Malta Country Update: Fourth Quarter 2002 - PowerPoint PPT Presentation

Loading...

PPT – Malta Country Update: Fourth Quarter 2002 PowerPoint presentation | free to view - id: 3c8bbe-YzUwO



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Malta Country Update: Fourth Quarter 2002

Description:

Malta Country Update: Fourth Quarter 2002 ATRIUM advisors Contents Part I: Intro & Recent Economic Developments Part II: Fiscal Update: Budget ... – PowerPoint PPT presentation

Number of Views:127
Avg rating:3.0/5.0
Slides: 26
Provided by: atriumadv
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Malta Country Update: Fourth Quarter 2002


1
Malta Country Update Fourth Quarter 2002

ATRIUM
advisors
2

Malta is undergoing the structural reforms
necessary to ensure its competitiveness as a
member of the European Union
3
Contents
  • Part I Intro Recent Economic Developments
  • Part II Fiscal Update Budget, Privatization
  • Part III Structural Reforms EU Accession
  • Malta in the Medium Term

4
Part I Introduction Recent Economic
Developments
5
Malta A Competitive Hub in the Mediterranean
  • Area 316 km (sq)
  • Population 395,000
  • GDP Per Capita 9,200
  • Inflation 3.1
  • Unemployment 5.1
  • Foreign Reserves 2 bn
  • EU Applicant Country

6
A Diversified EconomyClosely integrated with
that of Europe
7
Highlights GDP Forecast 3 for Year
  • GDP 2.2 year-on-year in Q2 forecast for year
    3
  • Domestic demand 3.6 year-on-year in Q2
  • Exports electronics decline moderating, others
    hold ground, transshipment activity growing
  • Construction in infrastructure Hospital, ferry
    terminals, port facilities, roads etc

8
Global Downturn Moderate in Malta
9
Inflation Falling Back in LineTemporary food
price hikes in 2001 abating
12-month moving average
Year-on-year
10
Tourism Holds Its GroundSeptember 11 impact
modest compared with peers
  • Arrivals steady overall, but cruise ship tourists
    gain ground
  • Major tour operators Condor, FTI return
  • Hotel Groups Intercontinental, Sol Melia invest
    in Malta
  • Air Malta restructures upgrades entire fleet

11
Part IIFiscal Update
  • Fiscal Accounts, Debt Management, Privatization

12
Fiscal Accounts
  • 2002 Target on track -4.6 central government
    deficit/GDP
  • Revenues as expected minimum tax level, increase
    in compliance, declaration of foreign assets
  • Expenditures in line rising at a slower pace
    (associated w/past wage restructuring agreement).
    New talks underway.
  • Privatization Proceeds MIA privatised other
    deals close
  • No issuance of new long term domestic bonds this
    year, however 2 maturing issues were rolled over.
  • Council of Europe Development Bank to lend Malta
    50 of costs of new hospital. 15 year maturity,
    costs inclusive.

13
Maltas government is determined to bring down
fiscal spending
14
Fiscal Deficit Shrinking
15
Other Budget Items
  • Privatisation Malta International Airport deal
    closed in 2002. Plans for MIA stock floatation
    later this year. Also pending Lotto, Maltaco
    oil terminal.
  • Public Sector Employment Early retirement
    program for drydocks reduces workforce by 700 in
    2003 scheme to employ government workers under
    public private partnership scheme more incentive
    based compensation.
  • Pensions Committee moving ahead but no major
    new plans likely before elections.

16
PART III
  • Structural Reforms
  • European Union Accession

17
Tackling Structural Reforms Legislative Drive
Underway in Finance
  • Central Bank of Malta Act
  • Malta Financial Services Authority Act
  • Financial Markets Act
  • Business Promotion Act
  • Public Finance Management Act
  • Special Funds (Regulation) Act
  • Industrial Relations Act

18
Other Public Sector Initiatives
  • E-Government Initiative Malta has put many
    government services online -- www.gov.mt
  • Education Reforms National Minimum Curriculum,
    Expand availability of computers to all primary
    school classrooms by 2003
  • Malta Enterprise Board Consolidates 3 industry
    entities into one Metco, MDC, IPSE, enhancing
    efficiency and reducing costs.

19
Europe Union Accession Update
  • All chapters will be closed by end 2002.
  • October 2002 Malta declared a candidate country
  • Malta negotiated important concessions on real
    estate acquisition, free movement of persons,
    protection zone for fisheries,special status for
    Gozo

20
Part IVMalta in the Medium Term
  • Niche Manufacturer, Regional Hub, Added Value
    Tourist Resort

21
Moving Up the Value Added ChainMalta now
successfully competes with Asia and Ireland as a
niche manufacturer
  • Baxter (medical supplies) has chosen Malta for a
    new plant over Singapore employees up by 25.
  • De La Rue (security printers) is moving key
    operations from Singapore to Malta.
  • Menrad (spectacle frames) will close Irish
    operations and consolidate in Malta.
  • ST Microelectronics has closed N. American,
    Singapore plants Malta seeing investment in 2002.

22
Broad-based Direct Investment
  • Dowty Automotive (O Rings) investing 11m, making
    Malta a center for European operations
  • Toly Products (cosmetic packages) investing
    US1.2 million.
  • Brandtstaetter(Playmobil moldings) investing
    US13 million in Malta factory
  • Methode Electronics Malta (car switches) US10
    million expansion. Just won GM 2001 Supplier of
    the year 2000 Ford Excellence Awards. New orders
    with Fiat.
  • Infratec Pro (scientific instruments) will invest
    US1.4 million in expanding its Maltese
    facilities.

23
Malta as a Regional CenterMalta developing as a
hub for services and industry
  • Bank of Valletta promotes Mediterranean banking
    alliance.
  • Malta Stock Exchange is building capacity, and
    fostering Mediterranean Alliance of Stock
    Exchanges including Egypt and Tunisia.
  • Malta Shipping Register now worlds 4th largest.
  • Lufthansa establishes aircraft service base in
    Malta.
  • UCIMco to distribute cars to North Africa from
    Malta.
  • Corinthia Hotels expanding operations in the
    region Sandals of Mediterranean.

24
Summary Conclusions
  • Diversified economy softened 2000-2001 downturn
    and helps upturn now underway.
  • Expect GDP recovery in 2002 close to 3 forecast
    with growing consumption, steady export orders
    and tourism , revival in construction.
  • Fiscal accounts largely on track for 4.6
    deficit cost containment efforts continue and
    numerous structural reforms underway.
  • EU application progresses, however national
    elections and referendum will remain a cause of
    uncertainty.
  • Malta winning new business in several areas,
    creating positive signals for broad based
    investment benefits only beginning to be felt
    in economy.

25
Thank you
  • .
About PowerShow.com