Malta has slipped to 35th places in the Forbes list on the Best Countries for Business, from 30th place last year.
Malta ranked top for personal freedom, but in 112nd place for red tape.
The Forbes Best Countries for Business report ranked 146 countries. Denmark emerged as the best country in the world for business, a return to the top spot it enjoyed for three consecutive years between 2008 and 2010.
Hong Kong and New Zealand occupied the second and third positions.
How Malta fared
Trade freedom - 9
Monetary freedom - 38
Property rights - 25
Innovation - 44
Technology - 21
Red tape - 112
Investor protection - 50
Corruption- 39
Personal freedom - 1
Tax burden - 25
Market performance - 76