Malta Chamber of SMEs

Joint Press Release: Economic Transformation Requires Careful Calibration of Economic Policies

Posted on 30.10.2026 by SME Chamber

The Malta Chamber of Commerce, Enterprise and Industry, the Malta Hotels and Restaurants Association (MHRA), the Malta Chamber of SMEs and the Malta Employers’ Association (Malta Employers) have consistently advocated for a well-planned, holistic economic transformation that steers the country decisively towards an economy driven by higher productivity and of value over volume. Real, lasting progress requires moving up the value chain through strategic investments, workforce upskilling, and enterprise modernisation. This demands a comprehensive, long-term plan underpinned by carefully calibrated policy decisions that give enterprise the ability, certainty and stability required to restructure.

The measures announced in Budget 2027 for Third-Country Nationals (TCNs) fall short of the careful planning and calibration required. We have consistently supported rigorous, evidence-based initiatives, notably the national Labour Migration Policy, developed through months of constructive social consultation to better manage labour migration. We are therefore concerned that these measures were announced without prior stakeholder consultation or a comprehensive socio-economic impact assessment. While recognising the need for a well-regulated labour market, decisions affecting business costs, labour availability and competitiveness should be evidence-informed and developed through genuine social dialogue before they are introduced.

While we stand fully prepared to endorse balanced and well-considered measures that guide Malta towards a higher-productivity economy, we cannot support rushed policy decisions, introduced overnight without any consultation, that will bring significant instability to the business community and ultimately affect consumers and the general public.

Introducing substantial cost increases, covering increased permitting & renewal fees, public transport and childcare charges, without accounting for practical operational challenges, risks seriously undermining business continuity across several sectors. These measures will inevitably raise operating costs and fuel inflation in the domestic market, leaving businesses to either absorb the additional expense and restricting capital investment in productivity transformation, or pass it on to consumers.

These measures give the impression of a Government urgently seeking fresh revenue to honour its electoral commitments.

Meaningful economic transformation requires a carefully calibrated balance between incentives and disincentives. There must be readily accessible support that enables businesses to digitalise, automate routine tasks and substantially enhance workplace productivity. Tangible initiatives to improve productivity and efficiency, incentives supporting digitalisation, automation, and workforce upskilling are essential to facilitate the transition towards a less labour-intensive economic model. These supporting measures need to be rolled out very quickly and not just presented, whilst targeting the wider pool of companies, to achieve a well calibrated and balanced approach to better align cost increases with effective and timely support for productivity.

Equally important is the need for Government to lead by example. Government should seek to improve the efficiency of public services rather than employing additional people, thereby creating a greater strain on the resources that can be taken up by private enterprise. A comprehensive review of processes across ministries, departments and public entities aimed at eliminating duplication, reducing bureaucracy, containing recurrent expenditure and improving efficiency is required. Such an exercise would also identify opportunities for the redeployment of human resources towards the private sector.

The four organisations therefore encourage Government to engage constructively with social partners, reconsider the implementation of the proposed measures and work towards a coordinated approach that provides businesses with the certainty and support required to adapt.

A successful economic transformation requires shared responsibility, effective social dialogue and a long-term commitment to sustainable growth.

Issued jointly by:

The Malta Chamber of Commerce, Enterprise and Industry
Malta Hotels and Restaurants Association (MHRA)
Malta Chamber of SMEs
Malta Employers’ Association (Malta Employers)

Press Release: Malta Chamber of SMEs and CCPA strongly condemn Budget decision to remove free childcare for TCN’S

Posted on 27.10.202627.10.2026 by SME Chamber

The Malta Chamber of SMEs and the Childcare Centres Providers Association (CCPA) express their strong disappointment and serious concern over the Government’s decision, announced in Budget 2027, to withdraw free childcare services for TCNs who do not hold long-term resident status.

This decision, taken without prior consultation with the sector, risks creating significant repercussions for childcare operators, working parents and employers across the Maltese economy.

According to the latest data, approximately 25% of children attending childcare centres are children of third-country nationals, the majority of whom do not hold long-term resident status. These are families who, despite not having resided in Malta long enough to qualify for such status, contribute directly to Malta’s economy, labour market and social security system.

Both Malta Chamber of SMEs and CCPA are particularly concerned about the timing and complete lack of consultation surrounding this announcement. Childcare operators have already undertaken commitments and operational planning for upcoming intakes, including February 2027, based on the existing framework and ongoing agreements.

Furthermore, the recently concluded agreement governing childcare services was negotiated and built on a financial and operational model that incorporates these numbers. At no stage during these discussions was any indication given that such a fundamental change in eligibility was being considered.

Removing a significant segment of beneficiaries from the scheme without prior consultation or proper assessment risks undermining the financial sustainability of childcare centres and potentially affecting employment within the sector itself and other support services. This includes childcare workers, some of whom are also working parents supporting their own families.

Employers across the board depend on TCNs to address persistent labour shortages. Faced with the loss of free childcare, many working parents may be unable to afford alternative arrangements, leaving employers with the difficult choice of absorbing additional childcare costs to retain their employees or losing an essential and valuable part of their workforce.

It is unacceptable that a measure with such far-reaching consequences for families, businesses and an entire sector should be introduced without meaningful consultation or a proper impact assessment.

The Malta Chamber of SMEs and CCPA therefore call on Government to urgently reconsider this decision and immediately engage with the sector to assess its implications and identify a fair and sustainable way forward.

Childcare is not simply a benefit. It is an essential service that enables labour market participation, encourages female participation and supports Malta’s economic productivity. Undermining its accessibility will ultimately come at a cost to the entire economy.

Press Release: Malta Chamber of SMEs recognises Budget 2027’s focus on stability but raises concerns over unaddressed business challenges as well as productivity

Posted on 26.10.202627.10.2026 by SME Chamber

The Malta Chamber of SMEs welcomes a number of measures announced in Budget 2027, particularly the continuation of energy subsidies, which provide businesses with much-needed support and stability amid ongoing international economic uncertainty. According to the latest SME Barometer close to 80% of the businesses replied that subsidies are essential or moderately important.

However, the SME Chamber notes that, despite the positive intentions behind certain measures, their practical implications and spillover, risk placing additional burdens on employers, particularly small businesses. One such example is the withdrawal of free childcare eligibility for employees who are Third-Country Nationals (TCNs) and the steep increase in single permit license and Infrastructure fees, both measures that could further increase employment costs and create additional labour shortages.

The SME Chamber welcomes the reduction in the corporate tax rate from 35% to 25% for businesses with a turnover of up to €1 million. This is a step in the right direction and the SME Chamber calls for further widening of this tax reduction.

Although the Government recognises the importance in strengthening Malta’s economic competitiveness. Nevertheless, the Chamber is concerned that, despite the emphasis on productivity, the Budget does not introduce concrete incentives or solutions to help businesses improve efficiency and achieve more with fewer resources. Instead, certain measures risk limiting immediate workforce availability and increasing the burden on employers, without providing enough tools or support to address productivity challenges. The Chamber of SMEs’ budget proposals included a number of measures to strengthen the country’s productivity.

Furthermore, several pressing challenges continue to affect businesses and remain insufficiently addressed. These include persistent employee shortages, traffic congestion, unfair competition and rising inflation, alongside other concerns repeatedly highlighted in the Quarterly SME Barometer. Following the recent Pisa report, the SME Chamber would have expected better measures in relation to the education sector.

Improving productivity must be supported by practical measures that enable businesses to optimise resources, invest in innovation and strengthen competitiveness.

Several proposals put forward by the SME Chamber remain unaddressed, including the establishment of a cross-party taskforce to discuss and define Malta’s long-term priorities for businesses. The SME Chamber stresses that such proposals must move beyond commitments and translate into concrete action.

The SME Chamber reiterates the importance of encouraging and facilitating investment. Businesses need a supportive environment that promotes expansion, innovation and sustainable growth, rather than additional barriers to operate.

The Malta Chamber of SMEs urges the Government to ensure that budgetary measures reflect the realities faced by employers and translate into tangible improvements for businesses, greater emphasis must be placed on reducing operational burdens, addressing labour market challenges and introducing practical solutions that enhance productivity, encourage investment and strengthen the long-term sustainability of Malta’s SMEs.

Malta Chamber of SMEs meets Opposition Leader ahead of Budget 2027

Posted on 08.10.2026 by SME Chamber

Ahead of the Budget 2027, council members of the Malta Chamber of SMEs met earlier today with Opposition Leader Dr Alex Borg, together with Dr Adrian Delia, Shadow Minister for Finance, and Dr Darren Carabott, Shadow Minister for Economy, Technology and Strategic Projects, to present the SME Chamber’s Budget proposals.

During the meeting, both sides discussed the current economic situation and exchanged views on the way forward.

Click here to view the SME Chamber Budget 2027 document

Press Release: Productivity requires shared responsibility, Not Blame

Posted on 08.10.202608.10.2026 by SME Chamber

The Malta Chamber of SMEs is concerned by comments made by Minister Clyde Caruana, attributing Malta’s productivity challenges primarily to employers choosing cheaper labour over capital investment.

While businesses undoubtedly have a responsibility to invest, innovate and improve efficiency, it is unfair and overly simplistic to place the burden of Malta’s productivity challenge predominantly on employers.

Productivity is also heavily influenced by the environment in which businesses are expected to operate.

As highlighted in the Malta Chamber of SMEs’ Budget Proposals 2027, improving productivity requires more than investment in technology. It also depends on efficient regulation, accessible skills, effective workforce management and public services that support businesses rather than burden them. The proposals specifically identify traffic, skills mismatch, unfair competition and over-regulation as factors contributing to lower productivity.

Every hour spent dealing with duplicated paperwork, unnecessary administrative procedures, regulatory delays or a lack of coordination between public entities is an hour taken away from productive business activity.

Rather than merely pointing towards the problem, the Malta Chamber of SMEs has put forward a comprehensive set of proposals for Budget 2027 aimed specifically at improving productivity. These include a Mandatory SME Test for new laws, regulations and major administrative procedures, a Regulatory Stocktake, implementation of the Once-Only Principle so that businesses are not repeatedly asked for the same information by different public authorities and a Productivity Tech Kit to help micro and small businesses adopt digital tools and more efficient systems.

The SME Chamber has also proposed measures to encourage productive investment and reinvestment, together with policies aimed at fair competition, improved enforcement, energy efficiency, transport and mobility. The overall objective is to create the conditions that allow businesses to invest, innovate and grow sustainably.

The SME Chamber has also proposed the establishment of a cross-party taskforce on Malta’s long-term priorities to identify the country’s main challenges, agree on a common way forward and provide greater continuity on reforms extending beyond a single electoral term. This is the type of mature and coordinated approach that Malta’s productivity challenge requires.

Businesses must play their part, but productivity is a shared national responsibility. If we genuinely want to invest more in technology, automation and capital, we must also remove the regulatory, administrative and infrastructural obstacles that consume productive time and discourage investment.

Joe Attard, CEO of Green MT, passes away

Posted on 17.09.202609.10.2026 by SME Chamber

It is with great sadness that we remember Joe Attard, CEO of Green MT Limited ( Malta Chamber of SMEs subsidiary) and a long-standing figure in Malta’s business community.

Joe also served in senior roles within the (previously GRTU) bringing his experience and commitment to Malta’s business and environmental sectors.

His contribution and dedication will be remembered by many. Our sincere condolences to his family, colleagues and friends.

May he rest in peace

SME Chamber presents 40 Budget 2027 proposals, calls for productivity-driven budget and cross-party taskforce on Malta’s National priorities

Posted on 16.09.2026 by SME Chamber

The Malta Chamber of SMEs has presented 40 proposals for Budget 2027 during a meeting at Auberge de Castille with Prime Minister Robert Abela and several cabinet members, including the Minister for Finance Hon. Clyde Caruana ahead of the 2027 Budget.

One of the Chamber of SMEs main proposals includes the formation of cross-party taskforce on Malta’s long-term priorities, recognising that some of the decisions Malta needs to take will inevitably be difficult and at times, unpopular with the general public.

The purpose of such a forum would be to allow Government, Opposition and key stakeholders to collectively confront these difficult choices and agree on a long-term direction, without any political party being placed in a position where it can gain an electoral advantage by supporting or opposing necessary reforms.

By creating a shared framework for these decisions, the taskforce would help prevent important national issues from becoming political topics, where the fear of losing popularity ultimately leads to inaction.

Malta needs a mechanism that allows difficult but necessary decisions to be taken in the national interest, rather than decisions being avoided simply because they are politically inconvenient.

The proposals are built around five key pillars:

1. Incentivising Investment & Compliance

Reduce the corporate tax rate to 25%, introduce a 15% deferred tax rate on retained and reinvested SME profits, improve cash-flow measures and reward businesses that

remain compliant and invest in growth, technology and their workforce.

2. Proportionality, Good Governance & Fair Competition

Strengthen enforcement against unfair competition, make public procurement more accessible to SMEs, establish stronger independent procurement oversight and

ensure regulation reflects the size and capacity of smaller businesses.

3. A Productivity-Driven Policy

Introduce a mandatory SME Test, undertake a regulatory stocktake, expand the Once-Only principle through a digital Business Account, establish a TCN recruitment one-stop shop and launch a Productivity Tech Kit to help SMEs digitalise and automate.

4. Energy & Resource Efficiency

Help businesses turn energy audits into investment, support commercial energy storage, improve access to the electricity grid, establish a renewable-energy one-stopshop and reintroduce an ESG Grant.

5. Transport & Mobility

Reduce the productivity cost of congestion through smarter mobility incentives, better multimodal transport, off-peak vehicle registration, more efficient waste collection and logistics and stronger freight connectivity for Gozo.

The overarching message of the Budget proposals is clear: Malta must move from a growth model based primarily on more people, more journeys and more resources, towards one that delivers more value from every hour worked, every euro invested and every unit of energy and land used.

The Malta Chamber of SMEs is calling for Budget 2027 to put SME productivity at the centre of Malta’s next phase of economic development.

In the coming weeks the SME Chamber will be presenting its Budget proposals to the opposition and other key stakeholders.

Press Release: New EU Packaging Rules Exclude Small Businesses from the Single Market

Posted on 11.09.202611.09.2026 by SME Chamber

The Malta Chamber of SMEs is raising serious concerns over the impact of the new EU Packaging and Packaging Waste Regulation specifically on the provisions which became applicable on 12 August 2026.

The new EU packaging rules require businesses placing packaged products on another Member State’s market to comply with that country’s Extended Producer Responsibility requirements, which can include registration, reporting, payment of EPR fees and, in certain cases, appointing an authorised representative.

Particularly for Maltese micro and small businesses trading across the European Single Market, this regulation is disproportionate; going directing against the European Union’s think small first principle adopted under the Small Business Act for Europe in 2008.

The SME Chamber fully supports the environmental objectives behind the Regulation. However, the new cross-border Extended Producer Responsibility (EPR) obligations have created disproportionate administrative and financial burdens for small businesses, shipping to other EU countries in small numbers.

For Maltese businesses, this issue is particularly serious. Unlike businesses operating in much larger Member States, Maltese SMEs cannot rely on a large domestic market to grow. Access to the Single Market is therefore essential, not optional.

Requirements linked to registrations, reporting, producer responsibility schemes and, in certain cases appoint authorised representatives in different Member States, translates into significant fixed costs. For a large multinational these costs may be relatively minor. For a Maltese micro-business selling limited quantities across several EU countries, they will make cross-border trade commercially unviable and unsustainable.

SME Chamber President Mr. Paul Abela stated that ‘Environmental responsibility must not come at the cost of pushing Europe’s smallest businesses out of the Single Market.’

The Single Market cannot become 27 separate compliance markets. The Malta Chamber of SMEs is also concerned about the competitive position of Maltese retailers. Local businesses already face higher logistics, transport and operational costs, due to our insularity, while increasingly competing with large international online platforms and non-EU sellers. Local low volume suppliers have already been constrained to suspend all online sales to EU countries due to this legislation, putting at risk their business and livelihood.

The Malta Chamber of SMEs is therefore calling for greater proportionality, including simplified EU-wide registration and reporting, meaningful thresholds for micro and low-volume businesses, and stronger enforcement on non-EU sellers and online platforms. The Malta Chamber of SMEs is concerned that requiring a very small business to establish different EPR compliance arrangements across several European countries could discourage that business from selling cross-border altogether.

In this regard, the SME Chamber is calling the European Commission and the European parliament to;

Stop all specific EPR fines and cross-border registration requirements and mandatory third-party “Authorized Representatives” fees for micro-businesses effective immediately while legislation is being reformed;

EU-wide de minimis threshold: Completely exempting small-volume sellers and micro-enterprises from cross-border packaging bureaucracy, which full destination country registration is not required;

Establish a single electronic declaration for remaining SMEs through the SMEs Member State of establishment identifying quantities exported to each member state;

Mutual recognition /data exchange between National Registers, so that the destination Authority can verify the declaration without imposing a separate registration bureaucracy on the SME.

SME Chamber participates during national conference ‘L-Istat tan-Nazzjon 2026’

Posted on 07.09.202609.10.2026 by SME Chamber

The Malta Chamber of SMEs’ Deputy President, Mr Philip Fenech, participated on Friday in the national conference L-Istat tan-Nazzjon 2026, held at San Anton Palace.

The conference focused on looking 50 years into Malta’s future, exploring the opportunities, challenges and vision that will shape our country in the decades ahead.

Article Business Now:

When I took part in the State of the Nation conference at San Anton Palace recently, hosted by the President of Malta, the main conversation was centred on looking 50 years into our future.

But as I argued on that panel, before we try to project half a century ahead, we first need to sit down, take stock of where we are today, and understand the true value of what we have built.

Now that the peak summer season is drawing to a close, it is the right time for a clear reality check.

The boisterous crowds of youths we saw in July and August have largely left, and the predictable wave of seasonal panic has started to cool down with them.

We have to be honest about what happened. The frustration over localised misbehaviour in places like Swieqi was understandable, but perspective was completely lost.

Unruly groups made up a microscopic fraction of the tourists who came to Malta. Yet through social media, the incidents that happened were turned into a national drama.

The right response was never panic, it was firm law enforcement. By bringing in on the spot fines and a visible security presence, where Armed Forces personnel supported police patrols, we sent a firm message that Malta welcomes visitors, but lawlessness will simply not be tolerated.

During the conference, I pointed to the economic reality driving this entire debate.

Our economy has grown from a €7 billion GDP to over €25 billion. That massive expansion created huge business and consumer confidence, which triggered unprecedented private investment.

On one side of the coin, visionary operators have raised our core product to exceptional standards.

Older and outdated tourism properties are constantly being replaced by brand new, higher standard developments.

Historic palazzinos across our traditional villages have been restored into boutique residences, while top tier five-star hotels, Michelin star restaurants, upscale clubs, lounges, retail, and leisure outlets continue to lift our overall profile.

We are celebrating genuine Maltese character right alongside our vibrant modern hubs.

Our traditional charm has not been destroyed, it has actually expanded across new niches and demographics.

The proof of this work is clear.

This past January, our visitor numbers were higher than the absolute peak of August 2012.

Reaching mid-summer volume in the middle of winter is the direct result of strategic, year-round planning that took years to achieve.

However, as I made clear at San Anton, this rapid growth also brought a side effect, which is localised pressure and what I call the copycat syndrome.

While pioneers innovate and raise standards, a secondary wave of investors simply duplicates existing ideas in spaces that are already saturated.

This kind of redundancy adds physical pressure to our localities and fuels complaints about overtourism without adding any real economic value.

We do not need more of the same. Private capital needs to shift toward gap filling, niche quality, and real value addition instead of simple duplication.

We also need to remember where we started. Those who complain about peak periods seem to forget the alternative we lived through in the past, an era of under tourism, empty hotels, seasonal layoffs, and economic stagnation.

Nobody wants to go back to that. What we are going through today are growing pains, not dying pains.

Seasonal pressures require active management, not alarmism.

Peak demand puts a strain on local lifestyles, and that impacts our wellbeing index. Host wellbeing and guest satisfaction go hand in hand.

We felt this friction during peak months when street cleansing struggled to keep up with waste volumes, and during power disruptions caused by replacing legacy cables and installing new substations.

On top of that, because local labour shortages force us to bring in foreign workers to support the service sector, our population footprint expands.

To manage this load over the coming decades, we have to embrace digitalisation and AI across operations to reduce labour dependency, while planning ahead for global shifts like climate change.

Our product is not ruined. It is richer, more diverse, and more competitive than it has ever been.

As I emphasised at San Anton, the way forward is not to pull the emergency brake on an economic engine that brought us to €25 billion, but to steer it through better infrastructure, technology driven efficiency, disciplined investment, firm enforcement, and sensible governance.

Stop all specific EPR fines and cross-border registration requirements and mandatory third-party “Authorized Representatives” fees for micro-businesses effective immediately while legislation is being reformed;

EU-wide de minimis threshold: Completely exempting small-volume sellers and micro-enterprises from cross-border packaging bureaucracy, which full destination country registration is not required;

Establish a single electronic declaration for remaining SMEs through the SMEs Member State of establishment identifying quantities exported to each member state;

Mutual recognition /data exchange between National Registers, so that the destination Authority can verify the declaration without imposing a separate registration bureaucracy on the SME.