Graziella Grech: Efficient hiring of third-country talent is key to Malta’s competitiveness

Malta's ability to attract foreign direct investment depends not only on bringing businesses to the island, but also on ensuring they can recruit the specialised talent they need, according to Graziella Grech, Executive Director of FinPlus Europe.

Speaking to MaltaCEOs.mt, Ms Grech said that while Malta has established a robust legal and regulatory framework for employing third-country nationals (TCNs), practical challenges continue to affect businesses, particularly those operating in highly regulated sectors such as financial services and fintech.

"The most significant challenge is predictability," she said, explaining that varying permit processing times and delays beyond published service levels make workforce planning increasingly difficult.

For regulated businesses, she noted, delays can have consequences beyond recruitment. Key function holders often require additional regulatory approvals, meaning hold-ups in employment permits can directly affect licensing milestones, operational readiness and broader business planning.

Ms Grech also highlighted the administrative complexity of dealing with multiple government authorities, each operating with separate processes and requirements.

"Greater coordination between these entities, together with further digitalisation and integration of systems, would significantly reduce the administrative burden and improve the overall experience for both employers and applicants," she said.

She pointed to a recent experience at FinPlus Europe involving a highly qualified employee changing employers. Although the application was submitted well in advance, processing delays created uncertainty because the employee's family's residence permits were close to expiring.

The situation ultimately forced the company to reconsider its recruitment timeline to protect the family's legal residence in Malta.

According to Ms Grech, cases like this demonstrate that administrative delays carry both human and commercial consequences, affecting employers, employees and their families alike.

She argued that Malta's investment promotion efforts must be matched by an immigration and employment framework capable of supporting businesses after they establish operations locally.

"Attracting investment is only one part of the equation; ensuring that investors can efficiently recruit and onboard the talent they require is equally important," she said.

Ms Grech noted that demand for specialised professionals in financial services, fintech and technology increasingly requires employers to recruit beyond the European Union, including from the United Kingdom, because the necessary expertise is often unavailable locally or elsewhere in the EU.

To strengthen the system, she suggested introducing clearer application pathways for specialised schemes such as the Key Employee Initiative, improving the functionality of online application systems and providing more transparent application status updates.

She also called for greater flexibility in cases where applications have been submitted on time but are delayed for reasons outside the applicant's control, so that individuals are not disadvantaged by administrative backlogs.

Despite the challenges, Ms Grech stressed that Malta has taken positive steps to attract international talent. She described initiatives such as the Key Employee Initiative as demonstrating the country's commitment to facilitating the recruitment of highly qualified professionals and praised officials for generally being approachable and willing to assist in complex cases.

Looking ahead, she believes continued investment in digitalisation, stronger coordination between government entities, greater transparency around processing timelines and a more business-oriented approach to exceptional cases would further strengthen Malta's attractiveness as an investment destination.

"Facilitating the recruitment of international talent while maintaining robust regulatory and immigration standards is not simply an employment matter; it is an important component of Malta's economic competitiveness and its ability to continue attracting quality foreign direct investment," she concluded.