MDA backs capital investment, calls for long-term development vision

The Malta Development Association (MDA) has welcomed the increase in capital investment announced in the Budget, as well as social measures supporting families, widows and pensioners. It said economic growth in recent years had made it possible to provide greater support to those in need, adding that it was positive for the wealth created to translate into benefits for society.

The association also welcomed the Government’s commitment to consult before introducing changes to tax systems. It expects this consultation to be open and transparent, and to take place at a stage when proposals from stakeholders can influence decisions.

At the same time, the MDA expressed concern about the overall impact of the announced taxes and charges, including increased costs associated with employing foreign workers. While supporting the protection of workers’ rights and effective regulation, it stressed that these additional burdens are expected to lead to higher prices for consumers across a wide range of products and services, including property.

The association therefore called for greater clarity on how the Super Bonus will be financed and on the extent to which these increases could reduce its effective benefit for families.

Tourism and property rental measures

Regarding increases affecting tourism and property rentals, the MDA stressed that the additional revenue should be allocated exclusively to improving Malta’s tourism product, with full transparency over how the funds are spent.

It said an increase in the eco-contribution alone would not attract quality tourism. This requires improvements in cleanliness, maintenance, infrastructure, public spaces, and the protection of cultural and natural heritage.

The industry has already invested billions of euros, with further substantial investments planned for the coming years. The MDA said this private-sector commitment should be supported by public investment that raises the quality of the destination as a whole.

For Malta to attract visitors seeking quality and willing to spend more, it must offer a better experience both in accommodation and beyond it.

Call for Green Building incentives and support for smaller developers

The MDA also noted the lack of concrete incentives for green building and measures specifically aimed at small and medium-sized developers.

It said accessible support was needed to encourage energy and water efficiency, the use of sustainable materials, and improvements to existing buildings, without placing the entire cost burden on buyers.

Smaller operators should be given the opportunity to invest and compete, the association said, to prevent the market from becoming increasingly concentrated in the hands of those with the greatest financial strength.

Need for a long-term national development vision

Beyond individual measures, the association believes the Budget lacks a clear long-term vision for the country’s development, supported by strategic projects, measurable targets and implementation deadlines.

Such a vision should bring together planning, housing, transport and the environment, while addressing everyday problems such as waste collection, road conditions and traffic management.

The MDA reiterated its willingness to contribute constructively towards achieving these objectives. It said serious consultation and effective implementation could turn the announced investment into lasting benefits for families, businesses and future generations.