Earlier today, Opposition Leader Alex Borg held a business breakfast with business representatives, where he presented an alternative economic plan to the government’s Budget. The plan is based on the main principle of increasing productivity while simultaneously reducing the economy’s dependence on an expanding labour force.
Gross Value Added grew by 82% between 2015 and 2025, and around 70% of this growth came from an increase in the labour force, while only 3% came from productivity improvements. Alex Borg said that Malta’s economic model should shift towards one based on higher productivity rather than continued population growth.
The Opposition Leader presented an economic plan for Malta based on increasing productivity rather than increasing the labour force. He said the aim should be to produce more value with the same resources and labour. This should be achieved through investment in digitalisation, automation and artificial intelligence, while finding ways to increase efficiency.
He added that workers should receive more opportunities for reskilling and training. “We have to build a workforce for tomorrow,” he said.
Alex Borg also called for a reduction in bureaucracy, arguing that businesses and skilled workers should not have to waste time navigating unnecessary administrative procedures when digital systems could make these processes more efficient.
He said Malta should also develop higher-value economic sectors and attract investment into new industries rather than continue relying on an expanding workforce to generate economic growth.
On tourism, Alex Borg called for a shift from quantity to quality, noting that average tourist spending had fallen, despite the increase in visitor numbers.
He also emphasised capital expenditure which he said this was necessary to align with the current population growth.
He also proposed reforming the tourism eco-contribution so that the increase announced in the Budget would apply only during the peak tourist season, avoiding an additional burden on the tourism industry during the quieter months.
You can find the link to the full speech here.
Newsroom
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