Malta remains attractive to foreign companies but investors are spooked by labour market challenges and infrastructure issues, according to a new study by EY Malta.
The EY Malta 2024 Attractiveness Survey provides an overview of the island’s investment climate and challenges based on feedback from foreign direct investment (FDI) companies.
According to the survey, 54% of investors find Malta attractive, down 5% from the previous year but still above the 2021 low. Concerns include the rising cost of living and labour market strain.
Corporate taxation remains Malta’s strongest point, valued by 75% of investors. Telecommunications infrastructure is another significant draw, appreciated by 63%.
However, labour costs and skills are concerns, with only 39% and 32% of respondents finding them attractive.
Overall, the international tax landscape, a lack of skilled labour, and reputational risks are seen as key threats to Malta’s FDI appeal.
70% of FDI companies plan to remain in Malta for the next 10 years. Meanwhile, 38% intend to expand operations, though this is lower than the post-pandemic peak in 2022.
Infrastructure, education, and skills development are viewed as priorities for Malta’s future competitiveness. 69% of investors report difficulty finding specialised skills locally.
Investors are increasingly focused on sustainability and green infrastructure, with 62% seeing eco-friendly strategies as critical to future investments.
Technology, including AI and cloud automation, is a major growth area, with 45% of investors prioritising these technologies.
In addition, 70% believe Malta’s infrastructure is inadequate to support population growth.
