During our 2026
Annual Company Updates, we were honoured to welcome Simon L. Barberi, Director – Strategy and Execution at EY Malta, who delivered an engaging presentation on “How is Malta viewed by industry leaders?” His expert insights sparked meaningful conversations and provided our team with a broader understanding of Malta’s positioning, opportunities, and challenges within the global business landscape.
Drawing from the EY Malta Attractiveness Survey 2025, Simon highlighted a significant rebound in investor sentiment, with 79% of respondents now viewing Malta as an attractive destination for Foreign Direct Investment (FDI), a substantial increase from 54% the previous year. This renewed confidence is anchored in Malta’s relative stability, its readiness to embrace the digital age, and its competitive corporate tax regime.
Key Insights from the Presentation:
- Top FDI Attractors: Investors continue to rank Malta's corporate taxation (78%) and the stability of the social climate (70%) as the country’s leading attractions. Additionally, Malta's cost base remains favourable compared to other jurisdictions, particularly regarding energy and payroll.
- The Talent Challenge: Skills shortages remain a critical concern for Malta, with 67% of investors unable to recruit specialised skills locally. Shortages are particularly acute at entry-level (60%), C-suite (52%), and specialist/mid-level roles (51%).
- Infrastructure and Innovation: While telecommunications infrastructure is viewed positively, investors pointed to transport and logistics as well as the R&D/innovation environment as areas requiring urgent improvement. Only 15% of investors believe Malta's current infrastructure is adequate for its population growth.
- Future Growth Sectors: Industry leaders identified Artificial Intelligence (AI) as the single standout long-term bet for growth (25%), followed by tourism, aviation, and Fintech. While AI is seen primarily as a tool to enhance productivity (53%), its adoption is currently hampered by the lack of specialised talent.
- A Shift Toward Quality: There is an emerging sentiment among investors favouring "better and less" economic growth, emphasising high-value activities and innovation over mere volume.
The Path Forward: Agility and Specialisation
Simon emphasised that for Malta to remain globally competitive over the next decade, it must move beyond traditional growth models. The focus is shifting toward a "quality-led" approach where the country targets strategic, high-value FDI rather than just increasing volume. This requires a concerted effort to address the capacity pressures on transport, utilities, and housing that come with a rapidly expanding economy.
A critical part of this evolution involves education reform. With 61% of investors citing skills as a primary constraint, the goal is no longer just "filling vacancies" but defining a "talent architecture" that supports a specialised economy. This includes fostering a workforce capable of leveraging automation and AI to reduce labour dependency.
Furthermore, while near-term commitment remains strong, with 90% of companies planning to maintain or expand their operations in the next 12 months, long-term uncertainty is rising. One in three investors is currently unsure if they will still be in Malta in ten years, reflecting a global trend where firms are reassessing location strategies amidst volatile geopolitics.
Conclusion
The presentation concluded with a clear roadmap: Malta’s next phase will be defined by specialisation, agility, and execution aligned with foresight. By prioritising workforce development, infrastructure investment, and high-value innovation, Malta can continue to play an outsized role in the global landscape, transforming from a small destination into a dynamic hub for future-ready industries. Simon’s insights serve as a vital guide for our team as we navigate these opportunities and contribute to Malta's ongoing economic success.
This article draws on data from the EY Attractiveness Survey Malta published in October 2025.
