The government said Thursday that sometime over the next few weeks it will unveil a ‘strategic plan’ for attracting foreign investment to Cyprus, while also asking local businesspeople and industrialists for their feedback on how to render the economy more competitive.

Energy, Commerce and Industry Minister George Papanastasiou said the government will set up an umbrella organisation hosting the various agencies that process applications – on a fast-track basis –from foreign investors.

“We lag behind when it comes to issuing permits…we’ve got to address the bottlenecks,” Papanastasiou said at an event held at the finance ministry building and attended by industrialists and entrepreneurs.

According to the government’s definition, “the term foreign direct investment means the participation of more than 10 per cent in the share capital of an enterprise resident in one country, by an investor resident in another country (direct investor) and implies the existence of a long-term interest on the part of the foreign investor.”

On a parallel track, Papanastasiou spoke on the drafting of a policy document, along with an action plan to make Cypriot businesses more competitive and also render them more internationally oriented.

The policy document and the action plan should be ready by the end of February. They will prioritise the actions to be taken. The two documents will then be submitted to the cabinet for approval.

The minister called on the business community to give their feedback in the meantime.

“These actions must be targeted and realistic, and it’s important that they have a measurable impact. Let us concentrate on the more substantive issues that drag down our industry, and together let us try to find practical solutions.”

Among others, Papanastasiou mentioned product diversification under the ‘Cyprus made’ brand. This would be part of the rebranding of Cypriot products “so that we can beat the competition”.

Cypriot entrepreneurs must become more “extroverted,” the minister stated.

Cyprus’ drawbacks are chiefly the high cost of energy and the high cost of labour, as well red tape and a heavy reliance on importing raw materials.

“If we can fix these, we’ll become more competitive.”

And universities in Cyprus should give greater emphasis on field science and the applied sciences.

“Europe in general faces a lack of technicians, and we also see this in Cyprus…and very few young people are interested in the skilled trades,” said Papanastasiou.

On the flipside, the island’s advantages include widespread knowledge of the English language, plentiful scientists, common law, and an attractive tax regime.