Press Release: SME Chamber applauds stellar vaccination strategy

The SME Chamber is in full agreement with the strategy of gradual re-opening of the economy

Following a presentation made this morning to Social Partners at MCESD, of which the SME Chamber is a full member, it was clearly explained how well the vaccination strategy has been implemented, putting Malta at the very top amongst achievers.

The SME Chamber is pleased to note how fast Malta has progressed, currently being the country with the highest number of 1st dose of the vaccine administered amongst all other countries. Malta will most probably also be the first country to reach the coveted herd immunity within the coming few days.

Together with the semi-lockdown in March, the vaccination strategy has been the primary contributor to the drastic decrease in cases, lower contaminations, lowering of cases requiring hospitalisation and deaths.

This is a great result not just for our health but also for our economy. The businesses we represent have been eagerly awaiting this sign of hope and a level of security, both for their own safety and for business to be able to restart.

Health and business go hand in hand and now that Malta is doing well on the health front business is restarting.

The SME Chamber is in full agreement with the strategy of gradual re-opening of the economy.

It is however important not just to take it gradually but also for all economic sectors to be given the opportunity to re-start, operating within the agreed health restrictions. All sectors can operate within this new normal with standards regulated by the appropriate protocols.

Based on the positive health result, the SME Chamber expects the gradual re-opening to continue being implemented.

It should be noted that there are some sectors that have been made to stop their operations for an indefinite period now. Some are still in the dark as to when their business can be allowed to restart. The SME Chamber will ensure that no sector is left behind in the progress our country is achieving.

Press Release: SME Chamber slams Government’s discriminatory approach

The Malta Chamber of SMEs is making it clear that the government’s requirements for payments, requirements which are ill-fitting during COVID times, are threatening their survival

Tourism vessel operators have been very hardly hit by COVID, like any other tourism dependent sector.

Other sectors in the tourism industry have benefitted from the basic wage supplement, complete waiver of 2020 and 2021 license fees and even the consumption boosting vouchers. This was all necessary for their survival.

The tourism vessel sector is completely tourism dependent. While on the one hand they have been given some basic help that is passed on immediately to their employees in the form of the wage supplement, the government ends up taking much much more from them by still requesting them to pay tens of thousands of euros in licensing to Transport Malta to operate.

The government is adopting a very unfair and discriminatory approach depending on which entity is regulating the sector. Operators falling under MTA had their mind put at rest from the very beginning that they would not be asked to pay fees and licenses while they continue suffering lack of business due to the effects of the pandemic. To the contrary these operators have been pleading with the authorities for months and not only have licenses not been waived or reduced but they have also incurred fines for late payments.

Irrespective of the regulatory authority this is one government and no such discrimination can be tolerated. The Prime Minister has frequently said that no business will be left on its own. The Malta Chamber of SMEs is making it clear that the government’s requirements for payments, requirements which are ill-fitting during COVID times, are threatening their survival.

This matter is currently in front of the Prime Minister and the Minister responsible for Transport Malta. The Chamber of SMEs does not exclude taking further action to safeguard the survival of its members should this situation not improve.

Press Release: SME Chamber expresses concern over the hefty increases in import costs

Currently exploring potential solutions with the Government

The Malta Chamber of SMEs has been monitoring an issue over the past months that is of serious concern to Malta. This matter was raised by members and affects all imports coming from the Far East and Turkey.

Importers have explained to us how, especially since January of this year, their operation has suffered a big shock because of changes that occurred in the shipping industry, within these countries. A number of factors have contributed to great shortages in the availability of containers and coupled with this, substantial increases in their cost.

This problem has not only impacted Malta, however the final resulting effect on Malta is bigger due to our dependency on importation and reliance on the maritime industry. Malta is in fact much more sensitive when compared to other states where importers have more options to rely on.

Importers have explained how difficult dealing with the shipping issue has been. Finding available containers is a big struggle and when, after some time, this is successful, they end up paying at a premium for the empty container. A number of new requirements further exasperate the situation. This includes being asked for a substantial sum upfront as a deposit to secure the space. It has unfortunately also become common practice that importers are asked to pay a top-up even when a commitment has been taken and given a choice to take it or leave it.

So far importers have adopted various mitigation measures at business level. Some have tried to hold off on importing, but they are now running low on stocks. Others have tried to absorb the cost as much as possible for their products to remain competitive. Maltese importers were hoping for the situation to resolve itself in the short term. Five months on however they are having to revisit their positions as it has now become unsustainable.

Apart from the cost aspect businesses are having to operate within abnormal settings, being charged much more for work they already had committed to and not being able to satisfy delivery timeframes.

The ultimate impact will be on how competitive our businesses can be in their offering. The SME Chamber foresees that, apart from the already present disruptions, Malta will be visibly experiencing price inflation on a multitude of goods across many sectors. This includes furniture, DIY and home improvement products, healthcare items, cosmetics and medicine, food products, power tools and equipment, tech products, household goods and appliances, clothing and jewellery, amongst others.

The matter has been raised with the Ministry for Enterprise and possible solutions are currently being explored. Businesses experiencing such a problem are asked to get in touch with the Malta Chamber of SMEs.

SME Chamber assisting wedding sector through Covid

The SME Chamber is working to seek further clarifications on the gradual return to normality

The wedding sector is one of a number of sectors that the SME Chamber has helped improve the survival rate with a number of initiatives taken.
This work would not have been possible without the dedication of the Committee members of this sector.
An overview of the work undertaken can be found below:
  • Confirmation of the Wage Supplement till end of 2021 when needed

  • Extension of the Rent and Electricity Subsidy

  • Confirmed re-opening for the sector as of the 1st of June

  • Clear guidelines on how the sector will be re-opening

  • Extension of the deposit refund scheme, also to cover cancellations

  • Special one-time assistance for the sector due to prolonged closure

The SME Chamber is now working to seek further clarifications as well as discussion on the gradual return to normality for the sector.

Deadline Alert for Micro Invest Scheme

Deadline to apply for the scheme is the 26th May 2021

Through the Micro Invest Scheme you can receive a tax credit of up to Eur 50,000 or up to Eur 70,000 (in the case 50% of the ownership attributed to female persons, a registered family business or is based in Gozo).

The scheme operates retrospectively and one can claim costs incurred in the previous year.

The submission date for companies is on 26th May 2021.  

Please do not hesitate to get in touch should you need further information. May we kindly remind you that the Malta Chamber of SMEs also offers the service of applying for Micro Invest on behalf of its members. This can be done through a dedicated service for a minimal administrative fee of Eur 150.00 (up to 10 claims) or Eur 250.00 (More than 10 claims).

Should you wish further information, please do not hesitate to get in touch with Ms. Bernice Sammut on 

Investment, Training and Employment Schemes

The Malta Chamber of SMEs earlier this week organised a webinar in collaboration with Malta Enterprise and Jobsplus about schemes available for any investment, training and employment needs.

During this webinar the following schemes were also explained,

Investment Aid 2021 (Malta Enterprise): http://bit.ly/INVESTAID2021

Business Development Scheme (Malta Enterprise)http://bit.ly/BUSSINESSDEV

Skills Development Scheme (Malta Enterprise)http://bit.ly/SKILLSDEV

Access to Employment & Investing in Skills (JobsPlus)http://bit.ly/JOBSPLUS

Through the Micro Invest Scheme you can receive a tax credit of up to Eur 50,000 or up to Eur 70,000 (in the case 50% of the ownership attributed to female persons, a registered family business or is based in Gozo).

The scheme operates retrospectively and one can claim costs incurred in the previous year. The submission date for companies is on 26th May 2021.  

Please do not hesitate to get in touch should you need further information. May we kindly remind you that the Malta Chamber of SMEs also offers the service of applying for Micro Invest on behalf of its members. This can be done through a dedicated service for a minimal administrative fee of Eur 150.00 (up to 10 claims) or Eur 250.00 (More than 10 claims).

If you are interested in watching the webinar, members should please send us an email to

Government announces further easing of Covid-19 restrictions – Most businesses will reopen by 7th June

Bars, theatres and cinemas will reopen in June while further restrictions on restaurants and gyms will be eased from late May

Health Minister Chris Fearne and Superintendent of Public Health  Charmaine Gauci announced the easing of measures in a timeline detailed during a news conference on Thursday morning.

The target dates for lifting further restrictions are:

From May 17

  • Elderly will be allowed more visitors, for longer periods;

From May 24

  • Restaurants and snackbars allowed to open until midnight;

  • Pools can reopen until 8pm for swimming only;

  • Gyms can reopen but no classes allowed;

  • Day centres will reopen;

  • Contact sports resume for those aged over 17

From June 1

  • Language schools can begin to open to pupils;

  • Seated weddings can be held with 100 people inside and 300 outside;

  • Restrictions on mask-wearing on beaches and pools lifted;

From June 7

  • Restaurants can allow six people per table (up from four)

  • Cinemas and theatres can reopen;

  • Bars and kazini can serve again but customers must be seated;

  • Contact sports will resume;

  • Summer schools reopen.

 

The announcement comes just days ahead of the reopening of restaurants and snack bars on Monday, which had been previously announced.  On the same day, travel to Gozo will also resume and non-contact sport will continue and arts schools reopen.

Fearne said that health authorities had discussed the use of masks and decided that there will no longer be any fines for people not wearing masks on beaches or pools from June 1.

Mass events will not happen in early summer, he said, also suggesting traditional feasts will not be held.

The number of people allowed to gather in private households will remain the same, currently restricted to four households, while just gatherings in public places are curtailed to four.

Webinar on Covid-19 business incentives: A summary

An informative webinar for members

The Malta Chamber of SMEs organised a webinar that gave an overview on the latest updates on the following Covid Incentive Schemes, such as the Wage Supplement, Tax Deferral Scheme, Moratoria on Bank Loans and Moratoria on the MBD Guarantee Scheme.

Shawn Agius from the Office of the Commissioner for Revenue underlined the importance that businesses continue to submit the documentation in time, without payment due to the deferral. Those that had not yet applied for the deferral must do so by the 15th of May 2021. Shawn Agius explained that businesses that have already applied for this scheme do not need to reapply as their previous applications will still be valid.

Ms Maria Xuereb from the Malta Development Bank explained about the updates of the MDB COVID-19 Guarantee scheme, which is provided through the commercial banks. The MDB scheme, which is part of the Government’s recovery plan, was set up to make it easier for businesses to take out loans during the COVID-19 Pandemic. This scheme allows the Government to cover 2.5% of the interest from bank loans taken by businesses allowing the business more breathing room regarding expenses during these times of Pandemic. Ms Xuereb explain how the availability of the scheme was extended as was the moratoria for repayments.

The third speaker, Ms Marika Tonna, CEO at Business First, also spoke during the webinar regarding the wage Supplement Scheme in 2021. Starting from issues related to Nace codes to various eligibility criteria that have changed along the course. Ms Tonna explained that the deadline for the wage supplement for new applicants forced to closed was the 23rd of April. Tonna continued to underline the importance to keep in touch with Malta Enterprise through the emails received in case the business’ condition changes due the changing economic scenario.

Preparing for the legalization of Cannabis

MAKING CANNABIS VERY ACCESSIBLE AND NORMALIZED CAN LEAD TO INCREASE USE AND INCIDENTS OF INTOXICATION AT THE PLACE OF WORK

Whilst the legalization of cannabis surely offers interesting opportunities from a business point of view, more importantly however the SME Chamber appreciates above all the decriminalization aspect, its leaglisation also represents a significant concern for most businesses.

From what is available in terms of proposed plans in the white paper, it is clear that any policy action and legislation in this direction requires a realignment to find the right balance between the original scope of such a legislative move, also in terms of priorities though an analysis of the opportunity cost of the collateral damage this will create in comparison to what will be gained. This does not mean that totally scrapping legislative plans is necessary but rearranging it and planning adequately for it is extremely necessary for this legislation to result in more benefits than harm.

So far employers have expressed a multitude of concerns on how it will impact the workplace. While intoxication and impairment is today already an issue that employers need to deal with sometimes due to alcohol or other substances, the SME Chamber believes that making cannabis very accessible and normalized could increase use and incidents of intoxication at the place of work, leading to an increase in frequency when employers will need to handle such situations and at the same time an increase of incidents for the same reason.

It is unfortunately evident that there is a very wide gap that needs to be bridged before laws related to the acquisition and use of cannabis can be enacted.

In general the effects of the drug are not known in enough detail and instrument to curtail abuse appear to be underdeveloped.

From a legislative point of view a general update of the legislative framework on controls and enforcement needs to be carried out.

Apart from this however there are lack of tools of how the employers and the authorities will be able to carry out relevant assessments and take the necessary action. How to assess the level of impairment one might have following the use of this drug is an unknown as the testing available does not provide enough detail to be able to do so. It is imperative that proper guidance on the limits of use and the length of time before one returns to work during which no use can occur must be clearly specified, with appropriate testing being able to back this.

There is significant potential that employers will be burdened by the additional exposure the legalised use of cannabis will bring. Lack of clarity and room for subjectivity and interpretation will only complicate matters further when taking disciplinary action. The law must provide for a clear and strong mechanism to be able to tackle such cases effectively.

People holding certain jobs considered higher risk should be banned from the use of the drug in view of potential dangerous repercussions one might have at the workplace, with lives of colleagues and clients being put in danger.

Employers would also be able to subject all employees, should this be deemed necessary, to regular testing in order to avoid incidents and protect the workplace. Failure to abide with such requests would result in disciplinary action and also potentially dismissal. In line with this free testing must be put in place in order to facilitate the process and to mitigate the multiple burdens created by the upcoming law on employers.

Apart form this, other logistical considerations must be made to curtail abuse and not encourage a wider takeup of the drug. This includes:

  • A WIDE AWARENESS CAMPAIGN ON THE HEALTH IMPLICATIONS, BOTH SHORT TERM AND LONG TERM, OF THE DRUG

  • REDESIGNING WHAT WOULD BE ALLOWED TO BE KEPT AND USED IN THE STRICT TERMS OF WHAT THIS LAW SEEKS TO ACHIEVE

  • REGULATE THE SALE OF THE DRUG IN ANY SHAPE, FORM OR USE, FOLLOWING CONSULTATION WITH BUSINESS REPRESENTATIVES

The SME Chamber will be submitting a more detailed reaction to the white paper, in the coming days.