Most of Malta’s temping agencies stopped operating after the government introduced new laws regulating the sector, Robert Abela said on Friday.

Allegations of abuse riddled the sector in recent years as stories emerged of companies exploiting non-EU workers.

In April, the government introduced new regulations requiring temping agencies to obtain a licence.

“Thanks to the reform, less than a quarter of previously unregulated temping agencies are still in operation today,” the prime minister said.

He said the temping agencies that acquired a licence are compliant with employment laws and policies.

Government sources said that many agencies did not apply for a licence, believing they would have been rejected. A few applicants were rejected, they added.

Abela made the announcement during a pre-budget meeting with UĦM - Voice of the Workers.

A statement from the prime minister’s office said the meeting focused on improving workers' rights and conditions.

Abela said one way to achieve this is by ensuring certain industries do not have an oversupply of workers.

"We have ensured to address the over-supply of workers in certain sectors such as in the Y-plates and food courier industry,” Abela said.

“We are protecting the livelihood of workers who have been working in these sectors for a long time, as over-supply can ultimately negatively affect established workers in the sector while creating room for abuse," the prime minister said.

Abela said that the government has helped improve workers’ conditions by facilitating a “historic agreement” that has seen a “substantial” increase in the minimum wage.

“Not just for this year but for the years to come,” he said.