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Category: Press Releases

Press Release: Maltese businesses do not deserve grey listed country

Posted on by SME Chamber

Businesses, especially small businesses, have experienced a high level of regulatory compliance and costs

The fact that Malta has carried out an impressive level of effort in order to reach international AML obligations and build its institutions, is something that our organisation is well cognisant of, because our members have lived through it all.

Businesses, especially small businesses, have experienced a high level of regulatory compliance and costs associated to this, ever since Malta fell under the scrutiny of the EU and that of international players. Operating an enterprise in Malta has become very difficult over the last years however this still does not compare to losing Malta’s reputation and operating from a grey listed country. Maltese businesses do not want to operate within an economy of shady repute and want their name cleared in the immediate.

It is now very important to really understand what Malta has missed out on and address the real problems that have landed Malta in this situation in the first place.

Small businesses fear that what will come next from our policy makers will be more of the same and they will continue bearing the brunt for the deplorable actions carried out by a few. The SME Chamber will therefore continue to monitor the situation in close contact with members in the coming days. The SME Chamber is also currently assessing how the grey listing will further impact the performance of our economy, amongst the most important of which in this case is the functioning and accessibility to banking facilities.

The Malta Chamber of SMEs will make use of all the resources that will become available out of the FATF exercise in order to ensure that the problems are tackled properly and in a timely manner.

Malta’s reputation has now been very badly tarnished and we must all do our utmost to flip this over completely and rebuild Malta’s reputation in a way that leaves no room for doubt.

The Malta Chamber of SMEs calls on the government to make Malta the AML centre of excellence. Malta has now hit rock bottom and the only way to turn this around is to become THE country of repute when it comes to AML compliance.

For a country with limited resources like Malta, reputation was one of the pillars giving us standing. Regaining our reputable stand will not be an easy process, yet it is a must and an urgent one.

Press Release by the Malta Chamber of SMEs

Press Release: SME Chamber welcomes reactivation of Bank moratorium possibility

Posted on by SME Chamber

 FURTHER EXTENSIONS WILL BE NECESSARY

The Malta Chamber of SMEs greatly welcomes the extension granted through the Central Bank of Malta’s Directive due to the exceptional circumstances the country is experiencing. In effect, there is therefore once again the possibility to apply for a fresh moratorium or extend an existing one.

This extension was necessary since business in Malta has been heavily impacted by Covid and some were already, and others are now, not in a position to carry out monthly re-payments to their banks due to the economic impact of Covid.

The general economic downturn is due to lack of tourists, lower confidence in spending and the increase in cases. These have led to very low economic activity in many businesses at the moment. Other business are impacted even worse due to direct closure requirements or heavy restrictions on their activity.

The SME Chamber has already advised the Central Bank of Malta during recent direct discussions that some businesses will continue needing this assistance beyond March. Now that Malta should be on the doorstep to restarting economic recovery businesses should be helped until they can get back on their feet and re-start repayments. Businesses currently closed have reported their inability to continue repaying interest with the Covid impact stretching now to close to a year, pushing their business to its very limits.

The SME Chamber has already advised the Central Bank of Malta during recent direct discussions that some businesses will continue needing this assistance beyond March. Now that Malta should be on the doorstep to restarting economic recovery businesses should be helped until they can get back on their feet and re-start repayments.

Malta should therefore initiate heavy lobbying at EU level to push for a further extension and not let the EU adopt a one-size-fits-all approach and let itself be led by the needs of large countries. Malta’s economy, its economic dependencies and vulnerabilities are markedly different to that of other countries and therefore Malta should be able to cater for its requirements.

The SME Chamber also wishes for the Central Bank of Malta and the Ministry for Finance to also enter into discussions with the individual banks and their representative association in order to address the transitioning between the moratorium situation and returning back to normality in terms of repayment. Banks need to provide the adequate support necessary for businesses needing some more time with moratoria and paced repayment of deferred loan repayments.

Covid has been hard on businesses and we ask for the cooperation and support of all stakeholders in order to reduce business closures as much as possible.

The Malta Chamber of SMEs takes this opportunity to thank Mr Mario Vella for his support as Central Bank Governor on the matter and to welcome his successor Prof Edward Scicluna, with whom the SME Chamber has worked closely along the years in his previous role as finance Minister.

Press Release: Businesses reach expectations overall for Black Friday

Posted on by SME Chamber

Black Friday was still exceptional when compared to the rest of the year and sometimes even comparable to last year’s Black Friday

This year was expected to be a tougher year with all the challenges Covid brought with it. Businesses were therefore managing their expectations, however they still worked much harder to secure the best outcome.

Even though initial reactions vary, Black Friday was still exceptional when compared to the rest of the year and sometimes even comparable to last year’s Black Friday.

Starting from the most positive the Home Electronics sector did very well. Businesses reporting levels close to or exceeding Black Friday of last year. Home related businesses also did quite well. Most of the businesses said that people are spending more time at home and therefore home investments have remained strong.

The clothing sector had less positive results however overall they are content with the results so far. Casual clothing did better in this category and most businesses say they reached 50% to 85% of Black Friday of last year. These businesses also expect business to continue picking up today as people can focus more on their purchases after work.

The Elegant and occasion wear unfortunately did not fare well at all. People appear to have little scope in buying occasion wear with the different way in which people will be experiencing the festive season this year due to the Covid restrictions.

Online shopping increased, even dramatically in some cases, this Black Friday. Apart from this, businesses also reported having on the shopfloor additional staff specifically to help manage people and ensure the health guidelines are followed.

An interesting fact is that businesses planned for a larger number of days during which to run their Black Friday offers this year and that is one way in which some businesses will manage to reach their targets compared to last year, on a longer number of days.

In fact, most Black Friday offers do not end today and keep extending over the weekend and sometimes even beyond. Through the SME Chamber’s ‘A Guide to Black Friday’, consumers will be able to see which days the offers will continue to run on and plan their shopping accordingly.

Conference seeks to address Business uncertainty and inspire Maltese Businesses to look ahead

Posted on by SME Chamber

The Malta Chamber of SMEs has once again themed up with Business 1st to bring another edition of ‘The SME Conference’ for the year 2020. The theme of the event this year was ‘Covid 19 & SMEs – Acknowledging, Adapting and Looking Ahead’.

SME Chamber President Mr Paul Abela stated that Covid has been very hard on us all but the news of the vaccine approaching gives us all great hope and businesses should use this time to reinvent themselves and improve on their business. Maltese businesses still have a number of hard months to go through and he called on the Government to guide businesses on areas of investment in line with the country’s economic regeneration strategy. The SME Chamber President emphasised that the banks must be patient and lengthen repayment periods as much as possible to give businesses time to get back on their feet.

Minister Silvio Schembri remarked what a challenge this year has been. In fact, instead of the yearly budget the government has come out with 4 budgets this year. The Minister remarked that the wage supplement has so far reached the Eur 266 M in direct grants to businesses. Hon Schembri remarked in particular that he is encouraged by how businesses he meets discuss their plans for the future of their business and investment needs. The Minister echoed the SME Chamber’s call on banks to participate more in the economy as they are fundamental for economic growth and recovery.

During this conference, 2 of our partners, acquiring.com and Cybergate International also participated during one of our panel discussions about the digital needs of our businesses.

Mr John Pace, Chief Business Development Officer at acquiring.com said that online payment gateways such as acquiring.com are becoming more and more popular, especially since the Covid-19 pandemic started and since transaction fees became more competitive. Mr Pace stated that Covid has made online payments a basic need. Some businesses have already shifted and are continuing to shift and strengthening their online presence and online and electronic payment facilities. Cashless payments present in fact many advantages, yet businesses report an increase in cost on the charges related to card transactions in view of increasing volumes.

Mr Pace explained that their mission is to help businesses to optimise their sales and customer experience through facilitating speedy and seamless payments.

Ing. Kieth Fitzpatrick, Director of Operations and Training at Cybergate International said that the impact of cybercrime is increasing at an alarming level with the absolute majority of businesses having experienced at least one cybersecurity incident. He also mentioned that the majority of SMEs in Malta are not equipped to prevent cybercrime, and therefore Cybergate International is ready to assist. He explained that Cybergate Internatinal is a service provider in cyber security services with over 10 years of experience. Ing. Fitzpatrick said that throughout the years, Cybergate  had the opportunity to work with diverse sectors, including the financial, gaming, banking, insurance, legal, wholesale and retail sectors and with sizes ranging from small to large enterprises.

SME Chamber CEO Abigail Mamo presented the results of the SME Chamber findings carried out during the month of November, based on 300 business respondents. 78% of respondents reported lower levels of turnover compared to 2019, while 10% reported staying the same and 11% reporting an increase. Ms Mamo emphasised that a strong level of uncertainty was expressed throughout the replies from businesses and 38% were concerned that they would not last beyond 12 months if things remained the way they were. In terms of imminent changes that businesses are planning to implement 50% of respondents said that they do not foresee implementing any such changes, 18% of respondents intend to sell and market online and another 18% plan to reduce employees. Another 17% intend to diversify and 13% plan to downsize. 7% of respondents are planning or considering closing down their business.

Malta Enterprise CEO Kurt Farrugia remarked that the Wage Supplement is due to be revised and announced in the coming days and that this will ensure that help reaches those that need it most. It is planned for the assistance to be based on loss of business, according to the declarations submitted. The new framework will be discussed with the Chamber of SMEs and social partners business representatives. Reacting to the results of the SME Chamber findings, Mr Farrugia also said that the grants to help businesses with the electricity bills are due to be disbursed at the beginning of December and those related to Rental costs will also be disbursed in the weeks following that. The Malta Enterprise CEO also expressed concern that a significant amount of businesses did not highlight their intention to adapting and making necessary changes. He remarked that businesses should not build plans relying on state handouts but should use this time to make use of the tools available to revisit strategies and reinvent themselves in order to avoid exiting the market.

The Malta Chamber of SMEs thanks the different entities that have supported the even in one way or another, including, Malta Enterprise, the Ministry for Economy and Small Business, the Parliamentary Secretary for Financial Services and Digital Economy, the Parlaimentary Secretary for EU Funds, the Malta Tourism Authority, Identity Malta, JobsPlus, the Family Business Office, the Measures and Support Division, Acquiring.com and Cybergate International.

Balance and Sensitivity should be our priority to survive the current crises – Initiatives for Valletta are not events

Posted on by SME Chamber

“Initiatives for Valletta are not events”

Valletta businesses have had a very bad year due to Covid, much worse than that experienced in any other locality. A good number have had to close and let people go. Calling it a day is a very hard decision, and the repercussion of such decisions and being very underestimated today. Waking up not having a job to go to is a very harsh reality with devastating effects on the person and the family.

The Capital city is ideal for many reasons during the current times. It has large open-air spaces and in total Valletta covers a significant area. People are still finding ways to enjoy the outdoors and Valletta is currently safe and under-utilised. Highlighting this function of Valletta and giving the families, seeking to enjoy some quality time safely, a small token of encouragement in terms of free parking is very balanced and sensitive in the current times.

Hopefully a solution through the vaccine is fast approaching and one will be able to return to an increased level of normality, however in the meantime we must be balanced and sensitive to avoid severe repercussions.

People want to go on living their life safely and it is the duty of the Government to provide such a space with the best possible conditions to do so. It is also the duty of the Government to sustain Valletta and private operators in this great time of need.

No Notte Bianca or event-like activity was announced yesterday. Some Christmas lights and kids choir can hardly be referred to as an activity, let alone an event. The Health Authorities have been consulted and there are clear protocols that must be followed. Apart from this everyone has his own responsibilities to follow and the authorities have their important function to address anyone acting in disregard. A few bad apples cannot steal away everyone else’s enjoyment of the Christmas spirit.

Needless to say the SME Chamber is categorically against any irresponsibility and breach of health regulations. Health and the economy are not against each other. Quite to the contrary they go hand-in-hand and we will continue being against any attempts to upset this balance from either side.

Balanced efforts by government to help Valletta Business and save Christmas welcome

Posted on by SME Chamber

Visitors to Valletta will be able to enjoy free parking

 

2020 has changed life as we know it and adapting has proven very hard for everyone, including businesses. Valletta establishments have been hit very hard by the pandemic being very dependent on tourists and cruise liners.

Valletta is having to reinvent itself to survive the crises and make the most of the opportunity it has to showcase the gem it is.

The Malta Chamber of SMEs therefore welcomes the support of the Tourism Ministry, the MTA, the Valletta Cultural Agency and the Ministry for Culture for accepting our views on the matter, in representation of the business community in Valletta, and supporting with key measures that will constitute the necessary lifeline for Valletta.

Valletta has during the recent years undergone a massive regeneration process and today it not only houses top brands and exquisite eateries but it is a true destination for its visitors.

With its large open spaces, beautiful architecture and museums, Valletta will be an ideal spot to get into the Christmas spirit while following safety protocols. Valletta will offer the necessary safe outing many families are hoping to enjoy this festive season.

Visitors to Valletta will be able to enjoy free parking on the following days:

– 27th November (Black Friday)
– 8th December (Feast)
– 13th December (Feast)
– 19th December – 1st January

The capital city will be beautifully decorated once again this Christmas. Apart from this however, visitors will also be able to enjoy a number of regular activities taking place at different areas in Valletta, making the experience even more memorable.

SME Chamber CEO Abigail Mamo stated that ‘Christmas is too much of an important period to be missed and that this initiative strikes the right balance between adapting to the new normal and staying safe while still enjoying life.’

Tourism Minister Julia Farrugia Portelli emphasized on the importance to sustain industry in these difficult times and that this certainly includes Valletta as the main tourism hub. With a 50,000 investment by the MTA, the government will be boosting local tourism for the capital.

Valletta Cultural Agency Chairman Jason Micallef stated that Covid will not kill Christmas and while following the full health protocols the initiative intends to still deliver Christmas to families and visitors, in a bit of a different, yet still beautiful and very enjoyable way this year.

 

Licensed boat operators join the Malta Chamber of SMEs

Posted on by SME Chamber

A group of licensed boat operators that operate non-scheduled charters and pre-booked trips around Malta and Comino have joined the Malta Chamber of SMEs for formal representation in a bid to address recent serious events that are threatening their sector’s livelihood. Transport Malta, the Minister for Transport and the Prime Minister have been informed accordingly.

As per a concession granted through the Comino Ferry Tender and later communicated via Port Notice 1/2020, Transport Malta planned to replace the service offered by numerous small operators that have been in this business for decades. The Malta Chamber of SMEs will be defending the right of these operators not to be sidelined by a single player and consequently keep their place in the market.

Being operators duly licensed by Transport Malta itself, it is highly unjust that the same authority did not involve the already existing and operating players with the drafting of its strategy and instead forged ahead with its drastic, potentially unconstitutional plans that have a direct and clear impact on their business operation. The way the tender was issued also raises serious doubts on its legality in terms of public procurement rules. The move is also deemed to pose a breach under competition law.

The operators have sought redress in front of the Maltese Courts and the Public Contracts Review Board.

Meanwhile, implementation of Port Notice 1/2020 and the Comino Ferry Tender have been temporarily blocked from moving forward. This Port Notice unequivocally states that “In terms of the agreement, the Authority (Transport Malta) will be granting the Operator the exclusive right to provide scheduled passenger ferry services by sea on the route between the coastal area covering Cirkewwa South Quay to Marfa, Malta and the landing places found therein, and the berthing facilities and landing places in Blue Lagoon and Santa Marija Bay in Comino at all times. The Authority shall not authorise other passenger ferry operators to provide the same and/or similar services with the same rights on this route”

On meeting the Chamber of SMEs, the operators explained how they felt cheated that indications given by Government led them to believe that the request would be for a service that would complement theirs and not seek to push them out of the market. Most operators are family businesses that have been long operating and feel they are being pushed aside by an authority that has granted exclusive use of public land to accommodate one large player.

As a Chamber of SMEs, we condemn such an approach from an authority that should use its powers to protect small operators and the best interest of Malta at large. As a Chamber we see no valid reason for the need for such a concession, giving the exclusive right of use being grated to the select company and only bidder through very poor procurement practices.

As a Chamber of SMEs, we have already repeatedly signaled the authorities about the numerous malpractices our members have been experiencing in public procurement. No stone will be left unturned and we will demand that the authorities and those responsible shoulder full responsibility for their actions.

A link to the port notice may be found here.

Malta Chamber of SMEs launches a new image for 2020

Posted on by SME Chamber

“GRTU REBRANDS, MARKING A MILESTONE IN ITS 70 YEAR HISTORY”

The Malta Chamber of SMEs is today unveiling its new name and visual identity. We are positioning the organisation to reflect the modern and contemporary SME representative body it truly is today. Changing its name from the renowned ‘GRTU’ was a necessary step for the organisation to visibly reflect who it represents and how it evolved beyond just retailers and traders to all of Malta’s economic sectors, being micro, small and medium enterprises.

The SME Chamber is the longest standing business representative and has today grown to become the largest by representing SMEs from all economic sectors operating in Malta.  Our services have increased and diversified to cater for the needs of our members and the changing times.

Our new name reflects our wider representation and thanks to EU funding this is being complemented by fresh branding and an outreach strategy that will help spread information about the effectiveness and value of social dialogue.

The President of the Malta Chamber of SMEs, Mr Paul Abela, said that the organisation has been always very vociferous and always spoke freely in the interest of Maltese businesses and the national interest. ‘We have done this irrespective of who is in government because our interest is solely the national interest and as a result that of our members’.

A study undertaken recently with the general public has confirmed how the majority of respondents feel that the organization speaks for the national interest, showing wide appreciation for the important role the organization plays in today’s social, economic and political scenario.

Malta Chamber of SMEs CEO, Abigail Mamo, stated that Malta’s business demographic in terms of diversity of sectors operating in Malta has evolved greatly over the years. The service industry has grown exponentially and many new refined and value adding sectors have entered our economy in recent years and this is reflected in our membership base. ‘With these new sectors joining us we have also developed new services to cater for their needs. Our brand reflects the enterprises we represent and how our own organisation has grown along the years. With our new brand and further service development we are ready to take on the opportunities and challenges facing our members in 2020 and the years to come’.

Malta Chamber of SMEs congratulates Stefano Mallia on being elected President of the Employers’ Group

Posted on by SME Chamber

Malta Chamber of SMEs congratulates Stefano Mallia on being elected President of the Employers’ GroupHeartfelt congratulations to Stefano Mallia on his well deserved appointment.

Mr Mallia has been active in the EESC, representing Maltese employers, for the last 9 years. During this entire time, he has worked close to us as an organisation and has truly succeeding in delivering Europe to Malta and giving Maltese employers a voice in this important forum.

The European Economic and Social Committee is a very important institution being the voice of organised civil society in Europe. It is a reflection of what MCESD is in Malta. It is therefore instrumental and essential to our function as social partners.

As an SME Chamber we have also supported his candidacy and we express our pride on behalf of Maltese SMEs in having a Maltese national and a business person occupy this important position.

We are certain that more positive things will come to Malta and Maltese Businesses with Stefano Mallia’s appointment.