National Productivity Board
The National Productivity Board, set up in February 2019, diagnoses and analyses productivity and competitiveness in Malta. In Malta’s case, the Board falls under the remit of MCESD.
The analysis takes into account the euro area and EU aspects and addresses the long-term drivers and enablers of productivity and competitiveness, including innovation, and the capacity to attract investment, businesses and human capital.
It also addresses cost and non-cost factors that can affect prices and quality content of goods and services including those relative to global competitors in the short term. Such an analysis is based on transparent and comparable indicators. The Board will engage in the independent analysis of policy challenges in the field of productivity and competitiveness and assess the effects of policy options, making trade-offs of policy explicit.
The Board is composed of 11 members, comprising of a Chairperson and 10 other members. The Chairperson of the Malta Council for Economic and Social Development (MCESD) is ex officio and acts as the Chairperson of the Board.
The other 10 members comprise of a senior official nominated by the Minister for Finance, a member nominated by the Governor of the Central Bank of Malta, four members nominated by the workers’ organisations constituted bodies sitting in the Council, and four members nominated by constituted bodies representing national employers’ organisations forming part of the Council. The National Productivity Board is also tasked with the preparation of the annual report.
The Board fulfilled the objectives of the EU Council recommendation in relation to the National Productivity Boards, as well as the diagnosis and analysis of productivity and competitiveness-related developments in Malta and Gozo.
The MCESD will be organising a conference to present the findings emanating from the annual report to all stakeholders. I would like to conclude this introduction by congratulating Minister Carmelo Abela as the new Minister responsible for Social Dialogue, Sustainable Development and the Implementation of the Electoral Manifesto.
MCESD wholeheartedly thanks Minister Edward Zammit Lewis and Minister Aaron Farrugia for their sterling work and for their cooperation during the their previous tenure.
Executive Summary 2021
The MCESD has published “The National Productivity Report 2021”. This report focuses on the role of the digital transformation as a tool that can foster productivity gains leading to improved economic outcomes and to a higher quality of life.
The report presents the outcomes of the Digital Transformation readiness Index. This index was rolled out amongst a a representative sample of firms in Malta in order to gauge the readiness of these firms to implement and reap the benefits of transformation.
Based on the results, the report presents a holistic policy framework to support a digital Malta which will enable the country to achieve higher productivity.
The results highlight very specific gaps in Malta’s digital ecosystem as well as in the readiness of companies across sectors, particularly the low-productivity ones, to truly embrace and internalise digital transformation.