Malta possesses many of the ingredients needed to become a leading European business hub. The gap between its current position and its full potential lies not in geography, but in execution.

Singapore is one of the world’s most remarkable development stories. A small island nation of just 734 square kilometres – barely twice the size of Malta – with virtually no natural resources, it transformed itself into a global hub for finance, trade, technology and innovation. Today, its GDP per capita exceeds $100,000. Malta’s stands at roughly half that figure. The question worth asking is whether Malta could pursue a similar trajectory.

The comparison is instructive rather than exact. Singapore and Malta have different histories, geographies and political systems. Yet the parallels are compelling: both are small island states sitting at the crossroads of major trade routes; both rely on openness to international business; both have prospered by looking outward rather than inward. Singapore’s population of six million is nearly 10 times Malta’s 580,000 – yet both have demonstrated that size, when accompanied by strategic agility, can be a competitive advantage rather than a constraint.

Malta already possesses a strong starting position. English is widely spoken. The country operates within the European Union while maintaining a competitive tax framework. It enjoys political stability, a skilled international workforce and a strategic location linking Europe, North Africa and the Middle East. These are not trivial advantages. They are precisely the foundations on which Singapore built its success.

The execution gap

What distinguishes Singapore from its peers is not natural endowment – it has none – but the relentless quality of its delivery. Public services function efficiently. Infrastructure is maintained to a high standard. Regulatory processes are clear and predictable. Businesses can navigate administrative requirements without unnecessary friction. Investors notice these things. Entrepreneurs depend on them. International talent expects them.

Malta’s opportunity lies in closing what might be called the execution gap: the distance between its stated ambitions and the daily experience of doing business here. Road networks that remain congested, planning processes that lack transparency, digital government services that still fall short of best practice – none of these are insurmountable, but collectively they represent a drag on Malta’s competitiveness that no tax advantage can fully compensate for.

The prize for closing that gap is significant. According to the World Bank’s Doing Business indicators, the highest-ranked economies consistently attract greater volumes of foreign direct investment, command higher productivity and retain talent more effectively than their peers. Jurisdictions that combine competitive tax frameworks with efficient regulation do not merely attract more business – they attract better business.

Quality over quantity

The next phase of Malta’s economic development cannot rely simply on attracting more activity. It must focus on attracting higher-value activity. This shift is already underway in tourism, where policymakers are actively moving away from volume-based mass market strategies in favour of higher-spending visitors. The same logic applies across the economy.

The objective should be to deepen Malta’s position as a centre of excellence in financial services, technology, artificial intelligence, digital assets, advanced manufacturing, maritime services, professional services and international headquarters operations. Malta has established credible foundations in many of these sectors. The creative industries – including film production – represent a more recent addition to that portfolio. The task now is to build on these foundations with greater ambition and greater rigour.

To do so, Malta must continue strengthening its reputation for ease of doing business. Investors and corporations seek certainty above almost everything else. Efficient licensing, stable regulation, responsive public administration and a legal system capable of resolving commercial disputes quickly and fairly are not optional extras – they are the baseline expectation of any business destination that aspires to compete at the highest level.

Reputation as infrastructure

Singapore did not become a global business destination through tax incentives alone. It became one because businesses knew they could trust the environment in which they operated. That trust – built over decades through consistent, high-quality governance –functions as a form of infrastructure, as real and as valuable as any port or airport.

Malta has the opportunity to build the same kind of reputational infrastructure. The goal should not be to position Malta merely as a low-tax jurisdiction, but as a highly efficient one: a place where things work, where rules are clear, where commitments are honoured. That is a significantly more durable competitive advantage.

Personal security and quality of life are increasingly important factors in location decisions for both businesses and individuals. In an uncertain world, families, entrepreneurs and international professionals actively seek environments where they can build long-term futures with confidence. Malta can offer this. By investing further in public safety, urban regeneration, environmental quality and community infrastructure, the country can materially strengthen its appeal to the mobile international talent and capital it seeks to attract.

The case for long-term thinking

Achieving this level of ambition requires something that does not come easily in democratic systems: sustained commitment beyond individual electoral cycles. Infrastructure investment, regulatory reform, institutional capacity-building and reputation management are decade-long projects. They require political will that outlasts any single mandate.

This is not an insurmountable challenge. Many of the world’s most competitive small economies have achieved precisely this kind of continuity – through coalition-building, cross-party consensus, independent institutions or some combination of all three. Malta’s political culture will determine which mechanisms are most appropriate, but the need for long-term strategic coherence is not in question.

The global economy increasingly rewards countries that are nimble, efficient and internationally connected. Large nations often struggle to reform quickly. Small nations, if well-governed, can move with a speed and decisiveness that is simply unavailable to economies of continental scale. Malta has demonstrated this capacity for reinvention before – from maritime trade to financial services, from tourism to digital and creative industries. The next chapter of that story could be the most ambitious yet.

The question of will

No country can simply replicate another’s success. Singapore’s model emerged from a specific set of historical circumstances, political choices and cultural conditions. What Malta can adopt is not Singapore’s blueprint, but its animating principles: an unwavering commitment to competitiveness, a high standard of execution, and a clear-eyed understanding of what a small open economy must do to thrive in a demanding world.

The question, ultimately, is not whether Malta has the raw material to become a leading European business hub – it does. The question is whether it has the collective will to pursue that goal with the consistency and rigour it demands – investing in infrastructure, raising standards of public administration, strengthening institutions, and presenting to the world an image that reflects the quality of what Malta genuinely has to offer.

That ambition – a cleaner, safer, more efficient, more innovative Malta at the heart of the Mediterranean – is within reach. Closing the gap between aspiration and execution is the defining challenge of the next decade.

—

Key comparisons: Malta vs Singapore

Land area: Malta 316 km² | Singapore 734 km²

Population: Malta ~580,000 | Singapore ~6 million

GDP per capita: Malta ~$52,000 | Singapore ~$100,000+

Both: EU/Commonwealth-linked, English-speaking, island trading nations at strategic maritime crossroads.

Maria Darby-Walker is a non-executive director and executive coach and mentor

The post Could Malta become the Singapore of Europe? first appeared on The Malta Business Weekly.

APS Bank participated in a panel discussion entitled Regulatory Value Enablers in the Digital Frontier, held as part of Tech Law Seminar 2026 on Wednesday 6 May 2026. Discussions focused on how new European regulations are driving innovation across the financial services sector, helping organisations deliver simpler onboarding processes, stronger security measures and improved digital services.

Head of Development and Innovation Ronald Psaila represented APS Bank, sharing a banking perspective on developments in digital identity, customer onboarding and fraud prevention, and their potential to enhance the customer experience. He also discussed the practical challenges associated with upcoming regulatory requirements, particularly the Payment Services Regulation, highlighting the need for banks to complement customer education with timely interventions and safeguards that help prevent fraud.

APS Bank also participated in the Central Bank of Malta’s annual Forum for Financial Stability, held on Friday 19 June 2026 at Binja Laparelli. The Forum, entitled Financial Stability: Balancing Resilience and Complexity, provided a platform for discussion on emerging challenges and developments shaping financial stability in Malta.

Representing APS Bank, Chief Risk Officer Giovanni Bartolotta contributed to a panel discussion focusing on emerging risks brought about by digitalisation, including third-party risk and EU tech sovereignty.

Corporate Schemes Manager Mark Lamb was a guest speaker at the final Investment Masterclass of the year, hosted by financial coach Patrick Debattista on Saturday 27 June 2026 at the Salini Hotel. Supported by APS Bank, the event attracted its highest attendance to date and covered topics including money management, financial planning and investing. Mr Lamb’s session explored the role of pensions in long-term financial planning, highlighting their tax advantages and encouraging attendees to make them a key part of their financial future.

Through these engagements, APS Bank continues to share its expertise and contribute to conversations that support a more resilient, innovative and financially informed community.

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Deloitte’s 2026 Global Tax Policy Survey of 1,010 tax and finance leaders across 28 jurisdictions reveals that organisations are facing increased tax complexity, growing compliance burdens, and high upfront costs to reap the benefits of digitalisation. For Maltese businesses, these demands present an opportunity to assess and redesign their financial data and systems’ environment.

“Organisations are contending with a substantial increase in the demands placed on their finance functions,” says Conrad Cassar Torregiani, Deloitte Malta Tax leader. “The survey data shows that 84% of respondents expect more public tax disclosures and reporting in the next two to three years. For Maltese organisations, this compliance trigger should prompt a broader assessment: how can we use this as an opportunity to improve our data quality, implement AI tools, automate processes, and elevate our teams to higher-value work?”

Compliance as a catalyst for financial transformation

The survey identifies compliance and administrative requirements as the single biggest operational impact across all tax policy areas. Almost 40% of respondents cite the rising compliance burden as their primary concern and 84% of respondents anticipate increased public tax disclosures and reporting requirements over the next two to three years.

“The investment will need to be made, the approach will define whether the outcome is a cost or a benefit,” says Cassar Torregiani. “Leaders need to reframe compliance as a transformative opportunity, not as isolated projects, but as a catalyst to improve tax and finance data quality, to enable AI deployment, and identify automation opportunities. Organisations that take a more holistic approach will emerge with efficiencies and advantages that go beyond meeting reporting requirements.”

Eighty-eight per cent of respondents expect to pay more tax as a result of the Organisation for Economic Co-operation and Development’s (OECD) initiatives around ensuring the imposition of a global minimum tax for multinationals, suggesting that the initiative is achieving its intended policy objective. However, although there have been moves towards simplification, such as the introduction of new safe harbours, more is needed with 41% of respondents believing that further simplification of compliance should be a priority.

Mixed news on digitalisation

Most businesses expect to benefit from simpler, more efficient tax administration through digitalisation. Some, though, are experiencing challenges during the transition phase, citing increased costs and complexity – 85% of respondents expect AI-based tax compliance software to deliver positive impacts ranging from improved accuracy to reduced compliance costs, while 15% remain more negative, expecting the main impact to be increased implementation costs.

The key to realising these benefits is avoiding a narrow compliance-focused approach. Organisations that implement e-invoicing, data management systems, and AI tools as part of a coordinated financial transformation will see broader returns. These include improved data quality for strategic analysis, enhanced process automation across finance functions, and the ability to deploy AI tools for forecasting, risk analysis, and financial planning. Relieving finance function staff of repetitive manual work will also create an opportunity to elevate staff to higher-value strategic and analytical work.

E-invoicing presents a case study in this approach. Optimism about its simplification benefits has declined from 40% in 2025 to 36% in 2026, as concerns about implementation costs have increased. However, when integrated into a broader financial data transformation, where the improved data quality needed for e-invoicing data feeds into improved financial systems, analytics, and AI applications, the possible return on investment is elevated. The same holds true for Tax Administration 3.0, the OECD’s vision of seamless digital tax administration, which is expected to deliver positive outcomes by 80% of respondents. However, 19% expect increased costs and complexity during implementation.

Recognising these challenges, policymakers across the globe are pursuing simplification agendas. The European Commission is soon to release a tax omnibus package with the declared objective to streamline compliance and enhance competitiveness of the Single Market. The approach adopted in the omnibus will be closely watched, as it signals how policymakers in the EU intend to tackle concerns around the growing cost and complexity of tax compliance.

Tax incentives are key for the future

As global tax frameworks stabilise, tax incentives are emerging as a primary tool for jurisdictional competition. The survey shows that 57% of respondents note that governments are increasingly using tax incentives to attract foreign talent. The survey also shows that 38% of respondents expect new tax incentives to emerge as global minimum tax frameworks become established, while 57% expect existing incentives to remain valuable.

This trend is relevant for Malta, which has historically relied on tax incentives to provide genuine competitive advantage in attracting both investment and talent. In an environment where governments globally are increasing their use of incentives, Malta’s proposition must be continuously innovated to remain competitive in attracting and retaining high-value-add business activity.

“Tax incentives are increasingly shaping how jurisdictions compete for investment and talent,” says Cassar Torregiani. “Malta’s tax incentive framework can be a genuine competitive advantage. As governments globally increase their use of incentives to attract foreign talent and investment, Malta must continue to innovate to remain competitive.”

For more information visit www.deloitte.com/mt/gtps

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New findings presented at the Wellbeing at the Workplace national conference, jointly hosted by Malta Employers, misco and Atlas Insurance, highlight a labour market where wellbeing efforts are continuous and are increasingly shaped by how work is organised, with flexible working emerging as a key response that may support better mental and physical wellbeing, reduce burnout, improve work-life balance and give employees greater control over their schedules.

The research, presented by Lawrence Zammit, founding partner and director at misco, shows that 68% of employees rate their overall wellbeing as positive. However, this positive self-assessment sits alongside continued strain, with 83% reporting they have experienced work-related health or wellbeing difficulties at some point in their careers.

Among the main pressures identified were long working hours which are often necessitated by operational pressures due to lack of staff – 45% of interviewed employees claimed to work more than 40 hours per week and 13% said they exceeded 48 hours. Those working longer hours were more likely to report wellbeing difficulties, underlining the link between time pressure and sustained stress.

Against this backdrop, discussion at the conference focused on a shift in emphasis: from standalone wellbeing initiatives towards the structure and design of work itself. Flexibility, autonomy and hybrid working models are increasingly seen as central to addressing both employee expectations and organisational performance.

Kevin J Borg, director general of Malta Employers, said that: “Flexible work needs to be considered in the context of better mental and physical wellbeing. It can contribute to lower burnout, greater control over schedules, improved work-life balance, higher job satisfaction and lower stress,” he said.

He added that the benefits are also organisational. “Employers can also gain through reduced absenteeism, stronger employee engagement, greater loyalty and increased productivity, because employees are better able to manage personal and professional responsibilities effectively.”

Evidence suggests that many employers are already adapting where the nature of work permits. Additionally, the Malta Employers’ Association survey gathered recommendations from businesses and policymakers on regulating flexibility, drawing on their practical experience. The advice closely mirrors the stand of the association in favour of avoiding regulation and allowing the employer and employee to negotiate directly in accordance with their needs and realities. Companies also called for focus on improved support infrastructure for parents and carers rather than mandating arrangements.

Jackie Attard Montalto, chief HR officer at Atlas highlighted the importance of ensuring HR approaches are grounded in operational reality, with greater involvement of managers in shaping and testing workplace initiatives. She stressed the need for stronger feedback loops so organisations can better understand what is working in practice and adjust accordingly.

Malta Employers president Ivan Refalo added that leadership and communication are central to making flexible models effective, particularly in organisations operating under resource constraints. He emphasised shared responsibility and the need for clarity in expectations, noting that two-way communication is essential for building trust and ensuring flexibility works in practice, supported by appropriate training and guidance.

The event themed, Wellbeing at the workplace – Turning research into practical action, focused on physical and mental health and featured talks covering all aspects of wellbeing at the place of work including flexible and hybrid work practices; managing workload boundaries and burnout; leadership behaviour and workplace culture; mental health support; healthy lifestyles and nutrition, financial wellbeing and awareness; and supporting diverse workforce needs. The event featured a number of panel and roundtable discussions during which a number of industry leaders, both local and foreign, shared their views and insights, highlighting how the consideration of wellbeing is no longer a peripheral workplace feature but should form an integral part of employers’ practical workforce strategy.

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Over recent years, Malta has demonstrated a highly favourable shift in its fiscal metrics, characterised by declining general government deficit ratios, which are officially projected to reach 1.6% of gross domestic product in 2026. This significant fiscal consolidation marks a positive departure from the fiscal strains of previous years, allowing Malta to achieve an early exit from the European Council’s Excessive Deficit Procedure.

Alongside this improving deficit ratio, Malta’s public debt dynamics have remained strong and sustainable, with the debt-to-GDP ratio stabilising at 46.4% in 2025 and projected to decrease further to 45.8% in 2026. This performance stands in sharp, favourable contrast to the broader Euro area averages, where national deficits regularly exceed the 3% reference value and public debt levels hover near 90% of gross domestic product. Malta’s improving debt-to-GDP ratio is primarily underpinned by two simultaneous economic forces: a strong expansion in total tax revenue and substantial denominator growth driven by resilient nominal economic activity.

However, beneath these highly favourable headline statistics, the Malta Fiscal Advisory Council’s report raises crucial long-term analytical warnings regarding the sustainability and structural composition of Malta’s public finances. Over the past two decades, Malta’s fiscal revenue architecture has undergone a profound structural shift, becoming increasingly and disproportionately reliant on current taxes on income and wealth. This specific category of direct taxation, which incorporates both personal and corporate income tax streams, has rapidly climbed from representing approximately 25% of total fiscal revenue in the year 2000 to over 43% across the 2024 and 2025 periods. From an international comparative perspective, Malta now ranks among the economies with the absolute highest concentration of revenue derived from direct taxes, significantly exceeding both the European Union 27 average of 28%t and the Euro area average of 27%. This unique revenue concentration exposes public accounts to acute cyclical and structural vulnerabilities, as the State’s fiscal balance sheet has become heavily exposed to highly mobile, volatile, and internationally dependent economic variables.

Crucially, a granular examination reveals that this remarkable revenue outperformance is heavily driven by a marked surge in corporate income tax receipts, which accounted for approximately 41.7% of total current taxes on income and wealth by 2024. It is highly likely that this massive increase in corporate tax yields is heavily driven by international tax units and foreign-owned companies operating within Malta’s jurisdiction, attracted by the country’s highly competitive and favourable corporate tax framework. This influx of corporate tax windfall revenue has served as the primary financial catalyst enabling the government to fund, sustain, and continuously expand its public sector expenditure. Rather than executing expenditure restraint or strict cost-control measures, the public administration has utilised these abundant foreign corporate cash inflows to support an ever-increasing baseline of permanent recurrent public expenditure. This expanded government spending has, in turn, stimulated broad-based domestic demand, funded widespread public employment expansions, and increased local economic activity. This elevated level of public sector activity and direct spending has naturally exerted a strong upward knock-on effect on the domestic labour market, resulting in substantial wage growth and heightened employment rates that have directly generated an indirect increase in personal income tax collections as well. Consequently, Malta’s overall fiscal equilibrium has established a self-reinforcing, upward loop where foreign corporate windfalls fund expanded domestic public spending, which subsequently boosts local personal income tax yields and also boost economic growth.

Table 1: Consolidated Fund Performance Summary (January-May)

When tracking the cumulative performance of the Consolidated Fund for the period from January to May 2024, 2025 and 2026, one sees that the actual cash figures validate these deep structural observations, showing that total recurrent revenue expanded by a remarkable 17.2% in 2026 to reach over €3.52 billion during the first five months of 2026, compared with the same period in 2025. In perfect alignment with the revenue concentration thesis, more than half of this entire year-on-year revenue growth stemmed directly from a massive 21.7% surge in income tax collections, which provided an additional €261.4 million to the treasury. Simultaneously, however, expenditure pressures have accelerated at an equal pace, with total expenditure climbing by 17.4% to reach €3.70 billion, driven by a 13.1% rise in recurrent outlays and a massive 75.4% surge in capital expenditure related to energy infrastructure and EU fund absorption. Because this expenditure growth slightly outstripped even the buoyant revenue collections, the cash-based Consolidated Fund deficit widened by 21.9% to reach €177.9 million by May, while total central government debt rose to €11.84 billion. This operational reality illustrates that the ongoing fiscal regime remains entirely tethered to high revenue buoyancy to sustain its structural expansions.

Table 2: Central Government Debt Trajectory

Ultimately, when evaluated from a long-term strategic and risk-management perspective, anchoring the permanent structural solvency of the Maltese state to this specific fiscal arrangement introduces profound vulnerabilities. Expecting that Malta’s favourable corporate income tax regime for foreign-owned companies will remain unchanged and fully operational on a perpetual basis, constitutes an extraordinarily risky and unsustainable assumption for medium-term or longer term planning. Should external political and regulatory transformations or competitive pressures disrupt these international corporate income tax inflows, the financial foundation supporting Malta’s elevated public recurrent expenditure baseline could contract rapidly, leaving permanent spending commitments unmatched by local revenue streams and triggering severe structural imbalances in public accounts.

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What is happening in Europe, especially in Spain, France and Germany, is abnormal. The record breaking temperatures registered in June – with France experiencing consecutive days above 40°C, Spain registering unprecedented night time heat, and Germany facing severe heat stress alerts – offered a different perspective, especially for those working in this sector. These events are not isolated. They are part of a pattern that climate scientists have been warning about for years. In my work on the prudential side of banking and ESG, I integrate climate change and environmental risks into banks’ Risk Management Frameworks and calculate the Probability of Default and Loss Given Default for every client and sector, accounting for physical and transition risks, using various climate stress testing models and scenarios.

When I started working in this area about five years ago, the political push at EU level was visible and tangible. Locally, we were still seen as aliens. However, the Green Deal was sealed a few years earlier, while the other side of the Atlantic was helpful in transitioning to greener practices, and we had solid engagement with other continents to raise awareness about climate change. Back then, the EU was legislating on reporting requirements, encompassing the CSRD, the SFDR, the Taxonomy Regulation and the CSDDD. After the Draghi Report, the new European Commission, and the re election of President Trump, the EU began revising the reporting requirements for companies and reducing political pressure in this sphere. The results are visible and speak for themselves.

The EU was not prepared to handle many reporting requirements, especially for companies within the EU. The idea was brilliant. However, after the pandemic, the ongoing war in Ukraine and other energy and geopolitical shocks have reduced the political importance of such climate reporting amid increased pressure on private-sector finances. If it were not for the European Central Bank, which pushed for the prudential side of banking, we wouldn’t be discussing such an important topic at EU level. The impact of climate change and the way we need to transition is not simple. We cannot deal with multiple shocks while simultaneously transitioning to green practices. If the current MFF does not provide for this, it will not be possible. If we do not ring fence money in this area, it will be quite difficult. True, we need to build our own defence systems, and upgrade as necessary. However, money allocated to climate defence and company subsidies is crucial to this transition.

We can keep on discussing how to decarbonise Europe. But Europe cannot have two competing topics, considered outliers, leaving economic operators and families on their own. Becoming greener and upgrading our defence and infrastructure to military-grade practices are two competing topics. We need to prioritise climate defence infrastructure and ring-fence funds for it, perhaps alongside military-grade infrastructure when allocating funds. The allocation of funds must be proportionate and assigned in an integrated approach.

When we talk about climate defence, I mean that, beyond the defence priorities on the current EU list, our infrastructure must be climate resilient, not just military proof. What do I mean by this? We need to provide highly urbanised areas with proper water defence systems to protect against flash floods and other climate events. We also need to make our surrounding blocks greener, which I tie as an integrated approach to mental health mitigation. The concept of living in a city without adequate green spaces between blocks exerts excessive pressure not only on our ecosystems but also on our mental well being. We need to mitigate the risk to banks’ collateral by upgrading our infrastructure to climate defence structures. Technology plays an important role in aiding us to achieve such systems, and funding should support that work.

I know many of you might say it’s because I work in the banking industry. However, I am now in politics. Perhaps writing about this topic once again might increase its visibility. Mitigating risks reduces insurance risk premia and enables a better assessment of our collateral against climate-related physical risks. We are all in it. We all need to pull the same rope together to achieve a better Malta, a better Europe and a better world. This concerns not just politicians, but everyone involved in growing our economy, from services to manufacturing to all those who make a profit. We all have a role to play in making this happen.

To close, sincere condolences to the families in France, Spain and Germany. It was truly disturbing to watch and read what happened.

The post Rethinking our global policies to mitigate climate risk events first appeared on The Malta Business Weekly.

As from May, the European Commission suspended business survey results for Malta (and Estonia), due to changes in partner institutes. Consequently, the Economic Sentiment Indicator, the Employment Expectations Indicator and the Economic Uncertainty Indicator are not available. However, the consumer sentiment indicator remains available, and it improved significantly in May.

Overall, conditions in the property market remain strong. In May, approved commercial permits increased compared with a year earlier. On the demand side, both the number of residential promise-of-sale agreements and the number of final deeds of sale decreased in May, compared with a year earlier.

In May, unemployment expectations, as published by the European Commission, rose to stand above their historical average. The unemployment rate increased slightly to 3.6% in April, and stood above the previous month’s rate and the rate recorded in the same month a year earlier.

Malta’s inflation rate declined in May and stood well below that in the euro area. The annual inflation rate based on the Harmonised Index of Consumer Prices (HICP) declined to 2.1% in May, while HICP inflation excluding food and energy fell marginally to 2.3%. Across the euro area, HICP inflation was higher than that in Malta due to the increase in energy inflation in the euro area. In May, inflation based on the Retail Price Index (RPI) decreased.

In April, the Consolidated Fund reported a surplus compared with a deficit recorded a year earlier, due to an increase in government revenue which outweighed an increase in government expenditure.

The annual rate of change of Maltese residents’ deposits decelerated when compared with March, while annual credit growth was unchanged.

The full ‘Economic Update’ is available on www.centralbankmalta.org/economic-update

The post Business conditions remain above their long-term average – Central Bank of Malta first appeared on The Malta Business Weekly.

Mr President, thank you. Since this is my first time addressing the House, I wish to join my colleagues in congratulating you on your appointment. Certainly, I extend my best wishes and take this opportunity to thank the electorate and personally thank the people of the second and ninth districts, where I contested and was also elected in a casual election.

Mr President, although I once viewed the highest institution of our country from the outside, today I have the privilege of serving the people from within. For this reason, I wish to speak briefly about some topics touched on last Saturday by H. E. the President of Malta, including the economy. When we speak about the economy, we must understand not only the mathematical principles behind it but also the philosophical foundations that shape it. The economy is complex, but we cannot ignore the basics. It is dynamic, not static. We cannot wake up, imagine something, and state it in a context that makes no sense. When I hear colleagues speak about a better quality of life, we must provide context. A better quality of life depends on generating wealth, and wealth comes from economic growth. It is an illusion to claim otherwise. This is simple to understand. If a family works harder year after year to increase its wealth, it does so to improve its economic situation and that of its children. Why? Because if their children ask for help, they can give it. The same applies to the economy. You cannot help your children if you do not generate wealth. The same applies when giving back to the people.

Mr President, let me give some context. When the Labour Party took the helm in 2013, the economic trajectory was very different. The economy stood at €7 billion; today, it is valued at more than €23 billion, having tripled. At that time, we discussed different priorities because the economic context was different. In 2013, we could not speak about the priorities we discuss today. Several families and businesses did not have enough liquidity to cover their electricity and water bills. That is in the past now, and the people want to look forward. Yet it is our duty to present the full picture, not half of it, if we truly want to improve on what has been done. Referring to what H. E. the President said, we all agree the environment must be given priority. The environment is an integral part of social justice. You cannot achieve social justice if you do not respect the environment around us. My work today as an economist is to integrate climate, environmental, social, and governance risks into the banking and financial industry. When I look at the Labour Party’s Int Malta manifesto, I see that the priorities we discuss – those that matter to the people – are written there in consolidated proposals.

In 2013, we needed to accelerate economic growth to exit the excessive deficit procedure and sustain our economic sovereignty. The European Commission could revoke all our economic and fiscal freedoms by rejecting our national budget if the fiscal situation were weak. The context was different then because the economic situation did not allow what we do today. It is good that today we speak about what we want, sometimes with a full list, even an à la carte menu. But back then, we discussed how people would cope with energy price instability being passed onto them. As politicians, we must be responsible. What we say must respect people and provide a proper context.

Let me speak briefly about the environment. The environment is borrowed from future generations. We cannot continue treating it in isolation. I accepted the invitation to contest the election with the Labour Party because the Int Malta manifesto addresses the environment, social policy, and governance in a holistic, integrated, and balanced way. The ambitious Well-Being Index will give a different dimension of measurement, not to diminish the importance of economic growth, but to complement it. This index, for the first time, binds a governing party to greater scrutiny. One of the ten dimensions – the second – is the quality of the local environment. We must protect what shapes our culture, natural capital, and identity. Moreover, as politicians, we must be empathetic to people’s needs and protect the sense of community that complements our well-being. The Labour Party in government has delivered much on the social front in recent years. Social policy is close to my heart, and we must treat it in an integrated way alongside the environment, not in isolation. We can do this because we have generated wealth over the years.

I welcome H. E. the President’s remarks on affordable housing. It is a theme I have campaigned on for the past four years. I am pleased this important theme now features prominently in the Int Malta manifesto as a support measure, complemented by the Well-Being Index under Dimension 5. We must never stop addressing this theme. We must also ensure any anomalies are corrected and push harder to balance housing market speculation by accelerating the supply of affordable accommodation. Mr President, I come from a generation that had to work hard to go farther in life. We lived without technology and went through a full transition. That transition brought improvements in how we live and greater efficiency. But every efficiency we try to maximise works against us in the sense that the more we want, the more we lose the sense of community we were raised in, not because we want to, but because we accelerate the pace of life.

In economics, we call this the J-Curve Paradox or, in simpler terms, human nature wanting more. We cannot say this happened because the government grew the economy. On the contrary, today we are in a better economic position because, as a nation, we seized every opportunity – whoever created them. Now that we are in a different economic position, we must take the next step and speak about sustainability, including environmental sustainability, which means a better quality of life. We must ensure that what we plan today – even in architecture – respects the country’s character, and this priority must be given. As politicians, we have the moral duty not only to make decisions and speak with conviction but also to understand, explain, and propose solutions. A country’s success does not come from partisanship but from reaching compromises. Compromises for the good of the people must be the norm of this House, not the exception. If we do not protect future generations, we will be remembered as weak. When the electoral campaign opened, there was a national consensus that the economy was strong, securing the Labour Party’s re-election for the good work it had done.

Mr President, maturity dictates we must move away from populist narratives. We must never speak disparagingly about those who help us grow and generate economic wealth – especially workers, whoever they are. The economy is built on capital and labour. In this context, I appeal that when irregularities occur, we address the irregularities – not the person or their nationality. Human dignity must be fully preserved and respected. In a geopolitically turbulent world that has changed how we live as a continent and nation, we must be even more careful with our words. As a nation, we have always been welcoming, and we must avoid turning workers or businesses into scapegoats through narratives unworthy of this Parliament. Being here is a privileged position. Mr President, from here I appeal that whenever we have discussions, we act with maturity, consider what we say, and return to the ideological principles we believe in – not only as political parties but as a nation within the European Union.

Thank you.

The post My maiden speech first appeared on The Malta Business Weekly.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Artificial Intelligence has rapidly become a standing agenda item in boardrooms across the world. Yet while many discussions focus on the technology itself, the more important questions are around leadership, governance and judgement.

The same is true of cyber security. Most directors recognise the threat posed by cyber-attacks, but many continue to view cyber risk as an IT matter rather than a business issue. In reality, both AI and cyber security have become matters of strategic importance that require active board oversight.

Recently, I’ve observed a growing divide between organisations that see technology as a source of competitive advantage and those that view it primarily as a source of risk. The most successful organisations understand that it is both.

For boards, the challenge is not becoming experts in artificial intelligence or cyber security. The challenge is ensuring that the right questions are being asked and that management is approaching both opportunity and risk in a disciplined way. Artificial intelligence offers significant opportunities for businesses of all sizes. It can improve productivity, enhance customer experience, support decision-making and create entirely new products and services.

In Malta, board oversight of technology is bound to become increasingly important. Many of its successful businesses have grown from entrepreneurial, founder-led organisations into more sophisticated enterprises operating across multiple jurisdictions. As organisations scale, the risks associated with cyber resilience, data governance and the use of artificial intelligence will become more significant. The challenge for these companies will be to support innovation and growth while ensuring that governance frameworks evolve at the same pace. This is not about slowing change; it is about ensuring that change is sustainable, responsible and aligned with the organisation’s long-term objectives.

The enthusiasm surrounding AI can sometimes however obscure important governance questions. How reliable is the information being generated? What controls are in place? How are customer data and privacy being protected? Are employees receiving appropriate training? What reputational, regulatory and financial risks might arise if systems fail or produce inaccurate outputs? These are not technology questions. They are board level questions.

Similarly, cyber security is no longer simply about protecting systems. It is about protecting customers, employees, reputation and ultimately shareholder value. When organisations experience significant cyber incidents, the consequences extend well beyond operational disruption. Customer trust can be damaged, regulatory scrutiny can increase, and recovery costs can be substantial. In some cases, the reputational impact can last for years.

Boards therefore need confidence that cyber resilience is being treated as a strategic priority. This does not mean reviewing technical specifications or software architecture. It means understanding the organisation’s most critical vulnerabilities, ensuring adequate investment and testing whether management is prepared to respond effectively if an incident occurs.

One of the most common mistakes I’ve observed is that technology discussions are often delegated to IT specialists. Expertise matters, but boards must avoid creating a situation where only a handful of individuals understand the risks and opportunities being discussed.

The role of the board is not to provide technical solutions. It is to exercise oversight, challenge assumptions and ensure that technology decisions align with the organisation’s strategy, values and risk appetite. This is particularly important for chief executives. Many first-time CEOs are leading organisations through a period of technological change unlike anything previous generations have experienced. They are expected to make decisions about AI, cyber resilience, data governance and digital transformation while simultaneously managing growth, culture, regulation, sustainability and stakeholder expectations.

The best CEOs do not pretend to have all the answers. Instead, they build diverse leadership teams, seek external perspectives and create an environment where difficult questions can be raised openly.

The question therefore is no longer whether artificial intelligence and cyber security should feature on the board agenda. They already do. The real question is whether boards are equipped to govern them effectively. Technology will continue to evolve, often faster than regulation and sometimes faster than organisations themselves. In that environment, competitive advantage will not come from having the newest technology. It will come from having the judgement, leadership and governance to use it wisely. Ultimately, AI and cyber security are not technology issues at all. They are tests of a board’s effectiveness.

The post AI, cyber and the boardroom: Why technology is now a leadership issue first appeared on The Malta Business Weekly.