Chamber Welcomes Budget Focus On Families And AI But Says Traffic And Pension Reform Ignored
The Malta Chamber of Commerce, Enterprise and Industry has broadly welcomed the 2026 Budget for its focus on families, digitalisation, and competitiveness but said the government missed key opportunities to tackle Malta’s traffic crisis, reform public procurement, and strengthen the country’s long-term pension system.
In a statement reacting to Finance Minister Clyde Caruana’s Budget speech, the Chamber said it recognised the government’s emphasis on increasing disposable income for families, supporting pensioners, and improving assistance to vulnerable groups. It also praised a series of measures aimed at helping businesses embrace artificial intelligence, automation, and digitalisation — areas that the Chamber has long championed as essential to Malta’s future productivity.
“The measures encouraging AI adoption, automation, and continued investment in employee training align with the Chamber’s long-standing call for digitalisation as a national priority,” the organisation said.
Among the business incentives highlighted were a 60 per cent capital investment tax credit, an accelerated tax write-off scheme, an expanded MicroInvest framework, and a 175 per cent deduction for research and innovation expenditure. Together, the Chamber said, these create “strong levers for companies to adopt automation, take up AI, and invest in robust cybersecurity frameworks” that modernise operations and strengthen supply chains.
The Chamber also welcomed the government’s commitment to establishing a new logistics free zone near the airport, directly linked to the Freeport, calling it a “strategic step toward positioning Malta as a Mediterranean hub for trade, distribution, and re-export.”
On clean energy, the Chamber acknowledged new policy changes encouraging photovoltaic installations on industrial rooftops but said the Budget “stops short of outlining a comprehensive strategy for cleaner energy and long-term sustainability.” Malta, it said, still needs a unified national plan to meet its EU climate obligations.
However, despite these positives, the Chamber said the Budget “represents a missed opportunity in several critical areas.” Chief among them was Malta’s chronic traffic congestion, which it said continues to have “a daily negative impact on families, productivity, and business operations.” It also criticised the government for failing to move forward with long-promised reforms to public procurement and pension sustainability.
The Chamber expressed disappointment that the government had again postponed the introduction of auto-enrolment for occupational pension schemes, describing it as a “missed opportunity to strengthen long-term pension stability.” It also objected to the decision to tax the Cost-of-Living Adjustment (COLA), saying this “undermines the intended purpose of the measure,” which is to protect workers’ purchasing power.
At a macroeconomic level, the Chamber welcomed the government’s restraint in avoiding new consumption taxes or import duties, which it said would help contain inflation. However, it cautioned that rising public debt must be linked to capital investment with clear returns. “Any increase in debt should fund projects that deliver a return on investment, improve competitiveness, and enhance quality of life,” it said.
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