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Malta Business 2022
Business in Malta my thoughts
Before we talk about business in Malta, it would be important to take a closer look at malta, not only the fundamentals are important, but the whole package.
Malta is an island country found in Southern Europe. It is a part of the archipelago in the Mediterranean Sea. Previously, the island nation was referred to as Melita, but now it is officially known as Repubblika ta’ Malta in the Maltese language, translating to the Republic of Malta Repubblika ta’ Malta.
Malta is not only an exquisite and serene country but also a historic country entrenched in Roman Catholicism. The country has played a major role in trade and World and regional wars due to its strategic location and size.
Some remarkable facts concerning Malta:
- It is the world’s 10th smallest country with a size of 316 square km
- It is the world’s 4th densely populated country in the world with an estimated population of 511,000 as of 2019
- It became a British colony on 23rd July 1813 and regained self-rule on 21st September 1964 — later it became a Republic on 13th December 1974
- Malta is a member state of the United Nations, Commonwealth, European Union, and Eurozone
- Its capital city is Valletta with the town of St. Paul’s Bay being the largest
- Its official languages are Maltese and English
- Roman Catholic is the official religion in Malta
- Its official currency is Euro (€) (EUR)
Malta’s Location
Malta is a South European island in the Mediterranean Sea. It has a geographical area of 316 square km and is bordered to the east by Tunisia, north by Libya, and to the south by Italy. Previously, it was considered a North African island since it is located on the African tectonic plate.
Malta has several bays indented on its coastline, which serve as deep natural harbors. Despite being an island nation, Malta does not have any permanent rivers or lakes. However, they have Several watercourses such at Baħrija near Ras in-Raħeb, which provides fresh water throughout the year.
The highest point in Malta is found in Ta’ Dmejrek, at 253 m. Limestone formations primarily dominate Malta’s islands.
The Islands of Malta
Malta has five islands. These include Malta (the largest), Gozo, Comino, Kemmunett (Comminotto), and Filfla. Only Malta, Gozo, and Comino are inhabited. Malta’s islands are characterized by a well-defined escarpment that bisects it along the Victoria Lines Fault and broken upper coralline mesas, especially in Gozo.
Climatic conditions, Flora and Fauna in Malta
Malta experiences Mediterranean climatic conditions with hot summers, warm and sporadically wet autumn, and short, cool winters with adequate rainfall. The annual temperature averages at 23 degrees Celsius during the day and 15.5 degrees Celsius during the night. You will rarely hear of snowfall experiences in Malta. However, the humidity in Malta is quite high, averaging at 70 percent annually.
Malta is vast with both indigenous flora and fauna. Most of its flora is drought resistant, and the fauna has adapted to survive on the Island. Maquis is found along valleys and below escarpments. Garigue scrub is the most common vegetation in Malta. Grasses, thistles, leguminous, bulbous, reed beds, club mosses, and sedges are also found in places with abundant water and wetlands. Unfortunately, Malta’s vegetation has been depleted due to human activities such as deforestation.
Malta has various mammals, including Sicilian shrew, bats, Algerian hedgehog, Mediterranean chameleon, Etruscan shrew, rabbit, and weasel. It also abounds in reptiles such as the Maltese wall lizard, the Turkish gecko, and the leopard snake. The painted frog is Malta’s only amphibian. The island country also has several bird species such as the storm petrol, the Mediterranean and Cory’s shearwaters, the Spanish sparrow, and the blue rock thrush.
The people of Malta
Malta is one of the most densely populated countries globally with a population estimate of 514,564 as of 2019. The Maltese population is majorly composed of native Maltese who trace their ancestry background from Carthaginians, Phoenicians and Italians, among other Mediterranean communities. Also, some other small ethnic groups exist on the island, namely, the Briton retirees, Sindhis, Palestinians, and Greeks.
Like other European countries, Malta also has an ageing population, and the life expectancy ratio stands at 83 years.
Malta’s official languages are Maltese and English. Though the Maltese language is preferred to English, it is mostly used in schools and for settling official business deals. Other languages used in Malta are Italian, French, and sign language.
Malta has been a religious country since Biblical times. The official and the state religion of Malta is Roman Catholicism. This is why it is considered an independent province of the Roman Catholic, accounting for approximately 83 percent of the population. Other religions practised in Malta are Protestantism, Judaism, Islam, and Buddhism.
Education in Malta
Malta has a literacy level of 99.5%. The education system is based on the British system, whereby primary and secondary school education is compulsory. Both the state and the Church provides education free of charge. There are also some private schools in the country. Tertiary education is also well catered for in Malta being provided from various universities and colleges.
Malta’s Culture
Malta’s culture is a reflection of Phoenician, Arab, British, and neighbouring Mediterranean cultures. Their way of life is also greatly influenced by the various powers that dominated the island country. The Roman Catholic Church also plays a great role in shaping Malta’s population’s culture, being a significant aspect of their life.
The Maltese traditional and cultural music is based on what’s known as għana, whereby the music is performed by employing folk guitar melodies as the background tune. Usually, the songs are sung in a more like an argument tone, making it fun. However, Contemporary western music has also become part of Malta’s most prevalent genres.
Maltese have a good taste for art, literature, poetry, and tales. The country is renowned for its memorable artists such as Caravaggio.
Most of the Maltese dishes are influenced by Sicilian and English cuisines. One of the most remarkable traditional dishes is fenkata. You can easily find in almost all restaurants in the country. Potatoes are largely and frequently consumed in Malta. When it comes to drinks, Wine is a preference, and it gets produced in the country.
Most festivals are religious-based. However, people also love celebrating life events such as weddings and birthdays.
The major sporting activities are; football, basketball, polo, rugby, athletics (track and field), Swimming, water polo, billiards, and tennis. Malta is one of the world’s most charitable country.
Governance in Malta
Malta is a unitary multiparty republic where the President is the constitutional head of state. At the same time, the Prime Minister is the head of government.
Malta’s parliament is made up of the President and the unicameral House of Representatives of Malta. The Speaker presides over the legislature. The Parliament elects the President upon the election of the members of the House of Representatives by a universal for a 5-year term. The Presidential role is usually ceremonial.
The Chief Justice is the head of the Judiciary of Malta and Malta’s legal system is based on English law though the precedents are not binding. Malta is recorded to be the second country in the world in voter turnout during elections.
Malta has its armed forces whose sole role is to defend the Island. Military conscription is voluntary for everyone as long as they have attained an age of 18 years.
Infrastructure and Transport Systems in Malta
Malta has a well-developed road system that connects all towns and villages. Usually, buses provide commuting services from Valletta inexpensively and frequently to facilitate internal transportation. Malta’s number of cars per household is one of the highest in Europe. Unfortunately, the island nation does not have any railway. Ferry services are also top-notch in Malta.
When it comes to air transportation, Air Malta, the national airline of Malta, connects the country with most European capitals, North African countries, the Middle East, and North America.
Malta also has a good telecommunication network with many households in possession of a mobile phone. The use of the internet has exponentially grown over the years.
Malta’s Economy
Malta is a highly industrialized country. For this reason, it is classified as a high-income country by the World Bank, an advanced economy by the International Monetary Fund, and an innovation-driven economy by the World Economic Forum. The country’s GDP stood at $23 billion as of 2019. Malta is a member state of the European Union, the World Trade Organization, and the Organization for Security and Co-operation in Europe. These associations have greatly helped to boost its economic grounds.
The major trading partners of Malta are Germany, Libya, France, United Kingdom, Italy, Turkey, Greece, and China. Its main exports are mineral fuels, machinery, mechanical appliances, printed books, pharmaceutical products, aircraft and parts, toys, games, and sports equipment. On the other hand, its major imports include plastics, mineral fuels, oils and products, electrical, machinery, and mechanical appliances.
Malta’s economy has grown tremendously courtesy of its strategic location, open market economy, multilingual population, productive labor force, low corporate tax, and well-developed finance and ICT clusters.
The major industries driving Malta’s economy are:
- Service Industry
- Tourism
- Manufacturing
- Trade
- Construction
- Food and Beverage
Malta was ranked the 6th country in Europe with the least unemployment rate. Malta’s financial year runs concurrently with the calendar year.
Operating a business in Malta
Malta is one of the world’s best countries to invest in as a local or foreign investor. It has a strategic location in the Mediterranean; it has a top-notch infrastructure, it is politically stable, and is a member of the European Union, making it an open market. The government has also created a conducive environment that supports local and foreign investment such as low taxation and privatization of most government-owned firms.
Some places worth investing in are manufacturing, tourism, maritime, real estate, and international trade. Offshore companies are highly encouraged because they play a huge role in the growth of the economy. Starting a business in Malta is very easy, especially because you can rely on numerous agencies to help you quicken the process.
Succinctly Malta is a breathtaking country, full of opportunities and welcoming and hospitable people. Also, being an island country, there are numerous recreational and fun activities for tourists. Therefore, whether it is a vacation or an investment opportunity one is looking for, Malta can serve both purposes in the right manner.
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