Author: SME Chamber

Two weeks after the accounts at Sata Bank has been frozen no real timeline has been released. Simple steps to take care of the worries of the investors we have worked so hard to attract such as a customer care system is still completely lacking. Businesses are being given close to no information outside the bank’s doorstep and business closures are knocking on our doors. Responsibility must be taken for the additional damage that is being created.

The fact that the Bank had to be closed and immediate action had to be taken is not being put into question. The regulators are the only ones aware of what the extent of the problems are and how best to deal with them, within the powers conferred to them.

The situation is however very grave. Apart from the fact that this is hitting Malta’s reputation very hard and many businesses that have come to invest in Malta have told GRTU that they will not look at Malta ever again, there is a level of unfairness where the good has been castigated with the bad.

 

 

 

There are genuine businesses that were banking with Sata Bank because their technology was superior and because other banks were too traditional and slow to accept their innovative investments. It was after all a bank licensed by the Maltese Government. These businesses have had their funds frozen, they are unable to pay their employees’ wages, their rents, fiscal contributions, and send or receive any money. Hundreds of businesses are unable to trade. The level of pressure and stress these people are suffering is uncalled for.

We expect the regulator, the Minister for Finance and the bank administrators to act with respect and responsibility because for no reason should people be treated like this and business allowed to close. Everyone is shifting responsibility and hiding behind the powers conferred by law but they themselves are making matters worse. Immediate actions are required to issue procedures of handling these people and their funds.

Who has to pay will pay but who doesn’t should not be treated as collateral damage.

Through the link you can access footage from the last meeting GRTU held yesterday on the subject.

https://wetransfer.com/downloads/72223baa3fadad3939098e046837617820181108180910/fcaa3d27aebbd298e268c14c8bfc943620181108180910/3fa3af

The GRTU is following closely the Satabank issue. Satabank has many clients in Malta who had opened accounts with Satabank and used also its EPOS services. These clients are now facing grave financial and cashflow difficulties.

The issue experienced in the recent past with vast numbers of workers finding difficulties setting up a bank account through the major banks in Malta caused a shift to E-money accounts in Satabank and elsewhere. These, many Maltese businesses and workers, who have Satabank accounts, are now in a state of desperation. The information on what is about to happen is very scarce, with calls to Satabank being diverted to a call centre in Bulgaria.

 

 

 

 

 

 

Besides being alarmed due to the plight of its members, GRTU is also concerned about the effect this is having on retail sales. The fact that Satabank users cannot use the funds in their account means that on the consumer side they are unable to receive moneys and spend and on the business side they are unable to utilise such accounts to trade and sell. The problem is being felt most prominently in the Msida, Gzira, Sliema and St Julians areas.

GRTU is asking businesses who have accounts in SATABANK to contact it urgently as a meeting is being held in order to inform members who are Satabank clients on what corrective measures can be taken to resolve individual businesses’ issues with Satabank as soon as possible. 

GRTU is actively in discussion with all relevant authorities to limit any repercussions this is having on businesses.

Over 200 enterprise owners met this morning for the 2019 edition of GRTU Malta Chambers of SME’s successful event – The SME Conference: Year in Review, co-hosted by Business First.

Opening the conference, the Honorable Minister Chris Cardona said that “SMEs are our country’s biggest generator for jobs and prosperity. Listening to our businesses’ needs and outlooks is essential for us to create meaningful change and adopt accordingly. GRTU is helping us do that. Our collaboration has undoubtedly benefited our local business and economy greatly”.

This year’s conference focused on economic growth and the results of the GRTU study on the subject were published during the event. 

GRTU President, Mr Paul Abela stated that “Our economy is doing very well and the figures are testament of this. When looking deeper however one finds that not all businesses are experiencing it in the same way. It is our duty and that of our policy makers to understand what is happening on the ground and make sure that the distribution of wealth is reaching all our economic sectors.”

Presentations :

GRTU SME Week Survey
Jobs Plus Workshop Presentation
MCA Workshop Presentation
MSD Workshop Presentation
Revolut Workshop Presentation
Claudine Attard Presentation

 

The study shows mixed results in terms of which businesses are doing well with respondents split – half saying they are doing well and the other half saying they are not feeling the benefits of the strong economy. Out of those that are doing well 30% said that their turnover increased by 5%, 47% of respondents said by 10% and 16% said that the increase went up to 20%. To the contrary, the other half of the respondents mostly quoted too much competition and increased costs, which are offsetting the benefits of increased demand.

Human resources related issues are a major concern for businesses. When asked about wage levels 85% said that they have experienced wage increases in the last 3 years, out of which 19% said that the increase was of 5% overall, 42% said up to 10% and 21% said it was up to 20%. When asked if wage increases have resulted in increased productivity 42 % ranged between the disagreed and strongly disagreed and 28% agreed with this statement. The remaining respondents were uncertain. Many have also quoted labour shortages as the main reason why their business is not working to its potential.

In relation to their opinion on the overall wealth and economic growth, most businesses have stated that they attribute the economic growth to the gaming sector and the construction sector are the main players; followed by tourism and the influx of foreign workers.

When asked about the new developments of digital currencies and finance such as  cryptocurrencies and blockchain, 42% said that they don’t know much about them, 21% said they found them confusing and another 21% said that they find them intriguing. 16% said that they are untrusting and that they think it is a scam that will soon end.

GRTU closed the conference with four workshops that focused on labour shortages and its implications; Brexit; EU funding and lessons learnt and digital progress for business. Ms Marika Gonna, CEO of Business 1st delivered the conference’s closing remarks.

Dan il-baġit se jolqot b’mod pożittiv lin-negozji żgħar u medji għal erba’ punti prinċipali:

1. Jogħlew il-pagi u l-benefiċċji, allura flus fil-but li se jiġġeneraw aktar negozju.
2. Persuna self-employed li n-negozju tagħha jfalli u tispiċċa bla xogħol issa se tkun tista’ tibda tieħu l-benefiċċji li jieħdu l-ħaddiema bla xogħol.
3. Li, kif ipproponiet il-GRTU, il-baġit żied is-sussidju biex in-negozjant iż-żgħir ikun jista’ jew tista’ jkollha pensjoni oħra u b’hekk ikollu żewġ pensjonijiet u futur aħjar.
4. Tkun estiża l-iskema li meta persuna tgħaddi n-negozji tagħha lil uliedha se tkun qed tiffranka somom konsiderevoli f’taxxa tal-boll minn 5% għal 1.5%

 

 

 

 

B’ekonomija b’saħħitha u bis-surplus, in-negozjanti iż-żgħar stennew:

1. Li titnaqqas b’mod sostanzjali t-taxxa.
2. Li t-tnaqqis fit-taxxa jkun qed jindirizza l-vantaġġ li għandhom in-negozji barranin.
3. Li tikber l-iskema tal-Microinvest li biha negozji jieħdu rifużjoni fit-taxxa fuq l-investiment li jkunu għamlu.
4. Inizjattivi biex tindirizza l-problema serja ta’ nuqqas ta’ ħaddiema.

Il-GRTU filwaqt li tinnota b’sodisfazzjoni li diversi inċentivi mis-snin imgħoddija ġew estiżi, għal din is-sena tħoss nuqqas serju ħafna f’dawk li huma ideat ġodda li jinċentivaw in-negozji ż-żgħar. Qabel il-baġit, il-GRTU għamlet diversi proposti li baqgħu ma ġewx ikkunsidrati.

Revolut, the fastest growing FinTech in Europe, which officially launched in Malta in September providing advanced and more affordable digital banking alternatives is the banking of choice for GRTU Malta Chamber of SMEs.  

Revolut will be providing GRTU members with an exclusive 3 month free subscription. It is estimated that this incentive will potentially reach close to € 1 Million in value for 7,000 companies based in Malta

GRTU believes in the principles Revolut stands by and is a welcome breath of fresh air as a digital banking alternative. GRTU has been fighting and arguing against exorbitant and hidden fees and expensive access to finance. Revolut so far have provided a very good first step and we are excited to continue working together and developing new products for the needs of our members. It is high time that Maltese businesses are charged a straightforward cost that is not percentage based and does not include exorbitant costs, hidden profits or fees.

 

GRTU President Paul Abela stated that “GRTU joins our Prime Minister Joseph Muscat in welcoming Revolut to Malta and we will endeavour the best of our efforts for it to succeed and give a much needed service to Maltese enterprises”. 60,000 companies around Europe already signed up for Revolut Business, so it’s perfect timing for Malta to join the party!

Revolut Business provides a comprehensive service by linking their product to other software that facilitates the monitoring of cash flow, automation of workflows and automated accounting amongst others, all linked to the company’s digital banking. Revolut will be holding a number of workshops with its counterparts for GRTU members during the year to come.

Companies can also enjoy free international bank transfers and fee-free currency conversion. This is particularly interesting for companies who are doing international business and need to move money fast, safe and without paying ridiculously high banking fees. Companies can also benefit by issuing corporate cards for their staff, and track the whole team’s business expenses instantly, set spend limits for each employee and easily block cards if they are lost.

Last but not least, Revolut Business offers a modern Open API that allows companies to seamlessly integrate their business bank account into their workflow. As a result, they can automate cross-border business payments, send payouts to clients or employees and monitor transactions according to business’ needs.

This is what businesses need in this digital era and this is the service that consumers expect. GRTU and Revolut are committed to make it happen.

On behalf of Revolut: Philip Maurice Mifsud – Revolut Country Ambassador.

The President, the Executive Council and the local business community mourns the loss of Mr. Joseph G. Grech who was the President of the Gozo Chamber of Commerce for a number of years. Many of GRTU’s councilors have worked closely with Mr. Grech on various fora and have always found him obliging and willing to help with enthusiasm and zest.

Mr. Grech has represented the Gozo business community on prestigious boards such as the MCESD, MEUSAC and the Enterprise Consultative Council amongst others. Members of GRTU’s Executive Council have always spoken highly of Mr. Grech and his contribution to the discussions on various subjects. Mr. Grech was an example to others in the way that he was always well prepared for every meeting.

We offer our sincere condolences to Mr. Grech’s Family.

GRTU Malta Chamber of SMEs has today been awarded the first prize with its initiative entitled Enabling the Digital Transformation of Maltese SMEs within the category of Supporting the Internationalisation of Businesses.

Within this initiative GRTU has undertaken many activities for Maltese businesses to increase their online presence and help Malta reap more from being part of the single market. Amongst the initiatives undertaken are financial incentives to help small businesses go online, publication of a guidebook, development of an online learning tool and a themed conference.

GRTU has been working hard to help Maltese businesses take the next steps when it comes to their online presence. Statistical research showed that after only a few years of EU membership, internet penetration for Maltese households was increasing drastically and Maltese consumers buying online increased from 26% in 2007 to 51% in 2010.

 

 

 

Left to right – Marthese Micallef – GRTU Council Member, Paul Baldacchino – Chief Officer, Business 1st Ltd, Abigail Mamo – CEO, GRTU

Unfortunately most of the money of Maltese consumers was being spent abroad without Malta attracting anywhere close to the same numbers.

A challenge that is still on the horizon, and that GRTU will be tackling, is the high delivery costs of online purchases. This unfortunately is much more expensive when compared to the majority of other EU countries. Unless this issue is mitigated Malta’s eCommerce success will remain at bay when trying to compete with much larger countries that benefit from economies of scale and other non-EU countries where the government is free to subsidize delivery costs to attract online shoppers.

GRTU’s initiative is now also being nominated to compete in the European Enterprise Support Award that will be held in Austria later on this year.

GRTU’s joint initiative with government – Business 1^st Ltd – also won first in its category of Improving the Business Environment.

 

Il-Burdnara Sectional Committee fi ħdan il-GRTU tistqarr it-tħassib tagħha dwar id-dewmien żejjed u l-mod li qegħdin jiġu trattati burdnara li joperaw mill-Port Ħieles

Dan id-dewmien b’mod partikolari, qiegħed jinħass nhar ta’ Tnejn fejn jidħlu ammont kbir ta’ trailers. Il-GRTU tirrimarka li kienet ressqet suġġerimenti minħabba n-numru kbir ta’ trailers li kull ma jmur qegħdin jidħlu fil-Port Ħieles. Fid-dawl ta’ dan, bl-istess mod għandhom jiżdiedu r-riżorsi u l-investimenti tal-Malta Freeport Corporation biex il-ħruġ jkun faċilitat. Il-GRTU ilha żmien twil tisħaq biex tiġi miftuħa gate oħra eżistenti u jiżdied l-istaff biex b’hekk jitħaffef l-proċess u jittaffa d-dewmien esaġerat li jiffaċċjaw ma’ wiċċhom il-membri tal-GRTU ta’ kuljum. Din il-gate għandha tintuża għal ħruġ ta’ Roro trailers u xogħol ieħor konvenzjonali bħal żrar u ħadid li żdied fil-Port Ħieles. Il-gate prinċipali u eżistenti għandha tibqa’ tintuża biss għal ħruġ ta’ containers.

 

Il-GRTU tinnota li l-proċedura li bdiet titħaddem fl-aħħar xhur fuq li scanning tal-containers qed toħloq dewmien żejjed u spejjeż żejda għan-negozju tal-burdnara. Il-GRTU tinsisti, li l-containers li dwarhom tkun meħtiega scan, mal-wasla tagħhom f’Malta, għandhom jintbagħtu għal dan l-scan, immedjatament meta l-container jinħatt minn fuq il-vapur fi triqtu lejn il-post fejn se jinħazen ġewwa l-Port Ħieles. Dan anke fid-dawl li l-Port Ħieles jieħu ħlas ta’ €194.97 fuq containers tal-għoxrin u €306.38 fuq containers tal-erbgħin pied. Għaldaqstant, l-scan hija parti mir-responsabilità tal-Port Ħieles u mhux tal-burdnara. B’riżultat ta’ dan il-GRTU tinsisti li għandu jkun hemm iktar effiċjenza f’dan l-proċess.

Fuq il-banda l-oħra, l-GRTU ilha żmien twil tisħaq li għandhom isiru iktar sforzi biex titwaqqaf il-kompetizzjoni nġusta speċjalment fuq xogħol li għandha titħallas SISA fuqu u li jiġi fi ‘groupage trailers’. Dan wara li ġie nnottat li l-groupage trailers mhux kollha qed jitilgħu Hal Far Groupage Complex meta jiġu mil-Portijiet Maltin, imma xi wħud qed jittieħdu direttament f’bondijiet privati. Tista’ d-Dwana tikkonferma li xogħol li ġej bill-baħar u fi ‘goupage trailers’ qiegħed jiġi sottopost għal-istess livell ta’ skrutinju bħal ma jiġi sottopost xogħol li jgħaddi mill-Hal Far Groupage Complex? Dan għaliex merkanzija oħra li tgħaddi minn Hal Far Groupage Complex, fejn il-Membri ta’ dwana huma preżenti, tiġi ċċekjata u jsiru l-kontrolli kollha biex jiġi aċċertat li l-merkanzija tiġi ddikjarata, tkun konformi mall-liġi u kull ħlas neċessarju ikun sar. B’riżultat ta’ dan, tista’ id-Dwana tikkonferma kif qed isiru kontrolli fuq trailers li jintħattu f’bonds privati bl-istess mod li qegħdin isiru fil-Hal-Far groupage Complex? F’dan ir-rigward il-GRTU issostni li biex titwaqqaf il-kompetizzjoni nġusta anke fuq l-importaturi li l-merkanzija tagħhom tiġi iċċekjata u proċessata kif tgħid il-liġi, l-Groupage trailers li jġorru merkanzija u li jkunu suġetti għal SISA, għandhom jintbagħtu fil-Hal-Far Groupage Complex.

Il-GRTU tinnota li diġa’ attendiet għal diversi laqgħat mal-Awtoritajiet kollha responsabbli fosthom id-Dwana u l-Port Ħieles iżda ma kien hemm l-ebda żviluppi fuq dawn l-proċeduri nkwetanti għal burdnara u għall-operat ġust tal-verifiki marbuta mal-merkanzija. Il-GRTU tinsisti li dawn it-talbiet u mistoqsijiet jiġu ndirizzati mingħajr dewmien. Il-GRTU se tkun qed tistenna li l-Gvern jikkomunika mal-GRTU f’perjodu ta’ 10 t’ijiem biex jiġu ndirizzati b’mod effettiv dawn l-materji. Fin-nuqqas ta’ qbil jew azzjoni effettiva, il-GRTU se tkun qed tieħu l-azzjonijiet kollha meħtiega. 

As the General Data Protection Regulation (GDPR) comes into force today, GRTU Malta Chamber of SMEs would like to note that whilst supporting the rights of citizens and the importance to protect their personal data, we need to give more times for fuller implementation by businesses.

The aim of the GDPR is to bring all member states in line under one common regulation. The GDPR increases privacy for individuals and aims to ensure that personal data gathered is gathered lawfully and with the individuals’ full consent. The new regulation also gives regulatory authorities more power to act on those who do not comply. In this regard, local authorities can now impose harsher fines with up to 4% of annual turnover or Euro 20 million, whichever is greater.

 

 

In order to prepare its members for this regulation and in light of the serious implications this regulation brings about, GRTU has for the past months organised a number of information sessions, seminars and conferences for its members. Through these seminars, members where given the the necessary information and tools to bring their business in line with this regulation.

GRTU however notes that the GDPR is unfortunately not the easiest legislation to comply to. It is cumbersome in many ways, failing to make a distinction between SMEs and larger organisations. Moreover this regulation is also very subjective and in many ways open to interpretation. 

Although GRTU believes that its members are doing their best to comply with this regulation, one cannot expect business to become fully compliant right from the start. 

GRTU joins the rest of EU employer organisations, and encourages local enforcement authorities to guide above all and give out warnings rather than impose fines, during the first year of implementation. This is being proposed with full respect toward EU and local legislation and without the aim of undermining such legislation.

GRTU will remain available to assist its members throughout the process.