Author: SME Chamber

GRTU Malta Chamber of SMEs once again states that it has always agreed with the principles behind the penalty point system and that greater care and safety on the road was also in the interest of business, GRTU expresses grave concern on its implementation.

The penalty point system has turned out to be yet another piece of blinkered legislation that places a disproportionate burden on business owners in the most unjust manner. The rash law has unfortunately generated more than a few teething problems and, as GRTU had warned, led to serious consequences.

 

 

Since the introduction of the penalty point system, GRTU has been in discussions with the relevant authorities and respective Ministries to try and tackle the various issues the system is causing to our members. Two months down the line, progress achieved have so far been minimal and the authorities appear to be taking the issue lightly while people are losing their license for contraventions they did not commit.

Those which own a considerable amount of vehicles or have registered company vehicles under their name as natural persons are being held liable for breaches they did not make and receiving driving license revocation letters for contraventions incurred by third parties.

Business owners have been placed in a position where they have to prove their innocence for contraventions they did not incur. This includes submission of hundreds of declaration forms and agreements every year, a heavy bureaucratic exercise, and having to convince third parties to admit and take on the responsibility of the penalty points on their name, something that can even result in having to take legal action if the party refuses to own up.

To add insult to injury, the fact that points are being directed to vehicle owners when the vehicles are not stopped, goes against the spirit of the law that clearly states that the penalty points may only be invoked on the driver and not the owner of the vehicle. The Ministers responsible have publicly guaranteed that penalty points will be only be incurred when the vehicle is stopped, with the only exception being speed cameras, yet GRTU can confirm that this is entirely not the case on the ground.

The most recent case of an owner losing his license is due to the lowest speed violation, failure to comply with a directional sign and failure to comply with a stop sign. All of these contraventions were not made by the enterprise owner, in all instances the vehicle was not stopped as required and the owner has received notice that his license is being revoked. This is not the only case GRTU is aware of.

GRTU has always insisted that the necessary infrastructure had to be properly in place before the system is implemented in order to cater for employers. GRTU therefore urges the relevant authorities to address these shortcomings without any further delay. GRTU also urges its members to bring to its attention any similar cases.

GRTU will be meeting both TM and LESA officials this week in a final attempt to iron our issues amicably.

Nominations for this year’s Malta EY Entrepreneur Of The Year™ are now open until the 9th February 2018. The competition is open to entrepreneurs from all sectors, established and new. To be eligible, nominees must either be Maltese or have been operating a company based in Malta for at least two years. Anyone, including employees, company advisors and financiers can nominate an entrepreneur, with the latter’s consent. Many of the nominations come from the entrepreneurs themselves. Just being nominated can elevate a company’s profile through exposure to other entrepreneurs, sponsors, judges and guests. The winners also benefit from significant international visibility which could drive the next phase of their company’s growth.

 

The nominations for the 2018 Malta EY Entrepreneur Of The Year™ will judged by an independent panel made up of key figures from the business community including Joseph Gasan (Chairman, Gasan Group); Bernie Mizzi (Director, Chiswick House School and St Martin’s College); Andy Beane (CEO, HSBC Bank Malta plc); Frank Farrugia (President, Malta Chamber of Commerce, Enterprise and Industry); and Paul Abela (President, GRTU).

The local winner will be flown to Monaco to compete for the grand prize, the EY World Entrepreneur of the Year Award. The event brings together national winners from more than 60 countries, selected from a pool of over 5,000 nominees.

Entrepreneur of the Year alumni include some of the most influential, innovative and exclusive entrepreneurs in the world; Guy Laliberté, the founder of Cirque de Soleil, Amazon founders Jeff Bezos and Reid Hoffman, Formula One’s Eddie Jordan, Google’s Sergey Brin and Larry Page and Howard Schultz of Starbucks to name a few.

Ambitious young entrepreneurs can apply too. The EY Rising Star Award will be presented to a contender running a high-growth business that is generating excitement in the market. The winner of this award will also attend the World Entrepreneur of the Year™ event.

To apply and for further information visit www.eoymalta.com.

 

The Entrepreneur Of The Year Award

The award was launched in the US in 1986 and has now spread to 165 cities in over 60 countries. It is the world’s biggest and most prestigious business award for entrepreneurs and the only one with a truly global dimension.

The programme was launched in Malta in 2017 with two objectives:

• To promote entrepreneurship across the Maltese Islands
• To empower entrepreneurs to grow their businesses both locally and around the world

Last year, Alfred Pisani, chairman of Corinthia Group, and David Vella, co-founder and CEO, Altaro Software, won the Maltese EY Entrepreneur of the Year™ and EY Rising Star awards. In June, they joined the winners from all over the world in Monaco.

Click here for Survey Document

GRTU Malta Chamber of SMEs’ end of year Business Performance Survey indicates a positive year in general. Three out of every four respondents did not report a decrease in their turnover. Nontheless, Labour shortage was once again found to be the topmost concern, with the direct result of slowing down business growth, fuelling higher labour costs and leading to high levels of staff turnover.

32% reported higher sales during the end of year peak season while 29% had lower sales when compared to the same period in the previous year.
Black Friday was reported to have had limited positive or negative effect on the festive season as a whole with only 17% reporting increased turnover because of this phenomenon. 20%, on the other hand, felt that because of Black Friday their total sales during the festive season decreased.

 

The survey was carried out amongst 200 business owners during the first half of January.

• 43.5% say their total sales during 2017 increased over previous year levels – but only 32% had higher profits

The biggest number of respondents said that their turnover increased year on year. Of these, 26% attributed this increase to new products introduced in their activity followed by 20% who felt that consumer spending power was better in 2017. Most of those who reported a decline in their turnover during 2017 felt that this was due to stiff online and local competition, followed by those who pointed towards illicit trade, unfair competition and lack of parking facilities.
Only 18% of respondents sold their products online and of these, the majority said that total online sales accounted to less than 10% of their total sales. For 19% of those who sell online, online sales accounted for more than 50% of their sales. Many of those who did not sell online stated that the reason behind this is that their products could not be sold online or their clients do not shop online.

27% had lower profits compared to the previous year while 32% had higher profits. 26.5% fared worse than they had expected at the start of the year and 19.5% fared better.

• 47% satisfied on the going of sales during the end of year festivities; 29% report lower sales when compared to the same period the year before

47% of those whose turnover is affected by the end of year festivities were satisfied or very satisfied with the 2017 end of year season with 32% reporting higher turnover when compared to the same period a year before. 24% were not satisfied and 25% were neutral.

The week and the weekend leading up to Christmas day seemed to have been, by far, the busiest for businesses, followed by the 8th December long weekend, 13th December and Black Friday. Business owners felt that brand loyalty, the cold weather and consumer spending power were positive factors this season while online competition, traffic and parking facilities and unfair trading contributed negatively to their going of business during the festive season.
Looking back at the whole season, 63% said that Black Friday has not impacted turnover, neither positively or negatively.

Only 28% started offering price reductions before 31st December, with reductions mostly ranging between 20% and 50% of the original price. The client base remained largely Maltese – at 68%; and the average spent by consumers in a given shop was most frequently €20 to €49 followed by the €50 to €99 category.

• 50% hopeful for a better year

Half of the respondents are expecting a better 2018, with 40% expecting this year to be as last year and 10% expecting to fare worse. 36% plan to keep their business in the same size as it currently is while 26% are planning to expand their business in Malta. 4% are looking oversees for their business expansion this year. 11% intend to set up their ecommerce website. 4% are planning to downsize their business, 6% planning to pass over to next generation or third parties and a further 2% are planning to close down. In 83% of the latter cases, the head of organisation has 56 years of age or more.

• Labour shortage and related effects tops businesses’ concerns across the board

Labour shortage remained the topmost unresolved concern among businesses across all sectors. That said, in a number of sectors – such as those with a high degree of driving and the catering industry; this problem seems even more pronounced. 52% of respondents are expecting they will have to recruit new employees during 2018 and in 46% of these cases the main reason is expected staff turnover.

Fierce competition and increasing costs in general followed suit, before traffic and infrastructure -including the lack of parking facilities and road works taking too long to complete (such as in established shopping districts like Paola).

 

 

The Hauliers Section within GRTU, filed a judicial protest in the first hall of civil rights against the Commissioner for Inland Revenue as the legal representative responsible for the Customs Department. Through its judicial protest the hauliers section formally asks for an immediate action to be taken against any persons, being permitted to act as Cargo clearance and forwarding agents, without holding the necessary license.

 

In its judicial protest the Hauliers Section notes that Chapter 203, Article 3 of the Laws of Malta, clearly states that ‘no person shall act as a cargo clearance and forwarding agent except under and in accordance with a customs permit granted in that behalf by the Comptroller’. Moreover Article 9 of the same Chapter states that importers, exporters and owners of cargo can only transport cargo from or to any customs shed, bonded store, warehouse, verandah, quay or other place of deposit ‘through the services of a cargo clearance and forwarding agent duly authorised in that behalf’.

It is therefore clear that persons being permitted to act as hauliers, without holding the necessary license are going against Articles 3 and 9 of the ‘Cargo Clearance and Transport Act’  

The Hauliers Section within GRTU, is holding the Commissioner of Inland Revenue responsible for any losses and expenses its members suffered or may suffer. Through its judicial protest, the Hauliers Section within GRTU also formally asks the Commissioner for Inland Revenue to immediately stop and intervene against such persons.

Business 1st is now owned and managed by a team made up of GRTU and Government representatives. It is now a limited liability company chaired by Mr. Paul Abela, GRTU’s president.

On Wednesday 22nd November Business 1st launched a series of info sessions specifically targeting SMEs. These short sessions are free of charge and are going to be held regularly.  They will tackle subjects that are of interest to Maltese Businesses. These sessions are not meant to be full courses in the subject matter. They are intended as an introduction with the aim of encouraging attendees to seek further knowledge. The sessions will also include information on related Government initiatives to help SMEs become aware of them and ultimately encourage uptake. Feedback from these sessions will be requested and recorded recorded and later used to further improve dissemination and create new services.

All info sessions are free of charge and are conducted at the new Business 1st premises in Mriehel (next to Fino showroom). Currently, the venue can host around 25 students, however if demand is higher more seats will be made available in future.

Through this portal you can either apply to attend one of the listed sessions or request to be kept updated about future sessions.

“Tuna l-Kartuna tal-Halib u lill-Istrina naghtu daqqa t’id”

Nowadays the management of waste is of national importance. The Scheme Green MT, which collects separated waste from numerous Local Councils in Malta and Gozo, will be launching a campaign during the European Week for Waste Reduction. The campaign named ‘Tetra ghall-Istrina’ will be encouraging any individuals (including Schools, Local Councils, hotels, catering establishments etc.) in Malta and Gozo to join us in increasing the recycling and separation of packaged waste. The main aim of the campaign is to collect as many cartons of milk and juices (any brand), which unfortunately till last year were never considered as recyclable waste which could be disposed in the Grey bag.

 

Green MT will be collecting from Schools, Local Councils, Hotels and Commercial entities (list updated daily in our Facebook page, check for updates). The EWWR – European Week of Waste Reduction will be held during the week of 18th November 2017 till 26th November 2017. This campaign will also be promoted through the use of broadcasting methods and social media.

Material can start being picked up from Today!!!

Green MT will be providing Euro 60 for every ton for this type of material collected in the mentioned week, to the Malta Community Chest Fund during the Annual event of Istrina. In this way we will be helping those in need while also making the environment around us better.

The material should be lightly rinsed, and put in a any coloured bag (not a black bag) with the carton flattened. If an individual has a query regarding this initiative, they are free to use our Freephone: 80074444 or 21496965/6 or email us on

We thank you for your generous help!

(Presentations in the left column)

Driving innovation to Maltese SMEs was the aim of this year’s GRTU Annual Conference. The event was held as part of Malta’s SME Week celebrations and saw the attendance of over 200 enterprise owners.

The title of this year’s event was ‘Let’s Evolve – Growth through Innovation’. During the opening speech Mr. Paul Abela mentioned the need for business to embrace innovation. Although a lot of businesses are acknowledging that Innovation is important for their business growth, many still have not managed to embrace it.

Parliamentary Secretary for Financial Services, Digital Economy and Innovation, Hon Silvio Schembri stated that ‘as mentioned in the budget speech, the Maltese Government will be investing in a blockchain hub to help startups that use this technology, it will also be investing in MITA’s blockchain lab and in the coming months training programs will be launched to train workers within the public service to familiarize with this new technology. All this to strengthen Malta’s ecosystem and boost innovation’.

 

Through a survey conducted by GRTU in recent months it was noted that businesses still find it difficult to apply for funding directed at innovation. Although the majority of local businesses are interested in such funding mechanisms, there is still a considerable amount of persons who have not heard of such funding opportunities.

Participants were motivated to open their doors to innovation and use it as an answer to conquer challenges. With the ever changing economy, consumer demands, increasing competition and technology advancements, innovation in business is inevitable for businesses to continue succeeding and maintain their relevance on the market.

The conference explored innovation through four main themes to complement the needs of businesses. The conference explored online opportunities and eCommerce, developing ideas and doing it with the proper preparation, access to finance from the traditional to the alternative means and also private sector innovative solutions.

Ms. Nancy Caruana Permanent Secretary at the Ministry of Economy, Investment and Small Businesses closed this event saying that the Ministry is keen on helping local talent and reward those who are determined to make it work. There are specialized Malta Enterprise schemes and government is also working on increasing the number of start-up facilities through the development of a specialized campus.

Business First has been re-launched in new offices in Mriehel. Business First is now a limited liability company owned by GRTU and Government. Business First had initially started in 2011 with the purpose of providing the most essential business services in one location. It’s primary aim has always been to reduce bureaucracy and to help speed up the provision of Business Services by offering a one stop shop solution.

GRTU believes that with it’s involvement, the services offered by Business First can not only be enhanced but can also be more effective. GRTU is represented on the Business First board of directors by Paul Abela (Chairman), Marcel Mizzi and Abigail Mamo.

Minister Cardona officially inaugurated the new Business First set up today and stated that this is all part of this Government’s efforts to reduce bureaucracy and to allow businesses to realise their full potential.

GRTU’s president, Paul Abela, promised that the new Business First will make a difference and stated that with GRTU’s involvement Business First will become a model for other countries to emulate.