Malta has to move from uncontrolled population growth to planned, needs-based population management, Nationalist Party MP and Finance spokesperson Graham Bencini said.
He was replying to questions by The Malta Independent on Sunday regarding what serious steps the PN would take to begin tackling over-population and the country's economic setup.
Bencini remarked that "it is a fact" that the government's economic growth model "relies heavily on population growth, especially through foreign labour in low-wage industries".
The PN MP said that the first thing that needs to be done is to launch a study determining how many people the country can sustainably support based on available housing, land and water, as well as factors such as traffic, energy demand, healthcare services and other public services. "It is pointless talking about overpopulation if we do not have a factual study in hand to determine these key indicators," he commented.
Bencini stated that once it is known how many people the country can support with a good quality of life, "we can then start to identify and potentially forecast where local skills can meet demand, and where foreigners are genuinely needed". He continued that the move to planned, needs-based population management must be done in tandem with a focus on rebuilding Malta's local skills base and shifting to a new economic model.
Additionally, he said that there needs to be a comprehensive labour migration policy which supports the new economic model and highlights the sectors where foreign workers are needed, as well as how to balance local job protection with labour shortages, how to protect foreign workers from exploitation, and long-term demographic planning, among other factors. He added that the PN is currently working on its own document in this regard after having participated in the public consultation process related to the government's labour migration policy.
The Malta Independent on Sunday asked Bencini what some concrete policies would be implemented by the PN with the aim of shifting Malta's economic direction, with the PN having repeatedly emphasised its intention to implement a quality-focused economic model which is not reliant on importing foreign labour.
Responding to this, the PN MP said that the PN's intentions are not just about reducing the number of foreign workers, but that the aim is to elevate the country's economy so that Malta stops depending on population growth "and instead thrives through productivity, innovation and sustainability".
He remarked that the PN will do this in a number of ways, as a start focusing on rebuilding Malta's local skills base. He continued that this will be achieved by investing in education, "especially in vocational and lifelong learning schemes".
"We need to move from employer-driven mass migration to needs-based, regulated and strategic migration, and we can do this by starting to link migration to infrastructure capacity and reduce the dependence on foreign labour by upskilling our local skills base," he said.
Bencini said that workers can be successful in adapting to a changing economy and staying competitive in their particular field by continuously learning and developing their skills, as he continued that in this way, workers will be equipped with the necessary skills to succeed in high-demand sectors such as ICT, financial services, healthcare, social care, creative industries, hospitality, and more. He added that Malta must prioritise high-value economic sectors such as financial technology, cybersecurity, artificial intelligence and medical technology, among others.
Bencini added that this is what the PN means when it says that there needs to be a switch from a quantity-based economy to a quality-based economy. "If we remain dependent on labour-intensive industries, then we are certainly not going to address the issue of dependence on the importation of foreign labour," he commented.
The PN Finance spokesperson stated that another matter is that Malta's reputation and attractiveness need to be enhanced. He said that this is important because one cannot build a sustainable high-value economy less reliant on importing labour unless the country becomes a place where responsible investors want to stay and invest in.
"Unfortunately," he said, "our attractiveness has reduced drastically over the last 10 years, as stated in the last Malta Attractiveness Survey."
The latest edition of the annual EY Malta attractiveness survey, in 2024, indicates that 54% of surveyed companies believe that Malta is attractive for foreign investment, down from 59% in 2023, and down from 84% 10 years ago in 2015.
Bencini believes that addressing Malta's reduced attractiveness for foreign investment is critical. He said that addressing it "will be achieved by improving governance and transparency, simplifying bureaucracy, investing in our digital infrastructure, promoting a level playing field for all, and investing in our local skills base". He remarked that a good reputation is ultimately built by creating a culture of consistent delivery, transparency and accountability at the highest level.
The PN MP was asked whether Malta's existing infrastructure would be able to cope or operate effectively if there were a decrease in imported labour.
"If imported labour is stopped abruptly without preparation and planning, then we will certainly face severe difficulties, as things stand today. Failing to plan is planning to fail," he replied.
Bencini stated that if the necessary reforms are carried out, and there is a strategic plan for a reduction in imported labour, then he believes that the infrastructure would be able to operate effectively. He continued that the key is strategic planning to determine which sectors would suffer the most if foreign labour had to be reduced, "to upskill our local workforce to ensure that any gaps left in certain critical roles would be seamlessly filled, to focus on technology and automation, to carry out the necessary economic reforms to move us away from a quantity-based economy to a quality-based one and to manage our population sensibly".