Power cuts should serve as wake-up call, Chamber tells PM

Last week’s recurring power outages, which affected households and businesses across Malta, should serve as a “wake-up call”, Malta Chamber of Commerce president William Spiteri Bailey told the Prime Minister and cabinet members on Monday.

“A modern digital economy, with AI, data centres and digitalisation, deserves a robust, modern and reliable grid,” Spiteri Bailey said during a meeting held following the start of the new legislature.

“We cannot build tomorrow’s economy on infrastructure that cannot handle today’s demand. Infrastructure works must be planned well, with clear timelines, and the public must be kept informed.”

His hard-hitting speech followed weeks of power outages across the island, as extreme temperatures placed heavy pressure on Malta’s electricity distribution network.

Some residents said they spent days without electricity and were forced to throw away spoiled food, while others slept in communal corridors to escape the heat.

Spiteri Bailey said the outages had affected businesses across the board, resulting in losses in production, data, clients and income. In extreme cases, he said, power cuts could also pose a security risk.

“Climate change and heatwaves are not a surprise,” he said.

During his speech, Spiteri Bailey outlined eight critical issues the country must address, ranging from the economy and traffic to government transparency.

'Why are we still focusing on quantity over quality?'

One of the main points raised by Spiteri Bailey was that Malta must move away from an economy dependent on quantity, arguing that the current economic model had reached “its limit”.

“We cannot keep increasing the population, the number of cars and buildings, and the pressure on infrastructure, and think that this all brings progress,” he said.

“Our country does not become more prosperous simply by increasing the number of people. It becomes more prosperous when we have people who bring value.”

He pointed to smaller countries such as Ireland, Singapore and Estonia, which he said had shifted towards economic models based on quality, talent and value creation.

Productivity, he added, should become a national priority, supported by greater investment in technology, AI, digitalisation, reskilling and upskilling.

Spread out major events and concerts

On tourism, Spiteri Bailey said Malta’s success should not be measured by record visitor numbers alone, but by the value each tourist brings.

He questioned why major activities and events had to be concentrated in summer and suggested spreading them more evenly throughout the year.

“If more tourists means more congestion, more waste, more pressure on our infrastructure and on residents, we need to ask ourselves whether this is truly sustainable,” he said.

The Chamber president was also critical of Malta’s traffic problems, warning that congestion should not be allowed to become normalised.

Traffic gridlock was recently ranked as Malta’s biggest problem in a Times of Malta poll. According to the National Statistics Office, the number of vehicles on Maltese roads increased by an average of 35 a day during the final quarter of 2025.

Earlier this month, the Chamber called on the government to take a serious stand on the country’s long-running traffic problems.

Spiteri Bailey also urged public institutions to strengthen transparency and accountability.

As an example, he questioned why the financial statements of KM Malta Airlines had yet to be published.

“Transparency is not a luxury. It is a citizen’s right,” he said.

He concluded by saying Vision 2050 should be more than a polished document or slogan and should instead be backed by clear priorities, difficult choices and effective implementation.

“Now is the time to move from quantity to quality, from more people to greater productivity, and from economic growth to growth that genuinely improves people’s quality of life,” he said.

Finding the right balance: Abela

Prime Minister Robert Abela described Monday’s meeting as an important opportunity to discuss the legislature’s priorities and the way forward.

Addressing the debate over quality versus quantity, Abela referred to the government’s labour migration policy and the need to strike a balance between the number of foreign workers in Malta and the stability of the labour market.

“The question is how much we want to tighten the labour migration policy,” Abela said.

He stressed the need to find the right balance while also ensuring the country continues moving towards a more modern and digital economy.

On the power cuts, Abela said the government had made substantial investments not only in energy generation but also in electricity distribution.

He said significant work had already been carried out and that further investment would continue to ensure the grid could cope with the country’s electricity demand.

At one point, he noted that moving towards a more digital economy, while reducing reliance on additional workers, would itself result in higher electricity consumption.

“We should not be pulling the brake on investment. We must continue investing in electricity, healthcare and our infrastructure as a whole,” the Prime Minister said.

He concluded by saying the Chamber and the government ultimately wanted the same outcome: for the country to move forward, improve residents’ quality of life and create sustainable growth opportunities for businesses.

Also present at the meeting were Home Affairs Minister Glenn Bedingfield, Energy Minister Miriam Dalli, Infrastructure Minister Jonathan Attard, Finance Minister Clyde Caruana, Economy Minister Silvio Schembri, Tourism Minister Jo Etienne Abela and European Funds Minister Keith Azzopardi Tanti.