Opposition outlines business incentives, new sectors in 2026 Budget reaction

Opposition Leader Alex Borg has outlined a series of proposals aimed at reshaping Malta’s economic model, with a strong focus on workforce transformation, business incentives, and strategic industry development.

The response came a week after the unveiling of the 2026 Budget, which the Nationalist Party described as lacking a future-focused vision.

In a speech delivered on Monday (yesterday), among Dr Borg’s central proposals were fiscal measures aimed at stimulating private sector investment, cutting bureaucracy, and developing new high-value industries.

One of the standout ideas was a pilot and public consultation on the implementation of a four-day work week, a system already being explored in several European countries.

This goes hand in hand with broader incentives to encourage teleworking, reduced hours, and flexible working models across both the private sector and government departments.

Backing this approach, Dr Borg proposed fiscal incentives for businesses that offer on-site childcare facilities, making it easier for working parents to remain active in the labour market.

In line with this, Dr Borg called for a diversification of the economy away from its current population-based growth model, proposing strategic investment in sectors like medtech, cybersecurity, cryptography, and expanded support for aviation and maritime industries. These areas, he said, would build a “value-added economy centred on innovation rather than numbers.”

The Opposition also highlighted the importance of nurturing a knowledge-based workforce, urging the government to develop a national strategy to boost participation in STEM education and to open vocational and trade schools – both of which have long been touted by stakeholders as crucial to addressing the skills gap.

Other business-facing proposals included:

• Less taxation for everyone
• Financial support for NGOs and artists, particularly in the creative economy,
• Equal pay for equal work, addressing long-standing issues of pay discrepancies among contractor employees in public service roles,
• A drive to streamline bureaucracy for Maltese entrepreneurs,
• A new tourism strategy focused on attracting visitors with higher disposable income.

Whether the Government incorporates any of these proposals in its implementation of the 2026 Budget remains to be seen – but the Opposition’s response signals rising pressure to adapt Malta’s economic direction to a changing world.