Malta Employers calls for Budget 2027 to shift focus from population growth to productivity

Malta Employers today presented its proposals for Budget 2027 to a delegation from the Opposition led by the Nationalist Party Leader Dr Alex Borg. During its presentation, the Association expressed its views that the forthcoming budget should translate the long-term direction set by Economic Vision 2050 into practical measures that encourage enterprises to invest, improve efficiency and create higher-value economic activity.

Budget 2027 should accelerate a shift away from economic growth driven primarily by population expansion, imported labour and domestic consumption towards a model based on productivity, higher value added, innovation and export competitiveness.

While Malta’s rapid economic growth has generated employment, higher incomes and public revenue, the current model is facing mounting constraints. Labour shortages, pressure on infrastructure and growing social concerns highlight the need to generate more economic value without relying primarily on an expanding workforce.

Businesses should be supported in adopting artificial intelligence, automation and digital technologies, while investment in skills, education and better management practices would be essential to improve productivity and help workers move into higher-value roles.

The Association also called for investment in infrastructure, digital systems and energy resilience, alongside more efficient public services and better governance. It argued that public expenditure should be assessed on the value and outcomes it delivers, with greater emphasis on productive investment and well-targeted social support.

Stronger enforcement against tax abuse and money laundering was also needed to protect public revenue and ensure fair competition among businesses.

Malta Employers said economic competitiveness and social progress should be pursued together, with sustainable employment, better wages and improved quality of life depending on an economy in which enterprises are productive, competitive and able to invest.

Malta Employers President Ivan Refalo said: “The Association is putting forward these proposals in the long-term national interest of Malta. They are intended to support the path set out in Vision 2050 and ensure that the decisions taken today lay the foundations for a more productive, competitive and resilient economy tomorrow. The challenge is to move beyond growth measured primarily in numbers and towards growth that creates greater value, improves quality of life and makes better use of our limited resources.”

Director General, Kevin J Borg concluded added: “We urge government to use Budget 2027 as an opportunity to provide clear direction and the right conditions for this transformation. Ultimately, our objective is to secure smart growth, balanced prosperity and a stronger society for Malta and future generations.”

ENDS

16 October 2026