The happiness level was measured based on factors including GDP per capita, social support, healthy life expectancy, freedom to make life choices, generosity, and absence of corruption.
This marks a substantial decline for the country, with the report finding that there has been a steep drop in overall life satisfaction and happiness over the last decade.
When compared to last year's report, Malta remains in 22nd in place, and is ranked as the 12th happiest country in the European Union.
With its continuing upward trend in average scores, Finland consolidated its hold on first place, ahead of an also-rising Denmark in second place.
Nordic countries dominated the top 10 with Denmark coming in second place.
The report was released by the Sustainable Development Solutions Network for the United Nations on March 20 which has was declared as World Happiness Day by the UN General Assembly in 2012.
The 'Full Worm Supermoon' marks the start of spring this week
NASA also revealed Asteroid 2019EA2 will shoot pass Earth around the same time - and will be closer to us than Moon when it does. If the skies are clear in your area, the moon's enhanced size and brightness level should be pretty obvious.
While the United Kingdom did not make the top 10 it did manage to make the top 20 in the list. Nevertheless Israel remains ahead of such countries as the United Kingdom (15), Germany (17) and the U.S. (19).
"What stands out about the happiest and most well-connected societies is their resilience and ability to deal with bad things", Helliwell told CNN.
The compulsive pursuit of substance abuse and addictive behaviors is causing severe unhappiness.
Languishing at the unhappy end of the spectrum was conflict-ridden South Sudan, preceded by Central African Republic, Afghanistan, Tanzania and Rwanda.
Finland is once again the world's happiness nation.
This coincided with a rise in negative feelings "comprising worry, sadness, and anger, especially marked in Asia and Africa, and more recently elsewhere", it said.