The newly launched Vision 2050 sets out Malta’s long-term roadmap for economic development but according to newly elected Malta Employers’ President IVAN REFALO, the real test lies in turning that vision into measurable results. “What is crucial is that to safeguard people’s well-being, Malta’s future economic prosperity must be aligned with its physical and demographic characteristics.”
This principle, he explains, has long shaped Malta Employers’ advocacy. For years, the association has called for a rethink of Malta’s socio-economic model — and Refalo believes Vision 2050 finally marks a response to that call.
Appointed earlier this month, Refalo succeeds outgoing President Joanne Bondin. He has pledged to maintain the Association’s inclusive leadership approach while building on its strong institutional foundations.
“Our mission is twofold,” he says. “To act as a strategic partner for employers and policymakers, and to lead the national dialogue on employment practices and sustainable competitiveness. Our aim is to grow Malta Employers’ influence and impact within Malta’s socio-economic framework.”
Mr Refalo takes office at a time when Malta is grappling with deep structural challenges — foremost among them, maintaining competitiveness in the face of physical limitations and global volatility. And while Vision 2050 sets out clear ambitions, execution will be everything.
“The Malta Employers Association was among the primary proponents of this new economic vision,” Refalo notes, highlighting the association’s active participation in the consultation process. “The challenge now lies in ensuring that the country executes the necessary transformation and remains on course to achieve its ambitions.”
He also welcomes bipartisan support for Vision 2050, describing the Opposition’s endorsement as a vital signal of long-term stability. “It sends the message that continuity will be safeguarded for investors and stakeholders, even in the event of a change in government.”
Still, Refalo is clear-eyed about the immediate pressures facing employers — particularly acute labour and skills shortages. “The primary challenge facing employers today is a significant shortage of labour and skills across all sectors.”
This shortage is not just driving up wages — it is threatening Malta’s overall competitiveness, particularly in export-oriented industries.
Cultural shifts among younger generations are also compounding the issue. “Our members frequently report a noticeable decline in work ethic and a lack of transverse skills, particularly among Gen Zs,” Refalo observes. “Short-term job stints have become the norm, and loyalty to employers has significantly diminished compared to Gen X and Millennials.”
Mental health is another growing concern in the workplace — and labour shortages are part of the problem. “When employees resign, it often takes time to find suitable replacements, leaving others to shoulder more responsibilities. This added burden contributes to stress — especially when crucial soft skills like communication and problem-solving are weak.”
With small enterprises making up over 90% of Malta’s businesses, Malta Employers has significantly expanded its SME Helpdesk. It supports businesses with compliance, financing, and serves as a bridge to regulators. It also produces our weekly TV programme and coordinates the annual SME Week — two key platforms that Refalo says help raise visibility and provide guidance for small enterprises.
The Association is equally committed to advancing the ESG (Environmental, Social, and Governance) agenda. “If properly practiced, ESG will set the upstanding business apart from the less serious one,” he says. Refalo notes that many forward-looking members are already integrating ESG principles — often under pressure from international clients and partners.
But for ESG to be effective, governance must lead the way. “No company can succeed in adopting ESG unless the intentions cascade down from the top.”
Looking ahead, Refalo urges a decisive shift toward quality and value-added economic activity. He warns that Malta remains stuck in a volume-driven model that relies on narrow margins — a strategy that is becoming unsustainable.
“There are signs that the country is starting to experience a productivity deficit whereby the volumes and value of our products and services do not justify higher prices to cover rising costs.”
The solution, he argues, lies in moving up the value chain — with focused investment in skills, innovation, and long-term planning. “This is the advice we give to members who are restructuring and planning their growth path.”
As the Malta Employers Association celebrates its 60th anniversary, Refalo remains optimistic but realistic. The groundwork has been laid — but Malta’s future success depends on its ability to execute, align, and stay consistent.
“We are committed to fostering constructive, transparent, and effective engagement among all social partners — for the benefit of the economy, society, and the country as a whole.”
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