An International Monetary Fund report sounding warnings about shortcomings in the financial sector "needed to be taken into context," Prime Minister Joseph Muscat said on Sunday.

Speaking during a call-in on One Radio, Dr Muscat said the report, coupled with the Venice Commission report, were "like an exam", where the teacher pointed out what students did right or wrong.

Read: What rule of law experts said about Malta - and why it matters

The IMF earlier this week insisted “urgent action” was needed to address shortcomings in the banking supervision by the Malta Financial Services Authority. It also warned anti-money laundering rules needed to be strengthened through a multi-prong approach.

Conceding there were "weaknesses" the country needed to address, Dr Muscat said the reports were not too critical when taken in the context of other countries.

Turkish workers

Reports of Turkish construction workers flown in to work in a quarry in Mqabba led to the discovery of a legal loophole that could give rise to abuses, Dr Muscat added.

The Sunday Times of Malta had revealed plans by TACA to import some 2,500 Turkish workers over the coming months. Discussions were held with the government’s employment agency, Jobsplus, to "fast-track'' the required permits.

While he did not go into the merits of the law, Dr Muscat explained the government would be seeing how to address the shortcomings.

"The issue revolves around the fact companies are not findings Maltese workers," he said.

As more children graduated, it was normal for them to look for a more "comfortable job", rather than construction work, he noted.

"But if we don’t want to do it because we are moving forward, then someone has to do it," Dr Muscat said.

Turning to upcoming MEP and local council elections, Dr Muscat encouraged candidates not to take a win forgranted because of survey results.

"Don't count your chickens before they hatch," the Prime Minister said.