The Malta Employers Association has urged political parties to exercise restraint and realism in their electoral pledges, warning against a campaign dynamic driven by competitive promises that may prove unsustainable in the long term.

In a statement issued during the ongoing election campaign, the association said it had already cautioned parties against proposing measures lacking comprehensive planning or those that could undermine business competitiveness through higher costs or reduced operational flexibility. It expressed concern that this advice had largely been ignored, with major parties appearing to "out-bid" each other through commitments that will ultimately be financed by employers and taxpayers.

A key area of concern is the expansion of flexible working arrangements. While acknowledging their benefits, the Association stressed that further extensions must be accompanied by safeguards to offset potential productivity losses. These could include increased worker commitment, investment in automation, or additional recruitment - all of which carry cost implications and may contribute to higher immigration and population pressures.

The association cited a January 2026 survey showing that 72 per cent of employers already offer some form of flexibility, primarily to improve work-life balance and employer branding. However, it noted that in 40 per cent of companies, less than 10 per cent of roles can be performed remotely, limiting the scope for further expansion.

It also questioned the affordability of certain proposals, including energy subsidies and a €1,000 annual bonus for full-time workers, estimated to cost €200 million annually.

Beyond labour measures, the association raised concerns about planning policies, warning that decades of construction-led growth have damaged the built environment and quality of life. It called for stronger, not weaker, planning regulations.

The association is expected to publish its memorandum to political parties in the coming days, reiterating its central message: electoral credibility requires discipline, and not every demand can or should be met.