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The greatest reassurance of this Budget is that the energy subsidy will remain for as long as necessary. This offers basic but very important assurance.

The SME Chamber notes that in the Budget speech there was no emphasis or new incentives on how to SMEs can be strengthened.

Another important topic was the plan to renew the economy and it seems that the Government wants to attract economic growth from high-end sectors. Targeting high-value adding sectors is important. At the same time however we are forgetting the absolute majority of the businesses that contribute towards the Maltese economy.

It is therefore more important to see that our country’s small and medium-sized businesses are incentivised to renew and modernise to be future proof.

The SME Chamber will therefore continue to work to address this gap and give priority to Maltese SMEs.

The Malta Chamber of SMEs earlier today published the results of the SME Barometer (Q3 2023) Survey conducted amongst a total of 423 businesses (50.35% – Micro, 33.80% – Small, 13.95% – Medium and 1.9% – Large.

When asked what are the topmost important issues concerning their businesses, the data reveals the major concerns and challenges faced by businesses in Malta are categorised by the number of employees. In general, and across the board, the most pressing issues across all Business sizes are Employee Shortage (41.10%), Increase in Inflation (30.2%) and Unfair Competition (21.04%).

The primary contributors to business concerns when it comes to the national situation, across all sectors continues to be the lack of good governance (37.10%) and the increase in inflation (32.86%). These challenges have remained consistent from the previous quarter (Q2 2023), affirming their sustained importance and concern.

The Q3 SME Barometer introduced new choices, in particular on the perceived level of corruption (37.35%) and the nation’s overpopulation (27.4%) and concerns on the quality of life (14.89%). These new choices also scored high, which continues to underpin the survey results with the evolving issues highlighted during this quarter.

Abigail Agius Mamo said that ‘The businesses overall sentiment continues to show that Businesses are feeling uncomfortable with the direction they are seeing Malta heading towards (79.90%). This shows that businesses in general are not happy with the direction the country is heading to and a need for change in direction is imminent’.

The data shows that overall businesses’ sentiment continued to shift when compared with Q2, 2023. The change is a significant one, being it of 16% from Q2 to Q3.

Businesses, regardless of their size, are still facing considerable uncertainty when it comes to making investment decisions for the next year (54% – Unsure).

Finally, businesses were asked what the main contributors are leading to inflation, in general, businesses believe that the main factors leading to inflation are mainly due to Employee wage and salary costs (56%). This includes the cost of recruitment, employee turnover and actual salaries.

Misco Director Mr. Lawrence Zammit noted that Employee wage and salary costs cannot be disregarded, and any foreseen increases need to be complimented with an increase in productivity, this is to avoid wage inflation and ensure sustainability.

Mr. Paul Abela said that the country is at cross-roads and it is clear that a change in economic direction is imminently needed. He hopes that next Mondays’ budget will tackle these issues and address them directly.

The SME Barometer survey is a collaborative effort between the SME Chamber and MISCO.

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In the dynamic landscape of human resources, maintaining a competitive edge in the job market is essential. Companies eager to attract, retain, and motivate their talent must possess a comprehensive understanding of industry compensation trends. Salary benchmarking tools help business leaders in accomplishing this as they are invaluable instruments that offer numerous advantages to organisations, enabling them to make informed decisions regarding employee compensation.

One of the primary advantages of using a salary benchmarking tool is gaining a competitive advantage. Staying informed about current salary trends in your industry is vital for your organisation to remain competitive in the talent market. A compensation strategy based on well-founded information ensures that your company can attract and retain the best talent, giving you a distinct edge in the competitive Maltese labour market.

Moreover, salary benchmarking tools provide access to a treasure trove of real-time, accurate data on salary and benefits information. This data empowers HR professionals and business leaders to make informed decisions about employee compensation and it reduces the guesswork and subjectivity that often accompany compensation decisions, ensuring that pay rates are fair and competitive.

To attract top talent, you must offer competitive salaries. Salary benchmarking tools help you identify the appropriate salary range for a given position, making your job offers more enticing to prospective employees. This can significantly enhance your recruitment efforts and help you stand out as an employer of choice.

Having said this, retaining top talent is as crucial as attracting it. Employees who feel they are fairly compensated are more likely to remain with their current employer. Salary benchmarking tools allow you to review and adjust compensation packages to ensure that your existing employees are compensated fairly, reducing turnover and the associated costs.

In addition to comparing your salaries with industry standards, these tools provide valuable insights into market trends. You can assess whether your organization is aligned with industry practices or if it is falling behind. This knowledge empowers you to make proactive changes and adjustments to stay competitive. On the other hand, making data-driven decisions about compensation can lead to cost savings in the long run. Instead of overcompensating employees, you can allocate resources more efficiently, directing them toward areas that have a more substantial impact on your business’s growth and success.

Salary benchmarking tools have become indispensable for modern HR professionals and organizations. They offer a number of benefits, from enhancing your competitive advantage to supporting data-driven decision making, attracting top talent, and retaining existing employees. With the assistance of these tools, you can fine-tune your compensation strategies to align with industry standards and your organizational goals, all while promoting fairness and compliance. In today’s fast-paced business environment, using a salary benchmarking tool is not just an option; it is a strategic imperative for success. The insights provided by these tools empower organizations to make decisions that are not only equitable but also propelling them towards success in the talent market.

*Sponsored article by Misco Malta

The Malta Business Registry would like to advise that a new deposit box has been installed on premises specifically at the garage entrance, on Vendome Lane.

The box is intended to accept clients documents and will be open from Monday to Friday between 8 AM and 6 PM. The box will be closed at all other hours.

To access the deposit box, please follow the signs from the main building entrance.

Please note that while the deposit box will still be open during the times mentioned in this communication, any documents deposited after 2:30 pm will be stamped with the next business day’s date and will be considered to have arrived on the next business day.

The MBR appreciates your cooperation in using this new deposit box. MBR said that their intention is to make it easier and more convenient for clients to submit their documents.

 If you have any questions or concerns, please do not hesitate to contact MBR at 2258 2300 or .

In the ever-evolving business landscape, the success of your business hinges on the skills and adaptability of your workforce. In the midst of the ‘European Year of Skills’ there has never been a more opportune moment to focus on reskilling and upskilling of employees. While SMEs may have limited resources, there is a valuable avenue often overlooked: soft skills training.

Many SMEs allocate their training budgets predominantly to technical or job-specific training. While these are undoubtedly essential, the importance of soft skills should not be underestimated. Soft skills are needed to do the essential technical skill and in today’s fast-paced and dynamic world, the ability to adapt, communicate effectively, collaborate, and lead can set your business apart.

Investing in soft skills training is a strategic move that will maximise the potential of your training budget. The business environment is constantly evolving, with technological advancements, market shifts, and global challenges. Soft skills like adaptability and resilience are crucial for employees to navigate these changes successfully. Skills like effective communication and time management can improve your team’s productivity and efficiency by fostering a collaborative and inclusive workplace culture. Employees who can work well in teams are more likely to tackle complex challenges and innovate effectively. Hence, employees with strong interpersonal skills are better equipped to understand and meet customer needs, which can boost customer satisfaction and loyalty – the most important stakeholder of the business.

The added benefit to all of this is that investing in soft skills training shows your commitment to your employees’ personal and professional growth, which can improve retention rates and reduce hiring costs. Identifying the specific soft skills gaps within your workforce is essential and can be carried out by conducting surveys, performance evaluations, or employee feedback sessions.

The EU’s focus on skills this year means there are ample opportunities and resources available to SMEs for reskilling and upskilling. Many training institutions provide a wide range of courses covering soft skills such as communication, emotional intelligence, leadership, and adaptability. Training funds are also made available and easily accessible.

The success of businesses is closely tied to the skills and capabilities of its workforce. Therefore, business must make the most of training budgets by balancing technical training with soft skills development. This investment will pay off in terms of improved performance, employee satisfaction, and a stronger, more resilient business.

*Sponsored article by Misco Malta

The Malta Chamber of SMEs announced its Budget proposals for 2024. The Malta Chamber of SMEs Budget priorities for 2024 are:

The full set of proposals can be founder here: Malta Chamber of SMEs Budget Proposals 2024. 

The below is a summary of the main proposals presented: 

Our country is faced with what feel like insurmountable global challenges on which Malta has no control. In reality however there is a lot that Malta can do to directly and indirectly mitigate the impact of the waves reaching our shores. One example is the subsidy on the price of electricity that has spared Malta further inflationary pressures. The SME Chamber is putting forward proposals which are in line with Malta’s priorities as they aim to address our national challenges.

If we had to choose three segments we would surely start with inflation as a challenge which is afflicting both consumers and businesses. The SME Chamber is proposing a number of fiscal measures that will help improve affordability and the investment appetite, both of which have been dented by inflation, amongst other. Two of the proposals put forward are also listed in the PL Electoral manifesto, these are the widening of the tax brackets and reducing corporate tax.

The SME Chamber’s proposals are more aggressive given that, since the electoral promises, the global situation has deteriorated necessitating a greater degree of intervention. In terms of widening the tax bracket, the SME Chamber believes that the non-taxable income should go up to 14,000 as opposed to the current 10,000. In terms of corporate tax the SME Chamber feels that a business tax, which does not only alleviate the tax burden on the corporates is fairer. The reduction of 25% from the current 35% does not go far enough. The government should take the opportunity to reduce tax on local businesses also to diminish the unfairness with foreign businesses coming to Malta who effectively end up paying just 5% tax, improving the competitiveness of local enterprises. Other fiscal measures that address inflation is lowering VAT on essential goods and services as well as the removal of excise tax.

A second priority is the human resource crises that Malta is facing. Shortage of labour is driving up wages, yet the quality of our workforce has dwindled. Recruitment and retention is costing more than it has ever have. The SME Chamber is proposing tackling this problem with multiple interventions, including a secondment plan from public to private sector, joint stakeholder coordination to ameliorate the process of engaging TCNs, attractive retention programmes to be able to retain the right TCNs instead of them moving to other EU countries that offer more attractive conditions, as well as the restart of modern trade schools.

The SME Chamber is cognisant that Malta’s finances are under heavy pressure and therefore we are putting forward proposals that aim to help government spend more wisely. A reform in the public procurement system would lead to greater scrutiny of how public funds are being spent and that the best quality for the cheapest price is acquired. The way public procurement is currently being handled leaves much to be desired, direct orders, going way over budgets, poor planning and strategy are leading to tax payers’ money not being used adequately as it should be.