Month: October 2021

The Malta Chamber of Commerce, Enterprise and Industry welcomes this year’s budget. The Chamber recognizes the challenging fiscal position in which the Minister of Finance formulated the Budget.

The Chamber notes that in the prevailing economic climate in which operational costs are increasing at a fast pace for all business operators, the Government took the decision not to place any further fiscal burdens or costs on the private sector.

This includes the introduction of a new mechanism which is completely independent from the existing Cost of Living Adjustment (COLA) framework to assist vulnerable families, whose cost will be borne by Government rather than being passed onto the private sector.

This is a positive step in order not to allow an inflationary spiral across the board.

We must also note that the myriad of social measures aimed at pensioners and other vulnerable groups are positive as it is felt that these cohorts retain their purchasing power in an inflationary economy.

The Malta Chamber takes note that several of its key proposals have been taken up by Government. These particularly included measures which pave the way in terms of economic recovery.

These include amongst others:

• Schemes to incentivise productive work and shift works as well as reduced tax rates for part-time and overtime work;
• Zero tax on pensionable Income for those in employment beyond retirement age;
• Zero tax on the Re-Investment of profits for business operators;
• The strong emphasis on green investments in terms of mobility and construction as well as in favour of heritage buildings and UCA properties;
• Better planning through the introduction of an aesthetics policy and comprehensive development;
• Assistance for companies to offer training to their employees;
• More funding support to help commercialise technological products;
• Incentives for businesses investing in innovation.

Nonetheless, the Malta Chamber feels that this year’s budget did not effectively address measures aimed at the recovery of the worst hit sectors such as tourism related segments. 

It also notes the rather vague references to digitalisation incentives for the private sector.

The Chamber strongly believes that the Government’s short to medium terms objectives of achieving a deficit rate of 5.6% looks overly optimistic. 

The Malta Chamber notes that the Government is forecasting the highest increase in revenue to originate from VAT receipts with estimates higher than the 2019 VAT income. 

This assumes continued growth in consumption and rigorous enforcement of VAT dues as well as the collection of deferred VAT payments.

The Malta Chamber fully supports the Government’s renewed commitment towards fiscal morality.

Through an agreement which came into force today, the 8th of October 2021, the Ministry for Equality, Research and Innovation, the University of Malta and the Chamber of Commerce, Enterprise and Industry committed to strengthening and incentivising research at the University at Post-Doctoral level in collaboration with different economic operators. The schemes aim to valorise the same basic research in sectors such as science and engineering, whilst promoting quality research in the country’s main economic sectors.

The agreement will lead towards a stronger research and innovation sector and came into force after a number of meetings with the entities concerned, where existing problems and shortcomings were discussed and suggestions in order to best address them were welcomed.

This collaboration will lead to the creation of three main research schemes:

• A scheme in collaboration with economic operators;
• A scheme enabling individuals to choose the research field themselves in collaboration with the University and/or a private entity;
• Other individual stakeholder schemes in key economic areas, even in collaboration with foreign universities.

This agreement further strengthens collaboration between academia and the private sector for the dissemination of knowledge, while creating greater research opportunities for students wishing to continue their studies in our own country and creating more job opportunities through the same research being carried out.

The President of the Malta Chamber Marisa Xuereb stressed that, “The Malta Chamber of Commerce, Enterprise and Industry has been an advocate of closer industry-academia research collaboration for several years. We are therefore very pleased to see that finally a scheme to support this kind of collaboration is being introduced at the Post-Doctoral Level, and hope that the initiative will grow in scope and magnitude in the coming years. Research and innovation are key to our businesses moving up the value chain. The number of locally-based researchers has increased considerably in recent years and there is a lot of untapped potential. It is high time to engage these promising minds in research that can really give our businesses a competitive edge and provide these researchers with opportunities to make a tangible difference.”

Minister for Equality, Research and Innovation Owen Bonnici, who presided over the signing of this agreement, stated that, “Through this agreement, we are taking an important step in the right direction to strengthen collaboration between academia and the private sector and are therefore paving the way for a robust ecosystem of research and innovation, which is the way forward for our country.”

Pro-Rector for Research and Knowledge Transfer of the University of Malta Prof Ing. Simon Fabri said that, “This agreement between the University, the Ministry and the Chamber of Commerce lays down a strong foundation to further enhance the research endeavours of the University at advanced postdoctoral levels in collaboration with economic operators. We look forward to launching such fellowship schemes, aimed at creating value for society and the economy.”

“We need to ensure that all schemes and incentives being proposed are attractive enough for effective take-up. There are a number of good schemes and incentives, but like in everything else, there is always room for improvement. I believe that it is time to revisit the model, the frame of mind, certain thinking and certain practices opted for to date,” continued the CEO.

Key Recommendations for More Effective Sustainability Funding Schemes & Incentives:

1. A simplified application process
2. Eliminate unnecessary paperwork
3. Move away from one size fits all schemes to schemes which are more sector specific
4. Implement a faster disbursement process is implemented
5. Introduce pro rata disbursements tied to clear milestones and/or deliverables
6. Appoint a reference/contact person who is well versed and easily accessible
7. More cash grants as opposed to tax credits where possible
8. Increase in % support particularly on initial capital outlay
9. More support schemes that address the limitations imposed by de minimis criteria
10. More support schemes for large companies employing over 250 employees
11. Move away from tying the amount of aid solely to increase in turnover and employee take-in in the first year’s post investment, particularly in projects focusing on digitalisation and sustainability
12. Focus on environmental systems/solutions and their overall net environmental benefit rather than standalone products.

Dr Portelli concluded by congratulating all those businesses that took a proactive approach and invested in sustainable efforts, particularly those that invested during peak Covid times.

The Malta Chamber welcomes the recommendations proposed in The National Employment Policy launched yesterday by Minister Clyde Caruana, one which identifies the key challenges in our labour market.

This Policy takes on board several of the proposals for a National Workforce strategy published by the Malta Chamber’s HR and Talent committee in August, outlining 56 tangible recommendations, paired with 48 quantifiable success measures.

“The Government’s new Employment policy is aligned to the Malta Chamber’s belief that our workforce needs to be elevated further through continuous upskilling and enhanced productivity”, the President of the Malta Chamber, Ms Marisa Xuereb said.

The Chamber notes that amongst its recommendations, those taken onboard included:
1. Tax incentives aimed towards those who wish to work after retirement as well as the equivalent treatment of overtime and part-time employment.
2. The setting up of a National Skills governing body to develop a skills strategy that can address the gaps and map out the skills needed in the future supported with adequate guidance.
3. Strengthening work-based learning programmes and promoting lifelong learning supplemented with the need for continuous up-skilling and re-skilling of employees.

The Malta Chamber will now be reviewing the Government’s policy in greater detail and offers its assistance to make the country more competitive whilst building a people centred economy which promotes further sustainability.

Following the success and positive feedback given by Malta-based businesses who participated in the previous series of webinars last year, TradeMalta, with the support of HSBC Malta, is launching another series of webinars titled ‘International Insights’.

Set to run from the 13th October until the 3rd of November 2021, the series will feature one-to-one interviews with experienced business professionals who achieved international success. Anthony Diacono, Melo Hili, Winston Zahra Jr and Andy Gatesy will be delving into their milestone experiences and achievements throughout their internationalisation journeys.

Anton Buttigieg, Chief Executive Officer at TradeMalta, said “In the upcoming webinar series, TradeMalta will be discussing the success stories of Maltese entrepreneurs who expanded their enterprise overseas. Titled ‘International Insights’ we will delve into the personal and professional journey to internationalisation of our guests, who will also share the lessons learnt and best practices that led to their success. During the series we will also highlight the services which TradeMalta offers to companies keen on going global.”

Joyce Grech, Head of Commercial Banking at HSBC Malta, said, “We are very pleased to be supporting these informative webinars which are of interest to both novice and experienced businesses. Assisting local businesses to expand their horizons internationally is at the core of HSBC’s purpose “Opening up a world of opportunity”.

As a global business enabler, we offer various solutions geared towards facilitating the process of internationalising our customers’ businesses profitably, safely and in a sustainable manner.”

The webinars will once again be hosted by Joe Schembri, Chief Officer at TradeMalta and lecturer at the University of Malta.

The interviews will be streamed live on TradeMalta’s Facebook and LinkedIn pages on the following dates:

• Wednesday 13 October at 1000hrs
  Interview with Anthony Diacono – Chairman Medserv plc
•  Monday 18 October at 1000hrs
  Interview with Melo Hili – CEO Hili Ventures
• Wednesday 27 October at 1000hrs
  Interview with Winston Zahra Jr – CEO of GG Hospitality
• Wednesday 3 November at 1000hrs
  Interview with Andy GatseyChairman and CEO at Toly Products

A replay of these webinars will also be available on HSBC’s website: www.business.hsbc.com.mt