President's address: Productivity, prosperity and people – Government focuses on higher value growth

The government has unveiled an ambitious programme for the next five years, placing economic growth, higher-value investment and improved quality of life at the centre of its agenda as the 15th Legislature formally begins.

In the address delivered by President Myriam Spiteri Debono at the opening of Parliament, which was prepared by the Office of the Prime Minister, the government presented a vision that seeks to build on Malta’s recent economic success while shifting the country towards a model focused on productivity, innovation and wellbeing.

The programme argues that Malta’s future prosperity will depend not simply on maintaining economic growth but on improving the quality of that growth. Against a backdrop of global uncertainty, rising geopolitical tensions and international economic pressures, the Government pledged to continue protecting families and businesses while maintaining fiscal responsibility.

A central theme running throughout the President’s address was the importance of investment. Malta has reached a stage where it can prioritise quality over quantity, targeting investment that creates greater value with fewer resources and less environmental impact.

Particular emphasis will be placed on attracting foreign direct investment aligned with the Malta Vision 2050 strategy. Sectors identified as priorities include financial services, fintech, semiconductors, advanced manufacturing, digital industries, blockchain, aviation, maritime services, green industries, high-value tourism, gaming, esports and video game development. The government also intends to attract new digital companies, space-sector start-ups and further investment in medical technology.

At the same time, support for local businesses remains a major pillar of the programme, the President said in her address. Tax reductions, incentives for digitalisation, automation and artificial intelligence, as well as assistance for companies seeking to modernise their operations, are intended to strengthen competitiveness and productivity across the economy.

The government views the labour market as the foundation upon which this economic strategy rests. In one of the most significant declarations of the address, it stated that labour market reforms are expected to become the defining legacy of this legislature.

The programme builds on previous measures aimed at rewarding work and increasing workforce participation, Spiteri Debono noted. Further tax reductions, stronger in-work benefits, lower taxation on part-time employment, increases in the minimum wage and tax exemptions for young workers during their first years in employment are among the measures planned.

However, the government is also placing considerable focus on work-life balance. Expanded maternity and paternity leave, additional parental leave and the introduction of a right to request flexible working arrangements, including remote working and flexible schedules, form a key part of the agenda. Economic success should not come at the expense of family life and personal wellbeing, Spiteri Debono said.

Education is presented as the third major pillar of the government’s strategy. The programme links Malta’s future economic success directly to the quality of its education system and workforce skills. While significant investment in educational infrastructure will continue, the government intends to undertake a major revision of the national curriculum to better prepare students for future challenges.

Particular attention will be given to increasing graduation rates, reducing early school leaving and encouraging greater participation in science, technology, engineering and mathematics disciplines. The objective is not only to produce skilled workers but also critical thinkers capable of contributing to Malta’s future development.

The programme also places strong emphasis on housing and home ownership. Recognising the challenges facing first-time buyers, the government pledged additional support to help young people enter the property market. Existing schemes will be strengthened, while new forms of assistance will be introduced for individuals, couples and families seeking to purchase their first home.

Additional support is planned for families requiring larger homes, separated individuals seeking new accommodation and property owners who restore buildings for social housing purposes, the President said. New protections for property buyers and homeowners are also promised through regulatory reforms and greater transparency.

The elderly feature prominently in the programme, with the government reaffirming its commitment to active ageing and pension improvements. Pension increases will continue annually, while long-standing anomalies affecting widows and older pensioners are set to be addressed. Further investment in elderly care facilities and community-based services is also planned.

Healthcare remains another major priority. Significant investment is earmarked for health infrastructure, including the regeneration of St Luke’s Hospital, improvements at Gozo General Hospital and the expansion of Mater Dei Hospital’s Accident and Emergency Department. A new acute psychiatry facility and an intermediate care hospital also form part of the plans.

Mental health will receive unprecedented prominence in the programme. The government intends to introduce free psychological check-ups through a pilot scheme, strengthen community mental health services and improve early intervention, particularly among young people. Greater accessibility to mental health treatment and support is viewed as an essential component of national wellbeing.

Environmental protection and quality of life are also recurring themes in the President’s address. The government pledged continued investment in open spaces, parks and the regeneration of natural areas, while highlighting ongoing projects across the country. The commitment to secure the future of Manoel Island and White Rocks as public assets is presented as part of a broader effort to improve access to recreational spaces.

The transition towards greener energy sources will accelerate, with Malta aiming to generate a quarter of its energy from renewable sources by 2030. Measures supporting renewable energy adoption, energy sharing and stronger legal protections for solar investments are expected to form part of this effort, the President said.

Transport remains one of the country’s biggest challenges and features prominently in the programme. Infrastructure upgrades will continue alongside further investment in public transport, maritime transport and long-term mass transport planning. The government argues that these initiatives are necessary to reduce congestion and improve daily life.

Gozo is also given special attention in the government’s plans, which include increased connectivity through expanded ferry services and improvements to the island’s airfield, continued road upgrades, educational investments and support for innovation through the Gozo Innovation Hub. The government’s vision is for Gozo to become a stronger economic centre in its own right rather than relying solely on Malta for growth.

 

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