26/10/2026
𝗠𝗮𝗹𝘁𝗮 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗿𝘀 𝗕𝘂𝗱𝗴𝗲𝘁 𝗥𝗲𝗮𝗰𝘁𝗶𝗼𝗻:
𝗕𝘂𝗱𝗴𝗲𝘁 𝟮𝟬𝟮𝟳 𝗽𝘂𝘁𝘀 𝘀𝗵𝗼𝗿𝘁-𝘁𝗲𝗿𝗺 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗵𝗲𝗮𝗱 𝗼𝗳 𝗳𝘂𝘁𝘂𝗿𝗲 𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆-𝗹𝗲𝗱 𝗴𝗿𝗼𝘄𝘁𝗵
Malta’s rapid economic growth has generated employment, increased incomes and supported public finances. However, the pressures on infrastructure, the labour market, the environment and the cost of living underline the need to reconsider not only how fast the economy grows, but also the type of growth Malta should pursue.
Malta Employers expected Budget 2027 to set out a clearer roadmap for economic transformation, with concrete measures to encourage productivity, innovation, investment in technology, skills development and higher-value economic activities. While the Budget addresses a number of immediate needs, it offers insufficient detail on how Malta will move towards a more sustainable and productive economic model, reduce its reliance on population growth and labour-intensive activity, and improve the quality of life of its residents.
Malta Employers noted that the Budget Speech sought to maintain short-term stability in prices, incomes, consumption and economic growth. However, the Association observed that less attention was given to the long-term priorities essential to sustaining the country’s economic transformation.
In particular, greater emphasis is needed on investment in education and reskilling, digital technology and automation, as well as infrastructure, to support a more productive, innovative and sustainable economy.
The Association welcomes measures that support families, including tax reductions for parents, and recognises the short-term benefits of energy subsidies in cushioning the impact of international prices. However, these measures must form part of a broader strategy that addresses demographic challenges, strengthens energy security and ensures that public expenditure delivers lasting economic and social value.
It also welcomes the reduction in tax for SMEs with a turnover of less than €1million from 35% to 25%.
Malta Employers is particularly concerned by the lack of concrete detail on incentives for businesses to invest in digitalisation, automation and higher-value activities, as well as the absence of a clear direction on mass transport and economic diversification. At the same time, increases in fees affecting foreign workers and tourism require careful assessment of their implications for employers, competitiveness and prices. Investment in education must also deliver stronger outcomes to equip the workforce with the skills needed for Malta’s future economy.
The Association believes that economic policy must go beyond sustaining existing activity. Malta needs a clear, long-term strategy that raises productivity, encourages innovation, supports families and businesses, and ensures that economic growth translates into lasting improvements in competitiveness and quality of life.
https://maltaemployers.com/media-item/malta-employers-budget-reaction/