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. Malta is to become a full member of the European Union by May 2004


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.
 

Legal system

Maltese law consists of separate public and private elements. Private law is derived from Napoleonic codes whereas public law is based on English common law, and English authorities can be cited.

Only fully-qualified Maltese lawyers have rights of audience in the domestic courts. Legal procurators (solicitors) are qualified to appear in the Magistrates' court and Small Claims Tribunals only. Advocates may also appear in the higher courts, presided by Judges.

Notaries are required for the drafting of public deeds and for the transfer of land; they are responsible for drawing up contracts and for collecting the relevant taxes. Their fees are fixed by tariff, usually 0.5-1% of the transaction value.

Malta has strict guidelines regarding client confidentiality and the avoidance of conflicts of interest, to which MBVC adheres.
 

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.

Manufacturing now accounts for 21% of employment and is the leading contributor to gross domestic product. In 2002 total manufacturing production amounted to US$ 783.6 million.
 

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 for 2002 totalled approximately US$2.9 billion, compared to total exports of approximately US$2.3 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 42% in 2002.

North America is another significant market absorbing more than 16.6% of Malta's merchandise exports in 2002. 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


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 Maltese lira is roughly equivalent to 2.9 US Dollars or 2.3 Euros (as at 31/12/2003).

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


Population and Language

As at September 2003 Malta's population amounted to just over 388,300. The labour supply was 144,544, of which 136,602 were gainfully employed (96,668 males and 39,934 females).

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 in English but the working language of the Law Courts is Maltese.


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.
 

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 316 square kilometres and these lie about 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 137km, 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 main shopping centre.

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 television network so are many of the satellite stations.
 

Source: Malta Enterprise