The Malta Employers' Association is set to present a set of electoral proposals that seek to steer national debate towards a longer-term, more structured approach to Malta's economic and social development, at a time when pre-electoral discourse is increasingly shaped by competing fiscal commitments and short-term measures.

The Association is warning against what it describes as a growing "bidding approach" in political campaigning, where parties escalate promises in an effort to secure immediate electoral advantage. While recognising the realities of electoral competition, it argues that this trend risks undermining fiscal discipline and long-term planning. In its view, such an approach can lead to rising public debt or limit the ability of future generations to benefit from sustained investment and economic stability.

Instead, the proposals advocate a shift towards a policy framework rooted in competitiveness, responsibility, good governance and the national interest. The emphasis is on moving beyond short-term electoral cycles and towards structural reforms that strengthen Malta's long-term economic resilience.

A central pillar of the proposals is economic transformation, particularly in light of rapid technological change and the growing influence of artificial intelligence. The Association is calling for a gradual shift away from low-value, labour-intensive activities towards higher value-added sectors. This transition, it argues, must be supported by sustained investment in education, skills development and innovation, alongside stronger support for technology adoption, training and business process re-engineering initiatives within companies. These measures, it notes, are essential to improve resilience, enhance productivity and widen the scope for flexibility within the economy.

Labour market reform is another key area of focus. The proposals advocate for a more balanced framework that promotes flexible work arrangements, but cautions against blanket measures that could place jobs and competitiveness at risk. Instead, the emphasis is on targeted and carefully designed interventions that reflect the realities of different sectors. The Association also calls for a review of labour market policies and the strengthening of public entities responsible for their administration, in order to improve efficiency and effectiveness.

At the same time, the proposals highlight the need to better utilise existing human resources within the economy. They suggest that policy should aim to encourage greater participation in productive employment, ensuring that idle labour capacity is more effectively integrated into the workforce. In parallel, there is also a call for extending school hours in order to reduce the gap between educational schedules and the working week, with the aim of better aligning family, education and labour market needs.

The document further addresses Malta's tourism model, proposing a gradual shift towards higher value-added niche markets. The aim, it suggests, should be to increase the share of quality tourism, focusing on sustainability, visitor value and longer-term sectoral resilience rather than volume alone.

In term of manufacturing, the Association called for adequate support to undertakings in their technology adoption, training and BPR initiatives to facilitate their transformation, contribute to their resilience and increase scope for flexible work arrangements for their employees, enhancing the employer branding of the industry.

Demographic sustainability also features prominently, with Malta's low fertility rate described as a structural challenge with long-term implications for economic stability, public finances and social cohesion. The Association calls for a more holistic policy response aimed at strengthening family life and addressing the broader social and economic factors that influence demographic trends.

Malta Employers President Ivan Refalo stressed the need for a more coherent and forward-looking national conversation. He said Malta must move beyond fragmented policy responses and instead adopt a more integrated approach to long-term challenges.

"Malta needs a broader discussion on economic resilience, productivity, demographic sustainability and quality of life," Refalo said. "What we are putting forward is a call for greater collaboration between political parties, social partners and civil society on issues of national importance, including economic transformation, labour market reform and environmental protection."

He added that Malta's future competitiveness will depend on the ability to adopt realistic and coherent policies anchored in a long-term vision. "The country deserves policies that are not only responsive to today's challenges but also designed to build strength for tomorrow. That requires discipline, coordination and a willingness to focus on outcomes rather than short-term gains."

The proposals will be formally presented to political parties in the coming days as part of the Employers' Association's contribution to the electoral policy debate.