In recent years, Malta’s infrastructure has come under scrutiny due to factors such as population growth, increased tourism and a strategic shift towards service-based industries. Despite having a well-developed infrastructure system, the country faces significant challenges in meeting the growing demands placed on it.
The 2024 EY Malta Attractiveness Survey revealed that over 85% of foreign direct investors believe current infrastructure preparedness is inadequate. The challenges Malta faces are multifaceted, affecting transportation, water supply, healthcare, education, waste management systems and other areas.
While re-evaluating the economic framework may help manage these pressures, such changes must be gradual to avoid socio-economic disparities.
Furthermore, Malta’s ageing demographic and low birth rates will continue to necessitate foreign labour, particularly in critical sectors like healthcare. Therefore, significant investment in infrastructure is essential to ensure future prosperity.
To address these infrastructure challenges, public funding alone will not suffice, especially in the wake of emerging geo-political tensions that will require adjustment in political priorities.
The private sector must, therefore, play a crucial role in co-funding infrastructure projects. Governments need to adopt diverse financing strategies to attract private investment and ensure the long-term affordability of these essential projects.
In this context, and building on last year’s EY Future Realised 2024 Conference, which underscored the pressing need to address infrastructure gaps and explore viable solutions, EY is pleased to announce an upcoming business breakfast event titled ‘Build and Share: Sustaining Malta’s Growth’.
Scheduled for March 12 at the Malta Chamber, this event, organised in collaboration with the Times of Malta and the Malta Chamber of Commerce, presents a unique opportunity for business leaders, entrepreneurs and professionals to engage in insightful discussions, network with peers and explore the latest trends shaping the business landscape as we navigate the challenges and opportunities we face as a country.
The event will feature a keynote address by Mats Persson, a renowned expert in business strategy and innovation, who served as special adviser to the British prime minister and was chief of staff to the Chancellor of the Exchequer.
Persson is part of a team that authored a compelling study focused on the UK market, which delves into the current challenges and opportunities facing businesses in a rapidly changing economic environment. This research underscores the importance of adaptability and collaboration in navigating evolving market dynamics. It provides a comprehensive analysis of the business environment, focusing on key areas such as digital transformation, sustainability and workforce development. The research emphasises the necessity for businesses to embrace digital tools and technologies to enhance efficiency and competitiveness. Furthermore, it highlights the significance of sustainable practices in fostering long-term growth and resilience.
The study also explores the vital role of collaboration between the public and private sectors, with support from financial institutions. It emphasises the need for a united approach to drive innovation and economic growth while enhancing infrastructure readiness.
However, challenges such as cultural resistance to collaboration and concerns over competitive advantage must be addressed. Despite the challenges, there are significant opportunities for funding that can help address Malta’s infrastructure needs.
The upcoming business breakfast will serve as a platform for industry leaders, policymakers and entrepreneurs to discuss these funding opportunities and explore collaborative approaches to infrastructure development.
By sharing insights and experiences, participants can identify innovative solutions that will not only alleviate current pressures but also pave the way for sustainable growth in the future.
As we prepare for this important event, we invite stakeholders to join us on March 12, for a morning of discussion, networking and collaboration. To register, visit https://globaleysurvey.ey.com/jfe/form/SV_7364tqekId2YAGq.
Chris Meilak and Glenn Fenech are economists at EY Malta’s Economic Advisory team.