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