European Construction Sector Observatory: Country Profile Malta

European Construction
Sector Observatory
Country profile Malta
November 2021
1
Country Fact Sheet Malta
In a nutshell
In 2020, GDP (gross domestic product) in Malta In 2020, 18,521 persons were employed in the
stood at EUR 11.6 billion, representing an Maltese broad construction sector, representing a
increase of 51.2% compared to its 2010 level 65.6% increase compared to the 2010 level (11,702
(EUR 7.7 billion). However, the country’s GDP persons).
declined by 7.0% in 2020, due to the impact of
the global COVID 19 pandemic. Number of persons employed in the Maltese
broad construction sector
The number of enterprises in the Maltese broad
construction sector increased to 8,553 in 20201, +65.6%
representing an increase of 27.5% since 2010. In
parallel, the volume index of production2 in the 2010 2020
broad construction sector3 increased by 98.8% over (11,702) (18,521)
the 2015-2020 period.
With regards to the housing market, the Housing
Volume index of Authority Renting to Help Out (Nikru biex nassistu)
production in the broad scheme, which is aimed at encouraging private
construction sector 98.8% owners of vacant and finished residential property
between 2015 and 2020 to offer a lease agreement, has granted homes to
330 Maltese families so far. In its budget, the
At the same time, total turnover in the broad Maltese government also announced the extension
construction sector amounted to EUR 2.1 billion, of the newly introduced Affordable Housing Benefit
representing a growth of 124.1% over the period Scheme, driven by its success. The scheme aims to
2010-2018. It further increased to EUR 2.4 billion in support people with a low income belonging to the
20204, representing an increase of 147.2% since category “at-risk-of-poverty rate”. The indicator
2010. stood at 16.9 in 2020 and is expected to decline by
Total turnover in the 0.2 pp Year-on-Year (Y-o-Y).
broad construction
sector between 2010 147.2% With regards to the civil engineering market, the
Maltese government is actively involved in
and 2020 upgrading the country’s infrastructure. It is aiming
Likewise, the gross operating rate of the broad to include investment in roads as part of potential
construction sector5, indicating the sector’s investment under the Cohesion Policy for the
profitability, stood at 31.8% in 2018 (exceeding the 2020-2021 programming period. To address traffic
EU-27 average of 16.7%). This represents an congestion, the government has invested EUR 700.0
increase of 7.6 percentage points (pp) since 20116. million in a seven-year road transport
This is also higher than the 20187 EU-27 average infrastructure project to upgrade and refurbish the
(16.7%). road network, starting in 2019.
European Construction Sector Observatory 2

In its updated Stability Programme 2021-2024 make transport more sustainable9. Given its
report, Malta announced its plans to continue to significant environmental impact as well as its ability
invest in the country’s infrastructure to meet both, to revive the overall economic recovery process, the
current and future economic, social and Maltese construction sector could benefit from the
environmental challenges. Examples of these unprecedented investments of the country’s RRP.
initiatives include the continuation of arterial road
Presently, there are two main issues hampering the
construction projects, roads in residential and rural
development of the Maltese construction sector.
areas, the regeneration of ports and improvement
Firstly, the construction sector is hindered by the
of facilities for the maritime sector, industrial
shortage of skilled workers. This is partly explained
infrastructure, the modernisation of health
by the high proportion of low-skilled adults and
facilities, investment in education institutions and
ageing population. To cope with this issue, the
social housing.
Maltese construction sector tends to rely on foreign
Under the Recovery and Resilience Facility (RRF) workers to fill labour shortages.
Malta has been allotted EUR 316.4 million in
Secondly, the persisting issue of late payments has
grants8.
had an unfavourable impact on the construction
Malta will invest 54.0% of the plan’s total allocation sector. This issue has been further exacerbated by
in reforms and investments to support climate the global COVID-19 pandemic. With respect to the
objectives. The country’s key measures to secure its construction sector, around 45.0% of enterprises
green transition include energy-efficiency reported that customers are opting for a longer
renovations and the greening of private and public payment cycle, which negatively impacted their
buildings, with an allocation of EUR 60.0 million for cash flows during the COVID-19 crisis.
deep retrofitting and renewable energy
Overall, the Maltese construction sector has a
installations. Moreover, around EUR 16.0 million
positive outlook in the medium and long term.
has been allocated for shifting transport from road
Public sector infrastructure and transport
to sea and reducing emissions from the transport
system upgrades, supported by EU funding, are
sector. In this regard, the country has planned to
expected to dominate the broad sector growth.
provide access to free public transport to selected
groups of the population to address congestion and

Table of Contents
In a nutshell ............................................................................................................................................. 2
1 Key figures ............................................................................................................................................ 5
Construction market.........................................................................................................................................5
Productivity ......................................................................................................................................................6
Turnover and profitability ................................................................................................................................6
Employment .....................................................................................................................................................7
2 Macroeconomic indicators .................................................................................................................... 8
Economic development ....................................................................................................................................9
Demography and employment.........................................................................................................................9
Public finance ...................................................................................................................................................9
Entrepreneurship and access to finance ....................................................................................................... 10
3 Key economic drivers of the construction sector .................................................................................. 12
Business confidence ...................................................................................................................................... 12
Domestic sales ............................................................................................................................................... 12
Export of construction-related products and services .................................................................................. 13
Access to finance in the construction sector................................................................................................. 13
Access to housing .......................................................................................................................................... 14
Infrastructure................................................................................................................................................. 16
4 Key issues and barriers in the construction sector ................................................................................ 16
Company failure ............................................................................................................................................ 17
Trade credit ................................................................................................................................................... 17
Late payment ................................................................................................................................................. 18
Time and cost of obtaining building permits and licenses ............................................................................ 18
Skills shortage ................................................................................................................................................ 19
Sector and sub-sector specific issues ............................................................................................................ 19
5 Innovation in the construction sector................................................................................................... 21
Innovation performance................................................................................................................................ 21
Eco-innovation and digitalisation .................................................................................................................. 22
6 National and regional regulatory framework........................................................................................ 23
Policy schemes............................................................................................................................................... 23
Building regulations ....................................................................................................................................... 24
Insurance and liability related regulations .................................................................................................... 25
7 Current status and national strategies to meet Construction 2020 objectives ........................................ 26
TO 1 – Investment conditions and volumes .................................................................................................. 26
TO 2 – Skills .................................................................................................................................................... 27
TO 3 – Resource efficiency / Sustainable construction ................................................................................. 29
TO 4 – Single Market ..................................................................................................................................... 30
TO 5 – International competitiveness ........................................................................................................... 31
8 Outlook............................................................................................................................................... 33

1
Key figures
Construction market In parallel, the volume index of production12 in the
broad construction sector13 rose by 98.8% between
The number of enterprises in the broad 2015 and 2020. While it stagnated between 2010
construction sector totalled 8,553 in 202010, and 2013 (Figure 2), it has significantly increased
representing an increase of 27.5% since 2010. since 2015.
This was mostly driven by a 51.7% increase in the Figure 2: Volume index of production in the Maltese
number of enterprises in the real estate activities construction sector between 2010 and 2020
sub-sector over the 2010-2020 period. It was (2015=100)
followed by the sub-sectors “narrow construction”
and “architectural and engineering activities”,
increasing by 24.6% and 20.3% respectively over the
same period. Conversely, the manufacturing sub-
sector witnessed a decline of 84.1%.
In 2020, the narrow construction sub-sector
accounted for 58.8% (i.e. 5,027) of the total number
of enterprises in the broad construction sector,
Source: Eurostat, 2021.
followed by the real estate activities sub-sector,
which accounted for 31.4% (i.e. 2,684). Similarly, The total value added at factor cost14 of the
the architectural and engineering activities broad construction sector amounted to EUR 1.0
sub-sector accounted for 9.4% (i.e. 805) and the billion in 202015, representing an increase of
manufacturing sub-sector accounted for 0.4% 196.7% since 2010.
(i.e. 38) of the total enterprises in 2020. This was mainly driven by the real estate activities
Number of enterprises in sub-sector, where value added increased to
EUR 406.7 million in 2020, representing 240.0%
the broad construction
sector between 2010 and 27.5% growth since 201116. It was followed by the
2020 architectural and engineering activities sub-sector,
where value added increased to EUR 96.9 million in
Figure 1: Number of enterprises in the Maltese 2020, representing 99.9% growth since 2010. The
broad construction sector between 2010 and value added of narrow construction sub-sector
202011 increased to EUR 471.5 million in 2020,
representing 77.7% growth since 2010. Lastly, the
value added of the manufacturing sub-sector
increased to EUR 30.7 million in 2020, representing
22.2% growth from 2010 levels.
Overall, the narrow construction sub-sector
accounted for 46.9% of the total value added at
factor cost in the broad construction sector in 2020.
It was followed by the real estate activities (40.4%),
architectural and engineering activities (9.6%) and
manufacturing (3.0%) sub-sectors.

The share of gross value added of the broad According to the European Investment Bank
construction sector in the GDP was 10.1% in 201817, Investment Survey (EIBIS) 2020 for Malta, the
below the EU-27 average (16.5%). In 2020, the share of firms in the construction sector
share of gross value added in the narrow operating at or above full capacity stood at
construction and real estate activities sub-sectors 78.0%, being the highest in comparison with
stood at 4.0% and 5.8% respectively (Figure 3). other sectors – manufacturing (59.0%) and
services (65.0%)26.
Figure 3: Gross value added as a share of GDP in the
Maltese broad construction sector in 2020 (%) Turnover and profitability
Total turnover of the broad construction sector in
2018 amounted to EUR 2.1 billion, representing a
growth of 124.1% over the period 2010-2018. In
202027 it further increased to EUR 2.4 billion,
representing an increment of 147.2% since 2010
and 10.3% since 2018. Overall growth for the
2010-2020 period was driven by increases in the
narrow construction (+89.0%), the architectural and
engineering activities (+78.9%) and the
Productivity manufacturing (+15.0%) sub-sectors. The real
estate activities sub-sector also increased by
The apparent labour productivity18 in the Maltese 150.8% over the 2011-202028 period.
broad construction sector has increased from
EUR 31,515 in 201119 to EUR 51,949 in 201820 Overall, the narrow construction sub-sector
(+64.8%), being slightly below the EU-27 average of accounted for 59.8% (i.e. EUR 1.4 billion) of total
EUR 51,960. turnover in the broad construction sector in 2020. It
was followed by the real estate activities (26.9%, i.e.
Labour productivity in the manufacturing EUR 635.7 million), the architectural and
sub-sector grew by 161.1% over the 2010-2020 engineering activities (8.8%, i.e. EUR 207.2 million)
period, reaching EUR 47,526 in 2020. In the narrow and the manufacturing (4.5%, i.e. EUR 106.6
construction sub-sector it grew by 43.4%, over the million) sub-sectors.
2010-2018 period21, reaching EUR 36,858 in 201822.
In the real estate activities sub-sector, it reached Turnover of the broad
EUR 127,827 in 2020, representing 34.1% growth
since 201123. Lastly, in the architectural and
construction sector
between 2010 and 2020
147.2%
engineering activities sub-sector, it stood at The gross operating surplus of the broad
EUR 37,593 in 2020, representing a rise of 6.5% construction sector amounted to EUR 679.6
since 201724. million29 in 201830, a 240.1% increase compared to
Figure 4: Labour productivity in the broad the 2010 level. This was primarily driven by a 92.7%
construction sector in Malta between 2010 and increase in the architectural and engineering
2020 (EUR k)25 activities sub-sector, followed by the narrow
construction (+76.1%) and the manufacturing
(+62.3%) sub-sectors, over the 2010-2018 period.
The real estate activities sub-sector also increased
by 208.2% over the 2011-201831 period.
Overall, in 2018, the real estate activities sub-sector
accounted for 47.8% (EUR 325.1 million) of the total
gross operating surplus in the broad construction
sector, being the highest among sub-sectors. It was
followed by the narrow construction sub-sector
which accounted for 42.1% (EUR 286.1 million) of
the total in 2018. The architectural and engineering

activities and the manufacturing sub-sectors Over the 2010-2020 period, the number persons
accounted for 7.3% (EUR 49.9 million) and 2.7% employed in the manufacturing sub-sector
(EUR 18.5 million) of the total, respectively, in 2018. decreased by 53.2%, while in the narrow
construction sub-sector, it increased by 25.7%. The
Gross operating
number persons employed in the real estate
surplus in the broad
activities sub-sector reported an increase of 153.5%
construction sector
between
240.1% over the 2011-202036 period. Lastly, in the
architectural and engineering activities sub-sector,
2010 and 2018
the number of persons employed increased by
Likewise, the gross operating rate of the broad 39.0%, over the 2015-202037 period.
construction sector32, which gives an indication of
Figure 6: Percentage of people employed per
the sector’s profitability, stood at 31.8% in 2018.
construction sub-sectors in Malta in 2020
This represents an increase of 7.6 percentage points
(pp) since 201133. This is also higher than the 201834
EU-27 average (16.7%). The real estate activities
sub-sector enjoyed the largest profit margin on
sales (58.0%) followed by the architectural and
engineering activities (24.3%), the narrow
construction (22.6%) and the manufacturing
(16.8%) sub-sectors in 2018.
In parallel, construction costs have been
continuously increasing since 2010. Between 2015 Source: Eurostat, 2021.
and 2020, the construction cost index rose by 7.6% Number of people
(Figure 5) mainly due to an increase of 7.9% and
7.0% in the index of input prices for materials and
employed in the broad
construction sector 65.6%
labour costs, respectively, over the same period. between 2010 and 2020
Figure 5: Construction cost index between 2010
As for employment by specific occupation, in the
and 2020 (2015=100)
manufacturing sub-sector, the number of people
employed as professionals and managers increased
by 130.8% and 57.9% respectively, over the
2010-2020 period. Conversely, the number of
people employed for elementary occupations and
plant and machine operators and assemblers
witnessed declines of 25.9% and 16.4%
respectively, over the same period.
Source: Eurostat, 2021. Similarly, in the narrow construction sub-sector,

demand for technicians and associate professionals
Employment and craft and related trades workers increased by
200.0% and 45.2% respectively, over the 2010-2020
In 202035, 19,377 persons were employed in the
period. Whereas the demand for elementary
Maltese broad construction sector, representing a
occupation workers and clerical support workers
65.6% increase compared to 2010. The narrow
decreased by 54.5% and 14.3% respectively, over
construction sub-sector employed 66.9% of the
the same period. Lastly, in the real estate activities
total workforce (i.e. 12,972 persons), followed by
sub-sector, the number of technicians and associate
the real estate activities sub-sector employing
professionals increased by 425.0% over the
16.4% of the total workforce (i.e. 3,181 persons) in
2010-2020 period.
2020. The architectural and engineering activities
and manufacturing sub-sectors accounted for The number of self-employed workers in the
13.3% (i.e., 2,579 persons) and 3.3% (645 persons) narrow construction sub-sector increased by 40.0%
of the total workforce in 2020, respectively. over the 2010-2020 period. This represents 14.1%

of the self-employed in the general economy in manufacturing sub-sectors increased by 211.1%,

2020, above the EU-27 average of 11.7%. Over the 32.7% and 16.9%, respectively, over the 2010-2020
same period, in the real estate activities sub-sector, period. With regards to number of part-time
the number of self-employed workers increased by employees, the manufacturing sub-sector
325.0%, which represents 4.3% of the witnessed an increment of 40.0%, whereas the
self-employed in the overall economy in 2020, narrow construction sub-sector experienced a
above the EU-27 average of 1.6%. decline of 12.5%, over the same period. In the real
estate activities sub-sector, number of part-time
The number of full-time employees in the real
employees declined by 20.0%, over the 2015-201838
estate activities, the narrow construction, and the
period.

2
Macroeconomic indicators
Economic development EU-27 average of 64.3%. It is expected to reduce to
65.7% and 63.0% of the total population by 2030
In 2020, Malta’s GDP stood at 11.6 billion, and 2050 respectively. In parallel, the proportion of
exhibiting 51.2% growth since 2010. However, people over 65 years old stood at 18.8% of the total
this represented a decrease of 7.0% compared population in 2020. This is expected to increase to
to 2019. 21.0% and 25.4% of the total population by 2030
The contraction in GDP in 2020 was mainly due to a and 2050 respectively. This clearly indicates a
decline in net exports, reflecting a sharp reduction potential increase in demand for equipment,
in foreign demand, restrictions on travel-related facilities and infrastructure for elderly care
activities, and disruptions to the global supply (hospitals, care homes, adapted public transport
chain. Domestic demand is also estimated to have and easy access to infrastructure), which could in
contributed negatively, as the containment turn provide further opportunities for the Maltese
measures against the COVID-19 curtailed activities construction sector.
during the year39. Unemployment rate in 2020
In 2020, the potential GDP of Malta reached
EUR 12.3 billion, resulting in a negative output gap
of 5.6%. This highlights the impact of the global
COVID-19 pandemic on the Maltese economy40. The 3.6% 6.3%
annual inflation rate stood at 0.8% in 2020 (down
from 1.5% in 2019) , but remained above the 2020
EU-27 average of 0.7%.
Malta EU-27
Demography and employment Youth unemployment rate in 2020
With respect to unemployment in Malta, the
average unemployment rate increased to 3.6% in
2020, in comparison with 2019 (2.9%). However,
this is lower than the 2010 level (5.7%) and the 2020 10.7% 16.8%
EU-27 average (6.3%). Youth unemployment also
raised from 9.3% in 2019 to 10.7% in 2020, which is
though below the 2010 level (13.2%) and the 2020
Malta EU-27
EU-27 average (16.8%). Moreover, the net
migration rate increased sharply from 74 in 2010 to
20,343 in 2019, to then decrease to 1,206 in 2020.
Public finance
In 2020, general government expenditure in Malta
In 2020, Malta’s total population stood at 506,951
accounted for 46.6% of GDP, which represents a
people. By 2030, the total population is expected to
significant increase from the previous year (36.8%)
reach 588,691, representing a 16.1% increase
and from the 2010 level (39.8%). It is still below the
compared to 2020. Projections show that it is
EU-27 average (53.4%) in 2020. Malta’s general
expected to reach 668,373 by 2050, representing a
government deficit in 2020 stood at -10.1% of GDP
31.8% increase compared to 2020.
compared to the 0.4% surplus recorded the
The working age population accounted for 67.5% of previous year and higher than the 2010 level
the total population in 2020, slightly higher than the (-2.3%). It was also higher than the 2020 EU-27
average (-6.9%). For the same year, the general In terms of access to finance,
government gross debt in Malta was 54.3% of the Malta ranked 144th out of 190
GDP, higher than the previous year (42.0%), but countries for the ease of getting
below the 2010 level (65.3%). It is also lower than credit48. This is a decline from
the EU-27 average in 2020 (90.7%). previous year’s ranking
(134th)49,50.
Entrepreneurship and access to
Despite the very positive attitude towards
finance entrepreneurial risk in Malta, access to finance
According to the World Bank Doing remains a fundamental problem within its business
Business 2020 report, Malta ranked environment51. According to the EIB Investment
86th out of 190 countries in ease of Survey (EIBIS) 2020 report, 6.0% of firms in Malta
starting a business in 2019. This is an are considered to be financially constrained, higher
improvement in comparison with than the previous year (5.3%), and SMEs formed the
previous year’s ranking (103rd)41,42. highest share of financially constrained firms
(10.0%). Moreover, the highest levels of
According to the report, starting a business in Malta dissatisfaction recorded among firms in Malta
requires five procedures, takes 20.5 days and needs related to collateral requirements (12.0%) and cost
about 6.7% of per capita income43. of finance (11.0%)52.
Malta has actively developed policies aimed at In 2020, outstanding loans to non-financial
encouraging entrepreneurship. In 2019, the World corporations in Malta stood at EUR 4,004 billion,
Economic Forum (WEF) reported of Malta having a representing a 1.2% decline since 2010, but a
positive attitude towards entrepreneurial risk, 9.0% annual increment.
ranking 27th out of 141 countries. The country has
developed a number of measures supporting According to Survey on the Access to Finance of
entrepreneurship through education, incubators, Enterprises (SAFE) 2020 report, rising
competitions, funding schemes and other financial macroeconomic uncertainty influenced the
instruments44. availability of external finance. Developments in the
general economic outlook have in particular
In 2013, the University of Malta set up the Centre negatively affected access to finance. The financing
for Entrepreneurship & Business Incubation. This need of SMEs reported in the report reflect the
was followed by the establishment of the TAKEOFF impact of the COVID-19 pandemic. Furthermore,
Business Incubator, as well as the launch of the 5.4% SMEs reported to face the problem of access
TAKEOFF Seed Fund financed by the central to finance in the past six months (between April and
government. The Malta College of Arts, Science and September 2020), above the EU-27 average of 4.8%.
Technology also established its own
entrepreneurship centre to provide incubation The Maltese government has taken several steps to
services to students interested in starting a improve access to finance for all entrepreneurs and
business45. small businesses, including measures to boost the
provision of equity financing and venture capital.
In the Recovery and Resilience Plan, Malta plans Malta Enterprise, the country's economic
to set up an incubation centre that encourages development agency, offers several support
entrepreneurship, and an R&D centre that measures including:
stimulates innovative ideas46.
• The Micro Invest scheme encourages
This is part of the plan’s ‘Enhancing Quality undertakings (including Start-ups, family
Education and Fostering Socio-Economic businesses and self-employed) to invest in
Sustainability’ component47. their businesses to innovate, expand and
develop their operations.

• The Loan Guarantees for Initial Investment COVID-19 Guarantee Scheme. It aimed at providing
measure supports SMEs with a guarantee guarantees to commercial banks to enhance access
to be used against a bank loan required for to bank financing for the working capital
the setting up of a new establishment, or requirements of businesses facing a liquidity
for extending the capacity of an existing shortage as a result of the COVID-19 outbreak.
establishment. The measure is applicable Through this measure the Malta Development Bank
until 31st December 2021 earmarked EUR 350.0 million to enable commercial
banks to allocate an estimated EUR 778.0 million in
• Business Start 2021 offers seed and growth
new working capital loans to support businesses in
funding for small start-ups. The businesses
Malta. These loans could be used to finance
may receive initial grants of up to EUR
expenses such as salaries, rent, energy and water
10,000 to develop their business proposal.
bills, fuel costs, unpaid invoices, purchase of
This incentive is from 1 January 2021 until
material and stock and maintenance costs55.
the 31 December 202353.
The Malta Enterprise Corporation also introduced
In total, 7,000 self-employed and small
Start-up Finance 2020 in January 2020, which
businesses are eligible to apply to Micro Invest.
aimed to support small start-ups that demonstrate
Since January 2019, EUR 84.0 million has been
a viable business concept and are interested in
provided to businesses through this scheme54.
expanding the scale of their operations. The scheme
To cushion the economic impact of the pandemic, provided a repayable cash advance for innovation.
fiscal policy measures were put in place by the The value was capped at EUR 400,000, which could
Maltese government and other authorities. In April be increased to EUR 800,000 if the start-up qualified
2020, the Malta Development Bank introduced the as an innovative enterprise56.

3
Key economic drivers of the
construction sector
Business confidence In parallel, Malta’s investment ratio increased to
23.3% in 2020, slightly higher than the 2010 level
Over the 2010-2020 period, Malta’s (20.2%) and also higher than 2020 EU-27 average
consumer confidence and construction (21.8%).
confidence indicators improved, whereas the
Investment per worker in the broad
industry confidence indicator deteriorated.
construction sector reached EUR 74,098 in 2018,
However, all three indicators declined in
representing a 94.3% growth since 2010.
2020, in comparison with the previous year.
This gives a clear indication of the impact of Amongst the sub-sectors, investment per person
COVID-19 on confidence indicators in Malta. employed increased to EUR 8,000 in 201858 in
the narrow construction sub-sector,
Malta’s consumer confidence indicator stood
representing a 50.9% increment since 2010. In
at -5.6 in 2020, higher than the 2010 level (-25.2),
the real estate activities sub-sector, it reached
but below the 2019 level (4.5). This is however
EUR 17,000 in 201859, a 40.8% decline from 2010.
above the 2020 EU-27 average (-14.6). Likewise,
Lastly60, in the architectural and engineering
the industry confidence indicator reached -25.0
activities sub-sector, it reached EUR 2,600 in
in 2020, lower than both the 2010 level (1.2) and
201861.
the 2019 level (-6.7). This also stood below the
2020 EU-27 average (-14.4). The construction Domestic sales
confidence indicator, however, increased to -5.7
in 2020, higher than the 2010 level (-30.2) and The ranking of the most domestically sold
the 2020 EU-27 average (-9.3). However, it was construction products in Malta has changed
below the 2019 level (26.1). since 2010.
Construction confidence indicator in 2020 Namely, “Marble, travertine, alabaster, etc.”

(group 237011) ranking second in 2010, shifted
down to fourth rank in 2020, and “Mortars”
(group 236410) ranking fourth in 2010, shifted
-5.7 -9.3 down to fifth rank in 2020. However, “Portland
cement, aluminous cement, etc.” (group 235112)
ranked first both in 2010 and 2020. The five most
Malta EU-27 domestically sold construction products are
presented in Table 1, including a comparison
By the first quarter 2021, thanks to the
with the most sold in the EU-27. These
vaccination campaign and the easing of the
represented 71.7% of total domestic
containment measures, the economic construction product sales in 2020.
activity rebounded.. As such, consumer and
business confidence improved57.

Table 1: Five most domestically sold construction Malta EU-27

products in Malta and in the EU in 2020 Share in
Valu
Malta EU-27 constructio
e
Product n product Product
Share in (EUR
Valu export
constructio 000s)
e sales (%)
Product n product Product for paintings structures and
(EUR
domestic (group 162914) parts (group
m)
sales (%) 251123)
Portland Other Articles of Fibreboard of
cement, structures asbestos- wood, etc.
1 aluminous 27.6 32.7 (group 3 38.1 4.2
cement (group (group
cement, etc. 251123) 236512) 162115)
(group 235112) Doors,
Ready-mixed Ceramic tiles windows and
Ceramic tiles concrete 4 and flags 25.9 2.9 their frames
2 and flags (group 21.7 25.7 (group (group 233110) (group
233110) 236310) 251210)
Doors, Builders’
windows and Pallets, box joinery and
Other 5 pallets (group 21.8 carpentry
their frames 2.4
3 structures 5.0 5.8 162411) (group
(group 251123) (group
251210) 162319)
Source: PRODCOM, 2021.
Marble, Prefabricated
4
travertine,
3.4 4.1
buildings of In terms of the cross-border provision of
alabaster, etc. metal (group
(group 237011) 251110)
construction services62, Malta exported EUR 3.6
Prefabricated million of construction services worldwide in
structural 2020 marking a 157.1% increase compared to the
Mortars (group components
5
236410)
2.8 3.4
for building,
2015 amount63 (EUR 1.4 million). In parallel,
etc. (group Malta imported a total of EUR 5.0 million in
236112) construction services from around the world in
Source: PRODCOM, 2021.
2020. This represented a 16.7% decline from the
Export of construction-related 201164 level. Overall, Malta reported a trade
deficit of EUR 1.4 million in 2020.
products and services
The ranking of most exported construction
Access to finance in the
products in Malta has changed since 2010. construction sector
Specifically, “Pallets, box pallets, etc.” (group
According to the SAFE Report 2020, access to
162411) ranking second in 2010, ranked fifth in
finance is one of the greatest concerns for
2020. As for other product groups, they did not
Maltese SMEs, increasing significantly in 2019
hold any rankings in 2010. The top five most
compared to previous year. In 2020, it decreased
exported construction products from Malta are
compared to 2019, but still remains higher than
summarised in Table 2. Together, these made up
2018 levels. With regards to the availability of
95.7% of all construction product exports in
financing for Maltese SMEs, there has been a
2020.
significant increase in the availability of bank
Table 2: Five most exported construction loans, credit lines and leasing.
products in Malta and in the EU in 2020
In terms of sources of financing in Malta, bank
Malta EU-27 loans were relevant for 58.0% of SMEs (and used
Share in by 12.0% of them), while credit lines were
Valu
constructio
Product
e
n product Product relevant for 71.0% (used by 41.0%). Similarly,
(EUR
000s)
export grants were relevant for 54.0% of SMEs (used by
sales (%)
20.0%) and other loans were relevant for 37.0%
Prefabricated Ceramic tiles
buildings of and flags of SMEs (used by 13.0%). Lastly, leasing and
1 641.7 71.4
metal (group (group equity was relevant for 30.0% and 22% of SMEs
251110) 233110)
respectively.
2 Wooden frames 133.3 14.8 Other

Between April and September 2020, 20.0% of This indicates mounting pressure in the urban
SMEs in Malta actually applied for a bank loan, areas. The share of the population living in
below the EU-27 average (35.0%). Around 1.0% densely populated areas also increased to 89.6%
of them did not apply because of fear of in 201968, from 89.1% in 2010. Malta’s
rejection, below the EU-27 average (4.0%). In the urbanisation rate increased from 94.1% in 2010
same period, 26.0% of SMEs in Malta actually to 94.7% in 202069. In parallel, the mean
applied for credit lines, below the EU-27 average equivalised net income has also increased to
(31.0%), whereas 3.0% of them did not apply EUR 17,246 in 201970, representing a 46.2%
because of fear of rejection, below the EU-27 growth compared to EUR 11,794 in 2010.
average (4.0%).
Number of households in Malta
Credit extended to firms in
the Maltese narrow +54.9
construction sub-sector %
2010: 2020:
reached EUR 627.0 billion in
137,200 212,500
2020, representing a 43.7%
decline from the 2010 level. Lending to households for home purchases
However, this also picked up, with total outstanding residential
represents an annual loans growing by 127.7%, from EUR 2.7 billion in
increment of 6.1%. 2010 to EUR 6.1 billion in 2019. This increase in
According to the 2020 EIBIS report for Malta, residential loans is partly supported by the
58.0% of construction firms reported the declining rates on mortgages. In fact, interest
availability of finance as a long-term barrier. This rates on mortgages (above five years’ maturity)
is comparatively higher than the firms in other declined from 3.5% in 2010 to 3.0% in 2020
sectors (manufacturing: 54.0% and services: (Figure 7).
55.0%). Moreover, the share of firms in Malta Figure 7: Mortgage rates for loans for over five-
categorised as financially constrained (such as year original maturity (%) between 2010 and
firms that got rejected when applied for 2020
financing, firms which received a lesser amount
when applying for financing, firms which
considered financing too expensive and firms
which were discouraged to apply) were the
highest in the construction sector, followed by
the services and manufacturing sectors65.
In the context of the conditions of access to
finance, the share of Maltese firms most
dissatisfied with collateral requirements was the
Source: Hypostat - European Mortgage Federation, 2021.
highest in the construction sector (17.0%), in
comparison with other sectors (services: 13.0% As a result of rising urbanisation, demand in the
and manufacturing: 3.0%). 13.0% of firms in the housing market has increased. Increasing
construction sector were also dissatisfied with household income coupled with declining
cost of financing66. interest rates has boosted affordability, which
has resulted in an increase in housing loans.
Access to housing Collectively these factors have led to an increase
The number of households in Malta increased in the housing prices. The house price index for
from 137,200 in 2010 to 212,500 in 2020 total dwellings has seen a continuous rise since
(+54.9%). At the same time, the share of the 2013. In 2020, it increased by 28.9% compared to
total population living in cities reached 49.0% in 2015, driven by a 31.6% and 28.0% rise in the
201867, slightly higher than 2017 with 48.8%. price index for existing and new dwellings
respectively.

Figure 8: House price index in Malta between increased by 97.4% and 251.0% respectively over
2010 and 2020 (2015=100) the 2015-2019 period. In 2020, permits for one-
dwelling buildings and two and more dwelling
buildings decreased by 73.7 ip and 130.6 ip
respectively.
In real terms, in 2020, the approval of permits to
develop new dwelling units fell by more than
37% Y-o-Y to just 7,837 units. This was mainly due
to pandemic-related restrictions. The permits for
apartments plunged by 37.2% to 6,735 units in
Source: Eurostat, 2021. 2020 compared to 2019, followed by terraced
houses permits, which dropped by 25.6% to 299
Malta’s housing market slowed down in the units over the same period78.
first half of 2020 due to the COVID-19
pandemic. However, it then regained With regards to rentals, the indexed values for
actual rentals for housing in Malta increased by
momentum which was marked by a rise in
115.6% over the 2015-2020 period. It also
the property price index by 5.0% in 2020,
experienced an annual increment of 4.5 ip in
compared with a 2.5% rise the previous 2020. Only 10.0% of rental properties in Malta
year71. are rented at market prices, and the rest falls
Apartment prices in Malta rose by 6.5% on under the subsidised sector. In 2020, free market
average and terraced houses by 1.6% during residential rents fell by double-digits over the
2020. This price rise was due to an increase in previous year, due to decline in tourist arrivals
demand, which also resulted in a rise in the and foreign expat workers amidst the COVID-19
number of housing transactions. The number of pandemic. In the first quarter 2021, rents
residential transactions rose by 8.7% Y-o-Y in the increased by 1.0% compared to the same quarter
first quarter 2021 to 32,123 units, after falling by the previous year79.
21.2% in 2020 compared to 201972. In addition, Home ownership rates in Malta fluctuated over
1,157 real estate reservation contracts were the 2010-2020 period. In 2010, the home
concluded in January 2021, marking a 27.0% ownership rate stood at 79.5%. It increased to
annual increment73. Likewise, the value of 81.4% in 2016, and further to 81.6% in 2018. In
transactions grew at an annual rate by 15.2% in 201980 it dropped slightly to 79.8%. The tenancy
the first quarter 202174. This is partly due to the rate, however, has remained stable, reaching
Maltese government’s temporary COVID-19 20.2% in 2019, in comparison with 20.5% in 2010.
measures (came in force in June 2020) providing
for reduced tax and duty rates of 5.0% and 1.5%, In 201981, 82.5% of people earning above 60.0%
respectively, on the first EUR 400,000 of property of the median equivalised income were
transferred inter vivos75. In August 2021, these homeowners. For people earning below 60.0%
temporary measures were extended by five of the median equivalised income the
months, until the end of December 2021 percentage was 66.2%
(formerly July 2021)76,77. Malta’s housing cost overburden rate82 stood at
The year 2020 witnessed a significant drop in 2.8% in 2020, below the EU-27 average of 9.9%83
housing supply. The indexed values of residential and the 2010 level of 3.7%, indicating issues
building permits, which increased by 216.3% around affordability84. Likewise, the
85
over the 2015-2019 period, plunged by 117.7 overcrowding rate in Malta stood at 3.7% in
index points (ip) Y-o-Y in 2020. As a result, the 2019, below the EU-27 average of 17.1%86 and
indexed values of residential building permits the 2010 level of 4.0%, increasing to 4.2% in
increased by 98.6% over the 2015-2020 period. 202087. Lastly, the severe housing deprivation
rate88 in Malta stood at 1.3% in 201989, below the
Similarly, building permits for one-dwelling EU-27 average of 4.0%90 and the 2010 level of
buildings and two and more dwelling buildings 1.4%. It then reduced to 1.0% in 202091.

Overcrowding rate in 2019 The government is actively involved in upgrading

the infrastructure in Malta. Using funds allocated
in the 2021 Budget, the Maltese government
continues to invest in infrastructure aiming to
3.7% 17.1% meet, both current and future economic, social
and environmental challenges. Initiatives and
projects in this respect include the continuation
Malta of arterial road construction projects, as well as
EU-27
projects for roads in residential and rural areas,
Infrastructure the regeneration of ports and improvement of
facilities for the maritime sector, industrial
As per the 2019 Global Competitiveness infrastructure, the modernisation of health
Report, Malta ranked 47th out of 141 facilities, investment in higher education
economies in terms of its infrastructure92,93. institutions and schools, sports facilities, and
social housing95.
It ranked 22nd in terms of efficiency of air
transport services and 27th in efficiency of Furthermore, as per the 2021 budget, in the
seaport services. However, with regards to medium-term, the government will carry out
quality of road infrastructure and road several capital and infrastructure projects in
connectivity it ranked 106th and 115th industrial areas, including the extension of the
respectively94. Life Sciences Park, the upgrade of the Kordin
Business Incubation Centre, investment at the
Marsa ex-landfill and a new logistics hub96

4
Key issues and barriers in the
construction sector
Company failure Interferences with supply chains, shortages of
skilled personnel, closure of sites, prolonged
In Malta, the number of company births in the suspensions and terminations of contracts are
narrow construction sub-sector grew from 204 in foreseen as causing potential disruptions and
2010 to 730 in 201897 (+257.8%), and company impacts on the construction sector103. Therefore, in
deaths increased from 143 to 393 (+174.8%) in the July 2020, the European Commission approved an
same period. Similarly, company births in the real aid package of EUR 67.5 million for Malta, which
estate activities sub-sector increased from 63 to 547 aims to support SMEs affected by the global COVID-
(+768.3%), and company deaths increased from 50 19 pandemic. The package provides access to
to 204 (+308.0%) over the same period. As for the working capital to those SMEs that are facing
architectural and engineering activities sub-sector, sudden liquidity shortages due to the pandemic104.
company births increased from 74 in 2010 to 88 in
201598 (+18.9%) and company deaths increased Trade credit
from 12 in 2010 to 60 in 201399 (+400%).
According to the 2020 Survey on
Company births in narrow construction the Access to Finance of
sub-sector in Malta Enterprises (SAFE) Report,
63.4% of Maltese SMEs
+257.8% respondents reported trade
credit to be relevant, well above
2010: 2018: the EU-27 average of 27.7%105,
204 730 106
.
As per the report, trade credit is the second most
important source of finance for SMEs in Malta, after
As per the World Bank Doing
credit lines. 31.5% of Maltese SMEs reported using
Business 2020 report100, Malta
it recently (April 2020 to September 2020), whereas
ranked 121st out of 190
the EU-27 average stood at 13.6%. Only 1.0% of
economies in terms of
SMEs did not apply due to possibility of rejection,
resolving insolvency and was
below the EU-27 average of 4.4%, while 44.2% of
among the lowest performers
SMEs did not apply because of sufficient internal
among all EU member
funds, above the EU-27 average of 33.1%107.
states101,102.
Regarding the availability of trade credit, 14.5% of
While the number of company insolvencies in the
Maltese SMEs reported that the availability of trade
Maltese construction sector is not available, it was
credit had deteriorated, slightly below the EU-27
expected to grow in 2020 following the COVID-19
average of 14.7%, whereas 78.4% of SMEs reported
pandemic.
that it had remained unchanged (April 2020 to
September 2020108).

Late payment COVID-19, 36.0% of enterprises applied for financial

assistance to help with cash flow and working
Payment delays are a frequent issue in Malta, which capital management115. With regard to
has a negative impact on the development of SMEs. non-collected cash, 60.0% of enterprises in the
According to the SAFE report 2020, 34.6% of SMEs construction sector reported that the amount due
in Malta reported experiencing regular problems was not collected116.
due to late payments, more than the double of the
EU-27 average (13.2%). 25.6% of SMEs reported not Time and cost of obtaining building
having any issues with late payment, which is much permits and licenses
lower than the EU-27 average (55.0%)109.
Late payments affect Maltese enterprises in several As per the World Bank Doing Business 2020
ways. In 2020, 49.7% of SMEs reported that late report, Malta ranked 57th with regard to
payment affected payments to suppliers, against a “Dealing with construction permits”117,118.
35.5% EU-27 average. 34.2% reported that it
Malta scores worse than the OECD high income
affected investments or new hirings in comparison
with 25.9% of SMEs in the EU-27. Daily production average on all metrics related to dealing with
construction permits. In particular, the number of
and operations have also been hampered for
around 18.6% of Maltese SMEs, lower than that of clerical procedures (16) and the number of days
the EU-27 average (24.9%). 22.6% of SMEs reported required to complete the formalities to build a
warehouse119 (179) are higher than the OECD high
that late payment had caused delays in repayments
income average of 12.7 procedures and 152.3 days
of loans and that they had to use additional
respectively (Table 3). Moreover, the cost of
financing, higher than the EU-27 average of
completing the formalities to build a warehouse
22.2%110.
represented 2.3% of the value of the warehouse,
In order to control the incidents of late payments, higher than the OECD high income average of
the government is taking several initiatives. 1.5%120.
Adopting the Late Payment Directive111, the Table 3: Construction procedures timing and costs
Maltese Finance Ministry has imposed a legal in Malta121
interest rate of 8.0% (as prescribed by the Time to Associated
Procedure
Directive, i.e. 8% above the European Central complete costs
Obtain fire and safety report for the
Bank’s reference rate, which is currently 0.00%) plans of the building
7 days EUR 450
for commercial transactions in the event of late Apply for building permit and await
15 days EUR 50
estimation of fees
payment with effect from 1 July 2021112. Obtain a Permit Application Report
(DPAR), attend hearing in front of the
Payment delays in B2B transactions in Malta have Environmental Planning Commission
60 days EUR 19,695
deteriorated amid the global COVID-19 pandemic (EPC) and receive building permit
and adverse impacts are visible in the broader Obtain approval from Building
Regulation Office prior to starting 7 days no charge
economy with regards to late payments113. construction
Submit commencement of works
As per a survey conducted by the notice and request for official 1 day no charge
Malta Association of Credit alignment
Management (MACM) in May Request and receive initial inspection
by Planning Authority for road 10 days no charge
2020, 45.0% of enterprises in the alignments and levels
construction sector reported that Hire an agency specialised in safety 1 day EUR 1,500
payments from customers were Request and receive inspection from
OHSA during construction works 1 day no charge
taking longer than usual during the
current crisis, which has resulted in Request and receive inspection by
the local council to release bank 1 day no charge
a negative impact on cash flow114. guarantee on roads
64.0% of enterprises in construction sector reported Receive final inspection for road
alignments and levels from Planning 1 day no charge
a "business as usual" attitude to payments among Authority
their customers. In terms of government aid for Apply for a compliance certificate
1 day EUR 60
from Planning Authority

Time to Associated them have either been quarantined or repatriated.

Procedure
complete costs
Request and receive inspection by
As a result, the skills shortage has widened in the
Planning Authority for the 14 days no charge sector126.
compliance certificate
Obtain compliance certificate 7 days no charge The Maltese government has announced several
Request and obtain water connection 20 days EUR 4090 employment-related measures as part of a financial
Apply and receive a sewage package to help the economy amid the pandemic.
4 days no charge
connection inspection For instance, as per the measure, Wage Supplement
Hire a certified contractor to carry
out the connection works and obtain 30 days EUR 424
March-June 2020, the government announced that
connection to sewage it will finance full-time employees in business, or
Source: Doing Business overview for Malta, Word Bank, 2020. self-employed persons working in the sectors hit
hardest by the COVID-19 outbreak, with EUR 800.0
Skills shortage per month from March 2020 to June 2020. This was
Labour shortages in the Maltese economy is a measure extended until the end of September 2020.
persisting challenge122. The issue of labour shortage Another measure, the Quarantine Leave
is exacerbated by the ageing population and a Supplement, awards EUR 350.0 as a grant to
relatively high share of low-skilled workers in Malta employers for each employee required to be on
(more information below)123. The country, mandatory quarantine leave127.
therefore, relies heavily on foreign workers from In June 2021, the Malta Chamber of Construction
within and outside the EU to mitigate the issue. Management (MCCM) and IDEA Academy, a
Despite companies reporting difficulties in private higher education institution, signed an
employing and retaining skilled workers, the
MoU (memorandum of understanding) focused
country has not yet put in place a strategy to keep
on promoting the upskilling of construction
foreign workers in Malta for longer periods124.
project managers.
The number of job vacancies in the narrow
construction sub-sector experience a Y-o-Y decline The agreement establishes mutually beneficial
of 57.4%, reaching 124 in 2020, whereas in the real activities which aim to address the skills gap and lack
estate activities sub-sector, it increased by 35.1% Y- of specialised training and education courses within
o-Y reaching 75 in 2020. Similarly, the job vacancy the local construction sector128.
rate in the narrow construction sub-sector reduced The Maltese government’s upcoming budget will
by 1.7 pp between 2019 and 2020, reaching 1.3% in focus on addressing labour market shortages in the
2020, whereas in the real estate activities country’s key sectors129.
sub-sector, it increased by 0.4 pp, reaching 2.6% in
2020. Sector and sub-sector-specific
Number of job vacancies issues
in the narrow
construction sub-sector 57.4% Material efficiency and waste management
between 2010 and 2020 In Malta, mineral waste from excavation,
construction and demolition amounts to
Furthermore, the number of tertiary students in approximately 74.0% of all construction and
engineering, manufacturing and construction in demolition waste (CDW) generated annually. In fact,
Malta reached 350 in 2019125, representing an over the 2010-2018130 period, mineral waste from
increase of 68.3% over the 2010-2019 period. This construction and demolition activities in Malta grew
increase was driven by the growth in students from by 134.3%, reaching 1,866,732 tonnes in 2018
engineering and engineering trades (+49.7%) and (796,626 tonnes in 2010)131. This is driven by a
from architecture and building (+98.5%) over the considerable increase in activities in the Maltese
same period. construction sector over recent years132.
The onset of the global COVID-19 pandemic has In 2017133, 56.0% of waste was backfilled and 19.0%
further exacerbated the existing skills shortage in was disposed of in the sea. In addition, Malta
Malta. The workforce in the construction sector recorded an increase in the recycling rate of CDW by
mostly comprises foreign workers, and most of
fostering the reuse of materials and preventing the provisions of Directive 2006/21/EC of the
them from entering the waste stream134. European Parliament and the European Council on
the management of waste from extractive
In October 2021, the Environment Minister,
industries137.
along with the Environment and Resources
Authority (ERA), introduced the Construction In cases where CDW is disposed of in a landfill, the
and Demolition Waste Strategy 2021-2030135. established criteria and procedures for the
acceptance of waste at landfills pursuant to Council
The strategy proposes 15 measures focusing on Decision 2003/33/EC creating criteria and
improving the standards of the construction sector, procedures for the acceptance of waste at landfills
improving waste classification and setting re-use pursuant to Article 16 of and Annex II to Directive
and recycling targets. The strategy, which targets 1999/31/EC is applied138.
the nine years stretching to 2030, also proposes
introducing incentives to restore abandoned houses Climate and energy
and suggests that from 2028, high-density The residential construction sector is a major
residential construction should be given targets to contributor to greenhouse gas emissions,
recycle at least 40.0% of all excavated material. It originating from energy consumption, fluorinated
will also serve as a framework to a cultural change gases for cooling and waste disposal (including
for the sector as well as minimise construction construction waste)139. In 2020, greenhouse gas
waste and focus on a more circular economy136. emissions were projected to be 32.0% above the
With regards to the legal instruments regulating 2005 level. As greenhouse gas emissions are
CDW at national level, Waste Management increasing and reduction measures insufficient,
(Management of Waste from Extractive Industries Malta is expected to miss its 2030 emission targets.
and Backfilling) Regulations deal with waste coming
from the extraction and processing of mineral
resources (i.e. limestone from quarries). It follows

5
Innovation in the construction sector
Innovation performance Figure 9: Business enterprise R&D expenditure
(BERD) per construction sub-sector in Malta
According to the European between 2010 and 2018148 (EUR million)
Innovation Scoreboard 2021,
Malta is classified as a
moderate innovator140.
According to the report, Malta’s main strengths lie
in environmental sustainability, use of information
technologies and intellectual assets. It has shown
strong improvement in broadband penetration,
foreign doctorate students and innovative
collaboration of SMEs. The top three indicators Source: Eurostat, 2021.
include trademark applications, environment-
related technologies and employment in Similarly, total R&D personnel149 (full-time
knowledge-intensive activities. However, in-house equivalents – FTE)150 in the broad construction
product innovators without market novelties and sector has seen differing trends across the
business process innovators are amongst the sub-sectors. The professional, scientific, and
country’s weakest innovation dimensions. It also technical activities sub-sector reported the highest
scores close to average on the climate change levels of R&D FTEs, increasing from 17 in 2010 to 47
related indicators141. in 2018151. However, R&D personnel in the narrow
construction sub-sector declined from seven in
Malta’s public research and development (R&D) 2010 to one in 2018152.
investment has also been on a declining trend since
2015, reaching the bottom of the EU-28142 ranking According to the 2020 EU Industrial R&D
in 2018143. According to Maltese authorities, the Investment Scoreboard, Malta has not filed any
country will miss its 2020 R&D intensity target of construction related patent applications since
2.0% of GDP144. 2010 and no Maltese construction and materials
firms rank within the top 1,000 EU companies by
In the broad construction sector, business
enterprise R&D expenditure (BERD)145 has seen R&D (industrial sector ICB-3D)153.
differing trends across the sub-sectors (Figure 9). As per the 2019 Small Business Act for Europe (SBA)
BERD expenditure in the professional, scientific and Fact Sheet, Malta’s performance in innovation has
technical activities sub-sector reached EUR 1.9 fallen below the EU-28154 average in the current
million in 2018146, representing an increase of reference period (2018 and the first quarter of
109.2% since 2010. Conversely, BERD in the narrow 2019). Therefore, to enhance the country’s
construction sub-sector declined from EUR 300,000 performance in this area the Business Enhance
in 2010 to EUR 10,000 in 2018147. RD&I Grant Scheme was launched in 2018. With a
BERD in the total budget of EUR 20.0 million, it provides grants
professional, scientific for a variety of research and innovation (R&I)
and technical activities
sub-sector between
109.2% activities including feasibility studies, R&D projects,
research infrastructure and process innovation155.
2010 and 2018 The scheme was ended in December 2020156.
However, the trend in uptake of such R&I schemes

is low in Malta as most innovative companies are investment and economic activity from local and
foreign owned157. foreign businesses, increase expenditure on
research and development and help create new
Eco-innovation and digitalisation start-up enterprises166.
According to the 2019 Eco-innovation The Malta Council for Science and Technology
Scoreboard, Malta is ranked in 21st position with (MCST) plays a crucial role in innovation policy. It is
a score of 73, below the EU-28158 average score the public body advising government on science and
of 100159. technology policy and is responsible for the National
Research and Innovation Strategy 2020. It also
Except on resource efficiency outcomes, Malta formulates policy recommendations in science and
scored below the EU-28160 average on four out of technology, representing the Maltese government
five indicators including eco-innovation activities, in EU forums and manages national and EU research
outputs, inputs and socio-economic outcomes161. and innovation funding programmes167. With
According to the European Commission Digital reference to the construction sector, MCST aids in
Economy and Society Index (DESI) 2020, Malta formulating innovation policies in projects. The
ranks 5th, with a 62.7 score, higher than the EU-28162 Ministry for the Economy, Investment and Small
average score (52.5). Compared to the previous Business (MEIB) is responsible for the
year, Malta has improved its rank and increased its implementation of a Digital Economy for Malta. It
score in connectivity, human capital, use of internet has the overall governance of the e-government
services and integration of the digital technology. vision, strategy and associated programmes168.
However, Malta’s rank in digital public services According to EIB Investment Survey 2020 report,
remained more or less the same in comparison with
the percentage of firms adopting digital
the previous year163.
technologies (Internet of Things (IoT), drones
Despite a considerable gap between larger and virtual reality) in the Maltese broad
companies and SMEs, the levels of digitalisation in construction sector in 2020 was above the
Maltese enterprises are high. Malta performs above EU-28169 average, except for 3D printing170.
the EU-28164 average for the digitalisation of
enterprises. The government has also been As per the survey, firms within the construction and
supporting the development of a digital economy infrastructure sectors accounted for the highest
through dedicated policy measures over recent share (58.0%) in terms of increased use of digital
years. It is prioritising measures for increase technologies as a long-term impact of COVID-19171.
capacity in digital technologies. A new body, Malta’s RRP includes measures to support
Tech.mt, was set up in March 2019 to promote digitalisation. 26.0% of the plan’s total allocation
Malta as a ‘tech centre for innovative
is dedicated for investment in digital
technologies’165.
objectives172.
In October 2019, an artificial intelligence (AI)
The plan will deepen digital transformation in Malta
strategy (A Strategy and Vision for Artificial
through policy reform, with a focus on minimising
Intelligence in Malta 2030) was adopted which is
the digital divide and promoting digital skills. As per
governed by the Malta Digital Innovation Authority
the plan, EUR 15.0 million will be used for
(MDIA). It aims to put Malta amongst the top 10
supporting the digitalisation of at least 360
nations with the highest-impact national AI
companies, notably SMEs in different sectors173.
programme. The strategy proposes to increase

6
National and regional regulatory
framework
Policy schemes To regulate private residential leases179 in Malta, the
Private Residential Act 2019 was enacted in
Maltese housing policies are particularly focused on November 2019. It is aimed protecting both the
home ownership through several initiatives and tenant and landlords when entering into a rental
planned reforms. To promote the home ownership agreement. The law covers deposit returns, lease
as well as improve the housing conditions in Malta, duration and notice terms180. As per the law, all
the Housing Authority was established in 1976 by private residential lease contracts entered into,
the Maltese government174. including renewals, must be in writing, should
The Housing Authority develops, promotes, and include specific provisions, and should be registered
with the Housing Authority181.
finances the development of housing estates,
social housing, and other residential and Another scheme includes the Subsidy on
commercial accommodation. It falls under the Adaptation Works in Residences occupied by
Ministry for Social Accommodation of Malta175. Owners or Tenants which was launched in January
2020 by the Maltese Housing Authority in relation
The Private Rent Housing Benefit Scheme launched to adaptation works in residences (owner occupied,
by the authority provides a housing benefit to privately rented or government rented residences).
tenants on rent paid for premises leased as the Owners renting-out private dwellings can apply for
ordinary residence of the applicants and their assistance to eliminate dangerous structures. They
family, thus rendering the rent more affordable. The can only make this application for one property. This
government has introduced new rental laws to the will aid in bringing the premises up to a habitable
Maltese property market176. and acceptable standard182.
The budget for Private Rent Housing Benefit The maximum amount of assistance under the
Scheme is EUR 5.0 million and it is aimed at Subsidy on Adaptation Works in Residences
helping up to 1,800 families with low incomes in occupied by Owners or Tenants scheme is
finding residential properties177. EUR 14,000.0 for owner occupied premises,
In order to avail of the benefit of this scheme, the EUR 10,000.0 for tenants and EUR 4,000.0 for
applicant / individual must have already signed a landlords of rented properties183.
contract of lease with the landlord, covering a This scheme is valid for works to be carried out on
minimum of six months, or a temporary lease not
properties built 15 years ago where the assets of
exceeding 21 years. Also, there are other obligations applicants during the year preceding the date of
in relation to citizenship, tenure of residency and application do not exceed EUR 60,000 and where
use of premises which need to be fulfilled. The rent
income is below EUR 26,091184.
benefit will be based on the annual income as well
as the rent paid by the applicants178.

In the 2020 budget, the Maltese government Building regulations

announced the extension of the Affordable
Housing Benefit Scheme, still in its first year of As a part of the ongoing reform of the Maltese
its operation, driven by its success. The scheme construction sector, the Building and
is expected to make a positive impact on the Construction Authority (BCA) was officially
overall population ‘at risk of poverty rate’, established in August 2021 by the Maltese
which is expected to decline by an annual rate of government192.
0.2 pp185. The BCA is the main body responsible for the design,
In order to increase the availability of social housing implementation and distribution of policies,
whilst reducing the number of vacant dwellings, the together with the consolidation and review of laws
Housing Authority introduced Renting to help out and regulations, in the form of a national building
(Nikru biex nassistu) in December 2019. This code193.
scheme aims at encouraging private owners of These collectively aim to manage the building and
vacant and finished residential property with one, the construction sector in Malta efficiently. The
two or three bedrooms to enter into a lease Authority is authorised to collaborate with
agreement with the Housing Authority for ten corporations, authorities, governmental and
years186. non-governmental entities and individuals in the
So far, 330 Maltese families execution of its role194.
have been granted homes with The primary piece of legislation regulating
the help of the Nikru biex construction activities is the Building Regulation Act
nassistu scheme. This is (Act XII of 2011). The scope of the act includes the
expected to include 773 families issuing licences and the registration of masons,
by 2022 and 884 families by building contractors and tradespersons; monitoring
2023187. the application of building regulations; endorsing
This scheme has been instrumental in reducing the certificates of compliance; enforcing building
number of people in need of alternative housing, control regulations; and providing technical
from 3,288 in 2017, to 1,900, before the allocation assistance to the Building Regulation to prepare
of new social accommodation starting later 2021188. technical guidance documents195.
In June 2021, Minister for Social The Energy Performance of Buildings Regulation,
Subsidiary Legislation (SL) 513.01 under Legal
Accommodation, Roderick Galdes, announced
Notice (LN) 47 of 2018, as amended by LN 134 of
that by the end of 2021, around 581 families that
2020, promotes the improvement of the energy
have sought help from the Housing Authority
performance of buildings within the territory of
will be allocated a home through the 'Nikru biex Malta. It considers outdoor climatic and local
Nassistu' scheme189. conditions, as well as indoor climatic requirements
In the wake of COVID-19, the Maltese government and cost-effectiveness196.
introduced a social measure to increase rent The regulation Avoidance Of Damage To Third
subsidies for individuals who have lost their job due Party Property, SL 513.06 under LN 136 of 2019, as
to the global pandemic. In this way, the Housing amended by LN 180 of 2019, ensures that before
Authority aims to make rent more affordable by starting any type of work comprising demolition,
lowering the burden that households face in excavation or construction, methodologies that are
relation to rental costs by raising the benefit cap190. technically secure are prepared to minimise the risk
In June 2020, the Maltese government announced of damages to third-party property or injury to
the reduction of property stamp duty (property tax). persons that may result through the proposed
This measure aims at incentivising buyers and works197.
sellers and encouraging private individuals to invest In June 2019, the Maltese Ministry for Transport,
for themselves and the economy, thereby ensuring Infrastructure and Capital Projects passed a draft
the continued stability of the private property law, which requires a Geotechnical Design Report.
market191.
The developer must prove that an appropriate Insurance and liability-related

structural investigation of the zone to be excavated
is carried out through the submission of such a regulations
report. Moreover, the Avoidance of Damage to Due to the increase in the number of construction
Third Party Property Act introduces stricter fines for accidents, the Maltese government issued the
contraveners 198. Avoidance of Damage to Third Party Property
According to the new construction regulations Regulations in June 2019, by means of Legal Notice
approved by the Maltese government in June 2019, 136. These regulations replace Legal Notice 513.02
it has become mandatory for construction site of 2013 previously in force. The new regulations aim
managers to be architects. Site works can resume to minimise the risk of damage or injury to third
only after fulfilment of the conditions in the new parties during the execution of construction works.
regulation199. They are applicable for excavation and demolition
works affecting third-party property, works
In the National Post-Pandemic Strategy
involving in the building of additional storeys above
document published in June 2021, the Maltese property occupied by third parties, and the
government announced its plans to develop construction of new buildings or storeys next to the
robust and measurable building and third-party property203.
construction standards to safeguard quality in
The developer applying for a permit is obliged to
construction, protect residents’ and workers’
provide an insurance cover of not less than
health and safety, attain energy and resource
EUR 750,000, whereas the previous minimum
efficiency, and address related pollution200. This amount was EUR 500,000. The insurance cover must
has also been integrated in the RRP201. be renewed until the work is completed204.
The government will also introduce licences and Liability principles for architects, engineers and
specialised warrants for construction activities, contractors are defined by article 1638 of the Civil
audits and inspections to confirm that works align to Code, under which they are responsible for any
permit conditions, safety, employment and other defects in the final construction for up to 15 years
regulations contained within the National Building from the day on which the construction was
Code. The code is currently being established by completed. Action against any damages must be
country’s new BCA202. taken within two years from the day on which the
defects occurred. The Civil Code also sets the
obligation for the employer to examine the final
delivered construction205.

7
Current status and national strategies
to meet Construction 2020 objectives
TO 1 – Investment conditions and Investment in intellectual
property by the narrow
volumes construction sub-sector 30.4%
Total investment by the broad construction between 2010 and 2020
sector206 grew between 2010 and 2020 (Figure 10).
The investment index in the broad construction
Investment by the narrow construction sub-sector
sector207 has experienced moderate growth since
increased from EUR 54.3 million in 2010 to EUR 57.8
2015, rising by 41.2% over 2015-2020 (Figure 11).
million in 2020 (+6.6%). Similarly, investment by the
This growth was mainly driven by investment in
real estate activities sub-sector significantly
dwellings by the whole economy and
increased from EUR 247.6 million in 2010 to
non-residential construction and civil engineering,
EUR 529.0 million in 2020 (+113.7%).
which increased by 82.3% and 26.0% respectively,
Total investment by the over the 2015-2020 period.
real estate activities sub-
sector between 2010 113.7% Figure 11: Investment index in the Malta
construction sector between 2010 and 2020
and 2020 (2015=100)
Figure 10: Investment by the Maltese construction
sector between 2010 and 2020 (EUR million)
Source: AMECO, 2021.
Investment index in
dwellings by the whole
Following the same trends, investment in economy between 2015 and 82.3%
intellectual property by the narrow construction 2020
sub-sector increased from EUR 2.3 million in 2010
to EUR 3.0 million in 2020 (+30.4%). Similarly, In absolute terms, investment in the broad
construction sector amounted to EUR 1.6 billion in
investment in machinery and equipment by the
2020, out of which EUR 508.0 million was invested
narrow construction sub-sector rose from EUR 12.9
in dwellings and EUR 1.1 billion was spent on
million in 2010 to EUR 22.7 million in 2020 (+76.0%).
non-residential construction and civil
208
engineering .

Total household renovation spending in Malta has With this investment, the government is aiming to
been consistently increasing since 2010, except for solve the problem of industrial space by providing
a slight drop in 2015. In 2020, it reached to EUR 20.3 more space for new businesses that will operate in
million, increasing by 37.2% compared to 2010. a sustainable environment. The programme
includes the extension of the Life Sciences Park,
The Maltese government has also prioritised
rebuilding of the Kordin Business Centre,
reducing traffic congestion in urban areas. In this
rehabilitation of former Luqa Dump and the
regard, the government aims to include investment
development of the new industrial facilities in Ħal
in roads as part of potential investment under the
Far. The creation of 600,000 sqm of new industrial
Cohesion Policy for the 2020-2021 period. To
and environment-friendly space is expected to
address traffic congestion, the government
accommodate new foreign direct investment (FDI)
invested EUR 700.0 million in a seven-year road
and create thousands of quality new jobs216.
transport infrastructure project to upgrade and
refurbish the road network, starting in 2019209. In its Recovery and Resilience Plan, the Maltese
In September 2021, the Transport, government has allocated around EUR 16.0
Infrastructure and Capital Projects ministry of million for shifting transport from road to sea
Malta announced that more than 700 roads and reducing emissions from the transport
have been rebuilt across Malta and Gozo in the sector217.
past three years as part of the EUR 100.0 million It will provide access to free public transport to
investment a year210. selected groups of the population to address
congestion and make transport more sustainable.
Out of the 700, 123 were residential roads and 71
were roads connecting rural communities. Capital TO 2 – Skills
projects such as the Marsa junction and the Central
Link are expected be completed by October 2021211. The overall responsibility for vocational education
and training (VET) in Malta, lies with the Ministry
To support the development of the transport for Education and Employment218. The uptake of
infrastructure, the country’s long-term National VET in Malta has grown over the years. The
Transport Strategy 2050 and the Transport Master proportion of VET learners at upper secondary
Plan 2025 have already been launched by the level enrolled in programmes involving work-based
government. These strategies aim to achieve more learning increased to 35.0% in 2018219 from 32.0% a
sustainable mobility by improving the road network year earlier, continuing the upward trend recorded
and reducing traffic bottlenecks, as well as bring in the past five years220. Similarly, enrolments in
about more sustainability in modes of travel212. upper secondary VET rose from 27.1% in 2017 to
Infrastructure Malta has also opened the first new 28.5% in 2018221. Moreover, the employment rate
road of the Central Link Project (launched in of recent VET graduates in Malta stood at 93.1% in
January 2020), a two-lane westbound carriageway 2019222, above the EU-27 average of 80.9%.
bypassing three traffic light junctions. The EUR 55.0 However, adult participation in learning in 2019223
million project aims to establish a quicker and safer stood at 12.0%, slightly higher than the EU-27
route with reduced traveling time and improved air average (10.8%)224.
quality along the principal arterial road corridor in Employment rate of recent graduates in
Central Malta. As part of this project, Infrastructure 2019
Malta is presently also building Malta’s longest
bi-directional track for cyclists and pedestrians. The
Central Link Project is part-financed by the
European Regional Development Fund (ERDF) and
93.1% 80.9%
the Cohesion Fund of the European Union213,214.
In November 2020, the Maltese government
introduced a EUR 470.0 million infrastructure
investment programme, to be spread out over 8 Malta EU-27
years215.

Malta’s public expenditure on education as a Despite the positive results in the rate of early
percentage of GDP stood at 5.2% in 2019225, slightly leavers education and training and increases in
higher than the EU-27 average (4.6%). However, the tertiary education attainment from previous years,
proportion of early leavers from education and the educational outcomes and attainment rates in
training (aged 18-24) in 2019226 in Malta stood at Malta are generally lower compared to the EU-28
16.7%, well above the EU-27 average (10.2%). average. This highlights the challenges in the quality
Hence, tackling education related issues remains a of investment in education232.
key priority for Malta. Tertiary educational
The European Structural Fund project Achieving
attainment in Malta reached 37.8% in 2019227,
Vocational Excellence through Enhanced
below the EU-27 average (40.3%)228.
Work-based Learning is aimed at building on
Proportion of early leavers from education Malta’s College of Arts, Science and Technology
and training in 2019 (MCAST) work-based learning to make VET more
attractive to students. The project will involve
developing and delivering a mentoring training
programme for MCAST lecturers. It is estimated
that around 600 students from MCAST following an
16.7% 10.2%
apprenticeship programme will benefit from the
project. Project implementation began in 2019 and
is expected to be accomplished by 2022233.
Malta EU-27 In August 2021, the Chartered Institute of
Building (CIOB) signed a memorandum of
In the Recovery and Resilience Plan, the Maltese
understanding (MoU) with the Malta Chamber of
government announced plans to enhance the
Construction Management (MCCM) to support
quality and inclusiveness of education and training
in the country. It has allocated around EUR 41.4 the professionalisation of construction in
million to strengthen early school leaving Malta234.
prevention measures, expanding guidance and The MoU between the parties for the next three
opportunities for upskilling and reskilling for all years is focused on professionalising construction in
adults and in particular for the low-skilled. Malta, through education and training. It also aims
Additionally, it will focus on reinforcing quality to raise the profile and recognition of professional
inclusive education for pupils with special needs management in construction235. The CIOB is the
and on improving the education policy monitoring world's largest professional body for construction
system229. management and leadership with more than 45,000
The Maltese government with the support of EU is members worldwide236.
taking several initiatives to improve the condition of In 2021, MCAST introduced a full-time Bachelor’s
VET in the country. In June 2021, the Directorate for degree in Vocational Education and Training
Research, Lifelong Learning and Employability 4.0237.
(DRLLE) introduced the public consultation on the
National Strategy for Lifelong Learning The course is focused on those who are willing to
2020-2030230. specialise, particularly in teaching and learning of
VET238.
The National Strategy for Lifelong Learning 2020
– 2030 includes the entire range of formal, In October 2021, IDEA Academy, in collaboration
non-formal and informal learning activities, with the MCCM, launched two Construction
both general and vocational, undertaken by Management Courses which focus on
students (aged 15+) after leaving initial management applications and techniques within
education and training. It is focused on the construction sector239.
increasing adult participation in learning, in line The courses are customised to cover the whole
with EU targets231. spectrum of construction management, from the
newly introduced Level 5 Certificate in Site

Management (a course that will enable prospective technology. Malta has one of the lowest energy
members of the MCCM to achieve Tier 2 status) to intensity figures for households within the EU246.
the MSc in Construction Management level240.
In the NECP draft, Malta plans to focus to vulnerable
As part of its artificial intelligence strategy launched and energy poor households. Energy efficiency
in October 2019, Malta aims to promote training, schemes and grants will specifically address
including a specific re-skilling programme to help vulnerable households including the elderly and will
vulnerable workers acquire digital skills241. also address the shift to technologies which require
significant capital outlay, or which result in
In line with this strategy, the E-Construct
relatively long payback periods. Malta already has
programme was launched in October 2019 with
an annual budget of approximately EUR 200,000 to
reference to Malta’s construction sector. It is a
support a scheme for households in a condition of
30-hour pre-skilled card preparatory course which
energy poverty247 under which old appliances are
aims to teach the necessary skills to manage,
replaced by new efficient units248.
promote and work in the construction sector. The
training programme will focus on basic maths, Malta has introduced the Energy Performance of
safety at work, better use of information and Buildings Regulations (LN 47 of 2018 that replaced
communications technology (ICT) and several other LN 376 of 2012) to transpose and implement the EU
training workshops242. It also includes a skills plan Directive 2010/31/EU on the energy performance
for the sector to support and emphasise the skill of buildings. The regulations promote improvement
card system (introduced in 2016) and to retain of the energy performance of buildings within the
existing human resources, while attracting new territory of Malta, considering outdoor climatic and
generations of talent in the sector. As of May 2020, local conditions, along with indoor climatic
this programme reached over 232 workers243. requirements and cost effectiveness. The regulation
also makes the Energy Performance Certificate
TO 3 – Resource efficiency / (EPC) compulsory for any building to be
Sustainable construction constructed, sold or rented out249.
At the end of 2019, Malta submitted its final draft Currently, there are more than 50,000 buildings
National Energy and Climate Plan (NECP), for the granted an EPC in Malta250. Better use of these
period 2021-2030, to the European Commission, in certificates and a long-term renovation strategy for
line with the requirements of the Governance addressing both social housing infrastructure and
Regulation. The NECP serves as a strategic planning the worst-performing buildings in the building stock
framework and policy document that will guide would support the uptake of energy renovation in
Malta’s contribution to achieving the Energy Malta. This could also help in boosting energy
Union’s 2030 objectives and targets, whilst efficiency substantially251.
identifying those measures necessary for their Currently only 0.6% of residential buildings and
achievement during the period until 2030, with an 2.1% of non-residential buildings in Malta are
outlook until 2040244. renovated yearly. Energy-related ‘deep’
Malta’s NECP follows the scope of the Energy renovations are carried out on 0.1% of residential
buildings and 0.4% of non-residential buildings each
Union and covers its five dimensions including
year. Consequently, these renovations result in only
decarbonisation, energy efficiency, energy
10.0% energy savings for the residential sector on
security, internal energy market, and research,
average and 15.0% for the non-residential sector.
innovation and competitiveness245. The country’s low renovation rates have resulted in
Malta has the highest share of energy used for low energy savings252.
lighting and appliances in the EU. In Malta, there is Low-income households in Malta are provided with
no gas distribution network or district financial support to make their dwellings more
heating/cooling networks. Construction of such energy efficient. Despite this effort, Malta has made
networks has so far been deemed not feasible, limited progress in focusing investment-related
mainly due to the limited demand for heating and economic policies on resource and energy
widespread use of alternative cooling heat-pump efficiency253.

As per Malta’s National Reform Programme The scheme has a budget of EUR 4.0 million.
2020, supporting the renovation of existing Financial assistance of up to EUR 200,000 per
buildings stock coupled with targeted training beneficiary (subject to state aid rules) will be
schemes will help in improving the energy awarded to eligible undertakings in the form of a
performance of buildings254. cash grant, varying from 25.0% to 40.0% of the
investment required, if it is proven that a reduction
With respect to the design of buildings, the Malta of at least 20.0% in CO2 emissions is achievable
Planning Authority is promoting energy efficiency through the envisaged investment. Since the
through several policies and guidelines. For amount of aid requested has exceeded the budget
instance, all developments under way are expected allocated to the Construction Industry Scheme,
to make optimum use of space and are to avoid Malta Enterprise stopped receiving applications for
making longer and dark corridors. The support through the scheme in January 2021258.
developments and construction are to be designed
in a way that light easily permeates through the In December 2020, Malta introduced a new
spaces. Specific energy conservation measures have guarantee instrument combined with an
also been considered like the use of renewable interest rate subsidy program which was funded
sources of energy255. by the European Regional Development Fund
through EUR 15.0 million and managed by the
Residential buildings in Malta account for 84.0% of
European Investment Fund (EIF)259.
building stock, but only around 0.6% are renovated
each year. Investments in energy renovations could As per the scheme, the EIF reached an agreement
help achieve the national energy and climate with APS Bank and with Bank of Valletta (BoV) to
targets. Progress is hampered by skills shortages, deploy EUR 54.0 million of loans and provide a
low enforcement of minimum requirements and EUR 2.8 million interest rate subsidy, over a 3-years
insufficient use of efficient materials and period, in relation to the projects carried out by the
technologies. Additional efforts are needed to corporates and households in Malta. It aims at
target energy efficiency renovations and promote financing projects in the sector of renewable energy
renewable energy in residential buildings, which as well as promote energy efficiency in buildings.
use the largest share of energy. The policies Between 2,000 and 3,000 projects are expected to
introduced in the renovation strategy could lead to be funded across the country260.
savings of over 60,000 GWh of primary energy in
buildings by 2050, leading to emission reductions of TO 4 – Single Market
4.4 million tonnes CO2 (a reduction of 150,000
According to the EU Single Market Scoreboard in
tonnes per year in 2030). In order to reach the
2020, Malta has performed satisfactorily with
targeted savings, the renovation rate will have to
increase by 2.5 pps up to 2050. This is expected to respect to internal market information
generate between 1,200 and 4,300 jobs per year256. systems261 in 2019, with two out of four
indicators improved from the year before.
Malta’s Recovery and Resilience Plan includes
EUR 60.0 million investment in energy-efficiency Malta’s score regarding the transposition deficit
renovations and greening of private and public stood at 0.3% in 2019 below the EU-28262 average
buildings including schools and hospitals. This (0.6%) and the proposed 0.5 % target. The
conformity deficit stood at 0.6% in 2019, higher
also includes the financing of deep retrofitting
than last year (0.4%), but lower than the EU-28
and renewable energy installations257.
average (1.2%)263. At the same time, the country’s
The Construction Industry Scheme, launched by the performance in terms of the average delay for
Malta Enterprise in December 2020, seeks to overdue directives stood at 18.1 months in 2019,
encourage operators in the construction sector to higher than last year (10.3 months) as well as the
scrap and replace old machinery and equipment EU-28 average (11.5 months).
with new equipment that generates less
environmentally harmful emissions.

The number of pending cases under infringement in The use of the Eurocodes is voluntary in Malta.
2019 stood at 20, higher than the 16 pending cases National Annexes have not yet been published
in the previous year, but below the EU-28264 officially. The regulatory framework for their use in
average (29 cases). Malta’s trade integration in the public procurement is not yet agreed upon by the
single market for goods and services is above the Building Regulations Office (BRO). Hence,
EU-28 average265. Eurocodes cannot yet be used for structural
design271.
Some indicators on compliance with single market
rules in the area of goods highlight room for TO 5 – International
improvement. With a low level of notifications of
technical regulations under the Transparency competitiveness
Directive, Malta is making limited use of this tool to As per World Bank Doing Business 2020 report,
allow dialogue with other member states for the Malta ranked 48th out of 190 economies in the
improving the free movement of goods266. ease of trading across border, achieving score of
As per the Malta Corruption Report267, published in 88.9272.
August 2020, land administration is characterised As per the report, in Malta it takes 24 hours to be
by moderate corruption risk and over 50.0% of documentary compliant and the same amount of
citizens believe that bribery and abuse are common time to be border compliant. In terms of costs,
among officials issuing building permits. The businesses need to spend USD 370.0 (EUR 318.2)
country’s public procurement sector also carries a and USD 25.0 (EUR 21.5) to be border and
high corruption risk. On awarding public contracts, documentary compliant, respectively273.
enterprises have reported that favouritism on the
part of public officials affect fair competition268. With regards to the internationalisation of
construction products in the Maltese construction
However, Malta is actively pursuing effective and sector has shown signs of decline in the past few
efficient public procurement in the understanding years. The export values of all construction-related
that it will support government’s broad strategic products decreased from EUR 2.4 million in 2010 to
goals and contribute to the fast-growing economy. EUR 0.9 million in 2020, exhibiting a decline of
The country has made significant progress in 62.0% during the period.
updating its public procurement process with
several strategic initiatives either ongoing or Exports value of all
accomplished. The e-procurement system has also construction-related
played a positive role in improving transparency products between 2010 62.0%
and communication amongst bidders269. and 2020
Public procurement in Malta has also been affected In the context of inward FATS (Foreign Affiliates
the COVID-19 pandemic. The Legal Notice 61 of Statistics)274, value added at factor cost in the
2020, to be read in conjunction with Legal Notice 65 manufacturing275 sub-sector increased by 2.2%;
of 2020, has also suspended all legal and judicial while gross premiums written declined by 4.3%
times and any other time limits including between 2010 and 2018276.
peremptory periods applicable to procurement
Malta has developed several policies and initiatives
proceedings270.
to support the internationalisation of its SMEs in
Regarding the implementation of Eurocodes, all EN recent years, addressing most of the SBA principles.
Parts are published as National Standards, with EN
1990 and EN 1991-1-1 being translated in the
national language.

In 2017, it launched the SME e-Commerce Grant tailored to construction companies, the Malta
with an annual budget of EUR 1.0 million. It offers Developers Association explained that it sometimes
grants to companies for setting up online sales and participates in missions as a delegation together
booking systems and for helping them access with Maltese construction enterprises.
overseas markets. As of May 2019, a total of 48
The International Trade Promotion Incentive
beneficiaries had received grants totalling
Scheme (ITPIS), administered by the government
EUR 223,000277.
body TradeMalta Limited, aims to support
Similarly, the Cooperate for Growth scheme businesses that want to internationalise or are
launched in 2018 and the first quarter of 2019 aims already exporting and wish to promote a product
to support private companies that are willing to or service in a new or existing international
enter new markets or introduce a new service or market280.
product in an existing international market278,279.
Although these programmes are not specifically

8
Outlook
After witnessing an annual decline of 7.0% in investing in roads and ensuring sustainable
GDP in 2020 due to the COVID-19 pandemic, development and mobility in the coming years. The
the Maltese economy is expected to recover country’s long-term National Transport Strategy
and grow post 2021. 2050 and the Transport Master Plan 2025 have
already been launched by the government. These
Malta’s GDP is expected to grow by 4.6% in 2021,
strategies aim to achieve more sustainable
reaching EUR 12.1 billion and then by 6.1% in 2022,
mobility by improving the road network and
reaching EUR 12.9 billion.
reducing traffic bottlenecks, as well as bring about
Mirroring the overall economy, the volume index more sustainability in modes of travel282.
of production281 in the Maltese broad construction
The Maltese government, under the EUR 316.4
sector is expected to grow by 19.8 ip in 2021 and
million Recovery and Resilience Plan (RRP), has
then by 21.9 ip in 2022. Similarly, the turnover of
allocated around EUR 60.0 million for
the broad construction sector is also projected to
energy-efficiency renovations and greening of
increase by 7.1% in 2021 compared to 2020,
private and public buildings283.
reaching EUR 2.5 billion. At the same time, the
total value added of the broad construction sector The country has planned to invest around EUR 55.0
is expected to reach EUR 1.1 billion in 2021, million for the digital transformation through
increasing by 8.3% over 2020. policy reform, aimed at reducing the digital divide
and promoting digital skills. It also includes the
The number of persons employed in the broad
finalisation and implementation of Malta’s Smart
construction sector is also expected to increase by
Specialisation Strategy, with a focus on fostering
6.5% to 20,645 persons in 2021. The majority of
business R&I and strengthening public-private
this growth is expected to come from the real
cooperation. Additionally, the country has
estate activities (+13.1%) and the architectural and
allocated around EUR 111.0 million for addressing
engineering activities (+8.0%) sub-sectors.
carbon-neutrality by decarbonising transport. This
With regard to the housing market, it is gaining is planned to be achieved by granting access to free
momentum after slowing in the first half of 2020 public transport to selected groups of the
due to the COVID-19 pandemic. It is expected to population to address congestion and make
improve further in the coming years, mainly driven transport more sustainable284.
by government measures. In particular, the grants
Overall, the Maltese construction sector is
provided by the government under the Renting to
forecast to recover from 2021 onwards, driven
help out (Nikru biex nassistu) scheme is expected
by digitalisation and large infrastructure
to benefit 773 families by 2022 and 884 families by
projects and plans including the National
2023.
Transport Strategy 2050 and the Transport
Master Plan 2025.
As for infrastructure, the Maltese government will
continue with its upgrading programme by

References
1 Please note that this 2020 data is a nowcast - please refer to the methodology notes for further details.
2 Data unavailable for construction of buildings and construction of civil engineering.
3 The data breakdown for construction of buildings and civil engineering is not available.
5 The gross operating rate is the ratio of Gross Operating Surplus to Turnover, and is an indicator of profitability.
6 Data unavailable for 2010
7 Data unavailable for subsequent years
8 European Commission, Malta’s recovery and resilience plan, September 2021. https://ec.europa.eu/info/sites/default/files/factsheet-
malta_en_0.pdf
9 Ibidem.
11 Data unavailable for the manufacturing sub-sector between 2011 and 2017 and the architectural and engineering activities sub-sector
between 2011-2015 and 2018 and 2019 respectively. Data for narrow construction sub-sector is available only till 2018 and the data real
estate activities sub-sector available only till 2017
12 Data unavailable for construction of buildings and construction of civil engineering.
13 The data breakdown for construction of buildings and civil engineering is not available.
14 Please note that the share of each sub-sector in the value added of the broad construction sector should not be compared to the shares of
the Gross Value Added in the GDP, since the GDP also includes taxes and excludes subsidies
16 Data not available for 2010.
18 Apparent labour productivity refers to the Gross Value Added per person employed
24 Data not available before 2017.
25 No data available for Manufacturing (2011, 2012, 2013, 2014, 2016 and 2017) and Architectural and engineering activities (2010, 2011, 2012,
2013, 2014, 2015 and 2016).
26 EIB Investment Survey 2020: Finland Overview, https://op.europa.eu/en/publication-detail/-/publication/259f07ac-433c-11eb-b27b-
01aa75ed71a1
29 The total does not include buying and selling of own real estate, renting and operating of own or leased real estate, and real estate activities
on a fee or contract basis, since no data is available for this specific activity within the real estate sub-sector.
30 More recent data is not available.
32 The gross operating rate is the ratio of Gross Operating Surplus to Turnover, and is an indicator of profitability.
34 More recent data is not available.
37 Data not available before 2015.
38 Data not available before 2015 and after 2018.
39 Central Bank of Malta, Outlook for the Maltese Economy 2020-2023, February 2021.
https://www.centralbankmalta.org/en/news/88/2021/8910
40 Update of Stability Programme 2021 – 2024, Malta, https://ec.europa.eu/info/sites/default/files/2021-malta-stability-programme_en.pdf
41 World Bank Group, Doing Business 2020, Economy Profile for Malta,
https://www.doingbusiness.org/content/dam/doingBusiness/country/m/malta/MLT.pdf
42 As the publication of the WB Doing Business report 2021 will not be available, this report relies on the data provided by the 2020 edition
44 2021 SME factsheet background document,
https://ec.europa.eu/growth/sites/default/files/background_documents_of_the_sme_fact_sheets_2021.zip
45 Ibidem.

46 European Commission, Recovery and Resilience Plan for Malta 2021.

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021PC0584
47 Ibidem.
50 As the publication of the WB Doing Business report 2021 will not be available, this report relies on the data provided by the 2020 edition
51 2021 SME factsheet background document,
https://ec.europa.eu/growth/sites/default/files/background_documents_of_the_sme_fact_sheets_2021.zip
52 EIB Investment Survey 2020: Finland Overview, https://op.europa.eu/en/publication-detail/-/publication/259f07ac-433c-11eb-b27b-
01aa75ed71a1
53 Malta Enterprise, https://www.maltaenterprise.com/support
54 MicroInvest scheme for small businesses and self-employed extended, August 2021. https://www.independent.com.mt/articles/2021-08-
05/local-news/MicroInvest-scheme-for-small-businesses-and-self-employed-extended-6736235755
55 PwC, Malta Development Bank launches the COVID-19 Guarantee Scheme (CGS). https://www.pwc.com/mt/en/publications/other/malta-
development-bank-launches-the-covid-19-guarantee-scheme.html
56 Malta Enterprise Corporation, January 2020. https://maltaenterprise.com/startup-finance
57 Malta: Staff Concluding Statement of the 2021 Article IV Mission, https://www.imf.org/en/News/Articles/2021/07/21/mcs-072121-malta-
staff-concluding-statement-of-the-2021-article-iv-mission
58 Data not available for subsequent years.
60 Data of investment per person employed by industry by the manufacturing sub-sector not available.
62 According to Eurostat, construction services comprises Construction Abroad (code 250) and Construction in the Compiling Economy (code
251). They do not include architectural services, or engineering services.
63 Figures before 2015 are not available.
64 Figures for 2010 are not available.
65 EIB Investment Survey 2020 Malta, https://www.eib.org/attachments/efs/eibis_2020_malta_en.pdf
66 Ibidem.
67 Data unavailable for 2019 and 2020.
68 Data unavailable for 2020.
69 Malta: Urbanization from 2010 to 2020, https://www.statista.com/statistics/455883/urbanization-in-malta/
71 Malta’s housing market remains resilient, https://www.globalpropertyguide.com/Europe/Malta/Price-History
72 Ibidem.
73 Property in Malta: Why demand is rising but prices are falling, https://immigrantinvest.com/en/insider/malta-realty-prices-and-taxes-2021/
74 Malta’s housing market remains resilient, https://www.globalpropertyguide.com/Europe/Malta/Price-History
75 Inter vivos (living) trusts are created while an individual is still alive in order to name the beneficiaries of property and assets upon death
while avoiding probate.
77 Mondaq: Malta: Extension Of The Reduced Tax And Duty Schemes On Transfers Of Immovable Property Until December 2021, August 2021.
https://www.mondaq.com/property-taxes/1114818/extension-of-the-reduced-tax-and-duty-schemes-on-transfers-of-immovable-property-
until-december-2021
78 Ibidem.
82 The housing cost overburden rate is the percentage of the population living in households where the total housing costs represent more than
40% of disposable income.
83 This figure is an estimation, as per the website.
84 Eurostat, Housing cost overburden rate by age, sex and poverty status - EU-SILC survey.
http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_lvho07a&lang=en
85 The overcrowding rate is defined as the percentage of the population living in an overcrowded household.
87 Eurostat, Overcrowding rate. http://ec.europa.eu/eurostat/product?code=ilc_lvho05a&language=en&mode=view
88 Eurostat, Severe housing deprivation rate is defined as the percentage of population living in the dwelling which is considered as
overcrowded, while also exhibiting at least one of the housing deprivation measures. Housing deprivation is a measure of poor amenities and
is calculated by referring to those households with a leaking roof, no bath/shower and no indoor toilet, or a dwelling considered too dark.
91 Severe housing deprivation rate, http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_mdho06a&lang=en

92 World Economic Forum, The Global Competitiveness Report 2019

http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf
93 As the 2020 edition of Global Competitiveness Report was not published, the data from 2019 report has been retained.
94 World Economic Forum, The Global Competitiveness Report 2019.
http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf
95 Update of Stability Programme 2021 – 2024, Malta, https://ec.europa.eu/info/sites/default/files/2021-malta-stability-programme_en.pdf
96 Ibidem.
100 As the publication of the WB Doing Business report 2021 will not be available, this report relies on the data provided by the 2020 edition.
101 European Commission, Country Report Malta 2020. February 2020, https://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52020SC0517&from=EN
102 World Bank Doing Business 2020, Economy Profile Malta.
103 Malta: How Will Construction Contracts Be Affected By The COVID-19, https://www.mondaq.com/wills-intestacy-estate-
planning/910926/how-will-construction-contracts-be-affected-by-the-covid-19
104 Commission approves aid by Malta to support SMEs, https://home.kpmg/mt/en/home/insights/2020/07/commission-approves-aid-by-
malta-to-support-smes.html
105 SAFE Report 2020, https://ec.europa.eu/docsroom/documents/43871
106 SAFE Analytical Report 2020, https://ec.europa.eu/docsroom/documents/43872
107 European Commission, Survey on the Access to finance of Enterprises (SAFE) Report 2020
https://ec.europa.eu/docsroom/documents/43871
108 Ibidem.
109 Ibidem.
110 Ibidem.
111 Late Payment Directive, https://ec.europa.eu/growth/smes/sme-strategy/late-payment-directive_en
112 Late Payments, https://mfin.gov.mt/en/The-Ministry/Departments-Directorates-Units/fpmd/Pages/Late-Payments.aspx
113 Construction cash flows mostly unaffected by COVID-19, but car industry having issues,
https://www.maltatoday.com.mt/news/national/102361/construction_cash_flows_mostly_unaffected_by_covid19_but_car_industry_havin
g_issues#.X2N6t2gzY2x
114 Ibidem
115 Ibidem
116 Covid-19: MACM survey assesses pandemic impact on the Building and Construction Industry, http://maltawinds.com/2020/05/15/covid-19-
macm-survey-assesses-pandemic-impact-on-the-building-and-construction-industry/
117 World Bank Group, Doing Business 2020, Economy profile Malta,
118 As the publication of the WB Doing Business Report 2021 was not available at the time of the writing, this report relies on the data provided
by the 2020 edition.
119 The warehouse in this example is defined as a structure for general storage activities, with two stories, above ground and with total
constructed area of approx. 1,300 square meters. The ground, on which the warehouse is built is owned by the company that will use it and
valued at 50 times income per capita. There are architectural and technical plans prepared for the warehouse, which are also taken into
account and counted as procedures if their preparation requires obtaining further documentation or getting prior approvals from eternal
agencies. Finally, in this example the warehouse takes 30 weeks to construct, excl. all delays due to administrative and regulatory
requirements.
120 World Bank Group, Doing Business 2020, Economy profile Malta,
121 As the publication of the WB Doing Business Report 2021 was not available at the time of the writing, this report relies on the data provided
by the 2020 edition.
123 Vocational education and training in Europe, https://www.cedefop.europa.eu/en/tools/vet-in-europe/systems/malta
124 Dependence on foreign workers close to 30% in construction, communication sectors – CBM,
https://www.independent.com.mt/articles/2019-11-19/local-news/Dependence-on-foreign-workers-close-to-30-in-construction-
communication-sectors-CBM-6736216395
126 Coronavirus: Economic situation causing construction sector slowdown – Chamber of Architects,
https://www.independent.com.mt/articles/2020-03-26/local-news/Coronavirus-Economic-situation-causing-construction-sector-slowdown-
Chamber-of-Architects-6736221318
127 Government and institution measures in response to COVID-19, https://home.kpmg/xx/en/home/insights/2020/04/malta-government-and-
institution-measures-in-response-to-covid.html
128 Cooperation Agreement between Malta Chamber of Construction Management & IDEA Academy to upskill workforce, 15 June 2021.
https://whoswho.mt/en/cooperation-agreement-between-malta-chamber-of-construction-management-idea-academy-to-upskill-workforce

129 Lovin Malta, Addressing Malta’s skill shortages will be priority in upcoming budget
https://lovinmalta.com/news/addressing-maltas-skill-shortages-will-be-priority-in-upcoming-budget/
130 Data unavailable for subsequent years.
131 Eurostat, generation of waste by waste category, hazardousness and NACE Rev. 2 activity
https://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do
132 Public Consultation: Construction and Demolition Waste Strategy for Malta, 2020-2025 – Managing Construction & Demolition Resources,
https://meae.gov.mt/en/Public_Consultations/MSDEC/Pages/Consultations/PublicConsultationConstructionandDemolitionWasteStrategyfor
Malta20202025ManagingConstructionDemolitionR.aspx
135 Malta launches Construction and Demolition Waste Strategy 2021-2030, October 2021. https://www.themayor.eu/en/a/view/malta-
launches-construction-and-demolition-waste-strategy-2021-2030-9079
136 Times Malta, Nine-year strategy to tackle Malta’s construction waste unveiled
https://timesofmalta.com/articles/view/nine-year-strategy-to-tackle-maltas-construction-waste-unveiled.906775.
137 Construction and Demolition Waste Strategy for Malta 2021-2030.
https://cdn-others.timesofmalta.com/1ecf9b86f6cd0178ba9657e19a2e80799a024392.pdf
138 Ibidem.
140 European Commission, European innovation scoreboard 2021- Malta, https://ec.europa.eu/docsroom/documents/45925
141 Ibidem
142 As the EU-27 average data was not available, the EU-28 average was used for comparative purpose
145 Data unavailable for the real estate activities sub-sector.
149 Data unavailable for the real estate activities sub-sector.
150 A full-time equivalent (FTE) is a unit to measure employed persons in a way that makes them comparable, although they may
work a different number of hours per week. The unit is obtained by comparing an employee's average number of hours worked to the
average number of hours of a full-time worker. A full-time person is therefore counted as one FTE, while a part-time worker gets a score in
proportion to the hours worked.
153 European Commission, The 2020 EU Industrial R&D Investment Scoreboard.
https://op.europa.eu/en/publication-detail/-/publication/73e624aa-406c-11eb-b27b-01aa75ed71a1/language-en
155 Malta - SBA Fact Sheet 2019 , https://ec.europa.eu/docsroom/documents/38662/attachments/20/translations/en/renditions/native
156 Proġetti Mill-Fondi Tal-Eu - Parliament of Malta, March 2021. https://parlament.mt/media/110933/pq18838.pdf
159 The Eco-Innovation Scoreboard and The Eco-Innovation Index, 2019
https://ec.europa.eu/environment/ecoap/sites/default/files/field/field-country-files/eio_country_profile_2018-2019_malta.pdf
161 The Eco-Innovation Scoreboard and The Eco-Innovation Index, 2019
https://ec.europa.eu/environment/ecoap/sites/default/files/field/field-country-files/eio_country_profile_2018-2019_malta.pdf
163 Digital Economy and Society Index 2020, Malta, https://eskills.org.mt/en/news/Documents/2020/DESI2020-MALTA-ENG.pdf
164 As the EU-27 average data was not available, the EU-28 average was used for comparative purpose.
166 Malta: Malta Launches National Artificial Intelligence Strategy, https://www.mondaq.com/technology/855144/malta-launches-national-
artificial-intelligence-strategy
167 Malta Council for Science and Technology (MCST), http://www.mcst.gov.mt/
168 Digital Malta Strategy, https://economy.gov.mt/en/ministry/The-Parliamentary-Secretary/Pages/Malta-Digital-Economy-Vision.aspx
170 EIB Investment Survey, 2020, Malta overview https://www.eib.org/attachments/efs/eibis_2020_malta_en.pdf
171 Ibidem.
172 European Commission, Malta’s recovery and resilience plan, September 2021

https://ec.europa.eu/info/sites/default/files/factsheet-malta_en_0.pdf
173 Ibidem.
174 Housing Authority, https://housingauthority.gov.mt/en/Pages/About%20Us/Mission-Statement.aspx
175 Ibidem.
176 Housing Authority, Private Rent Housing Benefit Scheme. https://housingauthority.gov.mt/en/Pages/Schemes/Housing-Benefit.aspx
177 Housing Authority, Subsidy on Adaptation Works in Residences occupied by Owners or Tenants,
https://housingauthority.gov.mt/en/Pages/Schemes/Subsidy-on-Adaptation-Works-in-Residences-occupied-by-Owners-or-Tenants.aspx
178 Ibidem.
179 A "private residential lease" is defined in the Act as "any long or short private residential lease, including the letting of shared residential
space, which is entered into after 1st January, 2020, and any lease for a residential purpose entered into before the 1st January, 2020, which
would still be in its original or renewed period on the 1st January, 2021."
180 be.legal Advocates, Malta Introduces New Rent Laws Regulating ‘Private Residential Leases’, January 2020. https://belegal.com.mt/malta-
law-news/malta-introduces-new-rent-laws-regulating-private-residential-leases/
181 Mondaq, Malta's New Rental Laws, August 2020. https://www.mondaq.com/landlord-tenant--leases/980622/malta39s-new-rental-laws
182 Housing Authority, Subsidy on Adaptation Works in Residences occupied by Owners or Tenants,
https://housingauthority.gov.mt/en/Pages/Schemes/Subsidy-on-Adaptation-Works-in-Residences-occupied-by-Owners-or-Tenants.aspx
183 Ibidem.
184 Ibidem.
185 Malta National Reform Programme, April 2020, https://ec.europa.eu/info/sites/info/files/2020-european-semester-national-reform-
programme-malta_en_0.pdf
186 Nikru Biex Nassistu Scheme, https://www.servizz.gov.mt/en/Pages/Inclusion_-Equality-and-Social-Welfare/Social-Welfare/Social-
Housing/WEB2038/default.aspx
187 Government of Malta (doi.gov.mt), Press Release by the Ministry for Social Accommodation: Hundreds of families with a roof over their
heads from vacant houses, June 2021.
https://www.gov.mt/en/Government/DOI/Press%20Releases/Pages/2021/June/16/pr211150en.aspx
188 Ibidem.
189 Ibidem.
190 Malta National Reform Programme, April 2020, https://ec.europa.eu/info/sites/info/files/2020-european-semester-national-reform-
programme-malta_en_0.pdf
191 Malta: Malta Government Slashes Stamp Duty As Part Of Post Covid-19 Recovery Plan, https://www.mondaq.com/withholding-
tax/955836/malta-government-slashes-stamp-duty-as-part-of-post-covid-19-recovery-plan
192 Building and Construction Authority officially established, August 2021. https://www.independent.com.mt/articles/2021-08-26/local-
news/Building-and-Construction-Authority-officially-established-6736236240
193 Building and Construction Agency, https://bca.org.mt/about.html
194 Building and Construction Agency, https://bca.org.mt/about.html
195 Building Regulation Act. https://legislation.mt/eli/cap/513/eng/pdf
196 Energy Performance Of Buildings Regulations, https://legislation.mt/eli/sl/513.1/eng/pdf
197 Avoidance of Damage to Third Party Property Regulations, https://legislation.mt/eli/sl/513.6/eng/pdf
198 Draft construction law: Geotechnical design report required, harsher fines stipulated, https://www.independent.com.mt/articles/2019-06-
17/local-news/Draft-construction-law-Geotechnical-design-report-required-harsher-fines-stipulated-6736209665
199 New building rules: Site managers must be architects, excavation works to resume,
https://www.maltatoday.com.mt/news/national/95880/new_building_rules_site_managers_must_be_architects_excavation_works_to_resu
me#.X2tzBWgzY2w
200 Government of Malta - National Post-Pandemic Strategy, June 2021. https://mfer.gov.mt/en/Documents/NPPS%20EN%20Doc.pdf
201 European Commission, Recovery and Resilience plan- Malta, https://eur-lex.europa.eu/resource.html?uri=cellar:4a5b8045-16f2-11ec-b4fe-
01aa75ed71a1.0002.02/DOC_2&format=PDF
202 Government of Malta - National Post-Pandemic Strategy, June 2021. https://mfer.gov.mt/en/Documents/NPPS%20EN%20Doc.pdf
203 Avoidance of damage to third party property regulations in Malta, http://iurismalta.com/avoidance-damage-third-party-property-
regulations-malta/
204 Ibidem.
205 Elios, Liability and insurance regimes in the construction sector: national schemes and guidelines to stimulate innovation and sustainability,
April 2010, http://www.elios-ec.eu/sites/default/files/pdf/Eliosspecialreporton27MemberStates.pdf
206 This includes total investment by the construction and real estate sub-sectors, defined as gross fixed capital formation, i.e. acquisitions minus
disposal, of total fixed assets (e.g. machinery and equipment, vehicles, dwellings and other buildings).
207 This includes total investment (i.e. gross fixed capital formation) in dwellings and non-residential construction and civil engineering by
investors in the general economy (e.g. industry, financial and non-financial services, households, agricultural sector, etc.).
208 The indicator gross fixed capital formation in non-residential and civil engineering refers to the Eurostat indicator «Other buildings and
structures»
209 Malta: Draft Budgetary Plan 2020, https://ec.europa.eu/info/sites/info/files/economy-finance/2020_dbp_mt_en.pdf
210 709 roads rebuilt in three years by Infrastructure Malta, September 2021. https://www.independent.com.mt/articles/2021-09-14/local-
news/709-roads-rebuilt-in-three-years-by-Infrastructure-Malta-6736236715
211 Ibidem.
212 Ibidem

213 First part of Central Link project opens, https://www.independent.com.mt/articles/2020-09-26/local-news/First-part-of-Central-Link-project-

opens-6736227271
214 First new Central Link Project road opening end September, https://www.infrastructuremalta.com/news/first-new-central-link-project-road-
opening-end-september
215 Government of Malta, Launch of the €470 million infrastructure investment programme, November 2020.
https://www.gov.mt/en/Government/DOI/Press%20Releases/Pages/2020/November/05/pr202188en.aspx#
216 Ibidem.
217 European Commission, Malta’s recovery and resilience plan 2021. https://ec.europa.eu/info/sites/default/files/factsheet-malta_en_0.pdf
218 Vocational education and training in Europe, https://www.cedefop.europa.eu/en/tools/vet-in-europe/systems/malta
220 European Commission, Education and Training Monitor 2020- Malta. https://op.europa.eu/en/publication-detail/-/publication/3fe77671-
2496-11eb-9d7e-01aa75ed71a1/language-en/format-PDF/source-171316235
229 Malta’s recovery and resilience plan, September 2021. https://ec.europa.eu/info/sites/default/files/factsheet-malta_en_0.pdf
230 European Commission, National Reforms in Vocational Education and Training and Adult Learning- Malta, September 2021.
https://eacea.ec.europa.eu/national-policies/eurydice/content/national-reforms-vocational-education-and-training-and-adult-learning-
43_en
231 Ibidem.
232 Education and training monitor 2019 – Malta, https://ec.europa.eu/education/sites/education/files/document-library-docs/et-monitor-
report-2019-malta_en.pdf
233 Education and training monitor 2019 – Malta, https://ec.europa.eu/education/sites/education/files/document-library-docs/et-monitor-
report-2019-malta_en.pdf
234 Global Construction Review, CIOB teams up with new Maltese body to professionalise construction management, August 2021.
https://www.globalconstructionreview.com/ciob-teams-new-maltese-body-professionalise-constr/
235 Ibidem.
236 The Chartered Institute of Building (CIOB), https://www.ciob.org/about
237 European Commission, National Reforms in Vocational Education and Training and Adult Learning- Malta, September 2021.
https://eacea.ec.europa.eu/national-policies/eurydice/content/national-reforms-vocational-education-and-training-and-adult-learning-
43_en
238 Ibidem.
239 Malta Chamber of Construction Management, IDEA Academy Construction Management Courses Launch, October 2021.
http://mccm.org.mt/news-
240 Ibidem.
242 E-construct: new training programme focusing on management, ICT in construction industry,
https://www.independent.com.mt/articles/2019-10-25/local-news/E-construct-new-training-programme-focusing-on-management-ICT-in-
construction-industry-6736215265
243 Opinion: Developing competence in the construction industry – Ian Borg, https://timesofmalta.com/articles/view/developing-competence-
in-construction-industry-ian-borg.793067
244 Malta’s 2030 National Energy and Climate Plan, December 2019.
https://ec.europa.eu/energy/sites/ener/files/documents/mt_final_necp_main_en.pdf
245 Ibidem.
246 Ibidem.
247 Energy poverty or ‘fuel poverty’ or ‘energy vulnerability’ occurs when a household experiences inadequate levels of energy services in the
home. Household who suffer from this are called ‘Energy poor households’.
248 Ibidem.
249 Energy Performance of Buildings Regulations, http://www.bro.gov.mt/en/energy-performance
250 Ibidem
252 Ibidem
253 Ibidem

254 Council Recommendation on the 2020 National Reform Programme of Malta, https://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52020DC0518&from=EN
255 Voluntary National Review on the implementation of the 2030 Agenda, 2018,
https://sustainabledevelopment.un.org/content/documents/20203Malta_VNR_Final.pdf
256 European Commission, Commission Staff Working Document, analysis of the recovery and resilience plan of Malta
https://ec.europa.eu/info/sites/default/files/com_2021_584_swd_en.pdf
257 European Commission, Malta’s recovery and resilience plan, September 2021
https://ec.europa.eu/info/sites/default/files/factsheet-malta_en_0.pdf
258 Malta Enterprise, Construction Industry Scheme https://covid19.maltaenterprise.com/modernisation-of-equipment/
259 European investment Fund, Malta: EUR 54.0 million unlocked by Maltese Government with EU fund for over 2000 projects in energy
efficiency and renewable energy
https://www.eif.org/what_we_do/guarantees/news/2020/malta-eur-54-million-unlocked-with-eu-fund-energy-projects.htm
260 Ibidem.
261 EU Single Market Scoreboard in 2020, https://ec.europa.eu/internal_market/scoreboard/_docs/2020/07/member-states/mt_en.pdf
267 Latest available report is of 2017
268 Malta Corruption Report, August 2020. https://www.ganintegrity.com/portal/country-profiles/malta/
269 Public Procurement in Malta 2019, https://www.oecd.org/governance/public-procurement/publications/public-procurement-in-malta.pdf
270 Malta: Public Procurement in the time of COVID-19, https://www.mondaq.com/litigation-contracts-and-force-majeure/911880/public-
procurement-in-the-time-of-covid-19
271 JRC Report EUR 27511 EN, State of implementation of the Eurocodes in the European Union. 2015,
http://eurocodes.jrc.ec.europa.eu/showpublication.php?id=537
272 World Bank Doing Business Report 2020 – Malta, https://www.doingbusiness.org/content/dam/doingBusiness/country/m/malta/MLT.pdf
273 Ibidem.
274 Inward FATS describe the overall activity of foreign affiliates resident in the compiling economy. A foreign affiliate within the terms of inward
FATS is an enterprise resident in the compiling country over which an institutional unit not resident in the compiling country has control.
275 Data unavailable for Narrow construction, real estate and architectural and engineering activities sub-sectors.
279 Cooperate for Growth, http://maltaenterprise.com/support/cooperate-growth
280 Trade Malta, International Trade Promotion Incentive Scheme, January 2021.
https://www.trademalta.org/wp-content/uploads/2021/03/International-Trade-Promotion-Incentive-Scheme-2021-V5.pdf
281 No data is available for the breakdown into production in construction of buildings and production in civil engineering.
282 Ibidem
283 European Commission, Malta’s recovery and resilience plan, September 2021. https://ec.europa.eu/info/sites/default/files/factsheet-
malta_en_0.pdf
284 Malta’s Recovery Resilience Plan 2021,
https://eufunds.gov.mt/en/Operational%20Programmes/Documents/Malta%27s%20Recovery%20%20Resiliance%20Plan%20-
%20July%202021.pdf

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European Construction

European Construction Sector Observatory 2

European Construction Sector Observatory 3

European Construction Sector Observatory 4

European Construction Sector Observatory 5

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Source: Eurostat, 2021. Similarly, in the narrow construction sub-sector,

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of the self-employed in the general economy in manufacturing sub-sectors increased by 211.1%,

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Construction confidence indicator in 2020 Namely, “Marble, travertine, alabaster, etc.”

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Table 1: Five most domestically sold construction Malta EU-27

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Overcrowding rate in 2019 The government is actively involved in upgrading

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Late payment COVID-19, 36.0% of enterprises applied for financial

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Time to Associated them have either been quarantined or repatriated.

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In the 2020 budget, the Maltese government Building regulations

The developer must prove that an appropriate Insurance and liability-related

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Source: AMECO, 2021.

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46 European Commission, Recovery and Resilience Plan for Malta 2021.

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92 World Economic Forum, The Global Competitiveness Report 2019

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213 First part of Central Link project opens, https://www.independent.com.mt/articles/2020-09-26/local-news/First-part-of-Central-Link-project-

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