The bank reported a profit before tax of €44.4 million for the six months ended 30 June 2026, down from €58.7 million in the corresponding period last year. Excluding notable one-off items, adjusted profit before tax stood at €51.7 million, reflecting the impact of a lower interest rate environment, market volatility and exceptional expenses.

Despite the decline in profitability, HSBC Malta’s management emphasised that the underlying business remains strong, supported by growing customer activity, expanding lending volumes, increasing deposits and exceptionally robust capital and liquidity ratios.

Speaking following the presentation of the bank’s half-year results, CEO Geoffrey Fichte told the Malta Business Weekly that preparations for the transition to CrediaBank are progressing smoothly and remain on schedule.

“The transition is going very well,” Fichte said. “We are working very closely with HSBC Global and CrediaBank to make sure the transition is a success. We are very enthusiastic and motivated, and we are committed to a seamless transition for our customers.”

The acquisition, first announced in September 2025, will see Greek lender CrediaBank acquire HSBC Continental Europe’s 70 per cent shareholding in HSBC Malta for €200 million. The agreement was formally signed in December 2025 and remains subject to the necessary corporate and regulatory approvals.

Fichte said the bank expects regulatory approval during the final quarter of 2026, with completion anticipated approximately six months later.

“We expect the transaction to close during the second quarter of next year,” he said.

Reassurance for customers

With many customers closely following developments surrounding the ownership change, Fichte sought to reassure clients that the bank remains financially strong and fully committed to serving the Maltese market throughout the transition.

“We think clients have nothing to worry about,” he said.

Pointing to the bank’s latest financial results, Fichte noted that HSBC Malta continues to maintain the highest capital and liquidity ratios among Malta’s listed banks, with capital levels also ranking among the strongest across Europe.

“We have a very strong team that’s staying on, and we are committed to a smooth transaction. We are very much open for business, so we think clients have nothing to worry about. In fact, we hope they’ll be as excited as we are about the future.”

Addressing questions during the results presentation, Fichte also rejected suggestions that the transaction was facing delays, arguing that regulatory approval processes of this nature typically require time.

According to the CEO, the transaction is progressing faster than comparable banking acquisitions elsewhere in Europe.

He added that HSBC Malta remains confident of delivering what management describes as “a seamless transition and upgrade” under CrediaBank, with continued support from the Board of Directors.

Strong underlying performance

While reported profits declined year-on-year, HSBC Malta highlighted solid underlying business momentum across several core activities.

Net interest income fell by €4.3 million to €85.6 million, reflecting the lower interest rate environment compared with the exceptionally favourable conditions experienced in 2025.

Non-funded income also declined slightly, although fee income increased thanks to higher lending activity and stronger wealth management sales. Trading income moderated following an exceptionally strong comparative performance in the previous year.

Operating expenses increased to €65.9 million, largely driven by €7.3 million in notable items, including accelerated software amortisation and staff-related payments linked to the industrial dispute with the Malta Union of Bank Employees (MUBE).

The bank also benefited from a €6.5 million release of expected credit losses, supported by the recovery of a long-standing non-performing corporate loan and improved credit quality within its retail portfolio.

Despite continuing geopolitical uncertainty globally, HSBC noted that Malta’s domestic economy remained resilient.

Lending growth continues

The bank continued expanding lending across both retail and corporate segments despite heightened competition.

Retail lending increased by 27 per cent during the first half of the year compared with the same period in 2025, while new corporate lending surged by 75 per cent.

Business financing remained particularly strong across hospitality, real estate, retail and manufacturing, with HSBC indicating that a healthy lending pipeline is expected to support further growth over the coming months.

Although total customer loans declined marginally to €2.7 billion due to repayments and portfolio optimisation, the quality of the loan book continued improving.

Non-performing loans fell by six per cent and now stand at their lowest level in recent years.

Customer deposits remained broadly stable at €6.2 billion, with retail deposits increasing despite seasonal reductions in corporate balances.

Strong capital position

Perhaps the bank’s strongest message was its continued financial resilience.

HSBC Malta reported a Common Equity Tier 1 capital ratio of 24.7 per cent and a total capital ratio of 27.8 per cent as at 30 June 2026, comfortably exceeding regulatory requirements.

Liquidity also remained exceptionally strong, providing the bank with significant capacity to continue supporting customers while navigating the ownership transition.

Reflecting this strength, the Board declared another quarterly interim dividend of €0.043 gross per share, amounting to €15.5 million.

Combined with the first-quarter dividend of €0.036 per share, shareholders will receive total gross dividends of €0.079 per share for the first half of 2026, equivalent to €28.5 million.

The latest payment represents a 60 per cent payout of adjusted profits after accounting for employee benefit expenses related to the industrial dispute.

Wealth and insurance

HSBC Malta also continued strengthening its wealth management and insurance businesses.

Wealth investment sales recorded double-digit growth year-on-year as customers increasingly sought long-term savings and investment products.

During April, the bank introduced eight additional Target Dated Funds to its HSBC Life pension platform, expanding retirement planning options for customers.

HSBC Life Assurance (Malta) reported profit before tax of €1.9 million compared with €6.5 million during the same period last year, reflecting more challenging market conditions and movements in financial markets.

Nevertheless, the insurer maintained a strong solvency ratio of 252 per cent while continuing to generate new business across protection and long-term savings products.

Continuing investment

Alongside financial performance, HSBC Malta continued investing in customer service and infrastructure.

The refurbishment of its Rabat branch was completed during the first half of the year, while modernisation works have commenced at the Gżira branch.

The bank also maintained investment in digital services, customer support and credit processing, while continuing marketing initiatives focused on lending, wealth management and insurance solutions.

Within corporate banking, HSBC renewed its Gold Sponsorship Agreement with The Malta Chamber of Commerce, Enterprise and Industry, reaffirming its support for Malta’s business community.

Earlier this year, HSBC Malta was also recognised with the Environment and Resources Authority’s Corporate Award for Environmental Innovation and Sustainability for the €30 million sustainable redevelopment of its Qormi headquarters.

Looking ahead

As HSBC Malta prepares for its next chapter under CrediaBank ownership, management believes the bank is entering the transition from a position of considerable financial strength.

“Our adjusted profit, strong capital and liquidity ratios, growing transaction volumes and continued momentum across customer acquisition and lending leave us well positioned for the future,” Fichte said.

With regulatory approval expected later this year and completion targeted for the second quarter of 2027, HSBC Malta says its immediate priorities remain unchanged: supporting its 180,000 customers, maintaining business growth and ensuring a smooth transition for employees, customers and shareholders alike.

The post HSBC Malta posts resilient first-half results as CEO expects CrediaBank takeover to close in Q2 2027 first appeared on The Malta Business Weekly.

The R&D expenditure was primarily dedicated to Basic Research, which accounted for 42.3% of total R&D in 2024, followed by Applied Research (30.7%) and Experimental Development (27%). 

Both the Business sector and the Government sector reported an increase in R&D expenditure compared to 2023. The highest increase in outlay of €21.5 million was registered under the Business sector while the Government sector increased by €0.8 million. The Higher Education sector reported a decrease of €3.2 million. Labour costs represented 67% of total R&D expenditure, followed by Other recurrent expenditure (24.3%) and Capital expenditure (8.7%).

The highest R&D expenditure by scientific field was recorded in Engineering and technology, which accounted for 56.1% of total expenditure, followed by Medical sciences (15.8%) and Natural sciences (11.1%). Most of the R&D activity in Engineering and technology and Medical sciences was undertaken in the Business Enterprise sector, whereas research in relation to Social sciences and Humanities was mainly carried out by the Higher Education sector.

Year-on-year comparisons show that the highest increase was registered in Engineering and Technology (€16.7 million), followed by Medical sciences (€9.7 million). These increases outweighed a decrease of €11.4 million in Natural sciences.

Each sector mostly funds its own research, supplemented by foreign funds. R&D in the Business Enterprise sector is mainly funded by local business enterprise funds, General university funds are directed to the Higher Education sector and Direct government funds service the Government sector. Foreign funds for R&D reached €10.2 million, or 7.3%, of total funds.

R&D employment

3,760 employees were engaged in R&D work, of whom 2,148 spent a portion of their time on R&D projects, while the remaining 1,612 employees dedicated their entire working time on R&D projects. The highest R&D employment was registered in the Business Enterprise sector, at 1,864 employees, followed by the Higher Education sector, with 1,800 employees.

Male employment was predominant among researchers and technicians. Females accounted for 36% of total R&D employment.

With regard to R&D employment by major field of science, the highest employment was recorded in Engineering and technology with 1,906 employees, followed by Social and Natural sciences, with 634 and 459 employees respectively.

R&D government budget allocations

The government budget allocations for R&D (GBARD) for 2025 amounted to €42.3 million, a decrease of €0.3 million when compared to 2024. The highest GBARD outlay was recorded in General advancement of knowledge: R&D financed from General University Funds of €25.2 million.

The post Total expenditure on Research and Development amounted to €140.2m in 2024 first appeared on The Malta Business Weekly.

This increase in debt was partially offset by a drop in Foreign Loans (€80.1 million) and in the 62+ Malta Government Savings Bond (€37.8 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.7 million, the NSO said.

By the end of June, the government’s Consolidated Fund reported a deficit of €463.5 million.

Between January and June, Recurrent Revenue amounted to €4,155.2 million, €681 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€287.7 million), Grants (€156.8 million) and Value Added Tax (€137.4 million). On the other hand, lower revenue was recorded under Fees of Office (€13.8 million), Reimbursements (€2.1 million) and Sales – Others (€0.9 million).

Total expenditure by the close of June stood at €4,618.7 million, €687.1 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €3,952.9 million, an increase of €506.5 million compared to the €3,446.4 million reported the year prior. The main contributor to this increase was a €262.2 million rise reported under Programmes and Initiatives. Further increases were also recorded under Operational and Maintenance Expenses (€96.3 million), Personal Emoluments (€82.6 million), and Contributions to Government Entities (€65.5 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€88.1 million), Medicines and surgical materials (€25.7 million) and EU own resources (€24.4 million).

The interest component of the public debt servicing costs totalled €158.5 million, an increase of €14.6 million when compared to the previous year.

By the end of June, government’s capital spending amounted to €507.3 million, €165.9 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the Acquisition of property for public purposes (€49.1 million), Property, Plant and Equipment (€18.6 million) and Road construction and improvements (€15 million). The rise in spending was partially offset by drops recorded under the Investments in Physical Assets (Agricultural EU funds) (€5.3 million) and Investment Incentives (€5.1 million).

The difference between total revenue and expenditure resulted in a deficit of €463.5 million being reported in the government’s Consolidated Fund at the end of June, in comparison to the €457.4 million deficit registered the year prior. This difference mirrors an increase in total Recurrent Revenue (€681 million), offset by a higher rise in total expenditure, which consists of Recurrent Expenditure (€506.5 million), Interest (€14.6 million) and Capital Expenditure (€165.9 million).

The post Government debt edges closer to €12 billion – NSO first appeared on The Malta Business Weekly.

The Commission published its review of the EU ETS on 17 July, proposing a number of changes aimed at reducing carbon emissions while addressing concerns raised by the shipping industry over the impact of the scheme on European ports.

MMF Chairman Godwin Xerri said the proposed amendments acknowledge several of the concerns raised by the sector but argued that additional changes will be necessary to ensure the EU’s decarbonisation objectives do not come at the expense of Europe’s maritime competitiveness.

Among the proposals welcomed by the Forum is a temporary reduction in EU ETS allowance-surrender obligations for certain container cargo transhipped through EU ports, including Malta Freeport. The measure would apply until the end of 2035 for inbound voyages from non-EU ports undertaken by container ships with a capacity exceeding 10,000 TEUs, where cargo is transferred to another vessel destined for a non-EU port.

While the exemption would not apply to Malta’s import and export cargo, the MMF said it would help reduce the competitive disadvantage faced by European transhipment hubs when compared with nearby non-EU ports that are not subject to the same emissions trading rules.

According to the Forum, Malta Freeport has come under increasing competitive pressure from ports in North Africa, particularly in Egypt and Morocco, which have significantly expanded their infrastructure and capacity in recent years. Several shipping services have already shifted operations away from EU ports, resulting in non-EU hubs capturing the majority of new transhipment business.

The Commission has also proposed tightening the rules governing neighbouring non-EU transhipment ports by lowering the transhipment threshold from 65% to 50% and broadening the criteria used to identify ports that could benefit from avoiding EU ETS costs.

However, the MMF said these changes do not fully address the issue, noting that the rules become ineffective whenever vessels bypass EU ports altogether.

“The proposed changes represent positive progress in addressing business and carbon leakage resulting from the implementation of the Directive,” Xerri said. “However, the review process must continue to ensure the legislation protects both Europe’s environmental ambitions and the competitiveness of its maritime sector.”

The Forum is also calling for permanent exemptions for island member states and other geographically disadvantaged regions, arguing that their dependence on maritime transport places them at a structural disadvantage.

Xerri said Malta’s insularity makes reliable maritime connectivity essential for both consumers and businesses, and that this should be permanently recognised within the EU ETS framework.

The MMF further urged the European Commission to clarify what would happen should the International Maritime Organization (IMO) introduce a global carbon pricing mechanism for shipping. The Forum believes the Commission should commit to withdrawing the regional ETS regime if a global measure is adopted, thereby avoiding overlapping compliance obligations and additional costs for shipping operators.

The Forum also welcomed proposals to earmark EU ETS revenues for the shipping sector through both national funding and the planned Maritime Transport Decarbonisation Fund.

However, it argued that financial support should extend beyond wind-assisted propulsion and shore-side electricity to include a broader range of technologies capable of improving energy efficiency and reducing emissions across all shipping segments, including short-sea, bulk and tramp shipping.

The MMF said it remains committed to working with the Maltese government, European institutions and industry stakeholders to pursue further reforms to the EU ETS Maritime framework, particularly those recognising the unique challenges faced by island states that rely heavily on maritime links for their supply chains.

The post MMF welcomes proposed EU ETS changes but says more reforms are needed to protect Malta’s maritime sector first appeared on The Malta Business Weekly.

The Malta Maritime Forum (MMF) has called for active measures to strengthen Malta’s position as a regional maritime hub, warning that growing geopolitical uncertainty, regulatory pressures and the transition towards decarbonisation are reshaping the global shipping landscape.

Addressing the Forum’s Annual General Assembly held at MaritimeMT, MMF chairman Godwin Xerri presented a 77-point maritime-centred electoral manifesto aimed at reinforcing the sector’s strategic contribution to the Maltese economy ahead of the next general election.

The proposals, which have already been presented to Malta’s main political parties, focus on four key areas: governance, the National Maritime Transport Strategy, education and skills, and infrastructure. Central among the recommendations is the re-establishment of a National Maritime Authority, a measure the forum argues would improve coordination, accelerate decision-making and provide clearer strategic direction for the industry.

Xerri also called for the appointment of a minister specifically responsible for maritime affairs, supported by a permanent interministerial structure to strengthen coordination across government.

“The common objective across all proposals is to strengthen the industry’s role within the economy and position Malta as a leading regional maritime hub,” he said.

The MMF stressed that Malta’s maritime policies must align both with the government’s Vision 2050 framework and emerging European Union strategies. Xerri argued that EU policies should better reflect the realities faced by island states such as Malta, particularly as the industry grapples with digitalisation and decarbonisation requirements.

Among the forum’s proposals are measures to enhance the competitiveness of the Malta ship registry, attract investment in ship finance and support the development of clean-fuel bunkering infrastructure.

On infrastructure, the MMF reiterated its call for new multi-purpose quays within the Grand Harbour and urged the government to proceed with the long-delayed Ras Ħanżir project before works linked to the Grand Harbour Revival Plan commence. The forum also renewed calls for a full nautical risk assessment to safeguard existing and future commercial port activity.

Addressing members during the assembly, MMF CEO Kevin J. Borg outlined the organisation’s lobbying efforts in Brussels, particularly concerning the European Union Emissions Trading System (EU ETS).

Borg said an MMF delegation had met European Commission officials, Maltese MEPs and European Commissioner Glenn Micallef earlier this year to highlight concerns about carbon leakage and business competitiveness arising from the current ETS framework.

While supporting the principle behind the emissions system, the forum argued that revisions are needed to better reflect the operational realities of European ports and maritime operators.

The MMF has also submitted formal positions to the European Commission regarding the EU’s Islands and Coastal Communities Communication, as well as proposed Ports and Maritime Industrial strategies.

Meanwhile, Kenneth Farrugia, CEO of Bank of Valletta, highlighted the banking sector’s role in supporting the industry’s next phase of growth.

Farrugia pointed to opportunities in ship finance and noted that the bank is exploring syndicated financing structures in collaboration with the MMF. He also emphasised the importance of financing digitalisation and green investments through partnerships with the European Investment Bank and the Malta Development Bank.

The BOV CEO underlined the importance of compliance, transparency and anti-money laundering procedures, while noting that a resilient maritime ecosystem remains critical to Malta’s wider economy given the country’s dependence on maritime connectivity.

Economic projections presented by economist Gordon Cordina showed the maritime industry continued to expand steadily between 2018 and 2025, driven by port activities, maritime business services and water transport.

Cordina said the sector now generates 4.8% of Malta’s value added while accounting for around 2% of national employment, making labour productivity in the industry more than double the economy-wide average.

He noted that future growth should increasingly focus on high-productivity services such as regulatory and governance functions, maritime finance and legal services, as well as education and human capital development.

“The industry is of systemic importance to Malta’s economic model,” Cordina said, adding that continued competitiveness and sustainability would be essential for long-term economic resilience and the successful implementation of the National Maritime Transport Strategy.

He concluded that Malta’s maritime ambitions under Vision 2050 would depend on continued innovation, private investment and political commitment to higher-value maritime services.

The post Malta Maritime Forum calls for dedicated authority as sector targets high-value growth first appeared on The Malta Business Weekly.

This was announced by Chief Executive Officer Alan Borg at the Company’s 34th annual general meeting earlier today. The financing comprises a €50 million loan for a term of five years and a €50 million loan for a term of seven years.

“The backing of a leading local bank reflects shared confidence in our vision for Malta International Airport and its role in the future of the tourism industry.  Besides leveraging our projects, the financing will allow us to preserve our liquidity to ensure that ongoing financial obligations towards employees, business partners, and shareholders can continue to be met,” said Malta International Airport Chief Executive Officer, Alan Borg.

The Company is currently undertaking the most significant upgrade to airport facilities since privatisation through the East Expansion project, the centrepiece of a €345 million investment programme.

Unveiled earlier this year, the project will expand terminal facilities across a gross floor area of 26,000 m2 by 2028, introducing 32 new check-in desks, five departure gates and a crew gate alongside additional circulation, baggage sorting, and commercial space.

Since the investment was announced, site enabling and mobilisation works have progressed according to schedule, including excavation below road level, the rerouting of critical building services, and the establishment of safe access routes.

In parallel, works on SkyParks 2 have continued apace, with the final quarter of 2026 being targeted for the handover of the hotel building, which is being developed as part of the project, to its operator in shell form. Earlier this year, it was announced that the four-star hotel will be operated by Claret Group under hospitality company Accor’s Tribe brand.

The progress achieved on the East Expansion and SkyParks 2 builds on the successful delivery of a number of key projects within the Company’s five-year investment plan in 2025. Through capital expenditure of €61.6 million, the Company reinvested nearly 40 per cent of its annual revenue into projects aimed at strengthening operational resilience, modernising the airport infrastructure, and enhancing the passenger experience.

The post MIA secures €100m financing as it forges ahead with multimillion investment programme first appeared on The Malta Business Weekly.

In an interview with The Malta Business Weekly, Etienne Attard says the logistics industry has moved beyond reacting to occasional shocks and is now adapting to a fundamentally different global trading environment shaped by geopolitical instability, trade fragmentation, energy volatility, and supply chain insecurity.

“International logistics is no longer characterised by episodic disruption,” Attard explains. “What we are seeing today is a structural condition of uncertainty that is reshaping the entire sector.”

With more than seventy years of experience in transport and logistics, Express Trailers has witnessed multiple economic and geopolitical cycles. However, Attard argues that the current environment differs significantly from previous periods of volatility.

“In the past, crises were generally viewed as temporary events — whether it was the pandemic, the war in Ukraine, port congestion, or energy shocks. The assumption was always that markets would eventually stabilise. Today, there is growing recognition across the industry that instability itself has become the operating environment.”

According to Attard, the traditional logistics model built around efficiency optimisation and predictable globalisation is being replaced by one centred on resilience and adaptability.

“Global trade is more fragmented, more politicised, and less predictable than at any point in recent decades,” he says. “Supply chains are now being redesigned around the expectation of recurring disruption rather than stable international conditions.”

The impact is particularly visible in smaller and strategically located markets such as Malta, where maritime connectivity and international trade routes are critical to economic activity.

“For Malta’s logistics sector, trade wars, tariff volatility, and maritime insecurity can no longer be treated as temporary distortions,” Attard notes. “They are increasingly structural features that directly influence routing decisions, pricing, transit times, and customer behaviour.”

One of the most immediate challenges facing operators is growing operational complexity.

Attard identifies three major dynamics currently reshaping the sector.

“The first is persistent route volatility,” he explains. “Disruptions in maritime corridors such as the Red Sea have forced significant rerouting around Africa, increasing transit times and creating cascading effects throughout supply chains.”

A second challenge is regulatory fragmentation.

“As trade blocs become more rigid and tariff regimes shift more frequently, logistics companies are having to develop stronger capabilities in customs intelligence, compliance management, and regulatory coordination,” he says. “These are no longer administrative functions — they are now strategic operational requirements.”

At the same time, customer expectations are also evolving rapidly.

“Many businesses are moving away from purely cost-driven just-in-time supply chain models,” Attard says. “There is a growing emphasis on resilience, redundancy, regional diversification, and maintaining higher inventory buffers.”

This transformation, he argues, is also changing the role of logistics providers themselves.

“The sector is becoming less transactional and far more advisory in nature. Customers increasingly need partners who can help them interpret instability, manage scenarios, and maintain visibility across disrupted networks.”

For operators in Malta, this creates both pressure and opportunity.

“The pressure is clear — tighter margins, shorter planning cycles, and less predictable asset utilisation,” Attard says. “Traditional efficiency-led models are becoming increasingly insufficient.”

However, he believes companies that can offer agility, intelligence, and responsiveness will be best positioned to grow.

“As complexity increases, so does the value of orchestration,” he explains. “Logistics providers are evolving from transport operators into strategic intermediaries between global volatility and local execution.”

In this environment, Attard believes scale alone is no longer enough.

“The key differentiators today are adaptability, information, and responsiveness,” he says.

Looking ahead, Attard believes the industry must abandon the expectation that global logistics will eventually return to a stable equilibrium.

“The strategic question is no longer how to return to normal,” he concludes. “The real question is how to operate reliably in a world where normal no longer exists.”

The post ‘Today, logistics is about helping clients manage permanent disruption’ first appeared on The Malta Business Weekly.

Deputy Prime Minister and Tourism Minister Ian Borg on Thursday announced a series of tourism-related measures and proposals aimed at improving the quality of Malta’s tourism product and supporting investment across the hospitality and cruise sectors.

The measures were announced during a press conference in St Julian’s attended by Borg, Parliamentary Secretary Alison Zerafa Civelli and Labour candidate Cressida Galea.

Among the key announcements was an increase in the eco-contribution charged on tourist overnight stays.

Zerafa Civelli said the fee will rise from 50 cents to €1.50 per person, per night, as from 1 July, 2026. The move is a measure which had been announced for this year’s Budget.

She also announced that 50 cents collected from each contribution will be allocated directly to Local Councils, with funds distributed according to the impact of tourism activity on each locality.

Borg said that the tourism industry has reached a stage where operators are reporting strong results even during the traditional shoulder season, prompting the government to shift its focus towards improving quality standards within the sector.

As part of this approach, the government is proposing a new tax credit scheme for tourism accommodation providers investing in renovation projects, higher standards, and improved customer experiences.

The scheme is intended to encourage upgrades to existing tourist accommodation establishments.

Another proposal targets Malta’s restaurant industry, which Borg described as a highly diversified and high-quality sector that must remain competitive.

Government said it plans to establish a €30 million fund dedicated to investment in restaurants.

Independent restaurants will be eligible to apply for grants of up to €300,000 to improve their product offering, enhance customer experience, train employees, or renovate their premises.

Borg also outlined plans to continue investing in cruise liner infrastructure at the Grand Harbour as Malta seeks to expand its home-porting operations and attract more luxury cruise liners.

Borg said that Malta has become a strategic pillar in the Mediterranean cruise industry, with close to one million passengers using the country’s ports annually.

He said voyages beginning or ending in Malta generate greater economic value for the local economy compared to transit visits.

Addressing questions from journalists about whether the new measures amounted to an acknowledgment of over-tourism in Malta, Borg rejected the suggestion and defended the importance of the tourism industry to the country’s economy.

Borg said the government would not accept statements that “undermine business, undermine investment, and undermine a sector that is crucial to our country’s economy.”

He said the government remained conscious of tourism numbers and the need for sustainable growth, while noting that many countries aspire to attract similar visitor figures.

“It is important that we grow intelligently and grow with quality,” Borg said, describing this as the main challenge facing the sector moving forward.

The post Malta to triple tourist eco-contribution from July first appeared on The Malta Business Weekly.

“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.