Business lobbies demand changes in Budget measures on TCNs – warn of economic fallout

Four leading business organisations have escalated their objections to Budget 2027 measures targeting third-country nationals, joining forces to demand that the government reconsider their implementation and warning of higher prices, business instability and damage to competitiveness.

The Malta Chamber, the Malta Hotels and Restaurants Association, the Malta Chamber of SMEs and the Malta Employers’ Association said the measures were announced without prior stakeholder consultation or a comprehensive socio-economic impact assessment.

Their joint intervention turns separate criticisms issued after Monday’s Budget speech into coordinated pressure on the government to rethink its approach.

The organisations had already warned about rising employment costs, labour shortages and inadequate support for productivity. Their latest statement goes further, explicitly withholding support for decisions they describe as rushed and questioning the government’s motives.

“These measures give the impression of a Government urgently seeking fresh revenue to honour its electoral commitments,” they said.

The package includes higher work-permit application fees, an annual €400 infrastructure contribution for new applications and renewals, and restrictions on free public transport and childcare for affected TCNs.

The organisations argue these costs could undermine business continuity across several sectors, leaving employers under pressure to absorb additional expenses or pass them on to consumers.

They also warn that absorbing the increases would restrict the capital available for investment in productivity – the transformation the government says it wants businesses to undertake.

The statement does not reject tighter management of labour migration. The organisations reaffirm their support for the national Labour Migration Policy and an economy built around higher productivity rather than increasing labour volumes.

They also challenged the government to address its own operations, calling for a comprehensive review across ministries, departments and public entities to eliminate duplication, reduce bureaucracy and contain recurrent spending.

Further public-sector recruitment, they argue, places additional pressure on workers available to private enterprise.

The joint statement stops short of demanding the wholesale withdrawal of the TCN package. It calls instead for reconsideration of implementation and genuine negotiations with social partners.