Malta, SMEs cautious on investment as quality of life concerns grow

VALLETTA (MALTA) (ITALPRESS/MNA) – More than half of Malta’s small and medium-sized enterprises (SMEs) are uncertain about investing over the next year, while concerns about overpopulation and quality of life continue to rise, according to the latest SME Barometer.

The survey, conducted by the Malta Chamber of SMEs in collaboration with MISCO, gathered responses from 402 businesses between 1 and 22 July.

Employee shortages remained the biggest operational challenge, cited by 38.8% of respondents, although this marked a slight improvement from late 2025. Unfair competition ranked second at 19.2%, with many businesses blaming weak enforcement and non-compliant operators.

Concerns over delays in processing visas for third-country nationals also increased to 16.7%, highlighting continued recruitment difficulties.

When asked to identify the government’s top priorities, 39.6% of SMEs pointed to overpopulation, while concern for safeguarding quality of life rose to 20.9%. Calls to improve the ease of doing business also increased.

The report found that 64% of respondents believe Malta is heading in the wrong direction, citing quality of life, infrastructure and planning, and the cost of living as their main concerns.

Meanwhile, 56% of businesses said they remain uncertain about making investments in the coming year, while only around one in five believe it is the right time to invest.

Although good governance, corruption and inflation remained concerns, their importance declined compared with previous surveys. The environment ranked among the lowest priorities identified by respondents.

– Photo Ipa Agency –
(ITALPRESS).

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