The Association of Temping and Outsourcing Agencies (AFTA) welcomes several initiatives outlined in Budget 2027, particularly those aimed at addressing the pressures brought about by Malta’s rapid economic and population growth.

Managing growth sustainably — but not with a one-size-fits-all approach

We recognise the increasing strain on infrastructure, housing and public services, and support the principle of managing population growth sustainably. However, sustainability cannot be achieved through a one-size-fits-all approach.

Malta’s demographic realities cannot be ignored

With one of the lowest birth rates in Europe, an ageing population and one of the lowest unemployment rates, third-country nationals remain essential to our economy and the delivery of everyday services.

Different industries face different challenges

What may work for one sector could have serious consequences for another. Labour migration policies must reflect these differences rather than impose blanket measures.

Productivity is not a magic wand

AFTA strongly encourages investment in productivity, innovation, automation, upskilling and, above all, quality investment that creates greater economic value. However, let us not fool ourselves. Productivity is not a magic wand that will suddenly reduce Malta’s dependence on foreign workers or solve the challenges associated with population growth. While greater efficiency is essential, labour-intensive industries will continue to require people. Our demographic realities make this unavoidable.

The narrative around foreign workers matters

We must also be mindful of the narrative surrounding population growth. We cannot celebrate the economic contribution of foreign workers while allowing their presence to be portrayed as a problem. It is equally important that public discourse does not fall into rhetoric that fuels prejudice, division or racism. Legitimate discussions about sustainability must never come at the expense of respect for the people who contribute to our economy and society.

The way forward: targeted, evidence-based policy

AFTA believes the way forward lies in targeted, evidence-based policies that encourage employee retention, promote long-term workforce stability and reduce unnecessary labour turnover, supported by stronger enforcement and meaningful consultation with stakeholders who understand the realities of the labour market.

The right workforce, under the right conditions

Sustainability is not simply about managing how many workers enter Malta, but also about creating the conditions for those already contributing to our economy to remain, develop and build a stable future. The objective should not simply be fewer workers, but the right workforce, under the right conditions, to sustain Malta’s economy.

AFTA remains committed to working constructively with the Government and social partners towards a balanced, responsible and sustainable labour migration framework.