Overpopulation takes over post-Budget debate on TVM’s Xtra

Overpopulation dominated the first debate following the Opposition's post-Budget rebuttal, with union leaders and business representatives voicing their concerns over Malta’s current economic model and its implications.

“There was a push to grow our economy by expanding our workforce without fully considering the repercussions,” Malta Chamber of Commerce CEO Marthese Portelli said.

On Monday, Opposition leader Bernard Grech delivered a budget rebuttal that heavily criticised the Labour government’s policies, particularly around economic growth and overpopulation. He argued that the government’s reliance on low-income, foreign labour to stimulate growth is unsustainable and leaves the nation vulnerable to socioeconomic pressures, especially as living costs continue to climb.

Speaking on behalf of the Malta Chamber of Commerce, on TVM’s Xtra, Marthese Portelli emphasised that Malta’s 2013 strategy to fuel economic growth by expanding the workforce has led to unforeseen strains on the country. She also said that while eliminating foreign workers entirely from the equation isn’t feasible, the country should prioritise transitioning to a high-value economy.

“It’s essential to shift towards high-value-added policies,” she said, pointing out that the last industry strategy, dating back to 2007-2010, shows how overdue this change is.

Kevin J. Borg from the Malta Employer’s Association echoed these sentiments, highlighting a lack of long-term vision in Malta’s rapid economic expansion.

He described it as “almost haphazard growth, an explosion without sufficient foresight for an end goal”.

According to Borg, this approach contributed to a “productivity deficit”, with rising costs of living and stagnant quality of life. To restore balance, Borg argued, Malta must focus on boosting productivity through improved quality, increased efficiency, and technological advancements, while also investing in skill development.

Meanwhile Josef Bugeja, from the General Worker’s Union, argued that Malta's overpopulation concerns extend beyond foreign workers alone.

“The perception is that overpopulation is only about workers,” Bugeja said, suggesting that tourists and expats who have made Malta their home also play a role.

He argued that Malta needs a unified vision that includes long-term considerations for workforce sustainability, especially with low birth rates and a dependence on foreign labour in sectors such as elderly care, hospitality, and manufacturing.