Malta invites Indian tech firms to invest in ICT
Thursday, 02 November 2006, 20:30 IST
Printer Print Email Email
BANGALORE: The tiny island nation of Malta in the Mediterranean Sea has invited Indian technology firms to set up near-shore facilities to serve European and North African markets. As a member of the European Union (EU), Malta has given priority to the development of the information and communication technology (ICT) sector, with a host of incentives and investor-friendly policies to attract foreign investments. "Being geographically located closer to European and North African countries, Malta can be an ideal destination for Indian IT and ITES firms to set up near-shore facilities for serving their customers in the region," Sullivan Mediterranean Group (SMG) managing director George E. Sullivan told IANS here. A delegation from the business advisory services division of SMG, which provides consultancy to the Maltese government for promoting the ICT sector, has come calling in India's silicon hub to participate in the Bangalore IT.in event and interact with technology firms here. To attract overseas investments in the knowledge sector, Malta is offering a package of incentives such as reduced rates of income tax (five percent) on company profits, tax credits up to 65 percent on capital expenditure, low-interest loans and up to 80 percent financial assistance for training employees. "We are showcasing our offerings to the Indian IT/ITES firms, especially in the SME sector having presence in Europe or planning to explore the North African region. We have met officials of Wipro and other IT firms in Bangalore to hardsell Malta as their next investment destination," Sullivan said. Ranked 19th among the 102 developing countries by the World Economic Forum, Malta is considered one of Europe's profitable investment locations. Economic and commercial linkages between northern and southern countries of the Mediterranean make Malta an ideal base for the growth of the ICT sector. "With English as the language of the business community, Malatese employees are known for their adaptability, flexibility and integrity. Wages and social costs average around a third of Britain," Sullivan pointed out. Incidentally, Tecom Investments of Dubai, which has built the Dubai Internet City, is constructing a Smart City in Malta's capital Valetta to house global firms in the knowledge sector. To become operational by 2008, the Smart City will create jobs for about 5,600 people under one roof. Global IT majors Microsoft, IBM and HP have already set shop in Malta, working with the government on various projects in the ICT arena. The projects include e-learning facility, training for high school and college students and e-payment gateway. "We recognise a sound IT and telecom infrastructure will drive the economic development of our island nation. With a compact population (400,000) and sound educational system, we generate a skilled workforce for the ICT industry," Sullivan added. Besides quality power, modern transport, wide roads and air connectivity, Malta boasts of digital networks and large bandwidth through satellite technology and high capacity fibre-optics, linking several European countries with wireless Internet and VoIP services. Currently, about 200 IT firms employ about 6,000 techies in Malta and in its sister island Gozo. Some of them provide second and third level support to many British firms. With a shared western culture and political democracy, Malta has legal institutions, accounting standards and trade practices similar to India and Britain. Malta, which has a consulate with an honorary counsellor in Mumbai, is setting up an embassy in New Delhi by the end of the year following the scaling up of ties between the two countries.
Source: IANS
siliconindia