In the economic analysis introducing the pre-election proposals document titled Lead (Leverage, Excellence, Agility, and Delivery) – The Malta Chamber’s Proposals for 2026-2031 Legislature, the Malta Chamber presented a stark empirical analysis of the factors driving Malta’s economic growth in recent years. Analysing the period between 2013 and 2023, the analysis revealed that while Malta’s Gross Value Added (GVA) expanded by more than 80%, approximately 70% of that aggregate economic growth was driven purely by population growth and an expanding workforce (increased labour input). In contrast, a paltry 3% of that growth resulted from improvements in labour productivity. The Chamber’s figures demonstrate that Malta’s economic model relied almost entirely on sheer volume – bringing in more foreign labour, attracting more population, driving more transactions, and building more units – rather than generating higher output per worker.

Our growth pains are linked directly not merely to economic growth itself, but to our economic growth model, that is, how we chose to grow our economy. We chose to grow our economy at breakneck speed by failing to carefully calibrate the mix of economic growth sectors between highly productive sectors and low-productivity, labour-intensive sectors. We consistently chose volume growth over value.

This structural flaw was further elaborated in PwC Malta’s Economic Outlook, which highlighted a pronounced slowdown in national productivity. The PwC analysis demonstrated that while top-line GDP and GVA expanded, value-added per worker stagnated because national expansion was concentrated in low-productivity, labour-heavy industries, while higher value-added, highly productive sectors experienced deceleration. By relying on headcount to generate economic momentum, the national economy expanded through spatial and demographic pressure rather than structural efficiency.

The operational outcome of adopting this mindset from a volume-driven economic growth model is now explicitly outlined in the Central Bank of Malta’s Business Dialogue report (2026 Vol. 6 No. 3). The report demonstrates how this model is resulting in a sharp disconnect between turnover growth and actual profit growth across local businesses. While top-line activity appears buoyant – with a net balance of 41% of firms reporting positive current conditions and 49% anticipating further short-term improvements – businesses are suffering from systemic margin erosion. A staggering net share of 86% of surveyed firms reported surging input costs driven by supply chains, freight, and raw materials, yet only 51% were able to raise their selling prices due to market competition and contractual constraints.

Consequently, nearly 39% of businesses recorded a direct contraction in their profit mark-ups. Enterprises are processing higher revenues and managing higher transaction volumes, yet keeping less of the bottom line. Moreover, with labour availability remaining the primary operational bottleneck across 35% of all firms (and over 40% in services and construction), 64% of firms report wage increases between 2.1% and 6% simply to retain headcount, further compounding cost pressures on businesses that rely on labour-intensive operations.

These survey results directly illustrate the structural limitations of a volume-based economic growth model. When national growth is built on expanding physical volume and labour headcount rather than driving output per worker, businesses hit an operational wall. Scaling up transactions in a volume-driven framework inevitably leads to diminishing returns, as acute labour shortages, wage inflation, severe infrastructure bottlenecks, and unmanageable input costs eat away at enterprise profitability. The CBM data proves that high turnover under a volume model provides an illusion of prosperity while accelerating margin squeeze, demonstrating that endless headcount expansion cannot substitute for real productivity growth.

Rather than consoling ourselves by saying that these difficulties are just growth pains, we must focus on the way forward to fundamentally transform our economic growth model. Pivoting away from a volume-based framework toward a value-driven economy directly aligns with the long-term objectives of Malta Vision 2050 and the foundational metrics of any holistic national well-being index, both of which prioritise quality of life, environmental sustainability, and high-value economic efficiency over raw demographic expansion.

To execute this transition effectively, future government strategy must ensure that all cash and fiscal incentives are directed entirely toward higher productivity and redirected away from labour-intensive sectors. Public support, tax credits, and financial grants should no longer incentivise business models that depend on low-wage, high-volume employment. Furthermore, such fiscal incentives must incorporate explicit, mandatory metrics defining exactly how productivity will be measured such as Gross Value Added generated per employee, technological automation rates, or energy efficiency gains, to guarantee that public funds deliver verified economic returns.

Ultimately, hours lost sitting in gridlocked traffic or dealing with a crumbling infrastructure are not growth pains. They are systematic weaknesses that, among other policy decisions, need to be directly addressed by a decisive shift in our economic growth model.

The post Growth pains first appeared on The Malta Business Weekly.

Additionally, based on reader feedback, I will begin using subtitles to improve article clarity.

Age-restricted short lets and residential quality of life

Tourism is a relevant example. It is positive that tourists enjoy Malta’s attractions and that locals benefit from short-term rentals. However, our priority should be quality growth in tourism, rather than simply increasing visitor numbers. Excessive short-term rentals in residential areas are diminishing residents’ quality of life. While I support individuals earning income from short-term lets, property owners must ensure they do not disturb their neighbours. It is unacceptable to profit by permitting disruptive groups, such as rowdy teenagers, to compromise the peace of residents who have invested in their homes.

To address issues in busy areas, one solution is to restrict short-term rentals based on age. For instance, regular bookings could be prohibited for groups with an average age below 23 or 25. Authorities and rental platforms are aware of which age groups tend to cause disturbances. Private short-term rentals in these hotspots should be restricted for groups under 23 or 25, with exceptions for verified families, business travellers, licensed hotels or hostels, and longer stays. Long-term students under the age threshold would be considered separately. Platforms should require identity verification at booking and check-in, block non-compliant bookings, and display license numbers. Young tourists would still have access to hotels, which provide their own security away from residential blocks.

Furthermore, trained civilian teams are needed to address noise complaints, antisocial behaviour, and waste issues in busy neighbourhoods, and to issue prompt penalties when necessary. These teams should collaborate with the police, local councils, and rental platforms, and be funded through special levies in affected areas. Public reporting and robust oversight are essential. The Malta Tourism Authority has established occupancy rules, including lower limits in residential zones. We should also consider mandatory quiet hours and update existing regulations. While some residents have suggested military involvement out of frustration, it is important to maintain a clear distinction between military and civilian responsibilities.

Polluter Pays Principle for noise pollution

Pollution extends beyond the environment; noise pollution is a significant concern. The Polluter Pays Principle should be applied to noise in residential areas, recognising it as a genuine social harm and making it a priority. Excessive noise in densely-populated neighbourhoods with many short-term rentals should be treated as an environmental issue with tangible social costs. Efforts should begin in high-tourism areas such as Swieqi and surrounding zones. Other countries use sound sensors on streets and buildings to monitor noise during nights and weekends. Although these are not airport zones, a minimum decibel standard should be established to ensure residents’ peace. We should pilot sensor based thresholds and adopt a provisional residential night time decibel standard, to be refined after pilot results. While the government has previously increased revenue through economic growth rather than new taxes, it is now necessary to consider the polluter-pays principle. High-risk areas should impose additional noise charges on frequent short-term rentals and the platforms that facilitate them. Funds collected should support soundproofing grants, improved sanitation, and enforcement teams.

Tax policy can influence outcomes. Establishing special zones and implementing higher short stay surcharges in high-risk areas, particularly in the ninth and tenth districts, would support these neighbourhoods. Revenue should be allocated to neighbourhood improvements, soundproofing, community services, waste management, and security. Oversight should occur at the EU level, as platforms often disregard local data requests. Platforms must be required to remit payments, report transparently, and face penalties for non-compliance. A transition period until 2029 is recommended: the first year for mapping and registration, the next two years for sensor testing and age rule enforcement, and by the third year, full implementation of hotspot taxes and removal of non-compliant listings if necessary. Exemptions should apply to long-term stays, workers, families, and students, with additional support for residents such as soundproofing grants and accessible complaint processes.

Quality growth and sectoral priorities

When discussing growth, it is important to understand the key measures and principles of economic development and their broad application. Our current focus should be on quality growth, which involves evaluating each sector individually. Malta, for example, can prioritise its top 60 main sectors, ranging from services to manufacturing. Authorities must determine which sectors to prioritise for future support. I am not suggesting we close any industries but rather pause expansion in sectors that do not deliver high-quality growth and concentrate on those that achieve better outcomes with fewer resources. As reiterated last week, when discussing growth, it is important to understand the main measures and principles of economic development and their global application. Credit rating agencies and the European Commission primarily use debt-to-GDP and deficit-to-GDP ratios.

Lastly, if we want to be serious, noise pollution in crowded residential streets must be addressed as both an environmental and social issue. People are not against such measures. Certainly, people want us to measure, charge for, and enforce noise regulations, as well as implement age-based booking limits, apply hotspot taxes, and ensure dedicated enforcement. Residents in these areas are requesting these changes to protect their communities and promote higher-quality tourism.

The post Making noise polluters pay for quality tourism growth first appeared on The Malta Business Weekly.

According to Camenzuli, the scale of adoption places GO among the more advanced AI users in Malta’s business landscape. From an AI-powered customer chatbot that autonomously resolves the majority of digital customer interactions, to an internal platform enabling employees to build their own AI agents, the company’s approach is focused on practical applications that deliver measurable results.

“For many companies, AI might still be at conversation level but at GO, it has become part of how the business operates every day,” says Camenzuli, who has been leading the company’s digital transformation since 2018.

He explains that GO’s strategy is built around two complementary pillars.

“The first is customer-facing AI, centred around GO’s next-generation chatbot. The second is IntelliAsk, the company’s internal AI platform designed to give employees secure access to advanced AI capabilities while protecting company knowledge and data.”

GO’s customer chatbot, launched in 2024, marked a major shift away from traditional automated support tools.

Rather than forcing customers through predefined menus, the conversational system allows them to explain their issue in their own words and receive a response tailored to their specific circumstances. The technology is integrated across WhatsApp, Facebook Messenger and GO’s website chat channels, creating a consistent customer experience regardless of where a conversation begins.

“The difference is not simply that the chatbot can answer questions. It can take action,” says Camenzuli, explaining that when a customer reports broadband issues, the system can run diagnostics, identify potential faults and automatically create a service request where required. It can also check account information, billing details, roaming settings, service status and appointment details, providing customers with immediate answers without requiring human intervention.

“Our objective was never to remove human interaction from customer service but to use AI to remove repetitive processes and free up employees to focus on more complex customer needs,” he explains.

“When a conversation does require human support, the chatbot hands it over together with an AI-generated summary, so customers do not have to repeat their story and agents have immediate context,” he adds.

Behind the scenes, GO has also invested heavily in ensuring that its AI systems continuously improve. Customer conversations are analysed to identify missed opportunities, recurring issues and areas where the experience can be improved.

“AI does not make the customer experience perfect,” Camenzuli is careful to note. “What it does is facilitate the journey. We are on a continuous journey of improvement, and our goal is to keep delivering a consistently good experience for our customers.”

That same focus on continuous improvement carries through internally, via IntelliAsk, GO’s secure AI platform available to employees across the Group.

Rather than simply purchasing individual AI subscriptions, GO created its own environment where employees can access multiple AI models, interact with company information securely and build reusable AI solutions.

“The reasoning is strategic. AI capability becomes an organisational asset rather than something tied to individual employees which means that when someone creates a useful AI workflow, that knowledge stays within GO and becomes part of the company’s collective intelligence,” explains Camenzuli.

That approach has already generated strong employee engagement. GO staff have created hundreds of AI agents through IntelliAsk, with a growing number curated and made available through an internal marketplace.

The applications range from technical operations to everyday business processes, with teams across areas such as network operations, security and project management building agents that support tasks including log analysis, alert processing, documentation and delivery.

Importantly, the adoption has not been limited to technology specialists. Employees across departments including retail, facilities, HR, legal and sales are finding ways to use AI to improve their own workflows.

One of the clearest impacts of this approach is that AI is transforming employees from users of technology into creators of solutions.

Beyond customer care and employee productivity, AI is already delivering measurable operational improvements across the organisation. Contract management processes are being automated through AI extraction of key information from agreements, finance teams are using AI to process documents that once required manual input, and network teams are cutting the time spent on complex technical tasks.

“Software development processes that once took days can now be completed in minutes,” he added. Camenzuli stresses that for a telecommunications company, however, innovation must be balanced with responsibility.

“GO has placed security, privacy and governance at the centre of its AI approach,” he says. “Data remains within trusted infrastructure, user permissions are respected, and AI interactions are monitored.”

“In fact, our ambition is not to create a business operated by machines but to see AI as a tool that allows people to work smarter and make better decisions. This is why internally, we apply GO’s ‘Getting better every day’. It’s a principle that reflects our broader transformation journey,” concluded Camenzuli.

It is a philosophy that ties back to GO’s wider purpose: to drive a digital Malta, where no one is left behind.

The post ‘AI at GO isn’t a pilot anymore. It’s how the company runs’ first appeared on The Malta Business Weekly.

Malta’s logistics operators and consumers are already experiencing the economic impact of the European Union’s Emissions Trading System (ETS). The result is straightforward: higher transport costs that ultimately increase the price of almost everything imported into Malta. By 2028, a second carbon pricing mechanism, ETS2, will add further pressure, risking the affordability of Malta’s essential connectivity with Europe.

The results of this new regulation, over and above ETS, carry the very serious risk of Malta’s connectivity to Europe, our lifeline, becoming unaffordable.

No one disputes the importance of Europe’s transition to a lower-carbon future. Reducing emissions and promoting more sustainable transport are necessary objectives. However, climate policy must recognise that not all member states face the same realities. For Malta, geography is not a minor consideration but a permanent economic constraint.

As an island nation state, Malta depends entirely on reliable sea links to mainland Europe. Every day, food, medicines, construction materials, industrial supplies and consumer goods arrive through these maritime connections. Unlike continental countries, Malta has no road or rail alternatives. Sea transport is not a choice; it is our economic lifeline.

Before introducing another major carbon pricing mechanism through ETS2, the European Union must fully acknowledge the pressures Malta’s international transport sector is already facing.

Maltese international trailer operators have no option but to rely on maritime services to reach European markets. A typical return journey between Malta and Genoa covers around 1,400 nautical miles, creating a structural disadvantage that mainland competitors do not face. Yet these operators sustain Malta’s connectivity by generating the freight volumes that support six weekly Ro-Ro services linking Malta with Europe.

The sector is already under considerable strain. Current ETS measures add approximately €1,000 to the cost of each round-trip trailer. These costs cannot simply be absorbed by operators and are ultimately passed on to Maltese businesses and consumers.

At the same time, operators purchase around 90% of their diesel in Europe, where prices average approximately €2.50 per litre. They also face rising port charges, terminal fees and road tolls across the continent. Together, these increasing costs are placing Malta’s transport sector under growing competitive pressure.

This is why European policy must reflect the realities of island member states. While mainland operators can benefit from road-only routes, rail alternatives and shorter supply chains, Malta has none of these advantages. A one-size-fits-all approach risks placing a disproportionate burden on economies that depend entirely on maritime connectivity.

The ongoing review of the EU ETS framework offers an opportunity to recognise these structural differences. Maltese transport operators are fundamentally different from their continental counterparts because their business model depends entirely on sea transport. Future legislation should reflect this reality.

The challenge will become even greater when ETS2 is introduced in 2028. Designed to extend carbon pricing to road transport and buildings, ETS2 aims to accelerate decarbonisation by increasing the cost of fossil fuels. While the objective is understandable, its impact on island economies requires careful consideration.

Current European assessments suggest ETS2 could increase diesel prices by around €0.13 per litre under moderate carbon price assumptions, with higher scenarios reaching between €0.30 and €0.50 per litre by 2030. For Maltese operators already paying around €2.50 per litre, this represents an additional increase of between 5% and 20%.

The consequences extend well beyond the transport sector. Higher freight costs inevitably explain the higher prices for essential goods, increasing costs for businesses and households alike. ETS2 therefore extends beyond the transport sector, becoming a broader issue with implications for national competitiveness, affordability, and economic resilience.

ATTO believes that sustainability and competitiveness must go hand in hand. Malta’s transport sector is committed to supporting Europe’s climate objectives, but operators need realistic pathways, targeted investment and policies that recognise the realities of operating from an island state.

If ETS-related revenues are collected, a meaningful share should be reinvested in practical decarbonisation measures, including cleaner vehicle technologies, alternative fuel infrastructure and financial support for operators modernising their fleets. The transition must be supported by investment, not regulation alone.

This is an issue that requires national unity. The government, the Opposition, relevant ministries, Malta’s members of the European Parliament and all stakeholders must work together to ensure Malta’s unique circumstances are recognised at European level.

The question is not whether Malta should participate in the green transition. It should and it will. The real question is whether Europe can achieve its climate ambitions while safeguarding the competitiveness of island economies, protecting the affordability of essential goods and preserving the connectivity on which Malta depends.

Climate action must remain ambitious, but it must also be practical, balanced and fair.

Joseph Bugeja is the chairman of ATTO

The post ETS and ETS 2 threatens to make Malta’s connectivity to Europe unaffordable first appeared on The Malta Business Weekly.

The bank reported a profit before tax of €44.4 million for the six months ended 30 June 2026, down from €58.7 million in the corresponding period last year. Excluding notable one-off items, adjusted profit before tax stood at €51.7 million, reflecting the impact of a lower interest rate environment, market volatility and exceptional expenses.

Despite the decline in profitability, HSBC Malta’s management emphasised that the underlying business remains strong, supported by growing customer activity, expanding lending volumes, increasing deposits and exceptionally robust capital and liquidity ratios.

Speaking following the presentation of the bank’s half-year results, CEO Geoffrey Fichte told the Malta Business Weekly that preparations for the transition to CrediaBank are progressing smoothly and remain on schedule.

“The transition is going very well,” Fichte said. “We are working very closely with HSBC Global and CrediaBank to make sure the transition is a success. We are very enthusiastic and motivated, and we are committed to a seamless transition for our customers.”

The acquisition, first announced in September 2025, will see Greek lender CrediaBank acquire HSBC Continental Europe’s 70 per cent shareholding in HSBC Malta for €200 million. The agreement was formally signed in December 2025 and remains subject to the necessary corporate and regulatory approvals.

Fichte said the bank expects regulatory approval during the final quarter of 2026, with completion anticipated approximately six months later.

“We expect the transaction to close during the second quarter of next year,” he said.

Reassurance for customers

With many customers closely following developments surrounding the ownership change, Fichte sought to reassure clients that the bank remains financially strong and fully committed to serving the Maltese market throughout the transition.

“We think clients have nothing to worry about,” he said.

Pointing to the bank’s latest financial results, Fichte noted that HSBC Malta continues to maintain the highest capital and liquidity ratios among Malta’s listed banks, with capital levels also ranking among the strongest across Europe.

“We have a very strong team that’s staying on, and we are committed to a smooth transaction. We are very much open for business, so we think clients have nothing to worry about. In fact, we hope they’ll be as excited as we are about the future.”

Addressing questions during the results presentation, Fichte also rejected suggestions that the transaction was facing delays, arguing that regulatory approval processes of this nature typically require time.

According to the CEO, the transaction is progressing faster than comparable banking acquisitions elsewhere in Europe.

He added that HSBC Malta remains confident of delivering what management describes as “a seamless transition and upgrade” under CrediaBank, with continued support from the Board of Directors.

Strong underlying performance

While reported profits declined year-on-year, HSBC Malta highlighted solid underlying business momentum across several core activities.

Net interest income fell by €4.3 million to €85.6 million, reflecting the lower interest rate environment compared with the exceptionally favourable conditions experienced in 2025.

Non-funded income also declined slightly, although fee income increased thanks to higher lending activity and stronger wealth management sales. Trading income moderated following an exceptionally strong comparative performance in the previous year.

Operating expenses increased to €65.9 million, largely driven by €7.3 million in notable items, including accelerated software amortisation and staff-related payments linked to the industrial dispute with the Malta Union of Bank Employees (MUBE).

The bank also benefited from a €6.5 million release of expected credit losses, supported by the recovery of a long-standing non-performing corporate loan and improved credit quality within its retail portfolio.

Despite continuing geopolitical uncertainty globally, HSBC noted that Malta’s domestic economy remained resilient.

Lending growth continues

The bank continued expanding lending across both retail and corporate segments despite heightened competition.

Retail lending increased by 27 per cent during the first half of the year compared with the same period in 2025, while new corporate lending surged by 75 per cent.

Business financing remained particularly strong across hospitality, real estate, retail and manufacturing, with HSBC indicating that a healthy lending pipeline is expected to support further growth over the coming months.

Although total customer loans declined marginally to €2.7 billion due to repayments and portfolio optimisation, the quality of the loan book continued improving.

Non-performing loans fell by six per cent and now stand at their lowest level in recent years.

Customer deposits remained broadly stable at €6.2 billion, with retail deposits increasing despite seasonal reductions in corporate balances.

Strong capital position

Perhaps the bank’s strongest message was its continued financial resilience.

HSBC Malta reported a Common Equity Tier 1 capital ratio of 24.7 per cent and a total capital ratio of 27.8 per cent as at 30 June 2026, comfortably exceeding regulatory requirements.

Liquidity also remained exceptionally strong, providing the bank with significant capacity to continue supporting customers while navigating the ownership transition.

Reflecting this strength, the Board declared another quarterly interim dividend of €0.043 gross per share, amounting to €15.5 million.

Combined with the first-quarter dividend of €0.036 per share, shareholders will receive total gross dividends of €0.079 per share for the first half of 2026, equivalent to €28.5 million.

The latest payment represents a 60 per cent payout of adjusted profits after accounting for employee benefit expenses related to the industrial dispute.

Wealth and insurance

HSBC Malta also continued strengthening its wealth management and insurance businesses.

Wealth investment sales recorded double-digit growth year-on-year as customers increasingly sought long-term savings and investment products.

During April, the bank introduced eight additional Target Dated Funds to its HSBC Life pension platform, expanding retirement planning options for customers.

HSBC Life Assurance (Malta) reported profit before tax of €1.9 million compared with €6.5 million during the same period last year, reflecting more challenging market conditions and movements in financial markets.

Nevertheless, the insurer maintained a strong solvency ratio of 252 per cent while continuing to generate new business across protection and long-term savings products.

Continuing investment

Alongside financial performance, HSBC Malta continued investing in customer service and infrastructure.

The refurbishment of its Rabat branch was completed during the first half of the year, while modernisation works have commenced at the Gżira branch.

The bank also maintained investment in digital services, customer support and credit processing, while continuing marketing initiatives focused on lending, wealth management and insurance solutions.

Within corporate banking, HSBC renewed its Gold Sponsorship Agreement with The Malta Chamber of Commerce, Enterprise and Industry, reaffirming its support for Malta’s business community.

Earlier this year, HSBC Malta was also recognised with the Environment and Resources Authority’s Corporate Award for Environmental Innovation and Sustainability for the €30 million sustainable redevelopment of its Qormi headquarters.

Looking ahead

As HSBC Malta prepares for its next chapter under CrediaBank ownership, management believes the bank is entering the transition from a position of considerable financial strength.

“Our adjusted profit, strong capital and liquidity ratios, growing transaction volumes and continued momentum across customer acquisition and lending leave us well positioned for the future,” Fichte said.

With regulatory approval expected later this year and completion targeted for the second quarter of 2027, HSBC Malta says its immediate priorities remain unchanged: supporting its 180,000 customers, maintaining business growth and ensuring a smooth transition for employees, customers and shareholders alike.

The post HSBC Malta posts resilient first-half results as CEO expects CrediaBank takeover to close in Q2 2027 first appeared on The Malta Business Weekly.

When one considers that the article is in English and that I am reaching these numbers during a period when most people are supposedly in holiday mode, it signifies something. This is the same pattern I observed before the general election when writing about current issues and humbly offering alternative solutions to deter and solve problems. People were closely following what I was writing. Something different was happening in the run-up to the general election. It is understandable to receive messages of encouragement from Labour supporters to submit my name for the general election with the PL. However, there were also PN supporters asking me to consider submitting my name for the general election with the PL. It is at times unexplainable and perplexing. But I got the gist of why. I did not just receive a few messages. Several persons even gave me their mobile numbers to keep in touch.

You might ask why I am writing this article, which might not have anything to do with the title. I will arrive at that point later. Besides the messages I receive on social media, I also engage with people in person – at village festas, community events, and even during home visits. The same pattern is emerging when people talk to me. Many tell me that they follow what I write, be it on social media or in the local newspapers, because I have kept consistent arguments over the past four years. One of them even told me that I am not a facsimile of others, and my brand is distinctive from the rest. The reason is that when I write about something, I criticise constructively in a way that does not harm anyone, and I humbly try to provide solutions. Perhaps this is why I was elected. People voted for me because they wanted consistency, as well as someone who doesn’t bend under pressure.

Now, when I speak about consistency, as you may all recall, I always reiterated that economic growth isn’t the problem. The problem, as it stems, is a planning and implementation problem. And this is not symptomatic of the PL government. It has always been, and it will take courage to change it, including bipartisan principles that should be inalienable, whoever is in government. Let’s take the environment. What we must do is keep more oversight so as not to allow chaotic conditions to thrive. Also, we have situations where we have more people on these islands not just permanently but also seasonally. Indeed, those who write about economic growth can’t understand the underlying positive effects. Alas, many of those writing and expressing their opinions are not economists.

An article written by a lawyer or a medical doctor doesn’t give the reasons why growth is bad. They argue that growth is not yielding the expected results. Firstly, we need to see what results they are talking about. Let me break this down. The starting point must be the understanding that the metrics provided universally, and those used by credit rating agencies as well as the European Commission, are the debt-to-GDP ratio and the deficit-to-GDP ratio. Indeed, there are other indices, but the starting point is economic growth. Because the lower the denominator, the bigger the ratio, and hence why we need economic growth.

Now, if economic growth means that we have additional tourists, additional seating capacities and services at our restaurants and hotels, and additional people living here to service our hospitals and medical care, then we need to manage the country with high precision, without hindering economic growth. And this means that whatever we do must be operationally efficient and implementable. At times, it must harshly punish those who are not complying with the current regulations to use it as a deterrent. We do not afford to relax, and we do not afford to start a political discourse that harms rather than helps facilitate our day-to-day work. Thumbs up to those involved in increasing the on-the-spot fines.

Also, we need to understand that people are indeed generating income. The only problem is that our political discourse has become one in which politicians either sweep issues under the carpet or avoid addressing them altogether for fear of stepping on others’ toes, and in the meantime, the Opposition fuels and foments a narrative that doesn’t paint the reality. We indeed have a situation where some areas need to be badly managed, with strict protocols. And here I must congratulate Minister Glenn Bedingfield for the good work he’s doing in several areas in Malta, including the increased surveillance in the ninth and 10th districts, which badly needed the on-the-spot fines and the suspension of accommodation licenses of those not complying with regulations and disturbing residential areas. Other districts are affected, too.

Certainly, economic growth is good as the country advances. Besides, we economists strive to distribute wealth more justly, and we also think of those who are really in need. What needs to be done is the right distribution of wealth, and this is a separate argument from economic growth, although intrinsically linked. And the problem we currently have is that some economic activities are indeed impinging on the quality of life of some residents, not least overdevelopment. I already stated this in a preceding article. I don’t understand the reason why piles of construction debris must sit next to an office and a residential area. Piles of construction waste are sprouting everywhere. The level of pollution and its consequences, including bad air quality, have reached an obnoxious level. And this is why those who do not understand what growth brings are linking everything to economic growth, rather than the sector itself, lack of implementation, lax policies, and the mischievous young tourists.

We need to step up our control and increase the penalties, as has already been done, and if need be, deploy additional human resources to address these challenges. That would represent truly productive employment and meaningful work.

The post The problem is not economic growth but those who don’t understand economics first appeared on The Malta Business Weekly.

According to NATO data on defence expenditure, Germany, Poland, and the Baltic states are leading in defence spending in Europe. Typically, one observes how the European Commission’s Rearm Initiative and Safe highlight Europe’s institutional response. German chancellor Friedrich Merz promised a more European alliance, while the Trump administration has added pressure on Europeans to increase defence budgets and reduce their dependence on US technology.

Notice how the European allies pledged hundreds of billions in new defence commitments across the continent. Secretary General of NATO, Mark Rutte announced new deals and partnerships across allies and industrial bases, unveiling new multinational partnerships in surveillance, space, command and control, air platforms, submarines, and a massive drone and counter-drone marketplace. These are valued at $50 billion. Still, the question remains: is Europe actually building an independent defence industrial base or just paying more for American weapons assembled on European soil?

Let us start by examining what Germany is doing to beef up its arsenal. Its acquisition and deployment of the Israeli Arrow 3 system is the flagship contribution. It was launched on 13 October 2022 by then-chancellor Olaf Scholz in the wake of Russia’s full-scale invasion of Ukraine. Its four main goals comprise:

• Rapidly fill capability gaps in European air and missile defence;
• Enable joint procurement of systems for cost savings and faster delivery;
• Improve interoperability, training, maintenance, and logistics; and
• Strengthen the European contribution to NATO’s Integrated Air and Missile Defence (IAMD).

Moving on, let us discuss the European Sky Shield Initiative (ESSI) concept. This promotes a layered approach using existing or near-term systems. It is a Germany-led multinational framework launched in October 2022 to strengthen Europe’s ground-based air and missile defence capabilities through joint procurement and coordination.

The primary goal is to create a multi-layered, integrated European air defence network that fills capability gaps, enables faster and more cost-effective acquisitions, and reinforces NATO’s Integrated Air and Missile Defence system. By comparison, Israel’s multi-layered Arrow 3 defence concept intercepts intruder missiles outside the atmosphere. Arrow 3 was acquired by Germany as a cornerstone of the initiative’s upper tier. ESSI is complementary to, but distinct from other efforts, such as more recent European discussions on developing indigenous interceptors or broader anti-ballistic coalitions involving Ukraine. It remains primarily a pragmatic procurement and cooperation vehicle rather than a fully integrated single-command system.

Many have praised Germany’s commercial link to Israel, particularly the acquisition of the Arrow 3 system in late 2023, valued at approximately €3.5-4 billion:

1. Shared training, maintenance, and logistics;
2. Integration into broader NATO structures while allowing national flexibility in contributions; and
3. Concrete steps include coordinated Patriot missile purchases, with individual nations ordering IRIS-T SLM units through the framework.

It provides Germany, and by extension parts of Europe, with interception capability against medium- and intermediate-range ballistic missiles. Its sole contractor is Israel Aerospace Industries (IAI), with US involvement through Boeing and Israeli subcontractors, including Elbit and Rafael. Recently, three sites have been planned in Germany for nationwide coverage, with full operational capability targeted around 2030.

As a background note, Germany acquired Arrow 3 as a direct response to the ballistic missile threat demonstrated by Russia’s war against Ukraine and as a major contribution to the European Sky Shield Initiative (ESSI). It sits as the upper layer above medium- and long-range systems such as IRIS-T SLM and Patriot.

In conclusion, the Ankara Summit this year demonstrated beyond doubt that NATO remains resilient despite recent disagreements among its members. Europe is gradually evolving into a stronger and more capable security actor within NATO, contributing to collective defence and thereby reinforcing the Alliance. Rather than pursuing strategic autonomy, most European nations are pursuing greater strategic responsibility, developing their military, industrial, and technological capabilities to shoulder a greater share of regional security while preserving the transatlantic alliance.

This year, the Ankara Forum focused on Allied progress towards reaching NATO’s historic 5% defence investment plan and on how this money is being put into action to generate increased defence production, cooperation, and joint procurement. Private capital providers are being sought to enable non-traditional suppliers, including small and medium-sized enterprises, to scale operations by financing product development and production. Private capital providers can act as force multipliers for Allied defence spending by attracting additional capital to grow defence industrial capacity, increase production across the Alliance, and meet Allied capability requirements.

The post At the Ankara Summit, Europe gears up its defence spending first appeared on The Malta Business Weekly.

Looking at the first half of 2026 compared to the same period in 2025, the nominal average spend per tourist presents a split reality across the Mediterranean basin. In Spain, total international expenditure grew strongly, pushing the nominal average spend per tourist up to approximately €1,366, representing a solid gain of over 2.6% compared to the previous year. Greece recorded an even more pronounced upward trajectory, where high-end tourism expansion and shoulder-season arrivals drove average spending per trip up by over 8.6% to around €717. Italy and France both exhibited steady, resilient gains in per-tourist expenditure, reaching approximately €770 and €775 respectively, representing modest annual increases of around 2.0% and 1.9%. Conversely, island destinations experienced noticeable downward pressure on per-tourist figures. Malta saw its average spend per tourist decrease by nearly 2.8% to €800, down from €823 in the same period of 2025. Cyprus suffered the sharpest drop, with per-visitor nominal spend falling by over 7.4% to €623 as hoteliers engaged in rate discounting to cushion against regional geopolitical headwinds.

A comparative analysis of these per-tourist figures highlights two distinct destination trajectories across Southern Europe. On one hand, continental Western Mediterranean powerhouses like Spain, France, and Italy, along with Greece, successfully expanded their average revenue per visitor by capitalizing on high value hospitality investments, long-haul travel recovery, and strategic off-peak marketing. On the other hand, island economies like Malta and Cyprus faced a contraction in total spend per visitor. Malta’s decline occurred despite a massive 18.1% surge in total tourist arrivals, proving that volume growth does not automatically translate into higher expenditure per visitor. In Cyprus, the contraction reflected broader external disruptions that altered visitor profiles and forced aggressive pricing adjustments.

This divergence in per-tourist expenditure cannot be properly understood without analysing the continuous, Europe-wide trend toward shorter trip durations. Comparing the average length of stay from the pre-pandemic baseline of January to June 2019 against January to June 2026 illustrates a systematic contraction across all 6 Mediterranean destinations. In 2019, tourists in Cyprus stayed an average of 9.2 nights, whereas by 2026 that figure had compressed to 7.5 nights. Malta experienced a similarly sharp reduction, falling from 6.8 nights in 2019 down to 5.5 nights in 2026. Greece witnessed its average trip duration shrink from 7.4 nights in 2019 to 6.1 nights in 2026. Spain saw average stays decrease from 7.8 nights in 2019 to 7.0 nights in 2026, while France dropped from 5.3 nights to 4.7 nights. Italy, which already maintained the shortest average stay due to its heavy weekend city-break volume, compressed further from 4.2 nights in 2019 to 3.6 nights in 2026.

Comparing these length-of-stay contractions reveals that smaller island nations and traditional sun-and-beach destinations experienced the most dramatic erosion in vacation duration. Malta and Cyprus registered the largest relative losses in stay length, driven by the rapid expansion of budget airline routes that encourage frequent 3-to-4-night micro-vacations rather than traditional fortnight holidays. Spain, France, and Italy demonstrated greater relative stability in trip duration, largely because their diverse product offerings—ranging from cultural city tours and business conventions to regional countryside retreats—naturally accommodate varied travel schedules. Across all 6 nations, however, the fundamental reality remains the same: modern tourists are taking more frequent trips throughout the year, but spending fewer total days on the ground during each visit.

When the analytical focus shifts from per-tourist expenditure to average spend per night, the economic picture undergoes a dramatic reversal. Comparing the first half of 2026 against the first half of 2025, nightly spending rates actually increased across nearly all 6 nations, offsetting the impact of shorter stays. Spain’s average nightly spend surged to roughly €214, reflecting a notable year-on-year increase. Malta recorded a good performance in nightly yield, with its average spend per night climbing over 4.2% to approximately €152.17 across the 6-month period, and peaking at nearly €176.80 in June 2026. Greece and Italy both saw average daily expenditure rise by around 6.0% to 8.0%, driven by elevated room rates and higher daily food and beverage spend. France maintained high daily spend averages exceeding €165 per night. Cyprus was the sole nation where nightly expenditure remained constrained, hovering around €90 per night due to widespread promotional discounting.

A comparative analysis of nightly spend underscores how a drop in total spend per tourist can obscure underlying commercial pricing power. Malta presents a striking example of this phenomenon: while its spend per tourist dropped because visitors stayed fewer nights, its spend per night increased significantly. Travelers who condense their vacations into shorter windows compress their discretionary budgets, spending more money per day on dining, activities, and commercial lodging. Consequently, destinations across Europe are generating higher revenue per individual guest night even as total trip lengths decline.

When taking the inbound tourism figures for Malta for H1 2026 against H1 2025, across traditionally high-spending tourist source markets—the USA, Switzerland, France, and Germany, this highlights structural shifts in traveller yield. Across the first half of 2026, long-haul and premium European travelers recorded declines in average total spend per tourist compared to H1 2025 benchmarks. US visitors, historically Malta’s highest spenders, averaged €1,080 per trip in H1 2026, down from €1,150 in June 2025. Swiss (€945) and German (€890) travellers experienced per-tourist spend contractions, while French spend (€815) remained compressed.

This per-visitor drop stems directly from shrinking stay durations. Average length of stay across these premium markets contracted from 6.4 nights in June 2025 to 5.7 nights in H1 2026, with German and French trips shortening most rapidly.

Conversely, average spend per night expanded. Elevated hotel rates pushed nightly spend among US (€189/night) and Swiss (€166/night) visitors higher than June 2025 averages (€179 and €158).

From an overarching economic perspective, despite the impressive daily rates generated by short-break travelers, long-stay tourists remain fundamentally more valuable to a destination’s long-term health. The primary reason lies in the distinction between gross revenue and net economic yield. Every tourist, regardless of how long they stay, generates fixed infrastructure costs and environmental externalities, including airport capacity demands, transportation congestion, water usage, and municipal waste generation. A destination hosting 100 tourists staying for 10 days generates the exact same number of guest-nights as a destination hosting 500 tourists staying for 2 days. However, the 500 short-stay tourists require 5 times the transit check-ins, 5 times the hotel turnovers, and generate vastly higher peak-time congestion, imposing a far heavier burden on public services and local infrastructure.

Furthermore, long-stay tourists demonstrate far superior capital distribution throughout the local economy. Short-stay visitors inevitably cluster within tight geographical radii surrounding primary transport hubs, major landmarks, and international hotel chains, leaving their financial footprint concentrated in a handful of corporate hands. In contrast, travelers who remain in a destination for longer periods gradually venture beyond tourist hotspots. They shop at neighborhood markets, dine at non-central family-run restaurants, utilize regional public transport, and participate in local cultural experiences. This decentralizes tourist capital, directly enriching small and medium enterprises across the broader community. Longer stays also carry a significantly lower carbon footprint per day spent, as aviation emissions are amortized over a longer duration on the ground. Therefore, while short-stay visitors temporarily boost immediate daily spending figures, transitioning toward a tourism model built on longer stays delivers higher net profit margins, protects civil infrastructure, mitigates overtourism, and ensures that tourism economic value genuinely trickles down into the domestic host community.

The metric of average spend per night inherently favours tourist volume over value, encouraging high-turnover arrivals rather than total economic yield. In theory, if we take Malta’s total nominal tourist spend of €3.9 billion in 2025 and assume each visitor spent just 1 night at the average spend per night of €153.54, Malta would have needed 25.4 million tourists—instead of the actual 4.02 million—to generate the exact same nominal revenue. This demonstrates how focusing on nightly metrics distorts sustainable economic growth by masking the true value of longer stays.

It is precisely because of these deeper economic realities—net yield, broad spatial distribution of wealth, lower infrastructure strain, and genuine local spillover—that average total spend per tourist stands out as the far superior metric over average spend per night. Focusing solely on spend per night creates a dangerous illusion of economic success. A destination might celebrate a high nightly rate of €176 while ignoring that a transient, 2-night visitor spends only €352 in total, contributes heavily to airport congestion, relies on low-cost carrier infrastructure, and rarely leaves the immediate hotel district. Conversely, a long-stay visitor spending €1,366 over 10 days delivers nearly 4 times the capital to the host country, amortizes their environmental footprint over a longer period, and distributes wealth across diverse regional sectors. Average total spend per tourist captures the true macro-economic contribution of a human visitor to a nation’s national accounts, whereas spend per night merely measures short-term operator pricing power. Destinations that prioritize spend per night risk falling into the trap of over-tourism: celebrating elevated daily prices while their local infrastructure crumbles under the weight of excessive visitor turnover.

In conclusion, comparing Malta’s inbound tourism performance against its Mediterranean competitors highlights a destination achieving unprecedented volume records while navigating acute structural vulnerabilities. While competitors like Spain (+2.6%), Greece (+8.6%), Italy (+2.0%), and France (+1.9%) successfully grew their average total spend per tourist in early 2026, Malta suffered a 2.8% decline to €800 per visitor. This dynamic stems from Malta’s sharpest-in-class length-of-stay reduction, dropping 17.9% from 6.7 nights in 2022 (and 6.8 in 2019) down to 5.5 nights in 2026. While Malta easily outperforms Cyprus (-7.4% in spend per visitor) due to Cyprus’s regional geopolitical headwinds, Malta’s strategy relies heavily on low-cost carrier volume, which reached over 60% of total air traffic. Moving forward, Malta faces significant challenges: its hyper-dense island geography leaves infrastructure, waste management, and residential communities highly sensitive to mass tourist turnover. To build a resilient tourism future, Malta must pivot away from chasing raw arrival numbers—which reached 2,131,825 in the first half of 2026 alone—and focus on extending visitor stays, enhancing product quality, and restoring average total spend per tourist as its primary strategic north star.

The post Average spend per tourist or average spend per night? first appeared on The Malta Business Weekly.

The MSE Equity Total Return Index (MSE) closed the month higher by 0.8%, to settle at 9,988.394 points. A total of 30 equities were active, as nine advanced and 18 declined. Total monthly turnover reached €5.4m, generated across 884 transactions. Since the beginning of the year the MSE is up by 12.2%.

The MSE Corporate Bonds Total Return Index closed 0.9% higher, as it reached 1,164.118 points. Out of 110 active issues, 71 headed north, while another 26 closed in the opposite direction. The 4% Stivala Group Finance plc Secured € 2027 recorded the best performance, up by 3.1%, to close at €99. Conversely, the 4% Shoreline Mall plc Secured € 2026 closed 28.2% lower at €70.

The MSE MGS Total Return Index declined by 0.3%, closing at 967.606 points. Out of 40 active issues, nine traded higher while another 31 declined. The 1.4% MGS 2046 headed the list of gainers, as it closed 2.1% higher at €60.64. On the other hand, the 1.8% MGS 2051 closed 3.4% lower at €59.63.

Top 10 Market Movers

Bank of Valletta plc posted a 4.3% monthly gain, settling at its monthly high of €2.17 after dipping to a low of €2.07 during the period. The banking equity was the most liquid of the month, with 1,149,508 shares crossing the market across 222 transactions, generating €2.4m in turnover.

APS Bank plc closed higher for the fourth consecutive month. The banking equity gained 1.8% to finish at €0.58, climbing off a monthly low of €0.55. A total of 290,814 shares were dealt across 86 transactions, with €166,566 recorded in turnover.

Having declined 13.5%, FIMBank plc ended the month at its low of $0.16. The USD-denominated equity saw 172,193 shares dealt across 15 transactions, with $25,130 changing hands.

Having now registered losses in three consecutive months, Lombard Bank Malta plc dropped a further 5.6%, closing at €0.68 after ranging between a low of €0.655 and a high of €0.73. A total of 21 transactions of 59,657 shares were executed.

International Hotel Investments plc closed the month on a high, as the equity of the hotels’ operator rallied 7.3% to close at €0.585, recovering from a low of €0.545. Across 48 deals, €132,880 in turnover was recorded, involving 238,234 shares.

Mapfre Malta plc advanced 8.4% over the month, closing at €1.42 after recovering from a low of €1.33. A total of 22,258 shares were transacted across 11 deals, producing €31,572 in trading value.

Malta International Airport plc edged 0.8% higher over the month, closing at its monthly high of €6.25 after dipping to a low of €6.05. A combined 59,007 shares changed hands across 50 deals, bringing total turnover to €364,796.

Among the month’s notable decliners, Simonds Farsons Cisk plc shed 8.2% to close at €5.60, having reached a high of €6 earlier in the period. A total of 19,328 shares were dealt across 28 transactions, amounting to €108,834 in traded value.

PG plc tanked 6.1% over the month, closing at €1.55 after trading as high as €1.65. The consumer staples equity saw 160,672 shares dealt across 26 transactions, with total traded value reaching €256,453.

Having fallen 8.2% from a high of €0.438, Malita Investments plc closed the month at €0.38, its monthly low. A total of 79,158 shares were transacted across 13 deals, amounting to €31,514 in turnover.

Company Announcements

Bank of Valletta plc has announced that during the six-month period ended June 30, 2026, the Group registered operating income of €251.3m, up 3% from €244m in the corresponding period, driven by higher net interest income from continued growth in the lending book. Profit after tax nonetheless fell to €79m from €89.5m, a decline of 11.8%, for basic earnings of €0.1231 per share, primarily reflecting a net credit loss charge in the period against a release in the prior year, together with higher operating costs arising from ongoing investment in staff, technology and regulatory initiatives. The Board declared an interim net dividend of €0.0523 per share, representing a payout ratio of 42.5% of profit after tax, payable on August 21, 2026.

APS Bank plc has announced that, at its board meeting held on July 30, 2026, the Board approved the Group’s condensed interim financial statements for the six-month period ended June 30, 2026. The Group delivered a record interim result, with profit after tax rising to €16.3m from €4.9m in the corresponding period, for earnings of €0.0082 per share. The strong performance was driven by robust growth in business volumes and a stronger, more diversified revenue base. The Board declared an interim net dividend of €4m or €0.0082 per share.

During thesix months ended June 2026, Malta International Airport plc has generated revenue of €82.5m, up 14.8% from €71.9m in the corresponding period, driven by a 15.6% increase in traffic to 5.2m passenger movements, while profit after tax rose to €29m, an increase of 18.5%. The Board approved an interim net dividend of €0.06 per share.

For thesix months ended June 2026, Mapfre Malta plc registered profit after tax of €9.2m, down from €9.8m in the corresponding period, for earnings of €0.07 per share. The reduction was primarily attributable to a lower insurance service result, reflecting the impact of Storm Harry and the fireworks factory explosion earlier in the year as well.

Malta Properties Company plc registered rental income of €2.9m for the six months ended June 30, 2026, up 29% from €2.3m in the corresponding period, driven mainly by the renovation and re-letting of previously vacant properties to new tenants. Profit after tax more than doubled to €1m from €0.5m.

Plaza Centres plc (PZC) has entered into a promise of sale agreement to acquire a property in Tigné, Sliema. The property is leased to an established childcare operator, and the acquisition is expected to enhance the Company’s earnings upon completion. The transaction remains subject to several conditions that must be satisfied by the seller. The Board believes the acquisition aligns with the Company’s strategy of strengthening and diversifying its property portfolio and will update the market on any material developments.

AX Group plc has announced that, by virtue of a deed dated July 15, 2026, its majority-owned subsidiary AX Business Park Limited acquired an immovable property in Marsa measuring circa 6,923m² from Marsa Investments Limited, previously used as the match box factory known as “The Modern Match Factory Marsa”. The total consideration of €15m was paid in full upon execution of the final deed of sale. The acquisition consolidates the adjacent properties already owned by AX Business Park Limited, with the Group currently working on plans for the development of the overall site and a development application to be submitted to the Planning Authority soon.

RS2 plc has announced that its wholly owned subsidiary, RS2 Financial Services GmbH, has been selected by the Euro system to participate as an acquiring payment service provider in the European Central Bank’s Digital Euro Pilot. The subsidiary is one of 36 payment service providers selected for the programme, which is intended to test the practical application of a potential digital euro in real-world payment scenarios and is expected to commence during the second half of 2027.

This article, which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a Member of the Malta Equity Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Limited, 16 Central Business Hub, Level 3, Mdina Road, Attard ATD 9036, or on Tel: 21224410, or email info@jesmondmizzi.com

The post Trading Report for July 2026: BOV and APS continue upward momentum first appeared on The Malta Business Weekly.

The R&D expenditure was primarily dedicated to Basic Research, which accounted for 42.3% of total R&D in 2024, followed by Applied Research (30.7%) and Experimental Development (27%). 

Both the Business sector and the Government sector reported an increase in R&D expenditure compared to 2023. The highest increase in outlay of €21.5 million was registered under the Business sector while the Government sector increased by €0.8 million. The Higher Education sector reported a decrease of €3.2 million. Labour costs represented 67% of total R&D expenditure, followed by Other recurrent expenditure (24.3%) and Capital expenditure (8.7%).

The highest R&D expenditure by scientific field was recorded in Engineering and technology, which accounted for 56.1% of total expenditure, followed by Medical sciences (15.8%) and Natural sciences (11.1%). Most of the R&D activity in Engineering and technology and Medical sciences was undertaken in the Business Enterprise sector, whereas research in relation to Social sciences and Humanities was mainly carried out by the Higher Education sector.

Year-on-year comparisons show that the highest increase was registered in Engineering and Technology (€16.7 million), followed by Medical sciences (€9.7 million). These increases outweighed a decrease of €11.4 million in Natural sciences.

Each sector mostly funds its own research, supplemented by foreign funds. R&D in the Business Enterprise sector is mainly funded by local business enterprise funds, General university funds are directed to the Higher Education sector and Direct government funds service the Government sector. Foreign funds for R&D reached €10.2 million, or 7.3%, of total funds.

R&D employment

3,760 employees were engaged in R&D work, of whom 2,148 spent a portion of their time on R&D projects, while the remaining 1,612 employees dedicated their entire working time on R&D projects. The highest R&D employment was registered in the Business Enterprise sector, at 1,864 employees, followed by the Higher Education sector, with 1,800 employees.

Male employment was predominant among researchers and technicians. Females accounted for 36% of total R&D employment.

With regard to R&D employment by major field of science, the highest employment was recorded in Engineering and technology with 1,906 employees, followed by Social and Natural sciences, with 634 and 459 employees respectively.

R&D government budget allocations

The government budget allocations for R&D (GBARD) for 2025 amounted to €42.3 million, a decrease of €0.3 million when compared to 2024. The highest GBARD outlay was recorded in General advancement of knowledge: R&D financed from General University Funds of €25.2 million.

The post Total expenditure on Research and Development amounted to €140.2m in 2024 first appeared on The Malta Business Weekly.