Malta's economy has come on in leaps and bounds over the last two decades. Foreign direct investment has been a key driver of growth. The new sectors that have sprung up over this period; iGaming, financial services, pharma and aviation maintenance to name a few, now employ significant proportions of the Maltese labour force. They have also contributed to a burgeoning professional service sector of accountants, consultants and lawyers.

The country's attractive fiscal regime, access to the EU market, a strong legal framework, social, political and economic stability, and a skilled, English-speaking labour force have been the key drivers behind this investment.

However, the country cannot rest on its laurels as it looks ahead. Our workforce has now become a limiting factor; ironically, as a consequence of success. With rampant economic growth, the capacity to find the required skills locally is diminishing. This challenge is highlighted year-in, year-out by respondents to EY's Malta Attractiveness Survey, an annual perception survey carried out by EY among senior leadership of foreign owned companies operating in Malta.

The pressing need to address this challenge has become more acute given the record low levels of unemployment. As always, the how is the hardest question to answer. Perhaps as a general rule we should focus more sharply on increasing labour supply where it is most needed and doing so in closer alignment with the requirements of the higher valued-added and knowledge based sectors.

In addition, we should be more focused on being at the cutting edge of technological developments that enhance our competitiveness.

Making this challenge more acute is the fact that the level of education required by investors is on the rise.

Malta's HR challenges will be a key focus area at EY Malta's Attractiveness Event on 25 October entitled "Thinking without the box: technology, disruption and FDI". The event will reveal the findings of this year's survey, and identify whether Malta's HR challenge has become even more acute. A breakout session titled 3 million people? Malta's HR challenge will debate the realities of the challenge faced, and discuss concrete policy actions to tackle this issue head-on, without further delay.

The conference will explore whether we need to systematically and intelligently attract foreign workers to sustain current economic growth. Speakers will also explore whether Malta's youth are successfully gaining the skills needed to transition from education-to-employment. And with innovation occurring at such an unprecedented rate, how should the country educate its youth and develop its education systems with subjects and skills for a world of digital disruption?

A new wave of technological innovation - a Fourth Industrial Revolution - will bring radical change to industries and labour markets worldwide. The conference will explore what skill-sets are going to be needed five years' time, as artificial intelligence and robotics becomes mainstream. Critical-thinking, problem-solving, creativity, data-science, robotics and coding are likely to be among them.

Although there are many concerns globally that robots will take workers jobs, these technologies may actually be a blessing for Malta. With labour in short supply, these new technologies may enable workers' throughput and output to amplify, allowing companies to expand even if they cannot find all the workers they need. While some job roles may become redundant over the next 10 years, other new value added roles will be created instead of them. Malta therefore needs to start exploring how life-long training can be introduced to re-skill elements of its workforce with some new skills that may be needed tomorrow.

 

For more information on EY Malta's Annual Attractiveness Event and to register visit www.eymaltaattractiveness.com

 

Simon Barberi is a Director at EY Malta focusing on EU affairs and FDI