Morning Briefing
Finance Minister says government ignored 300-page warning on population growth
Finance Minister Clyde Caruana says he warned the government in 2018 that Malta’s rapid population growth would place increasing pressure on housing, hospitals, schools and roads, but his concerns were ignored. Speaking in a post-budget interview, Caruana said he had spent a year preparing an almost 300-page report after then prime minister Joseph Muscat asked him to examine the country’s demographic and economic trajectory. The report forecast many of the challenges Malta is experiencing today, he said, adding that he eventually raised the prospect of the population reaching 800,000 by 2040 to force public attention onto the issue. Caruana defended new charges imposed on third-country nationals, arguing they would discourage businesses from relying on cheap labour and encourage investment in technology, artificial intelligence and automation. He said Malta needed to increase productivity rather than continue expanding its workforce. (Times of Malta)
Opposition leader calls for productivity-driven economy as workforce expansion accounts for most growth
Opposition leader Alex Borg has called for a gradual shift towards a productivity-driven economy, warning that Malta cannot continue relying on an expanding workforce to sustain economic growth. Speaking on Sunday, Borg said almost 70% of the 82% increase in gross value added between 2015 and 2025 was attributable to an increase in workers, while only 3% came from productivity gains. He also highlighted the slowdown in productivity growth, which fell from 2.2% in 2023 to 0.2% in 2024 before turning negative in 2025. Borg identified productivity, skills shortages, wages and tourism as four major challenges requiring long-term planning. He cited an EY survey showing that 79% of foreign investors struggled to find specialised skills and said 42% of SMEs considered labour shortages a major problem. He proposed greater investment in automation, digitalisation, artificial intelligence and specialised education, alongside better workforce planning.(Maltatoday)
Archbishop says foreign workers must never be treated as second-class human beings
Archbishop Charles Scicluna has called for greater respect for the dignity of foreign workers, warning that society cannot honour those who died defending Malta while remaining indifferent to the treatment of people living and working in the country today. Delivering his Remembrance Sunday homily, Scicluna said that although third-country nationals may be classified as such under the law, “no one is a third-class human being in the eyes of God”. He recalled that almost 6,000 Commonwealth servicemen and women from Britain, Ireland, Australia, New Zealand, Canada, India, Africa and elsewhere are buried or commemorated in Malta. Many arrived as strangers but became part of the country’s history, he said. The Archbishop urged society to remember their sacrifices by resisting prejudice, hatred and indifference, and recognising the dignity of vulnerable people, those excluded from society and those far from home. (Newsbook)