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During our 2026 Annual Company Updates, we were honoured to welcome Simon L. Barberi, Director – Strategy and Execution at EY Malta, who delivered an engaging presentation on "How is Malta viewed by industry leaders?" His expert insights sparked meaningful conversations and provided our team with a broader understanding of Malta's positioning, opportunities, and challenges within the global business landscape.
Drawing from the EY Malta Attractiveness Survey 2025, Simon highlighted a significant rebound in investor sentiment, with 79% of respondents now viewing Malta as an attractive destination for Foreign Direct Investment (FDI), a substantial increase from 54% the previous year. This renewed confidence is anchored in Malta's relative stability, its readiness to embrace the digital age, and its competitive corporate tax regime.
Key Insights from the Presentation:
- Top FDI Attractors: Investors continue to rank Malta's corporate taxation (78%) and the stability of the social climate (70%) as the country's leading attractions. Additionally, Malta's cost base remains favourable compared to other jurisdictions, particularly regarding energy and payroll.
- The Talent Challenge: Skills shortages remain a critical concern for Malta, with 67% of investors unable to recruit specialised skills locally. Shortages are particularly acute at entry-level (60%), C-suite (52%), and specialist/mid-level roles (51%).
- Infrastructure and Innovation: While telecommunications infrastructure is viewed positively, investors pointed to transport and logistics as well as the R&D/innovation environment as areas requiring urgent improvement. Only 15% of investors believe Malta's current infrastructure is adequate for its population growth.
- Future Growth Sectors: Industry leaders identified Artificial Intelligence (AI) as the single standout long-term bet for growth (25%), followed by tourism, aviation, and Fintech. While AI is seen primarily as a tool to enhance productivity (53%), its adoption is currently hampered by the lack of specialised talent.
- A Shift Toward Quality: There is an emerging sentiment among investors favouring "better and less" economic growth, emphasising high-value activities and innovation over mere volume.
The Path Forward: Agility and Specialisation
Simon emphasised that for Malta to remain globally competitive over the next decade, it must move beyond traditional growth models. The focus is shifting toward a "quality-led" approach where the country targets strategic, high-value FDI rather than just increasing volume. This requires a concerted effort to address the capacity pressures on transport, utilities, and housing that come with a rapidly expanding economy.
A critical part of this evolution involves education reform. With 61% of investors citing skills as a primary constraint, the goal is no longer just "filling vacancies" but defining a "talent architecture" that supports a specialised economy. This includes fostering a workforce capable of leveraging automation and AI to reduce labour dependency.
Furthermore, while near-term commitment remains strong, with 90% of companies planning to maintain or expand their operations in the next 12 months, long-term uncertainty is rising. One in three investors is currently unsure if they will still be in Malta in ten years, reflecting a global trend where firms are reassessing location strategies amidst volatile geopolitics.
Conclusion
The presentation concluded with a clear roadmap: Malta's next phase will be defined by specialisation, agility, and execution aligned with foresight. By prioritising workforce development, infrastructure investment, and high-value innovation, Malta can continue to play an outsized role in the global landscape, transforming from a small destination into a dynamic hub for future-ready industries. Simon's insights serve as a vital guide for our team as we navigate these opportunities and contribute to Malta's ongoing economic success.
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