Traditionally, Malta was considered to be a source country with persons fleeing its shores in hope for better opportunities. In the last two decades, Malta has witnessed a shift in migratory patterns, as it has turned from a country of emigration to a country of immigration (IOM, 2016).
Foreigners are increasingly choosing Malta as an ideal relocation base. This may be because of different factors namely, English-speaking population, easily accessible health care and education, moderate climate, strategic geographical position, and also may be due to the mix of Semitic and European cultures. Additionally, Malta’s accession to the European Union in 2004 resulted in an increase of EU citizens exercising their right of free movement within the EU.
Over the past years, Malta has established itself as a hub for iGaming as well as financial services, with many other promising industries, which offer several business opportunities for entrepreneurs and investors who wish to relocate together with their businesses within its shores. Henceforth, these thriving sectors have been a magnet for foreign workers.
The total population nearly doubled over the past century – resulting in Malta ranking as one of the most densely population states in Europe. In 2014, the Minister of Employment and Education, Hon. Evarist Bartolo, stated, “half of all new jobs created in Malta are being filled by foreigners”.
Malta’s population has been increasing at a fast pace, and when assessing whether this increase stems from natural population growth or migratory flows, it becomes clear that migration is the main driver of such an increase in its population.
It was observed that in recent years, the Maltese economy has had a significant importation of foreign workers, mainly EU citizens. This has corresponded with a rapid expansion of the economy and the emergence of new services sectors. As a result, understanding the effect that migration has had on recent economic developments is of utmost important to evaluate Malta’s macro-economic performance.
Foreign labour has been pivotal in building Malta’s financial services sector and even more so in the remote gaming world. This will also happen in the blockchain industry should Malta truly succeed in being the ‘Blockchain Island’. Therefore, having inward migratory flows is vital if Malta aims to continue climbing the value ladder.
The contribution that foreign workers make to Maltese society is real, dynamic and enriching. But economic migration does not come without its challenges. Data show that profits are growing faster than wages, indicating an uneven distribution of growth, with serious social implications. The affordability of property and rental housing has become a challenge for a growing segment of the population.
The challenges that some cohorts are facing should therefore lead to broader discussion that focuses on the quality, rather than the quantity, of economic growth. Indeed, migration has become one of the most heated topics on the political agenda. Consequently, the need for informed debate – both on an international level as well as specifically in the Maltese context – has never been more vital.
