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Malta’s FDI Attractiveness Rises to 81% as Skills Shortages and Infrastructure Concerns Persist: Malta’s attractiveness to foreign investors has edged up to 81% in EY’s 2026 survey, from 79% last year, with 90% of respondents planning to maintain or expand operations. Telecommunications infrastructure has overtaken corporate taxation as the country’s leading investment asset. However, skills shortages remain the biggest concern, cited by 63% of investors, while 57% criticised transport and logistics infrastructure. Long-term confidence is less certain: only 60% expect their companies to remain in Malta in 2036, while 38% are unsure. Investors identified AI as the sector with the greatest growth potential, while gaming was seen as both a key growth.
Malta Records €344m Government Deficit as Public Debt Nears €12bn
Malta’s General Government recorded a deficit of €344.1 million in the second quarter of 2026, while public debt reached €11.98 billion, equivalent to 47% of GDP, according to figures published by the National Statistics Office (NSO) on Wednesday. Government revenue rose by €212.3 million year-on-year to €2.18 billion, driven mainly by higher income and wealth taxes. However, expenditure increased by €321.5 million to €2.52 billion, largely due to higher intermediate consumption, employee compensation and social benefits. Public debt increased by €890.7 million compared with the same quarter in 2025. Meanwhile, government-guaranteed debt fell by €88.1 million year-on-year to €869.1 million, equivalent to 3.4% of GDP. Accrual-based accounting adjustments reduced the reported deficit from €379.2 million to €344.1 million. (The Malta Independent)
Morning Briefing
New €35 million reverse osmosis plant under construction at Għar Lapsi
A €35 million reverse osmosis plant is being built at Għar Lapsi, adding production capacity to Malta’s drinking water infrastructure. The new facility, known as Plant B, will feature six reverse osmosis systems capable of producing a combined 30,000 cubic metres of potable water daily, while the existing plant remains operational. The Water Services Corporation said the project forms part of a €400 million investment programme in water infrastructure over the next decade. During a visit on Tuesday, Energy, Water and Environment Minister Miriam Dalli was briefed on the testing procedures used to monitor drinking water quality, including analysis at the corporation’s internationally accredited laboratory. The site has also been equipped with 888 photovoltaic panels, representing a €600,000 investment expected to generate 820,000 kWh of electricity annually. The WSC produces around 30 million cubic metres of water each year. (TVM News)
PN calls for review of school transport routes amid lengthy journeys
The Nationalist Party has called for an urgent review of school transport routes following reports of children leaving home at 5.15am and spending up to 90 minutes travelling to school, with similarly long journeys home. The party said lengthy commutes reduce children’s time for rest, study and family life, and urged the authorities to consult parents, schools and operators to address unnecessary detours, improve route allocation and assess whether additional capacity is needed. It also called for clear standards on pick-up times and punctuality, alongside a notification system to inform parents of delays and route changes. The PN said transport connections for students attending the University of Malta, MCAST, the Institute of Tourism Studies and other institutions should also be strengthened. It proposed extending free travel to students using Tallinja Direct services through a government-funded agreement with clear eligibility criteria. (Times of Malta)
Foodborne illness cases rise by 51% in Malta in July
Reported sporadic cases of foodborne illness in Malta rose from 165 in June to 249 in July, an increase of around 51%, according to figures presented in Parliament. In June, 125 cases were confirmed and 40 suspected, while six outbreaks involving a further 24 cases were reported. In July, 156 sporadic cases were confirmed and 93 suspected, alongside 13 outbreaks involving 31 confirmed cases. The number of reported outbreaks therefore more than doubled in a month. Combined, sporadic cases and those linked to outbreaks increased from 189 in June to 280 in July, a rise of approximately 48%. The figures come after public attention focused on a cluster of hepatitis A cases investigated in connection with an establishment in Ħal Qormi. (Newsbook)
