A marketing approach in the feasibility of substituting imports with local light manufacturing : a case study

Abstract

Since the run-down of the British armed forces in Malta there has been a determined effort on the part of Government to diversify the economy. In 1961, the share of the national product which was generated by services as opposed to industry or agriculture was no less than 16%, i.e. £7.6 million. Part of the diversification programme included an incentive scheme for the setting up of light industries. The primary purposes of setting up light industries was to reduce the extent of unemployment. These incentive schemes included grants, loans, the importation of machines and raw materials free of Customs Duty. income tax free holidays, restriction on imports through quotas and tariff barriers. Until such a planned effort was made the business community in the main was made up of importers. Exceptions did exist. and the beverage and wine industries are cases in point. but these stand out as exceptions. One of the problems that soon became apparent in such a situation was that the business community, or better still the business expertise. was committed to importing and presumably Government looked to them to turn their hand to light manufacturing. Certainly it would be doubly difficult for an individual without any production acumen to style himself an industrialist and commence operations in light manufacturing.