The news that during the festive period almost 75% of small and medium-sized businesses in Malta and Gozo either performed worse than in the same period the year before or registered no improvement should be a source of serious concern for the Government, the Nationalist Party has said.
The PN spoke about a survey issued by the Malta Chamber of SMEs.
Moreover, the Government should also be worried that by the end of 2025, 62% of businesses continued to believe that the country is moving in the wrong direction, as they had consistently stated throughout the year, the PN added.
“Issues such as unfair competition, the lack of a long-term strategy, and the rising cost of living were among the main factors that contributed to these responses in the survey.”
“This confirms what the PN has long been saying: that our country needs a new economic model based on quality that attracts investment. Malta and its economy require a change in direction that only the PN can deliver. Those who created the problem cannot be the solution. These worrying figures emerge from the survey published today by the Malta Chamber of SMEs in collaboration with MISCO, which analysed the performance of small and medium-sized enterprises throughout 2025 as a full year. The Malta Chamber of SMEs’ Business Performance Survey 2025 examined business activity during the Christmas festive period and found that only 26% recorded better sales compared to the same period the previous year, while 44% reported a decline in turnover and 30% said it remained unchanged.”
The PN said that, when asked about the direction in which the country is heading, SME owners cited the main reasons why they believe Malta needs a change in direction.
“The top three reasons were the rising cost of living and affordability, concerns about quality of life and wellbeing, and the lack of leadership and political direction. Other reasons mentioned included poor planning and infrastructure problems, excessive regulation within government, the state of environmental responsibility, social and governance concerns, and economic and financial pressures.”
Businesses were also asked whether they intend to invest over the next 12 months and whether they believe this will be a good time to invest. “Here too, the vast majority of owners – around 80% – said they will not invest or are uncertain. Only just over 20% stated in the final three months of the year that they are prepared to invest more during 2026.”
When asked about their expectations for the year that has just begun, just over 28% said they anticipate that 2026 will be better than the previous year, while 52% expect it to be the same and 20% believe that 2026 will be worse, the PN said.
“The SME Barometer confirms what the PN has long maintained: the need for Malta to adopt a different economic direction that inspires confidence and optimism among business owners and Maltese and foreign investors alike. In the survey, SMEs were also asked to identify the most urgent issues facing the country that they would like the Government to address. These included the lack of good governance (33%), population growth (30%), the level of corruption (24%), the rising cost of living (24%), and the protection of quality of life (21%).”
“As for the main challenges they face personally as business owners, respondents listed employee shortages (41%), unfair competition (29%), excessive competition (24%), and the processing of VISA applications for third-country nationals (17%) as the biggest obstacles. Other issues mentioned included traffic congestion and the ever-increasing cost of living.”
The Opposition said it has for years insisted that the Government address these challenges and has put forward a number of proposals so that the Maltese people are no longer forced to face problems and difficulties created by this very Government through a lack of vision and a style of politics designed solely to enrich a select few.
“The Maltese people want change, and this latest survey by the Malta Chamber of SMEs confirms it. Only a new Nationalist Government can offer renewed hope and peace of mind to the Maltese and Gozitan families, and to business owners in our country.”