According to a recent survey, 64% of local businesses believe Malta is heading in the wrong direction
The barometer, published by the SME Chamber with MISCO Malta, surveyed 402 local businesses between June 1 and 22.
SMEs Urge Faster Work Visa Processing While Calling for Better Quality of Life in Malta
A new report by the Malta Chamber of SMEs has highlighted ongoing labour shortages as the biggest challenge facing businesses, while also urging the government to address national issues such as overpopulation and quality of life.
The quarterly SME Barometer, conducted in partnership with MISCO Malta, surveyed 402 local businesses between June 1 and June 22.
According to the report, employee shortages remain the number one concern for businesses, with nearly four in ten SMEs saying they struggle to recruit workers. The Chamber recommended improving the efficiency of processing third-country national (TCN) work visas to help businesses fill vacancies and support economic growth.
At the same time, many respondents identified overpopulation as the country's biggest challenge, prompting the Chamber to call for policies that balance workforce needs with improvements in residents' quality of life.
The survey also found that 19.2% of businesses cited unfair competition as a major issue. Many respondents believe businesses that fail to comply with regulations gain an unfair advantage due to weak enforcement, while others pointed to competition from public entities and inconsistent application of rules.
Business confidence remains cautious. The report shows that 64% of SMEs believe Malta is heading in the wrong direction, while the remaining respondents believe the country is moving in the right direction.
Investment sentiment also remains subdued. More than half (56%) of businesses said they are uncertain whether the next 12 months are a good time to invest, while only around one in five believe it is the right time to make new investments.
The Nationalist Party (PN) described the findings as concerning, saying they reflect the uncertainty facing one of Malta's most important economic sectors. SMEs Shadow Minister Michael Piccinino and Economy Shadow Minister Darren Carabott said the Opposition has repeatedly proposed measures to address the issues highlighted in previous SME Barometers but claimed their recommendations have been ignored by the government.
In response, the Government said business confidence has improved, noting that the percentage of businesses believing it is not a good time to invest has dropped from 32% to 22%.
The government added that it remains committed to improving quality of life, strengthening business competitiveness, and increasing productivity through the Malta Vision 2050 strategy. It also highlighted an annual €100 million investment supporting automation, digitalisation, artificial intelligence, and skills development for small businesses.
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