Malta Chamber wary of decrease in FDI flows

Investment
Photo by Frank Busch on Unsplash

Statistics published in a report by NSO, the National Statistics Office, show that during the first six months of 2019, the stock position of Foreign Direct Investment (FDI) in Malta stood at €184.7 billion, an increase of over €8 billion when compared with the first six months of 2018, while Direct Investment abroad amounted to €60.2 billion, a decrease of €0.9 million over the amount registered in the stock position registered in 2018

Foreign Direct Investment in Malta

Asked by Newsbook.com.mt, Andre Fenech, Malta Chamber’s Head of Policy, said that the Malta Chamber of Commerce views the increase in the stock position of Foreign Direct Investment (FDI) as positive however one needs to address the decrease in FDI flows. Andre Fenech explained that many factors could have led to this decrease when compared to the same period in 2018.

The Head of Policy of the Malta Chamber of Commerce stated that one needs to also consider the statistics for the last six months of 2019 once they are published.

The NSO report shows how foreign direct investment flows were estimated to be €1.7 billion during the first six months of 2019, a decrease of €166.3 million over the corresponding period in 2018.

Financial and insurance activities accounted for 93.9% of Foreign Direct Investment flows in Malta.

In June 2019, the stock position of FDI in Malta amounted to €184.7 billion, an increase of €8.9billion over the corresponding month in 2018.

Statistics show that financial and insurance activities recorded the largest share at 97.0 % of FDI stocks in June 2019.

Direct Investment Abroad

Referring to the Foreign Investment Abroad, his comments to Newsbook.com.mt, Andre Fenech explained that statistics are more positive. Fenech also said that as a country Malta needs to seek more local companies interested to invest abroad.

The report also shows that during the first six months of 2019, direct investment flows abroad totalled €3.2 billion, an increase of €51.7 million over the amount registered in the previous year.  These changes are mainly attributed to changes in equity capital.

Stock position of direct investment abroad stood at €60.2 billion in June 2019, down by €0.9 billion over the stock position in 2018

Financial and insurance activities made up 99.1% of the total Foreign Direct Investment abroad.