I’ve great respect for Marisa Xuereb who was President of the Malta Chamber of Commerce and I find her as a decent spokesperson for the business community, but she is wrong on the minimum wage and there is no evidence that shows that increasing the minimum wage in Malta would increase basic prices of goods. Inflation in Malta, especially in the past few years has been an externality problem.
Inflation has sped through in Malta with property prices going up by more than 100% in the past 10 years and wages increasing by only 25% in the same period. Basic prices of goods have increased by at least 25% in the same period. There are no excuses for keeping the minimum wage in Malta at miserable levels.
Cheap labour is also slowly becoming a thing of the past. Technology is increasingly reducing the need to employ jobs which require little skill and effort. Businesses whose model is based on cheap wages should slowly die rather than be kept alive with artificial government subsidies and a cheap labour system and this is a good thing in capitalism.