The increase is immediate and substantial, the statement said. Effective 1 October 2026 revised “EU ETS + FuelEU + BAF Surcharge” rates have been introduced on the Malta to Genoa service. The rates will apply until 31 December 2026 and will then be reviewed quarterly.

“This is a burden that European Union policy is placing on all Maltese citizens simply because we are an island. It is an unfair burden that will have repercussions on businesses and ultimately, all Maltese consumers,” said Joseph Bugeja, ATTO Chairman .

All operators have started contacting their respective clients to inform them of the increased rates.

The surcharge for a trailer travelling from Genoa to Malta rises from €35 to €39 per linear metre, translating into €530.40 per trailer. The same €530.40 applies to the return journey from Malta to Genoa, meaning that every trailer making a Genoa-Malta-Genoa round trip will now incur €1,060.80 in these surcharges alone.

The €35 million annual figure has been calculated on over 55,000 trailers originating mainly from Genoa but also to and from other Italian ports each year. Based on the new €1,060.80 round-trip charge, this represents an annual cost of approximately €35 million.

“Virtually everything Malta imports to sustain its economy and economic activity must cross the sea. Unlike most countries on mainland Europe, Maltese businesses have no alternative. Malta must stand up and challenge a policy designed for Europe as a whole but imposed on an island economy without adequately considering our unique geographic disadvantage.”

“The annual €35 million is being presented as Malta’s environmental bill. Safeguarding the environment is important, but environmental policy cannot come at the price of disproportionately penalising an island that has no alternative to maritime transport. This is an additional cost being imposed on Malta’s entire supply chain and it will ultimately be paid by Maltese businesses, families and consumers.”

The post €35 million a year: The rising cost of shipping ro-ro trailers to and from Malta first appeared on The Malta Business Weekly.

More than a third of Maltese family business increased their turnover between 2022 and 2025 but reported lower profits, according to the Malt Chamber Family Business Survey of 2026, announced on Thursday.

Malta Chamber Vice President Silvan Mifsud presented these results at “Turning Growth into Profit: Structure, Governance & Digitalisation in Family Business,” an event organised as part of Malta SME Week 2026.

The chamber’s cross-tabulation report sets the financial performance of 154 respondents from 2022 to 2025 against their sector, size, governance arrangements, strategic plans and priorities. It found that 57 firms, or 37%, reported higher turnover but lower profits. An identical number, also 37%, reported higher turnover alongside higher profits.

Growth was almost universal. In all, 142 of the 154 firms (92%) reported rising turnover, while 28 reported stagnant results and only 12 recorded lower turnover, ten of them with lower profits as well. The report calls the largest problem group “profitless growth”. It argues that the post-pandemic years gave family firms the chance to expand their market footprint, but that scaling up “fractured legacy cost structures and diluted margins”. The pressure is felt most acutely, it says, by mid-sized firms and by companies in importation and distribution.

The report concludes that growth without formal governance is a high-risk strategy. It says the dividing line between firms that create long-term value and those experiencing profitless growth is the move from informal, family-led execution to structured corporate professionalism, and that the businesses turning higher turnover into lasting corporate wealth are those that build independent boards, map out written strategic plans and pair automation with clean organisational design. It groups family businesses into two camps: a high-performing group it calls “offensive optimisation”, which it says is typically backed by regularly reviewed written strategic plans, often clustered in services and found in the largest size brackets, and a squeezed mid-market it calls “defensive structural engineering”.

The sharpest contrast in the tables was between firms with and without a formal plan. Of the 65 businesses with a written strategic plan that is regularly reviewed, 27 (41.5%) reported higher turnover and higher profits, while 17 (26.2%) reported higher turnover but lower profits. Among the 77 firms, half of all respondents, that said they did not have a plan but needed one, 36 (46.8%) fell into the profitless growth category and 26 (33.8%) reported higher profits. A further 12 said they did not need a plan. The report says operating without a formal blueprint severely damages a firm’s ability to capture financial value while scaling.

Performance also varied by sector. Services fared best, with 23 of 52 firms (44.2%) reporting higher turnover and higher profits. In importation and distribution, the largest group with 56 firms, 23 (41.1%) reported higher turnover but lower profits, which the report attributes to “competitive and inflationary compression”. It says service-oriented businesses are better equipped to turn top-line growth into profit, and that asset-light structures make it easier for them to preserve margins. Of the 16 manufacturers, five reported higher turnover and higher profits and five reported profitless growth.

Firm size also mattered. The report identifies a “scaling canyon” among mid-sized firms, where overheads rise before efficiencies materialise. Across the 10-to-30 and 31-to-50 employee bands, 28 of 64 firms (44%) reported profitless growth, although the tables show the share was higher still, at 47.8% (11 of 23), among firms with 101 to 250 employees. At the top end, nine of the 15 firms (60%) with more than 250 employees reported higher turnover and higher profits, the highest proportion of any size band, followed by 13 of the 24 firms (54.2%) with fewer than ten employees. The report reads the largest firms’ results as evidence of structural resilience and economies of scale.

Having a board did not, on its own, appear to protect firms from margin pressure. Some 109 of the 154 respondents (71%) said they had a functioning board that meets regularly to discuss performance and future direction. Yet 44 of them (40.4%) reported higher turnover but lower profits, compared with 13 of the 45 firms without a board (28.9%). The report says a board does not automatically shield a business from margin contraction, and suggests that larger, more mature firms, which are more likely to have boards, face stronger headwinds such as inflation and rising operational costs.

The make-up of the board appeared to make a difference. Of the 109 firms with boards, 55 included independent non-executive directors who are not family members. These firms were more likely to report stagnant profits (14 of 55, or 25.5%) than those with family-only boards (six of 54, or 11.1%). They were also less likely to report higher turnover but lower profits, at 36.4% against 44.4%, although slightly less likely to report higher turnover and higher profits, at 32.7% against 37.0%. The report says independent directors “seem” to introduce a stabilising framework that acts as a buffer against severe profit decay.

Respondents were also asked to rate a series of priorities from one to five, and the report reads the answers as a “reactive governance pattern”. Of the 31 firms that gave the top rating to improving corporate governance and adding independent non-executive directors, 15 (48.4%) were in the profitless growth category.

So were 24 of the 59 firms (40.7%) that gave the top rating to regular, timely reporting of financial performance and key performance indicators, and 20 of the 47 (42.6%) that gave it to running the family business on more professional lines. Professionalisation drew ratings of four or five from 98 of the 152 firms that answered. The report concludes that firms facing eroding margins are prioritising governance reform, digital investment and restructuring in response to negative financial results.

Digital transformation to automate processes and increase efficiency drew more top ratings than any other priority, with 56 of 152 firms giving it a five. Of these, 23 (41.1%) reported higher turnover and higher profits and 21 (37.5%) profitless growth. The report says high performers use automation offensively to unlock scalability, while margin-squeezed firms use it defensively to offset wage and logistics costs.

Among the 33 firms that rated investing in digital solutions such as CRM and ERP systems, rather than employing many more people, at four out of five, 17 (51.5%) reported higher turnover and higher profits. At the top rating, 14 of 39 firms (35.9%) reported higher profits and 16 (41.0%) lower profits, which the report says could reflect initial capital outlays and organisational changes compressing short-term margins.

On artificial intelligence, 16 of the 38 firms (42.1%) that gave the top rating to exploring its use were in the profitless growth category, and the report calls AI an exploratory remedy rather than an active driver of returns. Improving internal organisational structure drew ratings of four or five from 100 of the 152 firms, with higher and lower profit growth almost evenly split at the top two ratings (36.5% to 37.5% against 35.4% to 40.4%).

The findings are based on 154 respondents, or 152 for some questions, and several categories contain only a handful of firms. The tables show associations between variables rather than establishing cause.

The post 37% of Maltese family firms saw margins shrink despite higher turnover, survey shows first appeared on The Malta Business Weekly.

This substantial investment by the Freeport involved the complete replacement and modernisation of the medium-voltage switchgear and extensive refurbishment of the substation building, with all works carefully planned and executed while maintaining uninterrupted operations across the terminal.

The new medium-voltage switchgear was installed alongside the existing equipment, enabling the transfer of electrical circuits in phases without disrupting power supply to the terminal.

The upgraded distribution centre also includes a fully refurbished building envelope, with new doors and apertures to ensure an airtight environment, together with new air-conditioning systems, fire detection and alarm systems, and CCTV installations.

The project features Medelec’s locally factory-assembled MSGair medium-voltage switchgear, designed and manufactured in Malta in accordance with the internationally recognised IEC 62271-200 standard. The equipment has undergone independent type testing at the Cesi laboratories in Milan, confirming compliance with stringent international performance and safety requirements.

The new switchgear provides Malta Freeport Terminals with significant operational advantages. Its modular design allows for future expansion as the terminal’s electrical infrastructure continues to evolve, while the additional bus arrangement and ringed circuit capability substantially improves operational flexibility and network resilience.

The system has also been designed with safety and ease of operation as key priorities. All normal switching operations can be carried out with compartment doors closed, enhancing operator protection, while the equipment can be controlled both locally and through the terminal’s Scada system, providing greater operational flexibility.

Alex Montebello, chief executive officer at Malta Freeport Terminals, said the project represented another important investment in the terminal’s critical infrastructure.

“The reliability of our electrical distribution network is fundamental to maintaining the high levels of operational performance expected by our customers, and this upgrade provides us with a more resilient, flexible and future-ready system while ensuring the highest standards of safety and operational efficiency.”

David Fenech, Commercial manager at Medelec, said: “We are grateful to MFT’s chief engineering officer James Peter Alsop and his engineering team for the confidence they placed in Medelec and for the excellent cooperation shown throughout every stage of this project. Our team is proud to have contributed to another important milestone in Malta Freeport Terminals’ continued development.”

The successful completion of the project further reinforces Malta Freeport Terminals’ ongoing investment programme aimed at strengthening operational resilience, supporting future growth and ensuring the terminal continues to operate to the highest international standards.

The post Malta Freeport Terminals and Medelec complete major upgrade of primary distribution substation first appeared on The Malta Business Weekly.

Through the renewed agreement, EY Malta will leverage its extensive expertise to provide consultancy services and support The Malta Chamber in the development of national policy positions and recommendations. This collaboration will focus on key areas addressed by The Malta Chamber’s Business Sections and Horizontal Thematic Committees, providing valuable expertise and insights to support the Chamber’s ongoing work in representing the interests of the private sector in national discussions. The renewed alliance builds on the longstanding relationship between the two organisations and their shared commitment to fostering a competitive, resilient and sustainable business environment. EY Malta has previously supported The Malta Chamber through its expertise in a range of areas relevant to Malta’s economic development and business community.

Commenting on the renewal, William Spiteri Bailey, President of The Malta Chamber, said: “We are pleased to renew our Gold Collaboration Alliance with EY Malta, strengthening a relationship that continues to bring significant value to The Malta Chamber and the wider business community. At a time when Malta is facing important economic and structural challenges, access to high-quality expertise and evidence-based insights is essential. EY Malta’s contribution will support our Business Sections and Horizontal Thematic Committees in developing well-informed policy positions and recommendations that reflect the realities and needs of businesses operating in Malta.”

Ronald Attard, Country Managing Partner at EY Malta, added: “This renewed collaboration reflects our shared commitment to Malta’s long-term competitiveness and resilience. By combining The Malta Chamber’s close understanding of the business community with EY Malta’s multidisciplinary expertise, we can help translate evidence-based insights into practical policy recommendations. We look forward to continuing to support the Chamber’s Business Sections and Horizontal Thematic Committees and to contributing constructively to Malta’s economic and policy discussions.”

The renewed collaboration will further facilitate the exchange of knowledge and expertise between EY Malta and The Malta Chamber, supporting the Chamber’s role as a leading voice for the private sector and its engagement in national economic and policy discussions.

The post The Malta Chamber and EY Malta renew Gold Collaboration Alliance first appeared on The Malta Business Weekly.

Set on the last remaining undeveloped beachfront parcel on this prime stretch of Grace Bay, the project is being led by Corinthia Real Estate Ventures (C-REV) – the Group’s real estate investment and development arm under Managing Partners Marcus Pisani and Alex Chazkel – and the completed resort will be managed by Corinthia Hotels.

The development will comprise a ultra-luxury Corinthia branded hotel and a limited collection of fully serviced branded residences, including beachfront villas, casitas, and condominiums.

Karen Cummings, a managing member of Carolina Partners Ltd, first visited Turks and Caicos more than 25 years ago and was overwhelmed by its natural beauty and the kindness of its people. Her vision for the opportunity led to the acquisition of the first parcel of land at that time and the acquisition of additional parcels over the next 25 years.

The site is the premier location on Grace Bay, which has been rated as the best and most beautiful beach in the world.  Karen’s dream was to bring something very special to Turks & Caicos to add to its unique beauty. After discussions with many potential partners, it was clear that Corinthia was the group that could fulfill that dream. Their culture, standards of design, and service are unmatched and their growing portfolio of luxury 5-Star hotels and residences throughout Europe, North America and the Middle East will bring something unique to Grace Bay. 

Simon Naudi, CEO of Corinthia Group, said, “The Cummings family has held an extraordinary piece of Grace Bay for more than 25 years and we are delighted to be partnering with them to realise its potential. This project is another important step in Corinthia’s international growth, bringing together exceptional real estate, aligned capital partners, and our development and hotel management expertise.”

Marcus Pisani, Managing Partner of Corinthia Real Estate Ventures, adds, “This partnership brings together the Cummings family’s deep connection to Turks & Caicos with C-REV’s development and investment capabilities. Grace Bay is a truly exceptional setting, and we look forward to creating a landmark project that reflects the quality of the site and the Corinthia brand.”

Alex Chazkel, Managing Partner of Corinthia Real Estate Ventures, said, “This is a rare opportunity to develop a world-class hotel and branded residential destination in one of the Caribbean’s most sought-after locations. We are excited to be working with the Cummings family and to be launching this as the first in a series of high-profile projects that C-REV is bringing forward in North America. This project will be added to our existing portfolio of hotel/residence properties in Europe, North America, and the Middle East. The portfolio is growing rapidly with recently opened or announced projects in Malta, Italy (Rome, Lake Como, Tuscany), Maldives, North America and the Middle East.”

The resort has been meticulously planned to maximise the value of its exceptional beachfront position while integrating architecture, landscape, and the natural coastal environment. In addition to the hotel and branded residences, amenities will include a spa and wellness centre, multiple swimming pools, a beach club, signature restaurants, retail, padel courts, and curated lifestyle experiences.

The architectural vision draws inspiration from the calm, shallow waters of the Caicos Banks, with an emphasis on understated design, natural ventilation, and a strong connection between indoor and outdoor living.

The project is proceeding towards formal planning approval, with construction currently expected to commence in 2027. The Turks & Caicos development marks C-REV’s entry into North America and represents a significant addition to Corinthia’s growing global portfolio of luxury hotels, resorts, and residences.

The post Corinthia partners with Carolina Partners Ltd. to develop ultra-luxury hotel and branded residences in Turks & Caicos first appeared on The Malta Business Weekly.

The findings form part of the Community Innovation Survey, which examined enterprises employing 10 or more persons during the three-year period.

The survey found that 1,356 enterprises, equivalent to 43.4% of those surveyed, engaged in some form of innovation activity.

Of these, 570 enterprises undertook both product and business process innovation, while 562 focused exclusively on business process innovation. A further 145 enterprises were engaged solely in product innovation, and 79 reported carrying out research and development (R&D) or other innovation activities.

Innovation expenditure excluding R&D accounted for the largest share of total spending, reaching €921.4 million, or 85.4% of overall expenditure. Intramural R&D expenditure amounted to €96 million, representing 8.9%.

Manufacturing businesses accounted for the majority of innovation expenditure, representing 66.6% of the total. Information and communication enterprises followed with 14.2%, while wholesale and retail trade, together with the repair of motor vehicles and motorcycles, accounted for 4.3%.

Despite the scale of investment, cooperation between innovative enterprises and other organisations remained relatively limited.

The NSO reported that 17.8% of innovative enterprises had at least one cooperation arrangement with another business or organisation. Among those enterprises, 52.3% cooperated with private business enterprises operating within the business sector.

The figures also showed that intellectual property protection was used by a minority of businesses. Some 373 enterprises or 11.9% of those surveyed, applied for an intellectual property right or licence.

Trademarks were the most common form of intellectual property application, with 237 enterprises applying for a trademark only. Meanwhile, 75 enterprises applied for more than one type of intellectual property right, while 34 relied exclusively on trade secrets.

The survey highlighted differing reasons why enterprises did not pursue further innovation.

Among innovative enterprises, 40.6% said they did not feel the need to introduce additional innovation activity. However, 23.5% identified a lack of resources as a factor limiting further innovation.

Among non-innovative enterprises, the majority, 80.2%, said innovation was not needed. A smaller proportion, 4.6%, cited a lack of resources as the reason for not undertaking innovation activities.

Access to funding also played a role in business innovation. The NSO found that 25.3% of innovative enterprises successfully obtained either equity or debt finance.

Of these enterprises, 33.8% indicated that they had partly or fully used the funds for research and development or other innovation activities.

Environmental considerations were also reflected in innovation activity. Nearly one-third, or 32.8%, of innovative enterprises introduced innovations aimed at reducing energy use or their carbon dioxide footprint.

A similar proportion, 31.4%, introduced innovations involving the recycling of waste, water or materials for their own use or for sale.

The survey further found that 37.7% of all enterprises formed part of an enterprise group.

Among these, 66.6% had their head office located in Malta. The remaining groups had headquarters in the European Union (15.5%), EFTA countries (1.2%), or elsewhere in the world (16.7%).

The post Malta’s businesses invest €1.1bn in innovation between 2022 and 2024 first appeared on The Malta Business Weekly.

The Office of the Prime Minister said in a statement on Wednesday that the government will present a Budget that continues to provide clear direction, courage, and confidence, while strengthening the sense of positivity and continuing to support an economy that is achieving positive results.

The Prime Minister, during a consultative meeting with representatives of the Chamber of Small and Medium-Sized Enterprises (SMEs), noted that discussions are currently underway regarding two key areas: the national budget for the coming year and the European Union’s Multiannual Financial Framework for the 2028-2034 period.

He stated that, despite international geopolitical challenges and rising energy prices abroad, the government will continue to provide necessary support in strategic sectors – such as energy – to ensure stable prices for families and businesses.

Abela emphasised that small and medium-sized enterprises are not only the backbone of the European Single Market but also a key pillar of the Maltese economy. Therefore, despite the turbulent international and geopolitical situation, the government will present a Budget that continues to provide clear direction, courage, and confidence, while reinforcing a sense of positivity and sustaining an economy that is achieving positive results.

He emphasised that an increasingly strong and competitive economy requires long-term planning – looking beyond today’s immediate needs – as well as decisions that strengthen sustainability and create the necessary incentives for sustainable growth. He maintained that just as this government provided essential support during difficult times, including the pandemic, it will continue to do so with even greater resolve in the future.

Abela highlighted the digital transition as pivotal for enterprises to continue growing and becoming increasingly innovative. He referred to various initiatives and schemes designed to encourage investment in digitalisation, automation, artificial intelligence, and research and development. He explained that these aim to help businesses boost productivity and strengthen their competitiveness, not only locally but also beyond our shores. He added that investment in technology must go hand in hand with investment in the workforce.

In fact, Abela noted that, to date, around 40,000 people have registered for the ‘AI for All’ initiative, while 23,000 have already successfully completed the training and are being provided with free AI software licenses.

He concluded by stating that, just as it did during the first 100 days, the government will continue to work with the same determination and pace to ensure that Budget 2027 marks another step towards increasingly robust enterprises and a high quality of life for the people of Malta and Gozo.

Representatives of the Chamber of SMEs presented the Prime Minister with a document containing a number of proposals based on five key pillars: investment and compliance; governance and fair competition; productivity driven by sound policies; energy and resources; and transport and mobility. They also referred to the decision announced during the ‘100 Days with You’ open Cabinet meeting regarding the reduction of tax on business transfers between family members, which will decrease from 5% to 1.5%. The representatives described this as a positive decision that will continue to support businesses in investing further and contributing to the growth of the Maltese economy.

The post Prime Minister meets with Chamber of SMEs ahead of 2027 Budget first appeared on The Malta Business Weekly.

In its 80-page Pre-Budget Document titled RESET and LEAD, the Chamber says an honest assessment shows that too many past recommendations have been “left unaddressed, delayed or stalled” and that incremental adjustments are no longer enough.

In his address, chamber president William Spiteri Bailey said that none of the issues raised were being aired for the first time, noting that the Chamber had repeatedly flagged them across successive budgets and governments. Acknowledging Malta’s shortcomings, he said, was not talking the country down but a necessary precondition for fixing what was not working.

He described the document’s call for reform as a national rather than partisan position, saying it belonged to neither the Labour nor the Nationalist parties but to Malta as a whole, and urged Government to move from complacency to accountability and from announcement to execution.

Chamber CEO Marthese Portelli was equally direct, calling it an uncomfortable reality that too many critical proposals had been unaddressed or stalled. The time for incremental adjustments, she said, had passed- Malta now needed reforms that initiate real structural change. 

The core diagnosis is stark: Malta’s economic expansion is running out of steam, the chamber noted. Between 2015 and 2025, Gross Value Added rose by 81.9%, but 68.9% of that growth came from simply adding more workers, 9.9% from sectoral shifts, and only 3.1% from actual productivity gains.

With participation already at 82.6% – well above the EU average of 75.7% – and 9,544 vacancies chasing just 1,236 registered unemployed at end-2025, the Chamber argues the labour tap cannot be turned further.

The Malta Fiscal Advisory Council calculation cited in the report illustrates the cost: to keep 4% GDP growth with productivity at historical levels, Malta would need 14,000 additional workers per year. With 3% productivity growth, that falls to 6,000. The mismatch is already hurting business, the chamber said.

Compensation per employee is set to rise 4.4% in 2026 while labour productivity grows just 0.1%, versus 1.0% EU average. For a second year, pay is outpacing output. R&D spending is 0.54% of GDP against 2.24% in the EU, STEM graduates are only 13.8% of post-secondary output, and 43% of firms lack green skills.

The fiscal picture, while headline-positive – deficit down to 2.2% of GDP in 2025 and debt at 46.4% – is also fragile, the Chamber warns. The improvement is driven by a record surge in income tax paid by firms registered in Malta but operating mostly overseas, which benefit from the refund system but still pay significant net tax. Meanwhile the debt-to-GDP ratio is being flattered by growth; the nominal debt stock continues to rise, and EU cohesion funding is set to shrink from 60% to 40% co-financing as Malta’s income converges.

“Malta cannot keep growing by adding people, vehicles and pressure on public infrastructure faster than it adds value,” the document states.

Budget 2027 must shift to “a country that grows through excellence, standards and innovation, not through volume alone.”

To do that, the Chamber splits its proposals into two timelines.

Section A: What must happen in Budget 2027 is established by the Chamber as needing an immediate, 12-month execution.

Funding, Investment and Taxation: A multi-year Transformation Fund for digitalisation, cyber resilience and skills; upfront cash payments of a percentage of approved grants to solve liquidity delays; publication of binding payout timelines; and safeguards to stop public entities crowding out private firms from EU funds.

On taxation, the chamber notes a two-speed system: foreign-controlled firms outperform local firms on productivity partly because the 6/7ths refund allows reinvestment, while domestic firms pay 35%, the highest in Europe. It proposes 100% venture capital tax credits for Malta-based investors in Maltese startups, and Retail Savings and Investment Accounts to channel private savings into local enterprise.

It also calls for the full €100m digitalisation allocation from 2026 to be carried over to 2027 and launched on January 1, not mid-year, with industry-specific NACE-based schemes.

Human Resources and Skills: The chamber made an early warning that the skills gap could create systemic unemployment. PISA results are cited: 453 in science (OECD 482), 439 in maths (OECD 463), 415 in reading (OECD 461), with reading down 31 points since 2022. 29.4% of 15-year-olds lack baseline proficiency in all three subjects; only 8.3% reach top tiers.

Technology: Malta is behind EU Digital Decade 2030 targets: 83.5% of SMEs have basic digital intensity (target 90%), 65.1% use cloud (target 75%), but only 21.5% adopt AI (target 75%) and 38.9% use data analytics (target 75%). Proposals include a national digital and AI readiness framework 2027-2031, a National AI Lab as a public-private partnership, mandatory fibre-ready and 5G small-cell provisions in new builds, a one-stop helpdesk for NIS2, AI Act and DSA compliance, and raising CYBER+ALT ceilings from €60k to €100k and Mind the Gap from €10k to €50k.

Infrastructure: On planning, the chamber proposes limiting planning circulars to technical clarifications only and introducing a strict no-benefit-from-illegality rule to end the “build first, sanction later” idea. There should be fiscal incentives for heritage restoration and adaptive reuse.

On mobility, there should be a fiscally neutral e-wallet funded by parking/congestion revenues to drive modal shift, prioritising public transport quality and capacity over more subsidies.

Longer-term ideas include smart parking systems, logistics consolidation hubs, and a dedicated budget line for the 45,000 sqm Hal Far International Logistics Hub.

On energy, the chamber is calling for the acceleration of grid modernisation, cable replacement, BESS integration, solar-as-a-service models including Corporate PPAs and ESCO models, renewable energy zones, and simplifying support for EV fleet and depot electrification including bidirectional V2G frameworks.

On water and waste, there is a need for upgrading sewage, storm water separation, and a phased pay-as-you-throw system plus mandatory construction waste classification, the chamber said.

The tourism industry should shift from volume to value-enhancement, moving away from low-margin, labour-heavy models that add congestion.

The Chamber called for automated AI-enabled monitoring to flag violations consistently, tackling market distortions caused by state inaction, enforcing FIAU AML rules proportionately, capping merger fees, implementing a “One-Time-Only” principle across government via a coordinated platform and the Malta Business Wallet, and a competitive aircraft leasing framework matching Irish standards to build an aviation finance hub.

To protect competitiveness, the Chamber wants bold State Aid notifications beyond block exemptions, citing recent approvals from €1bn in Slovakia to €23bn in Italy. It seeks an Emergency Funding Mechanism for CBAM verification costs, temporary support for ETS, FAF and BAF shipping cost increases in 2025-2027, and full transparency on ETS funds collected.

Section B: Reforms to complete by end of legislature

Here the tone shifts to governance and long-term transformation, which must be launched in 2027, the chamber said.

Planning & Construction: overhaul policies to prioritise quality and liveability.

Mobility: publish a plan with milestones beyond 2027, deploy TMROADS to all entities and the public; relocate on-road parking underground.

Energy: prepare for post-2035 liberalisation even if a derogation beyond 2027 is secured.

Waste: circular economy rules for construction and demolition waste with secondary markets.

Digital Transformation, Education, and Procurement get dedicated chapters. Education reform must be completed by end-2029 with a new National Curriculum mandating STEAM, digital and financial literacy from primary level.

Public procurement must be rebuilt around quality, not price-only: a fully resourced central authority, six-month rolling procurement outlook, a public Contract Register tracking milestones and variations, automatic price indexation, and supplier whitelisting/blacklisting.

On pensions, the Chamber proposes positive actuarial incentives to defer retirement while keeping the 42-year contribution requirement, and childcare credits to keep parents in work.

On governance – the final and most political section – the Chamber calls for full implementation of the European Commission Rule of Law Report 2026: a Register of Lobbyists and Transparency Register, independence of the national broadcaster, media safeguards, prohibition of government-linked second jobs for MPs, GRECO integrity frameworks, and political party finance reform.

It goes further, proposing an Independent Commission under the President by end-2027 to lead Electoral Reform: reducing districts from 13 to 5, cutting Parliament to 45 full-time MPs with competitive executive-level salaries, banning second jobs, providing research staff, and introducing a 5% national threshold for third parties instead of 16.7% in one district. It also wants a statutory cap on positions of trust with public disclosure of all compensation.

The post Malta Chamber urges radical changes in Pre-Budget 2027 document first appeared on The Malta Business Weekly.

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 number of proposals and objectives advanced by the Chamber in recent years are now reflected, wholly or partly, in the government’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.

The document identifies eight principal priorities for Budget 2027:

Regionality – 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.

Mġarr Harbour – finance the expansion and futureproofing of the harbour, aligned with future ferry-fleet requirements.

Logistics hub – move the government commitment from concept to implementation, with a defined location, functions, governance, financing and connection with Mġarr Harbour.

Innovation and enterprise – 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.

Rural airfield and air connectivity – provide a realistic annual capital allocation and commence implementation of the Gozo Rural Airfield project.

Financial and professional services – introduce a pilot regular MFSA presence in Gozo and develop a coordinated proposition for attracting substantive operations to Gozo.

Skills and talent – implement employee upskilling support, align training with Gozo’s economic priorities and develop the Youth4Entrepreneurship into a structured entrepreneurship platform for youth.

Existing businesses – extend transport assistance, strengthen direct support for digitalisation and productivity, and implement the proposed Valletta facility for Gozo-based enterprises.

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.

Implementation should also be underpinned by transparent decision-making, clear accountability, objective criteria and effective consultation. The inclusion of many of these measures in the present government’s manifesto, following proposals also put forward by the Chamber, makes their implementation a binding priority for the next legislature and provides a clear strategic direction for the way forward.

The post Mgarr Harbour expansion is necessary, Gozo Business Chamber says in pre-budget document first appeared on The Malta Business Weekly.

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.

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.

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.

Final deeds of sale by locality

The highest numbers of final deeds of sale were recorded in the following localities: St Paul’s Bay (91), Marsaskala (75) and Birkirkara (72). 

Properties transacted in the final deeds of sale

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.

Promise of sale agreements

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.

The highest numbers of promise of sale agreements were recorded in the following localities: St Paul’s Bay (110), Birkirkara (58) and Żabbar (49).

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