Malta Investor Confidence Reaches Decade High in EY Attractiveness Survey
79% of foreign investors now view Malta as attractive, up from 54% last year, but skills shortages and infrastructure strain threaten momentum.
Foreign investor confidence in Malta has hit its highest level in a decade, with 79% of respondents viewing the island as an attractive investment destination, according to the EY Malta Attractiveness Survey reported by FinanceMalta. That figure marks a sharp jump from 54% last year.
The survey, now in its 22nd year and based on responses from 120 foreign-owned businesses, comes as Malta pursues its Vision 2050 strategy. That plan emphasises quality over quantity across all sectors, from financial services to manufacturing.
EY Malta and Cyprus Country Managing Partner Ronald Attard said the data is clear on what investors want. "Stability and operating certainty sit at the top of the list, closely followed by cost considerations and infrastructure," he stated.
Corporate taxation remains a strong draw, with close to eight out of ten investors rating it as attractive. Social and political stability also scored highly.
But the survey also flags significant risks. Skills shortages are now the single most cited threat to Malta's future attractiveness. Attard warned that access to talent, both local and international, will be a defining factor in whether the country can sustain higher-value investment.
Infrastructure capacity is another recurring concern. Rapid population and economic growth have strained transport, utilities and planning systems. Investors are watching closely whether infrastructure development can keep pace with demand.
Cost competitiveness remains an advantage, but Attard noted that it could narrow if demand outpaces capacity. The message from investors is one of realism: confidence is back, but expectations are higher.
Attard stressed the need for collaboration. "Addressing skills shortages, infrastructure gaps and productivity constraints cannot be achieved by government or business in isolation," he said.
Macroeconomic indicators remain encouraging. The Central Bank of Malta forecasts GDP growth of 3.7% over 2026-2028. Inflation stood at 2.3% in February 2026, and unemployment at 3.5%, according to the National Statistics Office.
Malta has also grown its talent pool through expatriates, who now make up around 30% of the population. Over 40,000 of the 170,000 residents are EU citizens. Between 2024 and 2025, expatriates boosted population by 3% and gross value added by 5.3%.
The government has introduced a streamlined Highly Qualified Persons Rules offering a flat 15% tax rate for eligible individuals. Stability of the political, legal and regulatory framework rose 20 points to 49% in the survey, while social climate stability was rated by 70% of respondents.
For Malta's business community, the survey signals both opportunity and a clear set of conditions. Maintaining investor confidence will depend on solving the talent bottleneck and keeping infrastructure ahead of demand.