According to Camenzuli, the scale of adoption places GO among the more advanced AI users in Malta’s business landscape. From an AI-powered customer chatbot that autonomously resolves the majority of digital customer interactions, to an internal platform enabling employees to build their own AI agents, the company’s approach is focused on practical applications that deliver measurable results.

“For many companies, AI might still be at conversation level but at GO, it has become part of how the business operates every day,” says Camenzuli, who has been leading the company’s digital transformation since 2018.

He explains that GO’s strategy is built around two complementary pillars.

“The first is customer-facing AI, centred around GO’s next-generation chatbot. The second is IntelliAsk, the company’s internal AI platform designed to give employees secure access to advanced AI capabilities while protecting company knowledge and data.”

GO’s customer chatbot, launched in 2024, marked a major shift away from traditional automated support tools.

Rather than forcing customers through predefined menus, the conversational system allows them to explain their issue in their own words and receive a response tailored to their specific circumstances. The technology is integrated across WhatsApp, Facebook Messenger and GO’s website chat channels, creating a consistent customer experience regardless of where a conversation begins.

“The difference is not simply that the chatbot can answer questions. It can take action,” says Camenzuli, explaining that when a customer reports broadband issues, the system can run diagnostics, identify potential faults and automatically create a service request where required. It can also check account information, billing details, roaming settings, service status and appointment details, providing customers with immediate answers without requiring human intervention.

“Our objective was never to remove human interaction from customer service but to use AI to remove repetitive processes and free up employees to focus on more complex customer needs,” he explains.

“When a conversation does require human support, the chatbot hands it over together with an AI-generated summary, so customers do not have to repeat their story and agents have immediate context,” he adds.

Behind the scenes, GO has also invested heavily in ensuring that its AI systems continuously improve. Customer conversations are analysed to identify missed opportunities, recurring issues and areas where the experience can be improved.

“AI does not make the customer experience perfect,” Camenzuli is careful to note. “What it does is facilitate the journey. We are on a continuous journey of improvement, and our goal is to keep delivering a consistently good experience for our customers.”

That same focus on continuous improvement carries through internally, via IntelliAsk, GO’s secure AI platform available to employees across the Group.

Rather than simply purchasing individual AI subscriptions, GO created its own environment where employees can access multiple AI models, interact with company information securely and build reusable AI solutions.

“The reasoning is strategic. AI capability becomes an organisational asset rather than something tied to individual employees which means that when someone creates a useful AI workflow, that knowledge stays within GO and becomes part of the company’s collective intelligence,” explains Camenzuli.

That approach has already generated strong employee engagement. GO staff have created hundreds of AI agents through IntelliAsk, with a growing number curated and made available through an internal marketplace.

The applications range from technical operations to everyday business processes, with teams across areas such as network operations, security and project management building agents that support tasks including log analysis, alert processing, documentation and delivery.

Importantly, the adoption has not been limited to technology specialists. Employees across departments including retail, facilities, HR, legal and sales are finding ways to use AI to improve their own workflows.

One of the clearest impacts of this approach is that AI is transforming employees from users of technology into creators of solutions.

Beyond customer care and employee productivity, AI is already delivering measurable operational improvements across the organisation. Contract management processes are being automated through AI extraction of key information from agreements, finance teams are using AI to process documents that once required manual input, and network teams are cutting the time spent on complex technical tasks.

“Software development processes that once took days can now be completed in minutes,” he added. Camenzuli stresses that for a telecommunications company, however, innovation must be balanced with responsibility.

“GO has placed security, privacy and governance at the centre of its AI approach,” he says. “Data remains within trusted infrastructure, user permissions are respected, and AI interactions are monitored.”

“In fact, our ambition is not to create a business operated by machines but to see AI as a tool that allows people to work smarter and make better decisions. This is why internally, we apply GO’s ‘Getting better every day’. It’s a principle that reflects our broader transformation journey,” concluded Camenzuli.

It is a philosophy that ties back to GO’s wider purpose: to drive a digital Malta, where no one is left behind.

The post ‘AI at GO isn’t a pilot anymore. It’s how the company runs’ first appeared on The Malta Business Weekly.

Malta’s logistics operators and consumers are already experiencing the economic impact of the European Union’s Emissions Trading System (ETS). The result is straightforward: higher transport costs that ultimately increase the price of almost everything imported into Malta. By 2028, a second carbon pricing mechanism, ETS2, will add further pressure, risking the affordability of Malta’s essential connectivity with Europe.

The results of this new regulation, over and above ETS, carry the very serious risk of Malta’s connectivity to Europe, our lifeline, becoming unaffordable.

No one disputes the importance of Europe’s transition to a lower-carbon future. Reducing emissions and promoting more sustainable transport are necessary objectives. However, climate policy must recognise that not all member states face the same realities. For Malta, geography is not a minor consideration but a permanent economic constraint.

As an island nation state, Malta depends entirely on reliable sea links to mainland Europe. Every day, food, medicines, construction materials, industrial supplies and consumer goods arrive through these maritime connections. Unlike continental countries, Malta has no road or rail alternatives. Sea transport is not a choice; it is our economic lifeline.

Before introducing another major carbon pricing mechanism through ETS2, the European Union must fully acknowledge the pressures Malta’s international transport sector is already facing.

Maltese international trailer operators have no option but to rely on maritime services to reach European markets. A typical return journey between Malta and Genoa covers around 1,400 nautical miles, creating a structural disadvantage that mainland competitors do not face. Yet these operators sustain Malta’s connectivity by generating the freight volumes that support six weekly Ro-Ro services linking Malta with Europe.

The sector is already under considerable strain. Current ETS measures add approximately €1,000 to the cost of each round-trip trailer. These costs cannot simply be absorbed by operators and are ultimately passed on to Maltese businesses and consumers.

At the same time, operators purchase around 90% of their diesel in Europe, where prices average approximately €2.50 per litre. They also face rising port charges, terminal fees and road tolls across the continent. Together, these increasing costs are placing Malta’s transport sector under growing competitive pressure.

This is why European policy must reflect the realities of island member states. While mainland operators can benefit from road-only routes, rail alternatives and shorter supply chains, Malta has none of these advantages. A one-size-fits-all approach risks placing a disproportionate burden on economies that depend entirely on maritime connectivity.

The ongoing review of the EU ETS framework offers an opportunity to recognise these structural differences. Maltese transport operators are fundamentally different from their continental counterparts because their business model depends entirely on sea transport. Future legislation should reflect this reality.

The challenge will become even greater when ETS2 is introduced in 2028. Designed to extend carbon pricing to road transport and buildings, ETS2 aims to accelerate decarbonisation by increasing the cost of fossil fuels. While the objective is understandable, its impact on island economies requires careful consideration.

Current European assessments suggest ETS2 could increase diesel prices by around €0.13 per litre under moderate carbon price assumptions, with higher scenarios reaching between €0.30 and €0.50 per litre by 2030. For Maltese operators already paying around €2.50 per litre, this represents an additional increase of between 5% and 20%.

The consequences extend well beyond the transport sector. Higher freight costs inevitably explain the higher prices for essential goods, increasing costs for businesses and households alike. ETS2 therefore extends beyond the transport sector, becoming a broader issue with implications for national competitiveness, affordability, and economic resilience.

ATTO believes that sustainability and competitiveness must go hand in hand. Malta’s transport sector is committed to supporting Europe’s climate objectives, but operators need realistic pathways, targeted investment and policies that recognise the realities of operating from an island state.

If ETS-related revenues are collected, a meaningful share should be reinvested in practical decarbonisation measures, including cleaner vehicle technologies, alternative fuel infrastructure and financial support for operators modernising their fleets. The transition must be supported by investment, not regulation alone.

This is an issue that requires national unity. The government, the Opposition, relevant ministries, Malta’s members of the European Parliament and all stakeholders must work together to ensure Malta’s unique circumstances are recognised at European level.

The question is not whether Malta should participate in the green transition. It should and it will. The real question is whether Europe can achieve its climate ambitions while safeguarding the competitiveness of island economies, protecting the affordability of essential goods and preserving the connectivity on which Malta depends.

Climate action must remain ambitious, but it must also be practical, balanced and fair.

Joseph Bugeja is the chairman of ATTO

The post ETS and ETS 2 threatens to make Malta’s connectivity to Europe unaffordable first appeared on The Malta Business Weekly.

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

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

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

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

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

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

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

Reassurance for customers

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

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

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

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

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

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

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

Strong underlying performance

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

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

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

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

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

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

Lending growth continues

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

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

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

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

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

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

Strong capital position

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

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

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

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

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

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

Wealth and insurance

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

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

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

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

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

Continuing investment

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

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

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

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

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

Looking ahead

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

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

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

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

The MSE Equity Total Return Index (MSE) closed the month higher by 0.8%, to settle at 9,988.394 points. A total of 30 equities were active, as nine advanced and 18 declined. Total monthly turnover reached €5.4m, generated across 884 transactions. Since the beginning of the year the MSE is up by 12.2%.

The MSE Corporate Bonds Total Return Index closed 0.9% higher, as it reached 1,164.118 points. Out of 110 active issues, 71 headed north, while another 26 closed in the opposite direction. The 4% Stivala Group Finance plc Secured € 2027 recorded the best performance, up by 3.1%, to close at €99. Conversely, the 4% Shoreline Mall plc Secured € 2026 closed 28.2% lower at €70.

The MSE MGS Total Return Index declined by 0.3%, closing at 967.606 points. Out of 40 active issues, nine traded higher while another 31 declined. The 1.4% MGS 2046 headed the list of gainers, as it closed 2.1% higher at €60.64. On the other hand, the 1.8% MGS 2051 closed 3.4% lower at €59.63.

Top 10 Market Movers

Bank of Valletta plc posted a 4.3% monthly gain, settling at its monthly high of €2.17 after dipping to a low of €2.07 during the period. The banking equity was the most liquid of the month, with 1,149,508 shares crossing the market across 222 transactions, generating €2.4m in turnover.

APS Bank plc closed higher for the fourth consecutive month. The banking equity gained 1.8% to finish at €0.58, climbing off a monthly low of €0.55. A total of 290,814 shares were dealt across 86 transactions, with €166,566 recorded in turnover.

Having declined 13.5%, FIMBank plc ended the month at its low of $0.16. The USD-denominated equity saw 172,193 shares dealt across 15 transactions, with $25,130 changing hands.

Having now registered losses in three consecutive months, Lombard Bank Malta plc dropped a further 5.6%, closing at €0.68 after ranging between a low of €0.655 and a high of €0.73. A total of 21 transactions of 59,657 shares were executed.

International Hotel Investments plc closed the month on a high, as the equity of the hotels’ operator rallied 7.3% to close at €0.585, recovering from a low of €0.545. Across 48 deals, €132,880 in turnover was recorded, involving 238,234 shares.

Mapfre Malta plc advanced 8.4% over the month, closing at €1.42 after recovering from a low of €1.33. A total of 22,258 shares were transacted across 11 deals, producing €31,572 in trading value.

Malta International Airport plc edged 0.8% higher over the month, closing at its monthly high of €6.25 after dipping to a low of €6.05. A combined 59,007 shares changed hands across 50 deals, bringing total turnover to €364,796.

Among the month’s notable decliners, Simonds Farsons Cisk plc shed 8.2% to close at €5.60, having reached a high of €6 earlier in the period. A total of 19,328 shares were dealt across 28 transactions, amounting to €108,834 in traded value.

PG plc tanked 6.1% over the month, closing at €1.55 after trading as high as €1.65. The consumer staples equity saw 160,672 shares dealt across 26 transactions, with total traded value reaching €256,453.

Having fallen 8.2% from a high of €0.438, Malita Investments plc closed the month at €0.38, its monthly low. A total of 79,158 shares were transacted across 13 deals, amounting to €31,514 in turnover.

Company Announcements

Bank of Valletta plc has announced that during the six-month period ended June 30, 2026, the Group registered operating income of €251.3m, up 3% from €244m in the corresponding period, driven by higher net interest income from continued growth in the lending book. Profit after tax nonetheless fell to €79m from €89.5m, a decline of 11.8%, for basic earnings of €0.1231 per share, primarily reflecting a net credit loss charge in the period against a release in the prior year, together with higher operating costs arising from ongoing investment in staff, technology and regulatory initiatives. The Board declared an interim net dividend of €0.0523 per share, representing a payout ratio of 42.5% of profit after tax, payable on August 21, 2026.

APS Bank plc has announced that, at its board meeting held on July 30, 2026, the Board approved the Group’s condensed interim financial statements for the six-month period ended June 30, 2026. The Group delivered a record interim result, with profit after tax rising to €16.3m from €4.9m in the corresponding period, for earnings of €0.0082 per share. The strong performance was driven by robust growth in business volumes and a stronger, more diversified revenue base. The Board declared an interim net dividend of €4m or €0.0082 per share.

During thesix months ended June 2026, Malta International Airport plc has generated revenue of €82.5m, up 14.8% from €71.9m in the corresponding period, driven by a 15.6% increase in traffic to 5.2m passenger movements, while profit after tax rose to €29m, an increase of 18.5%. The Board approved an interim net dividend of €0.06 per share.

For thesix months ended June 2026, Mapfre Malta plc registered profit after tax of €9.2m, down from €9.8m in the corresponding period, for earnings of €0.07 per share. The reduction was primarily attributable to a lower insurance service result, reflecting the impact of Storm Harry and the fireworks factory explosion earlier in the year as well.

Malta Properties Company plc registered rental income of €2.9m for the six months ended June 30, 2026, up 29% from €2.3m in the corresponding period, driven mainly by the renovation and re-letting of previously vacant properties to new tenants. Profit after tax more than doubled to €1m from €0.5m.

Plaza Centres plc (PZC) has entered into a promise of sale agreement to acquire a property in Tigné, Sliema. The property is leased to an established childcare operator, and the acquisition is expected to enhance the Company’s earnings upon completion. The transaction remains subject to several conditions that must be satisfied by the seller. The Board believes the acquisition aligns with the Company’s strategy of strengthening and diversifying its property portfolio and will update the market on any material developments.

AX Group plc has announced that, by virtue of a deed dated July 15, 2026, its majority-owned subsidiary AX Business Park Limited acquired an immovable property in Marsa measuring circa 6,923m² from Marsa Investments Limited, previously used as the match box factory known as “The Modern Match Factory Marsa”. The total consideration of €15m was paid in full upon execution of the final deed of sale. The acquisition consolidates the adjacent properties already owned by AX Business Park Limited, with the Group currently working on plans for the development of the overall site and a development application to be submitted to the Planning Authority soon.

RS2 plc has announced that its wholly owned subsidiary, RS2 Financial Services GmbH, has been selected by the Euro system to participate as an acquiring payment service provider in the European Central Bank’s Digital Euro Pilot. The subsidiary is one of 36 payment service providers selected for the programme, which is intended to test the practical application of a potential digital euro in real-world payment scenarios and is expected to commence during the second half of 2027.

This article, which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a Member of the Malta Equity Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited, 16 Central Business Hub, Level 3, Mdina Road, Attard ATD 9036, or on Tel: 21224410, or email info@jesmondmizzi.com

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

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

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

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

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

R&D employment

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

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

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

R&D government budget allocations

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

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

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

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

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

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

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

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

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

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

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

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

While several sectors experienced a moderation in growth, the Central Bank noted that the overall picture remains one of resilience, supported by strong consumer confidence, a robust labour market, healthy tourism activity and relatively stable conditions in the property market.

The Bank’s Business Conditions Index showed that annual growth in business activity during June was slightly below its historical average. However, this was largely attributed to timing effects related to tax revenue rather than a broad-based slowdown in economic performance.

Manufacturing and retail trade both registered slower growth during May, while services production eased in April. Nevertheless, activity in all three sectors remained above their respective long-term averages, suggesting that underlying economic conditions continue to be favourable.

Tourism continued to stand out as one of the strongest performing sectors, recording sustained growth during May and providing continued support to the wider economy.

One of the report’s most encouraging findings was the sharp improvement in consumer sentiment. Confidence among consumers rose significantly during June, reaching levels close to historic highs. At the same time, expectations regarding unemployment declined further, falling below their historical average and reflecting continued optimism about labour market conditions.

The labour market itself remained exceptionally strong. Malta’s unemployment rate stood unchanged at 3.5% in June compared with the previous month, although marginally higher than the exceptionally low level recorded during the same period last year.

Inflationary pressures also continued to ease. Annual inflation based on the Harmonised Index of Consumer Prices (HICP) declined from 2.1% in May to 2.0% in June, placing Malta comfortably below the euro area average, where energy prices continued to exert upward pressure on inflation. Core inflation, which excludes food and energy, stood at 2.2% and likewise remained below the euro area figure.

Meanwhile, the Retail Price Index (RPI) showed inflation easing further to 2.5% during June, reinforcing signs that price pressures are gradually moderating.

The property market continued to display resilience despite mixed signals. On the supply side, approved permits for residential developments increased compared with the same month last year, while commercial building permits declined. Demand indicators presented a mixed picture, with residential promise-of-sale agreements falling year-on-year during June, although final deeds of sale increased, suggesting that completed transactions remain healthy.

On the public finance front, the Consolidated Fund recorded a deficit in May, contrasting with a surplus during the corresponding month in 2025. The Central Bank attributed this primarily to the timing of income tax receipts together with increased capital expenditure by government.

Financial conditions also remained broadly supportive. The annual growth rate of deposits held by Maltese residents accelerated during May, while credit growth remained broadly unchanged from April, indicating continued stability in household and business financing.

Overall, the Central Bank’s latest assessment suggests that while the pace of economic expansion has moderated, Malta’s economy continues to demonstrate solid underlying fundamentals. Strong consumer confidence, resilient employment, easing inflation and sustained tourism activity continue to underpin economic performance, even as certain sectors return to more sustainable growth rates.

The post Malta’s economy holds firm despite slower momentum, CBM says first appeared on The Malta Business Weekly.

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

By the end of June 2026, the Government’s Consolidated Fund reported a deficit of €463.5 million.

Between January and June 2026, Recurrent Revenue amounted to €4,155.2 million, €681.0 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€287.7 million), Grants (€156.8 million) and Value Added Tax (€137.4 million). On the other hand, lower revenue was recorded under Fees of Office (€13.8 million), Reimbursements (€2.1 million) and Sales – Others (€0.9 million).

Total expenditure by the close of June 2026 stood at €4,618.7 million, €687.1 million higher than the previous year.

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

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

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

By the end of June 2026, Government’s capital spending amounted to €507.3 million, €165.9 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the Acquisition of property for public purposes (€49.1 million), Property, Plant and Equipment (€18.6 million) and Road construction and improvements (€15.0 million). The rise in spending was partially offset by drops recorded under the Investments in Physical Assets (Agricultural EU funds) (€5.3 million) and Investment Incentives (€5.1 million).

The difference between total revenue and expenditure resulted in a deficit of €463.5 million being reported in the Government’s Consolidated Fund at the end of June 2026, in comparison to the €457.4 million deficit registered the year prior. This difference mirrors an increase in total Recurrent Revenue (€681.0 million), offset by a higher rise in total expenditure, which consists of Recurrent Expenditure (€506.5 million), Interest (€14.6 million) and Capital Expenditure (€165.9 million).

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Addressing the eighth meeting of the Malta Council for Economic and Social Development, Dalli said the government wanted input from employers, trade unions and civil society on initiatives that could reduce pressure on specific parts of the electricity grid during demand peaks.

She said Engineer Abigail Cutajar had been tasked with meeting MCESD members to present the government’s proposals and discuss measures that could encourage responsible electricity consumption.

Dalli stressed that the discussions would not concern changes to electricity tariffs or higher bills. Instead, they would focus on managing sharp, localised increases in demand when extreme temperatures place particular feeders and substations under pressure.

“The fact that we do not burden people with high bills does not mean that we promote waste,” she said.

The meeting was requested to discuss the electricity supply challenges experienced during the previous week, which Dalli acknowledged had caused concern among residents, businesses and the groups represented within the MCESD.

She said Malta had not followed the approach taken by some other European countries, where restrictions on electricity use had been introduced. However, she said this did not mean that Malta should avoid awareness initiatives encouraging consumers to use electricity responsibly.

Dalli said the government had already carried out public information campaigns but acknowledged that more could be done. She invited MCESD members to submit their own ideas on how consumers could help reduce demand during the most critical periods.

Malta’s electricity demand reached 741 megawatts during the recent period of intense heat, substantially higher than the country’s average demand of around 450MW.

Dalli said electricity demand had increased by 86% when compared with 2014, attributing the rise to extreme temperatures, a growing population and increased activity across homes, offices, hotels, restaurants and the manufacturing industry.

She said the recent pressure on the network had largely been caused by localised demand peaks rather than a nationwide shortage of electricity.

The most significant problems were experienced at low-voltage level, where a number of individual consumers were affected. These faults were concentrated on particular feeders and substations serving specific areas.

Dalli said investment carried out at high- and medium-voltage levels since 2024 had strengthened the system and provided Enemalta with greater flexibility when faults occurred, helping prevent consumers from remaining without electricity for long periods.

However, she acknowledged that the work needed to continue across different localities, particularly at medium- and low-voltage levels.

Three distribution centres are currently under construction and are expected to be completed shortly, while further work is planned in several localities.

Valletta was identified as one of the areas where ageing electricity infrastructure must be replaced. Dalli said carrying out the necessary works in the capital would be particularly sensitive because of its high concentration of residents, offices and commercial establishments.

She said Enemalta had been asked to hold discussions with MCESD members, Infrastructure Malta and the Valletta Local Council to determine how the project could be carried out gradually and with the least possible disruption to the residential and business communities.

Works have also started in Birkirkara, Kalkara and Mellieħa, although Dalli said it was not possible to excavate entire localities simultaneously.

She argued that while the government wanted to accelerate the investment programme, the complexity of works inside residential streets meant that a long-term plan could not simply be completed within two years.

“We cannot dig up the whole country at once,” she said, adding that infrastructure works inevitably created inconvenience for residents and businesses.

Dalli thanked Enemalta employees for their response during the recent difficulties and for their work on the distribution system since 2024.

She also responded to claims questioning whether the promised investment had taken place. The government has asked the National Audit Office to update its previous report, which covered the period up to 2023, and examine the work carried out by Enemalta during the past three years.

The minister said the government was also continuing to strengthen Malta’s electricity supply and generation capacity as demand increased.

She referred to Malta’s transition from heavy fuel oil to liquefied natural gas, the construction of the first electricity interconnector and ongoing work on the second interconnector.

The government is also planning a third interconnector and further renewable energy projects, including offshore wind developments.

Dalli said these investments were necessary to support Malta’s economic growth while ensuring that the country could continue meeting the electricity needs of residents and businesses.

Social Dialogue Minister Keith Azzopardi Tanti, who opened the meeting, said its agenda had been shaped by the issues raised by MCESD members during his meetings with their respective organisations.

He said the meeting demonstrated the council’s importance in representing workers, businesses, civil society and the interests of Gozo.

Azzopardi Tanti said the government believed in dialogue and collaboration and pledged that the concerns raised by MCESD members would be brought forward for discussion at the earliest opportunity.

Dalli said the electricity challenges faced by the country were a national issue requiring cooperation between the government, Enemalta, social partners and consumers.

She said the government would continue investing in the grid but wanted MCESD members to help identify practical measures that could protect essential electricity use and limit pressure on the network during future periods of extreme demand.

The post Minister Miriam Dalli asks MCESD for measures to address power cut crisis first appeared on The Malta Business Weekly.

The Social Climate Fund provides significant financial support to EU Member States to finance measures and investments identified in their national Social Climate Plans, ensuring that the clean transition is fair and leaves no one behind. Running from 2026 to 2032, the Fund is expected to mobilise at least €86.7 billion, combining revenues from the new emissions trading system for fuel combustion in buildings, road transport and additional sectors (ETS2) as well as Member States’ contributions (at least 25% of the costs of their plans).

Malta’s plan will help vulnerable households improve the energy efficiency of their homes and renovate apartments in public social housing buildings, the statement said. It will do so through energy-efficiency upgrades, such as roof insulation, and the installation of renewable energy systems, including heat pump water heaters and photovoltaic systems with battery storage.

The plan will also expand sustainable transport options for more than 30,000 vulnerable transport users through door-to-door community transport services. In addition, it will support vulnerable micro-enterprises in transport-dependent sectors by improving access to affordable electric mobility and charging infrastructure, helping them transition to electric vehicles.

From 2026 to 2032, the measures will help to tackle energy poverty in the country and are expected to reduce greenhouse gas (GHG) emissions by 3,500 tonnes of CO₂ equivalent.

The plan was developed in consultation with national stakeholders and the Commission and reflects the needs of the country. The Commission concluded that it adequately addresses the social impacts of extending GHG emissions trading to buildings and road transport under the ETS2.

Malta will be able to request a first payment to the Commission once implementation has started and the initial investment results have been achieved, the statement said.

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