Calls for Greater Focus on Quality and Business Support

Following Malta’s Budget 2025 speech, various organisations have voiced their perspectives on the government’s approach, with a strong emphasis on areas that still require attention. The reactions reveal a mix of support, disappointment, and calls for clearer direction on long-term improvements.

ADPD: A Debt-Focused Future

The ADPD expressed concern over the long-term impact of increasing public debt, stating that Budget 2025 adds burdens on future generations without sufficient investment in sustainable sectors. ADPD criticized the ongoing reliance on subsidies, particularly for fuel, rather than investing in green alternatives, public transportation, and sustainable economic practices. They argued that sectors like tourism and construction contribute to environmental degradation, and called for incentives to shift towards higher-value industries, citing the need for a budget that prioritizes quality and sustainability.

Gozo Business Chamber: Focus on High-Value Niches and Infrastructure

The Gozo Business Chamber responded positively to measures that acknowledge Gozo’s economic potential, specifically the inclusion of skills-based migration policies to foster high-value industries. While the budget introduced initiatives for an elderly home, new schools, and an aquatic center in Gozo, the Chamber noted the absence of updates on a new hospital, which they consider critical. Additionally, the Chamber advocated for better utilization of the Gozo Innovation Hub and emphasized the need for improved maritime connectivity, especially for emergencies. They supported incentives for agriculture, heritage restoration, and green initiatives that reduce Gozo’s carbon footprint.

Malta Chamber of Commerce: Lack of Vision for Economic Competitiveness

The Malta Chamber of Commerce critiqued the budget as a “missed opportunity” for fostering productivity and economic competitiveness. While it acknowledged some positive measures, such as revised tax brackets and support for occupational pensions, the Chamber highlighted the need for a strategic approach to issues like sustainable tourism, transport, waste management, and digitalization. They voiced concerns over the lack of support for SMEs and felt the budget did not adequately tackle Malta’s challenges with infrastructure, workforce skills, and over-construction. The Chamber called for a comprehensive, long-term strategy to precede future budgets.

General Workers’ Union (GWU): A Budget of Social Solidarity

The GWU expressed satisfaction with the budget’s focus on social solidarity and commended measures that align with its proposals, such as continued subsidies for energy, fuel, and essential goods. The union highlighted the budget’s positive impact on disposable income through tax band expansion, pension increases, and in-work benefits. Additionally, the GWU praised the government’s commitment to occupational pensions and updates to the Wage Regulation Orders. Secretary General Josef Bugeja described the budget as a sustainable vision that balances economic growth and support for workers, all while maintaining a commitment to reducing the deficit.

SME Chamber: Lack of SME-Centric Measures

The SME Chamber expressed disappointment with the budget’s lack of focus on small and medium enterprises. While they welcomed the continuation of energy subsidies and work-life balance provisions for self-employed individuals, they were concerned by the absence of a promised reduction in business tax rates. Additionally, the Chamber noted a cut in electric vehicle subsidies, which they argue could hinder green adoption. They emphasized the need for a more robust approach to skills training, infrastructure, and bureaucracy reduction to enhance productivity and competitiveness for SMEs.

Kamra tal-Periti: Progress on Regulatory Reforms

The Kamra tal-Periti praised the increased funding for regulatory authorities, including the Building and Construction Authority and the Occupational Health and Safety Authority, seeing it as a positive step for improving quality in the construction sector. The Kamra also welcomed the allocation of €150,000 to support its statutory functions under the Periti Act, a long-awaited development that allows it to uphold professional standards, conduct inquiries into malpractice, and set ethical guidelines for the industry. They expressed commitment to using the funds to enhance public safety, sustainability, and quality in Malta’s built environment.

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Photo Source: DOI