The news that more than three quarters of small and medium-sized business owners, 78%, are either uncertain or believe that it would be unwise to invest over the next 12 months is concerning and confirms the climate of uncertainty facing this sector, which is so important to Malta's economy, the Nationalist Party said Thursday.

The survey published by the Chamber of SMEs for the second quarter of 2026, covering April to June, once again confirms that the reality facing businesses is far removed from the positive picture the Government attempts to portray.

While more than half of SMEs, 56%, remain uncertain, 22% said they are not prepared to invest over the next 12 months. Only 22%, around one in five, believe that this is an opportune time to invest. This means that three in four SMEs in Malta and Gozo do not foresee positive prospects in the coming months.

Furthermore, the same SME Barometer survey, carried out by the Chamber of SMEs in collaboration with MISCO, shows that the majority of SMEs believe the country needs change because it is heading in the wrong direction.

While 64% believe Malta is not heading in the right direction, only 36% believe the country is doing well. More concerningly, the proportion of respondents who believe Malta is heading in the wrong direction has increased since the first quarter of the year, when it stood at 59%, while the proportion who believe the country is doing well has fallen from 41% between January and March 2026.

This further confirms what the PN has long maintained: Malta needs an improved economic model based on quality and capable of attracting investment, the party said.

The survey also lists the reasons why small and medium-sized business owners believe the country is heading in the wrong direction. In order of priority, these include concerns about quality of life and wellbeing, a lack of planning and infrastructure problems, the cost of living and affordability, a lack of leadership and political direction, economic and financial pressures, the state of the environment, government regulation, and concerns relating to social issues and governance.

The SME Barometer confirms what the PN has long argued: Malta needs a different economic direction that inspires confidence and optimism among business owners and Maltese and foreign investors.

As part of the survey, SMEs were also asked to identify the most urgent issues the Government should address. These included population growth, cited by 40%; the lack of good governance, cited by 27%; the rising cost of living, cited by 22%; the protection of quality of life, cited by 21%; and corruption, cited by 18%.

Of particular significance is the increase in the number of SMEs identifying unplanned population growth as an urgent issue that the Government must address, compared with the previous three months. SMEs in Malta and Gozo now view overpopulation as the country's most pressing problem, the PN said.

When asked what is having the greatest negative impact on their businesses, owners identified challenges including labour shortages, unfair competition, the traffic crisis, the processing of visas for workers from outside the European Union, and the rising cost of living.

The Opposition said it has been calling on the Government for years to address these challenges and has put forward several proposals to ensure that the Maltese people no longer have to face problems and difficulties created by this Government itself. Unfortunately, every proposal presented by the Opposition has been ignored by the Labour Government.

The statement was signed by Michael Piccinino Shadow Minister for the Self-Employed, Small Enterprises and Cooperatives, and Darren Carabott, Shadow Minister for the Economy, Technology and Strategic Projects

Government rejects PN claims on SME confidence, says investment sentiment is improving

The government has rejected the Nationalist Party’s interpretation of a recent survey of small and medium-sized businesses, arguing that the Opposition focused on one figure while ignoring signs of improving investment sentiment.

In a statement, the Ministry for the Economy, Technology and Strategic Projects said the proportion of respondents who believed it was not a good time to invest had fallen from 32% to 22%.

The number of businesses that considered the next 12 months a good time to invest had also increased, the ministry said, insisting that the same survey cited by the PN showed an improvement in confidence towards the Maltese economy.

The government was replying to a PN statement expressing concern that 78% of SMEs were either uncertain about investing or believed it would be unwise to invest over the coming year.

The figures emerged from the SME Barometer for the second quarter of 2026, covering April to June and carried out by the Malta Chamber of SMEs in collaboration with MISCO.

The survey found that 56% of respondents were uncertain about investing, 22% believed it was not a good time to invest and another 22% considered it an opportune time.

“The Opposition has once again chosen to focus on a single figure and present it in a misleading manner, while ignoring the broader picture reflected in the survey,” the ministry said.

It also accused the PN of criticising the government without presenting credible alternatives or solutions.

The government acknowledged that further improvements were needed and said it would continue working to improve quality of life, strengthen business competitiveness and move the economy towards higher productivity and greater value-added activity under Malta Vision 2050.

The ministry highlighted the MicroInvest scheme, which supports wage increases, as well as an annual €100 million investment in automation, digitalisation, artificial intelligence and skills development.

It also referred to Malta Enterprise schemes intended to help businesses invest in technology, improve productivity and reduce their reliance on low value-added work. BusinessFirst continued to provide guidance and support to SMEs, it added.

According to the ministry, these measures were helping Malta attract investment in high value-added sectors including medtech, semiconductors, microchips, esports and digital industries.

The government said Malta continued to benefit from a strong and resilient economy that was creating quality jobs and sustainable economic growth, as recognised by institutions including the International Monetary Fund and the European Central Bank.

In its statement, the PN had also highlighted that 64% of respondents believed Malta was heading in the wrong direction, up from 59% during the first quarter of the year.

Businesses identified population growth, governance, the cost of living, quality of life and corruption among the most urgent issues requiring government action.

The government called on the Opposition to move beyond what it described as “criticism for criticism’s sake” and to work in the interests of Maltese and Gozitan families.

“At a time of global economic challenges, our country needs seriousness, responsibility and a shared commitment to the national interest,” the ministry said.