Malta’s declining birth rate and its long-term economic implications have once again come under the spotlight, with leading management consultants and policy advisors emphasising the urgent need for a strategic pro-natal policy.

David Spiteri Gingell, a management consultant and non-executive director, has been vocal about the island’s failure to implement concrete pro-natal policies despite repeated recommendations over the years.

David Spiteri Gingell / LinkedIn

Reflecting on his experience chairing the 2010 pensions reform strategic review and his tenure on the pension reform strategy group until 2021, he recalled that one of the key recommendations was to develop a well-defined, long-term pro-natal policy. However, he noted that despite the groundwork laid by demography expert Maja Miljanic Brinkworth in 2015 as part of the strategy group’s corpus of work, these recommendations have yet to be implemented.

“There is no doubt that a long-term pro-natal policy is of strategic importance for Malta,” Mr Spiteri Gingell stated.

“The fact is that Malta’s fertility rate stands at 1.1, far below the 2.1 rate required for a sustainable population. Without such a policy, discussions around migrants – whether from the EU or Third Country Nationals – become not only dangerous but also unfounded,” he said.

The economic and social implications of a shrinking local population are far-reaching.

As Malta’s workforce continues to evolve, an increasing number of Maltese citizens are pursuing higher education and shifting towards high value-added roles. This raises an important question: Who will fill the essential low value-added jobs that are crucial for the economy’s day-to-day functioning?

Mr Spiteri Gingell further underscored the risks of divisive rhetoric surrounding migration, highlighting the indispensable role of Third Country Nationals in sectors such as health, care, leisure, and entertainment. “Consider the potential chaos if Third Country Nationals were to go on strike – even for a day. The current populist discourse initiated by the PN only exacerbates these challenges.”

At a recent National Round Table Forum on Adapting Malta’s Labour Market to an Ageing Population, Mr Spiteri Gingell, discussed strategies to mitigate the effects of Malta’s demographic decline. In addition to reinforcing the necessity of a pro-natal policy, he advocated for more inclusive workforce planning measures, particularly to accommodate older workers.

These measures include:

  • Flexible retirement models, allowing gradual transitions rather than abrupt exits from the workforce.
  • Age-friendly workplaces, ensuring both physical and mental well-being for older employees.
  • Retraining and upskilling opportunities, enabling older workers to remain relevant in the job market.
  • Financial incentives, to encourage extended workforce participation while ensuring pension adequacy.

“Addressing these challenges is not just an economic necessity but a social imperative. Malta must act now to secure a sustainable, inclusive future for all generations,” he added.

Moving beyond financial incentives

Edward Mizzi / LinkedIn

Edward Mizzi, another management consultant, weighed in on the topic, questioning the effectiveness of financial incentives alone in reversing Malta’s declining birth rate.

While acknowledging that monetary support plays a role, he argued that the decision to have children is not purely transactional.

“Governments are scrambling for solutions, and inevitably, financial incentives – cash bonuses, tax breaks, childcare subsidies – keep resurfacing,” he observed.

“But here’s the real question: Do families just need more money to have more children?” he asked.

Mr Mizzi contended that families prioritise long-term stability over short-term financial boosts. He highlighted two key considerations that influence parental decisions:

  • Work-life balance – Can parents spend quality time with their children, or are they forced to choose between a stable income and raising a family?
  • Healthcare & wellbeing – Are there adequate support systems in place for parents throughout pregnancy and beyond?

“If we truly want to reverse the birth rate decline, we need to stop thinking of it as an economic transaction,” Mr Mizzi stated. “People don’t have children because they’re paid to—they have them when they feel secure about their future.”

On Monday (yesterday) economist Stephanie Fabri spoke to MaltaCEOs.mt about this matter, and outlined the challenges faced by Maltese parents, particularly the mismatch between school hours and standard working schedules. “Malta’s school day ends relatively early, leaving many parents scrambling to find adequate care for their children.”

In conclusion, the experts agree that Malta needs a multi-faceted approach to its demographic crisis. A well-structured pro-natal policy should go beyond financial incentives and focus on creating an environment where families feel supported.

Mr Spiteri Gingell emphasised that without such policies, the nation’s economic and social sustainability would be at risk. At the same time, Mr Mizzi’s perspective suggests that fostering family-friendly policies, enhancing healthcare support, and promoting work-life balance are just as crucial as financial incentives in addressing the issue.

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