PN Shadow Minister for the Economy, Technology and Strategic Projects Darren Carabott has called for Malta to shift towards an economy driven by productivity, skills and innovation rather than continued growth in the size of its workforce.
Carabott said Malta should make productivity a national economic priority, arguing that the country must create more value from every job, business and hour worked while reducing its reliance on continuously increasing the number of workers.
He said the aim should be a more productive economy, more competitive businesses, better wages and an improved quality of life for Maltese and Gozitan families.
His comments come after economic analysis, including that of the Malta Fiscal Advisory Council, continues to highlight the importance of productivity to Malta's future economic development.
Carabott also acknowledged that Fitch Ratings recently affirmed Malta's A+ rating with a stable outlook but questioned what the country's next economic step should be.
He argued that economic success should not be measured solely by the size of economic growth, saying that productivity, the creation of quality jobs, real wage growth and improvements in people's quality of life should also be considered.
"In recent years, a significant part of Malta's economic growth has been sustained by a sharp increase in the number of people in the labour market, including through foreign workers who now contribute to various sectors of our economy," he said.
Carabott said the next stage should involve allowing businesses to grow without having to increase their workforce at the same rate.
The PN said greater productivity would allow businesses to offer better wages while remaining competitive, while also creating more opportunities for quality employment and reducing the pressure that population growth places on infrastructure, traffic, housing and public services.
The PN also reiterated its proposal for the establishment of a Population Levels Authority and a Population Levels Plan for Malta, which would set out the action needed to change the country's economic direction with input from experts.
Carabott said productivity should become one of the main pillars of Malta's economic policy over the coming years.
He called for an economic environment that encourages businesses to invest in technology, digitalisation and automation, while making innovation an integral part of business growth and helping Maltese companies expand internationally.
He also stressed the need for a stronger connection between education, training and the needs of the economy.
Workers, he said, should have opportunities to develop their skills throughout their careers, while younger generations should be prepared for jobs and sectors expected to drive the economy in the future.
Carabott also called for greater ambition in attracting and developing economic activities that generate higher added value, greater knowledge and quality careers.
"Productivity should be the bridge between economic growth and a better quality of life," he said.
"When a worker is more productive, there is greater scope for better wages. When a business is more productive, it can compete, invest and grow."
Carabott said Malta should no longer aspire simply to have a larger economy, but to build a better one based on knowledge, skills, innovation, technology and enterprise.
He said that the country must begin building the economic model it will need over the next 10 to 20 years, saying Malta could no longer afford to waste time in making the transition towards productivity-led growth.