The Impact of Brexit on Maltese Firms – Insights from a Survey with Local Non-Financial Corporations

This study aims to assess the impact on Maltese firms following Brexit through a survey with non-financial corporations (NFCs). This survey was designed to collect information regarding the impact of Brexit on firms’ operations, costs and trade patterns following Brexit. Responses were received from 96 firms that were selected using quota sampling covering four sectors of economic activity (construction and real estate, manufacturing, wholesale and retail trade, and services) and three firm sizes (small, medium, and large firms). Slightly more than half of the respondents stated that they were not impacted by Brexit while the remaining companies noted that the impact of Brexit on their company was either negative or very negative. Only 1% reported a positive impact. Negative impacts were more often cited by small and medium sized firms and by manufacturing and wholesale and retail firms. The most common effects mentioned were increases in costs and regulations, longer lead times and lower availability of inputs and demand. As a response to such impacts, over half of the companies decreased their imports from the UK, while only around a tenth of surveyed companies reduced exports. Some firms also increased selling prices. The majority of companies kept marketing efforts, investment plans and employment levels unchanged.