In a thought-provoking speech, Christopher Vassallo Cesareo, President of The Malta Chamber of Commerce, Enterprise and Industry, urged Malta's leaders to prioritise sustainable growth to prevent infrastructure collapse.
Speaking at the EY Future Realised 2024 event just days before the national Budget, Mr Vassallo Cesareo highlighted the pressing challenges facing the Maltese economy and society, drawing on insights from his tenure.
Mr Vassallo Cesareo, who began his journey as an entrepreneur in a family business, emphasised the need to shift perspectives from microeconomic concerns to the broader implications of economic policies.
He outlined the real challenges that threaten not only business productivity but also the quality of life on the islands, including a shortage of skilled workers, traffic congestion, weakened infrastructure, overpopulation, and the environmental strain caused by over-tourism.
"The focus on headline economic indicators such as GDP growth and unemployment rates often overlooks the societal costs of pursuing growth at any price," he warned.
The President called for a comprehensive approach that balances economic growth with sustainable development, advocating for policies that enhance the well-being of all citizens.
He pointed out that Malta's current economic model, heavily reliant on increasing foreign workers and tourists, is unsustainable. Mr Vassallo Cesareo highlighted the symptoms of this strain: skyrocketing housing prices, overburdened public services, and increasing stress on roads and utilities.
He cautioned that without significant changes, Malta risks a total collapse of its infrastructure and essential services.
Mr Vassallo Cesareo added that Malta needs “a well-structured economic transformation strategy that enables sustainable economic growth while preserving a high quality of life.”
Such a strategy would allow Malta to achieve several key milestones, he says, like:
- Moving away from dependence on corporate taxation towards unique competencies and greater efficiency.
- Ensuring the education system is equipped to provide the skills required to support sustainable growth.
- Integrating economic growth with sustainability to reinforce both objectives.
- Directing investment towards sectors that enhance productivity, rather than those that exacerbate infrastructure strain.
He underscored the need for proper urban planning that safeguards Malta's cultural and natural heritage while promoting efficient infrastructure.
Moreover, he called for a political consensus on an economic transformation strategy that prioritises quality over quantity and emphasises transparent communication between the government and social partners. This elevated social dialogue must transcend electoral timelines to ensure “long-term national progress”, he added.
In his concluding remarks, Mr Vassallo Cesareo invoked the wisdom of Mario Draghi, advocating for maturity and foresight in decision-making. The President urged the nation to embrace the current moment as an opportunity to transform challenges into opportunities for future generations.
As Malta navigates these critical crossroads, the President's call for sustainable growth is a timely reminder that the decisions made today will shape the country's future.
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