Malta's growing reliance on third-country nationals (TCNs) has once again brought migration, workers' rights and social inclusion into the spotlight, particularly following the government's decision announced in the budget for 2027 to withdraw certain benefits from foreign residents who do not meet specific residency requirements. But what would Malta look like if its foreign workforce were to leave, and who stands to benefit or lose from policies aimed at reducing the number of TCNs coming to the island?
Speaking to The Malta Independent on Sunday, Industrial Relations and Human Resources Consultant Gejtu Vella and Sociology Professor Michael Briguglio offered their perspectives on the economic and social implications of the government's approach.
Asked what Malta would look like if TCNs were to leave tomorrow, Vella said that essential sectors including hospitality, construction, healthcare, cleaning, transport and retail rely heavily on TCNs. The sudden departure of TCNs could delay construction projects, disrupt services and force some businesses to reduce opening hours or close. Subsequently, labour shortages and disruption to businesses could lead to higher prices for goods and services.
Moreover, the impact would extend beyond the economy. TCNs are also parents, students, friends and neighbours who have established lives and become part of Maltese communities. The departure of TCNs might reduce pressure on housing and infrastructure, but these potential benefits would need to be weighed against the economic and social consequences. The central question is whether Malta could replace the labour and skills currently provided by TCNs. Vella said that policies should consider Malta's infrastructure and social needs while recognising the contribution of foreign workers to the country's economic and social development.
Briguglio agreed that Malta's economy and society rely heavily on TCNs, with their contribution extending beyond the labour market to everyday social life. Many Maltese families depend on third-country nationals to provide assistance and care. TCNs also provide essential services and participate in Malta's social life. Their departure could affect families relying on them for care and assistance, alongside the wider economy. That being said, Briguglio emphasised that the prospect of a mass exodus remains purely hypothetical, and cautioned against assuming that a substantial number of TCNs would leave Malta as a result of the Budget measures.
Vella said that restricting public benefits based on nationality or immigration status raises questions about which residents are considered deserving of support and inclusion. Withdrawing benefits could reinforce the perception that migrants are temporary residents whose place in Malta is conditional, despite their contributions to the country. Policies that prioritise citizens over migrants risk increasing feelings of exclusion, insecurity and unequal treatment among migrant communities. Furthermore, restricting benefits according to nationality may reinforce the idea that access to social support should depend on citizenship rather than wider social participation and contribution. The issue concerns integration, fairness, social cohesion and the relationship between migrants and public institutions. Vella highlighted a tension between recognising migrants as members of the communities they help sustain and valuing them primarily for their labour.
According to Briguglio, Finance Minister Clyde Caruana has argued for an economic model that relies less on increasing the number of workers and more on capital-intensive activity. The government also argued that users should contribute towards the costs they generate. These include infrastructure, traffic congestion, hospital queues and other public services. This argument has also been applied to tourism. The withdrawal of benefits could also help the government meet rising expenditure and its fiscal targets, including those relating to the EU's deficit and public debt rules. That being said, Briguglio questioned whether the intended outcomes will be achieved and stressed the need to assess the policy's wider consequences, not just its financial effects.
Vella argued that public policy should recognise that many TCNs are becoming long-term members of Maltese society. Many spend years living and working in Malta rather than being temporary workers. TCNs pay taxes and social security contributions, rent or buy homes, raise families and establish social connections within their communities. Their role in society goes beyond filling labour shortages and contributing to the economy. Vella argued that policies should reflect the reality that people who contribute to Malta over many years also need stability, well-being and opportunities to participate in community life. Treating long-term residents as temporary workers can create exclusion, Vella said, and this could undermine their sense of belonging and make integration more difficult. On the contrary, policies that support integration and inclusion could help build a society in which migrants have a fair opportunity to participate.
Briguglio identified an "integration trap" as a major weakness in the Budget policies. TCNs who have lived in Malta for several years but have not yet qualified for long-term residence could find themselves excluded from certain benefits despite already having established lives on the island. Moreover, some migrants want to settle permanently in Malta but remain ineligible for long-term residence. They may have been living here for two years, for example, and already have plans to raise families, send their children to Maltese schools or build relationships with Maltese citizens. Some TCNs are not simply passing through Malta but want to contribute more and become long-term members of the community.
Asked who stand to win and lose from these measures, Vella said that some Maltese workers could benefit from reduced competition for jobs. Limiting the inflow of TCNs could ease competition in certain sectors and potentially improve employment opportunities for local workers. On the contrary, some businesses could face labour shortages. Employers who rely on foreign workers may struggle to fill vacancies, potentially affecting their operations and productivity. Moreover, TCNs could lose employment opportunities and income. Reduced incentives to come to Malta could limit opportunities for foreign workers seeking employment and a better livelihood. Vella noted that the government's approach has attracted criticism from several stakeholders. These include trade unions, employers' organisations, NGOs, the Church Commission and the National Commission for the Promotion of Equality (NCPE).
Similarly, Briguglio also pointed out that some organisations, including Moviment Graffitti, the Church and the General Workers' Union, have raised concerns based on social justice, human dignity and workers' rights. However, he said that some employers criticising the policy may have conflicting interests. Briguglio questioned the position of businesses that have profited from recruiting TCNs, renting them accommodation and employing them at low wages, while now expressing concern about the measures. Briguglio argued that certain employers could be concerned about losing profits rather than solely about migrants' welfare. Regarding who stands to lose from this policy, Briguglio said the biggest losers could be low-paid TCNs who cannot afford the additional costs. Those who are already struggling financially and working in precarious conditions could be disproportionately affected.