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Category: Press Releases

Press Release: SME Chamber augurs for stability for the well-functioning and advancement of the Education sector

Posted on by SME Chamber

SME Chamber and its members look forward to experiencing it being led with the seriousness and commitment that is required and expected

The Malta Chamber of SMEs, in representation of a number of sectors directly dependent and affected by the Ministry for Education, amongst which licensed private educational institutions, wishes to pass on its congratulations to the new Minister Hon.Clifton Grima and Permanent Secretary Mr. Matthew Vella.

While auguring them all the success in their new role, the SME Chamber and its members assure them with their cooperation and commitment to drive the private education sector forward.

It must unfortunately be said that the Ministry has been marred by a lot of turbulence and this has made work and collaboration extremely difficult, with energy and initiative not achieving the desired results. Education is the most important pillar on which our society and our economy is built on.

As such, the SME Chamber and its members look forward to experiencing it being led with the seriousness and commitment that is required and expected. This will enhance the quality in this sector and we are fully committed to contribute in this regard.

The Malta Chamber of SMEs has full faith in the capabilities of the new Minister and Permanent Secretary. It is important that our policy makers at large invest in full in supporting the stability in this Ministry as its functions are crucial.

The Malta Chamber of SMEs firmly believes that both Hon. Dr. Clifton Grima and Mr.Matthew Vella are more than capable with improving the education state of affairs in Malta. Both Dr. Grima and Mr. Vella have always kept an open line of communication and closely collaborated with the SME Chamber with the aim of finding a workable solution for issues faced.

PRESS RELEASE: Green MT continues to deliver and make the environment a priority despite the challenges

Posted on by SME Chamber

Malta Chamber of SME’s Green MT is a private entity specifically set up 15 years ago to help businesses in complying with the many environmental obligations. Rather than leave it up to the Government to create state owned solutions, or through ECO taxes which would both be expensive and wasteful, the Chamber had decided to create its own scheme. Green MT has been working hard against all odds to implement the EU’s “the polluter pays principle” since the first Packaging Directive. After all these years the waste sector continues to be difficult and problematic. Under different administrations and individuals responsible for the waste sector, there never was a quick fix solution and there is none now. Green MT has throughout continued supporting the business community to meet their obligations and has been providing uninterrupted services across Local Councils got the past 15 years in spite of countless hurdles.

As private citizens we all need to do our bit. Although we have seen the public steadily taking up the challenges to separate waste, clearly, we still have a long way ahead. We must continue relentlessly to safeguard the environment for future generations. The underlying themes highlighted in the COP26 conference are the principles Malta must strive to keep in focus. It is abbunduntly clear that we are already at the point of no return. We must act now and without further delays. Each and every one of us has a role to play but without cooperation and a joint effort little will be achieved.

Green MT therefore reiterates that despite these challenges it will continue to work hand in hand with the business community, households and the various authorities. It will continue educating, encouraging and incentivising to cause change in the right direction to ascertain that only recyclables reach Wasteserv MRF Facility.

Policy makers are key coordinators to the overall strategy and as such Green MT will be meeting and cooperating  with Hon Aaron Farrugia as the responsible Minister, WasteServ and ERA in order to achieve overall better results. WasteServ’s approach to paying only for recyclables received at their facility is supported by Green MT.

The Chamber of SMEs and Green MT appeals to the general public and the business community to care and to take own responsibility and safeguard the future of the generations to come by doing their bit in separating at home and the workplace. From the waste Green MT collects, Green MT is aware that there is significant room for improvement in how individuals deal with waste and this is a main area where its efforts will be invested.

Most serious approach expected in Rfp process for the National Lottery

Posted on by SME Chamber

Many livelihoods depend on the well-functioning of the concession agreement

The Lotto Receivers Union (LRU) and the Gaming and Lotteries Agents Association (GLAA), both part of the Malta Chamber of SMEs, emphasise, as direct stakeholders in the National Lottery system, how important it is to ensure the highest standards in governance and diligence in the evaluation process that will choose the next concessionaire.

The last concession lasted 10 years and therefore once the bidder is confirmed a long-term track record is expected. The concession is a contract of significant importance, with tens of millions in commitment, and therefore there is no room for error.

Lotto Agents have been present since the very beginning of the process, when the National Lottery was still directly run by the then Public Lotto, well before it was issued in the form of a concession, some ten years ago. Till today over 210 Lotto Receivers and Sellers, 465 seller assistants and their families depend on this concession for their livelihoods.

In the run up to the concession the LRU, the GLAA and the SME Chamber have presented proposals to the government with the aim of learning and improving on the past experience and we are pleased to note that the Rfp reflects a number of important improvements. An important point highlighted in the proposals is to give significant weight to the seriousness and repute of the bidders and for these to have an already proven track record.

In Malta’s situation, the country does not afford mistakes and the life of businesses has already become overly difficult due to the impact of the FATF Greylisting and the AML requirements. The government must do everything in its power to ensure that the sector is not overshadowed by additional bad light and that choices are based on a healthy functioning sector.

Press Release: Pharmacies opening on Sunday

Posted on by SME Chamber

The Chamber of SME’s will continue consulting its members

The Chamber of SME’s, along with the Chamber of Pharmacies, have been in discussions with Government to enhance the Pharmacy Service even on Sundays.

This is no easy task. There are large logistical and other costs involved, and any enhancement of the service must take this into account. There is also a human cost in the equation to consider.

It is a known fact that the pharmacy service in Malta is one of the best, however, times change, and necessary tweaking is essential in order to improve an already excellent service.

The Chamber of SME’s will continue consulting its members and work towards an equitable solution that will ensure a fair compromise.

Press Release: Malta must address its insularity issues for Maltese businesses to be competitive

Posted on by SME Chamber

The SME Chamber supports the proposal presented by the Opposition to address Malta’s Insularity and market limitation

The Malta Chamber of SMEs has been highlighting the big problem Maltese businesses have with the inability to compete both outside Malta and in Malta itself, with online purchases. The weakness in being competitive with prices comes as a result of the high level of additional transportation costs that need to be accounted for as well the issue of economies of scale.  

 Malta’s economy has a number of handicaps, being a small island economy, that makes goods entering Malta much more expensive than that in any other country.   

 This problem has recently grown to a much bigger proportions at the close of 2020, with the cost of international shipping going up even by 10 times. Being a small island state Malta has no other option but to be reliant on imports by sea. Other countries have shifted more of their imports on land-based transport and have stronger manufacturing streams, making them less dependent on imports in the first place. Malta needs to address this problem in the short to long-term.  

Apart from this, Maltese Importers and Retailers have, at the same time, also been very negatively affected by Brexit. Malta’s small market does not justify the level of bureaucracy, and additional cost associated with it, for UK businesses to export to Malta. The deal the EU struck with the UK does not take into consideration Malta’s circumstances. This, in most cases, means that importers end up passing on the increase in costs to consumers. In some other cases it means losing the supplier they have been importing from for many years and removing products, that consumers have long become accustomed to, from the Maltese market.    

 The Malta Chamber of SMEs therefore supports the proposal presented by the Opposition to address Malta’s Insularity and market limitation. The SME Chamber has already presented the following proposals to address this serious problem in its Budget Proposals for 2022:  

Click here to download all proposals

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.