NSO Malta | Direct Investment in Malta and Abroad: January-December 2023

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Direct Investment in Malta and Abroad: January-December 2023

NR 179/2024

Release Date: 01 October 2024

Cut-off Date: 30 September 2024

As at the end of 2023, the stock position of Foreign Direct Investment in Malta stood at €430.5 billion, while Direct Investment abroad amounted to €404.4 billion.

Foreign Direct Investment (FDI) in Malta

During the year 2023, FDI flows in Malta went up by €20.4 billion (Table 1). The main contributors to total FDI flows were Financial and insurance activities with a total contribution of 88.8 per cent (Table 2).

In December 2023, the stock position of FDI amounted to €430.5 billion, an increase of €15.0 billion over the corresponding period of the previous year. As in previous years, Financial and insurance activities accounted for 97.7 per cent of FDI stocks in December 2023 (Table 3).

Direct Investment Abroad

During 2023, direct investment flows abroad totalled €18.6 billion, mainly in the form of equity and investment fund shares/units (Table 4).

The stock position of direct investment abroad stood at €404.4 billion in December 2023, up by €12.5 billion over the stock position in 2022. Financial and insurance activities made up 99.3 per cent of the total FDI abroad (Table 6).

Chart 1. FDI in Malta and abroad

Stock positions as at the end of December

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Tables

Table 1. Foreign Direct Investment flows in Malta

Table 2. Foreign Direct Investment flows in Malta: Economic activity

Table 3. Stock Position of Foreign Direct Investment in Malta: Economic activity

Table 4. Direct Investment flows abroad

Table 5. Direct Investment flows abroad: Economic activity

Table 6. Stock Position of Direct Investment abroad: Economic activity

All Tables

Methodological Notes

1. The collection, compilation and presentation of both the International Investment Position (IIP) and the Balance of Payments (BoP) statements of Malta fall under the responsibility of the National Statistics Office (NSO), with the co-operation of the Central Bank of Malta (CBM). Direct Investment is extracted from both statements, and compiled in accordance with the international guidelines set out in the sixth manual of the International Monetary Fund (BPM6).

However, the Direct Investment news release is presented on a directional basis, ie. inward and outward, rather than on an asset and liability basis. The statement incorporates data relating to special purpose entities which are classified under financial service activities. This inclusion has brought about significant changes in the FDI statement.

2. Direct Investment is defined as “a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy.” (BPM6).

a. Direct Investment is sub-divided into two categories:

● Foreign Direct Investment (FDI) in Malta – where a foreign investor owns 10% or more of the ordinary shares (or voting power) of an enterprise in Malta; and

● Direct Investment Abroad – where a Maltese resident entity (or an individual, government or association) owns 10% or more of the ordinary shares of an enterprise in another economy. These companies can be subsidiaries, affiliates or branches.

b. Direct Investment is made up of three basic components:

● Equity and investment fund shares/units – comprising equity investment in subsidiaries, associates and branches. Capital contributions (e.g. provisions of machinery) and purchase of immovable property are also classified under equity capital. Also consists of the direct investor’s share of earnings not distributed as dividends by subsidiaries and associates; and earnings that branches do not remit to the direct investor. Losses are regarded as negative reinvested earnings.

● Debt Instruments – including inter-company transactions such as borrowing and lending of funds; and trade debits and credits between direct investors and direct investment enterprises. Transactions between enterprises in different economies that share the same direct investor are also considered as direct investment and included under debt instruments.

3. Direct Investment flows include transactions occurring during a particular period. Besides accumulated flows, the Direct Investment Stock Position takes into account any market value revaluations, reclassifications and exchange rate changes prevailing at the end of the reporting period.

4. The type of data collection system used to compile the Direct Investment is a composite system based on monthly, quarterly and annual direct reporting (DR) enterprise surveys, as well as various other sources that are identified from time to time by the BoP compilers. No major sectors of the economy are excluded from the aggregate data. The data for all components are compiled from these surveys. Where not directly available, preliminary figures on reinvested earnings are estimates based on an average of the previous four years. The final data on reinvested earnings are then compiled from the annual DR survey.

5. The classification used for economic activity is NACE Rev. 2, which corresponds to the Statistical Classification of Economic Activities in the European Community. Both the data on Direct Investment abroad and Foreign Direct Investment in Malta are classified on the basis of the industrial activity of the resident direct investment enterprises. Due to confidentiality issues, aggregate economic activities are grouped as follows:

Manufacturing includes:

Manufacturing industry

Transportation, Accommodation and Real Estate Activities include:

Land, sea and air transport

Warehousing and support activities for transportation

Postal and courier activities

Accommodation and food service activities

Real estate activities

Financial and Insurance Activities include:

Financial service activities

Insurance, reinsurance and pension fundings

Activities auxiliary to financial services

Information and Communication Activities include:

Publishing activities

Activities connected to audio and video productions

Telecommunications

Computer programming, consultancy and related activities

Information service activities

Professional, Scientific and Technical Activities include:

Legal and accounting activities

Business and management consultancy activities

Architectural, engineering and other technical activities

Scientific research and development

Advertising and market research

Other professional, scientific and technical activities

Veterinary activities

Other Activities include:

Agriculture and fishing

Mining and quarrying

Electricity, gas, steam and air conditioning supply

Water supply; sewerage, waste management and remediation activities

Construction industry

Wholesale and retail; repair of motor vehicles and motorcycles

Administrative and support service activities

Education, health and social work activities

Arts, entertainment and recreation

Other activities not allocated elsewhere

6. Data are to be considered provisional.

7. More information relating to this news release may be accessed at:

Statistical Concepts

Metadata

8. References to this news release are to be cited appropriately. For guidance on access and re-use of data please visit our dedicated webpage.

9. A detailed news release calendar is available online.

10. For further assistance please submit your query through our online request form.

Direct Investment in Malta and Abroad: January-December 2023

NR 179/2024

Release Date: 01 October 2024

Cut-off Date: 30 September 2024

As at December 2023, the stock position of Foreign Direct Investment in Malta stood at €430.5 billion, while Direct Investment abroad amounted to €404.4 billion.
The main contributors to both inward and outward FDI were Financial and insurance activities.
During the year 2023, FDI flows in Malta and abroad went up by €20.4 billion and €18.6 billion respectively.

News Releases

Direct Investment in Malta and Abroad: January-December 2023

Chart 1. FDI in Malta and abroad

Tables

Tables

Methodological Notes

Direct Investment in Malta and Abroad: January-December 2023

Direct Investment in Malta and Abroad: January-December 2023