80% of businesses believe Malta is moving in the wrong direction

80 per cent of local businesses believe that Malta is moving in the wrong direction. This has emerged from the Chamber of Small and Medium-sized Enterprises (SMEs)’s latest barometer.

Notably, when compared to the previous three barometers, this has increased every quarter, “a clear indication that the private sector is worried.”

During the survey, shared during a press conference on Wednesday, participants highlighted key concerns that they feel the Government must address.

Respondents said that lack of good Governance (41 per cent), overpopulation (39 per cent) and the level of corruption (32 per cent) need to be addressed.

Urgency to address the lack of good governance and overpopulation have increased when compared to the last three quarters. On the other hand, the need to address the level of corruption by the Government decreased when compared to Q2.

Discussing good governance, the SME Chamber acknowledged the Government’s more robust efforts in tax collection. However, “now businesses demand that the money collected from them are not being wasted and are being put to good use.”

Overpopulation ranked as the second most pressing issue, a sentiment previously reflected in surveys by residents but now echoed by businesses as well.

“Over the past barometers, overpopulation has shifted towards one of the topmost issue for businesses and it’s important to get an understanding of what is worrying the country. The effects of overpopulation are largely being felt in support services and infrastructure,” the SME Chamber said.

Investment confidence for the next 12 months

Only 13 per cent of businesses expect a good investment environment in the coming year, a one per cent drop from Q2. However, respondents uncertain about investment rose to 57 per cent, suggesting a slight improvement in confidence.

What does the SME Chamber recommend?

The SME Chamber put forward a number of recommendations to address good governance. For instance, that Public Procurement Ombudsman should be independent and be able to scrutinise tenders that are presented to it through formal presentation.

According to the recommendations, the Ombudsman would also carry out independent checks and reviews of adjudication or non-performance.

“The Government must focus on regaining trust in the economy and in building a positive business sentiment in general,” it commented.

Furthermore it also calls the Government to develop comprehensive strategies to address overpopulation, including urban planning initiatives, investment in infrastructure, and measures to promote sustainable development and balanced demographic growth.

About the survey

The barometer surveyed 432 businesses operating in Malta. Answers were given as part of an online survey with unique submissions, gathered between 9th and 18th October 2024.

The majority of businesses contacted during the survey form part of the retail, import, distribution, wholesale (goods and services) sector (36 per cent), followed by the tourism, accommodation, catering and entertainment services sector (23.5 per cent). 14.5 per cent form part of the transport, services and logistics (land, sea and air) sector, 14 per cent from the legal, professional and other services, 12 per cent from real estate, construction, finishing and property rental, 10 per cent from the industrial sector, nine per cent from education, training and schools, six per cent from health, wellness and personal care services and 1.6 per cent from the arts and crafts industry.

In terms of size of business by head count, the majority of respondents have between one and nine employees (50.5 per cent) , followed by 31 per cent who have between 10 and 49 employees. From the respondents 16 pe recent employ more than 50 employees and 2.5 per cent employ over 249.

The survey has a margin of error of 4.9%.