AFTA Welcomes Family-Friendly Budget But Urges Responsible Approach To Labour Market

The Association of Temping and Outsourcing Agencies (AFTA) welcomes the 2026 Budget speech delivered yesterday by Finance Minister Clyde Caruana, which reaffirms Malta’s commitment to economic stability, social protection, and business confidence.

At a time when several European economies are responding to inflationary pressures by introducing new taxes and cutting public expenditure, Malta is taking a markedly different, stability-focused approach.

This approach is made possible by Malta’s resilient economic performance and positive growth outlook. The business community has continued to invest and adapt despite ongoing global challenges. AFTA also highlights the important role of foreign workers, who have supported Malta in meeting essential labour market needs, sustaining economic activity, and contributing to the long-term sustainability of the pension system.

Looking ahead, Malta faces a demographic reality characterised by continued economic growth, an ageing population, and persistently low fertility rates. Against this backdrop, AFTA strongly recommends a measured and evidence-based approach to labour market planning—one that avoids rushed or populist decisions, whether in the form of drastically reducing the number of third-country nationals or creating unnecessary barriers for the very workforce Malta critically needs across multiple sectors.

Instead, AFTA urges authorities to focus firmly on strengthening enforcement and eliminating rogue employers who undermine fair competition and exploit both Maltese and foreign workers. Ensuring a well-regulated, ethical labour market is key to protecting standards and sustaining long-term growth.

“This Budget provides welcome stability for families and businesses alike,” said an AFTA spokesperson. “However, foreign workers have been essential to the country’s success, and policy decisions affecting them must remain pragmatic, data-driven, and focused on eliminating abuse rather than reducing opportunity.”

AFTA remains ready to collaborate with government and stakeholders to ensure Malta continues to grow in a responsible, competitive, and inclusive manner.

#MaltaDaily