The report projects Malta’s economy to grow by 3.7% this year, the highest rate among the EU’s 27 member states. Growth is then expected to ease only marginally to 3.6% in 2027, after reaching 4% last year.

Despite the slight slowdown, Malta is forecast to remain the bloc’s fastest-growing economy, well above the EU average growth rates of 1.1% in 2026 and 1.4% in 2027.

The Commission attributed Malta’s strong performance largely to its services sector, particularly tourism, which it said “outperformed expectations in 2025”. The tourism industry is expected to remain resilient despite global geopolitical uncertainty.

Malta is also forecast to record one of the strongest employment growth rates in Europe, with employment expected to rise by 3.9% in 2025. Although job growth is expected to moderate in the coming years, unemployment is projected to remain low at around 3%.

At the same time, the Commission noted that Malta was among the countries registering a relatively sharp increase in unemployment between mid-2025 and early 2026, with a rise of 0.6 percentage points.

Inflation is expected to edge upwards to 2.7% in 2026, driven mainly by higher international energy prices. However, the Commission said the government’s policy of subsidising energy prices would help shield consumers from the full impact of these increases.

The report also paints a positive picture of Malta’s public finances, with both the deficit and debt levels expected to remain comfortably within EU limits over the coming years.

The fiscal deficit is forecast to decline from 3.4% in 2024 to 2.2% the following year, supported by stronger government revenues linked to economic growth and improved tax collection.

Nevertheless, the Commission highlighted rising government expenditure, including substantial increases in the public sector wage bill and a one-off €71 million compensation payment awarded to former National Bank shareholders following a court ruling.

Tax revenues are expected to weaken slightly in the coming years as tax cuts announced in last October’s budget begin to take effect, while expenditure is projected to rise because of the growing cost of energy subsidies.

Even so, Malta’s fiscal deficit is expected to remain stable, edging down to 2.1% by 2027.

The country’s debt-to-GDP ratio is forecast to stabilise at around 46% over the next few years, according to the Commission.

The post Malta set to lead EU economic growth until 2027, Commission forecasts first appeared on The Malta Business Weekly.

Addressing a press conference during the handover ceremony, Prime Minister Robert Abela described the occasion as “a proud day” for the country, highlighting both the complexity and importance of the project.

“This was a project that was not easy to facilitate,” Abela said, referring to the investment’s status as an Important Project of Common European Interest (IPCEI).

He noted that the initiative differs from traditional industrial investments because of the highly specialised sector in which it operates.

Abela said the investment aligns closely with the government’s long-term economic vision, centred on innovation, technology and workforce development.

“STMicroelectronics is the largest company that has invested in Malta,” he said, adding that the government wants “an economy that facilitates the reskilling and upskilling of our workers.”

Abela also praised the resilience shown throughout the project’s implementation, saying that “even with Storm Harry working against us, we still delivered.”

Economy Minister Silvio Schembri described the handover as another key milestone towards the launch of what he called Malta’s first smart factory.

“After months of close collaboration between the government and STMicroelectronics, we are taking the next step towards the opening of the first smart factory in Malta,” Schembri said.

Schembri said the strategic importance of the semiconductor industry, noting that while Malta lacks natural resources, it must instead build its economic strength through knowledge, innovation and specialised industries.

“As a country we don’t have natural resources, so we need to be intelligent enough so that what nature didn’t give us, we create for ourselves,” he said.

Schembri pointed to the growing importance of microchips in modern life, describing them as essential components found in everything from mobile phones and cars to medical equipment.

“Microchips have become just as important as oil,” he said.

He explained that the investment goes beyond safeguarding STMicroelectronics’ local operations and is intended to establish Malta as a recognised player in semiconductor manufacturing.

“We need to ensure not only the operation of ST in our country, but this investment has a more strategic intent: to position Malta as an important country in the production of microchips,” Schembri said.

Schembri also highlighted ongoing efforts to strengthen Malta’s talent pipeline, including initiatives to send students abroad to contribute to semiconductor research and development.

Linking the project to the government’s long-term national strategy, Schembri noted that advanced manufacturing is one of the seven priority sectors identified in the Malta Vision 2050 framework.

He added that Malta continues to attract high-quality foreign investment despite global geopolitical uncertainty.

“When we see the recent geopolitical climate, Malta remains that country which not only has the best economy in Europe, but attracts investment of the highest quality,” he said.

Schembri concluded by underlining the importance of continuing to upskill Maltese workers in order to create better career opportunities and higher wages in emerging technological sectors.

The post STMicroelectronics takes next step with KK3 factory handover first appeared on The Malta Business Weekly.

GO plc, Malta’s leading integrated communications and digital services group, today held its Annual General Meeting, where shareholders were presented with a landmark set of financial results for the 2025 financial year together with a compelling vision for the future of the Group.

GO described 2025 as “a milestone year on every front” during which it celebrated its 50th anniversary and marked half a century of connecting Malta through continued investment and innovation. The Group also completed its nationwide True Fibre rollout, a €100 million infrastructure programme that firmly positions Malta among Europe’s leaders in fibre-to-the-home connectivity. At the same time, GO cemented further its market leading position as an internet provider and as the island’s fastest-growing mobile operator.

The financial results were equally historic.

“For the first time in our history, GO crossed €254 million in Group revenue, the first time in the company’s history it has exceeded the quarter-billion euro mark, with net profit rising a remarkable 32% year-on-year to €20.7 million, itself a record. Around 30% of that revenue is now coming from beyond traditional telecoms, reflecting the strength of our strategy. We are, at our core, in the business of winning trust. That trust is our most valuable asset, and it is the foundation of our future growth,” said Nikhil Patil, Group CEO of GO plc.

EBITDA grew to €92 million, while operating cash flow strengthened to €73.9 million. The Board is recommending a total net dividend of 16 euro cents per share for 2025, the highest ordinary dividend paid in five years, as part of a seven-year track record that has returned over €162 million to shareholders.

Going Beyond Telecoms

Critically, approximately 30% of Group revenue now derives from activities beyond traditional telecoms services, a deliberate and accelerating strategic shift. Subsidiaries including BMIT Technologies, AQS Energy, SENS Innovation, Connected Care, Cybersift, Klikk, GO Ventures and Cablenet in Cyprus are each contributing to a broader digital and energy ecosystem.

“In a year of rapid technological change and rising customer expectations, GO did not simply keep up the pace, it led. The GO Group exists to make people’s lives better, not just to sell services. Long-term investment and shareholder returns are not in tension at GO. They go hand in hand,” said Lassaad Ben Dhiab, Chairman of GO plc.

Over the past five years, AQS has installed more than 50,000 photovoltaic panels, generating over 25 million kWh of electricity and avoiding roughly 10,000 tonnes of CO₂ emissions. Connected Care supports over 10,000 individuals in living safely and independently at home. Klikk delivered 46% year-on-year revenue growth.

Cybersift is protecting Malta’s digital ecosystem and has expanded its collaboration to Cablenet in Cyprus. GO Ventures backed Airalo, which has since achieved unicorn status, delivering multiple returns on the original investment. Meanwhile, BMIT made a strategically significant €25 million investment for a 49% stake in Malta Properties Company.

“Non-telecom revenue now stands at €68.2 million and continues to grow. This is not accidental. It is the deliberate result of a strategy to build a broader digital and energy ecosystem around our core business, one that deepens customer relationships, creates new revenue streams, and strengthens our resilience. I am pleased to report that 2026 has started strongly, with revenue growing at approximately 11% year-on-year,” said Reuben Attard, Chief Financial Officer of GO plc.

With GO’s peak infrastructure investment cycle now complete, capital expenditure normalising, and a diversified revenue base continuing to grow, GO is now entering the next chapter from a position of considerable strength.

“We have built the best digital infrastructure on the island, we are one of the most trusted brands in Malta and we have a talented and highly engaged team. The best of GO is still ahead of us,” concluded CEO Nikhil Patil.

The post GO plc crosses quarter-billion euro revenue milestone as group charts bold course beyond telecoms first appeared on The Malta Business Weekly.

Covering an area of approximately 24,000 square metres, equivalent to nearly 3.5 football pitches, the solar farm hosts nearly 5,000 photovoltaic panels. The project will enable more than 40 per cent of Melita’s energy requirements to be generated from clean, renewable sources.

The solar farm has been developed on previously unused land, demonstrating how disused spaces can be transformed into valuable infrastructure that contributes to Malta’s transition to greener energy.

Melita CEO Harald Rösch said the project marks an important milestone for the company’s long term sustainability efforts. “This is a significant moment for Melita as we continue to invest in initiatives that reduce our environmental impact while supporting the resilience of our operations. Generating over 40% of our energy needs from renewable sources is a major achievement and reflects our ongoing commitment to sustainability. The project also shows how disused land can be repurposed to create lasting value for the country.”

Melita’s Head of Customer Operations and AI Deployment Kevin Borg highlighted the scale and complexity of the project and the importance of collaboration in bringing it to fruition. “This solar farm has been several years in the making and represents a major investment in Melita’s sustainable future. Developing a project of this scale required navigating a complex permitting and approvals process, as well as close collaboration with multiple stakeholders. Seeing the solar farm now connected to the national grid and generating clean energy for our operations is an incredibly rewarding milestone for everyone involved.”

With the solar farm now operational, Melita continues to explore further opportunities to improve energy efficiency and expand its use of renewable energy as part of its broader environmental commitments. More information is available at https://www.melita.com/sustainability/

The post Melita’s 3.5 MWp solar farm goes live first appeared on The Malta Business Weekly.

It once seemed impossible to imagine the future of Artificial Intelligence without ChatGPT at the centre. It was the first generative AI product to break through to the mainstream, reshaping how hundreds of millions interact with information. However, by the end of 2025, that dominance no longer feels certain. ChatGPT is still widely used and continues to improve, but the environment that made it feel inevitable has changed. Competition is growing, operating costs remain high, and some of its structural advantages are weakening.

OpenAI’s early success was built on a clear idea: make a powerful language model accessible to everyone. The timing was perfect. In November 2022, it launched ChatGPT to the public. Within two months, it reached 100 million users, becoming the fastest-growing consumer application at the time. By mid-2025, OpenAI reported over 700 million weekly active users.

Despite this growth, OpenAI is not yet profitable. Running large language models requires expensive computing infrastructure. Each query consumes power-hungry Graphics Processing Units (GPUs), most of which are supplied by Nvidia. OpenAI reportedly spends billions of dollars annually to maintain and scale its services. Subscriptions and enterprise deals bring in revenue, but high operating costs continue to limit profitability. As a result, more users do not always translate into more profit.

A major challenge is OpenAI’s dependence on Nvidia. As of late 2025, Nvidia remains the dominant supplier of AI chips, particularly the H100 and H200 GPUs used to train and run large models. The company controls more than 80% of the AI accelerator market. If supply is disrupted or pricing increases, OpenAI’s capacity could be affected. Other companies have taken steps to reduce this dependency. For instance, Google uses its own Tensor Processing Units (TPUs), while Microsoft is rolling out custom chips for use in its Azure cloud. OpenAI is reportedly exploring in-house chip development, but this remains at an early stage.

Meanwhile, the quality gap between foundation models is narrowing. In 2023, OpenAI’s GPT-4 was widely considered the most advanced publicly available model. But by the end of 2025, several competing models, including Google’s Gemini, Anthropic’s Claude, and Meta’s Llama, have reached comparable performance levels on standard tasks. Public benchmark results and blind testing show that differences in quality are now often marginal. As models become harder to distinguish, users are shifting focus to other factors, such as price, reliability, and integration with their existing devices.

This shift has exposed one of OpenAI’s structural disadvantages: it lacks a native hardware or operating system platform. Apple has announced its own on-device AI features, powered in part by Apple-designed models, built directly into iOS and macOS. Google is integrating Gemini across Android and Google Workspace products. Microsoft is embedding Copilot throughout Windows, Office, and its cloud services. In contrast, OpenAI operates as a standalone platform, mainly through its website and API, or via its integration with Microsoft products. Without its own ecosystem, OpenAI is more vulnerable to changes in its partners’ platform strategies.

The enterprise market also presents challenges. While OpenAI has business subscriptions and API access, most large organisations continue to favour providers with deep experience in compliance, security, and deployment flexibility. Companies such as Microsoft, Google, AWS, and IBM offer cloud infrastructure, on-premise options, and regulatory support. OpenAI has made progress, but its roots as a consumer-focused startup mean it must work harder to meet the complex demands of regulated industries such as healthcare, finance, and government.

Regulation is also becoming a defining factor in AI development. In 2024, the European Union passed the AI Act, requiring developers of high-risk AI systems to meet strict safety, transparency, and oversight requirements. In the United States, regulatory efforts are ongoing, with the White House issuing executive orders aimed at AI safety and risk management. These developments increase compliance costs and create barriers to entry. Companies with large legal and regulatory teams are better positioned to adapt. OpenAI, while growing fast, does not have the same global legal infrastructure as larger technology firms.

There is also a strategic shift taking place across the industry. OpenAI remains focused on building general-purpose, large-scale frontier models. However, the trend is moving towards smaller, more specialised models that are faster, cheaper, and easier to deploy. Several open-source models, such as Mistral and Llama, now deliver strong performance on specific tasks and can run locally without requiring expensive server infrastructure. This allows developers and businesses to reduce costs and maintain more control over their data. If the industry continues to move towards decentralised, modular AI, OpenAI’s model-centric approach could face added pressure.

Geopolitics has become another important factor. The United States government has introduced export controls limiting the sale of advanced AI chips to countries such as China. These controls affect Nvidia and the broader AI supply chain. In response, China is increasing investment in domestic AI development and chip manufacturing. Europe is also funding efforts to create independent AI capabilities. As a company with close ties to US policy and infrastructure, OpenAI may face limits on its ability to operate in other markets.

Developer sentiment is another area to watch. OpenAI was once the default platform for developers building AI applications. That is no longer the case. Usage data from platforms such as Hugging Face show increased adoption of open-source models. These are often cheaper to run and more customisable. Developers are also opting for local deployments, which avoid usage limits and reduce reliance on a single provider. This matters because developer choices shape long-term ecosystems. If developers build around other models, OpenAI’s role could gradually diminish.

Recent market data suggests that the shift is already underway. In January 2026, Google’s Gemini has been gaining market share (increasing 16% in a year), while traffic to ChatGPT has declined by 22% during the same period. Although usage patterns vary, these data indicate that ChatGPT is rapidly losing its dominance in this domain.

None of this means ChatGPT is failing. It remains one of the most widely used AI tools worldwide, supported by a large user base and a robust technical foundation. But it is no longer operating in a vacuum. The market is splintering, competition is intensifying, and users are becoming more selective about what they need and what they’re willing to pay for. OpenAI now faces a different kind of challenge, not survival, but reinvention. And with the company reportedly preparing for what could become a world‑record Initial Public Offering (IPO), the pressure to evolve is even greater. Without meaningful shifts in cost discipline, platform integration, and enterprise readiness, OpenAI risks settling into the role of a strong competitor rather than the defining face of the AI era.

Alexiei Dingli is a Professor of Artificial Intelligence (AI) at the University of Malta.

The post Is this the end of ChatGPT? first appeared on The Malta Business Weekly.

The project was unveiled by Minister for the Economy Silvio Schembri, who described the initiative as a major step forward in strengthening Malta’s ease of doing business and competitiveness as an investment destination.

Speaking during the launch, Schembri said the initiative was the result of close collaboration between government entities, social partners, and the private sector.

He said that duplicated administrative processes had long been identified by businesses as a significant obstacle to efficiency.

“Through the Malta Business Wallet we will continue reducing unnecessary bureaucracy,” Schembri said, adding that the project originated as an electoral pledge and has now become a reality through the work of the Malta Business Registry.

Schembri also spoke of Malta’s position at the forefront of digital business reform within the European Union. He explained that discussions on a similar Business Wallet concept at EU level are only now beginning, while Malta has already implemented the system.

“This puts us in a much better and more advanced position compared to other European Union countries,” he stated.

According to the Ministry, more than 40 businesses and business owners are already participating in the project’s initial phase, with participation expected to expand gradually over time.

Work on the initiative began in 2023 with the creation of a steering committee within the Ministry for the Economy to improve coordination among government entities.

Following market analysis and the awarding of a public tender, the project evolved from its original concept as a Central Data Repository into what is now the Malta Business Wallet.

The new platform is designed to introduce the “once only” principle for due diligence procedures, meaning businesses will no longer need to repeatedly submit the same information to different authorities.

The initiative is also expected to standardise processes, reduce delays, and improve operational efficiency.

Chief Executive Officer and Registrar of the Malta Business Registry, Geraldine Spiteri Lucas, said the platform represents “an important transformation” for Malta’s business ecosystem.

She added that collaboration between public entities and the business community would continue to strengthen trust while enabling more efficient services.

The Malta Business Wallet will allow business owners to securely control and authorise access to their information while remaining fully compliant with GDPR regulations.

The application is currently available for download on both the Apple App Store and Google Play Store.

Concluding the launch, Minister Schembri said the government would continue focusing on initiatives that support Malta’s economic performance and digital future.

The post Government launches ‘Malta Business Wallet’ to cut bureaucracy and boost efficiency first appeared on The Malta Business Weekly.

Malta’s apparent widening gender pension gap is largely the result of a statistical distortion caused by a new benefit, a Central Bank of Malta study argues.

The study by Aaron Grech, chief officer of the CBM’s Economics Division, focuses on the deficiency contributory bonus (DCB), introduced in 2015. The bonus is designed to provide an annual payment averaging around €800 to elderly individuals, mainly women, who had insufficient social security contributions to qualify for a full pension.

Eurostat data shows Malta’s average gender pension gap increasing from about 31.5% in 2015 to 40.3% in 2024, the highest in the EU compared with an EU average of around 24.5%.

At face value, this suggests a worsening position for women. However, Grech’s analysis argues that the change is driven by how beneficiaries are counted rather than a real decline in pension outcomes.

Before the DCB was introduced, thousands of women receiving no pension income were excluded from official pension statistics. Once the scheme was implemented, around 14,000 women were brought into the pensioner population for the first time. Because the DCB is significantly lower than a full pension, their inclusion mechanically reduced the average female pension and widened the measured gap.

The report describes this as a statistical artefact—policies that extend basic income support to previously excluded groups improve coverage but can lower average values, creating a misleading impression of deterioration.

A different picture emerges when using the median pension gap, which compares the “typical” pension received by men and women. On this basis, Malta ranks fifth in the EU rather than first, and the gap has actually improved slightly, falling from 36.2% in 2015 to 34.9% in 2024. This contrasts with the worsening average gap and suggests gradual improvement for the typical female pensioner.

The study notes that Malta’s median gap remains above the EU median average of 24.9%, but argues it provides a more stable indicator because it is less affected by extreme values, such as the large number of small DCB payments.

Beyond methodological issues, the Central Bank highlights broader improvements. Median incomes among older women have risen significantly over the past decade, while deprivation rates have declined, and the pension coverage gap between men and women has narrowed sharply from 24.6 percentage points in 2015 to 6.3 points in 2024.

Grech concludes that while inequalities persist, Malta’s worsening gender pension gap largely reflects the unintended statistical consequences of policies that have expanded pension coverage for women rather than evidence of declining retirement outcomes.

The post How a pension benefit distorted Malta’s gender gap figures first appeared on The Malta Business Weekly.

Following the announcement of the third interconnection project (IC3) during the unveiling of the energy vision document, Malta’s Energy Shift: A Sustainable Power Transition, Interconnect Malta has issued a tender for the project’s basic engineering.

The aim of the project is to strengthen the island’s security of supply by diversifying the country’s connection point with the European network.

Similar to the first and second interconnectors, this new interconnection will operate in a bi-directional mode.

However, it will be connected at a higher voltage of 380kV, compared to the 220kV of IC1 and IC2.

This 380kV connection will link directly to Italy’s national grid backbone, providing Malta with more direct access to the European mainland electricity network.

IC3 will also be an innovative project for Malta, as it will be the first interconnector to use High-Voltage Direct Current (HVDC) technology for electricity exchange, the statement said.

“We see these projects as the foundation of Malta’s transition towards a carbon-neutral economy,” Energy Minister Miriam Dalli said.

She added that increased interconnectivity, through a diversified connection point, allows for increased importation of electricity sourced from renewable energy, reducing greenhouse gas emissions, while allowing for local large-scale offshore renewable projects to be connected to Malta’s electricity grid without creating instability and balancing issues.

“These projects are also in line with government’s vision for a diversified, clean and affordable power sector,” Dalli said.

The statement said that ICM has already taken concrete steps in the development of this project, which is being designed as a scalable interconnection, initially operating at 200MW with the option to expand to 400 MW.

The project, led by Interconnect Malta, has also been included in the 2026 ENTSO‑E Ten‑Year Network Development Plan, marking an important step toward securing Project of Common Interest status and access to EU funding.

“The issuing of this tender marks a key step forward for Malta’s third electricity interconnector, launching the basic engineering phase that will guide the project’s design and permitting stages,” CEO of Interconnect Malta Ismail D’Amato said.

He said that the project will create a modern, flexible link starting at 200MW with the possibility to expand to 400MW, using the best available technologies and routes to ensure reliability and efficiency.

Overall, the interconnector will strengthen Malta’s energy supply and support renewable energy, D’Amato said.

The post Engineering tender issued for Malta’s third electricity interconnector first appeared on The Malta Business Weekly.

Malta’s payments landscape is undergoing a steady transformation driven by digital innovation, evolving customer expectations, and developments at European level. The increasing availability of instant payments and other electronic solutions is reshaping how individuals and businesses transfer money, placing greater emphasis on speed, security and convenience.

Within this context, the Central Bank of Malta (‘Central Bank’) continues to promote a gradual transition towards more efficient and resilient payment methods, while ensuring that existing instruments remain fit for purpose. The updates to Directive No. 19 on the Use of Cheques and Bank Drafts (‘Directive’) should be seen against this backdrop, ensuring that cheque usage remains proportionate, transparent and aligned with a modern payments’ ecosystem.

As background, the Central Bank acting in its capacity as the authority responsible for safeguarding the stability and efficiency of Malta’s payments landscape, first issued Directive No. 19 in 2021. The Directive came into force on 1 January 2022 and was subsequently amended in 2024.

The Directive was introduced to address recurring risks and operational challenges associated with the issuance and negotiation of cheques and bank drafts, including misuse, inefficiencies in processing and delayed settlement. By setting out clear obligations for issuers and beneficiaries it supports improved governance in the use of such payment instrument while complementing Malta’s broader shift towards more secure and efficient digital payment channels.

In 2025, the Central Bank published an analysis on The Usage of Cheques in Malta, that revealed a sharp decline of 78% in cheque usage between 2019 and 2024. This trend reflects a widespread take-up of digital alternatives based on the implementation of European regulatory frameworks.

In light of these developments and based on the Eurosystem’s comprehensive payments strategy which embrace innovation and forward-looking approach in payments, the Central Bank felt the need to update Directive No. 19. The amendments to the Directive will come into force on 1 January 2027. These updates aim to refine existing procedures and align cheque usage with evolving operational and security requirements, ensuring consistency with current practices. The key changes are outlined below.

Minimum cheque amount raised from €20 to €50

Effective 1 January 2027, cheques may only be issued for amounts of €50 or above. This adjustment is designed to shift routine, low‑value transactions towards digital payment options, such as instant payments, which offer quicker processing and greater convenience.

Limiting this payment instrument to higher‑value payments helps manage resources more efficiently by reducing manual handling costs incurred by institutions and lowering the likelihood of processing errors. For beneficiaries, this shift also promotes the use of digital payment methods, which offer stronger security, faster processing and clearer transaction records. This measure preserves the usefulness of cheques and bank drafts for significant transactions while encouraging more modern, efficient payment behaviour for everyday needs.

Cheques valid for three months

The updated framework shortens the validity of cheques from six months to three months. This reduces the risk that a cheque remains outstanding for an extended period, where it may be misplaced, misused, or simply not presented in a timely manner. A shorter validity window also supports a more efficient movement of funds, as the clearing and settlement process begins more promptly once the cheque is presented for processing.

A shorter validity period for cheques lead to a smoother settlement cycle, giving beneficiaries faster access to funds and a clearer view of their account activity. At the same time, institutions benefit from streamlined operational workflows, simplified account reconciliation, and fewer outdated instruments requiring follow‑up. Collectively, these improvements applicable on 1 January 2027, contribute to a more predictable and reliable processing environment for all parties involved across the payments chain.

Furthermore, the validity of bank drafts will remain 6 months given that this particular payment instrument is mainly used for larger transactions such as property purchases. Bank drafts are considered as more secure when compared to cheques given that the Bank issuer locks the funds upon issuance and thus provides certainty that funds are available.

Mandatory deposit of cheques into a payment account

To enhance transparency and improve the traceability of payments end‑to‑end, the new amendments will require all cheques and bank drafts to be deposited directly into a payment account rather than having the option to encash over the counter, a requirement that comes into force on 1 January 2027. This ensures that each cheque transaction is fully recorded within the banking system. It also supports anti‑money‑laundering controls by ensuring that all fund movements are captured within the payments’ infrastructure.

For beneficiaries depositing cheques and bank drafts into an account it ensures a standardised clearing process, and clearer indications of when funds shall be available, facilitating cash‑flow management and reducing uncertainty. Institutions likewise benefit from reduced cash handling, lower operational and security risks, and improved audit trails, resulting in a more controlled and efficient processing environment.

This update also aligns with Malta’s broader policy objective of strengthening transparency in payment practices. Recent amendments to the Employment and Industrial Relations Act (Cap. 452) require wages payable to third‑country nationals to be settled exclusively by bank transfer or through an electronic transfer executed by a licensed financial institution. Both developments move in the same direction: enhancing transparency, reducing risks of abuse, and supporting stronger oversight across the payments landscape.

Funds credited instantly in the case of over‑the‑counter deposits

Under the new amendments, cheques deposited in person at a branch of the issuing bank should be credited instantly, allowing immediate access to the funds, including cash withdrawal from an ATM. This procedure will also apply from 1 January 2027. By contrast, cheques deposited via an ATM of the same bank will be credited no later than the end of the following business day. The same rules also apply to cheques issued by the Central Bank on behalf of the Government of Malta, including tax refunds and government bonus cheques.

For beneficiaries, such changes provide quicker access to money and clear timeframes that support cash‑flow planning and reconciliation. For institutions, it enables more efficient in‑house processing, reduces risk exposure, and limits cash handling steps.

Key Takeaways

Overall, the updated Directive reflects a balanced approach between preserving payment choice and encouraging the adoption of more efficient alternatives. While cheques and bank drafts will continue to serve specific use cases, particularly for higher-value transactions, their role in everyday payments is expected to diminish further over time in favour of faster and more secure electronic solutions.

Looking ahead, the Central Bank will continue to support initiatives that strengthen the efficiency, resilience and strategic autonomy of the payments’ ecosystem. This includes fostering the uptake of instant payments and promoting solutions that enhance transparency, reduce risk, and align Malta with broader European developments in retail payments. In this evolving landscape, the Directive forms part of a wider policy direction aimed at ensuring that payment services remain accessible, secure and future-ready.

Dr Stephanie Gatt is Deputy Head Legal Department at the Central Bank of Malta

Gianella Azzopardi is Principal Expert Payments Policy and Compliance Office at the Central Bank of Malta

The post Cheque payment instrument: Key updates to Central Bank of Malta Directive No. 19 first appeared on The Malta Business Weekly.

As the financial services landscape grows increasingly digital and complex, the need for informed decision-making by citizens has never been more vital. To lead this effort locally, Sarah Pulis has been appointed as Malta’s Financial Literacy Ambassador. In this capacity, she joins an elite network of experts across the continent supporting the EU’s Savings and Investments Union, a flagship initiative designed to make financial markets more accessible and transparent for everyday citizens.

Tasked with bridging the gap between high-level policy and the “man on the street,” Pulis aims to demystify the world of finance for the Maltese public. In the following interview, she discusses her vision for the role, the specific challenges facing local households, and the roadmap for building a more financially resilient nation.

As Malta’s Financial Literacy Ambassador, how will you go about your duties?

Financial literacy isn’t confined to policy documents or classrooms; it plays out in our everyday lives. It is used when someone receives their first salary, considers taking out a loan, decides whether to start investing, or tries to understand if an investment offer is genuine.

As Malta’s Financial Literacy Ambassador, my role is to make these moments less confusing. This means working with Malta’s many stakeholders, including government bodies, regulators, and social policy actors, while engaging directly with the public. Clear communication, trust, and consistency are key.

What are your main priorities?

My priorities come from what we see happening in everyday life in Malta.

One key priority is helping people move from saving to informed investing. Maltese households are disciplined savers, but many people hold back from investing because they simply do not feel confident enough. Building a basic understanding of risk, diversification, different types of financial products, and the benefits of long-term planning is essential.

Another key priority is keeping people safe in a fast-moving digital environment. Scams are more sophisticated than ever and they affect people across all ages and backgrounds. Awareness needs to be practical, timely, and continuous, given the speed at which scams evolve.

Reaching people at different stages of life is also important. Financial literacy is most effective when it meets people where they already are, whether through media, schools, workplaces, or community settings, rather than expecting them to seek out purely formal education environments.

What do you perceive to be the biggest challenges the man on the street faces vis-à-vis financial literacy? How can you help?

A common challenge is uncertainty. Financial products, terms, and conditions can appear complex, and many people fear making the wrong choice, which can lead to inaction.

My role is not to advise individuals or simplify decisions for them, but to help reduce barriers to engagement by promoting clear, neutral, and consistent information. Encouraging people to ask questions, take time to consider offers, and seek reliable sources can already make a meaningful difference.

There is also a tendency to rely on familiar options, sometimes without reassessing whether these remain suitable. Promoting a basic understanding of risk and limitations can support more balanced decision-making without prescribing specific outcomes.

Digitalisation adds another layer. While many people are comfortable using digital tools, they may not always fully appreciate the implications of what they agree to online. Helping people recognise warning signs and understand where to find trusted information is an important part of the broader effort.

In February, the MFSA, in collaboration with the European Commission’s Reform and Investment task force (SG REFORM), the Organisation for Economic Co-operation and Development (OECD), and the Ministry for Finance of Malta, presented findings of a survey on the financial literacy and investment behaviours of Maltese retail investors. Those results showed that Malta’s overall financial literacy levels are slightly above the OECD average, reflecting strong budgeting and saving habits. But they also revealed persistent gaps in investment knowledge and participation. How do you intend to tackle this?

The survey results from the EU-funded Technical Support Instrument project tell an important story. Malta performs well overall, particularly in budgeting and saving, but clear gaps remain in investment knowledge and participation. Addressing these gaps starts with getting the basics right, such as explaining how risk and return are linked and why diversification matters. There are also widespread misconceptions about certain financial products, such as bonds, guarantees, and perceived safety, which need to be tackled directly.

Addressing this does not mean encouraging greater risk-taking. It means supporting a better understanding of basic investment concepts, while also addressing common misconceptions around perceived safety. The objective is to help people understand their options more clearly so that any decisions they take are better informed and aligned with their individual circumstances.

In March, the EU’s Commissioner for Financial Services and the Savings and Investments Union, Maria Luís Albuquerque, convened the first virtual meeting of national financial literacy ambassadors. Can you tell us what was discussed and any plans of action agreed upon?

The first meeting of EU Financial Literacy Ambassadors made it clear that Malta’s experiences mirror those seen across Europe. Digital fraud, low investor confidence, and gaps between awareness and understanding are common themes.

There was strong agreement that financial literacy plays a central role in building trust in financial markets and supporting the EU’s broader goals under the Savings and Investments Union. Ambassadors were seen as important bridges between policy-level objectives and practical, everyday realities. Going forward, the focus will be on sharing practical experiences, aligning messages where possible, and learning from what works across Member States.

Why is financial literacy such a big focus of the European Commission?

Financial literacy is a major focus of the European Commission because it is essential to achieving the EU’s objective of a genuine Savings and Investments Union. When citizens understand how to save, invest, and manage risk, they are more likely to participate confidently in financial markets, allowing household savings to be channelled into productive investments that support growth and innovation across the EU. At the same time, stronger financial literacy helps protect consumers, promotes inclusion, and builds trust in the financial system, all of which are critical for a resilient and integrated European economy.

Looking ahead

While the road to financial literacy is a long-term journey, Pulis remains optimistic about the impact of these collective efforts.

“One of my biggest challenges is maintaining momentum,” Pulis notes. “Financial products and digital risks evolve quickly, and our communication must keep pace. However, financial literacy is a shared responsibility. While institutions provide the tools, the goal is to empower the individual. In the long run, even small, consistent improvements in understanding can make a meaningful difference to a family’s financial resilience.”

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