The strategies, unveiled on 10 June 2026, focus on improving connectivity, boosting economic resilience, and tackling structural barriers affecting islands across Europe.

ATTO chairman Joseph Bugeja said the initiative marks an important step for Malta’s transport and logistics sector, which has long argued that EU policies do not fully reflect the realities of operating from an island state.

“For years, Malta and other island regions have had to work within EU frameworks that failed to adequately address the higher costs, logistical difficulties, and competitiveness challenges linked to insularity,” Bugeja said.

He added that the Commission’s strategy validates concerns repeatedly raised by ATTO over transport inefficiencies, limited connectivity, and the disproportionate burden carried by island-based operators.

ATTO said the Commission’s priorities closely mirror the day-to-day realities faced by Maltese transport operators, who play a key role in maintaining supply chains and supporting economic stability.

The association also welcomed the EU’s commitment to engaging more closely with island stakeholders in future policymaking, saying it is ready to contribute to discussions to ensure Malta’s transport and logistics sector is properly represented.

While describing the announcement as a significant breakthrough, ATTO stressed that the strategy must now lead to concrete legislative and financial measures, particularly in areas such as transport, climate policy, and state aid.

“Only through effective implementation can the full promise of this strategy be realised,” Bugeja said, adding that ATTO looks forward to working with both national and EU institutions to ensure Malta’s realities as an island state are fully recognised in future policymaking.

The post ATTO welcomes EU island strategy for Malta’s transport sector first appeared on The Malta Business Weekly.

The scope of the GBS is to gain deeper insights into sectoral developments and emerging trends, through semi-annual surveys. This business dialogue effort aims to foster regular communication with businesses operating in Gozo, gathering timely data on recent performance, business activity expectations, investment and employment trends, and pricing dynamics. By doing so, the GBS complements official economic indicators, which are often available only with a time lag.

Additionally, businesses are encouraged to share perspectives on sector-specific developments and current economic issues, providing qualitative feedback that allows both the Authority and the Chamber to understand the underlying drivers of present and future economic trends.

The sampling methodology remains the same over each period, together with the sampling stratification which reflects the economic composition of the Gozitan economy.

The key findings of the survey are outlined below.

Business conditions and expectations

Gozitan enterprises continued to record stable business conditions, with 58% of the participants stating that their situation remained unchanged in the preceding six months.

Businesses reporting worsening in conditions were also lower than those recorded a year earlier, standing at 9% from 16%.

The net balance points to an improvement in sentiment, standing at 25%, which remains well above the 11% average recorded across all survey rounds, but five percentage points less than the all-time high of 30%, which was recorded in the previous survey round.

The secondary sector, consisting of manufacturing and construction enterprises, registered the largest share of improved business conditions, with a net balance of 38%.

The services sector also recorded a strong positive net balance, standing at 24%. Within this sector, accommodation and food service activities emerged as the category with the strongest positive sentiment, followed by the information and communication activities.

For the first time since the September 2023 survey round, cost pressures have emerged as the most pressing challenge for local firms, surpassing concerns related to staff shortages.

In the latest survey, 49% of participants reported cost pressures, an increase of nine percentage points when compared to that reported in the previous survey round. This was particularly evident within the transport and storage activities, followed by accommodation and food service activities, and construction.

Nonetheless, this survey round must be put within the context that it is the first to capture the potential implications of higher international energy and transportation prices driven by the escalated conflict in the Middle East. Although energy prices in Malta remain subsidised, higher global energy costs still feed through as they impact the prices of imported inputs.

The lack of suitable employees to support operations remains a very pressing challenge, with 48% of respondents flagging it. However, this represents a slight drop when compared with the September 2025 survey.

A slowdown in sales was cited by only 14% of respondents, an all-time low, although broadly in line with other March surveys.

Despite the global conditions, 48% of participants anticipate an improvement while only 10% foresee a deterioration in conditions. The remaining respondents (43%) expect conditions to remain unchanged. This results in the highest net balance recorded across all survey rounds, standing at 38%.

The strongest net balance, that of 44% was recorded in the knowledge sector, primarily made up of arts, entertainment and recreation category.

Prices

Cost pressures are also reflected in businesses’ price expectations, with 76% of respondents anticipating higher input prices over the coming six months.

This marks an increase over both the September 2025 round and the previous year, with industry, excluding construction, and transportation and storage activities reporting the strongest expectations of rising costs.

Despite expectations of higher input costs, these pressures are not yet being fully reflected in selling prices. Most respondents, 68%, expect selling prices to remain unchanged over the coming six months, while 33% anticipate an increase, a share broadly in line with previous survey rounds.

Employment

The vast majority of the businesses (63%) consider increasing their workforce in the short-term, whereas 38% of the sample indicated that they are not seeking additional employees.

The positive employment intentions were evident across all economic sectors.

Among the skills required one could notice strong demand for technical and operational competences.

Investment

64% of firms expect to make an investment in the coming six months, slightly exceeding the result of the September 2025 survey, with enterprises in the transportation and storage sector showing the strongest investment outlook.

A focus on external financing

The supplementary focus of the March 2026 survey was on external financing, with particular attention given to businesses’ access to suitable bank lending facilities.

64% of the respondents do currently have an external source of financing. Among these, bank loans and credit facilities represent the most common form of funding, accounting for 57% of the sample. A smaller proportion of businesses make use of bank loans or credit facilities supported by government or development bank schemes, which account for 7% of the sample.

30% of the surveyed firms stated that they do not have an outstanding external financing.

When asked about the ease of accessing external financing, the largest share (38%) highlighted that they lack sufficient information to provide an assessment, with 36% highlighting that this was an easy process, followed by 26% who highlighted that this was a relatively difficult process.

Among those who did identify challenges, the most common concern was the administrative or documentation burden associated with the process. Other factors mentioned included lack of information or guidance, as well as the cost of financing.

The post Cost pressures major concern for Gozo businesses, survey finds first appeared on The Malta Business Weekly.

The Malta Financial Services Authority (MFSA) has published findings from its 2025 Outcomes-Based Supervision review of marketing communications in the insurance and investment sectors. The review identified shortcomings in governance, disclosures, monitoring and record-keeping, while also highlighting examples of good market practice.

The review formed part of the MFSA’s wider Compliance Outcomes-Based Supervision framework, which focuses on achieving measurable supervisory outcomes that support consumer protection, market integrity and financial stability.

Marketing communications identified as a supervisory priority

Marketing communications were identified as a key supervisory priority for 2025, reflecting the important role that advertisements and promotional materials play in influencing consumer and investor decisions.

The review assessed whether marketing communications issued by regulated entities are fair, clear and not misleading, and whether consumers are provided with the information necessary to make informed decisions.

Key areas for improvement

The exercise identified several areas where firms are expected to strengthen their frameworks and controls.

Among the key findings were shortcomings in the documentation of marketing policies and procedures, weaknesses in post-publication monitoring processes, deficiencies in record-keeping practices, and instances where disclosures relating to risks, regulatory status and external website links were not sufficiently prominent or comprehensive.

The review also highlighted the importance of ensuring that marketing communications remain accurate, up to date and appropriately targeted to their intended audience.

Examples of good market practice

Alongside the areas requiring improvement, the Authority identified examples of good market practice across the sectors reviewed.

These included regular reviews of marketing policies, structured compliance monitoring programmes, standardised disclosure templates, marketing compliance checklists and enhanced oversight controls designed to support fair and transparent communications.

Supporting consumer protection and market integrity

Christopher P. Buttigieg, Chief Officer Supervision at the MFSA, said: “Consumers and investors should be able to rely on marketing communications that are fair, clear and not misleading. Through our Outcomes-Based Supervision framework, we continue to engage with industry to strengthen standards, promote transparency and support informed decision-making across Malta’s financial services sector.”

The Dear CEO Letters set out the Authority’s expectations and provide guidance to licensed entities on addressing identified shortcomings and enhancing compliance with applicable regulatory requirements.

The MFSA said it will continue engaging with firms as part of its three-year supervisory cycle and will assess the extent to which the expected compliance outcomes have been achieved.

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The survey estimates that 333,682 people aged 15 and over were employed between January and March 2026, representing 65.3 per cent of the population. At the same time, 12,093 people were unemployed, while 165,082 were classified as inactive.

The activity rate among those aged 15 to 64 reached 82.6 per cent, with the highest participation recorded among individuals aged 25 to 54, where the rate stood at 91.6 per cent.

The employment rate for people aged 15 to 64 was estimated at 79.6 per cent during the quarter. Men continued to record higher employment levels, with an employment rate of 84.5 per cent compared to 73.7 per cent among women.

Workers aged between 25 and 34 represented the largest share of the employed population for both sexes. Self-employed individuals accounted for 13.2 per cent of all workers with a main job.

Most employed persons worked full-time, with 294,973 people in full-time employment, while 38,709 held part-time jobs as their primary occupation. Full-time employees worked an average of 37 hours per week, while part-time workers averaged 19.8 hours. Overall, employees worked an average of 35 hours per week, a slight decrease of 0.3 hours compared to the first quarter of 2025.

Average earnings also remained strong. The average monthly basic salary was estimated at €2,270. The Financial and Insurance Activities sector recorded the highest average monthly salary at €3,105. By occupation, managers earned the highest average salary at €3,628 per month, while workers in elementary occupations earned an average of €1,410.

Despite the strong labour market performance, the unemployment rate among persons aged 15 to 74 stood at 3.5 per cent. Women accounted for 56.9 per cent of the inactive population.

Older adults made up the largest share of inactive persons, with those aged 65 and over representing 56.8 per cent of the total inactive population. Retirement remained the primary reason for inactivity, accounting for 43 per cent of all inactive individuals.

The survey also highlighted educational attainment trends. Among the population aged 15 and over, 38.7 per cent had attained secondary education or lower. Meanwhile, 40 per cent of employed persons held a tertiary-level qualification, underlining the increasing role of higher education in Malta’s labour market.

The post Malta employment reaches record high as workforce expands in early 2026 first appeared on The Malta Business Weekly.

The report forms part of the Eurosystem’s coordinated approach to climate disclosures and aims to support transparency and consistency across central banks. It outlines how climate-related considerations are incorporated within the Bank’s investment strategy, portfolio management, and risk management processes.

This year’s disclosures continue to present a range of backward-looking climate metrics, including weighted average carbon intensity (WACI), total carbon emissions (TCE) and carbon footprint (CF). These indicators point to an improved carbon profile over time, with key metrics such as carbon footprint and WACI exhibiting a declining trend since 2021. Forward-looking indicators assessing issuers’ climate targets and transition alignment complement this analysis. The report also reiterates the core metric on corporate exposure to nature-related sensitive sectors, first introduced in the previous edition. Building on earlier disclosures, the Bank is reporting for the first time relative Scope 3 emissions metrics for non-sovereign holdings, thus contributing to a more comprehensive assessment of portfolio emissions and transition risks, while recognising that methodologies and data coverage in this area are still evolving.

During the reporting period, the Bank continued to integrate climate-related considerations within its investment framework. This included maintaining a high degree of alignment of equity exposures with Paris-aligned benchmarks, applying exclusion criteria where appropriate, and increasing holdings of green, social and sustainability bonds, which has more than doubled from 6% in 2021 to 14% by 2025. These measures are complemented by the ongoing monitoring of externally managed funds against established sustainability standards and the continued use of climate-related indicators to support portfolio assessment and investment decision-making.

The Central Bank of Malta will continue to refine its climate-related financial disclosures as data availability, consistency and methodological approaches evolve, recognising the limitations and challenges associated with climate-related data. The Bank, together with the ECB and the Eurosystem, remains committed to further enhancing the scope and comparability of these disclosures, in line with its mandate and evolving best practices.

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In its latest assessment, the MFAC paints a broadly positive picture of Malta’s economic outlook, noting that the country remains one of the fastest-growing economies in Europe despite a challenging international environment marked by geopolitical tensions, trade uncertainties, and slower growth across major economies.

The endorsement of the forecasts represents an important institutional validation of the Government’s economic assumptions and policy framework. Under Malta’s fiscal governance arrangements, the MFAC is tasked with independently assessing the plausibility of the macroeconomic projections used in national budgetary and fiscal planning.

According to the Council, Malta’s economy continues to demonstrate resilience, supported by strong domestic demand, a robust labour market, and continued investment activity. These factors are expected to underpin economic growth in 2026, even as external conditions remain uncertain.

However, the report goes beyond a technical endorsement of the forecasts and raises broader strategic considerations regarding the quality and sustainability of economic growth.

Productivity as the next growth frontier

One of the report’s central messages is the need for Malta to place greater emphasis on productivity as a driver of future prosperity.

For much of the past decade, Malta’s economic expansion has been underpinned by strong employment growth, rising labour force participation, and inward migration. While these factors have contributed significantly to GDP growth, the MFAC argues that the next phase of economic development should increasingly rely on improvements in productivity and innovation.

The Council notes that productivity gains are essential if Malta is to sustain rising living standards, strengthen competitiveness, and maintain economic growth without placing excessive pressure on labour supply, infrastructure, and public services.

This recommendation reflects a growing consensus among economists that small, open economies such as Malta must increasingly generate growth through efficiency improvements, technological adoption, and higher-value economic activity rather than relying predominantly on increases in labour inputs.

The MFAC’s assessment suggests that productivity enhancement should become a central pillar of economic policy, particularly as demographic constraints and labour market tightness become more pronounced.

Strategic investment priorities

To support this transition, the Council calls for stronger productive investment across several key areas.

Human capital development features prominently among the MFAC’s recommendations. The report emphasises the importance of equipping workers with the skills required in a rapidly evolving economy, particularly in sectors characterised by technological advancement and digital transformation.

Investment in education, vocational training, upskilling programmes, and lifelong learning initiatives is viewed as critical for enhancing workforce productivity and supporting the development of higher-value industries.

The Council also highlights digitalisation as a major opportunity for improving economic efficiency and competitiveness. Accelerating the adoption of digital technologies across both public and private sectors could help businesses improve productivity, reduce costs, and access new markets.

Research and innovation constitute another priority area identified in the report. Malta has made progress in fostering innovation ecosystems, but the MFAC suggests that greater investment in research and development could help strengthen the country’s capacity to generate knowledge-based growth and attract high-value investment.

Advanced infrastructure is similarly viewed as a prerequisite for sustaining long-term economic performance.

Collectively, these investment priorities reflect a strategic vision focused on enhancing Malta’s productive capacity rather than merely expanding economic activity through increased factor inputs.

Navigating a complex global environment

The MFAC’s report also places Malta’s economic outlook within the context of an increasingly uncertain global landscape.

International economic conditions remain subject to significant risks stemming from geopolitical tensions, evolving trade relationships, inflationary pressures, and slower growth prospects across key trading partners.

While inflation has moderated considerably compared to the peaks experienced in recent years, uncertainty persists regarding the future trajectory of global prices, interest rates, and financial conditions.

For Malta, whose economy is deeply integrated into international markets through trade, tourism, financial services, and foreign investment, these developments represent important external risks.

The Council acknowledges that forecasting in such an environment is inherently challenging. Nevertheless, it concludes that the Government’s assumptions appropriately reflect current information and are supported by reasonable expectations regarding both domestic and external economic developments.

At the same time, the report underscores the importance of maintaining policy flexibility to respond to changing circumstances should downside risks materialise.

With economic growth expected to remain robust in 2026, the focus is increasingly shifting from how fast the economy grows to how sustainably and productively that growth can be achieved. The Council’s recommendations suggest that the answer lies in building a more innovative, skilled, and efficient economy capable of meeting the challenges of an increasingly complex global environment.

The post MFAC endorses Government’s 2026 economic forecasts, calls for productivity-focused growth strategy first appeared on The Malta Business Weekly.

This is creating a “dual shock” to jobs, skills and economic resilience. In this context, social partners have to join forces to design policies that harness the potential of AI, and human resource strategies must prioritise reskilling and preparation for emerging job profiles.

Addressing the 114th International Labour Conference, Refalo highlighted how the world of work cannot be isolated from the stark reality of global conflicts, which are now at their highest level since the Second World War, affecting around two billion people and displacing more than 122 million individuals in 2025.

“Geopolitical instability is no longer external to labour market dynamics, but is actively reshaping employment conditions, migration patterns and economic resilience across countries”, Mr Refalo said.

Alongside this, Refalo pointed to the accelerating impact of artificial intelligence, describing it as a structural shift with both disruptive and generative effects on employment, adding that “this transition is generating a complex process of job destruction and also of job creation.” Citing figures from the ILO Director-General’s report, he noted that “as much as 834 million jobs will be affected through AI, with 135 million of these in Europe and Central Asia”, with significant risks of transitional unemployment if labour markets fail to adapt quickly enough.

Turning to Malta’s domestic context, Refalo acknowledged the strong economic performance in recent years, but cautioned that the current growth model, driven largely by labour migration and volume-based sectors such as tourism, is approaching structural limits. He said employers are increasingly calling for a shift towards higher value-added sectors supported by productivity growth, noting that “conditions of employment can only be improved with enhanced productivity”, particularly as wage increases are often offset by rising housing and living costs.

He also reiterated the employers position that with Malta facing a low birth rate and an ageing workforce, retaining labour supply is crucial for sustaining economic growth.

“Elderly employees need to be incentivised to extend their working lives. We advocate holistic flexible work arrangements that maximize the existing talent pool-especially women and older workers-rather than relying solely on blanket measures like a shorter work week, before economic transformation occurs. He also argued that government should prioritise greater public sector efficiency and education reform to address skills gaps, rather than competing with the private sector for an increasingly scarce pool of workers.”

The Association delegation, which also included Director General Kevin J Borg and Advisor Joseph Farrugia, also included active engagement in discussions on social dialogue. 

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The recent analysis unveiled how Malta’s GDP growth slowed to 4.0% in 2025, down from 6.2% the previous year. Despite this, the country’s growth is still significantly stronger than the euro area’s 1.4% in 2025, which improved from 0.9% in 2024. But the gap between Malta and the euro area is narrowing.

On a per-capita basis, the convergence is more evident. GDP per capita increased by 1.6% and consumption per capita by 1.2% in 2025. This aligns with euro area averages and indicates a shift from exceptional to more moderate growth.

The most notable finding is the slowdown in productivity. Gross value-added (GVA) per worker grew by only 1.4% in 2025, compared to 5% in 2024. With GVA per worker now at approximately €67k, compared with around €83k in the euro area, this slowdown prompts questions about the sustainability of Malta’s long-term growth advantage.

The report highlights a structural imbalance: some of the fastest-growing sectors are among the least productive, while higher value-added sectors are underperforming.

• Strong performers: ICT, wholesale and retail, and the public sector.
• Slower growth (below 2%): professional services, finance, construction, and arts C recreation.

Productivity by sector remains uneven, with ICT leading at €162k GVA per worker, followed by professional services (€93k) and finance (€76k). Wholesale and retail, construction, and the public sector are at the lower end of the value-added spectrum.

“Our most recent economic update depicts an economy that is resilient yet recalibrating. Malta continues to outpace its European peers, but the combined effect of slowing headline growth, flattening per-capita indicators, and weaker productivity gains suggests that the drivers of past growth are losing steam. To sustain long-term competitiveness, Malta must focus on improving productivity and supporting higher value-added sectors,” explained Lucienne Pace Ross, Territory Senior Partner at PwC Malta.

Read the full report from here.

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Unlike previous reviews, however, S&P did not publish an updated economic report on Malta, effectively leaving unchanged the assessment it issued in December last year. The decision indicates that the agency did not identify any major developments warranting a revision of its evaluation of Malta’s economy or public finances.

In its December report, S&P forecast that Malta’s economy would continue to outperform the eurozone average, projecting economic growth of close to 4% over the coming years. The agency also expected the country’s public finances to improve, with the budget deficit falling below the European Union’s 3% threshold and public debt remaining relatively low compared to many European counterparts.

Among its key projections was the expectation that Malta would exit the European Union’s Excessive Deficit Procedure (EDP). That forecast materialised in recent days when the European Commission announced that Malta would be removed from the procedure after reducing its deficit below 3% of gross domestic product ahead of schedule.

At the same time, S&P had highlighted a number of challenges facing the country, including the fiscal burden of energy subsidies. The agency also pointed to governance concerns and perceptions of corruption as areas that continue to pose risks.

The confirmation of Malta’s rating without any accompanying analytical update contrasts with S&P’s approach towards other European countries reviewed on the same day. In the case of Sweden, for example, the agency published an updated report despite maintaining the country’s rating, commenting on economic challenges and political uncertainty linked to next year’s elections.

The latest review therefore leaves Malta’s sovereign rating unchanged and suggests that S&P remains broadly comfortable with the outlook outlined in its December assessment, including its expectations for economic growth and fiscal consolidation.

The post S&P keeps Malta at A- with stable outlook first appeared on The Malta Business Weekly.

Valletta Bridge Ltd is a joint venture company whose shareholders are CPHCL Group and Attard Bros Group. This project will transform Malta’s first power station, built in the 17^th century, into a mixed-use development comprising of an exclusive 20-room boutique hotel complemented by a range of high-quality amenities, creating a unique hospitality experience that celebrates the site’s industrial heritage while meeting the expectations of today’s discerning travellers. It will also house high end offices, retail and food and beverage offerings.

This landmark building occupies a unique location beneath Crucifix Hill in Floriana, within walking distance of Valletta and adjacent to the cruise passenger terminals and the Valletta Waterfront destination, Valletta Cuise Port said. The project will breathe new life into an underutilised heritage asset while preserving its historical significance and distinctive architectural character.

The project which forms part of Valletta Cruise Port’s terminal precincts, fits with the Company’s broader vision to continue enhancing the Valletta Waterfront destination, building on more than two decades of investment in heritage restoration, tourism infrastructure and destination development.

Stephen Xuereb, CEO of Valletta Cruise Port and COO of Global Ports Holding, said: “The signing of this agreement marks the beginning of an exciting new chapter for one of the most distinctive historic buildings within Malta and the Grand Harbour region. This building is an important part of Malta’s industrial heritage.  This project will ensure its preservation and sustainable future use. Through the creation of an intimate boutique hotel and complementary amenities, we are not only restoring a remarkable landmark but also strengthening the destination and further contributing to the ongoing regeneration of the Grand Harbour. This investment reflects our long-term commitment to preserving heritage, enhancing the visitor experience and creating lasting value for Malta.”

Jean-Pierre Schembri, CPHCL Group CEO, held that “At CPHCL, we are honoured to be involved in this landmark building project, which will give Malta’s first power station a new life. Through this unique project CPHCL will play an instrumental role in preserving and revitalizing Malta’s industrial heritage, ensuring its sustainable future use. Moreover, the development of a boutique hotel will build on our legacy of over six decades’ experience in luxury hospitality and premium real estate development, to further enhance and contribute to the continued regeneration of the Grand Harbour, which is also in line with the Government plans to regenerate the wider area in a holistic manner.

Carl Attard, Managing Director, Attard Bros Group stated”This project fits perfectly with our mission of creating better spaces.  It represents a unique opportunity to restore and repurpose a historic landmark through high-quality construction and sensitive restoration techniques. Our focus is on delivering a structurally sound, technically robust redevelopment that respects the building’s original characteristics, while meeting modern standards of safety, performance and sustainability. We are proud to partner with CPHCL on a project that combines heritage conservation with sustainable development, one that will see the continued regeneration of the Grand Harbour area and deliver lasting value for Malta.”

Once completed, the development will add a new hospitality dimension to one of Malta’s most visited maritime destinations. Guests will enjoy a distinctive setting overlooking the Grand Harbour, while experiencing a carefully curated blend of heritage, comfort and contemporary hospitality.

The project is expected to contribute to the continued growth and diversification of Malta’s tourism product, while safeguarding an important chapter of the nation’s industrial and maritime history for future generations.

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