The vast majority (87 percent) of senior professionals working in Malta’s financial services industry expect the sector to see strong growth over the next five years and contribute more towards Malta’s GDP by 2022, research by Managing Partners Group has found.
Currently, the sector contributes circa 12 percent of Malta’s GDP, and while 87 percent believe this percentage will be higher by 2022, 70 percent anticipate it will account for 15 percent or more.
The asset management group’s survey of professionals from Malta’s financial services sector also found that 16 percent of those interviewed expect product innovation in the sector to increase ‘dramatically’ over the next five years and a further 68 percent anticipate some sort of improvement.
Almost three quarters (71 percent) of respondents attribute the main reason behind this trend as more financial services companies locating to Malta, while half (50 percent) believe the country’s flexible legislative and regulatory system will help.
With regard to which sectors in Malta’s financial services industry are likely to grow between now and 2020, 82 percent anticipate fund administration will grow, followed by asset management, asset servicing and corporate (74 percent of those interviewed expect these sectors to grow over the next three years).
Chief executive at Managing Partners Group, Jeremy Leach, commented: “Our research shows that people working in Malta’s financial services sector expect their industry to enjoy strong growth over the next few years. The pool of talent in the industry, its level of professionalism and the robust but flexible regulatory environment provide the building blocks for the industry to continue to grow and build on its reputation as a leading international financial services centre.”
Chairman of Finance Malta, Kenneth Farrugia, added: “The results of this survey and the highly positive outlook therein are primarily driven by the growth that the industry is currently experiencing particularly in the asset management, insurance and private wealth sector.
“Despite Malta’s relatively recent entry in the international financial services arena, innovation-led developments such as the Notified AIF (NAIF) in the asset management sector, the Protected Cell legislation in the insurance sector, which I must add is unique in Europe, as well as the presence of a highly competitive securitization framework, have attracted a number of international operators to Malta."
He concluded: “This has in turn brought about a marked increase in business as a result of an increase in the business being managed through existing operators but equally so driven by the new financial services operators that are setting up in Malta.”
Managing Partners Group specialises in managing alternative asset classes for institutions and investors, managing a range of financial products that mainly invest in property, life settlements, absolute return and hedge fund asset classes.
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