The Nationalist Party has said that a new survey on Malta's family businesses highlights a widening gap between official economic indicators and the day-to-day reality faced by small firms, urging the government to adopt a higher-quality economic model that supports SMEs and attracts investment.
In a statement reacting to findings published by The Malta Chamber of Commerce and consultancy firm EMCS, PN shadow ministers Michael Piccinino and Darren Carabott said the results confirmed concerns previously raised by the Opposition and by earlier surveys on the state of small and medium-sized enterprises.
The survey found that 55% of family businesses reported profits that had either remained unchanged or declined, despite increases in turnover, as rising costs continued to erode earnings.
Only 37% of respondents said they had experienced growth in both revenue and profits.
The PN said that the findings showed that many small businesses were not benefiting from the economic growth highlighted by the government.
It also linked the results to broader warnings issued in recent weeks about Malta's economic and fiscal outlook ahead of the presentation of the 2027 Budget.
According to the survey, many family businesses are spending more time addressing immediate operational issues than planning for future growth.
The Malta Chamber described this as "firefighting", with around 90% of these challenges related to day-to-day operations, including staffing difficulties.
Recruitment and retention emerged as the most significant concern, with almost 80% of businesses identifying the availability of skilled workers as their main challenge. More than half of respondents, 54%, said wage costs were increasing faster than revenue.
The survey also pointed to differences across business sizes, with medium-sized family firms reporting greater difficulties than both smaller and larger enterprises.
The PN said the results reinforced its calls for policies aimed at supporting family businesses and SMEs, including measures to improve workforce skills and encourage investment.
It also criticised the government for not adopting proposals put forward by the Opposition to address challenges facing the sector.