Lessons in resilience: Malta marks Sette Giugno

As Malta commemorates Sette Giugno, the public holiday offers a chance to reflect on how historical resilience has shaped the modern business landscape. The events of 7th June 1919 serve as a powerful reminder of Malta’s journey towards self-determination, influencing both societal and economic growth.

Sette Giugno marks the protests against British colonial rule in 1919, sparked by economic grievances, increased cost of living and food shortages post-World War I. These events, which tragically resulted in four fatalities, led to significant political reforms, including the establishment of the Maltese Legislative Assembly in 1921. This political shift laid the groundwork for Malta’s economic transformation from a colony to a vibrant independent state.

At the risk of sounding overly patriotic, resilience has been a hallmark of Malta’s political and economic history. Indeed, today, small and medium-sized enterprises (SMEs) are integral to the country’s economic machine, accounting for 98 per cent of businesses and employing over 75 per cent of the workforce. These enterprises have shown resilience, most recently in response to challenges such as the COVID-19 pandemic, which saw a 12.8 per cent decline in GDP in 2020. Despite these setbacks, SMEs have leveraged government support and digital innovation to recover and grow.

Malta has diversified its economy by developing robust sectors like financial services, iGaming, and blockchain. The financial services sector alone contributes approximately 12 per cent to GDP and employs over 10,000 individuals. The iGaming industry, generating €700 million in revenue annually, employs around 10,000 people, according to official figures.

Investment in digital transformation has also been crucial for Malta’s economic resilience. The Digital Economy and Society Index (DESI) 2023 ranked Malta 8th among EU countries. This reflects the country’s advancements in connectivity, digital skills, and the integration of digital technology in businesses.

As Sette Giugno is celebrated, the evolution of Malta’s economy from its colonial past to a modern, diversified landscape is acknowledged. The resilience and determination exhibited in 1919 continue to resonate, guiding contemporary economic strategies.