Doing Business in Malta

The following information is extracted from “Doing Business in Malta: A Commercial Guide for U.S. Companies.” 

Market Overview                                                                            

• Malta, a member of the European Union since 2004, offers good business and financial services, excellent telecommunications and flight connections, availability of highly skilled personnel, labor costs that are competitive with other western European countries, a sound legal system and a low crime rate. 
• Malta’s geographical location, fiscal and other investment incentives, political stability and modern infrastructure make it a natural hub for companies seeking to do business in southern Europe and northern Africa.  In its 2006 report, the UN listed Malta as a ‘frontrunner’ in the high FDI potential category.  More than 200 international companies have established operations in Malta.
• During 2006, the U.S. was Malta’s second largest trading partner outside the EU, accounting for 8.2% of total trade..
• During 2006, The U.S. supplied 5.4% of Malta’s total imports and bought 12.6% of Malta’s total exports.
• Trade between Malta and its key trading partners was greatly influenced by the presence of ST Microelectronics in Malta.  ST imported substantial amounts of semiconductor materials from and exported significant amounts of finished semiconductors to these countries.
• Key items Malta imported from the U.S. include: aircraft engines and parts, water purification equipment, parts for electrical power generation, and cereals, mainly for the manufacture of bread.  In addition to semiconductors, Malta exported rubber and rubber articles, automotive switches, medical devices and products,  toys and games.
• Malta joined the Eurozone in January 2008.  Since May 2005, Malta’s currency the Maltese Lira (LM) had been fixed to the Euro at a rate of 2.35 EUR to 1.00 LM under the European Exchange Rate Mechanism II .

Market Challenges                                                                                    

• Malta is a small island in the middle of the Mediterranean with around 400,000 inhabitants.  Therefore the market is very small.  For many companies that manufacture for export, Malta serves as a stepping stone to nearby markets.
• However, lack of direct flights with the United States and the long distance involved in shipping goods directly from the U.S. has traditionally limited the amount of bilateral trade.  (Although there is a direct shipping connection to Malta for containerized shipments, partial shipments must be shipped through neighboring European ports.)  Local importers have succeeded in overcoming these difficulties by importing high value-low volume items and/or source the goods from U.S. subsidiaries or associates in Europe or other nearby states.

Market Opportunities                                                                   

• Sectors: Information Communications Technology (ICT), Financial Services, Oil and Gas, Education, Tourism, infrastructure and general construction, Information Handling, Pharmaceuticals and Medical Equipment, Automotive components, Light Engineering, Alternative Energy, Franchising and security products.
• Malta’s full potential for becoming a center for international business in the Euro-Med region is gaining momentum; a growing number of companies are using Malta as a base for operations in North Africa – particularly Tunisia and Libya.
• Services represent the largest and fastest growing sector of the Maltese economy.  Banking, investment, insurance, communications, software development, tourism, ship-repair/aircraft servicing, health care services, aviation, logistics, film industry, professional services and back office operations are the largest service suv-sectors.
• Among agricultural products, the best U.S. prospect is in grain products, particularly red winter and soft wheat.

 Market Entry Strategy                                                                  

• The application of uniform EU standards and certificates makes it easier for U.S. firms with prior experience doing business in Europe to expand their business interests in Malta.
• Although not required, most foreign suppliers appoint an agent or distributor to market their products in Malta.  Franchising, licensing and joint venture agreements are also common.  Several companies have chosen to set up an operating/regional office.
• For public sector procurement, U.S. companies are advised to partner with Maltese companies to increase their chance of success.

U.S. firms considering investing in Malta should review the relevant regulations with the quasi-government investment promotion agency Malta Enterprise: http://www.maltaenterprise.com/

Business Customs                                                                                   

In general, what is considered good business practice in the United States also applies when doing business in Malta.  Business people in Malta appreciate prompt replies to their inquiries, and expect all correspondence to be acknowledged.  Conservative business attire is recommended at all times.  Business appointments are also required, and visitors are expected to be punctual.

Maltese buyers appreciate quality and service, but are also interested in delivery times and price.  Care must be taken to honor delivery dates and provide prompt after-sales service.

While Maltese is the first official language, English is also an official language.  Widely spoken and understood, virtually all business is transacted in English.

Travel Advisory                                                                             

Current travel advisory information for Malta is available on the Department of State’s website at: http://travel.state.gov/travel/cis_pa_tw/cis/cis_963.html

Travel advisory information for all countries is available at: http://travel.state.gov/travel/warnings_consular.html

Visa Requirements                                                                                   

Every U.S. traveler to Malta must have a valid U.S. passport.  No visa is required for U.S. citizens visiting Malta for less than 3 months but one is required for longer stays.  On arrival in Malta, American citizens normally will be asked how long they intend to stay in Malta.  U.S. citizens planning to work in Malta must first obtain a work visa from the Immigration Section of the Police Department in Malta.  For further information concerning entry requirements for Malta, travelers can contact the Maltese Embassy at 2017 Connecticut Avenue N.W., Washington D.C. 20008; tel: (202) 462-3611 or 462-3612 or fax (202) 387-5470 or the Maltese Consulate in New York City; tel (212) 725-2345.

Maltese citizens traveling to the U.S. must have a U.S. visa and a valid Maltese passport.  Maltese citizens may apply for a U.S. visa at the American Embassy, Development House, St Anne Street, Floriana, Malta, but they should first follow the instructions for visa applicants contained in the American Embassy website (see below). U.S. Companies that require travel of Maltese citizens to the United States for business purposes should advise the visa applicants to consult the website..

State Department Visa Website: http://travel.state.gov/visa/index.html

United States Visas.gov: http://www.unitedstatesvisas.gov/

Consular/Visa Section, U.S. Embassy, Valletta, Malta - http://valletta.usembassy.gov/visa_intro.html

Telecommunications                                                                   

Go, formerly a state monopoly, is the primary fixed line provider. International telecommunication costs to and from Malta compare favorably with those in any large U.S. city.  Telephone calls to the U.S. are chargeable at around 4.5 cents per minute (via VOIP service).  Telephone calls to the U.S. may also be charged to international telephone cards such as AT&T, MCI and Sprint.  International and local calling cards can also be bought locally.  The international rates compare favorably with U.S. rates.  International directory (AT&T direct) inquiries may be reached by dialing 800-901-10 followed by 1-800-837-2396.  The country code for Malta is 356; there are no city codes.

The cellular network throughout Malta is excellent.  One needs a tri-band or quad-band GSM (unlocked) cell phone to be able to make cell calls from Malta to the U.S. and vice versa.  GSM cell phones may be rented or purchased locally.

Transportation                                                                               

Malta has a modern and improving transportation infrastructure. 

• Malta Freeport is a major maritime transshipment logistic center in the Mediterranean.  It offers regular networking to around 100 ports worldwide.  http://www.freeport.com.mt
• Malta International Airport, a modern facility that handles 2.5 million passengers per annum.  http://www.maltairport.com
• Direct scheduled flights to 37 major centers in Europe, North Africa and Middle East via Air Malta, the flag carrier (http://airmalta.com) and other air carriers.
• Malta is a major cruise ship destination with 327 cruise ship visits and an estimated 320,000 visitors in 2005.  The cruise ship terminal, in the historic Grand Harbor, was refurbished in 2005 as part of the “Valletta Waterfront” project at a cost of around $30 million.  http://www.vallettawaterfront.com
• Inland transportation is normally by bus, private car or taxi.  Buses are frequent, safe and inexpensive. There are many car rental agencies around Malta.  As in the UK, steering wheels are on the right and traffic drives on the left.  Traffic is normally heavy during rush hours.  Taxi service from Malta International Airport to all localities is based on a fixed tariff; it is advisable that one books and pays at the taxi office at the arrival lounge of the airport.  A regular ferry service operates between Malta and its sister island, Gozo.  http://www.maltatransport.com/en/index.shtml?s=A9FC0415-7D5C22134614-10E7

Language                                                                                        

Maltese is the official language.  English is the second language.  Widely spoken and understood, all business is conducted in English.

Health                                                                                                           

Good quality health care is widely available.  A new state-of-the-art public hospital opened in 2007.  The GOM maintains day care centers in almost every town.  There are also several private clinics.  Both Malta’s general hospital and the private facilities are equipped with modern diagnostic equipment.  General hospitalization, emergency care and most routine surgery can be handled at both the Government hospital and private clinics.  Malta has many English-speaking medical and dental specialists, most of whom were trained in Western Europe and some in the U.S.

Local Time, Business Hours, and Holidays                           

The time in Malta is one hour ahead of Greenwich Mean Time and 6 hours ahead of the East Coast of the United States (Eastern Standard Time).

Government offices open from 7:45 am to 5:15 pm, Monday through Friday, from October to mid-June.  Between mid-June and September, government working hours are reduced to 7:30 am to 1:30 pm, Monday through Friday.  Private sector companies generally follow the government’s work schedule, but do not operate on half days in summer.  Banks are open Monday through Thursday, 8:30 am through 2:00 pm, and 8:30 am through 3:30 pm on Friday.  On Saturday, the bank’s opening hours are: 8:30 am-12:00 pm, but some branches are closed in summer.  Commerce and industry business hours are 8:30 am through 5:30 pm, Mondays through Thursdays, and Saturdays 8:00 am through 1:00 pm.  Retail establishments are closed on Sundays.  However, several establishments located in tourist areas or those that sell primarily tourist related items do open on Sundays and public holidays.

Web Resources                                                                             

Go: http://www.maltacom.com

Vodafone Malta: http://www.vodafone.com.mt/jsp/portal/frontpage_segmentation.jsp

Onvol: http://www.onvol.net

Health Department: http://www.sahha.gov.mt/pages.aspx