Malta Chamber of SMEs officially meets Hon Minister Miriam Dalli
The Malta Chamber of SMEs has officially met new Minister Miriam Dalli to discuss issues falling under her portfolio.
SME Chamber President Paul Abela emphasized how important it is to give businesses the necessary breathing space at the moment, giving them the ability to extend their loan repayments on a long time-frame to give them time to make up for this year.
Mr Abela mentioned Libya as one of the avenues Malta needs to look into in order to make best use of opportunities there for economic regeneration for the good of both countries.
The SME Chamber also emphasised on the need to formalize the economic regeneration plan, including stakeholders and business players in this plan. Businesses should be guided in their investment needs to support the priorities of the country. Aggressive grants should be put in place in order to sustain such investments.
A number of support measures were also discussed in order to set up essential schemes that would help businesses re-invent themselves and change their business models.
The Wage Supplement was another aspect discussed, on which the Minister said that feedback presented by the key stakeholders, including the SME Chamber, was being evaluated and work was ongoing.
Other subjects discussed were Energy Efficient Investments, Tourism and Banking Issues.
Malta Chamber of SMEs and the Minister for Research, Innovation and the Co-ordination of Post COVID-19 Strategy Owen Bonnici agreed on the need to further co-operation between the two entities in favour of research which can be of benefit to small and medium sized enterprises.
In a meeting held between Minister Bonnici and the Malta Chamber of SMEs, they agreed that research can be a game-changer for start-ups and small enterprises in order to apply new systems or solutions which can make a difference in their operations.
Minister Bonnici explained that the government is intent to work hand in hand with the SME Chamber in order to identify more research and innovation solutions which are applicable to small and medium sized companies, so that they can grow and expand.SME Chamber President Paul Abela mentioned how encouraging it is to have a focused Minister for research and innovation, an area Malta has struggled with for a very long time. “We believe that SMEs have a lot to contribute in this area and, with focused efforts, we can together bridge the existing gaps to tap into this essential resource and reach Malta’s targets. This would be an absolute record achievement for Malta.”
A discussion also took place about the co-ordination of the post COVID-19 strategy, and a number of priorities for the furtherance of economic and social progress were discussed.
Brexit: A call for Maltese and Gozitan businesses to maintain ongoing contact with the government on support for their business under Brexit
As Brexit edges closer, Maltese and Gozitan businesses are being given a helping hand by the government. While the government has been making preparations, Maltese businesses must continue to prepare themselves and express their concerns when they encounter new challenges as a result of the UK leaving the European Union.
This message was conveyed by Minister for Enterprise Miriam Dalli and Parliamentary Secretary for European Funds Stefan Zrinzo Azzopardi during a webinar organised by the Malta Chamber of Small and Medium Enterprises in collaboration with Business First. This was an opportunity for businesses to communicate about the preparations that need to be made and to understand the new realities that Brexit will bring.
During the webinar, it was said that the relationship between the two countries needs to be strengthened and that it is in Malta’s interest to attract British companies or companies with a strong presence in the United Kingdom.
Minister Dalli said that, faced with Brexit, the priority of this government is to reduce negative impacts on business, and for Maltese businesses to make good use of the opportunities that can develop. She added that, in the coming weeks, a specific website will be announced, where information on Brexit will be provided and where operators from the different economic niches can be contacted.
“I urge you to use this practical help, but also to learn about existing aids in the form of incentives, including that of the Business Change and Transformation. Through this scheme, you can receive up to €5,000 as a refund on the costs of business consultants. These incentives can help you adapt your businesses in response to the changes that Brexit will bring about,” Minister Dalli said.
Parliamentary Secretary Stefan Zrinzo Azzopardi reminded that EU laws will cease to apply to the United Kingdom after the 31st of December 2020. The Parliamentary Secretary held that the government has been working so that departments and agencies are prepared and able to assist businesses in the best possible way. He explained that administrative resources have been increased in entities such as Customs, in order to cope with the increased activity that Brexit will bring. Specific courses aimed at commercial entities are being held to prepare them for the new scenarios. He also referred to other preparations being made by Identity Malta to register British residents in Malta, as well as to the work being done by the Ministry for Health and the Medicines Authority regarding the importation of medicines, 80% of which are imported from the UK.
The Malta Chamber of SMEs’ Chief Executive Abigail Mamo emphasized the importance of preparing businesses for Brexit.
During this webinar, representatives from the Customs Department, MCCAA and Malta Enterprise replied to questions made by particiants.
Anyone wishing for more information should visit the site www.brexit.gov.mt, which is constantly updated with notices and informative material. Direct assistance is being offered to citizens via the Brexit helpline on number 153 and to businesses on the BusinessFirst helpline on number 144. Help is also provided via e-mail on the address , where more individual and specific questions may be addressed.
Covid has necessitated a significant level of close contact with enterprises to monitor the fluid and fluctuating conditions in order to be able to respond with adequate policy proposals.
The SME Chamber’s latest study, carried out in November, on the state of business highlighted how almost 80% of businesses reported lower levels compared to 2019 with 55% reporting a decrease of over 30%. Another 10% reported staying in the same situation as the previous year and 11% reported an improvement.
Table 1: How would you rate your levels of turnover for 2020?
Amongst the sectors experiencing an improvement were those in household goods, finishings and electronics. The sectors that experienced a downturn were the majority, more prominently however Accommodation and Tourism Services, Catering and Restaurants, Clothing Accessories and Jewellery, Entertainment and Events, Weddings and the Leisure sector, Advertising and Marketing, Hair and Beauty, as well as Transport Services.
Of concern was the feedback received by businesses where close to 40% did not foresee being able to survive for longer than 12 month, all things remaining equal. 37% also said that they were unable to answer this question.
How long can your business survive as it is?
When asking businesses on whether they were foreseeing making any changes during the coming 6 months, 50% expressed that they had no plans. Other choices which scored highly were Selling and Marketing Online, Diversifying, Reduction in Employees and Downsizing. 9% said that they planned to invest more, as opposed to 7% that planned to close down.
The results show clearly how heavily the uncertainty was weighing on businesses, 70% ranking it as their biggest concern at the moment. This was followed at 53% by very low turnover, the concern of government aid stopping at 33%, followed closely and by order of ranking, by not having an existent market, paying employees, rental costs, piling debt and increases in bank-related costs.
Do you foresee making any changes in your business during the next 6 months? (November Suvery)
When asked about the wage supplement, those benefitting and those not both carried out a degree of layoffs, with a high percentage, in both cases, however saying that they did not lay off anyone.
In terms of aid necessary and investment priorities, businesses said that grants are a priority as opposed to tax credits or repayable loans. IT solutions, including eCommerce sites, automation software, digital marketing and subscription fees was another priority ranked highly by businesses.
Apart from investing however businesses also outlined what other support they deem necessary by the government. These included:
Help with rental costs
Cost of banking facilities
Cost of shipping when selling online
Government to guide businesses with strategy
Relief from piling tax burdens and financial commitments
The SME Chamber also asked businesses to share their experience in terms of how they mitigated the impact of Covid. At 35%, the majority did not do anything to mitigate. 29% of respondents however said that they came up with special promotions and offers to boost business, 20% started their delivery service, 18% migrated to online, 15% trained employees, 14% refurbished and another 14% diversified their operation.
What changes have you implemented in order to mitigate the impact of Covid?
Human resources was one of the other big concerns of our members, mostly small and tight knit teams. We have therefore asked businesses to tell us about their struggles, apart from costs, were they experiencing. Highest ranking were the uncertain working environment and employees not feeling that their job is secure, issues with mental health, lack of social contact and low levels of morale.
The festivities are the most important peak for businesses, the peak that makes up for other slower periods. This year the festivities are still expected to peak, yet the peak can only be called such when compared to the rest of the record slow year.
Early figures are coherent with this assessment and though business is by far lower than last year, on average businesses appreciate the situation and therefore do not expect any better. There are however segments that are suffering more than others and sacrificing their businesses for the benefit of health and the rest of the economy, including snack bars, bars, entertainment establishments, events, performers and retail outlets selling occasion wear, that are fairing much worse than others.
The Malta Chamber of SMEs has taken up a number of initiatives to boost business in Malta.
Black Friday Campaign
The SME Chamber is a driver for Black Friday in order to ensure that Maltese businesses do their utmost on this day and feature prominently when consumers are looking for the best places to spend money at.
This year’s Black Friday initiative sought to highlight all our members participating in the initiative, also including who is carrying offers online and who is delivering. This information was all included in our own ‘Guide to Black Friday’ that gave visibility to consumers to be able to plan their shopping ahead.
Valletta
From the feedback gathered and statistics, it became evident how Valletta was standing out in terms of the negative impact of Covid. In fact Valletta was turning into a silent city and businesses were on the verge of desperation.
Through discussions with the Government and the support primarily of the Tourism Ministry and the Valletta Cultural Agency, a few meaningful initiatives were carried out to highlight Valletta as a place to visit for the festivities.
Shop Local Campaign
This is a campaign many members asked us to carry out to support them during this difficult time. This campaign was also suggested for the government to carry out at a national level in order to encourage consumers to support local businesses and save jobs by giving them priority during their spending.
This campaign was launched at the beginning of December .
Wage Supplement
Not all businesses could benefit from the initiatives highlighted above and therefore their survival did not depend on consumption but government support, while they remained closed or with close to no sales.
The SME Chamber has therefore entered into discussions with the government in order continue ensuring that the Supplement helped those that needed it the most.
The European Union’s medicines agency has moved forward a meeting to assess the Pfizer-BioNTech coronavirus vaccine for provisional approval to December 21.
The European Medicines Agency (EMA) is planning to issue its decision on the BioNTech and Pfizer vaccine on December 21, eight days earlier than planned.
The EU has come under increasing pressure to approve the vaccine, following emergency approvals from the UK and the US earlier this month.
Health Minister Chris Fearne told parliament on Tuesday that Malta was among the countries which had urged the EMA to move the approval process forward, without sacrificing any safeguards.
Malta has secured 500,000 jabs of the Pfizer vaccine.
Fearne said the European Commission is expected to approve the vaccine procurement within a couple of days of its approval by the EMA. Deliveries to several EU countries including Malta will then start within days.
“This means the first vaccinations in Malta could take place before the end of the year,” Fearne said.
Superintendent of Public Health Charmaine Gauci said the vaccine “could arrive a few days earlier than expected” but that it was too early to say.
A fortnight ago, BioNTech and Pfizer submitted an application to the EMA for a conditional marketing authorization for their COVID-19 vaccine.
The vaccine is currently considered one of the promising potential means of containing the Corona pandemic.
Covid vaccine not a ‘magic wand’
President of the EU Commission, Ursula von der Leyen tweeted that she welcomed the EMA’s decision to bring the meeting forward.
She added: “Likely that the first Europeans will be vaccinated before end 2020!”
Every day counts – we work at full speed to authorise #COVID19 vaccines that are safe & effective.
I welcome @EMA_News bringing forward its meeting to discuss the @pfizer/BioNTech vaccine, before Christmas.
Likely that the first Europeans will be vaccinated before end 2020!
Most of us will eagerly be turning the page on 2020 and looking forward to 2021. In fact, 2021 is expected to be better, not a difficult feat to achieve, with most of the aspirations hanging on the vaccine.
While we will all gladly swap any given year with 2020, 2021 is not presenting us with a clear trajectory.
2021 will see the slow return and gradual gearing up of the normal economy, something that will be consolidated between 2022/2023. 2021 will in fact still retain a number of unknowns – when will we be clear of the virus? How many tourists will Malta be attracting? What is the size of our economy?
What we want to avoid is going into 2021, such an important year for recovery, with an attitude of nonchalance, lowering our guard on preparation just because 2021 will be a better year than 2020.
In reality we must all work twice and even triple as hard to make 2021 a year of recovery. The reality is also that our contracted economy will not have space to accommodate the number of economic operators we had prior to Covid and certain sectors will take long to regain viability.
We must go into 2021 better prepared to turn the losses into profitability, in a much shorter timeframe. In a state of great fragility, following 2020, businesses do not afford wasting resources, they do not afford waiting around for clients that will not return in time to save their business.
Malta’s economy will have to restructure, and this is something we have been hearing for months about, yet the direction of restructuring is not known. This is something Malta must rectify in the immediate because we must shorten waiting time, we must redirect resources and funds from unsecure and questionable activity into the new lifelines.
Many businesses are at the moment evaluating their position and some are finding taking diversification decisions difficult since there is no clear guidance. Businesses know that due to Covid some doors will remain closed for now, but which doors Malta will seek to open, in terms of alternative economic pillars, is still unknown.
Such visibility and clarity is also essential from a banking perspective. Given the facilities made available thanks to the MDB, increasing the debt levels has so far been quite accessible, going into further debt however, either to sustain current business activities or to invest into re-structuring and diversification, will be a challenge.
Going into further debt is risky, yet investment and business redirection will be necessary for most businesses. SMEs should be supported through aggressive grants that will cover a significant part of the investments, not just any investments, but investments that will support Malta in its economic restructuring and redirectioning.
Economic recovery is a collective effort and responsibility. Our country does not afford stakeholders working independently, stakeholders must work together and in sync.
The Recovery Plan for Europe, the EU’s long-term budget, coupled with the NextGenerationEU initiative, will be the largest stimulus package ever financed through the EU budget. Malta needs to take the opportunities offered by greater flexibility in State Aid regulations to aggressively support businesses make the necessary investments, by which, they will be able to enter into the economic sectors that will re-ignite Malta’s economy, improve their business models into more sustainable ones and advance on the digital fronts.
EU contacts close to the talks say both sides are being constructive. They insist negotiations aren’t simply continuing because neither the EU, nor the government want to be blamed in a no-deal scenario and prefer not to walk away first.
“We’re carrying on talking because no-deal is a big deal,” one EU contact told me. “We think it will have a dramatic impact on lives and livelihoods. As long as talks aren’t going backwards, it would be irresponsible not to give this a chance.”
The now-infamous three main sticking points are still open, with tentative progress being made, we hear.
We understand:
1) On fishing rights, EU whispers suggest a kick-the-can, down-the-road fudged compromise might be found (though not settled yet), involving considerable European concessions
2) The governance of the overall deal is being worked on in detail. Still to be agreed: what actions could be slapped with which sanctions, and who decides
3) Competition regulations – aka the level playing field – are still a big issue
Alongside technical talks, both sides say political intervention will certainly still be needed.
We aren’t behind the scenes in the negotiating room or on the closed calls between Mr Johnson and Ms von der Leyen.
But however long these talks rumble on, ultimately neither the government, nor the EU, will sign up to a deal if they can’t claim it as a victory.
For Mr Johnson, that means being able to say the deal respects post-Brexit national sovereignty; that it allows the UK to make and take its own decisions.
Brussels wants to be able to confidently reassure the 27 EU leaders that the deal protects the single market and European businesses in it from what they feared could be unfair UK competition.
If there is a deal, the EU assumption is that many in the UK will want to trumpet what one Brussels insider called “a Great British Victory” and to point to EU concessions, real or alleged.
“If that narrative helps get a deal over the line in the UK, then it’s worth it,” he shrugged. “Few Europeans are paying attention to the Brexit process anymore. We don’t care about PR. We care about protecting our interests, deal or no-deal.”
That last sentiment, of course, is one loudly expressed by the UK too
Malta-based payments company enables merchants to accept the widely used international credit, debit and charge points via its Point of Saleterminals.
Trust Payments Malta (trading as acquiring.com) today announces the addition of American Express to the growing list of payment types that can be accepted on the company’s card terminals in Malta.
Other payment types accepted by Trust Payments include the ever-present Visa and Mastercard cards as well as emerging methods like Samsung Pay and Apple Pay which are already available on the Trust Payments terminals. Merchants can accept these payment types by chip and PIN, contactless mode, or by using smartphones or wearables.
“We have worked relentlessly over the past months to support Maltese merchants as best we can to help them quickly adapt to accepting payments which do not require handling the customers’ cash or cards to reduce risk of infection. We have added new functionality such as contactless and pay by link, where a merchant would be able to send a link to their customer through social media or email to make a touch-free payment,” commented Steve Grech, CEO, Trust Payments Malta. “Now we want merchants to be ready for when the locals are visiting restaurants and retail shops more frequently once again and tourists start visiting Malta. As well as American Express, we recently added Dynamic Currency Conversion; this is where a customer who does not have a Euro card (for example, a pound sterling or dollar card) can select what currency they wish to pay in at the point of sale. Our goal is to help ensure our merchants adapt and our economy does not miss out on any source of income.”
John Pace, Chief Business Development Officer added: “On average, consumers carrying an American Express card spend three times more than consumers who don’t, and their average transactions on those cards are 1.7 times higher, according to data provided by American Express. We want merchants in Malta, no matter their size, to be able to optimise the experience and increase loyalty for such customers by being able to accept their preferred payment method.”
Trust Payments introduced their Point of Sale (POS) terminals onto the market in Malta just over a year ago and recently signed a partnership with theMalta Chamber of SMEs, aiming to increasecompetition on the local market, expand the range of payment options being offered and ultimately lead to reduced costs for shopkeepers and merchants to accept card payments.
To find out more about accepting Amex cards or DCC via the Trust Payments Point of Sale terminal, contact .
