Executive Traveller December 2024 by Union Print

Tomorrow’s Malta

PUBLISHING EDITOR

Andrea Trapani

PUBLISHING EDITOR

Andrea Trapani atrapani@executivefbo.com

atrapani@executivefbo.com

Andrea Trapani atrapani@executivefbo.com

Omar Vella marketing@executivefbo.com

ADVERTISING EXECUTIVE

Rebecca Pace adverts@unionprint.com.mt

ADVERTISING EXECUTIVE

Rebecca Pace adverts@unionprint.com.mt

DESIGN

Joellson Bezzina

Robert Caruana rcaruana@unionprint.com.mt

PRINTING

Union Print Co. Ltd. www.unionprint.com.mt

PUBLISHER

Executive Aviation Malta Ltd

CONTRIBUTORS

Special thanks for the production of this edition goes to LUXPRO 360 as the main contributor and sponsor, as well as all other contributor and sponsor, as well as all other contributors for their time and images. We also thank all advertisers for their support to ensure the constant growth of the magazine.

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SUBSCRIPTION

Executive Traveller Magazine is distributed for free to top hotels and venues, and is available at local and international business aviation conventions. The publication is also available online at: www.aviapros.com/ETM

Disclaimer: Particular attention has been given to ensure that all the content of this magazine is correct and up to date as on date as issue. The views expressed in the articles and technical papers are those of the authors and are not neccessarily endorsed by the publisher. While every care has been taking during production, the publisher does not accept any liability for errors that may have occurred. Copyright © 2022.

Malta continues to be one of the fastest growing economies in the EU. Although being one of the EU’s smallest nations, it is also one of the most resilient, resulting from a decades-long strategy of ensuring a wide spread of economic activities so as to minimise negative exposure to external developments. the recent government's economic vision for the ten years to come is a clear proof of such strategy. Malta has also demonstrated an ability to prosper, even in difficult global contexts. This has been further consolidated by the recent Moody and Fitch ratings on Malta.

Recent Fitch Ratings has affirmed Malta’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook. A rating driven by a strong economic momentum where it is forecasted that real GDP growth will average 5.7% this year, well above the ‘A’ median and eurozone growth forecasts of 2.0% and 0.8%, respectively. Strong growth contributions in recent quarters have come from the services sector, the financial sector (due to higher interest margins) and tourism, where arrivals in 1H24 surpassed pre-pandemic levels by 32%. A positive drive which led to an upward revision of Malta’s growth forecasts for 2025 and 2026 to 4.3% and 4.1%.

Innovation remains key for the country's growth as well as the consolidation of vital economic niches. A key sector which has grown exponentially over the past years is

Innovation remains key for the country's growth as well as the consolidation of vital economic niches. A key sector which has grown exponentially over the past years is certainly the aviation industry with the presence of a number of quality operators in the Maintenance, Repair and Overhaul (MRO) sector alongside other complimentary services including aircraft painting as well as a growing cluster of companies working in back-office support and aviation software, drone and UAV development and aviation training.

A positive economic outlook that will set the tone to

Yet Malta's economic growth is not only attributed to its expansion in the aviation sector. It is also attributed to the country's approach in the tourism sector, Malta's growth in the digital and innovation industry as well as the island's consolidation in other key sectors including the real estate and the gaming industry.

2023 is a decisive year for the country which will see it implement its ambitious budget announced earlier in October, which will see it implement its drive towards innovation, which will see it seek further economic growth.

Omar Vella Editor / Andrea Trapani Editor and Publisher

EY Malta’s 20th Malta Attractiveness Survey Reveals Insights on Malta’s Investment Climate

EY Malta has released the findings of its 20th Malta Attractiveness Survey during the Future Realized Conference on 23/10. This annual study, which gathers insights from existing foreign direct investment (FDI) companies in Malta, provides a comprehensive overview of the island’s investment appeal and areas for improvement.

Attractiveness Index

54% percent of existing FDI investors considered Malta to be an attractive location in this latest study. Although this represents a slight decrease of 5% from the previous year, it is well above the low point reached in 2021. Yet it does not match the high confidence levels Malta enjoyed up to the year 2019.

Investors acknowledge the strategic advantages that Malta offers but also recognize that there are pressing challenges that need to be addressed. These include the rising cost of living and the strain on the labor market, which could potentially impact the country’s ability to sustain long-term growth and retain its attractiveness for FDI.

Continuing the trend from previous years, Malta’s corporate taxation is still the leading factor in its FDI attractiveness, with 75% of respondents acknowledging it as a pivotal aspect of their investment decision.

Following corporate taxation, Malta’s telecommunications infrastructure is recognized by 63% of investors as a considerable benefit, underscoring the country’s expanding influence as a hub for the digital economy. The emphasis on robust connectivity is especially vital for key sectors such as finance, gaming, and technology, which are integral to Malta’s economic framework.

On the other hand, the level of labor costs and skills is perceived to be attractive by only 39% and 32% of respondents respectively. The stability and transparency of the political, legal and regulatory environment is third from the bottom on the attractiveness index.

Transport and logistics infrastructure continues to be an area of concern, with only 16% of investors viewing it positively, a further decline from the previous year. Research and Development (R&D) and innovation, although marginally better at 26%, remain at the lower spectrum of the attractiveness scoreboard. 2 executive traveller  issue

Biggest Risks Facing Malta’s FDI Attractiveness

The evolving international tax landscape and the scarcity of skilled labour continue to dominate as the principal risks to Malta’s FDI allure, with each concern being flagged by 50% of respondents. Reputational risks have notably risen in prominence, now considered a significant threat by 42% of investors. This increase is indicative of a heightened emphasis on the importance of transparency and good governance practices, highlighting the critical need for Malta to uphold and enhance its regulatory framework to maintain investor confidence.

Cost competitiveness and the state of the physical national infrastructure are also among the concerns that follow closely behind, at 34% and 29%, respectively. The survey paints a picture of an investment community that is aware of Malta’s enduring economic potential, yet equally aware of the emerging risks that could potentially alter its course.

Presence in Malta in 10 Years’ Time

In an era marked by rapid economic and geopolitical changes, projecting the long-term presence of companies in any location is a complex task. Nonetheless, the investment community in Malta exhibits a resilient outlook, with a substantial 70% of FDI companies confirming their intention to sustain their presence on the island for the next decade. This figure represents a slight increase from the previous year.

Expansion Plans

This confidence is complemented by tangible growth plans, as over one-third of investors are preparing to expand their operations in Malta. Investor commitment to growth within Malta remains positive, with 38% of companies planning to expand their operations over the next year. This figure indicates a modest increase from the previous year’s 36%, highlighting a steady, but cautious, investment climate. The current percentage of companies with expansion plans is still lower compared to the more robust post-pandemic recovery period of 2022, which saw 46% of investors looking to expand.

This continuity in expansion sentiment, despite not reaching the heights of a few years ago, suggests that while investors remain optimistic about Malta’s business environment, they are also mindful of the broader economic context and its potential impact on their growth strategies.

Priorities to Remain Globally Competitive

To sustain and enhance Malta’s position in the competitive global arena, investors have identified key areas of focus for the coming decade. Infrastructure, transportation, and planning, alongside education and skills development, are at the forefront, with each area being prioritized by 46% of respondents.

Long-term economic planning is also emphasized, with 37% of investors highlighting its importance. This underscores the need for strategic foresight and the development of sustainable economic policies that can navigate the complexities of the global market and support Malta’s growth. The alignment of these priorities indicates a comprehensive approach where investors believe that Malta must invest in both its physical and human capital to remain competitive.

Malta’s Progress on Sustainability Related Factors

Malta’s investment landscape is increasingly being viewed through an environmental lens, with government support and eco-friendly infrastructure becoming more prominent in the eyes of investors. In 2024, a significant 62% of investors recognize the importance of green infrastructure as integral to their long-term investment strategies, marking a 5% increase from the previous year when considering top priorities alone.

This positive shift indicates that Malta’s environmental strategies are not only pivotal to its present appeal as an investment destination but are also essential to its sustained attractiveness for future foreign direct investment. The emphasis on eco-friendly systems underscores the growing trend among investors to align their business objectives with sustainable practices.

Technology and AI Related

Factors Attractiveness Compared to Other European Countries

Malta’s technological landscape is increasingly recognized for its competitiveness within Europe. 46% percent of respondents consider Malta’s IT capabilities on par with other European countries, and 17% even view Malta as more attractive, indicating a positive perception of Malta’s tech environment. However, 28% of respondents feel that Malta lags behind, which highlights areas for potential improvement in a rapidly evolving tech sector.

Artificial Intelligence (AI) leads the way as a key area of interest for investors, with many also looking to invest in cloud technologies and intelligent automation as drivers for future growth. Forty-five percent of respondents regard intelligent automation as a crucial component of their investment strategy, while 33% are focused on leveraging distributed cloud solutions. These technologies are seen as enablers for businesses to enhance efficiency, reduce costs, and improve adaptability.

By embracing these innovations, Malta can position itself as a hub for innovative technologies that appeal to a wide range of industries, from FinTech and gaming to health care and education. Respondents also clearly believe that secure and resilient international connectivity has an exceedingly high impact on business operations, greater than the availability of high-speed internet, which is considered to have an extremely high impact by half of the respondents.

Infrastructure Planning for Population Growth

The adequacy of Malta’s infrastructure in relation to its current and future population remains a significant concern among investors. In 2024, a substantial 70% of respondents view Malta’s infrastructure as inadequate for supporting the anticipated expansion of its population. An additional 19% perceive the infrastructure planning and development as neither adequate nor inadequate, signaling a sense of uncertainty or ambivalence about the country’s readiness.

The consensus among investors is clear: there is a pressing need for Malta to enhance its infrastructure across all sectors. The growing demands of a rapidly expanding population and economy are exerting considerable pressure on existing systems, highlighting the urgency for comprehensive and forward-thinking infrastructure development.

Skills Challenges

The recruitment and retention of specialized personnel in Malta continue to be influenced by several critical factors, with the cost of housing and living emerging as the primary concern. Over half of the respondents (51%) cite the excessive cost of living as a major obstacle to attracting and retaining international talent, particularly for roles requiring specialized skills. The housing market poses a significant challenge for both expatriates and local talent, creating a barrier to filling essential positions.

Challenges to find the required specialized skills persist. For a number of years, Malta’s skill supply has been unable to keep up with the increasing demand for specialized (and other) skills. This year, sixty-nine percent of this year’s cohort reported not being able to find the required specialized skills in the local labour market.

An Economic Vision for our nEw ProsPErity

Robert Abela Prim Minister

When Malta joined the European Union, the Government of the day promised a quick economic convergence that would bring our standard of living on the same level of other EU member states. Sadly, this did not materialise with Malta experiencing a period of stagnation, with tens of thousands of people falling into severe material deprivation. Moreover, despite the introduction of austerity measures, public debt surged up to 70% of GDP.

Following the change of Government in 2013, progressive policies injected dynamism in our economy. These policies saw Malta become the fastest growing economy in the EU, such that not only did we surpass the EU average GDP per capita, but we now also exceed that of the Euro area. Today, we boast the lowest unemployment rate in the Eurozone. The number of people reliant on social assistance has decreased by more than half, as our policies encouraged labour participation. From being one of the worst-performing countries in Europe in terms of employment rates, we are now among the best.

This economic growth was achieved while the Government invested hundreds of millions of euros in support for families and businesses, significantly improved pensions and the minimum wage, and built a new infrastructure. Despite this the public debt burden fell to 50%.

The economic goals for which this administration received a mandate in 2022 have all been achieved halfway through the legislature. As a result, we need to be more ambitious. Our economic policy must evolve so that our nation can reach the next level of development, what I like to call our new prosperity.

Our workforce is the greatest resource of our country. Our workers are the foundation of our economic model. Hence, our new prosperity requires a significant shift in labour policy. Whereas our focus was initially on facilitating the creation of new jobs, we now need to focus on developing skills. While maintaining the progressive reforms that have brought many women into the workforce and reduced reliance on social assistance, we must now focus on improving skills.

Until now, our emphasis has been on formal and academic education. While this remains important, we must now direct more resources toward vocational training and on-the-job learning. We must ensure that all our workers are equipped to help our country successfully achieve the digital and green transitions.

These changes will be the most significant our society has ever undergone, offering us the best opportunity to ensure an even-better standard of living. Beyond the new sectors these transitions will create, every existing sector will need to undergo radical change. For this to happen, we need a labour force that is different from what we have had in recent years.

To help this, among other measures, we will introduce a labour migration policy aimed at ensuring that only non-EU workers who are needed for these shifts are allowed in our country. We will invest heavily in vocational education and reverse the decision to close trade schools. Until now, we have only provided incentives to companies for training employees; now, it is time to also provide incentives to the individuals undergoing training.

Our industrial policy is shifting from one that focuses on the number of jobs created to one that emphasizes the value added created by each job. Similarly, our tourism policy is moving from growth in visitor numbers to increasing per capita tourist spending.

To improve our country’s economic model, it is essential that all strategies from ministries and entities align. This is the core of the Malta Vision 2050—a plan that will harmonise Government initiatives and establishes clear targets to be achieved in the coming years.

A clear vision that will reflect broad consultation, ensuring that together, we work towards achieving a new prosperity for our country.

A RESILIENT PAST, AN INNOVATIVE FUTURE Malta’s Economy:

Malta stands as one of the EU’s smallest nations geographically, yet its economic impact exceeds its size by far. Over the years, Malta has established itself as one of the fastest-growing and most resilient economies in the EU - a remarkable achievement built on strategic diversification and good governance.

As Minister for the Economy, Enterprise, and Strategic Projects, I am proud of how our country has prospered even in challenging global contexts. Today, our economy is not only robust but also future-focused, prioritizing innovation and inclusivity to enhance the quality of life for all Maltese citizens.

Minister for the Economy, Enterprise and Strategic Projects

Building on 2024’s Economic Momentum

Despite global challenges that affected many economies, Moody’s A2 rating and the European Commission’s positive GDP growth above the EU average reaffirm Malta’s reputation as a resilient economy that adapts swiftly to global shifts while safeguarding its core strengths.

Sectors such as gaming, digital innovation, and life sciences have flourished, and our focus on emerging industries such as esports, artificial intelligence, blockchain technology, and semiconductors offer high-quality job opportunities and providing Malta with a competitive edge on the global stage.

This year, we made significant strides in attracting investments that align with our strategic goals. Initiatives like the recently inaugurated Digital Innovation Hub (DiHubMT), investments pharmaceutical companies such as Baxter and Pharmadox, and major players like STMicroelectronics and GIMAS, all highlight our focus on attracting high-value industries.

Building on this, during the 2025 budget I announced several transformative measures aimed at sustaining and expanding these high-value sectors. Key reforms, such as the amendment of the Malta Enterprise Act to focus on high-value sectors and talent development, along with enhanced schemes, and the INDIS Act and New Industrial Policy to allocate industrial land based on value-added contributions in areas such as green tech, automation, digital, aviation, and life sciences.

An important component of our economic agenda for next year is empowering the next generation of entrepreneurs through our new start-up framework to support high-value job creation and an Incubation Centre in Ħal Far focusing on sectors of renewable energy, food tech, smart manufacturing, and life sciences. In parallel, we aim to continue to advance our digital transformation efforts. Key measures include the Central Data Repository powered by AI and blockchain to streamline compliance and reduce bureaucratic delays, a Digital Identity Wallet for secure government service access, and a High-Performance Computer that will reduce R&D costs for researchers.

Addressing ongoing challenges such as human resource shortages is important. The budget includes targeted measures to invest in education and skills development, coupled with targeted measures to drive sector growth. Measures like the Video Game Training Program in partnership with Unreal Engine, the Interactive Media Academy, and the Aviation Academy will equip the workforce with the necessary skills for high-quality jobs and ensuring our workforce is prepared for future demands. Furthermore, the AI Strategy will be updated to focus on leveraging artificial intelligence to enhance citizens’ quality of life.

This year, Malta made significant progress in the semiconductor industry, especially with the expansion of ST Microelectronics mentioned earlier. Our country was given approval, by the Chips Joint Undertaking to establish the first Competence Center, an important step that will boost further Malta’s profile in the European semiconductor landscape.

These measures ensure that our economy remains competitive, driven by quality, innovation, and long-term prosperity.

Malta’s Strategic Vision: Roadmap to 2050 Malta Vision 2050 is not just a roadmap for economic success; it is a blueprint for creating a sustainable, inclusive, and innovation-driven future. With clear milestones set for 2035, this vision aligns our growth in the digital and advanced manufacturing sectors with advances in sustainability, ensuring that Malta’s economic success continues to enhance the quality of life for all Maltese citizens.

Our commitment to creating an interconnected economy means prioritizing investments in sectors that foster innovation, promote environmental responsibility, and support high-value job creation, as seen in the budget measures. This holistic approach will not only benefit citizens for today, but also for generations to come.

Looking Ahead

Economic success must translate into tangible benefits for the people. Malta’s vision is to create a nation where a thriving economy must serve its citizens first and foremost. Looking ahead, we will continue to prioritise high-quality investments that align with our strategic goals by creating high-quality jobs that offer stability, competitive wages, and growth opportunities. It also means strengthening our infrastructure, supporting SMEs, and maintaining an environment that fosters creativity and entrepreneurship.

None of these goals can be achieved in isolation. As a small nation, Malta’s strength lies in collaboration between government, industry, academia, and the people themselves. It is this collective effort that has brought us success in the past and will ensure our prosperity in the future.

As we look to 2025 and beyond, our mission remains clear: to build a Malta that is resilient, innovative, and inclusive—a nation where everyone can thrive. Together, we can create a future that reflects the very best of what our country stands for.

mAltA At A crossroAds: STRENGTHENING RESILIENCE AND EMBRACING CHANGE

Jerome Caruana Cilia Shadow Minister for the Economy and Enterprise

We’ve almost reached half-way through the present decade and a sense of permanent instability dominates the news cycles at all times. Europe’s borders are surrounded by wars and political instability. The traditional drivers of the Union, France and Germany, are going through a political and economic storm. Climate change and social tensions add to the mix. These challenges impact Malta’s small but interconnected economy and demand strategic action to safeguard Malta’s economic foundations and position it for future success.

While addressing global shocks, Malta also faces internal challenges. As it works to restore its credibility and reputation within the international community, it is also seeking to determine its path for the years ahead. Malta stands at a critical juncture, where bold decisions are required to protect its strengths and transform challenges into opportunities.

On the positive side, Malta’s history demonstrates its ability to adapt to shifting circumstances. Whether transitioning from a military-reliant economy in the 1970s or transforming into a financial services hub in the 1990s, the country has consistently embraced change. These moments were marked by strategic

decisions to diversify its economy, invest in its workforce and modernise infrastructure.

Today, the stakes are even higher. The global economy is moving faster than ever, with technological innovation and regulatory changes demanding agility and foresight. Malta’s ability to respond to these trends will determine its continued relevance and competitiveness.

Strengthening the fundamentals

Faced with these challenges, safeguarding the fundamentals that underpin the country’s growth is essential. These can be

summarised in three key areas: reputation, infrastructure and human resource development.

First, reputation is a cornerstone of Malta’s success. Malta’s credibility thrives on trust and transparency, and Malta’s global competitiveness depends on maintaining high standards of governance and compliance. Proactively addressing concerns about the regulatory environment will be crucial to securing the trust of international investors and reinforcing Malta’s position as a trusted jurisdiction.

Second, Malta must prioritise investment in critical infrastructure, including energy, transport, and healthcare. These systems are essential not only for the well-being of citizens but also for attracting foreign investors. Modern, sustainable infrastructure sends a strong signal that Malta is committed to long-term economic resilience.

Third, the importance of personal development cannot be overstated. As the economy becomes increasingly reliant on technology, Malta must continue investing in upskilling and reskilling its people. Competencies in areas like artificial intelligence, blockchain and cybersecurity are now essential for competitiveness. Malta’s multilingual and educated workforce remains one of its greatest strengths, but continuous investment in education and training is needed to stay ahead of the curve.

The Power of collaboration

One of Malta’s key advantages lies in its collaborative approach to economic development. Policymakers have worked

closely with industry experts to shape strategies that balance ambition with practicality. This bottom-up approach ensures that Malta’s key economic drivers, such as financial services, gaming, the pharmaceutical industry, aviation or the maritime sector adapt to the developing realities around us.

Political leadership also has a crucial role to play. Providing clear direction and consistent support for the financial services sector is vital for maintaining momentum. Malta’s history of bipartisan support for financial services legislation is an encouraging sign that the country can continue to rally around shared economic goals.

Future-focused action

As Malta looks to the future, complacency is not an option. To remain competitive, Malta must enhance its regulatory frameworks, improve efficiency, and maintain its reputation for excellence. Malta’s ability to attract investment depends on its commitment to transparency and governance. By meeting these high standards, the country can continue to draw quality investors who contribute to long-term economic growth.

At the same time, Malta must embrace technological innovation. The digital transformation of many industrial and services-based sectors presents opportunities to attract new business, but it also requires bold investments in infrastructure and education. Even in tourism services, Malta should aim to enhance its quality offering which attracts the discerning traveller.

Malta’s resilience is no accident. It stems from a willingness to adapt, innovate, and unite in the face of challenges. The country’s ability to turn external shocks into engines of growth has been proven time and again.

As it confronts current and future challenges, Malta must build on this legacy of resilience. By strengthening its fundamentals, fostering collaboration, and embracing technological change, Malta can not only withstand global pressures but also seize new opportunities.

The road ahead will require courage, innovation and a commitment to excellence. But if Malta’s history teaches us anything, it is that this small nation has the talent, determination, and vision to succeed. Together, Malta can write the next chapter of its success story—a chapter defined by innovation, growth and prosperity.

thE mAltEsE Economy: LESSONS FROM 2024 AND HOPES FOR 2025

As 2024 draws to a close, it is essential to reflect on the state of Malta’s economy, the strengths it has demonstrated, the challenges it faces, and the vision required to secure a better future. Malta is at a crossroads. While economic growth has been achieved over the past decade, we must acknowledge the reality that the current model is unsustainable without a shift in direction. Both government and opposition now agree on one fundamental truth: quality must take precedence over quantity.

The State of Play

The economic model introduced in 2013 has, by any standard, delivered significant results. Consumption-driven policies, combined with population growth have fuelled headline economic growth, allowing Malta to outperform many European peers. However, at best, since 2019, this economic model has shown cracks that this government has continually ignored. Three critical issues stand out:

1. Overpopulation and Density -Malta’s population has grown rapidly, making us one of the most densely populated countries in Europe. While this growth has driven demand and GDP, it has simultaneously strained our limited physical resources. Our islands are finite in size; infrastructure, services, and natural spaces are under significant pressure.

Ivan Bartolo Shadow Minister for Employment and New Economic Sectors

Maltese citizens are feeling the effects in their daily lives, from crowded roads to reduced access to green areas and public amenities.

2. Infrastructure Lagging Behind - Rapid population and economic growth were not met with equivalent long-term planning. Health, education, and transport systems are struggling to cope. The congestion in our roads is a daily frustration, our healthcare system is overstretched, and educational institutions face resource challenges. These issues impact the quality of life and erode the sense of well-being among citizens. A country’s economy is not measured solely by GDP growth but by the well-being of its people, on this measure, Malta must do better.

3. Rising Debt and Fiscal Responsibility - The government’s heavy reliance on debt to fuel growth and maintain public spending raises concerns. While public investment is necessary, borrowing without careful prioritization of capital projects can burden future generations. This year, debt levels reached unprecedented highs, prompting valid questions about long-term sustainability. We must ensure that every euro borrowed delivers value, value that improves infrastructure, creates high-quality jobs, and generates future government revenues.

A Vision for 2025 and Beyond

In the 2024 Budget, the government announced its intention to create an economic vision for Malta extending to 2035. This long-term strategy is both timely and necessary. However, a vision on paper will not be enough. The government must demonstrate the ability to transform ideas into tangible results that improve citizens’ lives. The country demands vision and action. To move forward, the Nationalist Party proposes three immediate priorities:

1. Measurable Deliverables for 2025-2027 - The government must outline concrete projects and milestones it commits to achieving over the next three years. These should include major investments in public transport, healthcare modernization, and green spaces, investments that tangibly enhance the quality of life. Such projects should also drive new value-added economic activity, moving Malta towards industries that are sustainable and resilient.

2. Financing Transformation Responsibly - We cannot afford to raise debt without accountability. The government must clearly define how the economic transformation will be financed, including partnerships with private stakeholders, EU funding opportunities, and strategic reforms to increase government revenues.

3. A New Economic Model for Quality Jobs - Malta’s future lies in industries that add value, technology, renewable energy, innovation, and education. We must create opportunities for skilled workers, incentivize businesses to innovate, and provide pathways for our youth to thrive in high-quality jobs. A strong, diversified economy will ensure resilience against global economic shocks.

The Global Context

Globally, 2024 has been marked by uncertainty. Inflationary pressures persist, interest rates remain uncertain, and geopolitical tensions weigh on global trade. Malta, as a small, open economy, cannot shield itself entirely from these external realities. However, we can adapt, plan, and pivot towards a model that prioritizes quality, sustainability, and resilience.

Conclusion: A Call for Unity and Action

As 2024 comes to an end, there is reason for both concern and optimism. The challenges are significant, but they are not insurmountable. What we need now is leadership that is proactive, accountable, and visionary. The government’s promise to deliver an economic vision by March 2025 is an opportunity, but it must be more than a “tick-box” exercise. Deliverables, financing plans, and measurable outcomes must be the cornerstones of this transformation.

Malta cannot afford to stand still. We owe it to ourselves and to future generations to prioritize quality of life, sustainable growth, and economic resilience. With collective effort and sound leadership, Malta can chart a brighter, better path forward, one that delivers not just growth, but true peace of mind for all its citizens.

Malta’s Economic Prospects for 2025: A Vision for WELLBEING and Quality of Life

As we look towards 2025, Malta’s economic prospects are closely intertwined with the upcoming Malta Vision, set to be unveiled in the first quarter of 2025. This strategic framework is expected to address not only economic growth but also the aspirations of the Maltese people for enhanced wellbeing and quality of life. This process of reflection on what Country we want to be is bound to set the tone for clear strategic national pillars next year.

Malta has shown remarkable resilience in the face of global economic challenges, including the impacts of the COVID-19 pandemic and geopolitical tensions. According to the European Commission’s 2024 report, Malta’s GDP is forecasted to grow by 5.0% in 2024, with continued positive indicators into 2025 (estimates of 4.3% GDP growth quoted). Such growth can be attributed to a diversified economy, with strong sectors such as tourism, information technology, and financial services while supported by consistently strong local consumption.

However, while economic growth is promising, it is essential to focus on how this growth translates into improved quality of life for citizens. The Malta Vision aims to do precisely that - by targeting key issues such as sustainable development towards improved competitivity, environmental sustainability, and higher standards of social equity. An essential component of this vision should involve balancing economic expansion with the wellbeing of the population, ensuring that growth does not come at the expense of environmental budgets or societal needs.

David Xuereb

Chairman Malta Council for Economic and Social Development (MCESD)

“This strategic framework is expected to address not only economic growth but also the aspirations of the Maltese people for enhanced wellbeing and quality of life.”

Experts suggest that investments in green technologies and sustainable practices are crucial to this balance. The 2021 National Environment Policy outlines Malta’s commitment to reducing carbon emissions and promoting sustainability. Investing in renewable energy sources, such as solar and wind, is expected to create new job opportunities while improving quality of life. Reports highlighted that roles in sustainable industries will grow significantly, providing high-quality jobs that contribute to both economic stability and environmental health.

Furthermore, the healthcare sector plays a vital role in shaping Malta’s economic landscape and wellbeing by offering quality services and attracting medical tourism. World Health Organization recent analysis indicated that improving healthcare infrastructure is vital for long-term economic stability and citizen satisfaction. If the Malta Vision incorporates healthcare accessibility and innovation, we can expect returns

not only in national health but also in productivity that will further enhance economic performance.

Digital transformation remains a focal point of Malta’s economic strategy. Initiatives to foster innovation in technology and information systems have already begun to pay dividends. A recent survey reported that 73% of business leaders in Malta acknowledged that embracing digital transformation positively impacted their operational efficiency and revenue. As Malta moves towards 2025, emphasizing digital literacy and training will be essential in preparing the workforce for emerging roles in technology. This aligns with the national skills vision of creating a more skilled labour force that fulfils the aspirations of young Maltese citizens seeking meaningful employment.

Social equity is paramount if Malta is to enjoy the fruits of its economic growth. The latest report by the OECD shows

that income inequality in Malta, while lower than in many EU countries, still poses challenges for many families. The Malta Vision should aim to address disparities by focusing on policies that promote inclusive growth. By ensuring that all segments of society feel the benefits of economic success, Malta can strengthen its social fabric and foster a sense of community well-being.

Moreover, housing affordability is another pressing issue that must be tackled. The rise in property prices has raised concerns among young people and families. According to a number of reports, housing costs have increased significantly, making first-time buyers’ aspirations challenging.

As our Country prepares to unveil the Malta Vision for 2050, it is crucial that all stakeholders collaborate to turn aspirations into actionable policies. Engaging all political parties, social

partners and citizens in the development process will foster a sense of ownership and ensure that the vision reflects the hopes and needs of the population.

In conclusion, Malta stands at a pivotal moment. The anticipated economic growth for 2025 brings a wealth of opportunities, but it must be strategically harnessed to enhance the quality of life for Maltese citizens. By focusing on skills transformation, sustainability, competitivity, healthcare, digital transformation, social equity, and housing, Malta can chart a course towards a future where economic prosperity and wellbeing coexist harmoniously. As we eagerly await the Malta Vision, it is imperative that all voices are heard, and partners unite to build a brighter future for all.

Malta’s Economy in 2025Growth & Challenges

According to the latest EU Commission Autumn 2024 economic “on the back of strong domestic demand and export performance.” The EU Commission’s forecast is that Malta’s GDP is to grow by 5.0% GDP in 2024 and then grow by 4.3% in 2025 and 2026.

This growth is mainly driven by tourism and other services sectors like recreational services, as well as professional, IT and financial services. On the other hand, employment should continue on the path of robust growth as it has to rely on high immigration given the intense labour and skills shortages on the domestic market. Employment growth is set to decelerate but remain strong at 3.1% in 2025 and at 2.8% in 2026. On the hand, the government deficit is set to decline to 4.0% of GDP in 2024 and is expected to decrease further in 2025 and 2026, remaining above 3% over the forecast horizon.

Taking a closer look to the latest published Q3 2024 GDP figures, one can see that the top 3 sectors which registered the

highest Gross Value Added (GVA) growth in the period Q1 to Q3 2024 when compared to Q1 to Q3 2023, these are:

1. Professional, scientific and technical activities; Administrative and support service activities

2. Wholesale and Retail trade; repair of motor vehicles and motorcycles; Transportation and storage; Accommodation and food service activities

3. Public administration and defence; Compulsory social security; Education; Human health and social work activities

The professional sector covers various areas including architectural and engineering activities, Scientific research and development; Advertising and market research; Veterinary activities; - Rental and leasing activities (not property), Employment activities including temping agencies, travel agency & tour operator, Security activities, Cleaning activities and Office Admin & Support. So, it is likely that a mixture of high value added jobs and low value added jobs are part of this sector.

The second sector is made up of Wholesale and retail trade, Transporting and storage, Sea, land and air transport and accommodation and food service activities. This is a sector which largely covers local wholesale and retail trade and various other activities directly linked to tourism. With tourist arrivals numbers ballooning as they are doing, it is no surprise that this sector is a leading economic growth sector in Malta.

The Professional and Wholesale and Trade sectors (the first two sectors above) cover 29% of the GVA increase between Q1 – Q3 2024 to Q1 – Q3 2023. This rises to 41% of the increase in GVA for the same period mentioned above, if we included the 3rd sector covering Public Administration.

It is obvious that the above sectors, especially the first and second sector listed above, rely on a number of jobs performed by third country nationals. These are sectors which are presently contributing mostly to economic growth. Now, as I have been advocating for numerous times, we need to aim at achieving higher productivity to grow our economy by not having some 20,000 persons coming to Malta annual indefinitely. Agreed. As always, the devil is in the detail. We do have a history of going from one extreme to another in a short period of time, with the obvious consequences.

However, here we need to thread carefully. I am referring explicitly to the upcoming economic migration policy. Such policy, while I fully agree that it is needed, needs to be crafted in a way that does not give big shocks to our economy. An economy is ultimately like a big oil tanker and bringing changes to something as fundamental as the labour market needs a long transitionary period which is assisted hugely by the right mix of incentives to support massive investments needed in digitalisation. Such investments need time to be made. We need to be sure that such policy is based on a well-crafted plan of how we need to get from point A to Point B, in a realistic timeframe.

With our annual public deficit running in very high numbers, if our economic growth falters, we risk creating more problems than the ones we are trying to solve, as we need economic growth to make sure that our growing public debt is to remain on a sustainable footing.

This brings me to the latest review issued by the Malta Fiscal Advisory Council with regards the 2025 Budget. The Council believes that there is potential for the economy to grow further than 4.9% in 2024, as forecasted by the Ministry of Finance (MFIN), as we had a stronger-than-expected performance in the first half of 2024, where the economy grew by 6% in the first half of 2024, exceeding the MFIN’s full-year projection of 4.9%. MFAC outlines that MFIN’s forecast implies a slowdown in the second half of 2024, but soft indicator data does not support this projection. Moreover, MFAC highlights that there is potential for stronger domestic demand in 2025, as it believes that domestic demand could outperform expectations in 2025.

Having said so, the MFAC cautions that Malta’s reliance on domestic demand-driven growth is of concern, and it stresses the importance of transitioning to export-led growth to achieve sustainable economic expansion in the medium term.

The MFAC’s assessment also highlights several risks associated with the fiscal projections and debt sustainability, whereby fiscal deficit reduction is being driven by GDP growth. The MFAC clearly notes that the projected decline in the fiscal deficit is primarily driven by GDP growth rather than substantial deficit reduction measures. Furthermore, the Council identifies downside risks in some expenditure categories, particularly compensation of employees and gross fixed capital formation in 2024, while it also acknowledges that expenditure could be lower than projected, with potential spillovers to 2025. Overall, the MFAC sees upside potential in government revenue, particularly from direct taxes.

The Council reiterates its concerns regarding the risks associated with the current fixed energy price policy, which could undermine fiscal targets. Despite these risks, the MFAC acknowledges that the fiscal projections indicate compliance with the Excessive Deficit Procedure (EDP) requirements and the new expenditure rule, with the debt-toGDP ratio projected to remain well below the 60% threshold.

Based on its assessment, the MFAC makes several key recommendations, which I believe should be well noted and given their due importance. The MFAC urges the government to prioritise a shift from domestic demand-driven growth to export-led growth. This requires enhancing competitiveness, particularly by improving labour productivity. On the other hand, the MFAC emphasises the importance of prioritising expenditure that ensures quality, efficiency and sustainability in public finances. It thus advocates for reallocating resources towards productive capital investment. The council also advocates for the revision of the fixed energy price framework to adopt a more targeted approach that incentivizes energy efficiency. Finally, the MFAC urges the government to strictly adhere to its fiscal targets, particularly given Malta’s EDP status and to utilise any higher-than-projected government revenue to accelerate fiscal consolidation and build fiscal space, whilst exploring expenditure restraint measures, particularly on non-productive spending, to create more room for fiscal adjustment in 2025.

Quality Workers: A COLLECTIVE EFFORT

Malta continues to demonstrate robust economic growth, driven by strong domestic demand and impressive export performance. Following a GDP growth of 5.0% in 2024, the European Commission’s latest macroeconomic forecast projects Malta’s economy to continue its expansion at a rate of 4.3% for both 2025 and 2026. Furthermore, the government deficit is expected to reduce to 4.0% of GDP in 2024, with further decreases anticipated in the subsequent years, albeit remaining slightly above the 3% threshold throughout the forecast period. These positive projections set an optimistic tone for the year ahead, a pivotal one for the country as the government outlines its Vision 2050an ambitious strategic direction aiming to enhance the quality of life for all residents.

The realization of the country’s economic vision strongly depends on human resources, a challenge that spans all of Malta’s economic pillars. In the first quarter of 2024, the Labour Force Survey recorded a total employment figure of 306,571, with foreign workers comprising 28.1% of this total, as noted

in the 2024/2025 Misco Salaries and Benefits Report. This trend is particularly pronounced in sectors such as construction, healthcare, and hospitality, where the demand for skilled labor has surpassed the local supply. Concurrently, data presented by Finance Minister Clyde Caruana in response to parliamentary inquiries reveals a significant increase in Maltese professionals in fields such as law, architecture, and accounting, growing from 12,700 to 15,300 over the past five years. This data underscores the evolving landscape of the local workforce and highlights the necessity of incorporating these realities into the broader economic strategy, especially Vision 2050, which must prioritize human talent development.

Recognising the indispensable role of foreign talent in Malta’s economic development, the focus remains steadfastly on quality—a priority echoed in the government’s Budget 2025 and its strategic visions for tourism and the economy spanning the next decade. Achieving this quality hinges on an education system that is responsive to contemporary needs, equipped to

nurture a knowledgeable, skilled, and effective future workforce. Despite achieving its lowest rate of early school leavers at 10% in 2023, there remains a gap compared to the European average of 9.5%, signaling the need for ongoing educational enhancements.

Moreover, the government continues to champion quality within the current local workforce, addressing challenges linked not only to foreign but also local workers. Recent Eurostat figures indicate that 40.8% of the population possesses less than upper secondary education. The government’s focus in recent budgets on reskilling and upskilling, exemplified by initiatives like the Skilling Fund from Malta Enterprise, underscores a strong commitment to workforce development. However, the journey towards a skilled workforce is a collaborative effort. The private sector is pivotal, expected to lead and actively participate in reskilling and upskilling initiatives. Companies are encouraged to embrace and invest in in-house training programs, supported by fiscal incentives and necessary academic or technical backing.

Omar Vella MIM President

Educational institutions and NGOs, including the Malta Institute of Management, also play crucial roles by offering courses, events, and networking opportunities that contribute to a more skilled workforce. Ultimately, cultivating a quality labor force transcends governmental responsibility; it is a national imperative involving every sector of society. It is incumbent upon every individual to engage, adapt, and enhance their skills to contribute effectively to Malta’s economic momentum and the realization of Vision 2050.

“The government continues to champion quality within the current local workforce, addressing challenges linked not only to foreign but also local workers. Recent Eurostat figures indicate that 40.8% of the population possesses less than upper secondary education.“

Andrea Trapani Founder and CEO, Executive Aviation Malta

Malta’s Role in an Evolving Private Jet Industry

According to the recent report Straits Research Market Report: Business Jet Market Size, Share, Growth & Forecast by 2033 the global business jet market size was valued at USD 17.01 billion in 2024 and is projected to reach from USD 17.44 billion in 2025 to USD 21.25 billion by 2033, growing at a CAGR of 2.50% during the forecast period (2025-2033).

The report notes that North America is the most significant shareholder in the global business jet market and is expected to grow at a CAGR of 1.85% during the forecast period. The United States owns 61.6% of the whole business jet fleet now in use worldwide. Europe is expected to grow at a CAGR of 3.16%, generating USD 3.03 billion during the forecast period.

Asia-Pacific is anticipated to grow significantly during the forecast period. China has put more emphasis on general aviation during the past few years. The Chinese government has implemented changes to boost the effectiveness and allocation of aerospace over the last few years. China established up to 50 new general aviation airports in 2020, demonstrating the importance the government places on building the infrastructure for private aviation. The demand for corporate aircraft

has been fuelled by Chinese businesses’ expansion into international markets. However, because of the high expense of ownership, many businesses now favour affordable charter planes.

Brazil is anticipated to grow steadily during the forecast period. Currently, there are 787 business aircraft in service in Brazil, and 70% of travel there is for business rather than 30% for vacation. There are still more than 60 charter operators in Brazil, even though there were over 300 active operators at the beginning of 2000. Belo Horizonte to São Paulo and São Paulo to Rio de Janeiro, both less than 350 miles apart, are two of the most well-liked charter routes. The economy and aviation infrastructure have limited the development of business aviation in the nation. However, the country has a very high potential for growth. The GCC’s most operational business aircraft are located in Saudi Arabia. The increase of High-Net-Worth Individuals and Ultra-High-Net-Worth Individuals in Saudi Arabia is mostly to blame. As a result, the number of business flights in the nation is continuously rising. Additionally, it is predicted that the rise in HNWI and UHNWI in Saudi Arabia will promote the acquisition of private aircraft during the forecast period.

And in this evolving international private jet industry, Malta also has its fair share to play in the coming years. The pandemic years saw an increase in private jet purchases as well as an increase in charter bookings. Malta saw an increase in private jet registrations of 200%. The challenges for the island in the industry are still there. Malta is not often considered for luxury internationally’, but the government together with the industry are making leaps and bounds in improving the offering to the customer. Entertainment and hospitality venues now offer superior quality with over 40 restaurants currently featured in the Michelin Guide, 6 of which have earned a star. Hotels are also improving their offering with it an array of extra guest services to ensure guests truly have a 5-Star plus stay. Moreover, Malta is a great island to explore summer and winter as the climate is temperate most of the year

From an Executive Aviation Malta point of view, Malta’s potential in the industry can be envisaged from what we achieved this year. This year we improved the overall internal structure focusing mainly on operational safety procedures and improving services to our customers in general. We have beefed up our operations and administration team to cater for more business and have also introduced additional vehicles to our fleet. The year also offered several challenges in finding the right manpower with the right frame of mind and passion for the job. We also faced several operational issues due to limitations in local facilities. The fact that we have managed to handle a record number of movements this year without losing a single client is a testament though that the Executive Aviation Malta is well performing in such a cutthroat industry.

2024 also marks an important milestone in the company’s history. Indeed, Executive Aviation Malta has signed a strategic cooperation agreement with ExecuJet Aviation Group making us part of a global FBO brand with more than 25 prime locations worldwide. This cooperation agreement came following lengthy negotiations, audits and approvals and by far makes us the biggest and most renowned FBO chain in Malta guaranteeing added peace of mind and security to all our customers. It also comes months before the official opening of Dubai’s Al Maktoum International Airport FBO / Private Terminal, an innovative establishment, a ground-breaking venture in the region, encompassing a generous 15,000 square meters spread over three levels. Within this exceptional facility, visitors will encounter a diverse range of services encompassing luxurious lounges, a signature Majlis Lounge as well as a VIP lounge adjoined by a cutting-edge boardroom space. Furthermore, the facility will introduce unprecedented features incorporating royal and exclusive private suites coupled with an invigorating spa offering a wide range of treatments, as well as a sophisticated cocktail and cigar lounge among other services yet to be revealed.

The year to come 2025 looks promising both for Executive Aviation Malta / ExecuJet Malta as well as for the industry at large. We remain committed to further strengthen our core business and ensure a healthy growth. We also strive to make 2025 another successful year for our company and the Malta in such a fast growing industry.

Readjusting our ECONOMIC SECTORS in 2025

Notwithstanding the increase in government spending due to the global pandemic, as well as the provision of subsidies covering the energy price shocks, Malta’s economy is fairly doing well compared to its peers.

Economist

Clint Flores

Indeed, the European economies are not achieving enough economic growth to rebalance the deficit and debt to GDP ratio. Au contraire, Malta’s economic growth is allowing the Maltese government enough fiscal space. The agreed universal metric to measure deficit and debt to GDP is important. A higher economic growth allows the Maltese government to reduce taxes, provide for energy subsidies and introduce additional social measures that promote consumption. These are all measures that provide a safety net to our consumers in bad times. It is mostly Keynesian economics. The government spends more during bad time and recovers revenue in good times. Abroad the story is completely different. The European economies are completely indebted. The largest economies are risking a contagion affect on the Euro area.

On the other hand, while we are achieving higher economic growth, we must accelerate our green transition. We need to shift our attention to long term planning. It is good to promote economic measures that expand our economy, but we also need to make sure to readjust the supply side. Whereas the EU is not agreeing with the Maltese government on the energy subsidies, we still need to see how to balance this gap. At some point it will come back to haunt us. Strategically, the Maltese government should accelerate the green transition, while at the same time keep economic stability through the energy subsidies. For instance, the Maltese government must shift its attention to those sectors that will be highly impacted by climate change and work along with the financial and banking industry to provide credit for a smoother transition. It is also an opportunity for banks to tap into new investments and promote future proof businesses.

What I mean is that those sectors that will be affected by physical and transition risks, must be given due attention. Whether we like it or not the EU will keep on pushing to decarbonise the continent. To achieve this goal, what needs to be done is surely a calibration of those sectors that highly contribute to climate change. Amongst others we have the energy sector, the transport sector, the accommodation and construction sectors. These sectors are highly sensitive to climate and are designated under the statistical NACE Codes A to H and L. In 2025, the Maltese government must embark on a new plan. Some of our economic sectors require a readjustment. They need to be calibrated towards a lower transition risk.

Also, we must forget about projects that have now become the order of the days. We can think better. The idea of having apartments and hotels built all over Malta, is something that pertains to the past. Some prime sites can be readjusted to promote green hubs for startups. I saw this happening in Estonia and Lativa. I do not see why we can’t do it here. Certain historical buildings were turned into knowledge hubs, providing software development, reporting studios development for regulations to cover the banking and financial industry, and other highly skilled jobs and expertise.

Surely, we need to plan better in 2025, especially on how to manage our resources. Some short term strategies that eases the strain on our resources could be explored, including teleworking. Research shows that productivity increases not decreases. After the Covid-19 pandemic people changed. And the most successful businesses will be those that promote flexibility and family friendly measures. Practically, those that will be able to retain talent. I understand that infrastructure works around Malta are warranted, also to upgrade our road and energy networks. They produce the same inconvenience as if we are refurbishing our own home.

However, what needs to be readjusted though, is the completion of works on time. It does create inconveniences to residents in our towns and villages. Nevertheless, the Maltese government is doing its outmost to provide a better standard of living, even though the negative economic effects are sometimes felt. Surely, I prefer the problems of economic growth rather than not having enough opportunities for the Maltese, and enough monetary resources to provide for the low and middle-income earners. In 2025, the Maltese government’s focus must be on those sectors that are labour intensive. We must look what the gross value added of each sector is for the Maltese economy relative to the strains exerted on our infrastructure.

Lastly, 2025 is an important year for the negotiations of the new Multiannual Financial Framework of the EU. Some funds will shift to upgrade Europe’s infrastructure in what we know as military mobility, attached to defence. This is allowed under the treaty. However, we must tap into climate defence and try to acquire enough EU funds to upgrade our infrastructure for climate security. We need to keep on upgrading the infrastructure in our highly urbanised areas. We can build water defence structures to mitigate flash floods problems in the future, and also provide better climate security for our citizens. There are many projects that the government can consider for the year 2025. The future looks good.

Malta: “The Country of Doers in Film”

Michael A. Pruss

Executive

Producer

Gladiator 2 and Napoleon

The Malta Film Commission’s dedication ensures that the island remains a nation of action, achievement, and cinematic magic.

The Malta Film Commission has made 2024 a banner year for the country’s thriving film industry. Known for its dedication, professionalism, and unmatched versatility, the commission has solidified Malta’s reputation as a premier destination for productions of all sizes. From independent film and TV series to Hollywood blockbusters, Malta has proven that its infrastructure and workforce deliver excellence no matter the challenge.

Michael Pruss aptly remarked that Malta is “a country of doers.” This spirit shines through in every production that chooses the island as its canvas. With diverse landscapes and skilled professionals, Malta seamlessly supports various projects. Productions in 2024 span an impressive spectrum: from Ridley Scott’s epic “Gladiator 2” to the whimsical “The Magic Faraway Tree” and the thrilling “Karen Pirie – Season 2”. Whether it’s a high-budget sequel like “Jurassic World - Rebirth” or gripping dramas like “Lockerbie”, Malta provides the ideal environment to bring stories to life.

“I love Malta. I always keep coming back. I always find a new space to shoot.”

Ridley Scott

Beyond blockbusters, Malta continues to attract independent films and series. Productions like “The Wives”, “Dad’s Red Cap”, and “How to Get to Heaven from Belfast” highlight the diversity of projects Malta accommodates. Notably, Jason Statham leads the cast of “Mutiny”, further cementing Malta’s reputation as a go-to destination for high-profile projects. This year, the island has hosted an extraordinary roster of talent, including Denzel Washington, Scarlett Johansson, Rebecca Ferguson, Kristen Stewart, Paul Mescal, Jonathan Bailey, Mahershala Ali, Pedro Pascal, Jason Statham and more. These actors underscore the magnetic pull of Malta’s film industry. 2024’s dazzling lineup proves that Malta is more than a picturesque backdrop; it is a partner in creative storytelling. The Malta Film Commission’s dedication ensures that the island remains a nation of action, achievement, and cinematic magic.

Pamela Cann Rodgers

Strategic Communications Consultant & Lawyer

Can MALTA afford to REDUCE foreigners?

Currently, Malta is dependent on foreigners for its major industries: construction and tourism. Migration and the economy go hand in hand, as economic factors are crucial in determining people’s quality of life.

In the 1950s and 1960s, many Maltese citizens left for Australia in search of better work opportunities. Today, we are witnessing an influx of Third Country Nationals (TCNs) entering our country for work, much like the Maltese once did in Australia. Their motivations appear to stem from two factors; more opportunities and the desire for an improved quality of life for themselves and their families.

TCNs

In the past, TCNs viewed Malta as a stepping stone to reach Europe but as Malta started to grow, employers needed a larger workforce so they started providing more opportunities with better pay resulting in many choosing to stay here.

Many do not plan on retiring in Malta, they come to work to eventually return to their families. Consequently, they rent property providing stability and a regular income to numerous Maltese families who own such properties.

With a median age of 43, half of the Maltese population is older than this age. Given a low fertility rate, Malta is unlikely to sustain its ageing population. Consequently, Maltese citizens cannot solely fund their parents’ pensions through taxes unless the government substantially increases them. Currently, this is not a concern as foreigners are offsetting the cost, with about 60,000 TCNs paying about 85 million euro to the Government as reported by the Minister for Finance. If foreigners leave, will the Maltese be expected to make up the amount of money the foreigners pay?

Pensions are just one aspect of the contributions made by TCNs, yet they significantly impact every Maltese citizen, reaching beyond business owners to everyday people.

Tourism

Tourism is one of the strongest sectors in our economy. Last year, visitor numbers returned to pre-pandemic levels, and in the first two months of this year, there was an increase of more than 26%, which goes to show how strong this industry is.

What many overlook is that it is useless to have customers with no one to serve them. Maltese people cannot sustain our booming economy due to a shortage of workers to fill the jobs demanded by the industry. There have been cases where employers have closed shop or could not expand because they could not find enough employees.

Ironically, tourism relies heavily on a predominantly foreign workforce (TCNs), while its success depends on attracting more foreigners (tourists). This creates a contradiction, with many criticising foreigners but yet all praying more to come because they continue to fill up our restaurants and hotels boosting our economy even more.

During the summer, many Maltese voice their frustrations related to power outages, drainage issues polluting our seas, and littering. These problems are often linked to the surge in tourists during peak season. Many have proposed shift in strategy by attract quality over quantity but are we ready to tell our hoteliers and restauranteurs to close because there are simply way too many, and with fewer tourists, they will no longer be needed, risking their livelihoods?

Construction

The construction industry has always been the elephant in the room. Many criticise the issuance of permits, yet no one wants this industry to slow down because our economy rests on it. Various legislative amendments have ensured construction companies adhere to certain standards whilst building. Furthermore, there is stricter enforcement to ensure compliance with Health and Safety regulations in order to protect all workers.

Nonetheless, it is a known secret that the construction industry operates on the importation of workers to keep up with the demand. Finding workers has become increasingly challenging since many Maltese people are pursuing careers in other sectors which require less physical strain. Making it more difficult to bring TCNs into the country could potentially result in further project delays and increased costs, which have to be borne by the Maltese.

Change is necessary, but without a plan, it will be catastrophic

The government has repeatedly promised change, whether through pledges for a new economic model or enhancements to the current one; the difference boils down to political semantics. However, change has to be implemented gradually with a plan, which doesn’t shift every 5 or 10 years. Shocking our system or forcing too much change too soon will lead to catastrophic results.

In all scenarios, change will come at a cost, but proper preparation will ease the burden on our people. I hope that whatever changes our policymakers propose in the upcoming budget will avoid populist approaches and prioritise the long-term well-being of all Maltese citizens?

Economic outlook for 2025: Global contExt and malta’s trajEctory

Fabri Economist

As the world moves further into the 21st century, the economic narrative of 2025 is marked by recovery, transformation, and resilience. Globally, nations continue to adapt to the ripple effects of the COVID-19 pandemic, addressing challenges like inflation, disrupted supply chains, and the imperative for sustain-

able growth. The global economy has shifted its focus toward digital innovation, sustainable development, and navigating the complexities of geopolitical tensions, particularly as economic power increasingly disperses between established and emerging markets. In Europe, this era is defined by an ambitious push for a green and digital transition. Recovery funds from the European Union, coupled with policy initiatives like the Green Deal, are reshaping industries, fostering innovation, and addressing long-standing structural challenges.

Within this dynamic global and European framework, Malta finds itself at a critical juncture. As a small island nation, its economy has always been highly interconnected with international markets, relying on its agility and strategic foresight to capitalise on emerging opportunities. In 2025, Malta’s economy reflects both the challenges of a globalised world and the specific hurdles of a resource-constrained island state.

The Maltese economy is expected to grow at a steady pace, with forecasts pointing to moderate GDP expansion. This growth is fuelled by the robust recovery of key sectors such as financial services, tourism, and digital industries. Financial services remain a cornerstone of the economy, bolstered by Malta’s reputation as a regulatory hub for innovation in fintech and blockchain technologies. The island’s strategic embrace of cryptocurrencies and digital assets has positioned it as a leader in this space, but it must carefully navigate the shifting sands of global regulation to maintain its competitive edge.

Tourism, another critical pillar, continues its recovery from the pandemic-induced downturn, with 2025 marking a full return to pre-pandemic levels of visitor arrivals. However, the Maltese government has strategically shifted its focus toward high-value tourism, emphasising culture, heritage, and eco-tourism to mitigate risks associated with mass tourism and environmental degradation. This approach aims to ensure that tourism remains both a sustainable and lucrative contributor to the economy.

Digital innovation is perhaps the defining trend of Malta’s current economic evolution. By 2025, the island’s commitment to fostering a tech-driven economy has translated into tangible progress in areas such as artificial intelligence, blockchain, and digital finance. Malta’s National Digital Strategy has enabled the growth of a vibrant ecosystem of start-ups and established companies, drawing international investment and creating high-value jobs. However, this success is tempered by challenges in scaling digital infrastructure and addressing the skills gap in the labour market, which must be overcome to sustain growth in this domain.

Sustainability has emerged as both an opportunity and a challenge for Malta. The European Union’s Green Deal and Malta’s commitments under its climate action plans have spurred investments in renewable energy, waste management, and sustainable transport systems. By 2025, the country aims to achieve a renewable energy share of 20%, leveraging solar power and exploring offshore wind initiatives. Yet, Malta’s geographical constraints—limited land and high population density—complicate its ability to execute large-scale renewable projects. The country is innovating by investing in energy-efficient technologies and promoting sustainable practices in sectors such as construction and transport, but progress remains incremental.

Malta’s labour market faces its own complexities. The country has long relied on a mix of domestic talent and skilled expatriates to fuel its economic engine. However, demographic trends, including an aging population and a relatively low birth rate, necessitate targeted policies to bolster workforce participation and upskilling. In response, Malta has prioritised education and training in STEM fields, preparing its citizens for the demands of a technology-driven economy. Simultaneously, efforts to attract foreign talent and retain expatriates remain a key part of the government’s strategy, although concerns over housing affordability and quality of life for residents must be addressed to maintain Malta’s appeal.

While Malta’s economy shows promise, key challenges loom large. The rising cost of living, particularly in housing, has become a pressing concern for many residents. Economic growth has driven property prices higher, creating affordability issues that the government must address through policies promoting inclusive housing and infrastructure development. Environmental sustainability also remains a critical area of focus. Malta’s reliance on imported fossil fuels makes it vulnerable to global energy market fluctuations, underscoring the urgency of transitioning to renewable energy sources.

Global economic conditions, including the potential for geopolitical disruptions and fluctuations in trade, also present risks to Malta’s small, open economy. Its reliance on specific industries such as gaming, tourism, and financial services underscores the need for further diversification into emerging sectors like life sciences, health technology, and advanced manufacturing. Expanding into these areas will not only enhance economic resilience but also reduce dependence on volatile external factors.

As Malta navigates its economic path in 2025, collaboration between the government, private sector, and civil society is crucial. The island’s future hinges on its ability to balance economic growth with environmental sustainability and social equity. By leveraging its strategic advantages, such as a highly skilled workforce, regulatory agility, and geographical location, Malta can continue to thrive as a resilient and innovative economy in the Mediterranean.

In conclusion, Malta’s economic outlook for 2025 is one of cautious optimism. The island nation is poised to build on its strengths, addressing challenges through strategic planning and innovation. While it remains sensitive to global and regional developments, Malta’s adaptability and foresight will be key to ensuring sustained prosperity in an increasingly interconnected world.

Looking Ahead

Interview with Carlo Micallef, MTA CEO

The Malta Tourism Authority (MTA) has celebrated this year its 25th anniversary of dedicated service since its inception. Over the past years, the MTA has been instrumental in transforming Malta into a premier tourist destination and fostering a sustainable future for the tourism industry. Looking ahead, the MTA remains committed to sustainability in tourism, exploring new markets, and providing ongoing training for industry professionals. The focus will be on enhancing the visitor experience, ensuring that Malta remains a top destination for years to come. As this year comes to an end MTA CEO, Carlo Micallef reflects on a legacy of success and looks forward to a future of continued growth and innovation.

The authority is focusing on diversification thus reaching out to new niche segments including Gastronomy, Religious Tourism and Adventure Tourism as well as consolidating other pockets including Business Travel. How is MTA supporting this diversification strategy?

We are nurturing different niches to motivate travel to Malta. Some niches we are expanding like active tourism, including cycling, diving, sailing, and then also pilgrimage and faith tourism (and not only the Roman Catholic faith). There is a demand, for example, to come to Malta and spend time in some of the idyllic and mystic places around the islands, like the Mnajdra and the Ggantija neolithic temples, on the rocks of Dingli Cliffs with mesmerizing sea views, meditating and re-discovering ones well-being through yoga, wellness exercises, or pilates in the beauty of nature. Malta has also been at the top of the Rainbow Europe Map and Index for eight years in a row, championing equality, inclusion and legal rights for the LGBTI people.

As part of this diversification process, MTA and the Min-

istry for Tourism are working closely with the Ministry of Agriculture and Food Production aiming to preserve, grow and promote the traditional authentic gastronomic experience of the Maltese islands while incentivizing organic and climate friendly food production, fresh farm-to-fork produce with seasonal menus offered in restaurants, and a zero-waste policy. Michelin has recognized 40 restaurants in Malta and Gozo, six of which have been awarded the Michelin Star rating, a benchmark to the quality of the dining experience that one can enjoy in the Maltese restaurants. Another niche in which Malta & Gozo have a very interesting story to tell is Military tourism.

A very interesting project has been launched together with Heritage Malta to develop this segment, so far largely overlooked in our tourism offer. Great importance and attention is also being given to further grow top end niches of luxury tourism, including but not only Yachting holidays, as well as hosting of more Events and Exhibitions similar to SiGMA in Malta during the so called shoulder months of the year.

It has recently been reported that Malta is on track to receive 3.2 million tourists by end of the year. To what do you attribute such success?

The updated forecast is actually closer to 3.5 million tourists by end of year as October and November have seen a very strong performance by all source markets to Malta and Gozo. More importantly however is the income that is injected in Malta’s economy by tourism activity. In 2024 tourism expenditure shall surpass €3 billion for the first time and current forecast is that it will be an increase of circa 20% on 2023. VisitMalta’s marketing strategy is geographically focused but segment driven, allowing us to target specific demographics in different source markets at different times of the year, trying to capitalize on and match Malta’s best product offer with the characteristics and trends of the foreign markets.

MTA’s strategy is to fuel growth of arrivals to Malta in the winter months and consolidate the summer months seeking always to attract tourists that are able to spend more on

their holiday for the experiences they aspire for. The niches and segments that are generating and motivating travel to Malta in the winter months include sports and active tourism, sports tournaments and training camps, FIT attracted by festivals and events, gastronomy and culinary travel, relaxing short breaks, art, history, culture, LGBTI travel as well as Incentives & Meetings. All these different niches come together to generate demand for Malta, giving these visitors a reason to choose Malta over other competing destinations. Excellent flight connectivity is of course key for the Maltese islands at the heart of the Mediterranean, in the southernmost tip of Europe. MTA has in the past year cultivated a strategy to attract more legacy carriers to the Maltese Islands and we have been successful in attracting Aer Lingus, who started operating the Dublin route last October, also connecting the Maltese Islands to at least 17 routes in the USA and another 2 in Canada. The Polish national carrier LOT shall commence flights from Warsaw to Malta in April 2025 and shall at the same time greatly improve Malta’s connectivity to the East, including Asia.

The goal to make Malta a year-round destination remains on the agenda of the government. How is the challenge being addressed? How would you assess your success to achieve such goal?

One of our targets in the tourism strategy, a vision that we were already working on before Covid struck, is to spread the arrival of tourism all year round, and all around the Maltese islands, for the whole country to experience the positive contribution of tourism to our economy. Malta is one of the few destinations in the Mediterranean that never closes down, with practically all accommodation, dining, historical and nightlife attractions open all year-round. While in the past we were known to have high peaks in the summer and very low numbers in the winter months, in line with the natural curve of holiday travel to the Mediterranean, we have in the last few years been taking corrective action to flatten the curve, taking initiatives to grow tourism in the winter months.

Last winter, winter 2023/24 saw an excellent increase of more than 400,000 tourists when compared to winter 2022/2023 and this is a result of our strategy to dedicate more resources to grow tourism in the winter months. The winter season we are in, 2024/2025, is expected to be even better and this shall continue to flatten the tourism arrivals curve and achieve the desired spread of tourism throughout the year. This contributes greatly to our mission of cultivating a profitable tourism industry all year round as well as an industry that offers careers and not seasonal jobs.

In line with such a goal, VisitMalta has recalibrated its geographic spread of marketing activity and flight connectivity as we target markets with different travel patterns to the traditional core European one. We are investing more resources into Asia Pacific, in markets like Japan, South Korea, Singapore, Australia and China, and in South America and North America. We are trying to appeal to audiences that travel at different times of the year from mainstream European travel. We are achieving a mix of different nationalities: the biggest market is still the UK, but that is now a lower percentage of our tourism mix. We’re doing this while spreading tourism all year round and throughout the destination, so it is not just Valletta, Saint Julians, Sliema, Saint Paul’s Bay or Gozo.

The private sector has seen the opportunity and has invested to restore old villas, palazzos and historic buildings which were derelict for many years because it was too expensive to maintain. These have been transformed into really beautiful, small boutique properties that each offer a unique experience through the ambience, facilities and service they offer.

Malta aims to be carbon neutral by 2050. What strategies is the industry and MTA following to adopt green measures, a more circular economy and cut down carbon footprint?

MTA has been pro-active for several years now, launching incentives and schemes to help hotels, accommodation providers, catering establishments and tourism industry service providers to adapt their business model and operations to embrace more climate friendly activity, such as energy generation with PVs, re-use of gray water, recycling, waste management, using building materials that are non-toxic, ethical and sustainable, and for new developments, the condition of better design and insulation for improved indoor air quality and energy efficiency. At the Institute of Tourism Studies there are course modules to educate the upcoming chefs on zero food waste kitchen operations.

MTA also manages several of the beaches around the Maltese islands. On these beaches single use plastic is banned. It is a license condition for economic operators on these beaches to use climate friendly materials for the cups, cutlery and packages used in their activity. MTA has in the past year signed MOUs with GSTC and Green Key and followed up on these initiatives with several workshops and training for industry professionals in the Maltese Islands accommodation sector. Further initiatives are planned for the catering sector as well as other tourism operations. As one can see there is clearly a big commitment from all players toward the ultimate aim of Malta’s ESG targets having a cleaner, climate friendly destination and achieving carbon neutrality by 2050.

What do you foresee to be the major challenges and opportunities for Malta as a touristic destination in the coming years?

The challenges in the tourism industry are vast, the most serious ones are those unforeseen like natural calamities and disease. The industry continues to change rapidly as new players come in after choosing tourism to build or diversify their economies. We face an industry with increased competition from countries that were hardly on the tourist map in the past: destinations like Albania, Balkans, as well as Saudi Arabia and Oman. Some destinations have practically unlimited budgets for marketing and product development while others due to economies of scale or lower operating costs can offer new interesting holiday experiences at a much lower price. On the plus side, the desire to travel continues to grow, and the target demographics we are after are less sensitive to price and more focused on the in destination experience they aspire for. I am confident that Malta and Gozo can face these challenges and together with all stakeholders in the industry overcome them to guarantee more success in the coming years.

MTA shall as always remain vigilant to grab opportunities for the Maltese Islands. In the months and years to come we are aiming to increase tourism arrivals from long haul markets like North America, Latin America, Australia, Asia as well as India. We shall plan and focus our marketing efforts on countries and regions with travelling demographics that have a higher spending power and a desire to explore and enjoy authentic memorable experiences that the Maltese Islands can deliver.

Malta’s Impact on the European and International Digital Scene Innovation Island:

Throughout the years, Malta has emerged as a leader in areas of digital innovation, ranging from artificial intelligence to cybersecurity and data. With the Malta Digital Innovation Authority (MDIA) at the forefront, Malta continues to grow, excel and provide opportunities that facilitate the uptake of digital innovation., As part of our vision, the Authority aims to foster trust in innovative technologies, providing voluntary recognitions for such technologies and acting as the advisor on national and EU policies.

Since its establishment, the Authority has fostered collaboration with stakeholders to ensure that Malta supports innovation for all including, citizens, businesses, academia, and both the private and public sector. The Authority actively promotes Malta’s digital ecosystem on a global stage and plays a crucial role in representing Malta’s interests at an EU and international level, ensuring the responsible and secure use of innovative technologies in our society.

The MDIA serves as the National Cybersecurity Certification Authority (NCCA.MT), overseeing and enforcing European cybersecurity certification schemes to ensure compliance among manufacturers and providers of ICT products,

Quality, Policy & Coordination Senior Officer

services and processes within Malta. As a key player in the European cybersecurity landscape, the Authority actively participated in discussions on the EU Cybersecurity Certification Scheme on Common Criteria. This also represents a significant step forward in harmonising cybersecurity certifications across the EU, which ultimately support protection of consumers.

The MDIA’s commitment within the EU fora extends to the Data Governance Act (DGA). Recognising the DGA’s potential to transform the EU’s datadriven economy, the MDIA has been designated as the competent authority for data altruism and for data intermediation under the Act. Representing Malta on the European Data Innovation Board, the MDIA aims to share best practices across to ensure an advanced data economy.

Beyond cybersecurity and data governance, the MDIA also represents Malta in various international fora and engaged in shaping the future of artificial intelligence (AI). The Authority was the lead entity in Malta providing valuable input on the drafting of the EU AI Act. As technical experts on the Council of Europe’s Committee on Artificial Intelligence (CAI), the Authority contributed to drafting the recently finalised Convention on Artificial Intelligence, Human Rights, Democracy and the Rule of Law. This Convention establishes the world’s first legally binding instrument on AI and human rights, democracy and rule of law, emphasising its ethical development and responsible use.

Fostering strong relationships and collaborating at European and international level is key to ensure global impact. The Authority has convened bilateral meetings with relevant entities in other countries in the field of emerging technologies. During these meetings, the Authority exchanged knowledge, explored joint initiatives, and strengthened Malta’s position as a reliable partner in this dynamic area. To discuss potential areas of cooperation and support international collaboration efforts, the MDIA has hosted delegations from EU and international countries, including Japan, Austria, Latvia, Romania and the United Arab Emirates. Malta collaborated with the International Telecommunication Union (ITU) and hosted one of the largest events, the Global Innovation Forum (GIF) focusing on the theme “Shaping our Digital Futures for Prosperity and Well-Being for All”. This forum has brought countries from all over the world to discuss the trends and most pressing needs of countries regarding digital innovation.

Since 2018, the MDIA has emerged as a driving force for policy development in the area of innovative technologies. Over the past year alone, the Authority has provided 650 positions on legal instruments and documents related to this domain. The Authority remains committed to representing Malta and contributing to the international digital landscape to benefit from global expertise and partnerships and solidify Malta’s position as a prominent actor in the growing digital world.

It is pertinent that Malta’s voice is heard on the European and international stage to shape the future of cutting-edge technologies. By continuing to collaborate with stakeholders at all levels, the MDIA is confident that Malta will remain a thriving hub for digital innovation in the years to come.

Michelle Muscat

ACE President

The State of the LOCAL Catering INDUSTRY

“The pressure, the heat, the almost impossibly fast pace at which you need work - this is the reality of working in the catering industry.”

- Joe Bastianich

The catering industry is one of the most dynamic, fast growing sectors in Malta. Truly so, because we work in a fast paced industry that operates in a fast paced context characterised by fast changing customer trends, tastes and habits. A dynamic market where customers predominantly expect sustainable solutions, flexibility, personalization, and a wide range of offerings for every taste – from economical and simple options to high-end restaurant catering. A constantly changing market in which the catering industry stands at the cusp of a transformative era marked by technological advancements, a steadfast commitment to sustainability, and an ever-growing palette of global flavours. An industry which is well coined in the words of Joe Bastianich - “The pressure, the heat, the almost impossibly fast pace at which you need work - this is the reality of working in the catering industry.”

A fast paced catering industry where irrespective of size and nature, the challenges are quite the same for all establishments - a scarcity of good human resources, a sudden increase in price of raw materials, a constantly changing consumer behaviour as well as a host of bureaucratic challenges just to mention a few. An industry which also has to face the challenges brought to the table with a growing reality of “enormous oversaturation” , with the introduction of the skills pass and BCRS system as well as the ongoing licensing problems. And whilst the industry is all in favour to ensure Malta’s 2030 energy and climate targets. Whilst the industry is all in to ensure the government reaches its goals set in Malta’s Tourism Strategy 2021 - 2030, there are issues written on the wall that cannot be addressed by the industry alone. Truly so, because the challenge of quality, the constantly growing skills gap and the over dependence on foreigners, primarily TCNs is an issue which must not be carried by the industry alone. It is important to note that the need for quality human resources is a must for a country which is currently seeking to target key niche tourist segments. An integral element for an increasingly demanding and knowledgeable local clientele. A major challenge too for a sector which includes listed Michelin Star and Michelin Guide restaurants.

It is fair to say though that the industry would be in a much worse state if the government wouldn’t have over the past years intervened during the COVID-19 pandemic by means of the COVID Wage Supplement. The industry would be in much dire straits if the government would not have extended its energy, water, fuel, and grain subsidy programs. Vital support which helped cushion the impact of an unstable international environment as well as inflation. But, the challenges the industry is currently facing, calls for more to ensure the sustainability of all operators in the catering industry.

This is the state of play of the local catering industry. A scenario which is often not known to the general public or worse misunderstood by consumers. A state of play which on the other hand though, highlights the fact that notwithstanding the challenges, the industry is alive and has achieved so much over the years. Having Michelin star restaurants on the island as well as the inclusion of local restaurants in Forbes Travel Guide’s Rating and in the Michelin Guide list are a clear proof of the local catering industry’s potential. Yet the local catering industry’s achievements are not only limited to that. Its achievements are also attributed to the success of various operators in Malta and also abroad. It is also attributed to all operators who have gone through thick and thin and are still here alive and kicking.

Notwithstanding all, the industry has constantly proven its ability to be dynamic and its ability to adapt to change. Above all, the industry has time and time again shown its ability to be resilient. Truly so because there is no playbook for how to deal with challenges and uncertainties. But one theme that has emerged through the uncertainty is resilience — and the people who have been operating in the local industry have it in spades. Yes, a resilience we operators have built when meeting the unexpected, when dealing with uncertainty. A

resilience we built by thinking creatively and by often pivoting on a dime.

And the current times call on all the operators to be once again resilient, to be perseverant, to be innovative, to think out of the box and if need be without the box. Above all, to upend the way they do things instead of trying to apply an old model to a new world. And the industry will do so because it is no stranger to adjusting to new paradigms. Yet embracing change is a big part of resilience, but it’s just one part. The rest comes down to the fundamentals: good business planning and great relationships.

But all this cannot be achieved alone. It requires a collective effort from the industry together with the government, the opposition and all stakeholders. It requires us, the Association of Catering Establishments to lead the way for a serious discussion on a way forward which must tangibly ensure the long-term sustainability of such an integral component of the Maltese economy. A key moment for the Association not only because it coincides with its fifth anniversary but also because of the key role it is called to play in the years to come so as to ensure the sustainability of the industry. An industry which will surely play a key role in the government’s Vision 2050.

Reimagining Public Spaces:

Infrastructure Malta’s Commitment to Shared Mobility and Community Spaces

Urban landscapes across the world are transforming, moving away from designs that prioritize cars and focusing instead on creating vibrant, inclusive spaces for communities. In Malta, Infrastructure Malta is at the forefront of this shift. By launching projects that emphasize shared spaces, pedestrian zones, and alternative transportation, the agency is demonstrating a clear commitment to sustainability and quality of life.

The Vision of Vjal Kulħadd

The Vjal Kulħadd Project encapsulates this vision, aiming to reclaim public spaces for people and the environment. This ambitious initiative attracted 37 applications from local councils and environmental NGOs, showcasing a collective desire for change, and are currently under evaluation.

“Through Vjal Kulħadd, we are prioritizing shared spaces over vehicle-dominated roads. Our aim is to create safe pedestrian zones and cycling lanes that breathe new life into our communities,” said Steve Ellul the CEO of Infrastructure Malta. The project is about more than just improving mobility, it is a response to the growing need for spaces where people can connect, relax, and move safely. These changes are particularly vital in urban areas where congestion and limited green spaces have long been challenges.

Some localities already benefiting from the Vjal Kulħadd initiative are Żejtun, Żabbar, Luqa and Gudja. In Żejtun, advanced works are well underway to transform a major linkroad to neighbouring Żabbar into a pedestrian and cycling friendly area. By reclaiming streets and converting them into shared spaces, the project is making these southern localities more accessible and enjoyable for residents. Similarly, in Gudja, pathways are being created to enhance walkability and connectivity with neighbouring Luqa. “The goal is to bring back the tradition of walking through villages, reigniting a sense of community and connection with our surroundings,” explains the CEO.

These projects also focus on linking important locations within the towns, such as schools, public squares, open spaces and cultural sites, allowing people to enjoy a seamless walking experience. By prioritizing pedestrians and cyclists, Infrastructure Malta is encouraging healthier lifestyles while reducing the reliance on private cars.

Msida Creek Project: A Larger Vision

While Vjal Kulħadd is transforming community spaces, the Msida Creek Project takes this vision to a larger scale. This transformative initiative is revitalizing the Msida Waterfront, providing over 1 kilometre of dedicated cycle paths and pedestrian areas. “The Msida Creek Project is a prime example of how urban redevelopment can bring tangible benefits to communities. By integrating open spaces with sustainable

transport options, we are enhancing the quality of life for residents and visitors alike,” remarks the CEO.

The project addresses several challenges simultaneously. By improving accessibility and mobility, it reduces traffic congestion and promotes environmental sustainability. Additionally, the newly created spaces will offer opportunities for recreation, fostering social interaction and community engagement.

Beyond the Streets: Maritime Infrastructure

Infrastructure Malta’s commitment to alternative transportation extends beyond roads. By enhancing maritime infrastructure, the agency is unlocking the potential of Malta’s coastline as a viable mode of transportation. One key development is the Bugibba breakwater, designed to support alternative mass transportation through the sea. This complements the improved facilities in Cottonera and Sliema, which are significantly enhancing connectivity to Valletta. For instance, the Cottonera to Valletta route served almost half a million passengers throughout 2023, but by August 2024 alone, 469,713 passengers had already used the service. Similarly, the Sliema to Valletta route recorded 760,385 passengers in all of 2023, while by August 2024, this number had already reached 621,905. With monthly usage ranging from 40,000 to 100,000 passengers depending on the season, 2024 figures are set to surpass last year’s totals by a considerable margin.

MDB Restricted

“In 2024 alone, thousands of passengers utilized these maritime connections, demonstrating their effectiveness as an alternative to road travel,” shares the CEO. These projects not only alleviate road congestion but also highlight Malta’s rich maritime heritage while offering a modern, sustainable solution for mobility.

The Broader Benefits of Alternative Mobility

The benefits of these initiatives extend far beyond transportation. By reducing reliance on cars and promoting walking, cycling, and sea travel, Infrastructure Malta is tackling key issues such as air pollution, urban heat islands, and traffic congestion. Studies consistently show that pedestrian zones and shared spaces contribute to economic growth, as they attract more foot traffic to local businesses. They also improve public health by encouraging active lifestyles and reducing exposure to harmful vehicle emissions. “Our projects are about creating spaces where people want to be— whether it’s walking through a pedestrian zone, cycling along a safe path, or simply enjoying an open space in the heart of the community,” says the CEO.

Through the Vjal Kulhadd Project, the Msida Creek Project, and investments in maritime infrastructure, Infrastructure Malta is setting a new standard for sustainable development. The agency’s focus on shared spaces and alternative transportation aligns with global best practices while addressing the unique needs of Malta’s urban and rural areas. “This is a long-term vision for Malta. By rethinking our approach to infrastructure, we are not just building for today—we are laying the groundwork for a greener, healthier, and more connected future,” the CEO emphasizes.

These projects represent more than physical changes; they symbolize a shift in priorities. Infrastructure Malta is showing that with the right vision and determination, public spaces can be transformed into vibrant hubs of activity and connection. As these initiatives progress, the results will be felt across the island— in quieter streets, cleaner air, and thriving communities. The message is clear: Malta is moving forward.

Royale Sainte Hélène Boutique Hotel

Elevating Corporate Travel with Boutique Sophistication in Malta

Nestled in the heart of Birkirkara and designed with the business community in mind, the Royale Sainte Hélène Boutique Hotel redefines boutique hospitality by seamlessly blending Maltese craftsmanship with Parisian-inspired sophistication. Representing a substantial investment of nearly €4 million euro, this flagship project reflects the Archimed Group’s bold vision for growth, laying the foundation for a chain of high-profile hospitality ventures.

The hotel’s name, Royale Sainte Hélène, pays homage to Saint Helen, the patron saint of Birkirkara, celebrating the city’s cultural and spiritual legacy while preserving its historical charm.

The building’s origins trace back to the 19th century, where it served as a private residence for a family of seven and later housed a bustling bicycle shop known as Pawlu Tar-Roti. Today, after a meticulous restoration by skilled local artisans, the property retains its authentic façade, showcasing architectural features such as original timber balconies, apertures, a grand welcoming entrance, and characteristic stone staircases. These elements reflect the timeless richness of a traditional Maltese palazzo, combining echoes of familiar warmth with contemporary sophistication. Within its historic walls, the hotel offers a perfect retreat tailored to enhance the value of both business and leisure stays.

Prime Minister Robert Abela commended the boutique hotel project for successfully preserving its authentic charm while embracing modernity. “This project prioritised quality over quantity, an approach that aligns with the government’s vision for sustainable tourism”, said Prime Minister Abela. He also highlighted the project’s focus on environmental sustainability. “Such investments not only enhance the tourism sector but also contribute to our economy. It is entrepreneurs like you who drive our nation forward, creating wealth and opportunity for all”, Dr Abela concluded.

“Our vision was to create more than just a hotel; we wanted to redefine the business travel experience,” say Romualda Vella and Jason Paul Vella, Directors of Royale Boutique Hotels. “At the heart of this vision is our exclusive executive lounge service—designed for today’s professionals who need flexibility, functionality, and sophistication. Whether hosting a quick meeting, conducting a virtual conference, or unwinding after a busy day, the lounge provides a dynamic environment tailored to the business traveller.”

Modern Sophistication Meets Comfort

The hotel’s interior design tells a story of refinement, blending opulent details with minimalist aesthetics. Captivating photographs of Birkirkara through the ages adorn the walls, celebrating the city’s history. Every detail, from furnishings to layout, has been carefully curated to create a harmonious blend of cultural artefacts and modern comfort. Distinctive touches, such as a Sicilian-crafted chandelier and locally made glass-blown tulips, add to the hotel’s unique charm.

This exquisite transformation is the vision of the hotel’s directors, who are also the proud owners of i-Decor Home, a Spanish home décor brand. The directors have infused their signature style into every corner of the Royale Sainte Hélène Boutique Hotel, showcasing an elegant and trendy décor that embodies the brand’s commitment to sophistication and modernity.

For the hotel’s launch event, the Royale Sainte Hélène was honoured to host Mr. Alfred Celada, the Commercial and Export Director of i-Decor Home, whose leadership has been instrumental in the brand’s evolution and ongoing success.

Luxury Rooms and Corporate Amenities

Each of the hotel’s 30 rooms is thoughtfully designed to meet modern needs. Whether a Superior Balcony Room or the luxurious Penthouse Suite with an outdoor jacuzzi, every space features orthopaedic beds, minibars, 43inch satellite TVs, ample universal sockets, and private balconies offering panoramic views. The bathrooms are perfectly finished, boasting generously sized showers for an elevated guest experience.

Corporate travellers can benefit from:

• The Royal Executive Lounge: Equipped with high-speed internet, free photocopying services, and a conference table for up to 20 guests.

• Rooftop Terrace: Featuring heated jacuzzis, a pool, and a serene atmosphere with stunning views of the iconic Saint Helen Parish Church, ideal for relaxation or informal networking.

• Signature Dining Experiences: Mediterranean cuisine, and an extensive wine list, complemented by wellness offerings such as personalised treatments and massages.

Commitment to Sustainability and Community

Royale Sainte Hélène embraces eco-conscious practices, including energy-efficient climate control, thermal insulation, soundproofing, and a water treatment system that reduces environmental impact. The hotel also supports local artisans and promotes sustainable tourism, aligning with its long-term vision of community integration and responsible hospitality.

“Sustainability is integral to our philosophy,” say the Vellas. “We’ve invested in advanced systems to create an eco-friendly guest experience while preserving the charm of our heritage building.”

“Our philosophy is simple yet profound: to provide a personal experience in comfort and luxury through creativity and authenticity,” conclude the directors. “We believe every individual deserves a well-earned retreat to unwind and rejuvenate, whether for business, leisure, or both.”

For more information, visit https://royalesteheleneboutiquehotel.com or email info@royaleboutiquehotels.com

Executive Aviation Malta is the only locally owned, fully dedicated business aviation jet handler complemented by the vastest variety of executive vehicles available airside at Malta International Airport.

Towards

a more respectful society: The importance of understanding and valuing others’

FEELINGS RESPECTFUL SOCIETY

Introduction

In the wake of recent events we witnessed on our roads, I feel compelled to reflect on the vital importance of fostering a society that embodies respect and compassion toward one another, especially now that we are approaching Christmas time. As we delve into the concept of creating a compassionate community, we must consider why it is essential to understand and honour the feelings of others, even when we might not share their perspectives.

In a world where empathy and respect seem to be lacking, it is more important than ever to cultivate these qualities within ourselves and in our communities. By developing a deeper understanding of the emotions of others, we can build stronger connections, improve our relationships, and create a more harmonious society. This journey toward empathy and respect must begin early in life, as I worry that the current generation may already be drifting away from these essential values.1

The importance of empathy

Empathy is the ability an understanding and share the feelings of others, playing a crucial role in our emotional and social development. It enables us to connect with those around us and fosters deeper relationships. When we practice empathy, we can step into someone else’s shoes and view the world from their perspective, cultivating understanding, compassion, and a sense of unity.

The benefits of empathy extend to both personal and professional relationships. It helps us navigate conflicts, resolve misunderstandings, and build trust among peers. By demonstrating empathy, we create a safe space for others to express their emotions and feel truly heard. This not only strengthens our connections but also promotes a profound sense of belonging within our communities

President Local Councils’ Assocation

Mario Fava

Building emotional intelligence

What exactly does it mean to build emotional intelligence? At its core, emotional intelligence is the ability to recognize, understand, and manage both our own emotions and those of others. It encompasses several key components, including self-awareness, self-regulation, motivation, empathy, and social skills.

A fundamental aspect of emotional intelligence is the understanding of others’ feelings. By honing our emotional intelligence, we become more attuned to the emotional landscapes of those around us. This heightened awareness enables us to respond in thoughtful and supportive ways, fostering stronger relationships and deeper connections with others.

To enhance our emotional intelligence, we can engage in practices such as self-reflection, mindfulness, and active listening. These strategies not only help us become more aware of our own emotions but also empower us to empathize more effectively with others. By investing in our emotional intelligence, we can create a more compassionate and understanding environment in our personal and professional lives.

Improving communication skills

Effective communication is vital for truly understanding the feelings of others. It encompasses not only the ability to express ourselves clearly but also the crucial practice of actively listening to those around us. Active listening is a skill that enables us to fully engage with the speaker, grasp their perspective, and respond with empathy.

To enhance our communication skills, we can adopt various active listening techniques. For instance, maintaining eye contact demonstrates our attentiveness and understanding, while paraphrasing allows us to confirm our comprehension of what has been said. By refining our communication skills in these ways, we foster an environment where others feel valued and genuinely understood. This creates a foundation for deeper connections and more meaningful interactions.

Cultivating a culture of respect

Perhaps the most crucial element in our interactions is respect. It serves as a cornerstone for understanding and valuing the feelings of others. Respect entails treating individuals with dignity, honouring their perspectives, and appreciating their emotions. To cultivate a culture of respect, we must commit to active listening, validate others’ experiences, and practice nonjudgmental attitudes.

In both personal interactions and within our society at large, promoting and embodying respect can pave the way for a more inclusive and compassionate community. When we honour the feelings of others, we foster an environment where everyone feels safe to express themselves authentically. This nurturing atmosphere strengthens trust, enhances understanding, and encourages collaboration among individuals, ultimately enriching our collective experience.

Teaching empathy and respect to children

Parents and educators play a pivotal role in instilling empathy and respect in children. By embodying these qualities in our daily interactions, we can inspire the next generation to adopt empathy and respect as fundamental values. This effort is essential not only within the walls of our schools but also in our homes. The respect—or lack thereof—that we demonstrate towards one another, including how we request things, express appreciation, and engage in daily activities, along with the language we use, profoundly influences children.

To effectively nurture empathy and respect in young minds, we can employ practical strategies such as encouraging perspective-taking, promoting acts of kindness and compassion, and providing ample opportunities for social interactions. These approaches can have a lasting impact. By teaching these essential skills early, we equip children with the necessary tools to navigate relationships, resolve conflicts, and contribute positively to a compassionate society. This lays a hopeful foundation for a better tomorrow.

Overcoming

challenges in understanding and respecting the feelings of those around us

While grasping and respecting the feelings of others may appear straightforward various obstacles can impede our ability to do so. These challenges often stem from biases, stereotypes, a lack of awareness, and an excessive pride that serves no purpose.

To navigate these hurdles, we must commit to self-reflection, question our assumptions, and actively seek out diverse perspectives. Additionally, educating ourselves about different cultures, backgrounds, and experiences is essential. By consciously working to dismantle these barriers, we can foster a deeper understanding and greater respect for the feelings of those around us.

Conclusion

Understanding and respecting the feelings of others is vital for nurturing a compassionate society. By cultivating empathy, emotional intelligence, and effective communication skills, we

can forge deeper connections, strengthen our relationships, and promote a culture of respect. As parents, educators, and individuals, we hold the power to shape a more empathetic and compassionate future.

If we successfully foster these qualities, we may witness a decline in negative incidents like those seen recently. Perhaps the prevailing “alabiebi” reckless attitude on our roads will improve, leading to more considerate driving. Instead of reacting defensively when receiving a fine, I might take a moment to reflect and acknowledge my own mistakes. When feeling rushed, I could choose to drive more cautiously, prioritizing the safety of others.

All these changes contribute to healthier societies and more cohesive communities. We envision more inclusive neighbourhoods where residents experience a genuine sense of belonging to their surroundings. Ultimately, this is how we can enhance the quality of life for ourselves and those around us.

L-Intelliġenza Artiﬁċjali Ġenerattiva ﬁs-Settur tal-Edukazzjoni

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E ċjenza amministrattiva

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Konsiderazzjonijiet Etiċi

L-użu responsabbli tal-Intelliġenza Arti ġjali huwa kruċjali. L-imaniġjar tal-privatezza, l-evitar tal-preġudizzji, huma ta’ importanza kbira għall-etika implimentazzjoni -edukazzjoni.

L-Intelliġenza Arti ċjali ġenerattiva għandha l-potenzjal biex tirrivoluzzjona l-edukazzjoni, it-trawwim personalizzat, e ċjenti, u esperjenzi ta’ tagħlim inklużiv għal studenti madwar id-dinja.

Paving the Path to Progress

Infrastructure for Growth & Connectivity

Malta’s infrastructure is being developed not only to address present needs but to anticipate and adapt to the changing demands of society and the economy in the years ahead.

Through the dedicated e orts of Infrastructure Malta, signiﬁcant strides are being made to ensure that road infrastructure remains robust and future-proof. By focusing on sustainable and forward-looking development, Infrastructure Malta continues to build a resilient network that connects communities and drives progress.