With Malta’s economy heavily reliant on unsustainable sectors like construction and tourism, there is growing anticipation that this year’s budget will signal a pivotal shift towards a more sustainable and diversified future. The Corporate Times gathered insights from five experts in their respective areas: economy, finance, tourism, employment and the environment. They all call for a focus on sustainability, innovation, and quality of life to ensure long-term prosperity.

Marisa Xuereb

According to economist Marisa Xuereb, our economy today is unsustainable, heavily reliant on third-country nationals who work in construction and tourism.

“The quality of many apartments is very low and these are often being rented to other foreign workers or tourists. There’s little consideration for aesthetics, infrastructure, or the environment - a cycle that is creating low-paid jobs and driving overdevelopment, overcrowding, and a declining quality of life where few truly benefit from this growth.

“Instead of building more hotels and apartments, we should upgrade existing properties to attract higher-budget tourists and professionals and reduce the need for foreign labour.

“Improving energy efficiency and the urban landscape will foster growth in key sectors like IT, finance, aviation, and healthcare. Less development and congestion will ultimately make our country more appealing to skilled workers and young professionals, which will contribute to a more sustainable and balanced economy,” added Xuereb.

Bernice Buttigieg

Malta’s future direction should also be considered in view of its very strong financial services sector and according to Bernice Buttigieg, FinanceMalta’s Chief Strategy Officer, as global markets shift, Malta needs to keep focusing on innovation, sustainability, and regulatory excellence to ensure an adaptable and resilient business environment to remain competitive.

“While fostering growth in fintech and digital finance, including blockchain and AI-driven financial services will attract investment to diversify the economy, a robust regulatory framework is equally vital to solidify Malta’s reputation as a trusted financial centre while addressing risks such as financial crime,” explains Dr Buttigieg.

Dr Buttigieg’s comments also took into account how sustainability is also important in the context of our financial services sector.

“Green finance and ESG-aligned investments should be central, to attract responsible capital and ensure long-term stability. Additionally, a focus on education and talent development, through specialized training and industry-academia partnerships, will help build the skilled workforce Malta needs,” she added.

“Addressing banking service deficiencies, tax system clarity, bureaucracy reduction, and fostering a vibrant talent pool are essential steps in the right direction.

“Maintaining government support for financial services as a national priority, along with a unified long-term vision, ideally supported by both political parties, will ensure Malta’s continued success in the global financial landscape,” added Dr Buttigieg.

Joseph Galea

Tourism and Hospitality Consultant Joseph Galea, former Director of International Marketing at the MTA and a former CEO at Air Malta, following Malta’s impressive post-COVID recovery, the priority now should be to maintain growth in real income, not just in tourist numbers.

“The government must attract quality tourism and efforts should focus on boosting tourism during off-peak months through incentives that draw international events alongside authentic Maltese experiences with global appeal.”

Galea emphasized the need for improved connectivity and a shift from a reliance on low-cost airlines.

“Instead of focusing on mere volumes, we should focus on curated incentives that appeal to legacy airlines such as Air Lingus and SAS which have both recently announced new services to Malta.

“We should also strive to enhance Malta’s image as a sustainable destination by incentivising tourism operators to obtain sustainability certifications by supporting the costs and support by sustainability experts,” he added.

“Finally there should be greater investment and incentives for product development over mere marketing. This will create a longer-term sustainable pull factor in the market.”

Joanne Bondin

Addressing specifically the employment sector, Joanne Bondin, MISCO’s Director of HR highlights Malta’s upcoming budget as a critical opportunity for economic transformation.

“Incremental changes are no longer enough. We need a value-added economy that focuses on innovation, sustainability, and a better quality of life. This requires strong governance, fiscal responsibility, and workforce optimization through AI, automation, and better career guidance.”

According to Bondin, the country has not managed to diversify the economy away from construction and tourism while progress towards a greener economy remains slow.

“Malta must invest in upskilling and STEM education to meet the demands of high-value sectors like technology, AI, and advanced manufacturing but at the same time, to attract top talent, Malta needs to offer more than career opportunities; a higher standard of living is essential.

“Without a genuine effort to improve living standards and strengthen public accountability, Malta risks missing another opportunity for meaningful progress. I hope this year’s forthcoming budget will pave the way for a sustainable and diversified economic future,” said Bondin.

Gabby Grech Larsson

Sustainability strategy consultant Gabby Grech Larsson is convinced that given how climate change and nature degradation are reshaping economies globally, Malta, being a small island, is highly vulnerable and therefore, sustainability must be embedded across all national policies and take a central role in decision-making.

“To understand and manage the risks, to mitigate our own impact and to seize the opportunities from sustainable practices requires not only practical education and skills development, but also the adoption of nature-based solutions that enhance climate resilience, boost well-being, and create long-term value.”

“In parallel, Malta’s businesses must also operate in an environment that reflects this broader vision for sustainability,” she added. 

“It is crucial for the government to streamline access to grants by simplifying application processes and requirements and reducing the bureaucratic barriers that currently discourage businesses from taking action.

“Lowering the cost of borrowing through green finance mechanisms, such as government-backed incentives, would provide businesses with affordable pathways to invest in sustainability initiatives and increasing the uptake of projects related to energy and water, waste management, circularity, transport, research and innovation, and meeting both regulatory and non-mandatory ESG requirements.

“By incentivising sustainable investments, businesses will be able to lower their environmental impact while enhancing profitability, market position and long-term value,” added Grech Larsson.

This article was first published in The Corporate Times.