Updated 1230
Central Bank: Malta GDP to Hold at 3.7% Through 2028: Malta’s economy is forecast to grow steadily at 3.7% between 2026 and 2028, the Central Bank said, confirming earlier projections. Growth will be driven mainly by strong private consumption, supported by tax changes, with services exports also contributing. Employment growth is set to moderate, while unemployment is expected to fall to 2.8%. Inflation is projected to ease to 2.0% by 2028. The deficit is forecast to narrow to 2.0% of GDP and debt to decline after peaking in 2026. Risks to growth are balanced, though inflation risks tilt slightly upward. (Times of Malta)
HSBC Malta Posts €109m Profit, Announces Record Dividend Payout: HSBC Bank Malta reported €109 million in pre-tax profit for 2025, marking its third consecutive year above €100 million, despite lower interest rates. Profit fell 29% year-on-year, but customer deposits rose to a record €6.5 billion, with strong growth in wealth management and insurance. The bank proposed a final dividend of 8.4 cents per share, bringing the total 2025 payout ratio to 60%. Capital and liquidity ratios remained well above regulatory requirements, reinforcing HSBC Malta’s strong balance sheet and market position. (The Malta Independent)
€6 Million Boost as Student Stipends Rise by 15%: Student stipends will increase by 15% from tomorrow, benefiting around 16,600 post-secondary and tertiary students under a 2026 Budget measure. The 25 February payment will reflect December at the old rate and January at the new rate. The €6 million uplift applies to all stipend categories, including supplementary allowances. Announced during a visit to MCAST by Prime Minister Robert Abela and Education Minister Clifton Grima, the measure forms part of wider student support schemes, including grants, tax relief and internet vouchers.
Morning Briefing
PM denies Judge’s interference claims
Prime Minister Robert Abela has denied allegations that he interfered with the judiciary, following claims made by Judge Wenzu Mintoff in a letter sent to Cabinet earlier this week. Speaking to journalists hours after the letter was made public, Abela rejected the accusations and confirmed he would not recuse himself from discussions on the appointment of the next chief justice, as requested by Mintoff. He said he could not “abdicate” from his constitutional responsibilities in the process. In his letter, Mintoff alleged that Abela had pressured a member of the judge’s staff in relation to a case concerning the calculation of a payout, and claimed this was done in an attempt to influence the amount awarded. Mintoff further alleged that threats were made to have the staff member dismissed, and described Abela as placing financial considerations above the independence of the judiciary. The allegations relate to proceedings connected to the 2015 Paqpaqli Għall-Istrina car crash, in which Abela had acted as legal counsel for one of the victims prior to becoming prime minister. Addressing the claims, Abela insisted the episode referred to by Mintoff occurred weeks after the case had been concluded. He stressed that the matter in question did not concern a court judgement but rather the calculation of a taxable amount by the court registry. (Times of Malta)
Political storm erupts in wake of Judge’s letter to Cabinet
The Chief Justice has asked the Judiciary Standards Commissioner to investigate Judge Laurence Mintoff, after he sent an explosive five-page letter to all ministers earlier this week. Under the judiciary’s code of ethics, judges may not communicate privately with members of the executive regarding their duties, except through the Chief Justice or senior magistrates. The inquiry will be conducted by Commissioner Toni Abela, whose findings will be submitted to the Chief Justice for assessment. The Commission for the Administration of Justice may then deliberate and, if necessary, impose disciplinary action, including citation, pay reduction, suspension, or removal. The controversy follows Judge Mintoff’s accusations of government interference in the judiciary, which prompted strong political reactions. Meanwhile, Opposition Leader Alex Borg said that Robert Abela has to answer for these developments. “That a sitting judge makes serious accusations against a prime minister is shocking and shows the state we are in,” Borg said in a televised address, describing the situation as “unprecedented”. (Times of Malta)
Rules-based international order are key to stable political relations – PM
Prime Minister Robert Abela has said that stable political and economic relations must always be based on a “rules-based international order.” Addressing the annual meeting of honorary consuls representing Malta abroad, Dr Abela emphasised their vital role in promoting Malta’s diplomatic, economic and national interests. He noted that although Malta is small in size, it remains global in vision and ambition. The Prime Minister underlined Malta’s continued reputation as a stable, forward-looking and business-friendly jurisdiction, supported by a skilled workforce and strong regulatory framework. He added that the consuls’ work has a direct impact on both Malta’s national objectives and quality of life. Foreign Affairs Minister Ian Borg said the honorary consuls are “at the forefront” of Malta’s global engagement and outreach.
