The Malta Chamber of Commerce says the influx of migrant workers Malta has experienced has contributed very marginally to our skills pool.

Answering questions by The Malta Independent on Sunday, the chamber said Malta's economic growth has been sustained by bringing in more people and not by increasing productivity.

This response comes after Prime Minister Robert Abela's expressed the government's position regarding third-country foreign workers, saying that they will only be invited to work in Malta if their sector of work has genuine need for them.

During his parliamentary speech the PM also said that the government will not permit situations where employers believe it is better to employ foreigners in order to keep the wages of Maltese and Gozitan workers low. He also said that it will no longer be permissible for certain businesses to have consistent turnover of foreign workers, and that emphasis will be placed on training and investing in the skills of workers.

The Malta Chamber of Commerce acknowledges the government's intention to work on establishing a clear economic labour migration policy.

"Over the past years, The Malta Chamber has repeatedly emphasised on the importance of having a clear direction on the country's vision supported by thorough analyses of infrastructure requirements and human resources capacity," it said in its written response.

In August 2021, The Malta Chamber published a policy document with over 55 recommendations titled National Workforce Strategy outlining how to nurture, attract, retain and upskill talent so as to boost productivity and increase the added value provided by the workforce.

Our economic growth has been sustained by bringing in more people and not by increasing productivity and that the influx of migrants Malta has experienced has contributed very marginally to the skills pool, the chamber said.

"We must reverse this trend - shifting the focus from input growth to productivity growth is crucial for long-term economic sustainability and well-being. Lagging behind on our potential productive utilisation can have detrimental effects on the economy and society - it will hinder economic growth, reduce competitiveness for businesses and limit both job creation and wage growth. Inefficient resource usage leads to waste and higher costs, while a lack of innovation and investment in technology further stifles long-term growth. As a way forward, it is crucial to prioritise productivity improvements through innovation, technology adoption, efficient resource allocation and attracting the right foreign talent to unlock the country's full potential of productive utilisation."

Given our tight labour market and evident skills gaps, many businesses and industries cannot survive, let alone thrive, without foreign workers supplementing the local workforce. But TCNs are not a sustainable solution. The country needs to overhaul the education system and implement automation strategies to complement our workforce. Additionally, there should be a strategic offering for highly-skilled non-EU citizens to fill qualitative skill gaps, with clearly defined eligibility criteria, including high salary thresholds.

The Chamber is also advocating for a skills forecast, which it said is very "crucial".

"It is important that the labour migration policy is thought out well and communicated with the business community well in advance of any intended changes, so as to avoid unwarranted sudden shocks."

In its latest 2025 pre-Budget proposals and other self-published policy documents, the Malta Chamber has reiterated the importance of moving away from dependence on low-cost labour

"To curb the high annual influx in the short-term, the focus should be on attracting foreign workers that increase our value add as well as foreign workers to support the country's demands in respect of essential services and specific sectors."

The chamber also replied on the poor productivity in the country, where it is urging among others, the importance to invest and improve the schemes for upskilling the workforce coupled with embracing technological solutions for automation. It said that these strategies will not only complement our workforce but more importantly render it lesser labour-intensive with deriving productivity gains. For instance, government grants should focus on improving productivity through automation with a stronger company culture change management instead of increasing jobs.

"Both the public and private sectors need to rationalise resource use. Overstaffing in government agencies and the poaching of private-sector employees by the government exacerbate the challenges faced by the industry, directing it to seek alternative options, like importing labour," it said.

In conclusion it said that the labour migration policy must also align with Malta's upcoming and long-awaited Industrial Policy and it should serve as a strategic element of Malta's Vision 2050.

"We also need to keep in mind that global accessibility of inexpensive labour means investing in skills, knowledge, technology and innovation is crucial, as businesses cannot compete on low labour costs alone."