Category: Articles

The Malta Chamber of SMEs acknowledges the significant investment and continuous efforts undertaken over recent years to strengthen Malta’s electricity distribution network. It is evident that substantial work has been carried out to modernise infrastructure, improve resilience and respond to the increasing demand placed on the national grid.

At the same time, the recent power outages experienced across multiple localities once again highlight the importance of ensuring that national infrastructure continues to evolve in line with Malta’s economic and demographic growth. As the country’s population, business activity and energy demand continue to increase, investment in critical infrastructure must remain a national priority.

For many businesses, particularly SMEs, power outages are far more than a temporary inconvenience. They result in interrupted operations, lost sales, damaged stock, cancelled appointments, disrupted production schedules, business productivity level and additional operational costs. In such cases Interruptions can have significant financial consequences and impact customer confidence. Furthermore, employees turning up for work after sleepless nights, with some handling heavy machinery, does not help the business function safely and efficiently.

Rather than focusing solely on the causes of individual incidents, the SME Chamber believes the discussion should now evolve towards strengthening Malta’s long-term resilience while ensuring that businesses are better protected when unforeseen disruptions occur.

The Malta Chamber of SMEs is proposing the establishment of a structured Business Continuity Compensation Mechanism that would automatically come into effect following electricity disruptions that exceed clearly established thresholds.

Such a mechanism should provide businesses with a transparent, predictable and efficient means of obtaining compensation for losses directly attributable to prolonged power outages, without requiring adhoc processes that could themselves cause further stress and loss of productivity.

Importantly, the SME Chamber believes that such a mechanism should complement the continued investment in Malta’s electricity infrastructure. Compensation should never be viewed as an alternative to infrastructure investment. Rather, both should form part of a comprehensive national strategy that seeks to minimise disruptions while ensuring that businesses are not left to shoulder the financial burden when exceptional events occur.

Businesses understand that no electricity distribution network can ever be entirely immune from unexpected failures. However, modern economies require systems that not only reduce the likelihood of disruptions but also provide fair and timely support when they occur.

The Malta Chamber of SMEs remains committed to working constructively with Government, Enemalta and all relevant stakeholders to develop practical, forward-looking solutions that strengthen Malta’s infrastructure, enhance business resilience and safeguard the competitiveness of the country’s enterprises.

In a typical businessman’s mind the words energy audit, trigger the dread of inspections, paperwork and unnecessary administrative work. In reality, an energy audit a practical business tool that could help identify where and how energy is being used, where it could possibly be wasted, and where improvements can be made which should result in reducing operating costs.

This was one of the key messages that emerged during a recent panel discussion organised by the Energy and Water Agency, during which the new Energy Performance Assessment Scheme was launched. The Malta Chamber of SMEs was part of this panel discussion. Through the new scheme businesses with average energy consumption may benefit from a free service that includes on-site visits by qualified professionals, tailored recommendations, and follow-up support where required. Businesses within the higher consumption brackets may make use of financial incentives towards the cost of carrying out a professional assessment. In this context, it is important to note that energy consumption includes fuel used for transportation or otherwise.

One of the most important observations made during the discussion was that the term SME covers an incredibly diverse range of businesses. A manufacturing company, a hotel or a supermarket will naturally have a very different energy profile from a neighbourhood retailer, a small professional office, a hairdresser or a mobile phone repair shop. While all businesses can benefit from using energy more efficiently, the potential savings and the type of recommendations will vary considerably.

For businesses with significant energy consumption, energy audits can identify opportunities that lead to substantial reductions in operating costs. For smaller businesses, the recommendations may be simpler and more focused on improving day-to-day efficiency rather than a major capital investment.

One of the strongest conclusions from the discussion was that the success of an energy audit should not be measured by the report that is produced. The real measure of success is what happens afterwards. An energy audit may identify opportunities to improve lighting, replace ageing air-conditioning systems, optimise equipment or introduce better operating practices. However, these recommendations only deliver value if they are implemented and this is often a considerable challenge for SMEs, especially micros.

Business owners make investment decisions every day, balancing limited financial resources against many competing priorities. Investing in new equipment, upgrading technology, expanding premises, recruiting staff or purchasing stock all compete with energy efficiency projects and admittedly, the lattrr are not at the top of the list.

On the other hand, this does not mean that businesses are unwilling to invest in reducing energy consumption. Rather, it reflects the reality that every investment decision must be considered alongside the many other demands placed on a growing business. Many small businesses already make improvements that result in energy efficiency by default. When equipment, lighting, air conditioning and so on fail, most enterprises replace them with today’s energy efficient models.

One message that resonated throughout the discussion was that recommendations need to be practical, realistic and prioritised. Business owners are not necessarily looking for the longest or most technical report. They need clear guidance such as What should we do first?, How much will it cost? How much can we expect to save? How long will it take to recover the investment? Assessors need to speak in terms that business people understand like competitive advantage, cost, return, risk and payback as opposed to using terms like kWh, efficiency, load factors and COP.

From the Chamber’s perspective, the objective is clear. Energy performance assessments should help businesses make informed decisions, reduce unnecessary operating costs and improve long-term resilience. Whether a business is large or small, every euro saved through greater efficiency is a euro that can be invested back into the business.

Article by Mr Marcel Mizzi – Officer

Mr Philip Fenech, on behalf of the Malta Chamber of SMEs, met with Mr Michael McGrath, European Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, during a meeting organised by MCESD – Malta Council for Economic and Social Development

The discussion focused on matters of importance to Malta’s SMEs, including consumer protection, the regulatory environment, and the challenges and opportunities facing small businesses at both the national and European levels.

The Malta Chamber of SMEs remains committed to ensuring that the voice of Maltese SMEs is represented in discussions that shape future European policies.

Malta Chamber of SMEs Council Member and President of the The Gozo Business Chamber mR Michael Galea was also present.

The Malta Chamber of SMEs organised an engaging workshop on Pay Transparency in collaboration with Weave Consulting and legal partners Gonzi & Associates.

During the session, Dr Roberta Lepre from Weave Consulting provided participants with a practical and strategic approach to pay transparency, while Dr Katrina Portelli shared valuable legal insights into the pay transparency framework, outlining key considerations for employers and the compliance requirements stemming from the EU Directive.

The workshop offered participants a deeper understanding of why pay transparency matters beyond mere compliance. Company representatives also had the opportunity to exchange ideas, share experiences, and discuss the next steps in preparing their organisations for the upcoming changes.

Following the successful in-person workshop on Pay Transparency, and due to the limited number of places available, the Malta Chamber of SMEs, in collaboration with Weave Consulting and Gonzi & Associates, will be organising an additional online workshop for those who were unable to attend or secure a place.

The online workshop will take place online on Tuesday 28th July at 11:30am. Click here to register: https://sme-chamber-mt.odoo.com/event/online-workshop-pay-transparency-from-legal-obligation-to-strategic-advantage-111/register#scrollTop=0

The Malta Chamber of SMEs recently welcomed a high-level business delegation from Tunisia, organising a B2B networking event that brought together Maltese and Tunisian enterprises to explore new opportunities for cooperation and trade.

The event, held at Malta Enterprise, was organised in collaboration with the Tunisian Chamber of Commerce and Industry and aimed to further strengthen commercial relations between the two countries while encouraging new areas of business collaboration.

During the opening session, the Malta Chamber of SMEs COO, Mr Andrew Aquilina, highlighted the importance of building stronger economic and business ties between Malta and Tunisia. The President of the Tunisian Chamber of Commerce and Industry, Mr Nejib Mellouli, also addressed participants, emphasising the value of cross-border collaboration and the potential for future partnerships.

As part of the official programme for the Tunisian delegation’s visit to Malta, additional meetings were held with Malta Enterprise and TradeMalta, as well as a dedicated session with Malta Freeport Terminals. These engagements provided further insight into Malta’s business ecosystem and investment opportunities.

The programme also included a reception hosted by the Tunisian Ambassador to Malta, H.E. Zouheir Bouras, further strengthening diplomatic and commercial relations between the two countries.

The Malta Chamber of SMEs looks forward to continuing to build on this positive momentum, strengthening bilateral relations and creating new opportunities for businesses in Malta and Tunisia.

  

 

The Malta Chamber of SMEs as part of Malta Council for Economic and Social Development (MCESD) held its first meeting of this legislature yesterday with Prime Minister Robert Abela.

During the meeting, the Government outlined a number of key targets for the current legislature. One of its main objectives is to improve the country’s overall wellbeing by 25%.

Other targets include reducing public debt from 46% to 40% of GDP by 2030, maintaining one of the lowest unemployment rates in the eurozone, and increasing the proportion of businesses using artificial intelligence to 40%. Currently, around 30% of workers use AI tools in their jobs.

The Minister responsible for Social Dialogue, Keith Azzopardi Tanti, Minister Omar Farrugia, and other Government officials were also present.

New rules on pay transparency have now come into force in Malta as part of the implementation of the EU’s Pay Transparency Directive.

The changes are intended to strengthen the principle of equal pay for equal work and to make it easier for employees and job applicants to understand how salary decisions are made. While some of the reporting obligations introduced in the regulations only apply to larger organisations, other changes will affect businesses of all sizes, including small and medium-sized enterprises. One of the most significant changes concerns recruitment. Employers must, from now on, provide job applicants with information about the salary or the salary range for a position before the recruitment process is concluded. This information may be included in vacancy advertisements or provided during the recruitment process to enable informed salary decisions.

Employers are now also prohibited from asking applicants about their current or previous salary history. The aim is to ensure that salary decisions are based on the requirements of the role and on objective criteria rather than on an individual’s previous earnings. Furthermore, employers are required to ensure that job vacancy notices, job titles and recruitment processes are gender-neutral and free from discrimination. The legislation also offers employees greater transparency regarding salaries. Workers may request information about their own salary and how it compares, on average, with that of colleagues performing the same work or work of equal value, with the information provided being broken down by gender. Employers are also obliged to remind employees of this right on an annual basis and may not restrict workers from discussing or disclosing details of their own salary. Importantly, the regulations do not require all employees performing the same role to receive identical salaries. Differences in salaries may still be justified where they are based on objective factors such as performance, competence, experience, qualifications, responsibilities or other legitimate business considerations. The regulations also introduce obligations regarding salary policies.

Employers are expected to maintain objective and gender-neutral criteria governing salary levels and salary progression. While employers with fewer than fifty employees benefit from certain exemptions relating to formal salary progression policies, businesses employing twenty-five or more workers must still, internally document the criteria used to determine salary and salary progression. The most widely publicised aspect of the new rules concerns gender pay gap reporting, however, these obligations only apply to employers with at least one hundred employees. Employers with fewer than one hundred employees are not required to submit gender pay gap reports, although they may choose to do so voluntarily. For larger employers, reporting obligations will apply on a phased basis depending on workforce size. In certain circumstances, employers may also be required to carry out a joint salary assessment where a significant and unjustified gender pay gap is identified. As a practical first step, businesses should review their recruitment procedures, employment contracts and salary setting practices and ensure that differences can be justified by objective criteria, that any restrictions on salary discussions are removed, and that appropriate records are maintained.

This article provides a general overview of the legislation and should not be regarded as legal advice.

The Malta Chamber of SMEs will be hosting a webinar on this subject on the 18th June 2026.

Legal experts will be available to explain in further detail and to answer questions. Click here to register.

Article by Marcel Mizzi
Senior Officer, Malta Chamber of SMEs