacturing companies in Malta include Hetronic Malta, which designs and distributes Radio Remote Controls (RRCs) across the globe. Another manufacturing company originating in Malta which has now entered the global market is Toly Products; founded in 1972 Toly products is now a global supplier of plastic packaging components for cosmetic products sold around the world.

Malta is a major trade partner with the whole of Europe, in particular Italy, Germany, France and the UK. In 2012 Malta exported an estimated €2.78billion worth of commodities, major exports from Malta include: machinery and mechanical appliances; mineral fuels, oils and products; and pharmaceutical products. In the same year Malta also imported an estimated €3.5billion in produce from Europe, including: mineral fuels, oils and products; electrical machinery and parts; and plastic.
In 2012 Malta saw dramatically increased inward foreign direct investment (FDI) flows in the manufacturing sector, a net increase of €94.6 million when compared 2011, the best results obtained for the manufacturing industry in the country since 2004. The total stock of FDI in manufacturing also increased by 15% during the first six months of 2011 compared to the previous year. As of 2012 the total FDI stock from manufacturing stands at just under €803 Million, the highest level since before the economic crisis (Malta Enterprise, 2012).

The Maltese government has introduced policies to attract investment in industry, such as a tax holiday of 10 years for new export-oriented companies, and duty-free importation of plant machinery.

The 2012-2013 World Economic Forum Global Competitiveness report rated Malta as 39 out of 144 countries for production process sophistication, with an overall score of 4.3 out of 7 with 7 being the most desirable. This is a fairy standard score for one of the smaller European countries; the neighbouring country of Italy ranked 28 out of 144 countries with an overall score of 4.9. Additionally the World Bank Ease of Doing Business Index ranked Malta as 102 out of 185 countries (2013).

Malta Enterprise, the national development agency responsible for promoting and facilitating international investment in the Maltese Islands, provides financial aid to companies wishing to invest in the country, including interest rate subsidies for new investors and loan guarantees to assist in the purchase of capital assets. Manufacturing companies are also given allowances of up to 50% of the cost of a manufacturing plant and machinery, and up to 20% of the cost of industrial buildings and structures.