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Malta Chamber of SMEs meets Opposition delegation to discuss the 2021 Budget proposals

Posted on by SME Chamber

“Budget 2021 must guarantee a financial package that will see businesses through the Covid period and beyond”

The Malta Chamber of SMEs met a delegation from the Opposition to discuss the proposals for the 2021 Budget.
Malta Chamber of SMEs President Mr Paul Abela said that earlier this week the SME Chamber published its full set of 19 Budget proposals that mainly focus on the required urgent response mechanism to counter the effects of the Covid 19 pandemic on businesses.
Paul Abela mentioned that 2020 is nothing like what anyone expected and will be remembered as an exceptional year for all the wrong reasons.
Mr Abela said that Budget 2021 must guarantee a financial package that will see businesses through the Covid period and help them rebuild their strength to be able to sustain the Maltese Economy independently again.
Paul Abela said that the Wage Supplement, which proved to save thousands of jobs across Malta and Gozo, was a proposals of the SME Chamber and implemented following our insistance.
Mr Abela insisted that the SME Chamber’s Budget 2021 targets businesses and consumers alike, who depend on each other now, with the effects of Covid, more than ever. Mentioning mainly the Reduction of Income tax on Business Trading Income, Covid Wage Supplement to Extended till March 2021 to give businesses pradicability, Re-launching the Voucher Scheme and Redistribution of another round of Eur100 vouchers and Extending MicroInvest benefits amongst other important proposals.
The delegation from the Opposition, composed of Hon. Mario de Marco, Hon.  Claudio Grech, Hon. Hermann Schiavone and Hon. Kristy Debono stated that the role of Malta Chamber of SMEs throughout Covid-19 was very important and influential.
The delegation acknowledged the work behind the SME Chamber Budget proposals and said that the Opposition will take on board the SME Chamber budget proposals which will eventually be included in the Opposition Pre-Budget Document.
Abigail Mamo, CEO of Malta Chamber of SMEs and Philip Fenech, Vice President of the Malta Chamber of SMEs were also present for this meeting.

SME Chamber launches its new website

Posted on by SME Chamber

Visit www.smechamber.mt

The Malta Chamber of SMEs gave life to its rebranding strategy at the beginning of 2020. Since then we started building on our new brand on the public front. We are pleased to say that later during this busy year, during September 2020, the Malta Chamber of SMEs completed its regeneration process with the launch of its brand-new website. The new website is state-of-the-art and offers enhanced user accessibility and functionality. The highlight however is the added value this website will be giving to our members.

The new website, www.smechamber.mt, part-financed by the European Social Fund, aims to offer an added layer of support to all businesses, especially members, through the access of premium content in terms of resources. Businesses, especially members, will have access to basic resources, to give them better tools to work with and easier compliance.

The Malta Chamber of SMEs is a 70 year old organisation, and, similarly to the rebranding exercise, we are not wiping the past but building on it and strengthening it. The new website therefore includes past resources in the previous website that will be found through the search function.

The SME Chamber website also offers online payment options. New members will be able to apply and become members instantly and start benefitting from all benefits associated with the Membership.

The online Payment gateway is powered by our partners, Acquiring.com which offers online and electronic payments solutions.

Malta Chamber of SMEs presents 19 proposals for a Covid 19 Budget year

Posted on by SME Chamber

“SME Chamber calls for a Budget of strength to sustain businesses through the Covid crises and beyond.”

Photo: timesofmalta.com

 

The Malta Chamber of SMEs has published its full set of 19 Budget proposals that mainly focus on the required urgent response mechanism to counter the effects of the Covid 19 pandemic on businesses.

In his foreword, the SME Chamber President Paul Abela states that 2020 is nothing like what anyone expected and will be remembered as an exceptional year for all the wrong reasons. Mr Abela also explained that businesses had hoped for greater stability in 2020, after Malta had gone through very turbulent months at the end of 2019 and later saw the election of Dr Robert Abela as Prime Minister. Unfortunately, Covid 19 did quite the opposite. 

Lack of confidence, lack of stability and great uncertainty have been with us for close to a year now when considering also the political instability that we closed 2019 with. Businesses have been hit very hard and Malta is still not rid of Covid and will not be for some more time. Budget 2021 must guarantee a financial package that will see businesses through the Covid period and help them rebuild their strength to be able to sustain the Maltese Economy independently again.  

 

Below are the highlights of the set of proposals being put forward by the Malta Chamber of SMEs: 

REDUCTION OF INCOME TAX ON BUSINESS TRADING INCOME

To 20% for the first Eur 100,000 in profits, to leave increased liquidity in the pockets of businesses 

 

LOWERING THE VAT RATES ACROSS THE BOARD

10% from the current 18% and extending the special VAT rates for businesses that have been hardest hit by the pandemic. Similar to what other countries have done, lower VAT rates will encourage increased consumption 

 

REMOVAL OF SISA

An unfair and hidden tax on consumption. SISA removed for all goods that do not carry the excise identifying marker 

 

COVID WAGE SUPPLEMENT

Extended till March 2021 to give businesses pradicability 

Reintegrating a number of business sectors on the original wage supplement 

Give the possibility to employers to integrate critical staff in the Wage Supplement system to replace employees that have left and not made redundant 

 

RELAUNCHING THE VOUCHER SCHEME

Redistribution of another round of Eur100 vouchers 

 

INCREASED BANKING SUPPORT  

Extending the moratoria on bank repayments for an additional 6 months in the form of a partial moratorium 

Interest rate subsidy of 2.5% to be extended to all loans linked to new investments 

 

NEW EMPLOYMENT AND TRAINING SCHEMES

A full financed training scheme that will incentivise the business to keep employees on and rather than staying unproductive 

A re-employment grant scheme where employers that employ someone who has over the last months been made redundant due to Covid would be assisted by covering Eur 500/month of the wage for one year 

Strengthen the Get Qualified scheme to encourage personal development 

 

E-COMMERCE SUPPORT SCHEMES

A grant scheme that would help businesses cover costs linked to the successful execution of a website which are beyond the cost of building a website per se 

 

EXTENDING MICROINVEST BENEFITS 

Extending the cash conversion possibility of MicroInvest from 30% to 50% up to a maximum of  Eur 5000 insteatd of Eur 2000  

Extend eligible costs covered by MicroInvest to cover Covid consumables such as disposable and reusable masks, disinfection and fumigation services and sanitizers 

 

NO BUSINESS SUCCESSION TAX ON CAUSA MORTIS

 When a business stays within the immediate family.

 

IMPROVING THE ACCESSIBILITY TO AND WITHIN GOZO IN A SUSTAINABLE MANNER TO PRESERVE GOZO’S PRISTINE NATURE

 

The SME Chamber’s Budget 2021 targets businesses and consumers alike, who depend on each other now, with the effects of Covid, more than ever. 

We thank the Prime Minister for his support and cooperation during this difficult year as the state support measures were crucial to avoid mass business closures and unemployment.

Malta Chamber of SMEs receives training on Employment Law in Malta and the EU

Posted on by SME Chamber

The training is funded by the Norway Grants 2014-2021 Social Dialogue and Decent work

The Malta Chamber of SMEs staff received their first training on employment law in Malta which is being supported by the Norway Grants.

The training focuses on several points related to employment law in Malta and the EU, the different types of employment contracts, working hours, leave, wages, termination of contracts, harassment and discrimination, disability, health and safety at work, data protection and work permits and residency.

The aim is that following this training by Employment Law experts, Malta Chamber of SMEs staff will be able to offer a new support service related to employment law for its members.

The training was awarded to Fenech & Fenech following an open call and was conducted by Lawyers Dr.Paul Gonzi, Dr. Rebecca Diacono, Dr. Thomas Bugeja and Dr. Mattea Pullicino.

This training is Supported by the Norway Grants 2014-2021, in the frame of the Social Dialogue and Decent Work Programme

Wage supplement, COVID-19 vouchers extended to October

Posted on by SME Chamber

SME CHAMBER WELCOMES THE NEWLY LAUNCHED AND EXTENDED AID INCENTIVES TO MITIGATE THE IMPACT OF COVID ON BUSINESSES 

The Malta Chamber of SMEs greatly welcomes the newly launched rent subsidy scheme for self-employed and businesses. The SME Chamber was the main business representative that has been campaigning incessantly for the government to support enterprises with their rental costs.

The first time the scheme was announced way back in June, the SME Chamber had expressed its disappointment that Eur2,500 fall short significantly and will have little impact on businesses needing help with accumulating rental costs. Since then, the SME Chamber has continued actively working with the authorities and insisted that the scheme should be widened to cater for businesses according to size. We therefore greatly welcome the improved announced scheme that on its own can reach up to Eur 7,500 in aid to businesses.

The SME Chamber also expresses its satisfaction with today’s announcements that two main pillars in government’s enterprise support strategy are being extended. The Wage Supplement and the Voucher Schemes were two essential measures that have kept the majority of businesses afloat during these difficult times. The SME Chamber also appreciates that this comes before the 2021 Budget that should then announce further support measures beyond this period.

In its Budget proposals the SME Chamber is specifically asking for an extension of the Wage Supplement till March 2021 and for another round of vouchers to be issued under the voucher scheme and extended for consumers to be able to spend it till December 2020.  The SME Chamber is expecting the situation to stabilise more as of March of 2021 which is till when it is envisaged that businesses will require support.

The Malta Chamber of SMEs thanks Hon Silvio Schembri as Minister for the Economy and Small Businesses as well as Mr Kurt Farrugia as Malta Enterprise CEO, for their support during this challenging time.

Malta Chamber of SMEs meets Partit Laburista administration

Posted on by SME Chamber

The SME Chamber mentioned the importance of new incentives for SMEs and the economic growth post Covid-19.

The Malta Chamber of SMEs held an introductory meeting with the new Partit Laburista administration lead by the new  PL Deputy Leader for party affairs Architect Daniel Micallef.

Malta Chamber of SMEs President Mr Paul Abela started by congratulating Mr Micallef on being elected as PL new Deputy Leader.

Mr Abela  mentioned the importance of new incentives for SMEs and the economic growth post Covid-19.

Daniel Micallef said that this meeting was held as part of a consultation process initiated by Partit Laburista and that during this meeting several issues related to families and businesses were discussed.

SME Chamber discusses rent proposals with Minister Ian Borg ahead of next week’s Covid Busget

Posted on by SME Chamber

Malta Chamber of SMEs President Paul Abela and CEO Abigail Mamo this morning met Hon Minister Ian Borg, the Hon Parliamentary Secretary Chris Agius and the Lands Authority Chairman Lino Farrugia Sacco and CEO James Piscopo to discuss important matters related to the immediate support businesses need with regards to rent.

Piling rental costs represents one of the main concerns that businesses are experiencing in this precarious time of Covid. Preserving businesses’ current condition and not let it deteriorate further until the economy starts improving is where urgent government support is necessary. Expenses accumulating during this time will take very long to recuperate making the recovery of businesses longer and more difficult.

SME Chamber President Paul Abela said that ‘as an SME Chamber we expect the Government to recognise the responsibility it has towards saving business and should lead by example. The Lands Authority should be giving aggressive discounts at the moment that would see the tenant paying only a share of what is due for the time being’. We have to collectively realise that business is down across the board, with some sectors reporting figures of just 10% turnover compared to the norm. The same expectation goes for the Malta Industrial Parks that should also be leading by example.

This will give out a very important message on what changes are needed in rents including the private sector. Specific schemes should be made available for landlords to encourage a burden sharing approach where the landlord forfeits part of his/her revenue and the government subsidises another part, leaving the tenant with his/her share to pay. As an SME Chamber we are hopeful that next week’s budget will not leave this matter unaddressed.

During the meeting discussions also focused on extending current rental schemes to open opportunities to businesses in government owned property wishing to consolidate their position and invest in their establishment. It was agreed that a joint study would be undertaken to ensure a tailored approach given the current sensitive scenario that will lead to a nation-wide scheme for businesses.

 

Urgent rescue measures needed without further delays for SMEs

Posted on by SME Chamber

“Months have now passed since the first signs of the pandemic brought the economy to a halt and things have not improved”, the Malta Chamber of SMEs insisted in a Press Release earlier today.

“Weeks into the relaxation of measures SMEs tell us they are in a worse situation than they were before because business is either slow or non-existent while costs have continued to increase, threatening their existence”.

The SME Chamber stated that much more help is necessary and the EU is giving Member States a carte-blanche to help businesses. In an aggressive stance that has never been seen before, the EU is giving out grants to Member States and asking them to save business with them. So far unfortunately as an SME Chamber we have no information that any such direct EU funds are being used to help businesses.

What is available today is not enough. Employees are being made and will continue to be made redundant as the economy is stagnant and businesses perish. This damage will take many years and hard work to recuperate. More must be done to rescue and preserve businesses in this delicate phase.

The Malta Chamber of SMEs said that it has been waiting for weeks for a scheme that will address the burden of commercial rental payments.

Other EU countries have recognised the importance of addressing the current problem with commercial rents. These countries have understood that re-opening businesses as part of the relaxation of measures cannot happen without reducing the burden of rental payments because business will be very slow for the time being.

Weeks ago the SME Chamber had proposed a rent subsidy scheme that is based on the principle of burden sharing. The scheme we have proposed is very similar to other schemes implemented by other member states and ensures that rents adapt to current market realities while also adopting a system of burden sharing between the landlord, the government and the tenant. Such a scheme can be implemented, as non-repayable grants, under the recent state-aid rule possibilities.

Rent is one major concern and other areas also require intervention. EU state aid grants can also be used to help sectors that have been left out of the wage supplement, help businesses with the necessary investments to become compliant with new health regulations, help to cover utility bills, and all other running costs that businesses will take years to recuperate. These, together with positive economic campaigns and economic stimuli will help preserve our economy and restart much earlier with less harm.

67% of businesses suffer incomplete or close to a complete suspension – SME Chamber survey

Posted on by SME Chamber

COVID-19 IMPACT CONTINUES TO BE HEAVY ON BUSINESSES

Businesses show resilience but numerous concerns still threatening their survival

The Malta Chamber of SMEs has conducted a second study to continue assessing the impact of the Covid-19 pandemic on businesses. As anticipated, just over a month into the pandemic, the situation has so far not improved much. Full implementation of the government support measures are eagerly awaited in order to start making a difference. The study was carried out between the 4th and the 19th of April and 360 SME respondents participated covering all economic sectors.

67% of respondents have indicated suffering what is a complete or close to a complete suspension, with over 75% of their business at a standstill. 10% from specific sectors claim that they are still fully operational. These include pharmaceuticals, food products, telecoms, ICT, construction, machinery and tools, corporate and financial services amongst others.

The primary concern for businesses remains wage costs. The main reason that this remains major concern is that the wage supplement has only started to be distributed. Furthermore, many businesses feel that their business should qualify for the full supplement when in fact it does not. Businesses are now opting for alternative solutions to decrease their losses and maintain their operations. 22% claim that they asked the Department of Industrial and Employment Relations (DIER) for approval on changes to that they made to working agreements with their employees. 12% claim that they have started redundancies to some degree.

24% of the respondents claim that they are concerned with late payments. In fact a tug of war seems to be developing between businesses saying that they plan to enforce credit terms while others are saying that they are stopping all kinds of payments. Whilst we appeal for businesses to be understanding and flexible during these extraordinary times, as an SME Chamber we also appeal to businesses utilize available schemes, including the Covid Guarantee Scheme (CGS). Once fully operational, the CGS will enable payments due to creditors to be made through temporary financing. In this way, businesses will be able to pay their creditors and encourage the functioning of the domestic economy.

Rents so far continue to be a major concern with 25% claiming that they would like to see some form of intervention. The measure of regulating banks to issue moratoria on loan repayments across the board should ease pressure on landlords. Undoubtedly landlords are worried about their own repayments, and therefore this courtesy should be extended to their tenants.

If things stay as they are only 19% of businesses see themselves making it beyond a further 3 months. Hopefully, with the full benefits of the intervention measures and moving closer to the aftermath of Covid, will mean that this percentage increases in the weeks to come. Another 19% is on the other hand is encouraging with businesses thinking of their current and future sustainability by indicating investing more in selling online as well as reinventing their products/services.

As an SME Chamber, our biggest concern is however on how the effects of Covid-19 are negatively affecting people’s mental health, both business owners and their employees. Around 45% of business owners and employees state that their mental health has been surely affected to significantly affected by the effects that the pandemic has had on their enterprises. As businesses representatives we are continuously working to help SMEs work their way through the current difficult months. We continue to strive to easy their worries by suggesting practical solutions as much as possible