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.

In an interview with The Malta Business Weekly, Etienne Attard says the logistics industry has moved beyond reacting to occasional shocks and is now adapting to a fundamentally different global trading environment shaped by geopolitical instability, trade fragmentation, energy volatility, and supply chain insecurity.

“International logistics is no longer characterised by episodic disruption,” Attard explains. “What we are seeing today is a structural condition of uncertainty that is reshaping the entire sector.”

With more than seventy years of experience in transport and logistics, Express Trailers has witnessed multiple economic and geopolitical cycles. However, Attard argues that the current environment differs significantly from previous periods of volatility.

“In the past, crises were generally viewed as temporary events — whether it was the pandemic, the war in Ukraine, port congestion, or energy shocks. The assumption was always that markets would eventually stabilise. Today, there is growing recognition across the industry that instability itself has become the operating environment.”

According to Attard, the traditional logistics model built around efficiency optimisation and predictable globalisation is being replaced by one centred on resilience and adaptability.

“Global trade is more fragmented, more politicised, and less predictable than at any point in recent decades,” he says. “Supply chains are now being redesigned around the expectation of recurring disruption rather than stable international conditions.”

The impact is particularly visible in smaller and strategically located markets such as Malta, where maritime connectivity and international trade routes are critical to economic activity.

“For Malta’s logistics sector, trade wars, tariff volatility, and maritime insecurity can no longer be treated as temporary distortions,” Attard notes. “They are increasingly structural features that directly influence routing decisions, pricing, transit times, and customer behaviour.”

One of the most immediate challenges facing operators is growing operational complexity.

Attard identifies three major dynamics currently reshaping the sector.

“The first is persistent route volatility,” he explains. “Disruptions in maritime corridors such as the Red Sea have forced significant rerouting around Africa, increasing transit times and creating cascading effects throughout supply chains.”

A second challenge is regulatory fragmentation.

“As trade blocs become more rigid and tariff regimes shift more frequently, logistics companies are having to develop stronger capabilities in customs intelligence, compliance management, and regulatory coordination,” he says. “These are no longer administrative functions — they are now strategic operational requirements.”

At the same time, customer expectations are also evolving rapidly.

“Many businesses are moving away from purely cost-driven just-in-time supply chain models,” Attard says. “There is a growing emphasis on resilience, redundancy, regional diversification, and maintaining higher inventory buffers.”

This transformation, he argues, is also changing the role of logistics providers themselves.

“The sector is becoming less transactional and far more advisory in nature. Customers increasingly need partners who can help them interpret instability, manage scenarios, and maintain visibility across disrupted networks.”

For operators in Malta, this creates both pressure and opportunity.

“The pressure is clear — tighter margins, shorter planning cycles, and less predictable asset utilisation,” Attard says. “Traditional efficiency-led models are becoming increasingly insufficient.”

However, he believes companies that can offer agility, intelligence, and responsiveness will be best positioned to grow.

“As complexity increases, so does the value of orchestration,” he explains. “Logistics providers are evolving from transport operators into strategic intermediaries between global volatility and local execution.”

In this environment, Attard believes scale alone is no longer enough.

“The key differentiators today are adaptability, information, and responsiveness,” he says.

Looking ahead, Attard believes the industry must abandon the expectation that global logistics will eventually return to a stable equilibrium.

“The strategic question is no longer how to return to normal,” he concludes. “The real question is how to operate reliably in a world where normal no longer exists.”

The post ‘Today, logistics is about helping clients manage permanent disruption’ first appeared on The Malta Business Weekly.

In a proposal document titled LEAD – standing for “Leverage, Excellence, Agility and Delivery” – the Chamber said that the proposals presented were more than a “wish list” and instead constituted “a strategic roadmap” for Malta’s future, insisting that the country must now prove it is “ready to innovate, ready to lead, and ready to build a nation where economic success and societal well-being go hand in hand.”

The Chamber said it launched its internal consultation process on 27 April 2026, immediately after the announcement of the general election date, with a survey circulated among members to identify and rank their business priorities.

Its members are classified under three economic groups: the Importers, Distributors, Retailers Economic Group (IDREG), the Manufacturers Economic Group (MEG), and the Services Economic Group (SPEG).

A substantial portion of the Chamber’s proposals focused on Productivity and Competitiveness, which it said should act as “the engines of sustainable growth” by enabling businesses to operate and compete ethically both locally and internationally while maximising output and efficiency.

On labour migration policy, the Chamber proposed a series of revisions based on what it described as operational realities experienced in recent months, including exempting probation periods and redundancies for a just cause from quota calculations, revisiting mandatory three-week vacancy advertisements for critical roles, shortening response times for quota waivers linked to business growth, and processing applications within shorter timeframes through clearer application requirements.

The Chamber also proposed extending work permit renewal periods to three years and introducing sector-specific frameworks for industries such as aviation, yachting, maritime and shipping.

It said that operational continuity in such sectors depends on the rapid deployment of highly specialised international personnel.

Concern was also raised over the Maltese/EU employee to foreign worker ratio under the Labour Migration Policy, with the Chamber proposing that companies facing high overtime costs due to labour shortages should be allowed more flexibility where they are unable to recruit Maltese or EU workers despite continued vacancies.

It also proposed the elimination of status gaps during immigration appeals, citing lengthy waiting times and an existing backlog before the Immigration Appeals Board.

The Chamber additionally proposed removing the current cap and reducing the tax rate on overtime for full-time employees, adding that overtime taxation should be lower than the rate applied to part-time work to discourage workers from opting for secondary part-time jobs simply to benefit from lower taxation.

The proposal document said that this tendency was particularly prevalent among younger local workers in sectors such as manufacturing and retail.

Among other labour-related proposals, the Chamber called for adults with asylum protection status to be granted work permits, subject to conditions including clean police conduct, competence certification and three-year renewals.

The Chamber also suggested amendments to the current 2% disability quota law so that employers could meet quotas through the employment of both persons with disabilities and asylum protection adults.

It also proposed the introduction of Individual Learning Accounts in the form of “portable skills e-wallets” to encourage lifelong learning and greater employee ownership over career development.

It further proposed the creation of a Vocational Mobility Trades Package aimed at attracting workers and international students into trade-focused education and employment, potentially including English language support, rental assistance and work placements with Malta-based employers, with high-performing students potentially being offered extended stay visas tied to longer-term residency permits.

Mobility and transport also featured prominently in the proposals, with the Chamber calling for mobility e-wallets allowing individuals to access discounted sustainable transport services, adding that annual allocations usable across various forms of shared mobility could encourage behavioural change, reduce emissions and alleviate congestion.

The Chamber also proposed investment in a “state-of-the-art International Logistics Hub,” integrating air, sea and land transport through a possible public-private partnership under the Free Zone Act.

It argued that such a project could establish Malta as a logistics gateway between Europe and North Africa while complementing the planned Freeport expansion and a future dedicated air cargo terminal envisaged in Malta Vision 2050.

The Chamber also called for the strategic importance of the Grand Harbour to be recognised as critical national infrastructure, arguing that industrial, maritime and logistics operations should take precedence over commercial interests in planning decisions affecting the area.

On energy, the Chamber proposed revisiting industrial night-time electricity tariffs by lowering eligibility thresholds to encourage businesses to shift operations to off-peak hours, thereby reducing congestion and easing pressure on the electricity grid.

It also called for reforms to current renewable energy policies at INDIS Malta, including maximising rooftop photovoltaic deployment across industrial estates, ensuring equal conditions for businesses investing in energy upgrades, and clarifying administrative and cost procedures linked to renewable energy projects.

The Chamber further proposed updates to building regulations to make all new developments fibre-ready and equipped for 5G small-cell infrastructure at design stage, while also eventually extending structured retrofitting requirements to existing buildings to prepare Malta’s built environment for the digital economy.

One of the Chamber’s most notable fiscal proposals was a reduction in the corporate tax rate from 35% to 25% for all businesses, falling further to 20% for compliant businesses as a reward for ethical practices, coupled with targeted incentives for export-oriented high-potential sectors.

It proposed measures aimed at retaining and attracting skilled workers, including five-year tax exemptions for highly qualified Maltese nationals currently living abroad to reverse brain drain and address skills shortages in key sectors.

The Chamber also proposed significant reforms within the public sector and education system, including an independent audit of all government departments and entities to identify redundancies, reduce bureaucracy and redeploy surplus public sector workers into the private sector where necessary.

It further called for the elimination of half-day schedules in the public sector and for public service working hours to be streamlined with those of businesses, arguing that the current system creates inconveniences and inefficiencies.

On education, the Chamber proposed a “root-and-branch” curriculum reform shifting the national model from knowledge acquisition towards skills-based learning, while also introducing AI, critical thinking, digital literacy and financial literacy across the curriculum from primary level onwards.

The Chamber also proposed revisiting taxes and stamp duty linked to inter vivos and causa mortis transfers involving family businesses and property, arguing that lower rates on inter vivos transfers could encourage earlier and more structured succession planning.

Another major pillar of the LEAD document focused on what the Chamber described as “Excellence through Quality,” which it said should become the standard for Malta’s future growth model through better planning, stronger governance, enforcement reform and institutional agility.

The Chamber proposed an urgent revision of the Strategic Plan for Environment and Development (SPED) first adopted in 2015 and due for review in 2020, arguing that planning policies require stronger alignment, clearer rule hierarchies and the removal of ambiguity that allows inconsistent interpretation.

It also called for a carrying capacity assessment of Malta’s built and natural environment.

The Chamber further proposed a package of fiscal and regulatory incentives aimed at promoting environmentally sustainable construction and investment practices, including reduced tax rates on profits reinvested into sustainable systems, lower tax rates for landlords renting energy-efficient buildings, increased support and stamp dut exemptions for first-time buyers purchasing energy-efficient properties, and lower capital gains or withholding taxes for developers using sustainable construction materials.

The proposals also included the introduction of a building logbook recording a property’s structural history, certifications, maintenance obligations and subsequent alterations over time.

The Chamber further called for the ‘Malta Business Wallet’ to be extended across all regulatory authorities, professional bodies, corporate service providers and banking institutions.

On tourism, it proposed reforming the Malta Travel and Tourism Services Act to better reflect what it described as the realities of today’s tourism ecosystem, including evolving accommodation models, niche tourism segments and the increasing influence of digital platforms and technology.

The Chamber also called for stronger and more coordinated enforcement across government departments and regulatory authorities, arguing that preventive and unselective enforcement should become the norm.

Public procurement reform also featured in the document, with the Chamber arguing that procurement decisions should move beyond “box ticking” exercises and instead prioritise expertise, labour standards, health and safety obligations and accountability rather than lowest-price considerations alone.

The Chamber additionally called for stronger safeguards to ensure the supply of medicines and medical devices, including procurement frameworks prioritising reliability and quality over purely price-driven purchasing, alongside improvements to the CPSU inventory system to strengthen forward planning and clinical governance.

It also proposed the modernisation of public procurement contracts through automatic index-linked price adjustment clauses during periods of exceptional market disruption to protect service continuity while safeguarding public finances through transparent rules-based adjustments.

On governance, the Chamber urged Malta to implement improvements suggested in the European Commission’s 2025 Rule of Law report, including maintaining a public register of meetings between MPs and lobbyists, eliminating political influence over the national broadcaster, ensuring transparent state advertising practices and strengthening meaningful public consultation processes.

The post ‘Malta has proven it is resilient. Now it’s time to plan’ – Malta Chamber unveils election proposals 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.

An offshoot of US healthcare giant Baxter International is set to invest €150 million in a new pharmaceutical manufacturing facility in Ħal Far, Prime Minister Robert Abela announced on Wednesday.

The project will be operated by Vantive, a specialised healthcare firm focusing on therapies for vital organs. The announcement was made on Wednesday during a joint news conference held by government officials and company representatives.

According to the plans, the facility will be constructed on a 16,000-square-kilometre site, with works expected to commence later in 2026. Construction is projected to be completed by 2027, while the plant is targeted to become fully operational by 2029.

Vantive’s operations at the new site will centre on advanced treatments for organ care, with a particular emphasis on kidney therapies and dialysis solutions.

Speaking at the event, Prime Minister Robert Abela highlighted the long-term vision underpinning the investment, pointing to its role in creating around 250 career opportunities for Maltese workers.

“These are the types of investments that create careers for our students,” Abela said. “An investor will not commit €150 million in a country that lacks a clear vision for the future.”

He referenced the government’s long-term strategy, Malta Vision 2050, as a key factor in attracting such projects.

“We have given a clear direction of where we want to be in 25 years,” he said.

Abela also emphasised the broader societal impact of the investment, noting that the facility’s output will directly contribute to healthcare outcomes.

“This sector is one of excellence, and the products manufactured will improve people’s quality of health,” he said, adding that such projects are “tangible investments that contribute to the betterment of our society.”

Meanwhile, Economy Minister Silvio Schembri highlighted the significance of securing a major investment of this scale, noting that Malta’s track record and credibility continue to attract international players.

“It is not easy to secure investments of this level in our country, but we have built the experience and credibility to do so,” Schembri said. “With every challenge comes an opportunity, and we have brought an international company, Vantive, to operate in Malta.”

He added that construction on the site is expected to begin in the coming weeks and be completed by 2027, while encouraging students to prepare for future opportunities linked to the project.

“When you finish your studies, you can benefit from the opportunities we are creating,” he said, describing Vantive as “the type of investment our country needs.”

Schembri stressed that economic growth must translate into real improvements in people’s lives.

“Economic numbers are important, but they mean nothing if they do not better the lives of people. We want the economy to work for the people,” he said.

The post €150 million MedTech firm Vantive facility planned for Ħal Far first appeared on The Malta Business Weekly.

The research, authored by Professor Rose Marie Azzopardi and Professor Alexiei Dingli, brings together extensive local and international analysis, stakeholder engagement, and forward-looking insights, positioning human capital as a central pillar for Malta’s future competitiveness.

Speaking at the launch, the Chair of The Malta Chamber’s Employment Agencies Business Section Mr Justin Anastasi described the report as a turning point in Malta’s economic journey.

“Over the past decade, Malta has experienced strong economic growth driven largely by expansion in numbers. However, the time has now come to shift decisively towards quality,” he said.

“This report clearly shows that we are facing structural challenges, including skills mismatches, skills shortages, and an increasing reliance on foreign labour. At the same time, education outcomes are not fully aligned with labour market needs.”

“If Malta is to remain competitive, we must prioritise productivity, invest in upskilling and reskilling, and strengthen the link between education and industry. Lifelong learning is no longer optional, it is essential.”

Also addressing the launch, Mr Geoffrey Fichte, CEO of HSBC Malta, emphasised the broader national importance of the project.

“Malta’s economy stands out as a real success story in Europe.  This has been achieved thanks to the innovation and hard work of its people, supported by clear government policy and a forward-looking strategy,” he said.

“We supported this research project to better understand what is needed for continued success in the economy of the future including technological change, artificial intelligence and global competition.”

“It provides some clear and actionable recommendations to build a more skilled, adaptable, and future-ready workforce.”

The report highlights a number of critical challenges and priorities for Malta’s development. It finds that while economic growth has been strong, it has been largely driven by workforce expansion rather than productivity gains, making a transition towards a quality-driven economic model essential.

Among its key findings, the report identifies persistent skills mismatches, shortages in key sectors, and a continued brain drain of highly educated individuals. It also points to a growing disconnect between education investment and outcomes, as well as the need to better align education systems with labour market demands.

In response, the report calls for a fundamental shift towards lifelong learning, stronger collaboration between education and industry, and the adoption of more flexible and modern learning approaches, including micro-credentials and competency-based education. It also emphasises the importance of digital skills, adaptability, and continuous upskilling in a rapidly changing global economy.

Both organisations reiterated that addressing these challenges requires coordinated action across government, industry, and education stakeholders, stressing that Malta’s long-term prosperity will depend on its ability to develop, attract, and retain talent.

The Human Capital Research Project represents the culmination of three years of research and dialogue and is intended to serve as a roadmap for future policy and strategic action.

The post Final Human Capital Report calls for urgent shift towards a quality-driven economy first appeared on The Malta Business Weekly.

The project consists of the construction of a 122 km alternating current subsea electricity interconnector, operating at a nominal voltage of 220 kV and a frequency of 50 Hz, with a transmission capacity of 225 MW. The cable will connect the Enemalta terminal station in Magħtab, Malta, to Terna’s substation at Contrada Cimillà in Ragusa, Sicily. The operation also benefits from earlier EIB Advisory support during project preparation, including the assessment of its financial and economic viability, ensuring the project’s maturity, financing eligibility and compliance with relevant EU requirements.

“The second interconnector is an important investment in Malta’s long-term economic stability. By strengthening our energy infrastructure, we reduce vulnerability to external shocks, improve supply security, and support stable energy prices for households and businesses,” Minister for Finance Clyde Caruana stated.

Scheduled to enter into operation in the first quarter of 2027, the interconnector will increase electricity interconnection capacity between Malta and Italy, enabling electricity imports from the EU market, strengthening security of supply and grid stability, and supporting demand growth and the integration of renewable energy in line with Malta’s decarbonisation objectives.

“Electricity interconnectors are essential to a secure, integrated and decarbonised European energy system. By backing Malta’s second interconnector with Italy, the EIB is strengthening energy security, facilitating cross-border electricity exchange and renewable integration, while ensuring that growing demand can be met in a reliable and sustainable manner. This project reflects the EIB’s key role in supporting strategic energy infrastructure across Europe,” EIB Vice-President Marek Mora stated.

The total project cost is estimated at 296.68 million euros, financed by EU funds under the European Regional Development Fund with 165.78 million euros, alongside the EIB loan and the Republic of Malta’s own resources. The EU Bank also provided advisory support through JASPERS, a joint initiative of the EIB and the European Commission, offering guidance on project design, procurement and implementation to ensure a robust technical framework and smooth delivery of this strategic infrastructure.

The Government of Malta will retain ownership of the assets. Interconnect Malta, a 100% government-owned company, is responsible for issuing tenders, implementing the project, and operating the assets under a public service obligation. The full interconnector capacity will be made available to Enemalta, Malta’s electricity distribution system operator, under a capacity agreement, with an annual tariff charged for its use.

The EIB in Malta

The European Investment Bank (EIB) has been supporting the Maltese economy since before the country’s accession to the European Union, with its first project signed in 1979 to help expand the commercial port of Valletta Grand Harbour. Since then, the EIB Group’s financing in Malta has exceeded €1 billion, aiding vital sectors such as SME access to finance, urban regeneration, climate action, and telecommunications. The EIB has also supported landmark infrastructure projects that have transformed the heart of Valletta, including the Parliament building and the open-air theatre at the City Gate. As the EU’s long-term lending institution, the EIB remains committed to promoting sustainable investment and fostering economic resilience in Malta and across Europe.

The post EIB backs with €100 million Malta’s energy transition through second electricity interconnector with Italy first appeared on The Malta Business Weekly.

“A new Nationalist Government will ensure that the challenges being faced by local companies are addressed and that they are given the support they need not only to continue growing and investing in our country, but also to expand into foreign markets beyond our shores,” Borg said.

His comments came at the end of two visits carried out on Wednesday morning, during which he met workers and held discussions with management, a statement said.

The PN leader visited the Foster Clark factory in San Ġwann and later the headquarters of Camilleri Group in Ħandaq, describing both as family businesses that have grown, diversified into different sectors, and expanded into international markets.

At Foster Clark, a food manufacturing company, Borg was welcomed by company officials and shown around one of the factories, where he met workers and observed the production processes behind products including custard, jelly, beverages, dessert mixes, cake mixes, essences and food colouring.

Apart from Malta, the company has manufacturing plants in Saudi Arabia and Italy, while more than 99% of its production is exported to 80 countries worldwide, including products made specifically for overseas markets.

In San Ġwann, Foster Clark, which forms part of the Francis Busuttil & Sons Group, operates three factories across seven blocks. The group employs around 1,000 people, 400 of whom work directly with Foster Clark.

During a meeting with Borg, company representatives spoke of the challenges they are facing as well as their ambitions to continue expanding.

Borg was shown various sections of the factory, including areas where automation and advanced technology using robots are employed, and praised the company’s commitment to investing in workers through continuous training, as well as skilling and re-skilling.

Foster Clark Managing Director Joseph Busuttil, Operations Director Paul Demanuele and Distribution Managing Director Kris Lanzon thanked Borg and the party delegation for the visit, and spoke of the importance of support for Maltese businesses to continue growing.

Borg was accompanied during the visit by PN MPs Ryan Callus and Jerome Caruana Cilia, PN candidates Jonathan Muscat and Marilena Gauci, and PN CEO Sabine Agius Cabourdin.

From San Ġwann, Borg proceeded to Ħandaq, where he visited the headquarters of Camilleri Group and was welcomed by directors Tonio, Joseph and Andrè Camilleri, as well as CEO George Debono.

Best known for the Camilleri tal-Ħelu shop in Valletta, the family business dates back to 1843.

Over time, the group has diversified beyond confectionery, including through C Camilleri & Sons, which imports confectionery, provides catering services for events such as weddings, supplies restaurants and school tuck shops, and has also expanded into the clothing and fashion sector with brands including Matalan, Mothercare, Promod and Morgan.

The group operates 25 outlets across Malta and employs 220 full-time workers.

During discussions with Borg, the directors spoke of the importance of a level playing field in the sector, as well as other challenges they face, with Borg reiterating that a future Nationalist government would support companies by addressing such difficulties.

The PN delegation was also shown around the group’s warehouse, confectionery section, kitchen and offices, with Borg meeting employees working in various departments, including retail, HR, finance, marketing and sales.

Borg praised the company’s resilience and its ability to diversify despite challenges over the years.

He was accompanied during this visit by PN Deputy Leader Alex Perici Calascione, Secretary General Charles Bonello and PN MP Adrian Delia.

The post Borg pledges support for businesses to expand abroad during company visits first appeared on The Malta Business Weekly.

Operators are reporting sustained diesel price inflation, with Italian retail prices exceeding €2 per litre. This has triggered significant cost escalation across the trailer and freight industry, with estimates suggesting additional weekly sector costs in the region of €80 million. Diesel, which typically accounts for 30% to 40% of operating costs, is now placing extreme pressure on carrier margins.

ATTO Chairman Joseph Bugeja said early signs of disruption are becoming more evident.

“Alongside sustained cost pressures, we are seeing isolated instances of fuel supply constraints in parts of Italy. While not yet systemic, these warrant close monitoring,” he said.

Member operators report increasing operational strain.

“To date we have not experienced systemic uplift failures, though drivers have occasionally encountered stations with limited availability,” said Antoine Vella of Express Trailers. “Rising diesel costs are now requiring continuous monitoring and rapid operational adjustments.”

He added that the volatility is increasingly affecting planning and network reliability.

“With vehicles operating across Europe, refuelling has become more critical and is adding complexity to daily operations. The uncertainty in the current environment could have significant implications for Malta’s logistics chain,” he said.

GMC Transport reported fuel cost increases of 20% to 30% over recent months, with margin compression of up to 40%. Director Mark Buttigieg said pricing pressure is now forcing urgent rate reassessments across client contracts.

Concorde’s Jonathan Vella said operators are responding with tactical mitigation measures.

“We are refuelling earlier, relying on larger motorway stations, and avoiding low fuel thresholds before entering Italy or France,” he said. “Even minor delays can now cascade into missed ferry schedules and trailer rotation disruption.”

He noted that cost inflation across EU corridors remains severe, with diesel up approximately 35% over three months and 37% over six months.

Meantime, the Italian government has introduced excise duty reductions and tax credits for transport operators to ease pressure on the haulage sector. However, industry feedback suggests these measures are being outpaced by the scale of cost increases.

At the same time, associations are raising concerns that part of the recent diesel price escalation may be driven by speculative pricing dynamics, amplifying volatility beyond underlying market fundamentals and intensifying financial strain across operators.

More broadly, the Italian haulage sector is facing liquidity pressure due to rising costs and 60–90 day payment cycles, increasing the risk of rate renegotiations, service reductions, and potential operational disruption.

ATTO also noted that pricing transmission across Europe remains uneven due to differing taxation systems and policy interventions, contributing to corridor volatility.

Bugeja emphasised Malta’s structural exposure as a fully import-dependent island economy.

“With no overland alternatives, Malta is entirely dependent on the reliability of European transport corridors. Around 55,000 trailer movements annually underpin national trade flows, and any sustained disruption, whether it’s cost-driven or physical, can rapidly impact economic stability,” he said.

ATTO concluded that while domestic fuel pricing measures offer partial insulation, Malta remains exposed to external corridor volatility, as most absolute fuel uplift occurs outside the country. The association will continue to monitor developments closely and engage stakeholders where necessary to safeguard supply chain continuity.

The post Escalating fuel cost and emerging strain along European routes leading to serious logistics concern first appeared on The Malta Business Weekly.