Upon graduation, in 1997 Muscat was employed as investment adviser by the Malta External Trade Corporation (METCO) and soon after joined as market intelligence manager the newly established Institute for the Promotion of Small Enterprise (IPSE) under the Malta Development Corporation (MDC) headed by Mario Vella; as he himself noted in his PhD thesis, in this post Muscat was effectively considered a political appointee and a person of trust of the ruling party. This situation made it harder for him to retain the confidence of the management after the return in power of the Nationalist Party in 1998 and the departure of Mario Vella from the MDC. He stayed in the position till 2001.