Addressing the PN’s delegation, Chamber President William Spiteri Bailey said the business community was looking beyond political criticism and wanted clear solutions to the country’s growing economic and infrastructural challenges.

He said Malta’s credibility depended not only on the government of the day but also on having an Opposition that was prepared to govern.

“When we speak to government, we ask for accountability, implementation and results. When we speak to the Opposition, we ask for vision, preparation and a credible alternative,” Spiteri Bailey said.

He argued that businesses invest in certainty, direction and confidence rather than criticism, before challenging the Opposition to explain what kind of Malta it wanted to lead.

Spiteri Bailey described Malta as being at a crucial moment, saying that while the economy had grown, so too had problems including traffic congestion, energy, infrastructure, pressure on public services, competitiveness, governance and quality of life.

He said these were not isolated issues but symptoms of an economic model that had served Malta well for many years but had now reached its limits.

The Chamber reiterated its long-standing call for Malta to transition from an economy driven by volume to one based on value, moving away from population-led growth towards higher productivity, and competing through quality, innovation and efficiency rather than price alone.

Spiteri Bailey argued that national success should no longer be measured solely by GDP or population growth but also by productivity, competitiveness, quality of life and people’s wellbeing.

He posed a series of questions to the Opposition, asking how it intended to increase productivity, reduce dependence on continuous population growth, attract higher-value investment, strengthen innovation, research, digitalisation and artificial intelligence, and help businesses become more productive and competitive.

He also stressed that competitiveness depended not only on tax policy but also on strong institutions, good governance, efficient public administration, modern infrastructure, reliable energy and a modern education system.

The Chamber President said good governance was not simply a matter of reputation but an economic necessity, arguing that countries with stronger institutions attracted more investment and achieved more sustainable growth.

Referring to the government’s Vision 2050 strategy, Spiteri Bailey said a vision alone was insufficient unless it was translated into concrete plans and action. He pointed to the Chamber’s own policy proposals on productivity, tourism, digitalisation, artificial intelligence and governance as examples of practical contributions to the national debate.

He called for cross-party consensus on issues such as productivity, education, energy, competitiveness, justice, governance and Malta’s international reputation, saying these national priorities should not change with every electoral cycle.

Closing his address, Spiteri Bailey said the Chamber did not engage in partisan politics but in economic policy.

“We are not interested in who wins the election. We are interested in Malta winning,” he said, adding that the country needed long-term leadership willing to take difficult decisions while placing productivity, competitiveness, governance and quality of life at the centre of policymaking.

Replying to the Chamber, Opposition Leader Alex Borg agreed that Malta needed to focus on improving quality of life alongside economic growth.

Borg said the Nationalist Party believed Malta should invest more heavily in energy to reduce dependence on foreign countries.

He also described traffic congestion as having a significant impact on businesses. Borg said this was why the party had proposed introducing a mass transit system during the general election campaign.

The Opposition Leader also highlighted the growing role of artificial intelligence in industry, saying he had visited several businesses that had invested significantly in AI, particularly within the manufacturing sector, helping improve national productivity.

Borg cautioned that headline GDP figures did not necessarily reflect people’s daily lives.

“On paper GDP can look a certain way, but quality of life can look completely different,” he said.

While acknowledging the importance of economic growth, Borg argued that the wellbeing of workers should remain the country’s principal priority.

He added that future development should be guided by a clear long-term plan that reflected today’s realities.

The post Chamber of Commerce urges Opposition to present credible economic vision first appeared on The Malta Business Weekly.

Speaking during a meeting with the Agriculture Consultative Council at Buskett, Abela said the amendments, approved by Cabinet, would create a fairer system by assessing farmers according to their declared income rather than simply the size of their agricultural holdings.

He said the revised framework would strengthen the legal system introduced last year, improve efficiency and allow the government to provide more tailored assistance to different categories of farmers.

Abela also announced that works on the long-promised Farmers’ Market at Ta’ Qali will begin in September. The project, which forms part of the government’s electoral programme, is intended to provide dedicated facilities for farmers, livestock breeders and fishermen while creating more opportunities for direct sales to consumers.

The market is also expected to give shoppers greater access to fresh local produce at affordable prices.

The Prime Minister said such initiatives would strengthen Malta’s food supply, safeguard the country’s agricultural heritage and protect the rural environment. However, he stressed that the government’s priority remained improving the resilience of the sector and increasing farmers’ incomes.

Abela highlighted a series of reforms introduced in recent years, including changes to agricultural land legislation, the modernisation of the Public Abattoir and reforms at the Pitkalija wholesale market.

He also pointed to the expansion of the New Water system, schemes aimed at improving access to agricultural land, grants to modernise farms and equipment, and financial support to help farmers cope with rising import costs.

As evidence of growth in the sector, Abela said sales of fruit and vegetables through the Pitkalija had increased from €21 million in 2021 to almost €28 million in 2025. He added that further investment was planned, including a new digital system, modern containers and upgraded facilities.

Agriculture Minister Anton Refalo, who also attended the meeting, announced that the government will launch a public awareness campaign in the coming weeks to promote olive cultivation and the production of olives and olive oil.

He said the initiative complements ongoing efforts to secure official Protected Designation of Origin (PDO) status for the endemic Maltese Bidni olive variety and the olive oil produced from it.

Before meeting the Agriculture Consultative Council, Abela visited the Vine Centre at Buskett, where he described viticulture as an important showcase for Maltese agriculture with strong economic potential.

He said the government intends to complete the Wine Museum in Żebbuġ, Gozo, during this legislature and open the Buskett Viticulture Centre to visitors as part of wider plans to develop wine tourism.

Abela said the government’s long-term vision for agriculture is to shift the sector towards higher value-added production through innovation and integrated rural development, while pledging to maintain close dialogue with farmers and their representatives.

The post Abela announces overhaul of farmer classification rules as Ta’ Qali market set for September start first appeared on The Malta Business Weekly.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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The latest figures show that foreign residents now make up 31% of Malta’s population, with net migration patterns continuing to drive growth. Based on PwC’s demographic modelling, Malta’s population is projected to reach a base case of 636,000 by 2030.

This path puts the country among Europe’s fastest-growing economies by population.

This rapid expansion brings both economic opportunity and important challenges. At its current population level, Malta already ranks as the fourth most densely populated country globally, with a population density of approximately 1,862 people per square kilometre. By 2030, this density is projected to increase to 2,013 people per square kilometre, which will add further pressure on the nation’s finite resources. 

Infrastructure demands require urgent investment

The report highlights clear infrastructure pressures that call for decisive action. Currently, Malta ranks 17th among EU peers on hospital beds per 100,000 residents, with 397 beds compared to the EU average of 511. To simply maintain this relative standing by 2030, Malta would need to add approximately 329 additional hospital beds, meaning a 15% increase. To reach parity with the European average Malta would require nearly 1,054 additional beds, a 48% increase.

Energy infrastructure is also worth considering, given the increasing population. According to the latest data, Malta produced 2,138k MWh of locally generated electricity in 2024, with a net 970k MWh imported to meet total energy demand. Assuming the same level of local energy capacity for a projected population of 636,000, Malta would need to import 1,304k MWh of electricity to maintain current per capita consumption levels, representing a circa 25% increase in imported energy requirement.

While the demographic path presents challenges, it also underscores the urgency of strategic planning. Our projections are based on varying levels of slowdown in current net migration flows. Nonetheless, population is still expected to increase significantly, with the mix of foreign to local residents potentially reaching around 38% by 2030. The key policy change will be ensuring that infrastructure, public services, and long-term planning keep pace with this changing reality.

“Malta’s population growth reflects our economy’s resilience and attractiveness, but it demands proactive planning,” said Lucienne Pace Ross, PwC Malta’s Territory Senior Partner. “The decisions we make today regarding infrastructure investment and resource allocation will fundamentally determine whether this growth improves our quality of life or strains our public systems. We must make sure that our hospitals, energy networks, and essential services scale proportionally with population expansion.”

The full PwC Economic Update offers a detailed update of Malta’s economic performance and sets out demographic projections. To access the complete report and explore detailed insights into Malta’s economic outlook, visit here.

The post Population growth drives urgent infrastructure needs – PwC Malta Summer 2026 Economic Update first appeared on The Malta Business Weekly.

Lost time in congestion translates directly into delayed deliveries, missed appointments, reduced efficiency, higher operating costs, and lower quality of life. When traffic becomes normalised, the country pays for it in hours lost, fuel wasted, wellbeing reduced and business opportunities diminished, the chamber said.

It added it has been consistently putting forward concrete proposals to address Malta’s traffic and mobility crisis throughout the last legislature. We have done so in published press releases, consultation documents, pre-Budget submissions, pre-election submissions and sector-specific proposals because the status quo is not sustainable. Yet, despite repeated warnings and practical suggestions, very few of the Chamber’s recommendations have been taken on board in any meaningful way.

“The Malta Chamber has said this repeatedly: a real shift in behaviour will not happen through incentives and positive reinforcement alone. If the objective is to reduce private car dependency, disincentives must also form part of the policy mix. Without a balanced approach that includes practical alternatives and measures that make continued car use less attractive in peak conditions, behavioural change will remain limited and the roads will remain congested,” the chamber said.

It is of great concerned to note that effective implementation improves quality of life and productivity has been lagging far behind. In an age of digitalisation and AI, Malta is still discussing basic coordination issues, with too many roadworks, permits and transport decisions still managed in fragmented ways. The country cannot continue deploying manpower to manage roundabouts and congestion manually when intelligent traffic-light systems, smarter data tools, and better coordination platforms should already be standard.

The Malta Chamber therefore reiterated its call for a fundamental change in the way traffic is managed. This is not a matter of isolated fixes; it requires a coherent national effort, backed by strong governance, proper coordination and the political courage to take decisions that may be difficult in the short term but are essential for the country’s long-term health.

The Malta Chamber’s proposals include the following:

• Introduce mobility e-wallets funded through targeted urban parking and congestion-management revenues, so that the scheme promotes actual modal shift.

• Use an AI driven solution through which local councils process domestic and business requests for road closures and permits, including an interactive public-facing platform to give residents and businesses advance visibility of disruptions to allow for their proper planning. This system should build on and be an integral part of the internal system being used between various government entities intended to minimize road disruptions and which currently is lacking on the public-facing on-the-fly information updates.

• Introduce a public-facing platform for local council domestic and business requests for road closures, giving residents and businesses advance visibility of disruptions. This should complement the existing coordination system between entities, while addressing the missing public-facing element.

• Reform school transport through geographic pooling and wider use of supervised walking and community-based initiatives to reduce school-front congestion.

• Deploy smart parking information systems in congestion-prone localities to reduce unnecessary circulation in search of parking.

• Roll out smart mobility and logistics solutions for commercial areas, including loading-bay management, delivery-slot booking and enforcement tools.

• Use public-private partnerships to relocate on-road parking into underground or multi-storey facilities, while freeing surface space for more efficient mobility uses.

• Develop logistics consolidation hubs where evidence supports them, in order to reduce duplicate freight trips and improve competitiveness.

• Link public funding for transport and infrastructure to independently verified mobility outcomes, so that money follows results, not promises. 

The Malta Chamber urged the government to heed these proposals with urgency and seriousness. Malta can no longer afford piecemeal measures, slow implementation and half-measures that fail to address the root causes of congestion. If Government does not act decisively now, the country risks entrenching inefficiency, weakening competitiveness and failing residents, workers and businesses alike. It’s time to break the gridlock!

The post Traffic cannot remain the order of the day, Malta Chamber says first appeared on The Malta Business Weekly.

The Gozo Tourism Operators Performance Review 2025, based on a survey of 80 tourism-related businesses conducted in April this year, paints a largely positive picture of the island’s tourism industry. However, it also highlights persistent challenges linked to operating costs, labour shortages and infrastructure.

The report found that 56% of respondents experienced an improvement in business performance during 2025 when compared to the previous year. A further 30% reported no significant change, while only 14% said their performance had deteriorated.

Among the six tourism categories surveyed, tourist attractions and activities emerged as the strongest-performing segment, with 76% of operators reporting better results than in 2024. Tourism and travel services followed closely, with 75% registering improved performance.

On the other hand, food and beverage establishments recorded the highest proportion of businesses reporting a decline in performance, at 22%. Transport and mobility services followed with 20%, while collective accommodation establishments such as hotels, boutique hotels and guesthouses recorded an 18% decline.

The report underlines the importance of international visitors to Gozo’s tourism economy. More than three-quarters of respondents, 77%, said foreign markets had a positive impact on their business performance during 2025. Of these, 45% described the impact as “good”, while another 32% considered it “excellent”.

Tourist attractions and activity providers, including diving centres and cultural attractions, were particularly upbeat about international demand, recording the highest share of “excellent” ratings.

The strength of foreign demand was also evident when operators compared 2025 with the previous year. Most respondents reported that the contribution of foreign markets had improved, while only 13% believed the impact had worsened. The report notes that negative shifts in foreign demand were relatively limited.

Non-collective accommodation providers, including self-catering apartments, villas and farmhouses, reported the most stable situation, with more than half indicating that the contribution of foreign markets remained unchanged from 2024.

Domestic tourism also played an important role, although its contribution was noticeably weaker than that of international visitors.

The survey found that 45% of respondents described the impact of the domestic market as “good”, while 44% rated it as “average”. Just 11% considered local demand to have had an “excellent” impact on their business.

Interestingly, those who awarded the domestic market an “excellent” rating were concentrated mainly within the food and beverage sector, suggesting that local visitors continue to play an important role for restaurants and bars.

When compared with 2024, most operators said the contribution of domestic demand remained stable. Some 68% reported no change, while 23% said the impact of local demand had increased. Only one in ten respondents reported a decline.

The positive performance trends translated into stronger revenues for many businesses.

Three-quarters of survey participants rated their revenue generation during 2025 as either “good” or “excellent”. Specifically, 65% selected “good” and a further 10% selected “excellent”, while the remaining quarter described revenue generation as average.

The transport and mobility services sector stood out as the weakest performer in this regard, with 60% of respondents in that category reporting only average revenue generation.

Overall, revenues improved compared to 2024, with only 15% reporting a decline. Nearly one-third said revenues remained unchanged.

The report attributes part of this improvement to stronger performance during the festive season at the end of 2025.

Perhaps more significantly, the findings suggest that revenue growth was driven by increased demand rather than higher prices. Among businesses that reported higher revenues, 71% said the improvement resulted primarily from an increase in clientele rather than price adjustments.

This indicates that growth was largely demand-led, reflecting stronger visitor numbers rather than inflation-driven revenue gains, the report said.

The survey also examined how businesses perceived the development of their operations over the course of the year.

Most operators reported that their businesses had improved during 2025. Tourism and travel services led the way, with 75% reporting operational improvements. Collective accommodation and tourist attractions and activities both recorded improvement rates of 65%.

Only 8% of respondents reported deterioration in business operations, with transport and mobility services again emerging as the most challenged sector.

Despite the generally positive performance, tourism operators identified several significant obstacles affecting their businesses.

Rising operating costs were by far the most frequently cited challenge, mentioned by around 71% of respondents. The report links this concern to wider inflationary pressures and volatility in international energy and transport markets.

Labour shortages remain another major concern. More than half of respondents identified staff shortages as a key issue, while a similar proportion pointed to difficulties associated with foreign work permits.

These labour-related challenges were particularly acute in the food and beverage sector and among transport and mobility operators.

Infrastructure concerns also featured prominently, with 40% of respondents identifying them as a challenge. Within the transport and mobility category, the figure rose to 60%, highlighting the sector’s dependence on road networks and connectivity.

Additional concerns raised by operators included increasing competition in the non-collective accommodation market and the growing prevalence of day-trippers, which may limit spending on accommodation and other tourism services.

The report concluded that Gozo’s tourism sector maintained a positive trajectory throughout 2025, supported by strong international demand and improved revenue performance. However, it also warns that structural challenges linked to costs, labour availability and infrastructure continue to affect businesses and could influence future growth if left unaddressed.

The post Majority of Gozo tourism businesses saw performance improve in 2025 first appeared on The Malta Business Weekly.

Following the identification of hundreds of subsea targets along the 99-kilometre submarine corridor, specialised offshore teams relocated 117 unexploded ordnance items, predominantly dating back to the Second World War. This complex operation prepares the strategic maritime route for the next phase of installation, ensuring the protection of personnel, the integrity of the infrastructure, and the long-term reliability of the network.

The Identification and Clearance campaign was initiated following the completion of the Detailed Marine Route Survey, during which 707 magnetic targets were initially detected along the 99-kilometre submarine cable route between Malta and Sicily.

Following rigorous desktop post-survey analysis, this figure was reduced to 393 targets requiring direct physical investigation through specialised offshore inspection and clearance activities.

During the offshore campaign, 84 of these targets were initially confirmed to be unexploded ordnance (UXO). Whilst this already represented a significant volume compared to standard offshore surveys, further engineering challenges arose as works progressed. Additional UXOs were identified buried directly beneath some of the previously detected objects, raising the final number of cleared unexploded items within the corridor to 117.

The uncovered munitions varied considerably in type, size, and physical condition, ranging from artillery shells and hand grenades to Hedgehog anti-submarine mortars. Due to the depths involved and the inherent safety risks associated with unexploded wartime ordnance, handling and clearance activities were carried out by specialised personnel utilising remotely operated vehicles and dedicated offshore equipment. These operations required detailed planning, continuous coordination with the Armed Forces of Malta, and strict adherence to established safety protocols.

The campaign was executed through Interconnect Malta’s main contractor, Nexans, with the direct support of specialised subcontractors NextGeo and Sub Service S.r.l., who provided the necessary vessels, equipment, marine expertise, and Explosive Ordinance Disposal specialists. Following the successful completion of the operation, Sub Service S.r.l. will issue the relevant safety certifications.

Miriam Dalli, Minister for Energy, the Environment and the Regeneration of the Grand Harbour, stated that, “the successful completion of the identification and clearance campaign represents a major technical milestone for the Second Interconnector, a project which is central to Malta’s vision to decarbonise the sector by 2050.”

Inġ. Ismail D’Amato, Chief Executive Officer at Interconnect Malta, acknowledged the critical external support provided throughout the operation. “The collaboration, technical assistance, and close coordination with the Armed Forces of Malta at each stage of the campaign, were essential to ensuring that the works were carried out safely and in line with the required procedures,” he said.

The project consists of a new 122km long 245kV, 225MW, 50Hz electrical cable interconnection between Malta (Maghtab) and Sicily (Ragusa) to be laid in parallel but at a safe distance to the existing HVAC cable link which was commissioned in 2015.

This €300 million project was approved for ERDF funding, specifically under Priority 2, ‘Promoting clean and fair energy transition, sustainable wastewater management, and green investment’, and Specific Objective 2.3, ‘Developing smart energy systems, grids, and storage outside the TEN-E network’.

The second interconnector will not only increase the security of the electrical supply but will also lead to increased investment in renewable energy, which will help Malta better handle the intermittent nature of green sources like offshore wind and solar. Once completed, the 245kV submarine cable will double Malta’s connectivity to the European energy grid. According to the project’s cost-benefit analysis, 13.5 million tonnes of CO2 emissions will be reduced, enhancing its significance in Malta’s long-term decarbonisation strategy.

This €300 million investment has been approved for ERDF funding under the priority “Promoting a clean and just energy transition” and contributes directly to smart and stable energy systems. The project has been recognised as an “Operation of Strategic Importance” in the 2021-2027 Programme, with €261 million allocated in European funding.

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Unlike traditional financing arrangements that may require substantial upfront payments, GO ENERGI is offering customers solar energy systems with no upfront investment and repay the cost through monthly instalments at 0% interest. This offer is open to everyone, even to non-customers of GO.

Established by GO in 2024, GO ENERGI combines solar installation expertise with flexible financing options intended to reduce the initial financial commitment often associated with renewable energy projects.

“Malta has made significant progress in solar energy adoption over recent years, but there remains considerable potential for more households to benefit from renewable energy solutions. With Government grants currently available for both solar PV and battery storage systems, many homeowners have a valuable opportunity to invest in technologies that can help reduce energy costs while contributing to Malta’s sustainability goals,” said Alison Mercieca, Chief Commercial Officer at GO plc.

Government grants are available to residential properties holding a residential ARMS bill, with eligible households able to apply for both photovoltaic and battery storage grants. Homeowners who previously benefited from a solar panel grant more than six years ago may also qualify for battery storage support.

For households that do not qualify under the current grant scheme, GO ENERGI also offers solutions through the Feed-in Scheme, providing alternative pathways to renewable energy adoption.

To further encourage uptake, GO ENERGI has extended its customer incentive programme, offering a €25 KLIKK voucher following a site visit and a further €200 KLIKK or GO voucher upon installation.

Malta’s transition towards renewable energy continues to gather momentum, with almost 35,000 photovoltaic (PV) systems now installed across the country, according to the latest figures published by the National Statistics Office (NSO).

NSO data released last year reported that 34,955 grid-connected PV installations were operational by the end of 2024, with the domestic sector accounting for more than 93% of all systems and that renewable electricity generated from PV installations reached 326.5 GWh during the year, reflecting continued growth in residential solar energy adoption.

The post GO Energi supports government grants for solar PV systems 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 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 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 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.