Malta’s development lobby has warned that red tape has become overwhelming following the COVID-19 pandemic and that business owners are “almost giving up” when faced with the additional paperwork. 

“The country is seriously risking a total collapse in investment, as overwhelming bureaucracy by various government departments, authorities and the banks, are becoming next to impossible,” the Malta Developers Association said on Tuesday. 

It said it was extremely concerned by what it described as excessive bureaucracy and urged authorities to “pull up their socks” and ensure entrepreneurs were encouraged to invest instead of being “hassled”. 

The MDA offered the government its help to improve existing systems and slash red tape where it was not needed “while respecting the rules”. 

But while the MDA sounded an ominous note when warning about bureaucracy, it acknowledged that business had been relatively healthy, in part thanks to tax reduction measures introduced following the pandemic-caused economic slowdown.

Property sales in June, the MDA said, “were reportedly already at the same level as June of last year.”