“These are truly testing times. Political debates are heating up as parties prepare for a general election, while international developments, especially the conflict in the Middle East, are creating chaos for businesses with a combination of demand and supply-side pressures,” he begins.

Despite these challenges, Refalo points out that Malta’s economy continues to grow. “Growth is encouraging but it also brings pressures, especially on human resources,” he says. “Companies struggle to fill vacancies and competition for talent is intense. More often than not, private firms must rely on foreign workers to keep operations running.”

This, he says, ties directly into the electoral cycle.

“Malta’s competitiveness must be preserved. Political promises must be realistic and affordable. Populist pledges, like offering every type of leave imaginable, might appeal to voters but threaten long-term economic stability and put further pressure on the already increasing national debt. Policy should be evidence-based and sustainable.”

The key word for Refalo is certainty.

“While we have no control on most of the developments taking place around us, we must not fuel further uncertainty ourselves. We cannot afford surprises. Our businesses, workers and economy deserve policies grounded in reality and focused on sustainable long-term growth,” he adds.

He singles out the public sector as a particular concern. “Unfortunately, we continue to see skilled employees attracted away from the private sector for government roles where their abilities are often underused. Not to mention social media adverts that promote public sector jobs under the premise of possibly working less. This practice destabilises businesses and disrupts the labour market.

Refalo frames these concerns within a broader vision.

“We strongly support initiatives such as Malta Vision 2050, which push for sustainable, inclusive and productive growth. Every decision carries an opportunity cost. True leadership requires choosing what serves the nation’s long-term interest. We cannot afford to get it wrong; the future depends on decisions we take today.”

Refalo is particularly concerned about issues related to Malta’s human resources, especially Malta’s labour migration framework. While the policy has been welcomed as a step toward addressing workforce challenges, including skills gaps and the need to attract and retain third country national workers, it still faces practical hurdles, he says.

“We are all for initiatives that help stabilise the labour market and bring in the skills our economy needs,” he explains. “But excessive costs, unclear procedures and under-resourced regulatory bodies are creating unnecessary burdens for both employers and workers. Policies must be workable and enforceable in practice, not just ideal on paper.”

Debates over flexible working arrangements, including the idea of a four‑day week, have also grown. “Flexibility can work,” Refalo says, “but only when it is underpinned by higher productivity, technology, automation and investment in skills. Our researched position shows that most employers do not yet support the idea of a blanket four‑day measure for Malta. Labour shortages, rising costs and operational realities vary across sectors. Work‑life balance is important but solutions must be grounded in the realities of individual firms. At the same time, social dialogue remains non-negotiable. Refalo expressed disappointment at the association’s exclusion from recent government-driven, technical committees related to employment and industrial relations.

“Malta enjoys industrial stability because responsible partners engage in constructive dialogue. Excluding employers from committees discussing employment and industrial relations is unacceptable. Decisions made without our involvement risk imbalance and undermine the process.”

In conclusion, Refalo delivers a clear message: Safeguarding Malta’s economic future requires collaboration, foresight and a refusal to compromise on principles for electoral expediency.

“We stand for policies that drive sustainable growth and which are designed to strengthen the country’s competitiveness. We also stand for the acceptance and practice of core values in the advancement of our society,” Refalo continues while stressing “we are steadfast in our belief that ethical principles provide the foundation for economic and social policies that genuinely serve the national interest. In this light, we have recently commented that public officials must lead by example and demonstrate integrity, transparency and full accountability in the conduct of their duties.”

In this context, Refalo frames the association’s mission as more than advocacy, but one which serves a wider economic cause.

“Our role is to ensure that the voices of employers are heard, that labour policies work in practice, and that long-term growth is underpinned by integrity and ethical employment practice. We are committed to being a constructive partner in making those decisions count.”

The post Malta cannot gamble its competitiveness for election pledges – Malta Employers president first appeared on The Malta Business Weekly.

The proportion of counterfeit euro banknotes remains insignificant when compared to the 30.22 million genuine euro banknotes in circulation in Malta in 2025.

Among the 1,097 counterfeit euro banknotes seized in Malta during 2025, the middle denominations continued to be the most counterfeited. Nevertheless, the €20 denomination lost in importance, while the share of the €50 denomination increased. Together, these two denominations accounted for 87.5% of all seized counterfeits. The share of the lower denominations (€5 and €10) also decreased, while the percentage of the highest denominations remained very low.

The table below provides a percentage breakdown by denomination of the total number of counterfeits withdrawn from circulation in Malta during 2025, compared with the distribution by denomination across the entire euro area. It must be noted that while the €20 denomination predominates in Malta, the €50 is the most frequently detected counterfeit banknote in the euro area.

Notwithstanding the low figures of counterfeits reported locally, the Central Bank of Malta continues to advise the public to remain alert with regards to banknotes received in cash transactions. Most counterfeits are easy to detect as they have no security features, or only poor imitations of such features.

The post Counterfeit euro banknotes in Malta drop by nearly 30% in 2025 first appeared on The Malta Business Weekly.

On Monday, Deputy Prime Minister and Minister for Foreign Affairs and Tourism, Ian Borg, addressed the Annual General Meeting of the Malta Chamber of Commerce, Enterprise and Industry, in Valletta, discussing the implications of global instability on Malta’s trade and economic development.

The war in Ukraine, the conflicts in the Middle East and the Gulf, and increasing competition over critical technologies and supply chains, are reshaping global commerce, disrupting trade routes, and placing new pressures on all nations. Faced with this reality, Malta must prioritise resilience, diversification and diplomacy, objectives that are also central to Malta’s long-term vision, towards an economy capable of withstanding shocks and seizing opportunities.

To ensure resilience, Malta must continue investing in “preparedness, efficient logistics and secure connectivity to global markets,” Dr Borg explained, as he emphasised the need to diversify outward while consolidating existing strengths. “Diversification is essential to expand markets and build resilience. Malta must strengthen its European base while deepening engagement in the Mediterranean, the Gulf, Africa, and emerging economies, ensuring reduced dependence on any single geopolitical sphere,” said Dr Borg.

The Deputy Prime Minister encouraged all stakeholders to keep protecting what already works, including financial services, digital industries, maritime, aviation, tourism and advanced manufacturing. “These sectors employ thousands and contribute significantly to national wealth, and we must ensure they retain their competitiveness and sound regulation. Stability and predictability remain key to investor confidence, and we are committed to providing both,” he affirmed.

Economic diplomacy and multilateral engagement are critical as well. As he outlined the efforts of Malta’s diplomatic network in supporting businesses abroad, Dr Borg noted that “for small states like Malta, multilateral fora are our first line of defence. Through engagement in international and regional organisations, Malta works to uphold fairness, openness, and predictability in global trade.”

He also highlighted the importance of strategic foresight. “Change is rapid and demands anticipation rather than reaction. This requires strong collaboration between the government, business, and our diplomatic network, alongside sustained investment in skills, innovation, and digital transformation,” he added.

In this regard, Dr Borg commended Trade Malta, established through a collaboration between the Government and the Malta Chamber, for its efforts to support export promotion, training, market intelligence, and trade missions. “Together with our embassies, we will strengthen our support to ensure Maltese businesses can succeed internationally,” he said.

The Deputy Prime Minister also praised the Malta Chamber, which continues to be an invaluable partner in promoting competitiveness, good governance, and responsible leadership. “Malta’s future depends on remaining outward-looking, innovative, and resilient. Our entrepreneurs have already proven their ability to compete globally. As a Government, we will continue providing the conditions for success through stable policy, strong partnerships, and a diplomatic network aligned with the private sector,” concluded Dr Borg.

The post Resilience, diversification and diplomacy are central to Malta’s economic security – Ian Borg addresses the Malta Chamber first appeared on The Malta Business Weekly.

A post by the European Parliament, on its Facebook page, reads: “Lower income and smaller pensions – women deserve better. Women in the EU earn on average 12% less than men and the gap follows them into retirement, the average pension gap is 24.5%. They are more likely to take parental or maternity leave, work part-time and hold lower-paid jobs in undervalued sectors, which limits their earnings and contributes to the gender pay and pension gaps.”

“Parliament calls for an EU action plan to improve working conditions and fair pay in women-dominated sectors and strengthen women’s work-life balance.”

In the table it published, the pension gap is 40.3%, the highest in the EU. The Netherlands was the country with the second highest gap, with 36.3%.

The country with the lowest gap is Estonia, where the gap stood at 5.6 %, followed by Slovakia, with a gap of 8.4%.

The post Malta has highest gender pension gap in European Union first appeared on The Malta Business Weekly.

The announcement was made during a press conference held at the offices of the Building and Construction Authority (BCA) by Minister for Justice and Reform of the Construction Sector Jonathan Attard, alongside BCA Chief Executive Officer Roderick Bonnici.

Under the scheme, individuals purchasing properties that meet sustainability standards will be eligible for grants ranging from €4,500 to €9,000, distributed over a three-year period. The initiative forms part of a broader set of government measures aimed at increasing home ownership while advancing environmental goals outlined in Malta’s Vision 2050 strategy.

Attard explained that the scheme aligns with national sustainability targets by incentivising investment in buildings that consume less energy. “Through this scheme, we are creating a direct incentive for citizens to invest in properties that adopt higher sustainability standards,” he said, noting that beneficiaries would enjoy lower energy bills and reduced environmental impact.

The scheme applies to properties purchased from 1 October 2025 and will remain open for applications until 30 September 2026. Buyers of “Net Zero” properties – homes that generate more energy than they consume – will receive €3,000 annually for three years, totalling €9,000. Meanwhile, buyers of properties that exceed European energy efficiency standards by at least 20% will receive €1,500 annually, amounting to €4,500 over the same period.

During the first year of the scheme, around 200 applications were submitted, with approximately €200,000 already disbursed as initial payments.

Attard also referenced other initiatives launched by the authority, including the “Irrinova Darek” scheme, which supports home renovations and was reintroduced earlier this year.

Bonnici outlined the application requirements, stating that applicants must submit the final property purchase contract along with the building’s Energy Performance Certificate based on its completed state, not design projections. He added that only one application per property and per individual will be accepted.

Bonnici highlighted the authority’s ongoing efforts to promote sustainable construction practices, noting that a dedicated unit has been established in recent years to ensure buildings meet European standards.

Also present at the press conference were BCA Chairman Simon Saliba and Permanent Secretary Johan Galea.

Further information about the scheme can be obtained through the authority’s helpline at 138.

The post Government re-launches sustainable property scheme with grants up to €9,000 first appeared on The Malta Business Weekly.

Mumenti recently presented a cheque for €17,118.58 to Hospice Malta following Mumenti 5, a theatre production that brings together different artistic disciplines with the main support of APS Bank. Held in October 2025, the event united emerging talent, organisers and audiences in a shared effort to raise funds for Hospice Malta’s free palliative care services.

Through the commitment of everyone involved, Mumenti 5 made a meaningful contribution to families who rely on Hospice Malta’s care. The cheque presentation, held at Hospice Malta, recognised the collective effort behind the initiative, with APS Bank among the supporters of the production.

Jeremy Vassallo, CSR Manager at APS Bank, said: “Presenting this cheque at Hospice Malta was a reminder of why these initiatives matter. We thank everyone who took part and helped make this contribution possible.”

Rachael Blackburn, Head of Culture at APS Bank, added: “Mumenti 5 shows what can happen when people come together with a shared purpose. We are proud to support initiatives that give space to emerging talent while also making a real difference in our community.”

The post Over €17,000 raised for Hospice Malta through Mumenti 5, supported by APS Bank first appeared on The Malta Business Weekly.

The increase reported under Malta Government Stocks (€892.8 million) was the main contributor to the rise in debt. Higher debt was also reported under Euro coins issued in the name of the Treasury (€4.8 million).

This increase in debt was partially offset by a drop in the 62+ Malta Government Savings Bond (€38.2 million), Treasury Bills (€20.4 million) and Foreign Loans (€2.3 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €24.9 million.

By the end of January, the government’s Consolidated Fund reported a deficit of €151.7 million.

In January, Recurrent Revenue amounted to €493.5 million, €97.7 million higher than the figure reported a year earlier. The largest increases were recorded under Value Added Tax (€60.1 million), Grants (€20.4 million) and Licences, Taxes and Fines (€6.7 million). On the other hand, lower revenue was recorded under Fees of Office (€2.8 million) and Sales – Services (€1.3 million).

Total expenditure during January stood at €645.1 million, €63.7 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €584.4 million, an increase of €37.8 million compared to the €546.6 million reported the year prior. The main contributor to this increase was a €19.3 million rise reported under Programmes and Initiatives. Further increases were also recorded under Personal Emoluments (€10.8 million), Operational and Maintenance Expenses (€6.5 million), and Contributions to Government Entities (€1.2 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€15.1 million), Medicines and surgical materials (€8.8 million) and Allocation to regional committees (€5.4 million).

The interest component of the public debt servicing costs totalled €22.9 million, a decrease of €0.1 million when compared to the previous year.

By the end of January, government’s capital spending amounted to €37.8 million, €26 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the Road construction and improvements (€8.7 million), ICT core services agreement (€6.3 million) and Upgrade of AFM infrastructure and equipment (€1.5 million).

The difference between total revenue and expenditure resulted in a deficit of €151.7 million being reported in the Government’s Consolidated Fund at the end of January, a €34 million drop in comparison to the €185.7 million deficit registered by the close of January 2025. This difference mirrors an increase in total Recurrent Revenue (€97.7 million), coupled with a lower rise in total expenditure, which consists of Recurrent Expenditure (€37.8 million), Interest (-€0.1 million) and Capital Expenditure (€26 million).

The post Government debt rises to €11.3 billion – NSO first appeared on The Malta Business Weekly.

In January, the European Commission’s Economic Sentiment Indicator increased from a month earlier and reached the highest level recorded. Meanwhile, the Employment Expectations Indicator rose and stood above its long-term average. Its Economic Uncertainty Indicator (EUI) reached a historic low, indicating low uncertainty surrounding financial and business decisions.

In December, industrial production contracted, though at a smaller rate, while annual growth in retail trade accelerated. In November, services production declined and reversed a brief recovery observed in the preceding month.

The unemployment rate in December rose marginally compared with November, but at 3.2% remained low from a historical perspective.

In December, permits for residential buildings rose from their year-ago level. In January, both the number of residential promise-of-sale agreements and the number of final deeds of sale increased on a year earlier.

The annual rate of change of Maltese residents’ deposits and credit in December increased compared with November.

The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) stood at 2.3% in January, down from 2.5% in December. HICP inflation excluding food and energy stood at 2.2%. While overall HICP inflation was above that in the euro area, HICP inflation excluding food and energy in Malta was in line with the euro area. According to the Retail Price Index (RPI), inflation stood at 2.5% in January, down from 2.7% in December.

The post CBM issues February Economic Update: Economic sentiment at the highest level recorded first appeared on The Malta Business Weekly.

In 2025, the local group achieved a profit before tax of €109 million demonstrating resilience and consistent performance across all business units despite operating in a lower interest rate environment.

HSBC Bank Malta plc confirmed its commitment to delivering sustainable shareholder returns, recommending a final gross dividend of 8.4 cents per share, following another period of resilient financial performance and disciplined capital management.

This represents the highest dividend payout ratio in recent years, which together with the interim dividend paid in September 2025, represents a 60% dividend payout ratio. The final proposed dividend will be paid on 6 May to shareholders who are on the bank’s register of shareholders on 30 March, subject to approval at the Annual General Meeting scheduled for 29 April.

Key Highlights

• Positive outlook on Malta’s economy, which continues to outperform Europe. Malta’s high Gross Domestic Product (GDP) growth and diversification and low unemployment, provide economic resilience despite global uncertainties. Property sector remains strong.
• Reported profit before tax of €109 million for the year ended 31 December 2025, a decrease of €45.4 million or 29% over 2024. The decrease in profit reflects the impact of lower interest rates and lower releases of expected credit losses. The bank achieved solid underlying revenue growth, driven by increased customer activity. Operating costs increased reflecting continued strategic investment in talent and accelerated amortisation of software.
• Strong customer growth and confidence led to deposit growth of €370 million during the year, reaching a record high of €6.5 billion at year-end. Deposit market share increased by over 1%. Additionally, there was growth of 28% in client wealth management and investment balances to €1.1 billion. Life insurance sales increased by 21%.
• Reported profit after tax attributable to shareholders amounted to €71.6 million for the year ended 31 December 2025, resulting in earnings per share of 19.9 cents, compared with 27.8 cents in the same period in 2024.
• The board has recommended a final gross dividend of 8.4 cents per share (5.46 cents per share net of tax), bringing the total dividend for 2025 to 18.4 cents (11.96 cents net of tax). This represents a payout ratio of 60%.
• The bank’s total capital ratio grew to over 27% and the liquidity coverage ratio remained over 500%, making HSBC Bank Malta plc one of the most capitalised and liquid banks in Malta and among the highest in Europe, well above regulatory requirements

Geoffrey Fichte, CEO at HSBC Bank Malta plc, said he was proud to report another year of successful results, marking the third consecutive year of pre-tax profit exceeding €100 million – a first in the history of HSBC in Malta.

“This performance, delivered despite lower interest rates and reduced recoveries, underscores the strength and resilience of our diversified business model, disciplined execution and the continued trust of our customers,” he said.

“We continue to serve our customers with the same high standards of service and banking, insurance and investments. Throughout the year, we continued to invest in the future of the bank – enhancing our digital capabilities through the implementation of SEPA Instant payments, upgrading our IT infrastructure, and completing the replacement of our ATM fleet across Malta and Gozo.”

Testament to this, Fichte said, is the bank’s recognition as 2025 Bank of the Year Malta by The Banker, the Financial Times’ internationally-renowned publication covering global banking and financial affairs.

HSBC Bank Malta’s recognition reflects the bank’s significant progress across key performance metrics, including earnings growth, capital strength, operational efficiency, and continued investment in digital and technological capabilities.

The post HSBC Malta announces pre-tax profit exceeding €100m for third consecutive year first appeared on The Malta Business Weekly.

The study, part of an EU-funded Technical Support Instrument (TSI) project, collected data from over 1,500 adults aged 16 – 79 between July and September 2025 to better understand investment preferences, financial knowledge, and saving habits across Malta.

Results presented by Andrea Grifoni, Policy Advisor on Financial Consumer Protection, Education and Inclusion at the OECD, indicate that Malta’s overall financial literacy levels are slightly above the OECD average, reflecting strong budgeting and saving habits. However, the findings reveal persistent gaps in investment knowledge and participation.

Despite a high household saving rate, only a minority of respondents hold investment products, with many citing fear of losing money, lack of disposable income, or a preference for real estate as key barriers. Among those who do invest, most do so to generate retirement income, earn higher returns, or build wealth for future generations. While understanding of concepts such as simple and compound interest is strong, knowledge of bonds and more complex financial instruments remains limited. Investment literacy also varies across demographic groups, with higher scores among men, and individuals with greater education and income levels.

Although digital financial literacy is generally solid, adults with lower income or education show weaker results, underscoring the need for more targeted initiatives. Home ownership remains a central financial goal for most Maltese, with 70% of respondents owning their property, while two-thirds expect to rely primarily on public pensions in retirement and only one-third plan to supplement income with private savings or pension schemes.

“These insights provide a robust evidence base to better understand how retail investors engage with financial products, and they will continue to guide targeted initiatives that strengthen consumer awareness, confidence and participation in the capital markets,” said Sarah Pulis, Head of Conduct Supervision at the MFSA.

The event also featured opening remarks from Christopher P. Buttigieg, Chief Officer Supervision of the MFSA, and introductory remarks from Cristina Pacella, from the European Commission.

The post Strengthening financial capability in Malta through data- driven policy dialogue first appeared on The Malta Business Weekly.