The Belgian Malinois' innate intelligence makes them one of the top breeds worldwide for use as a police and military dog. The Malinois is also the perfect family dog who will curl up beside you on the sofa and protect you from the doorbell on tv and other dangers.
The Belgian Malinois is able to track and find their prey/subject, then apprehend and contain as needed. A dry nose inhibits this glorious sense of smell, slowing down their reaction time and ability to do their job.
Your Malinois may never do any harder work than keeping evil squirrels from entering your yard, but nature is still telling him to keep his nose moist and pliable. The moistness acts as smell-catching flypaper, catching the scent particles that give your Malinois info. Dry nose = less info!