Profit, People, Purpose: Rethinking Malta’s Economy?

In the heart of Valletta, at the bustling St. George’s Square, a group of young entrepreneurs huddle around a table, laptops open, ideas flowing. They’re not just discussing the next big app or startup, but something more fundamental: how Malta’s economy can work for everyone, not just the few.

From ‘Fat Years’ to Post-Pandemic Realities

Malta’s economy has been on a roll, with GDP growth averaging 6.6% between 2014 and 2019, earning us the moniker ‘the little engine that could’. But the pandemic hit hard, and now, as we emerge from the storm, it’s time to ask: is this growth sustainable? And more importantly, is it equitable?

Take a stroll down Triq il-Merkanti in Sliema, where luxury apartments and high-end shops line the street. It’s a stark contrast to the humble houses in places like Żabbar or Żejtun. The ‘fat years’ may have brought prosperity, but they’ve also exacerbated inequality.

Beyond GDP: The Social Coin

That’s where initiatives like the Social Coin come in. Founded by Maltese entrepreneur Jonathan Galea, it’s a digital currency that encourages social good. “We’re trying to shift the focus from just profit to purpose,” says Jonathan. “We want to create an economy that values people and planet as much as it does profit.”

The Social Coin is just one example of a new breed of businesses that are rethinking the traditional economic model. From social enterprises like Greenhouse and WasteServ to tech startups like Refactory and ProMetic, there’s a growing recognition that business can be a force for good.

Government’s Role: Enabling Change

The government has a crucial role to play in this shift. While Malta’s corporate tax regime has been a boon for business, it’s also attracted criticism for being too lenient. The upcoming budget is a chance to recalibrate, to incentivize businesses that prioritize sustainability and social responsibility.

Minister for Finance, Clyde Caruana, acknowledges the need for change. “We’re looking at ways to encourage businesses to adopt more sustainable practices,” he says. “This could be through tax incentives, grants, or other forms of support.”

But it’s not just about carrots. Sticks are needed too. Malta’s lax anti-money laundering regulations have landed us on the EU’s grey list. Stricter enforcement can help clean up our act and protect our reputation.

People Power

Ultimately, it’s up to us, the people, to drive this change. We can vote with our wallets, supporting businesses that align with our values. We can demand better from our politicians. We can innovate, create, and lead.

As the entrepreneurs at St. George’s Square would tell you, the future of Malta’s economy isn’t written in stone. It’s written in code, in business plans, in the conversations we have today. Let’s make sure it’s a future we’re all proud to be part of.

“We’re not just building businesses, we’re building a better Malta.” – Sarah, entrepreneur