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	<title>Economy | The Malta Business Weekly</title>
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	<description>A New Voice for Business in Malta</description>
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	<title>Economy | The Malta Business Weekly</title>
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		<title>€407.3 million worth of property sold in August, NSO says</title>
		<link>https://maltabusinessweekly.com/e407-3-million-worth-of-property-sold-in-august-nso-says/30808/</link>
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		<dc:creator><![CDATA[The Malta Business Weekly]]></dc:creator>
		<pubDate>Fri, 11 Sep 2026 15:26:47 +0000</pubDate>
				<category><![CDATA[Featured]]></category>
		<category><![CDATA[Property Market]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30808</guid>

					<description><![CDATA[<p>In August 2026, the number of final deeds of sale and promise of sale agreements relating to residential property amounted to 1,367 and 1,241, respectively. In August 2026, the number of final deeds of sale relating to residential property amounted to 1,367, an increase of 33.8 per cent when compared to those registered in August [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/e407-3-million-worth-of-property-sold-in-august-nso-says/30808/">€407.3 million worth of property sold in August, NSO says</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>In August 2026, the number of final deeds of sale and promise of sale agreements relating to residential property amounted to 1,367 and 1,241, respectively.</p>



<p>In August 2026, the number of final deeds of sale relating to residential property amounted to 1,367, an increase of 33.8 per cent when compared to those registered in August 2025. The value of these deeds totalled €407.3 million, representing an increase of 29.1 per cent when compared to the corresponding value recorded in August 2025.</p>



<p>The residential property transactions featured in this release are not limited to purchases by individuals (households) but may also involve other economic agents. In addition, a single final deed of sale or promise of sale agreement may include more than one property.</p>



<p>In the month under review, 1,236 (or 90.4 per cent) of these final deeds of sale involved individual buyers (households), with companies accounting for virtually all remaining deeds. The value of the deeds involving individual buyers (households) amounted to €329.8 million, equivalent to 81.0 per cent of the total value.</p>



<p><strong>Final deeds of sale by locality</strong></p>



<p>The highest numbers of final deeds of sale were recorded in the following localities: St Paul&#8217;s Bay (91), Marsaskala (75) and Birkirkara (72).&nbsp;</p>



<p><strong>Properties transacted in the final deeds of sale</strong></p>



<p>During the month under review, the number of properties transacted in the final deeds of sale was equivalent to 1,504. Apartments (534) and Garages (364) accounted for the largest shares, at 35.5 per cent and 24.2 per cent, respectively.</p>



<p><strong>Promise of sale agreements</strong></p>



<p>In August 2026, 1,241 promise of sale agreements relating to residential property were registered, equivalent to an increase of 18.3 per cent over the same period in 2025. The value of these agreements totalled €452.6 million, representing an increase of 15.6 per cent when compared to the corresponding value recorded in August 2025. Individual potential buyers (households) accounted for 1,101 (or 88.7 per cent) of these agreements, while the rest mainly involved companies.</p>



<p>The highest numbers of promise of sale agreements were recorded in the following localities: St Paul&#8217;s Bay (110), Birkirkara (58) and Żabbar (49).</p><p>The post <a href="https://maltabusinessweekly.com/e407-3-million-worth-of-property-sold-in-august-nso-says/30808/">€407.3 million worth of property sold in August, NSO says</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
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		<title>Mgarr Harbour expansion is necessary, Gozo Business Chamber says in pre-budget document</title>
		<link>https://maltabusinessweekly.com/mgarr-harbour-expansion-is-necessary-gozo-business-chamber-says-in-pre-budget-document/30806/</link>
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		<dc:creator><![CDATA[Andre Camilleri]]></dc:creator>
		<pubDate>Fri, 11 Sep 2026 15:21:50 +0000</pubDate>
				<category><![CDATA[Featured]]></category>
		<category><![CDATA[Transport]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30806</guid>

					<description><![CDATA[<p>The Gozo Business Chamber has published its proposals for Budget 2027, entitled &#8216;Budget 2027: From Commitment to Implementation&#8217;. As the first Budget of the new legislature, the Chamber argues that the focus must now move from identifying structural challenges and announcing policy commitments towards establishing credible implementation pathways that deliver tangible outcomes for Gozo. A [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/mgarr-harbour-expansion-is-necessary-gozo-business-chamber-says-in-pre-budget-document/30806/">Mgarr Harbour expansion is necessary, Gozo Business Chamber says in pre-budget document</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>The Gozo Business Chamber has published its proposals for Budget 2027, entitled &#8216;Budget 2027: From Commitment to Implementation&#8217;.</p>



<p>As the first Budget of the new legislature, the Chamber argues that the focus must now move from identifying structural challenges and announcing policy commitments towards establishing credible implementation pathways that deliver tangible outcomes for Gozo.</p>



<p>A number of proposals and objectives advanced by the Chamber in recent years are now reflected, wholly or partly, in the Government&#8217;s programme for the new legislature. While this convergence is welcome, it also means that Budget 2027 should focus on translating commitments into clear programmes supported by institutional responsibility, adequate resources, realistic timelines and measurable milestones.</p>



<p>The document identifies eight principal priorities for Budget 2027:</p>



<p>Regionality &#8211; undertake an evidence-based assessment of alternative governance models and develop a roadmap for the progressive exercise of an appropriate devolution of responsibilities and powers to a regional autonomous entity.</p>



<p>Mġarr Harbour &#8211; finance the expansion and futureproofing of the harbour, aligned with future ferry-fleet requirements.</p>



<p>Logistics Hub &#8211; move the Government commitment from concept to implementation, with a defined location, functions, governance, financing and connection with Mġarr Harbour.</p>



<p>Innovation and Enterprise &#8211; reposition the Gozo Innovation Hub as the anchor of a wider start-up ecosystem together with designated start-up support measures that will support the development of such eco-system.</p>



<p>Rural Airfield and Air Connectivity &#8211; provide a realistic annual capital allocation and commence implementation of the Gozo Rural Airfield project.</p>



<p>Financial and Professional Services &#8211; introduce a pilot regular MFSA presence in Gozo and develop a coordinated proposition for attracting substantive operations to Gozo.</p>



<p>Skills and Talent &#8211; implement employee upskilling support, align training with Gozo&#8217;s economic priorities and develop the Youth4Entrepreneurship into a structured entrepreneurship platform for youth.</p>



<p>Existing Businesses &#8211; extend transport assistance, strengthen direct support for digitalisation and productivity, and implement the proposed Valletta facility for Gozobased enterprises.</p>



<p>The Chamber stressed that these priorities are interconnected and should not be pursued as isolated measures. Stronger regional governance, strategic infrastructure, connectivity, logistics, diversification, skills and support for existing businesses must form part of one coherent, place-based development framework for Gozo.</p>



<p>Implementation should also be underpinned by transparent decision-making, clear accountability, objective criteria and effective consultation. The inclusion of many of these measures into the present Government&#8217;s manifesto, following also proposals by the Chamber, make these binding steps for the next legislature providing already the strategic direction that needs to be taken.</p><p>The post <a href="https://maltabusinessweekly.com/mgarr-harbour-expansion-is-necessary-gozo-business-chamber-says-in-pre-budget-document/30806/">Mgarr Harbour expansion is necessary, Gozo Business Chamber says in pre-budget document</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
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		<item>
		<title>What is fuelling Malta&#8217;s economic growth?</title>
		<link>https://maltabusinessweekly.com/what-is-fuelling-maltas-economic-growth/30804/</link>
					<comments>https://maltabusinessweekly.com/what-is-fuelling-maltas-economic-growth/30804/#respond</comments>
		
		<dc:creator><![CDATA[Silvan Mifsud]]></dc:creator>
		<pubDate>Fri, 04 Sep 2026 10:54:48 +0000</pubDate>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Editor's Choice]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30804</guid>

					<description><![CDATA[<p>Malta’s macroeconomic landscape continues to demonstrate remarkable expansion, as seen by the recent publication of the provisional national accounts for the second quarter of 2026. Gross Domestic Product (GDP) in nominal terms reached €6,534.76 million during Q2 2026, representing an absolute nominal increase of €417.1 million, or 6.82% year-on-year, compared to €6,117.64 million in Q2 [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/what-is-fuelling-maltas-economic-growth/30804/">What is fuelling Malta’s economic growth?</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Malta’s macroeconomic landscape continues to demonstrate remarkable expansion, as seen by the recent publication of the provisional national accounts for the second quarter of 2026. Gross Domestic Product (GDP) in nominal terms reached €6,534.76 million during Q2 2026, representing an absolute nominal increase of €417.1 million, or 6.82% year-on-year, compared to €6,117.64 million in Q2 2025. In real volume terms, the economy expanded by 4.5% year-on-year, propelled by a potent combination of dynamic service sector activities, accelerating public sector expenditure, and a tightly constrained labour market.</p>



<p>A rigorous examination of the output, expenditure, and income approaches reveals the precise catalysts underpinning this economic momentum.</p>



<p>From the output perspective, Gross Value Added (GVA) expanded robustly by 5% in volume terms in Q2 2026. Service activities served as the primary engine of this expansion, contributing a commanding 4.3 to 4.7 percentage points to overall volume GVA growth.</p>



<p>Leading the sectoral performance was the financial and insurance activities sector, which registered a stellar volume growth rate of 12.2%. This was closely complemented by the information and communication sector, recording double-digit momentum with a 9.2% volume expansion driven by ongoing digitalisation and the scaling of digital services. Professional, scientific, and technical activities also maintained solid upward momentum, registering a 7.5% volume growth rate that reflects robust legal, engineering, and business consultancy operations. Conversely, industry (NACE Sections B to F) contributed a modest 0.3 percentage points to volume growth, while agriculture and fishing maintained a neutral impact.</p>



<p>An expenditure-side analysis underscores that domestic demand was the central pillar of economic growth, contributing 5.3 percentage points to the year-on-year volume GDP expansion. Final consumption expenditure witnessed an impressive overall increase of 6.7% in volume terms.</p>



<p>While private household consumption contributed a steady 1.7 percentage points (reflecting a 3.5% volume increase), general government final consumption expenditure emerged as the preeminent catalyst for domestic expansion. Government consumption surged by an extraordinary 14.7% in volume terms, contributing 2.5 percentage points to overall volume GDP growth. This intense public sector expenditure effectively counterbalanced external headwinds, offsetting a negative contribution of -0.7 percentage points from net external demand where import growth outpaced exports. Gross fixed capital formation added a further 5.1% increase in volume terms, providing balanced support to domestic formation.</p>



<p>The €417.1 million nominal increase in Q2 2026 GDP was distributed across factor incomes in a manner that highlights a distinctly labour-driven and wage-led trajectory. Compensation of employees (wages) rose by €253.8 million, moving from €2,628.5 million to reach €2,882.3 million, thereby capturing 60.84% of total nominal growth and contributing 4.1 percentage points.</p>



<p>Meanwhile, gross operating surplus and mixed income (corporate profits) rose by €136.6 million, increasing from €3,059.8 million to €3,196.4 million, which captured 32.75% of growth and contributing 2.2 percentage points. Net taxes on production and imports accounted for the remaining €26.7 million increase, contributing 0.4 percentage points. Aggregating these dynamics across the first half (H1) of 2026, cumulative nominal GDP reached €12.72 billion – a 6.88% increase over H1 2025 – with employees capturing over 63% of total nominal income growth.</p>



<p>While Malta’s macroeconomic indicators reflect undeniable headline resilience and healthy nominal expansion, a deeper strategic appraisal reveals significant structural vulnerabilities and long-term sustainability risks.</p>



<p>The primary issue lies in the economy&#8217;s heavy reliance on public sector stimulus. With general government consumption surging by 14.7% in volume terms and driving domestic demand, the public sector is currently acting as the main economic anchor. Building upon the expansionary fiscal habits observed in prior years, debt-financed or expenditure-driven public stimuli introduce acute fiscal risks if recurrent public spending persistently outpaces structural productivity gains.</p>



<p>Furthermore, the distinctly wage-led nature of the expansion – where over 63% of total nominal income growth during H1 was channeled into employee compensation – creates a delicate balancing act. Although tight labour markets are successfully rewarding workers, nominal wage increases risk fueling persistent pressures which unless matched by commensurate gains in labour productivity and advanced technological automation, will erode Malta’s competitiveness. For Malta’s growth trajectory to remain viable over the long-term, future expansion must pivot from being predominantly public-expenditure and wage-reliant toward sustainable, productivity-driven private sector innovation.</p>



<p>To put Malta&#8217;s economic trajectory into proper perspective, the economy can be viewed as an interconnected chain where every component is linked – from public spending and labour compensation to infrastructure and private enterprise. Because these elements are interdependent, the current reliance on debt-financed public consumption and wage-led growth without matching productivity gains places undue stress on Malta&#8217;s physical infrastructure and long-term fiscal stability. Moving forward, sustainable growth requires a structural shift where investments are purposefully diverted toward total factor productivity gains and technological advancement, ensuring that economic expansion reinforces infrastructure resilience rather than overstraining it.</p><p>The post <a href="https://maltabusinessweekly.com/what-is-fuelling-maltas-economic-growth/30804/">What is fuelling Malta’s economic growth?</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
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		<title>Employers push back on twice-yearly COLA, agree basket may need review</title>
		<link>https://maltabusinessweekly.com/employers-push-back-on-twice-yearly-cola-agree-basket-may-need-review/30796/</link>
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		<dc:creator><![CDATA[Semira Abbas Shalan]]></dc:creator>
		<pubDate>Fri, 04 Sep 2026 10:24:34 +0000</pubDate>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Featured]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30796</guid>

					<description><![CDATA[<p>Employer bodies have rejected a proposal by General Workers’ Union Secretary General Kevin Camilleri to introduce twice-yearly cost-of-living adjustments, warning that more frequent payments would make business costs harder to predict and could fuel further price increases. The Malta Chamber of Commerce, Enterprise and Industry, the Malta Employers’ Association (MEA) and the Malta Hotels and [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/employers-push-back-on-twice-yearly-cola-agree-basket-may-need-review/30796/">Employers push back on twice-yearly COLA, agree basket may need review</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Employer bodies have rejected a proposal by General Workers’ Union Secretary General Kevin Camilleri to introduce twice-yearly cost-of-living adjustments, warning that more frequent payments would make business costs harder to predict and could fuel further price increases.</p>



<p>The Malta Chamber of Commerce, Enterprise and Industry, the Malta Employers’ Association (MEA) and the Malta Hotels and Restaurants Association (MHRA) all opposed the proposal, although there was greater openness among the three organisations to another element of Camilleri’s argument: whether the basket used to calculate COLA still accurately reflects what households spend money on today.</p>



<p>Camilleri had proposed in an interview with The Malta Independent that COLA should be adjusted every six months rather than annually, arguing that the mechanism needed to respond more quickly to rising living costs and the financial pressures facing workers. He also questioned whether the basket underpinning the calculation adequately captures modern household expenses, pointing to sharply higher rental costs and the growing importance of services such as mobile phones and internet subscriptions.</p>



<p>The employer organisations, however, said the annual system provides businesses with an important degree of certainty.</p>



<p>MEA Director General Kevin Borg said the association was not in favour of an interim COLA payment because it would introduce additional uncertainty into companies’ annual budgeting.</p>



<p>He also pointed to practical difficulties in operating a system in which the adjustment could change during the year.</p>



<p>If COLA for the first six months were based on the previous September’s Retail Price Index, while the second payment was calculated using March data, higher inflation would automatically result in a larger second payment.</p>



<p>But a fall in inflation could create a different problem, Borg said.</p>



<p>A lower COLA for the second semester could require a downward adjustment to salaries in which the COLA had already been incorporated, something he described as “not ideal”.</p>



<p>The Chamber took an even stronger position, arguing that while the GWU proposal was intended to provide workers with more immediate relief during periods of high inflation, doubling the frequency of adjustments would be “economically counterproductive”.</p>



<p>It said employers plan their budgets, pricing and financial forecasts over a 12-month cycle, particularly SMEs operating on relatively narrow margins.</p>



<p>Moving to twice-yearly adjustments, it argued, would create unpredictable mid-year increases in labour costs.</p>



<p>The Chamber also warned that without corresponding increases in productivity, higher mandatory wage costs could feed directly into prices.</p>



<p>Businesses in retail, services and hospitality could be forced to raise prices to absorb increased labour costs, creating what the Chamber described as a wage-price spiral that could ultimately erode the purchasing power gains COLA was intended to provide.</p>



<p>It stressed that COLA was designed as a statutory macro-economic stabilisation mechanism rather than a real-time inflation tracker or a replacement for wage growth resulting from improved skills and productivity.</p>



<p>MHRA President Tony Zahra similarly defended the annual system, arguing that one of its major strengths was the certainty it provided businesses.</p>



<p>COLA had allowed companies to enter into contracts lasting more than a year knowing that wages would not fluctuate every few months, he said.</p>



<p>A move to twice-yearly adjustments would undermine that advantage by making it more difficult for businesses to project their costs.</p>



<p>For Zahra, the predictability offered by the current system has been an important part of Malta’s economic model.</p>



<p>There is, however, more common ground between the employer organisations when it comes to the composition of the COLA basket.</p>



<p>Borg said the MEA supported maintaining an updated list of goods and services representing the spending patterns of a typical household.</p>



<p>Consumer habits change over time, he said, and this should be reflected in the statistical weightings used to measure inflation.</p>



<p>The association nevertheless stressed that mobile phone services and internet subscriptions already form part of the current basket.</p>



<p>Zahra was also open to revisiting the basket, saying the issue had been discussed over the years and that it might now be time to examine whether changes were warranted.</p>



<p>Any changes, however, should be agreed upon by government and all the social partners, he said.</p>



<p>The Chamber was more cautious, stressing that the Retail Price Index basket is based on empirical data collected through the National Statistics Office’s Household Budgetary Survey and reflects average spending patterns across the economy.</p>



<p>It specifically opposed the idea of incorporating private residential rental prices into a universal mandatory wage index.</p>



<p>Rental inflation, it argued, affects particular sections of the population differently and linking national wage increases to housing costs could create distortions without addressing the underlying problems in the property market.</p>



<p>The Chamber also warned that changing the weighting mechanism without rigorous statistical justification and agreement at the Malta Council for Economic and Social Development could undermine the tripartite consensus behind the current system.</p>



<p>The debate ultimately comes down to competing pressures.</p>



<p>For workers, the argument for more frequent COLA payments is straightforward: when prices rise rapidly, an annual adjustment can leave wages trailing behind the cost of living for months.</p>



<p>For employers, however, more frequent mandatory increases mean less certainty over labour costs and potentially greater difficulty in setting prices, signing contracts and competing internationally.</p>



<p>Borg stressed that COLA is ultimately paid by employers, rather than government, and that salary increases generated by COLA are not necessarily matched by productivity gains.</p>



<p>He warned that particularly large adjustments could prove extremely difficult for major employers serving export markets, where margins can be tight and businesses have limited control over the prices they charge.</p>



<p>The Chamber raised similar concerns for manufacturing, maritime and technology companies competing internationally. Unlike businesses operating solely in the domestic market, exporters cannot simply pass higher wage costs on to overseas customers.</p>



<p>It also warned that more frequent statutory increases could reduce the scope employers have to reward workers through performance-related salary increases, bonuses and career development.</p>



<p>The MEA has proposed a different way of reforming COLA. Rather than moving to twice-yearly payments, it has previously suggested introducing minimum and maximum annual increases.</p>



<p>One possible model would set the annual adjustment within a range of between €2 and €6 per week. Every five years, the total COLA that should have been paid would then be compared with the amount actually paid, with any difference settled subsequently.</p>



<p>The proposal is intended to smooth out sharp fluctuations while ensuring that employees ultimately receive their full entitlement.</p>



<p>The Chamber believes, however, that the bigger issue facing Malta is not the mechanics of COLA but weak productivity growth.</p>



<p>It cited Eurostat figures showing that real labour productivity per person rose to 225.8 in Ireland and 130 in Denmark in 2025, compared with 103.6 in Malta. Malta’s figure had peaked at 109.6 in 2019 before falling during the pandemic.</p>



<p>The Chamber argued that wages cannot continue to rise sustainably without corresponding improvements in productivity and called for greater investment in digital transformation, automation and artificial intelligence, alongside worker upskilling.</p><p>The post <a href="https://maltabusinessweekly.com/employers-push-back-on-twice-yearly-cola-agree-basket-may-need-review/30796/">Employers push back on twice-yearly COLA, agree basket may need review</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
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		<title>EU funding helps KG Catering expand as government highlights €39 million SME investment</title>
		<link>https://maltabusinessweekly.com/eu-funding-helps-kg-catering-expand-as-government-highlights-e39-million-sme-investment/30792/</link>
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		<dc:creator><![CDATA[The Malta Business Weekly]]></dc:creator>
		<pubDate>Wed, 02 Sep 2026 11:39:57 +0000</pubDate>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Featured]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30792</guid>

					<description><![CDATA[<p>KG Catering Co. Ltd has invested in a new restaurant concept in St Julian&#8217;s after securing more than €128,000 in European Union funding, as the government renewed its call for businesses to make use of grant schemes aimed at improving competitiveness and digital transformation, the Ministry for European Funds said in a statement.&#160; The company [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/eu-funding-helps-kg-catering-expand-as-government-highlights-e39-million-sme-investment/30792/">EU funding helps KG Catering expand as government highlights €39 million SME investment</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>KG Catering Co. Ltd has invested in a new restaurant concept in St Julian&#8217;s after securing more than €128,000 in European Union funding, as the government renewed its call for businesses to make use of grant schemes aimed at improving competitiveness and digital transformation, the Ministry for European Funds said in a statement.&nbsp;</p>



<p>The company received the funding through the European Regional Development Fund (ERDF)-backed&nbsp;Business Enhance&nbsp;grant scheme, using the support to invest in professional catering equipment and modern refrigeration systems for its new operation.</p>



<p>The visit by Minister for European Funds, Social Dialogue and Consumer Protection Keith Azzopardi Tanti formed part of the government&#8217;s efforts to showcase projects supported through EU funds.</p>



<p>According to the ministry, the government has committed more than €39 million through over 680 grant agreements under various ERDF schemes designed to support small and medium-sized enterprises (SMEs). The funding covers investments including machinery and equipment, digitalisation, marketing consultancy, internationalisation, certification standards and business studies intended to strengthen competitiveness.</p>



<p>Speaking during the visit, Azzopardi Tanti described SMEs as the backbone of Malta&#8217;s economy, saying they play a vital role in creating jobs and driving economic activity. He said European funds provide businesses with an opportunity to expand operations, improve productivity and achieve long-term growth.</p>



<p>Rodrick Zerafa, chief executive of Servizzi Ewropej f&#8217;Malta, said KG Catering&#8217;s investment demonstrated how European funding can translate into tangible business improvements. He noted that the agency provides free support to businesses in Malta and Gozo by identifying suitable funding opportunities and assisting with the application process.</p>



<p>KG Catering representative Giuseppe Gravina said the company invested around €250,000 in modern kitchen and specialised equipment, with European funding helping make the project possible. He said the investment enabled the company to establish the restaurant with modern, efficient facilities.</p>



<p>The minister also highlighted the launch of the second call under the&nbsp;Digitalise your SME&nbsp;scheme, backed by a €15 million allocation. The programme includes increased funding thresholds for artificial intelligence projects, support for personnel costs through Simplified Cost Options and measures promoting the responsible adoption of AI.</p>



<p>Eligible projects may receive grants of up to €235,400, covering up to 50% of eligible investment costs in Malta and 60% in Gozo. Projects aligned with Malta&#8217;s Strategic Roadmap for the Digital Decade 2023-2030 may also qualify for an additional 10% top-up from the Malta Digital Innovation Authority, subject to available funds.</p>



<p>Concluding the visit, Azzopardi Tanti encouraged more businesses to apply for available funding, saying continued investment by local enterprises would contribute to strengthening Malta&#8217;s economy.</p><p>The post <a href="https://maltabusinessweekly.com/eu-funding-helps-kg-catering-expand-as-government-highlights-e39-million-sme-investment/30792/">EU funding helps KG Catering expand as government highlights €39 million SME investment</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
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		<title>Two companies bid to charter fourth ferry for Gozo Channel</title>
		<link>https://maltabusinessweekly.com/two-companies-bid-to-charter-fourth-ferry-for-gozo-channel/30789/</link>
					<comments>https://maltabusinessweekly.com/two-companies-bid-to-charter-fourth-ferry-for-gozo-channel/30789/#respond</comments>
		
		<dc:creator><![CDATA[The Malta Business Weekly]]></dc:creator>
		<pubDate>Wed, 02 Sep 2026 11:34:03 +0000</pubDate>
				<category><![CDATA[Featured]]></category>
		<category><![CDATA[Transport]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30789</guid>

					<description><![CDATA[<p>The Ministry for Gozo has announced that two companies, Caronte e Tourist S.p.a and Ragusa Xpress Ltd, submitted their bids following the closure of the call for tenders for a temporary fourth vessel. In a statement on Facebook, Camilleri said the evaluation process for these submissions will commence in the coming days and weeks. This [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/two-companies-bid-to-charter-fourth-ferry-for-gozo-channel/30789/">Two companies bid to charter fourth ferry for Gozo Channel</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>The Ministry for Gozo has announced that two companies, Caronte e Tourist S.p.a and Ragusa Xpress Ltd, submitted their bids following the closure of the call for tenders for a temporary fourth vessel.</p>



<p>In a statement on Facebook, Camilleri said the evaluation process for these submissions will commence in the coming days and weeks.</p>



<p>This charter arrangement serves as an interim measure until two new permanent vessels are purchased to join the existing fleet, aligning with the long-term strategy for the future of the Gozo crossing service.</p>



<p>The new fourth vessel will be replacing the Nikolaus, which has been chartered by Gozo Channel for several years but which has limited operations and has been the subject of so much criticism by passengers.</p><p>The post <a href="https://maltabusinessweekly.com/two-companies-bid-to-charter-fourth-ferry-for-gozo-channel/30789/">Two companies bid to charter fourth ferry for Gozo Channel</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
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		<title>Malta economy remains resilient as business conditions strengthen</title>
		<link>https://maltabusinessweekly.com/malta-economy-remains-resilient-as-business-conditions-strengthen/30778/</link>
					<comments>https://maltabusinessweekly.com/malta-economy-remains-resilient-as-business-conditions-strengthen/30778/#respond</comments>
		
		<dc:creator><![CDATA[The Malta Business Weekly]]></dc:creator>
		<pubDate>Mon, 31 Aug 2026 08:00:50 +0000</pubDate>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Featured]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30778</guid>

					<description><![CDATA[<p>Inflation edges higher, unemployment falls to 3.5% while tourism maintains strong momentum Economic activity in Malta remained broadly in line with its long-term average, with business conditions showing a modest improvement in July, according to the Central Bank of Malta’s latest Economic Update. The Bank’s Business Conditions Index pointed to a strengthening in conditions during [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/malta-economy-remains-resilient-as-business-conditions-strengthen/30778/">Malta economy remains resilient as business conditions strengthen</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p><strong><em>Inflation edges higher, unemployment falls to 3.5% while tourism maintains strong momentum</em></strong><strong><em></em></strong></p>



<p>Economic activity in Malta remained broadly in line with its long-term average, with business conditions showing a modest improvement in July, according to the Central Bank of Malta’s latest Economic Update.</p>



<p>The Bank’s Business Conditions Index pointed to a strengthening in conditions during July, although the indicator remained slightly below its historical average.</p>



<p>The latest data presents a mixed picture across different sectors of the economy. Retail activity continued to grow in June, but at a more moderate pace, while services production also recorded slower growth in May. Industrial production, meanwhile, declined in annual terms and continued to display a volatile pattern.</p>



<p>Tourism remained one of the stronger performers, maintaining its momentum in June.</p>



<p>Consumer confidence weakened in July, although sentiment remained well above its historical average. At the same time, unemployment expectations continued to point towards relatively low unemployment over the coming year.</p>



<p>The labour market also showed some improvement. Malta’s unemployment rate fell slightly to 3.5% in June from May, although it remained higher than the rate recorded a year earlier.</p>



<h3>&nbsp;</h3>



<h3>Property market remains strong</h3>



<p>Conditions in Malta’s property market remained robust, with both supply and demand continuing to show strength.</p>



<p>The number of residential and commercial development permits approved in July was lower than a year earlier, but increased compared with June. Similar movements were recorded in final deeds and promise-of-sale agreements, reflecting continued activity on the demand side of the market.</p>



<h3>&nbsp;</h3>



<h3>Inflation remains below euro area level</h3>



<p>Inflation increased marginally in July but remained significantly below the rate recorded across the euro area.</p>



<p>The Harmonised Index of Consumer Prices (HICP) rose to an annual rate of 2.1% in July, up from 2.0% in June. Core HICP inflation, which excludes food and energy, stood at 2.3%.</p>



<p>The Central Bank noted that both headline and core HICP inflation across the euro area were higher than Malta’s, largely because of higher energy inflation.</p>



<p>According to Malta’s Retail Price Index, inflation increased to 2.7% in July.</p>



<h3>&nbsp;</h3>



<h3>Government deficit narrows</h3>



<p>The government’s fiscal position also improved in June, with the Consolidated Fund recording a smaller deficit than a year earlier.</p>



<p>The Central Bank attributed the improvement primarily to stronger growth in government revenue.</p>



<p>Meanwhile, the annual rate of growth in deposits and credit held by Maltese residents increased compared with May, indicating stronger growth in both areas.</p>



<p>Overall, the August Economic Update points to an economy that continues to expand at a relatively steady pace, supported by strong tourism and property-market activity, while inflation remains comparatively contained. At the same time, slower growth in retail and services and continued volatility in industrial production highlight some of the uneven trends across the economy.</p><p>The post <a href="https://maltabusinessweekly.com/malta-economy-remains-resilient-as-business-conditions-strengthen/30778/">Malta economy remains resilient as business conditions strengthen</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
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		<title>WSC issues tender for the regeneration of the Gżira Pumping Station</title>
		<link>https://maltabusinessweekly.com/wsc-issues-tender-for-the-regeneration-of-the-gzira-pumping-station/30770/</link>
		
		<dc:creator><![CDATA[Andre Camilleri]]></dc:creator>
		<pubDate>Thu, 27 Aug 2026 08:53:00 +0000</pubDate>
				<category><![CDATA[Energy]]></category>
		<category><![CDATA[Featured]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30770</guid>

					<description><![CDATA[<p>The Water Services Corporation (WSC) said Thursday it has issued a call for tenders for the regeneration of the Gżira Pumping Station and its surrounding grounds. The works will be carried out in an environmentally friendly manner, preserving the site&#8217;s historical and architectural character while upgrading it for continued operational use, the corporation said in [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/wsc-issues-tender-for-the-regeneration-of-the-gzira-pumping-station/30770/">WSC issues tender for the regeneration of the Gżira Pumping Station</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>The Water Services Corporation (WSC) said Thursday it has issued a call for tenders for the regeneration of the Gżira Pumping Station and its surrounding grounds.</p>



<p>The works will be carried out in an environmentally friendly manner, preserving the site&#8217;s historical and architectural character while upgrading it for continued operational use, the corporation said in a statement.</p>



<p>The pumping station is a scheduled Grade 1 Neo-Gothic building, constructed around 130 years ago to serve as the sewage pumping station for the region, and is recognised as part of Malta&#8217;s industrial and architectural heritage.</p>



<p>The building will undergo restoration alongside interventions to improve the operational systems used by WSC, so that it retains its original utilitarian and infrastructural function.</p>



<p>The regeneration also extends to the surrounding site, which is currently underused. Plans include a public garden designed around the principle of biodiversity, part of the main building hosting the offices of the Gżira Local Council as an anchor for the local community, and the restoration of the site&#8217;s existing concrete water tower, one of the few of its kind still standing.</p>



<p>Rainwater management, harvesting and reuse are built into the garden design, reflecting WSC&#8217;s core water management function. The project is built on two pillars, operations and community, balancing the pumping station&#8217;s role in Malta&#8217;s water network with the creation of public space for residents.</p>



<p>The design has been developed by AP Valletta in collaboration with WSC. The pumping station is listed as a building of particular historical and architectural interest. The tender forms part of WSC&#8217;s National Investment Plan, which will see more than €400 million invested in Malta&#8217;s water infrastructure over the next decade.</p>



<p>&#8220;This project brings together the preservation of an important part of Malta&#8217;s industrial and architectural heritage with the continued operational use of the site, while also creating a new public space for the local community,&#8221; said Karl Cilia, CEO of the Water Services Corporation. The tender reflects WSC&#8217;s commitment to safeguarding sites of heritage value within its estate. More information on the Gżira Pumping Station project can be found here: www.wsc.com.mt/gziraps.</p><p>The post <a href="https://maltabusinessweekly.com/wsc-issues-tender-for-the-regeneration-of-the-gzira-pumping-station/30770/">WSC issues tender for the regeneration of the Gżira Pumping Station</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
		
		
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		<title>Malta’s electricity demand staying near peak levels for longer, Enemalta says</title>
		<link>https://maltabusinessweekly.com/maltas-electricity-demand-staying-near-peak-levels-for-longer-enemalta-says/30767/</link>
		
		<dc:creator><![CDATA[The Malta Business Weekly]]></dc:creator>
		<pubDate>Thu, 27 Aug 2026 08:50:15 +0000</pubDate>
				<category><![CDATA[Energy]]></category>
		<category><![CDATA[Featured]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30767</guid>

					<description><![CDATA[<p>Electricity demand in Malta has remained consistently high at between 680MW and 700MW over the past month, with consumption now staying close to peak levels for longer periods of the day than in previous summers, Enemalta said in a statement on Tuesday. The company said that while electricity demand in previous years typically peaked between [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/maltas-electricity-demand-staying-near-peak-levels-for-longer-enemalta-says/30767/">Malta’s electricity demand staying near peak levels for longer, Enemalta says</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Electricity demand in Malta has remained consistently high at between 680MW and 700MW over the past month, with consumption now staying close to peak levels for longer periods of the day than in previous summers, Enemalta said in a statement on Tuesday.</p>



<p>The company said that while electricity demand in previous years typically peaked between noon and 3pm, before rising again at around 7pm as people returned home from work, this summer has seen a marked change in consumption patterns.</p>



<p>Demand is now reaching high levels from around midday and remaining elevated until late in the evening, compared with previous summers when consumption tended to ease between 3pm and 7pm, the statement said.</p>



<p>The trend comes against a backdrop of sharply rising household electricity use.</p>



<p>Recent Eurostat data shows that electricity consumption by Maltese households increased by almost 66% between 2015 and 2024, the highest increase in the EU and well above the EU-wide rise of just over 3% during the same period.</p>



<p>In 2023, Malta recorded what was then an all-time peak electricity demand of 663MW. That record was surpassed last month when demand climbed to 741MW, almost 12% higher, it said.</p>



<p>With high temperatures continuing over the coming days, electricity demand is expected to remain elevated, Enemalta said.</p>



<p>The company encouraged customers, including commercial entities, to use electricity efficiently without compromising their comfort or health.</p>



<p>Enemalta said setting air-conditioning units at around 25°C provides effective cooling while avoiding unnecessary energy consumption.</p>



<p>It also advised consumers to keep doors and windows closed while using air-conditioning and to cool only the rooms that are actually being used.</p><p>The post <a href="https://maltabusinessweekly.com/maltas-electricity-demand-staying-near-peak-levels-for-longer-enemalta-says/30767/">Malta’s electricity demand staying near peak levels for longer, Enemalta says</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
		
		
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		<title>Minister Miriam Dalli asks MCESD for measures to address power cut crisis</title>
		<link>https://maltabusinessweekly.com/minister-miriam-dalli-asks-mcesd-for-measures-to-address-power-cut-crisis/30722/</link>
		
		<dc:creator><![CDATA[The Malta Business Weekly]]></dc:creator>
		<pubDate>Fri, 31 Jul 2026 11:10:47 +0000</pubDate>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Energy]]></category>
		<category><![CDATA[Featured]]></category>
		<guid isPermaLink="false">https://maltabusinessweekly.com/?p=30722</guid>

					<description><![CDATA[<p>Energy Minister Miriam Dalli has asked Malta&#8217;s social partners to propose measures to address electricity disruptions and manage consumption during periods of exceptionally high demand, following the power cuts experienced during the recent heatwave. Addressing the eighth meeting of the Malta Council for Economic and Social Development, Dalli said the government wanted input from employers, [&#8230;]</p>
<p>The post <a href="https://maltabusinessweekly.com/minister-miriam-dalli-asks-mcesd-for-measures-to-address-power-cut-crisis/30722/">Minister Miriam Dalli asks MCESD for measures to address power cut crisis</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></description>
										<content:encoded><![CDATA[<p>Energy Minister Miriam Dalli has asked Malta&#8217;s social partners to propose measures to address electricity disruptions and manage consumption during periods of exceptionally high demand, following the power cuts experienced during the recent heatwave.</p>



<p>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.</p>



<p>She said Engineer Abigail Cutajar had been tasked with meeting MCESD members to present the government&#8217;s proposals and discuss measures that could encourage responsible electricity consumption.</p>



<p>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.</p>



<p>&#8220;The fact that we do not burden people with high bills does not mean that we promote waste,&#8221; she said.</p>



<p>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.</p>



<p>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.</p>



<p>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.</p>



<p>Malta&#8217;s electricity demand reached 741 megawatts during the recent period of intense heat, substantially higher than the country&#8217;s average demand of around 450MW.</p>



<p>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.</p>



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



<p>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.</p>



<p>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.</p>



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



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



<p>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.</p>



<p>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.</p>



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



<p>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.</p>



<p>&#8220;We cannot dig up the whole country at once,&#8221; she said, adding that infrastructure works inevitably created inconvenience for residents and businesses.</p>



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



<p>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.</p>



<p>The minister said the government was also continuing to strengthen Malta&#8217;s electricity supply and generation capacity as demand increased.</p>



<p>She referred to Malta&#8217;s transition from heavy fuel oil to liquefied natural gas, the construction of the first electricity interconnector and ongoing work on the second interconnector.</p>



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



<p>Dalli said these investments were necessary to support Malta&#8217;s economic growth while ensuring that the country could continue meeting the electricity needs of residents and businesses.</p>



<p>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.</p>



<p>He said the meeting demonstrated the council&#8217;s importance in representing workers, businesses, civil society and the interests of Gozo.</p>



<p>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.</p>



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



<p>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.</p><p>The post <a href="https://maltabusinessweekly.com/minister-miriam-dalli-asks-mcesd-for-measures-to-address-power-cut-crisis/30722/">Minister Miriam Dalli asks MCESD for measures to address power cut crisis</a> first appeared on <a href="https://maltabusinessweekly.com">The Malta Business Weekly</a>.</p>]]></content:encoded>
					
		
		
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