Digitalisation and Skilled Workers are Key for Malta to shift from Quantity to Quality

The Malta Chamber and Bank of Valletta Host ‘Diagnosing the Maltese Economy’ Conference

The Malta Chamber of Commerce, Enterprise and Industry, in collaboration with Bank of Valletta (BOV), organised a conference titled ‘Diagnosing the Maltese Economy’, bringing together key stakeholders to explore Malta’s economic trends, future developments, and critical challenges.

In his opening speech, President of The Malta Chamber, Chris Vassallo Cesareo, noted that “strong governance and leadership are not just hallmarks of a healthy democracy—they are indispensable for a robust economy. A nation’s ability to navigate crises, adapt to global trends, and drive sustainable growth depends on the integrity and effectiveness of its institutions.” He also emphasised that the global economy remains uncertain, and Malta faces significant challenges, such as addressing skills shortages within industries, fostering a workforce prepared for the demands of emerging sectors, and ensuring that education and training systems align with the needs of a modern economy.

The CEO of Bank of Valletta, Kenneth Farrugia, who also participated in the panel discussion, in his closing remarks highlighted the role of governance, saying that, “governance is not just about compliance but about ensuring the resilience and sustainability of an organisation. By fostering clear lines of responsibility and planning for generational leadership transitions, we can safeguard both operational continuity and strategic vision. At a time when global economic and social dynamics are shifting, it is critical for boards and executive teams to work collaboratively, with a focus on diversity, risk management, and long-term success.”

This annual event which the business community anticipates from The Malta Chamber in collaboration with BOV, serves as a pivotal platform for industry leaders, policymakers, and experts to examine Malta’s economic trajectory, identify emerging opportunities, and assess potential risks.

Head of Economics at BOV, Malcolm Bray, shared his assessment on Malta’s economic developments and prospects. During his keynote presentation he noted that, “if we want to understand outcomes, we need to explore economic behaviour and how this is shaped by incentives.” He suggested that there is potential for greater use of capital and more entrepreneurship. He concluded that Malta’s economic outlook remains cautiously optimistic but stressed the importance of closely monitoring long-term forces such as higher life expectancy, shifts in global power, technological improvements, and climate change, as these create challenges if not well prepared for.”

During the panel discussion, moderated by Head of Media and Communications Strategy, Rachel Bondi Attard, The Malta Chamber CEO Dr Marthese Portelli said that “over the past four years, The Malta Chamber has consistently pointed out several key challenges that the country needs to address, including productivity, the labour market, and infrastructure. Despite the country’s exponential GDP growth, we failed to take the necessary steps to manage this growth effectively.” Additionally, she stated that while we often hear the terms ‘quality’ and ‘innovation,’ it is important to ensure that everyone has a clear understanding of what we aim to achieve with these concepts. “The Malta Chamber has emphasized the need to provide tourists with a quality experience. Regarding ‘innovation,’ it should address current challenges and prepare us for the future”.

Nick Spiteri Paris, CEO at BigBon Group emphasised that the biggest pain point in the retail industry is talent acquisition. He added that “one of the most significant challenges in the retail industry today, and for the past several years, has been employment and labour.” He added that “blending digital and physical retail is imperative as consumers today expect a seamless interplay between digital convenience and physical experiences.”

Natalie Briffa Farrugia, Chairperson at Vassallo Group, noted that as of 2024, only 24% of the workforce in her Group consists of Maltese and EU nationals. This begs the question: Where are the Maltese workers? She added that “while regulation is important, we must be careful not to create additional barriers, both as a country and as employers. Our goal should be to foster a balanced and sustainable workforce that benefits everyone.”