Navigating Malta's Economic Journey: Insights from the Past, Directions for the Future

What makes our country tick economically? For nearly two decades, EY has been probing this question, drawing insights from the Malta Attractiveness Survey—an annual study that gauges the sentiments of foreign investors operating in our islands. Our annual EY Future Realised Conference serves as more than just a gathering—it's a forum for shared understanding. By bringing together government leaders, the opposition, business executives, investors, and innovators, we foster a space where different perspectives can come together to debate, discuss, and help shape the direction Malta's economic future.

Standfirst In 2014, we posed a foundational question at EY: Where should Malta's economic journey take us? While many were navigating the immediate challenges, we were gazing towards the horizon. The aim wasn't just about growth; it was about purposeful, strategic growth.

In 2016, amidst the accelerating pace of global change, we suggested a roadmap for Malta to carve out economic niches that ensured sustainable growth in high-trajectory sectors like FinTech, e-commerce and commodity trading. This wasn't mere sectoral advocacy; it was about positioning Malta as a nexus of innovation and forward-thinking economic growth. That same year, amidst a tight labour market, we advocated for a balanced approach to labour market growth. This included concerted educational reform in alignment with a forward looking economic strategy; fast-track visas for highly skilled workers; incentives to bring back highly skilled Maltese; and the strategic integration and reskilling of African migrants to end exploitation. 2016 also saw us hold a debate on the property market, asking if prices were sustainable, and linking policy relating to vacant properties to their upward trajectory.

By 2017, our dialogue expanded in scope and ambition. We posed several pressing questions: What type of economic growth did we want as a country? Could Malta support a population of 1 or even 3 million, and how would infrastructure investments need to evolve to sustain such growth? With its inherent agility, could Malta position itself at the forefront of the technological revolution, particularly in AI and other emerging technologies? We advocated transformative use-cases, such as AI-controlled traffic lights to alleviate congestion and government chatbots designed to efficiently answer citizen queries, underscoring the potential of these technologies to profoundly enhance the daily lives of Maltese citizens.

In 2018, as our economy was heating up, we championed the "Beyond GDP" narrative, bringing over David Pilling, a Financial Times journalist and author of the book “The Growth Delusion” to underscore that an economy's strength lies not only in its numbers but also in its people and their quality of life.

Come 2019, the spotlight shone brightly on innovation and sustainability. As the world grappled with the urgent need for a more sustainable future, we questioned Malta's role in this global mission. Could we pioneer sustainable solutions while balancing our economic ambitions?

The challenges of 2020, marked by the global pandemic, brought forth the imperatives of resilience and adaptability. We pondered: Could Malta's economy swiftly pivot, leveraging its strengths and resilience while addressing its vulnerabilities?

In 2021, with the echoes of the pandemic still resounding, we elevated a point we had raised over a number of years: Were we too reliant on our tax model? As global tax landscapes evolved, we discussed the need for Malta to diversify its economic pillars, ensuring robustness amidst uncertainties. We continued the discussion on tax last year, convening some of the best minds in the business to discuss the risks, challenges and opportunities a new model would bring about.

Now, as we approach the EY Future Realised Conference 2023, previously known as the Malta Attractiveness event, we invite you to reflect on these past dialogues and to help chart our shared future. Our past insights have been prescient, views echoed by the Prime Minister and the Finance Minister in recent months as they also champion the need for a new economic model. 

As Malta stands at this pivotal moment, we must ask: How do we reconcile our rapid growth with the infrastructural demands it brings? How do we ensure that this growth, while propelling us forward, doesn’t destroy what has made us attractive in the first place?

Our growth, the AI revolution, global tax reforms – these aren't just topics. They are the critical inflection points of our times. How do we navigate them? How do we ensure Malta's growth is sustainable, inclusive, and forward-looking? How do we carve out a niche in the AI realm and evolve our economy and workforce accordingly? And amidst global tax shifts, how do we secure Malta's position as a fair, competitive, and attractive hub?

We don't have all the answers. But together, we can find them.

Join us. Let's shape the dialogue, frame the narrative, and craft the solutions. With national and global experts on our panel, we're poised for rich, impactful discussions. But we need you – the thinkers, the leaders, the decision-makers – to drive these conversations.

Malta's future beckons. Let's not just walk into it; let's shape it. Attend the EY Future Realised Conference 2023. Together, let's shape the direction to shape Malta’s path forward.

Ronald Attard is the Managing Partner for EY Malta, as well as EY Cyprus. He is also the Regional Managing Partner for EY Strategy and Transactions across Central, Eastern, Southeastern Europe and Central Asia.

EY Future Realised Conference 2023 will take place on 25 October at the Mediterranean Conference Centre, Valletta. Speakers include Malta’s Prime Minister and Opposition Leader, the President of the European Parliament, Roberta Metsola, government ministers, industry CEOs, and international guest speakers which include former European Prime Ministers as well as high-profile speakers from international technology companies. Networking drinks will be held on the eve and day of the event for the 1,000 c-level delegates from Malta and overseas. For further information www.ey.com/en_mt/events/malta-future-realised-2023