Malta Wants to Become a Money Center

The island state of Malta wants to become the newest of the world’s offshore financial centers and a holiday haven for the wealthy too.

It has a long tradition of service, says Prime Minister Edward Fenech Adami, who ended 16 years of socialist rule when his Nationalist Party took office after elections one year ago.

Fenech Adami, who has pledged to promote free enterprise, said the biggest change since then was in the public perception of Malta, where political violence occurred during the period of Labor Party rule.

“It can again be perceived as . . . a state of democracy. Malta is a place which respects the rule of law,” he told Reuters.

“We are used to giving a service. For four centuries, we have given a service in the defense field,” he said.

Fenech Adami cited Malta’s history as a base for British and NATO warships.

Rent Wisely Invested

Britain and NATO left under the Labor Party government, but financial analysts say rent from their bases was wisely invested to provide the nation with foreign reserves.

Malta, with a population of 340,000, has few resources but its work force, the sun, the sea and an impressive range of monuments, castles and palaces dating from 4000 BC.

The government plans to earn more from tourism by luring a wealthier class of visitor and to diversify revenue by becoming an offshore financial center.

Legislation for becoming a financial center is expected to be in place early next year. Officials list location and a well-educated, English-speaking population as Malta’s advantages for offshore companies.