Introduction to Malta Geography

Malta is an archipelago situated in the middle of the Mediterranean Sea between Southern Italy and the Northern African coast. The total area is 316 square kilometres that consists of Malta the largest island, Gozo, Comino and other small islands that are uninhabited. The topography of the Maltese islands is hilly towards the northwest and low-lying towards the southeast. There are no mountains or rivers and the Maltese coastline is picturesque with many harbours, bays, creeks, sandy beaches and rocky caves.

Malta enjoys a moderate Mediterranean climate characterised by warm summers and mild winters. The mean temperature during the winter months (November to April) is usually 14 degrees Celsius, whilst the prevailing during summer months (May to October) averages 23 degrees Celsius. The average amount of rainfall is approximately 550mm.

History

Malta was occupied by several regimes since time immemorial. The first to be recorded were the Phoenicians, who were followed by the Carthaginians. After the destruction of Carthage Malta was occupied by the Roman Empire, later forming part of the easternor Byzantine block. In 870, the islands were taken over by the Arabs and the country remained under their domain until 1090, until Count Roger of Normandy added Malta to his conquest of Sicily. In 1530, Charles V of Spain offered Malta to the Knights of St. John of Jerusalem. The Knights were driven from Malta by Napoleon in 1798, however the French ruled only for two years. Thereafter, Malta became a British Crown Colony, which it remained until September 21, 1964, when it became an independent sovereign state. In 1974, Malta became a Republic. Malta is a member of the Commonwealth, the United Nations and the Council of Europe. In May 2004, Malta became a full member of the European Union, and joined the Euro zone on 1st January 2008.

Malta is in many ways a microcosm of Mediterranean history and within the space of a few kilometres it is possible to see and visit anything from prehistoric temples to spectacular fortifications and historic towns. Exploring the Maltese countryside can also be very rewarding as Malta has lots of spots to be enjoyed.

Government

After many years of foreign occupation, Malta acquired its independence in 1964, when it became a parliamentary democracy. The President of the Republic of Malta who is appointed by the House of Representatives is the titular Head of State.

The executive power rests with the Prime Minister and the Cabinet of Ministers. The Prime Minister is usually the party leader commanding the greater support in the House of Representatives. Legislative power lies in the hands of the House of Representatives which currently has sixty-five members drawn from two major political parties, the Nationalist Party and the Malta Labour Party.

Malta has adopted the single transferable vote electoral system. Elections are held approximately every five years by universal secret ballot. The last elections were held in March 2008 resulting in a narrow victory for the Nationalist Party with 49.34% of first preference votes.

Economy

Malta has an open market economy, an excellent track record and enjoys a high standard of living at relatively moderate cost.

Malta has created the right economic environment to meet the demands of the global market. It has strong and long-standing links with Europe, North Africa and has a liberal foreign investment policy. Malta has a thriving industrial sector with over 200 foreign and some 400 locally-owned manufacturing companies. More recently, TECOM investments, the parent company of the Dubai Internet City has commenced with building its first internet city outside of Dubai which will be located in Malta, further enhancing the State's ICT profile. Products made in Malta are exported worldwide and comprise semiconductors, electronic components and sub-assemblies, pharmaceuticals and medicinal, rubber and plastics, fabricated metal products and machinery, software, garments, food products and others.

Malta does not have any natural resource wealth, energy reserves or any heavy industry: the country thus depends entirely on imports to meet its requirements of basic products, energy needs, industrial products as well as consumer goods. Major imports areelectrical and electronic components, machinery, mineral fuels & oils, vehicles, plastics, and food products.

The flexible and highly trained multi-lingual workforce is Malta's main asset and helps to ensure the country's competitive edge through high-quality production at costs that are highly competitive when compared to mainland Europe. Malta offers a modern transportation infrastructure, state of the art telecommunications networks and frequent air links to Europe, North Africa and Middle Eastern destinations. Malta's strategic location in the centre of the Mediterranean as well as its excellent harbours and Freeport make it an excellent manufacturing location.

Malta was classified as a developing country up to some years ago, however its present standard of living is comparable with most of the European countries. Malta has developed its industrial base concentrating primarily on manufacturing for export. Tourism has developed into a main feature, in fact since 1992 the number of tourist arrivals exceeded the one million mark. The services sector is now also becoming a significant part of Malta's economy with about one third of its GDP derived from this sector.

The Maltese economy continued to register a sustained rate of economic growth during the first six months of 2008. Favourable signs were also particularly evident in the labour market, with significant growth in employment and a further reduction in the unemployment rate. Improved economic activity and job creation were largely underpinned by a positive performance in a number of emerging economic activities. Meanwhile, the restructuring process underway in certain established sectors continued. cent. In nominal terms, GDP exhibited a growth of 6.1 per cent to reach €2,745.8 million.

During the first eight months of 2008, the increase in tourist departures was sustained, with a further advance of 9.6 per cent. However, such increased numbers were not reflected in higher tourist earnings, as gross foreign exchange earnings from tourism registered a marginal decline of 0.8 per cent during the first half of 2008.

Malta's Foreign Policy

In the light of Malta's geo-political heritage, ranging from its size, geographical location, recent independence following centuries of colonial rule, the relationship with neighbouring Mediterranean states and more recently Membership in the EU, Malta has developed a foreign policy in line with this context focusing on solidarity, respect for democracy, the rule of law and human rights, a humanitarian approach and a propensity to giving.

With Malta's accession to the EU, Malta has entered a new environment with new challenges that require different approaches. Membership with the EU provides Malta with the tools to influence decision-making in European policies including common foreign policy hence enabling Malta to strengthen its relevance and weight on the international fora.

Malta's Membership to the European Union

Following a period of rapid development in terms of infrastructure, industry and economic growth in Malta, in 1992 the government of the day, then the Nationalist Party applied for European Union membership. Throughout the subsequent five years Malta implemented a number of EU policies and directives; it introduced a body of legislation with the aim of promoting Malta as a financial services centre and it reviewed the country's taxation policies by introducing Value Added Tax. Upon its election to Government in 1996, the new Labour government froze Malta's application bid for membership, removed the Value Added Tax system and started negotiations with the EU to form a relationship other than full membership, known as a partnership. Malta's EU application was reactivated as soon as the Nationalist Party won the elections in 1998 and concluded its pre-accession negotiations with the EU in 2002. In March 2003 a referendum to determine EU membership was held which resulted in a vote in favour of membership. Malta signed the EU Accession Treaty in April 2003 and formally became a full member of the European Union on the EU enlargement bloc occurring on the 1st May 2004.

Import Controls

There are no particular non-tariff barriers. However, in conformity with the EU legislation.

Since its accession to the European Union on May 1st of 2004, Malta has adopted the EU Common External Tariff. Consequently, trade with Malta is totally free from customs duties, provided that the country of origin of the goods is one of the other EU Member States

Duties for non-European countries are relatively low, notably for manufactured goods (4.2% on average for the general rate); however textile, clothing items and food-processing industry sectors still know protective measures

Exchange Controls

There are no exchange controls in Malta on inward or outward investment, however, long-term insurance contracts with insurance undertakings that are non-EEA, are prohibited. Foreign currencies can be bought and sold freely and there are no restrictions on the maintenance of foreign currency bank accounts in Malta. There are no limitations on the repatriation of profits from Malta.

Malta, in common with the rest of the EU, has enacted laws to prevent the laundering of the proceeds of serious crime. Financial and some other institutions must obtain and retain satisfactory evidence of the identity of a potential customer before they do any business with that customer, even for relatively small sums.

The Judicial & Legal System

Malta's independent judicial system is backed by many years of experience and supported by the Constitution and principles of natural justice. The island's civil law is largely based on the Napoleonic Code. The criminal code is Italian in origin, but a system of trial by jury is modelled on English principals. Company and taxation law are also based on the English counterparts.

According to the Constitution of Malta, the Constitutional Court is the highest Court with jurisdiction over Constitutional issues – these include questions related to Fundamental Human Rights violations by the State. Following the ratification of the European Convention on Human Rights, aggrieved individuals enjoy a right of appeal from the Constitutional Court to the European Court of Human Rights. In invoking rights under the European Convention of Human Rights, the Courts may also make reference tojudgements of the European Court of Human Rights.

The Superior Courts, which are presided by Judges, decide cases of both a civil and commercial nature related to claims amounting to more than € 11,647 and other cases dependent on the subject matter of the claim. The Civil Court is split into what is known as the First Hall and the Family Section. While the Inferior Courts that are presided by Magistrates decide cases of both a civil and commercial nature related to claims amounting to less than € 11,647, criminal matters are presided by Magistrates or Judges depending on the nature of the alleged infringement. The Courts of Magistrates also serve as a court of criminal inquiry, wherein evidence regarding a criminal offence is compiled.

A Small Claims Tribunal is presided by an adjudicator who decides cases on principles of equity according to law. Adjudicators are appointed from amongst advocates for a term of five years. Adjudicators decide cases brought before them without delay. The aim is to have claims not exceeding the sum of € 3,494 decided summarily. Sittings of this Tribunal are held in Malta or Gozo. An appeal from the decision of the Tribunal lies to the Court of Appeal on specific cases listed in the Act establishing the Tribunal.

A number of minor infringements of the law such as minor traffic offences (including parking violations), illegal disposal of litter and other minor offences are penalised and are heard by Commissioners of Justice in Local Tribunals situated in various localities. The Commissioners are selected from among persons holding a law degree and given a three-year appointment. As the offences have been de-penalised the case may be decided even in the absence of the accused. Appeals are only possible on points of law.

The influence of Roman law and of the Napoleonic Codes is easily identifiable in the Maltese legal system, particularly in the civil law regime. French and Italian laws have also had influence in the development of Malta's civil law system – being all similarly influenced on Roman law. English Law has also had significant influence on certain areas of criminal law and procedures during the early part of the last century. Maltese criminal law has always adopted the maxim of the presumption of innocence, not guilty, in favour of the accused. Another similarity between the two legal systems is that the presiding Judge sits with a jury. Judicial precedents from major European jurisdictions also have significant influence on the interpretation and judgements of Maltese courts in instances where neither specific law has been enacted to regulate the issue nor customs have been developed.

The Maltese legal system also provides for the possibility of making use of an alternative dispute resolution mechanism – that of arbitration. The recourse to arbitration proceedings is a standard condition in international contracts today, mainly due to the quick solution that Arbitration provides. Although the nature of arbitration normally requires the consent of both parties to submit to the jurisdiction of arbitration proceedings, the Arbitration Act also provides for certain situations where the resort to arbitration is mandatory – these include minor traffic accidents and condominium disputes.

The Arbitration Act also provides for the setting up of the Malta Arbitration Centre, which was set up to promote and encourage the conduct of domestic arbitration and international commercial arbitration. It is administered by a Board of Governors appointed by the President of Malta but is independent of Government. The Malta Arbitration Centre provides both a list arbitrators and avenue for the holding of arbitration proceedings.

Population

Malta, renowned for its hospitality, has a homogeneous population with no ethnic, racial, religious or linguistic problems. Malta is one of the most densely populated countries in the world, with a density of 1,261 persons per square kilometre. In July 2008, the population of the Maltese Islands stood at 412,000. The average annual population growth rate is 0.4%. Malta has a multi-lingual labour force that is very flexible and adaptable.

Birth rate averages 10.33 birth/ 1,000 people and the death rate averages 8.29 deaths/ 1,000 people. Even though the rich history of the islands has caused the present population to be an amalgam of various stocks, the Maltese people are mainly considered to be Southern Europeans.

Language & Religion

In spite of the various historical influences, Malta acquired a unique cultural identity and a language, which have survived centuries of domination. Maltese is the national language but for both official and business purpose both Maltese and English are official languages. Besides being very fluent in both the above two languages, many Maltese can also speak one or more additional languages such as Italian, French and German.

The Maltese language is a combination of Semitic and Romantic origin, with the former having a major influence on its structure. It is written in Latin characters. The people on the islands have diverse linguistic skills. In fact, English is the second official language of the country.

Most Maltese are practising Roman Catholics, and it is the official religion of the island according to the Constitution. There are also several other religious communities, including non-Christians, who have their own place of worship and who can practice their beliefs without restrictions.

Education

Compulsory education is up to the age of 16, with the Government offering a free system of education. Private schools are also present on the island. Presently close to 10,000 students attend University whereby they are financially helped through a student workers scheme.

Living and Working in Malta

Living and working on the island offers many advantages. A European life style is available at a reasonable cost. International cuisine, a superb climate, good leisure and educational facilities, a low crime rate, and a historical and cultural environment are all available. A friendly and relaxed lifestyle is offered, yet Malta is fully equipped to meet the most demanding requirements for a modern business surrounding.

Work Permits

Normally a work permit will only be issued to a foreigner if there is no suitably qualified local, and the employer will need to operate training and 'understudy' schemes. The regime is less restrictive when foreign investment is involved, and if an expatriate controls 40% of a project, he will always be able to get work permits for himself and for one other expatriate. A permit is valid for one year and costs €58.23.

Anyone who wishes to reside permanently in Malta other than in conjunction with permitted work must apply for a residency permit under the 1988 Residence Scheme. A deposit of €4192.86 is required; the amount will be held on account and credited in the first year of assessment for which a tax return is required. An applicant must provide evidence of sufficient capital (€349405.29) or an annual income of €23293.68. A permit holder must buy or rent property on the island, but benefits from tax and import duty incentives.

With the exceptions of Romania and Bulgaria, Malta does not apply any restrictions to its labour market to nationals of the European Union. For Romania and Bulgaria, the Maltese Government has decided to continue applying the current national measures in force in order to regulate the access of the Maltese labour market after the accession of these two countries to the European Union on 1 January 2007. As a result, Bulgarian and Romanian nationals will need a work permit in order to access the Maltese labour market. Each request for a work permit will be assessed on a case-by-case basis. Citizens from all other countries need to go through a full work permit and residence permit application.

Sports and Recreation

One of the principal attractions of Malta is undoubtedly the possibility of practising quite a variety of outdoor sports even in winter. Moreover, many of the leading hotels in Malta have health and fitness facilities. Apart from sports, the theatre is a widespread mode of recreation. For those who enjoy the nightlife, Malta offersa number of smart and lively discotheques.

Transport and Communications

There are no internal problems regarding transport. Communications with the outside world are easy and rapid. Air and sea connections are efficient and frequent.

Malta is easily accessible by air within a few hours from most of the major European countries. The national airline, Air Malta, currently schedules direct services to all major European and North African destinations including:

Aberdeen, Alghero, Amsterdam, Athens, Barcelona, Belfast, Berlin, Birmingham, Bologna, Bremen, Brindisi, Brussels, Budapest, Cagliari, Catania, Dresden, Dublin, Dusseldorf, Edinburgh, Frankfurt, Geneva, Genoa, Glasgow, Hamburg, Hannover, Innsbruck, Istanbul, Larnaca, Leeds, Leipzig/Halle, London, Lyon, Manchester, Marseille, Milan, Moscow, Munich, Naples, Oslo, Palermo, Paris, Prague, Reggio Calabria, Rome, Sofia, Stockholm, Tripoli, Tunis, Toulouse, Venice, Vienna and Zurich.

An increasing number of low cost airlines have started operating from Malta in 2006 and are currently serving a number of major European destinations, mainly those that are not adequately served by the national airline.

The largest port in Malta is the Grand Harbour, which is a natural harbour bordered by fortified cities and bastions and located in the central part of Malta. The Grand Harbour is Malta's main port for a host of shipping services from dry-docking facilities to a cruise liner terminal. The Malta Freeport established in 1988 hasexperienced rapid growth and is now a major maritime transhipment logistic centre in the Mediterranean region. The Malta Freeport amalgamates the activities of container handling and industrial storage and is assuming ever-increasing importance for the country's economy. Extensive conventional and roll-on and roll-off services by international shipping lines carry freight and cargo from Malta directly to Mediterranean, North European, Middle Eastern and Asian ports. Most manufacturing industries are located within 20 minutes of a harbour or the Malta International Airport.

In the last few years the country's road network has been extensively upgraded and a number of road reconstruction projects are nearing completion. It is expected that further extensive development of the road network will be carried out in the coming years, partly with the assistance of EU and other structural funds.

Malta has a state of the art communications infrastructure with international telecommunications connections being significantly expanded through satellite technology and high capacity fibreoptic cables linking Malta with mainland Europe. Two operators provide mobile cellular telephone services. Internet usage is widespread and Malta's government extensive online services are one of the best in the EU.

Time

Malta is on Central European Time (CET), one hour ahead of Greenwich Mean Time (GMT). During daylight savings time, from the last Sunday in March to the last Sunday in October clocks are advanced one hour

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.