Digitization is changing everything and the manufacturing industry is no exception. Malta’s manufacturing industry is at the forefront of the 4th industrial revolution—the nation is one of the few countries that have effectively embraced Smart Manufacturing. The future of the manufacturing industry in Malta is even brighter, with cost-saving and efficient practices being put into place.
Smart Manufacturing in Malta
Malta already holds a strong position as an international manufacturing center. The Maltese government seeks to solidify that position in the coming era of disruptive technologies. Interests in smart manufacturing technologies have been boosted by government incentives. An initiative known as the Business Enhance ERDF Grant Scheme was set up for this purpose. The scheme seeks to enable research and development in business by making funding available for such operations. Businesses are able to adopt new technology and migrate to digital practices at lower costs as a result of these grants.
Maltese authorities are well-known for adopting stances that encourage foreign investment and development of business as well. The business environment in Malta not only supports businesses through low taxes and flexible business structures but also creates an atmosphere that is welcoming to innovation in the manufacturing industry. The idea is to encourage innovative technology to be incorporated right from the establishment through design. These measures have allowed Malta’s manufacturing industry to be at the helm of technological advancements as their systems are already geared up to implement new technologies. The benefits are realized as soon as implemented because of how well the industry is suited to adapt to change.
Malta’s leading Manufacturing Industry
The thriving manufacturing industry contributes as much as 10% to Malta’s GDP. This makes it the second largest industry in Malta. The Manufacturing sector is a supporting pillar of the economy and employs up to 11% of the population. The workforce is well adapted to changes in manufacturing processes and the global environment with the support of a strong education system. Malta boasts of world-class infrastructure and also included are its ports. The ports offer a great advantage for the export of manufactured goods.
The manufacturing industry is also supported by a government agency also responsible for running Malta’s 10 business parks. These parks have infrastructure well suited to the smart manufacturing processes businesses are adopting—making the transition easy for businesses who choose to embrace new manufacturing technologies. These facilities also cover several research and development resources.
Benefits of investing in Malta’s Manufacturing industry
In respect to its EU counterparts, the island holds more benefits to investors because of the the country’s ability to quickly grasp new technologies such as smart manufacturing. Being in close proximity to different trade partners such as Africa, the Middle East and as an EU member state, the importation of raw materials and export to established and developing markets are easy and swift. Malta’s tax laws and ease of doing business extends to the manufacturing sector as well.
A trend has seen large companies dealing in electronics take the initiative to move their factories to Malta in order to benefit from the island’s business environment. The environment also attracts research and development business units making Malta the breaking ground for new advancements in smart manufacturing.
For more insights on the Maltese manufacturing industry, you may contact SIGTAX. Our invaluable team, which consists of expert lawyers, accountants and consultants will give you detailed information and counsel in each step. Our lawyers can provide you with finer details on the legal aspects pertaining to the manufacturing industry in Malta so that you don’t skip any necessary steps.