In an interview with this media house, he characterised this argument as misleading, asserting that an economic model is a dynamic framework designed to incentivise growth and build national resilience rather than a static set of activities. According to the Minister, the strategy has evolved through distinct phases dictated by the immediate needs of the country, moving from a focus on basic employment to a sophisticated emphasis on high-value industries.

Reflecting on the state of the nation in 2013, Schembri noted that the Labour government inherited a stagnant economy marked by high unemployment and an excessive deficit procedure. At that time, the priority was the restoration of economic fundamentals. He argued that when families are struggling with unemployment, the immediate requirement is job creation rather than a discussion on the quality of those jobs.

The first five years of the Labour administration were therefore dedicated to jumpstarting activity and stabilising national finances. He suggested that while previous administrations may have had aspirations for the country, they lacked the capacity to actually generate the wealth necessary to fund those ambitions.

The transition to a more refined model was interrupted by the global pandemic, which shifted the government’s focus toward preservation. Schembri explained that the primary goal during those two years was to protect existing businesses and employment so that the country would be in a position to restart once the crisis subsided. He contrasted Malta’s performance with that of larger, resource-rich nations that struggled significantly more during the same period. By 2023, the government felt the foundations were strong enough to initiate the next phase of the strategy, which prioritises value-added activity over simple job volume.

This shift is evidenced by recent investments in specialized sectors such as aviation, semiconductors, medical technology, pharmaceuticals, and the digital economy, including blockchain and video game development. Schembri pointed out that the spike in GDP growth from 2023 onwards is a direct result of this focus on higher value.

He addressed political criticism by stating that new economic niches do not mature overnight, often requiring three to five years to show results. He cited the gaming industry as an example of a sector that took years to reach maturity under both parties, suggesting that the current government is now seeing the fruits of frameworks established in 2018 and 2019.

Regarding the challenges of rapid expansion, the Minister admitted that the pace of growth triggered a housing rush that lacked sufficient coordination. He acknowledged the resulting issues with uglification and urban standards, conceding that the government could have managed planning more effectively. He noted that long-term coordination and improved standards are now central pillars of the Vision 2050 document, which aims to provide a more structured roadmap for the country’s future development. He also teased an upcoming announcement regarding what he described as the largest new foreign direct investment in Malta’s history, surpassing previous significant expansions in the manufacturing sector.

The interview also touched upon the impact of international instability, specifically the ongoing conflicts in the Middle East. Schembri observed that as a small and open economy that imports 70 per cent of its consumed products, Malta is highly sensitive to shifts in global logistics and supply chains. While acknowledging the volatility of the geopolitical situation, he sought to reassure the public that the government is monitoring developments closely. He noted that the experience gained during the pandemic and the Russia-Ukraine war has provided the administration with the expertise needed to manage such crises. Currently, he does not anticipate significant disruptions to the supply chain from the situation in Iran, noting that the Freeport has already adjusted its routes.

On the topic of inflation and the cost of living, the minister emphasized a scientific approach to government intervention. He defended the energy and fuel subsidies and the Stabbilta mechanism, which aimed to stabilise the prices of essential goods. He argued against implementing broad, reactionary measures based on media pressure, suggesting that interventions must be tailored to specific types of inflation, whether imported, induced, or supply-side. He credited the country’s strong “war chest” and healthy finances for providing the cushion necessary to intervene where needed, while also noting that fuel hedging provides a level of price stability for the coming months.

Ultimately, Schembri framed the government’s approach as one of calculated progression. By moving from a survivalist focus on job creation to a sophisticated pursuit of high-tech niches, he believes the administration has created an economic engine capable of sustaining the country’s standard of living while beginning to address the secondary effects of that growth, such as urban planning and infrastructure coordination. He challenged political opponents to move beyond populist criticism and provide concrete alternatives, particularly regarding their views on population and specific economic sectors.

This is an abridged version of an interview which was carried in The Malta Independent on Sunday on 15 March

The post Value added, not cheap labour, is the future of Malta’s economy, says Schembri first appeared on The Malta Business Weekly.

Xuereb, who also serves as chief Operations officer of Global Ports Holding, said the move forms part of a broader strategy to expand home porting operations and strengthen Malta’s position as a Mediterranean cruise hub.

The port recorded a landmark year in 2025, with 962,966 passengers passing through its facilities across 385 cruise calls. While this represents strong performance, Xuereb noted that most calls are transit visits, meaning passengers spend only the day in Malta. Cruise ships typically berth at 8am and depart around 6pm, limiting visitor engagement to roughly 10 hours.

The port’s strategic focus is now shifting toward home porting and fly-cruise operations, where voyages begin or end in Malta. Unlike transit calls, home port operations generate additional economic activity through air travel, hotel stays and extended tourism. Xuereb argued that cruise-and-stay packages are particularly valuable, as they encourage passengers to arrive earlier or remain after disembarkation, converting cruise visitors into stay-over tourists. This increases per capita expenditure, lengthens stays and deepens engagement with the destination.

Home port operations generally run between 4am and 10pm, sometimes extending overnight to accommodate boarding. However, the current terminal infrastructure is limited. The existing facility is small, and the company believes a purpose-built home port terminal is necessary to support its expansion plans.

Such a terminal is not included in the government’s Grand Harbour Revival Plan. Xuereb said the port is seeking further clarity on planned infrastructure changes before submitting a formal proposal. Ideally, the new facility would be located at the Deep Water Quay, which he described as the only logical adjacent expansion point. Splitting operations across multiple locations on a small island would be inefficient, he argued, and expansion toward the Deep Water Quay aligns with the broader government vision.

Xuereb welcomed the public consultation process surrounding the Grand Harbour plan, describing it as a long-term and transformative vision that balances heritage preservation, public access and mixed-use development. He said regeneration efforts complement cruise operations and enhance the wider destination experience. The cruise port and the Valletta Waterfront, he added, have already played a catalytic role in revitalising the area. The port is participating in consultations both independently and through the Malta Maritime Forum.

Space remains the port’s primary operational constraint. Situated at the foot of the capital beneath historic bastions, the narrow strip between quay and fortifications limits flexibility. Xuereb acknowledged these challenges but said operational efficiency has improved as a result. He also credited support from national authorities, particularly the Transport and Tourism ministries, and highlighted the importance of Transport Malta officials in managing traffic during busy operational days.

Looking ahead, 2026 is expected to build on the momentum of 2025, which surpassed pre-pandemic highs recorded in 2019. Cruise calls are projected to increase by around 20% to 420, although passenger numbers will remain broadly stable. This reflects a shift toward smaller, luxury vessels with lower capacity.

The rise in luxury cruising is influencing both port operations and onshore offerings. According to Xuereb, higher-end guests increasingly request exclusive experiences such as private concerts, lunches in private residences or curated wine-tastings. Luxury cruise lines sometimes even request scheduling gaps to avoid sharing port space with large ships. In response to growing demand for high-service travel, some major operators have adopted a “ship-within-a-ship” model, creating premium enclaves within larger vessels that combine exclusivity with the amenities of mass-market cruising. This hybrid approach allows operators to serve more discerning clientele without sacrificing scale.

Xuereb emphasised the sector’s strategic value as a gateway market: 80% of cruise passengers last year were first-time visitors to Malta. Of the remaining 20% who had previously visited, two-thirds had first discovered the island via cruise travel. Additionally, 87% expressed interest in returning for a longer stay, and nearly 90% rated Malta eight out of 10 or higher when asked if they would recommend it. In Xuereb’s view, cruises function as a powerful marketing channel, generating repeat visitation and sustained tourism growth.

He suggested that Malta could leverage cruise arrivals more effectively within its broader tourism strategy. Delivering a high-quality experience during a brief port call is essential if visitors are to return. Infrastructure improvements, reduced waiting times at cultural sites and smoother traffic management would enhance overall satisfaction. While the port manages the on-quay experience, the wider visitor journey depends on coordination across multiple stakeholders.

Demographic shifts are also reshaping the sector. When Xuereb entered the industry more than two decades ago, the average cruise passenger was over 65. Today, the global average age has fallen to around 45, reflecting broader market diversification. The cruise season has likewise expanded. What was once concentrated between May and September now stretches from March through November, with winter cruising increasingly common. According to industry data, nearly one-third of global cruise passengers in the past two years were first-time cruisers.

Malta’s central Mediterranean location supports its inclusion in Western, Eastern and Adriatic itineraries, reinforcing its strategic appeal. Cruise visitors are also venturing beyond Valletta during stopovers. Excursions frequently include trips to Mosta, Mdina and Rabat, as well as combined cultural tours linking the Upper Barrakka Gardens and St John’s Co-Cathedral with the Tarxien Temples and Mdina’s ramparts. Experiential activities such as Maltese cooking classes, wine and olive oil tastings, and visits to prehistoric temple complexes are increasingly popular. Smaller-group or private excursions – including visits to the Blue Grotto and Marsaxlokk – are also in growing demand.

In parallel with operational expansion, several infrastructure projects are underway. The government, through Transport Malta and Infrastructure Malta, is widening the Pinto 4 and 5 quays. The cruise port is developing a four-storey car park within the Valletta Waterfront precinct. Additionally, the historic old power station complex in Floriana, located at the foot of Crucifix Hill, is set to be converted into a boutique hotel under an agreement with a local hospitality company.

Environmental measures are also advancing. Valletta became the first Mediterranean port to provide onshore power supply to cruise ships through its shore-to-ship project. In 2025, approximately 107 vessels connected to the system, significantly reducing emissions in the harbour area. Xuereb noted that each vessel requires technical adaptation and testing before connecting, but described the initiative as a major success that contributes meaningfully to carbon reduction.

The post Valletta Cruise Port pushes for new terminal as part of Grand Harbour vision first appeared on The Malta Business Weekly.

In an interview with this media house, Mario Xuereb, MBB CEO, said that the directive gives incentives for using lower emission transport modes when choosing alternative transport methods which are less polluting, by combining road legs with more eco-friendly rail or waterway legs for cargo for instance.

“But the problem with Malta is that its connectivity with Europe is based on the sea, and the sea, unless only for short distances, is not considered under this directive,” he said. The MBB is advocating for the EU to acknowledge island-mainland connections as combined transport, to ensure fairer treatment.

Turning to EU greenhouse gas emissions targets, he said that they need to be met, and that many local businesses take initiatives to help reach those targets. “What is important is that there be some leeway for a number of sectors to ensure that they are not negatively impacted or put out of business.”

“We are not against there being environmental targets which include fixed dates, but the way those targets are met needs to be different for everyone.”

Xuereb called on the European Union to introduce “insularity tests” when drafting new legislation, to assess how EU policies disproportionately affect island states and peripheral regions such as Malta. He argued that while the EU Single Market is one of the Union’s greatest achievements, it does not operate on a level playing field for all members, as islands face permanent structural disadvantages that mainland countries often overlook.

Founded in 1996 and marking its 30th anniversary this year, the MBB represents Maltese business interests in Brussels on behalf of the Malta Chamber of Commerce, Enterprise and Industry and the Malta Hotels and Restaurants Association. The bureau engages directly with EU institutions, Malta’s Permanent Representation, and major umbrella organisations such as BusinessEurope, EUROCHAMBRES and HOTREC to influence policy and funding decisions that affect Maltese businesses.

Xuereb described Malta’s disadvantages as a “tax on geography”, stressing that insularity creates higher costs and logistical constraints, particularly in connectivity, transport, and access to markets. While the Single Market has driven growth across Europe, he believes it must better account for regional realities if it is to remain effective. According to Xuereb, fair access to the Single Market requires recognition that not all businesses start from the same position. Being located in an industrial hub in central Europe is fundamentally different from operating on a small island on the EU’s periphery.

To address this imbalance, Xuereb advocates closer cooperation among island states to collectively push for policy changes. However, he acknowledges that it remains difficult for policymakers in mainland Europe to fully grasp island realities. This is where “insularity tests” could play a role, by systematically evaluating the impact of proposed directives on islands and peripheral regions before they are finalised.

He argued that all EU legislation should take island-specific conditions into account, citing several initiatives currently under discussion, including the Public Procurement Act, the Circular Economy Act and the Digital Omnibus. In each case, Xuereb said policymakers should assess how such measures affect islands differently from mainland regions.

Connectivity is one of Malta’s most persistent challenges. Xuereb noted that imports and exports depend almost entirely on sea and air transport, making the country particularly vulnerable to disruptions. He recounts how, during a recent EU meeting, MBB representatives showed images of empty supermarket shelves in Malta following a storm that disrupted shipping. The visual evidence, he said, made a strong impression and sparked immediate discussion, illustrating the importance of backing arguments with concrete data and real-world examples.

At EU level, an Islands Strategy is currently being discussed, though it remains at a conceptual stage. Xuereb expected it to lead to formal recognition of the permanent geographic constraints faced by islands like Malta, alongside clear remedial measures. These should ensure that islands can both benefit fully from EU initiatives, including the Single Market, and mitigate the impact of legislation, particularly in sectors such as maritime and aviation transport.

Xuereb also placed Malta’s concerns within the broader priorities of the current European Commission, led by Ursula von der Leyen, which has placed renewed emphasis on competitiveness and simplification. From Malta’s perspective, competitiveness is undermined by added connectivity costs that do not affect mainland businesses to the same extent. Xuereb reiterates that a “one-size-fits-all” approach cannot work if the EU wants all regions to compete on equal terms globally.

On simplification, he pointed to the regulatory burden introduced by the previous Commission, particularly in relation to reporting requirements linked to environmental targets. While Maltese businesses support environmental objectives, Xuereb said the volume and complexity of reporting imposed significant administrative costs, especially on smaller firms. He welcomes the Commission’s recent shift towards reducing red tape, including the “one-in, one-out” principle, under which any new reporting obligation should be offset by the removal of an existing one.

The MBB’s role, Xuereb explained, is both informational and strategic. It gathers data from businesses to understand their challenges, tracks EU proposals, and explains their implications to Maltese companies. The bureau also participates in EU-funded projects aimed at developing tools to help businesses adapt to new requirements. Additionally, the MBB acts as a technical ally to the Maltese government, basing its policy positions on consultations with members of the Chamber of Commerce and the Malta Hotels and Restaurants Association.

Given Malta’s relatively small presence in Brussels, Xuereb stressed the importance of collaboration. The MBB is the only organisation in its sector with a permanent office there, with two of its nine staff members based in Brussels. As a result, Malta’s influence depends on coordinated efforts among government, agencies, business organisations and political representatives. Xuereb says the MBB maintains open communication channels with ministries, Malta’s Permanent Representation, Maltese MEPs and the EU Commissioner from Malta.

Building alliances beyond Malta is also a priority. Through participation in meetings organised by European umbrella organisations, the MBB seeks to ensure that Malta’s concerns are understood and reflected in broader policy debates. This is particularly important for SMEs, which make up the vast majority of Maltese businesses. Xuereb notes that SMEs rely heavily on the MBB for information and guidance on EU initiatives and funding opportunities.

Looking to the future, Xuereb identified the digital sector as a key area of potential growth for Malta. While the country already has strengths in tourism, financial services and other traditional sectors, he believes digital services can cut across and support multiple industries. He highlights the growing number of digital start-ups in Malta, government support for the sector, and areas such as cybersecurity as promising niches.

Despite these opportunities, Xuereb pointed to specific EU policies that remain a cause for concern. One example is a proposal on Clean Corporate Vehicles, which initially appeared to require companies with heavy vehicles to fully electrify their fleets. While environmentally positive in principle, such a requirement would pose serious challenges in Malta, where space constraints make it difficult to install large-scale charging infrastructure. Through dialogue with the European Commission and coordination with other stakeholders, the MBB helped ensure that the proposal would not make electrification mandatory for heavy vehicles, though Xuereb said vigilance is still needed.

The post MBB wants EU Commission to revise the Combined Transport Directive, CEO Mario Xuereb says first appeared on The Malta Business Weekly.

Central to this strategy is the completion of a new on-site solar farm, which MIA CEO Alan Borg describes as “an important step in our journey towards achieving net zero by 2050”. The facility is expected to generate approximately 5.1 million units of clean energy annually, all of which will be consumed directly by the airport. Borg characterised the project as a major milestone, both in terms of sustainability and long-term cost efficiency.

The solar farm forms part of a broader sustainability and energy-efficiency drive. MIA has invested around €11 million in upgrading its heating, ventilation, and air-conditioning systems to the latest, most efficient technologies, while the transition to LED lighting on the airfield began during the Covid-19 period. These initiatives have helped reduce the airport’s direct emissions, alongside the use of high-quality carbon credits to offset residual emissions where mitigation options are still being explored.

Collectively, these measures have enabled MIA to reach Level 3+ in the Airport Carbon Accreditation programme, granting the airport neutrality status. Borg described this achievement as an external validation of the company’s sustainability progress and an important signal to stakeholders that MIA’s environmental commitments are being translated into measurable results.

Alongside sustainability investments, MIA is advancing one of the most significant capital expenditure programmes in its history. A key component is the eastward expansion of the terminal building, announced in 2025 and expected to open in 2028. The project will extend the terminal by 6,000 square metres and represents the largest single investment within MIA’s €345 million multi-year investment plan.

Borg acknowledged the operational complexity of undertaking such a project while maintaining full airport operations. During peak summer months, the airport handles an average of 32,000 passengers per day, dropping to around 22,000 during winter. Current works are focused on the logistical challenge of integrating the new structure with the existing terminal without disrupting daily operations.

Crucially, the terminal expansion is not designed to significantly increase passenger numbers. Borg stressed that MIA has no ambition to become a 20-million-passenger airport. Instead, the objective is to alleviate congestion and improve service quality for existing traffic levels. The current Departures area, he noted, is constrained and prone to overcrowding during peak periods.

Once completed, the extension will effectively double the size of the Departures area, significantly increasing circulation space and seating capacity. The number of check-in desks will almost double, rising from 35 to 67, while five additional gates and an extra crew gate will be added. The expansion will serve Schengen departures and will also incorporate additional retail and food and beverage outlets.

While the commercial offering is still being shaped with the help of consultants, Borg said there is a strong emphasis on reinforcing the airport’s Maltese identity. Nevertheless, he underlined that the primary value of the project lies in improved comfort, space, and overall passenger experience, rather than retail expansion alone.

Parallel to the terminal works, MIA is investing in complementary infrastructure and technology upgrades. In recent years, the airport expanded Apron 8, adding eight aircraft stands and unlocking additional airside capacity. More recently, MIA introduced C3 security scanners, allowing passengers to keep liquids and electronics in their bags and easing the 100ml liquid restriction.

From an operational standpoint, the company is currently prioritising backend systems rather than passenger-facing automation. MIA has invested around €1 million in upgrading its Airport Management System, described by Borg as the “heart of the airport”, as well as commissioning an upgrade to the baggage tracking system. While biometric processing and automated bag drops remain part of MIA’s long-term vision, Borg said these investments have been deliberately deferred until after the new departures and check-in areas come online.

Another major pillar of MIA’s growth strategy is property development, most notably the SkyParks 2 project. The development will include three blocks, two of which will primarily offer office space, expanding the amenities of the existing SkyParks Business Centre. The third block will house a four-star business hotel.

Borg was keen to distinguish the hotel from a traditional airport hotel concept, describing it instead as a business hotel serving the growing commercial hub around the airport. Once SkyParks and SkyParks 2 are fully operational, MIA expects around 3,000 people to be working on site. In this context, the addition of a nearby hotel is seen as a logical support facility for business travellers and corporate users. Final negotiations are ongoing, with brand visuals expected to be unveiled in the coming weeks. The entire SkyParks 2 project is scheduled for completion by the end of 2027.

Beyond these projects, MIA’s master plan includes space for a potential additional business centre, though Borg indicated that the company’s immediate focus remains firmly on delivering the terminal expansion and SkyParks 2 before committing to further large-scale developments.

From a financial perspective, Borg emphasised the importance of balancing reinvestment with shareholder returns. He said MIA aims to continue investing in its workforce and infrastructure while maintaining its track record as a stable dividend payer. “I can promise shareholders stability,” Borg said, noting that the company’s dividend policy is not expected to change in the short-term.

MIA currently employs 535 people, a figure that is expected to rise gradually as operations and developments expand. Borg also highlighted the airport’s resilience in the face of geopolitical uncertainty, noting that despite disruptions in certain markets, Malta’s tourism sector has continued to deliver record passenger numbers in recent years. MIA’s guidance points to growth of around 5% over the previous year, suggesting confidence in the near-term outlook.

Route development remains a strategic priority, particularly in the context of Malta’s shift towards higher value tourism. A major milestone will be reached this year with the launch of Delta Air Lines’ direct service between Malta and New York’s JFK Airport, operating between June and October. Borg described the route as strategically significant, given the high average spend associated with US tourists.

MIA’s immediate focus is on ensuring the commercial success of this operation, in close coordination with the Malta Tourism Authority. Borg said that a strong performance could lead to an extension of the operating season and potentially attract additional North American routes, either from Delta or other carriers.

Within Europe, Malta is already connected to 111 destinations, and MIA’s strategy is increasingly focused on increasing flight frequencies rather than adding new routes. Particular attention is being given to shoulder and winter months, with the Scandinavian market identified as a key growth area. Passenger numbers from Scandinavia grew by 20% between 2024 and 2025, reflecting travel patterns that align well with Malta’s off-peak objectives.

MIA is also working to rebuild traffic from Germany, despite broader challenges affecting travel within the German market. Borg said engagement with airline partners remains ongoing to recover and stabilise connectivity from that region.

Looking ahead, Borg does not expect passenger growth to continue at the same pace seen over the past five years, but remains confident in the airport’s long-term prospects. He reiterated that MIA’s role is not to drive volume for its own sake, but to ensure Malta is connected to markets capable of delivering sustainable, high-value tourism.

In this context, the airport’s investments in infrastructure, sustainability, technology, and property development are designed to support quality, resilience, and long-term competitiveness. As Borg put it, the focus is on creating the right conditions for Malta’s tourism and business sectors to thrive, rather than simply chasing headline passenger numbers.

The post MIA accelerates investment drive with solar farm, terminal expansion, and SkyParks 2 first appeared on The Malta Business Weekly.

Interconnect Malta had launched the procurement process for the design and construction of two utility-scale Battery Energy Storage Systems (BESS).

“These BESS will support a greater integration of renewable energy sources into the Maltese electricity grid. They will provide services to address the intermittency of renewable energy sources, enabling the storage of electricity generated during peak photovoltaic production hours and shifting it to periods of lower renewable energy sources output, when consumer demand is higher,” Interconnect Malta had said last November.

Dalli, during an interview with this newsroom, said that 16 offers have been made.

She said that the government is aiming to increase the percentage of renewable energy generated, such as through the offshore wind farm project, and that battery energy storage system projects tie in with this.

“Currently we are using renewable energy as it is generated,” she said, mentioning solar technology. “We also want to be able to use that energy at night. We issued a call for offers for around 40 megawatts of battery energy storage systems, which are mass storage, and there was a lot of interest. 16 offers were made. This shows the interest there is in this kind of innovative technology. This battery energy storage system project was categorised by the EU as a project of general economic interest, meaning that the EU recognises that this is an important project for our country,” Dalli said.

Two locations had been identified for this battery energy storage project, one of which is in the Delimara power station, and another is to be located underground in the old Marsa power station. “Obviously all health and safety measures would have taken place and were passed and approved,” she said.

Regarding the offshore renewable energy project, the government recently issued a public call to businesses interested in building the country’s first offshore windfarm.

Describing this project as a one which requires long-term planning, Dalli said it is not necessarily one that would be completed while she is the minister responsible for the sector, “but the foundations need to be completed so that the project could be done for the good of the country.”

The project is for floating offshore renewables, she said. “It is one of the first projects of this kind.”

Describing what the government has done thus far, she said it had looked into which areas at sea make sense for this kind of project, and through a premarket consultation checked what kind of interest there is for different projects in Malta’s exclusive economic zone. “We drafted the policy for offshore renewables, and now we reached the pre-qualifications questionnaire (PQQ) stage, where it was issued. In this phase, investors who are interested can ask a number of questions, and it seems there was interest in this regard, as a number of questions to know more about the project were asked. This PQQ was meant to close in March, but when we saw all the interest we decided to extend the PQQ until the end of June, beginning of July. So we are looking at what interest there would be from investors who put forward their offers to continue with this process.”

Asked what year the first offshore windfarm project is expected to be complete, she reiterated that it is a long-term project. “This is a project that we foresee materialising after 2030.”

After the PQQ closes, through the procurement procedures the authorities will look at the interest generated and will look at the technical and financial capabilities of investors who come forward, she said.

Dalli was asked about the recent controversy in Qajjenza

A Planning Control application was approved for a site used by Enemalta in Qajjenza which would mean that part of the site would be used for residential purposes, part for commercial purposes, and the rest as public space. Asked why the whole site won’t be turned into public open space, Dalli said: “That land does not all belong to Enemalta, part of it belongs to the private sector.”

“The land owned by Enemalta was, is and will remain owned by Enemalta,” she stressed. “Enemalta will not pass on its land to the private sector. Obviously that land has value for the corporation.”

“80% of its land will be used as public open space and parking for residents, as one of the issues residents in Qajjenza have is a lack of parking, and 20% of the land will be built for the needs of Enemalta.”

“Enemalta is also to make land next to this Qajjenza plant accessible to people,” she said. “There, an open space would be created on other land.”

“Enemalta looked at the needs of the community. I wish that the private sector would also see what the needs of the community in Qajjenza are. I know that one of the things the people living in the area of Qajjenza and Birzebbugia need is a home for the elderly.”

She also referred to the Siċċa project which is nearby, among other projects in the area.

The post 16 offers made for development of Malta’s first large-scale utility battery energy storage systems first appeared on The Malta Business Weekly.

A court on Wednesday found enough prima facie evidence for Scicluna, and others to be indicted. Ronald Mizzi, who is also charged, resigned from his position as Permanent Secretary within the Economy Ministry soon after the court decree was issued.

This newsroom asked Scicluna whether he will be stepping down from his post as Central Bank Governor or staying on following the decree.

“I have already answered that question outside the law courts some time ago. The EU Treaty is protecting me as a Eurosystem Governor from these very kind of pressures when ever they arise,” he responded.

Scicluna has faced calls for his resignation since it had become known that he was to be charged in connection to the hospitals deal, but has so far not done so. Just prior to the first sitting in his court case last May, Scicluna had said “With regard to the resignation of a governor there is a great difference between a governor and a minister. A minister is the prerogative of the Prime Minister. In the case of a governor of a Central Bank in the Eurosystem of Europe, this is governed by a European treaty and by the statute of the European Central Bank. They have to decide, to take a position, there are strict conditions so that there is no interference from the government, opposition or NGO regarding a resignation,” he had said.

But his response on Thursday can also be seen as being in defiance of a statement made by Prime Minister Robert Abela on Wednesday. The Prime Minister had strongly indicated, following Wednesday’s court decision, that Scicluna should step down.

While saying that Scicluna has not been found guilty of anything and that the presumption of innocence still stands, Abela said that the stage that one finds themselves in today means that the process will take long.

“The process could take months or years. The question that arises is whether the Central Bank can be led by a governor who, despite the presumption of innocence, I also believe that the correct decision that must be transported to the post of Central Bank Governor is the example that was set by the former Deputy Prime Minister (Chris Fearne) and the former Permanent Secretary (Ronald Mizzi). I believe good sense will prevail as will the national interest and above all the interest of a particular sector that until now is overseen by Professor Scicluna.”

Chris Fearne stepped down from the role of Deputy Prime Minister after it became known that he was to be charged in court. Mizzi resigned yesterday, soon after the magistrate read out his decree.

The post ‘The EU treaty protects me from these kind of pressures,’ Scicluna says when asked if he will resign first appeared on The Malta Business Weekly.

Since the court judgements are under appeal, the decisions are not final, an FIAU official said, adding that the FIAU is still obliged to carry out its work.

One such case was by Phoenix Payments Limited. The company was claiming to have suffered a breach of the constitutional right to a “fair trial by an independent and impartial court established by law.” The court ruled that the administrative fine inflicted in this case was indeed punitive in nature and that the Constitutional fair trial safeguards applied, as a result. “While it is true that…a subject person on whom an administrative punishment had been imposed has the right of recourse to the Court of Appeal…this court finds that this does not neutralise or correct the anti-constitutionality of the proceedings before the FIAU,” said the judge in reply to the defendants’ argument that Phoenix had not exhausted its ordinary remedies before filing Constitutional proceedings. “The right to a fair trial applies from the moment the person is accused and not after a decision is given by an entity [the FIAU] which is not a Court under the Code of Organisation and Civil Procedure.” In recognition of the fact that the law itself was being declared unconstitutional, and that the FIAU was simply carrying out its duties as obliged to under that law, it was not ordered to bear costs, which were to be borne solely by the State Advocate. The case is now under appeal.

Asked what the FIAU is doing and how it will work around this problem, the unit’s Acting Director Alfred Zammit said that this issue needs to be settled as soon as possible.

He looks forward to the final outcomes of the appeals, “as this will give us clarity on the system.”

There are a number of cases ongoing, he said. “In the end, whatever happens we need to make sure that we have a very robust and technically tested system. It wouldn’t be right to react prematurely.”

He said that no court has disagreed with the breaches found by the FIAU, but rather with the fines imposed.

He said that the system Malta has today is the result of interactions that it had with international standards bodies as well. “It has also been closely evaluated by the FATF, by the European Banking Authority. The laws we have in place have been there for quite a long time.”

The situation arising now, he said, came about as the FIAU has increased its supervisory outreach, “because we carried out more examinations. This led us to finding more instances of non-compliance and that is where we had to take action.”

The FIAU is carrying out research with other countries “to understand their setups.”

“There are countries that have the exact same setup we have in Malta, there are countries with other setups also. We are not sitting and waiting,” he said. “While we are looking forward for the court procedures to close, at the same time we are trying to learn as much as we can to understand other countries’ setups.”

Asked if, in the meantime, the FIAU has stopped issuing fines, Zammit said that the FIAU cannot do so. “We need to continue exercising our responsibilities (…) Our role is to implement the law.”

It was pointed out that there have been more than one case where the court declared that the method the FIAU is using to fine people is unconstitutional. Another FIAU official said, however, that it is not finalised (referring to the appeals), “so we cannot stop doing our work otherwise then we would not be doing our job.”

Zammit said that “we are all looking forward to having clarity and the final ruling by the court to be issued as soon as possible.”

“We cannot simply stop. Enforcement plays a very important element in a country’s framework,” Zammit said. “The levels of compliance have increased significantly for many reasons. One of those reasons is the fact that there has been increased enforcement. This is true in Malta and other countries.”

Since the court decisions are under appeal, the judgement is not final, an FIAU official said, adding that the FIAU is still obliged to conduct its work.

Asked if they have a backup plan in case the decision goes against the FIAU’s current system, Zammit said: “We are carrying out a lot of research. But you need to understand that this is not an FIAU matter. What is being challenged is the law, and there are other laws which are similair to those regarding the FIAU. So it’s not just the FIAU, which is why it is very important to exhaust all measures and ensure that if any changes need to be made, these changes will work in the favour of the country’s framework.”

The post FIAU to continue giving out ‘unconstitutional’ fines as appeals still pending first appeared on The Malta Business Weekly.

Prime Minister Robert Abela and Finance Minister Clyde Caruana said that the current national airline, Air Malta, will fly until 30^th March. The new airline, which will be under the company KM Malta Plc., will then start flying the following day.

This comes after the government and European Commission concluded talks which had been ongoing for around 30 months. Originally, the government had gone to the Commission requesting permission to inject funds into Air Malta, but evidently that was not accepted, and this route was chosen instead.

But the Air Malta branding might not necessarily be lost. Speaking to the press, Finance Minister Clyde Caruana said that Air Malta today rents the brand from a government company IP Holdings. As per the agreement with the European Commission, the new airline would need to tender for the branding.Prime Minister Robert Abela, speaking during a press conference, said that “we are ensuring that Malta will continue to have a national airline (…) One that is stronger, one that makes a profit, and one that serves this country on an economic and social level.”

Abela and Caruana said that the new company will have the same number of aircraft – eight – that Air Malta currently has, and that while the number of routes will reduce, the number of passengers that it will carry will be equivalent to the amount Air Malta carried in 2019.

In all, €350 million will be injected into the new airline. €50 million of this would be working capital, while €300 million would be in the form of assets. For example, unlike the current airline, the new company will own three of the aircraft (a new plane that recently started being used, and two more currently being manufactured) instead of leasing all of its aircraft. In terms of other assets, it will have the hangar in Malta and some land around it, and it will also purchase back the Heathrow and Gatwick slots from Malta Med Air.

Minister Caruana stressed that the change will not be a cosmetic one. The new airline will be flying to 17 destinations, as opposed to the 37 in 2019/2020. The 17 destinations will be Amsterdam, Berlin, Brussels, Catania, Dusseldorf, London Gatwick, London Heathrow, Lyon, Madrid, Milan Linate, Munich, Paris CDG, Paris Orly, Prague, Rome, Vienna and Zurich.

There will be increased frequencies to Rome, Munich, Paris (CDG), Zurich and Vienna. By the year 2026/2027, there is the possibility that Copenhagen will be added as a route.

The minister said that the seat load factor of the new airline will be better than that of Air Malta (which was around 75%), and is predicted to be around 90%. The planes will also fly for more hours each day than they do now, he said.

In a slide shown during the press conference, the new airline would be predicted to see its total revenue exceed total costs in 2025. Air Malta had been making a loss for years.

In addition, after three years, as per the agreement with the European Commission, the government will have to either start seeking a strategic partner, or go down the route of part-privatisation, however Abela and Caruana said that government will retain majority shareholding.

Timelines

It was explained that Air Malta will continue to operate flights up to and including 30th March 2024. All existing and new tickets still to be purchased for travel up to 30th March 2024 will continue to be fully valid and honoured for travel. All bookings for flights on Air Malta for travel on or after 31st March 2024 will be cancelled and Air Malta will refund customers the full cost (including taxes) of any tickets already issued with travel dates on or after 31st March 2024.

Refunds are guaranteed by the Government of Malta as the principal shareholder of Air Malta Plc. According to information provided by the government, customers can apply for refunds from 1st November 2023.

Air Malta tickets for travel on or after 31st March 2024 will not be transferred to the new airline.

From 1st December 2023 customers may book any flights operated by the new airline which will commence operations on 31 March.

Employees

The minister said that the expenditure on wages back in 2019, before covid struck, was €48 million, for over 1,200 employees.

But after the reduction in staff over recent years, it was said that the workforce of Air Malta p.l.c has already been rightsized to a level that is commensurate with its operations. With around 375 employees, wage expenses will amount to €22 million, Caruana said.

Air Malta employees interested in applying for employment with the new airline will be required to apply and will not be transferred over, it was said.

The new airline will have its own new employment conditions that are different from those of Air Malta plc. which, the Prime Minister and minister said, would be commensurate with market conditions.  “We want to give a fair wage,” Caruana said.

The early retirement schemes which were signed in 2007 and 2008, resulted in €90 million hanging over Air Malta’s head, the minister said. Government has been engaged in discussions and negotiations with the Airline Pilots Association Malta (ALPA) and with the Union of Cabin Crew (UCC), to commute, liquidate and terminate the early retirement provisions in the Collective Agreements subject to certain conditions.

Pilots and cabin crew members will have up to four years after the new company opens to take up the early retirement schemes. However, pilots taking up the scheme would never be able to work with the national airline or in the public sector again, and cabin crew taking up the scheme wouldn’t be able to work within the public sector or with the national airline for six years. If all eligible persons take it, that would cost up to €90 million. This will be paid by the government.

After the 30^th March 2024, Air Malta Plc. will start winding down and will eventually be liquidated.

Flypass

It was also said that the Air Malta Flypass Loyalty Programme will cease for earning and redemption of miles by 29th February 2024. The programme will not be transferred to the new airline. However, Air Malta p.l.c. will pay a monetary value of all unclaimed miles on all active Flypass accounts as at 29th February 2024.

The post New national airline that will replace Air Malta to start flying on 31 March first appeared on The Malta Business Weekly.

The nations represented at the one-day summit included host Malta, France, Greece, Italy, Croatia, Cyprus, Portugal, Slovenia and Spain. Slovenia and Croatia, which have coastlines on the Adriatic Sea, were added to the so-called “Med Group” in 2021.

Two top EU officials — European Commission President Ursula von der Leyen and European Council President Charles Michel — were invited to the closed-door meeting. The leaders of the EU’s 27 nations have an informal European Council meeting scheduled for next week in Granada, Spain.

The European Union considers Portugal, which has a long sea border along the Atlantic Ocean, part of the Mediterranean grouping. Prime Minister Antonio Costa told reporters when he arrived in Malta that “we don’t have great expectations about the results” materializing from Friday’s discussions but the meeting could help “create a path” for the Granada gathering.

“Migration is one of the great issues of the future of the European Union,” Costa said. What’s needed is ”more solidarity, more responsibility and more unity.”

However, unity among EU members on migration has been elusive, as witnessed in Brussels during a Thursday meeting of interior ministers, who are tasked with enforcing individual nations’ rules within the broader contours of EU regulations.

Italy, for example, which now receives by far the largest number of migrants arriving via the Mediterranean Sea, has pushed in vain for fellow EU nations to show solidarity by accepting more of the tens of thousands of people who reach Italian shores.

Many of the migrants are rescued by military boats, humanitarian vessels or merchant ships plying the waters crossed by migrant smugglers’ unseaworthy boats launched mainly from Tunisia, Libya, Turkey and elsewhere. Earlier this month, some 8,000 migrants stepped ashore on Lampedusa, a tiny Italian fishing island, in barely 48 hours, overwhelming the tourist destination.

The relentless arrivals, which slow only when seas are rough, have put political pressure on one of the Malta summit’s attendees — Italian Premier Giorgia Meloni. She came to power a year ago after campaining on a pledge to stop illegal migration, including with a naval blockade, if necessary.

Under current EU rules, the nation where asylum-seekers arrive must shelter there while their applications are processed. In Italy’s case, the majority of migrants arriving by sea from Africa and Asian countries are fleeing poverty, not war or persecution, and aren’t eligible for asylum.

But because Italy has so few repatriation agreements with home countries, it is stymied in sending unsuccessful applicants back. Many migrants slip out of Italy and into northern Europe, their ultimate destination, in hopes of finding family or work.

Little progress has been made on a new EU pact as the member states bicker over which country should take charge of migrants when they arrive and whether other countries should be obligated to help.

Three years after unveiling a plan for sweeping reform of the European Union’s outdated asylum rules, such squabbling fuels doubt as to whether an overhaul will ever become reality.

While heads of government or state represented most countries at Friday’s summit, Spain sent a foreign ministry official because Acting Prime Minister Pedro Sánchez was involved in discussions at home on forming a new government.

While the talks in Malta were heavily concentrated on migration, other common challenges, including climate change, economic growth and continued EU support for Ukraine as it defends itself from Russia’s February 2022 invasion were also on the agenda.

Croatia Prime Minister Andrej Plenkovic, Cyprus President Nikos Christodoulides, France Prime Minister Emmanuel Macron, Greece Prime Minister Kyriakos Mitsotakis, Italy’s Prime Minister Giorgia Meloni, Portugal’s Prime Minister António Costa, Slovenia’s Prime Minister Robert Golob as well as Spain’s State Secretary for the European Union Pascual Ignacio Navarro Ríos will be joining Malta’s Prime Minister Robert Abela for the summit.

The post Leaders of European Union’s Mediterranean nations huddle in Malta to discuss migration first appeared on The Malta Business Weekly.

The survey is the first to be carried out following an agreement signed by Standard Publications Limited and IDEA Intelligence, which administers maltasurvey.com, to develop periodic national surveys on politics, current affairs and other subjects of public interest.

Standard Publications is the publisher of The Malta Independent on Sunday, The Malta Independent (daily), The Malta Business Weekly and www.independent.com.mt

IDEA Intelligence is a data-driven business intelligence wing of the IDEA Group that aims to deliver thorough quantitative insights and information through sophisticated data.

The survey, titled Malta Summer Sentiment 2023, was carried out between 1 and 5 August, and partly focused on some of the major issues that are affecting people in their day to day lives.

Methodology

The online survey targeted people aged between 16-70 years of age. An online invitation was sent on social media platforms and all participants opted to voice their opinion voluntarily. Data gathering was administered solely by MaltaSurvey.com without input from The Malta Independent. While the sample is fully anonymous, demographic variables were utilised in the first section to keep control of the representativeness of the sample. The National Statistics Office census was used to establish the required proportions of the sample by gender, age and region. After collecting the sample, the cases were weighted by the same three variables (gender, age and region) to ensure a close representation of the sample.

With a sample size of 950 participants, the findings have a margin of error of 3% at a 95% confidence level.

This survey was intentionally based on a four-point scale, thus leading respondents to make a clear choice rather than opting for a non-conclusive answer.

Results

Respondents were asked for their level of budget for holidays abroad and local holidays this summer.

48% said €1,000 or less, 27.1% said between €1,001 to €2,000, 12% said between €2,001 to €3,000 and 12.9% said more than €3,000.

Participants were also asked whether this budget is higher than their budget the previous summer. The largest cohort (32.4%) said it is the same, 24.9% said it is more, 21.9% said it’s less and 20.8% weren’t sure.

The survey participants were also asked three separate questions, whether this summer they took or are planning to take an overseas holiday, whether they took or are planning to take a local holiday and whether they have or are planning to visit Gozo.

62.6% answered yes to an overseas holiday, which is higher than the percentage of those who said yes to a local holiday.

31.6% said no to an overseas holiday and 5.9% said they weren’t sure.

Half of the sample showed no intention of having a local holiday (50.1%) this summer. 40.5% said yes to having had or are intending to have a local holiday and 9.5% of the sample was undecided on the matter.

48.3% said yes to planning to visit or having already visited Gozo this summer. This segment of the holiday categories also has the highest rate of uncertainty at 14.7%. 37% said no to visiting the island this summer.

The survey also asked respondents to rate a number of issues.

Both salaries and Malta’s cost of living are given a “poor” rating by the majority in this sample.

When it comes to salaries and salary structures, 59.7% of respondents rated them as “poor”, 29.8% rated them as “fair”, 10.1% said they’re “good” and less than 1% gave an “excellent” rating.

In terms of the cost of living, 73% of respondents rated it as “poor”, with less than 1% rating it as “excellent” and 4.7% rating it as “good”, 21.9% rated it as “fair”.

As for employment conditions, things are slightly better and the majority sentiment is between a “fair” and “poor”.

38.9% of respondents rated employment conditions as “fair” while 38.4% rated them as “poor”, 20.9% said they are “good” and 1.8% said they are “excellent”.

As for population size, 83% of the sample gave it a “poor” rating, followed by 12.7% rating it as “fair” and 4.3% rating it as “good”. Just 0.1% gave it an “excellent” rating, meaning they are not concerned with the rising population in Malta.

Another issue that is clearly a point of concern is traffic.

86% of survey respondents gave traffic levels and traffic flow a “poor” rating, while only 11.6% rated it as “fair” and 2.4% gave it a “good” rating. When it comes to road works, the majority also rated them as “poor”, but the magnitude of this was substantially lower than that of the traffic levels and flow in Malta. 64.8% gave a “poor” rating of their perspective of the road works process in Malta, with 22.7% giving a “fair” rating, 11.1% giving a “good” rating and 1.4% rated the road works process as “excellent”.

The survey also asked about electricity provision. The survey took place soon after the country experienced a series of power cuts in the midst of a major heatwave, which has a high chance of swaying social sentiments in surveys of this manner. The majority of respondents gave a “poor” rating to the country’s electricity provision, at 66.9%; 20.8% of all respondents rated it as “fair”, 10.8% as “good” and 1.7% as “excellent”.

A positive element in the survey was Malta’s healthcare system – 41.3% rate the system as “good” while 14.5% rate it as “excellent”. That means that a combined 55.8% are happy with the quality of the country’s healthcare system. 28.4% of respondents rate the quality of healthcare as “fair” but not good, while 15.9% gave it a “poor” rating.

The post MaltaSurvey: 49% of people who planned a trip this summer had a budget of €1,000 or less – survey first appeared on The Malta Business Weekly.