The Malta Institute of Management on Monday warned that the island was suffering a brain drain of locals that it had invested in while importing low-skilled workers.

In a statement, the institute noted that while the employment of foreigners was necessary for some sectors to grow or sustain themselves, it was creating a "significant challenge" for the country’s long-term sustainability.  

"Malta seems to be having a brain drain in terms of the younger generation whom the country has invested in while it is importing low-skilled workers.

"At the same time, it appears that the education system became less efficient on certain fronts."

The institute raised concern over the language skills of younger generations and an emphasis on the use of IT while ignoring its impact on other skills.

It also noted that "young social media users had issues with soft skills, such as public speaking, socialising and networking, while people skills were deteriorating. 

This meant employers had to invest more in the training of local and foreign employees.

"Regrettably, most foreigners would eventually leave, so there is a huge waste of resources by employers in order to try and remain sustainable," the institute said.

It added its members were concerned that the government was becoming a main competitor in the employment of local technical people, putting private employers in a more difficult situation.

Despite the government employing "a substantial amount of people, inefficiencies seem to be increasing, with businesses suffering the effect of such weaknesses.

"In this context, MIM is recommending the drafting of a long-term education and skills strategy tied into the long-term economic vision for Malta."