A nine-fold increase in non-EU workers has been registered in the last decade during which the Maltese economy expanded at an unprecedented rate albeit at the cost of becoming highly dependant on foreign workers.

It transpires that in 2013, there were 18,691 foreign workers registered in Malta of whom 6,410 where from outside the EU (third country nationals). However, by June 2023, the demographic of the country’s workforce had changed beyond recognition as foreign workers rose to 104,439 which translated to a fourth of the native Maltese population. The biggest spike was registered in TCNs who rose to 67,531, mostly from East Asian countries.

Data tabled in Parliament recently shows that the biggest cohort comes from India with 12,756 followed by the Philippines 8,434 and Nepal 7,850. Up to 2013 workers from some of these countries – which have absolutely no historical or political connection with the Maltese Islands such as Nepal – were practically inexistent. As a matter of fact in the case of Nepal, their population increased from just 5 workers to 7,855 in June 2023. This region along the Himalayan Mounties proved to be fertile ground for Maltese employers seeking to recruit foreign workers, as a similar spike was recorded in the number of Indians in Malta with a spectacular rise from 251 in 2013 to 12,756 in 2023.  Similarly, during the period under review Pakistani workers rose from 172 to 1948. These figures were tabled by Finance Minister Clyde Caruana in reply to a question from Opposition MP Julie Zahra.

While employers as well as the government have insisted all along that this influx was necessary to sustain a certain level of economic growth which in turn generates enough revenue to keep Malta’s finance afloat, there are signs that Malta cannot sustain such economic policy any longer. These concerns stem from social, economic and demographic perspectives. Economists are warning that Malta is finding itself in a catch 22 situation whereby it depends on these foreigners to sustain economic growth above the 3% level, as otherwise there could be a collapse of public finances and consequently healthcare, and the welfare system. On the other hand, this influx is creating a huge strain on the country’s infrastructure mainly traffic, housing, healthcare and overdevelopment.

Faced by mounting criticism that the situation was getting out of hand, the government which until recently would not acknowledge the issue, is trying to mitigate the situation through various means.  Apart from sporadic raids which are yielding dozens of foreigners residing in Malta illegally, the government has embarked on a reform of the temping agencies. The latter have mushroomed over recent years and are behind a thriving industry relying on the importation of thousands of TCNs. In a recent interview, the head of the agency responsible for handling residency and work permits, Identita Malta admitted that these agencies were going for numbers, as if these workers were just a commodity in a shop window. Such approach has also fuelled concerns of exploitation, exorbitant fees and at times claims that TCNs are being conned into paying thousands only to find out they have no job when they land in Malta.