70% Of Maltese Businesses Say The Country Is Going In The Wrong Direction, New Survey Reveals

A new Business Performance Survey 2025 by the Malta Chamber of SMEs shows that while 7 in 10 businesses feel Malta is moving in the wrong direction, many companies managed to stay stable, and some even grew, despite ongoing challenges.

The survey, carried out in January 2026 among 351 businesses operating in Malta, found that 43% recorded an increase in turnover in 2025, while 31% said sales remained the same. Just over a quarter, 26%, experienced a decline.

Profitability was more mixed. 39% of businesses said they were less profitable than the year before, while others reported similar or improved results, suggesting resilience despite pressure on margins.

So what’s holding businesses back? Respondents mainly pointed to higher wages, increased import and transport costs, rising rents and added regulatory expenses. Concerns around unfair competition and illicit trading were also frequently mentioned, particularly among SMEs trying to compete in an increasingly crowded market.

The festive season proved challenging for many, with 44% reporting lower Christmas sales compared to the previous year. However, 26% still saw an increase, showing that consumer spending hasn’t disappeared entirely.

When asked about their biggest challenges, business owners highlighted rising operating costs, labour shortages and competition. On a national level, they’d like stronger action on cost of living pressures, infrastructure, enforcement and long-term planning.

Looking ahead, expectations are cautious rather than pessimistic. Over half believe 2026 will be similar to 2025, while just under 20% expect things to worsen. Many businesses remain unsure about investing in the coming year, but are clearly focused on adapting and staying competitive.

Additionally, the Nationalist Party claimed that last holiday season, 75% of local small and medium-sized businesses performed worse than in the same period the year before or registered no improvement.

The Opposition stated that this should be a cause for concern for the Government, also referring to further findings of this survey conducted by the Malta Chamber of SMEs.

The takeaway from all this? Maltese businesses are under pressure, but many are holding their ground, and are calling for clearer direction to help them move forward with confidence.

#MaltaDaily