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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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