MALTA’S TECH SECTOR DISPLAYED STRONG RESILIENCE DURING 2020, BOTH IN INFRASTRUCTURE AND IN GROSS VALUE-ADDED TERMS
Malta’s tech sector displayed strong resilience during 2020, both in infrastructure and in gross value-added terms. It is one of the three industries locally that has still experienced growth during this turbulent year, given that investment in innovation, research and development did not halt during the pandemic. Undoubtedly, there is hope and expectation that 2021 will be a rebound year. This shift to digital transformation will continue in earnest and Tech.mt remains committed at being proactively engaged in generating the momentum.
This year was a game changing risk, not just for adapting to the pandemic, but also for adapting to a more digital future.
The productivity of the technology sector in Malta has seen the strongest increase over the past decade reflecting the strong basis of the sector as well as Malta’s attractiveness including: its skilled workforce; strong educational institutions; robust telecommunications infrastructure and various incentives that continue to bolster Malta’s attractiveness. This year was a game changing risk, not just for adapting to the pandemic, but also for adapting to a more digital future.
The ICT sector had a 6.5% increase in GVA during the third quarter of 2020.
An increase in digital literacy amongst society along with continuous developments in the ICT sector have led to significant improvements in the Gross Value Added (GVA). When comparing the GVA for ICT in 2019 with 2020, there has been a rise of 6.5% during the third quarter of 2020. This rise occured despite facing a global pandemic. The digital transformations of the economic system contributed to the momentum of the system itself improving the quality of life and the value of the goods and services produced. An increasing GVA despite facing new challenges, is proof of the resilience of the tech sector. Productivity in the technological sector including a well educated and skilled workforce, contributes to this increase in Gross Value Added where Malta continues to grow stronger against all odds. When comparing the third quarter of 2019 with that of 2020, one should also notice a rise in the Service turnover index with regards to services in Information and Communication by 14.4%.
Malta has continuously worked on establishing new regulatory frameworks in line with emerging market. In the recent years, three legislative instruments have come in force to shape the regulatory aspect of this market; the establishment of the Malta Digital Innovation Authority, the Innovative Technology Arrangements and Services Act (ITAS) and the Virtual Financial Assets Act (VFAA). Having a strong education framework as well as a solid regulatory framework continue to push Malta to position itself as a centre for excellence and an innovative hub for the digital technologies by being able to respond to this emerging market.
Throughout the years, Malta proved to be resilient and able to prosper and grow despite facing global issues. There is huge potential for the local Tech sector as there is no doubt that the future is digital. Malta is well-positioned to continue building on the existing strengths and Tech.mt will remain pivotal in making sure technology and digital platforms are used in the best way possible, ensuring an economy which is based on digital resilience and digital innovation.
Published on: Bizzilla Magazine