Malta’s National Productivity Report 2023: A Spotlight on Wages and Productivity

The National Productivity Board has just released the 2023 National Productivity Report, shedding light on the evolving relationship between wages and productivity within Malta’s key sectors.

The report identifies critical investment needs and highlights the key roles of Research and Development (R&D) and Foreign Direct Investment (FDI) in driving economic growth, especially in important priority sectors. The Board has distilled these insights into ten S.M.A.R.T. recommendations. These include consolidation and specialisation in high-productivity sectors, boosting widespread R&D spending, updating educational programmes in skills that meet expected job market needs, improving productivity and wages in low skilled jobs, and attracting more high-value foreign investments. The recommendations provide a comprehensive framework for policymakers, businesses, and social partners to collaboratively address the productivity and competitiveness challenges in Malta.

The conference, organised by the National Productivity Board and hosted by the Board Chairperson (and Chairperson of the MCESD), Perit David Xuereb, featured prominent speakers, including the Parliamentary Secretary for Social Dialogue, Hon. Andy Ellul.  A distinguished panel included Prof. Joseph Borg, Mr. Andy Gatesy, Ms. Ruth Debrincat, and Mr. Mark Bajada, who also actively contributed to the discussion. The event was attended by distinguished guests, including the Shadow Minister for Social Dialogue, Hon. Ivan Castillo, Members of Parliament from both parties, MCESD Social Partners, Permanent Secretaries, Academia, enterprise CEOs, prominent advisory firms, and other notable figures from public agencies and the private sector.

During the conference, EMCS, the consultants to the Board and compilers of the report, provided a detailed explanation of the report’s background and its extensive, well-formulated recommendations.  This part of the event was led by Prof. Philip von Brockdorff, Dr. Jonathan Spiteri, and Mr. Kurt Muscat.

Parliamentary Secretary Ellul emphasised the clear positive impacts highlighted in the 2023 National Productivity Report: “This report vividly illustrates the significant benefits that Foreign Direct Investment, along with advances in research and innovation and educational enhancements, are delivering across the country. It also points out other sectors, such as finance, that continue to gain strength.”

Hon. Ellul credited these positive outcomes to effective social dialogue. “Looking ahead, I am eager to continue collaborating with the National Productivity Board on implementing further recommendations to robustly grow our economy. Such efforts will directly benefit Maltese and Gozitan families and businesses.”

With its forward-looking strategies, the 2023 National Productivity Report establishes a comprehensive framework for Malta’s ongoing development, promising a stronger economy focused on innovation and inclusivity.

  • The full version of the National Productivity Report can be accessed here.
  • The abstract version of the National Productivity Report can be accessed here.
  • The presentation of the National Productivity Board can be accessed here.