Chamber of Commerce stresses need to incentivise collective transport
The Chamber of Commerce’s six main issues for its pre-budget proposals revolve around the longterm sustainability of the country’s positive economic growth.
Chamber President Perit David Xuereb explained that this year the Chamber chose to focus its attention on six main issues which the Malta Chamber deemed to be of crucial importance and which warranted the government’s immediate attention.
The six main issues being alternative modes of transport, increased employment costs, reforms in the Rental Market and Construction Industry, the Construction sector, the Financial Services sector and Research, Development and Innovation.
Xuereb commented that the economy is in good shape, earnings are acceptable, people are happy, commerce is chugging along, and employment is pretty much full, going on to say that it is almost impossible to talk about how the local situation can be improved.
What the Chamber President did however note was that the economic growth of the country was shrinking, and their goal was to ensure that the economy’s growth is at the levels that we want it to be.
Increase in Labour Costs
Issues brought up with regards to labour revolved around the continuous extension of leave allowances, increased labour mobility and shortage of labour – which, whilst it was acknowledged that these are not inherently negative aspects, the Chamber maintained that these issues are all having a negative impact on increased labour costs and overall competitiveness of the country on the international market.
“Increased labour costs have by far become the number one challenge for most businesses operating in Malta.”
It was recommended that a thorough analysis of labour-cost inflation vis-à-vis productivity is carried out, and the need for Malta to aspire for an industry vision-driven educational system which prepared our students for the jobs expected to be available tomorrow.
“We must recognise that technology affects efficiency so we must make sure that our people are educated in this area, particularly with artificial intelligence, so that we will not have negative effects on our competitiveness.”
Other recommendations included involving the private sector in the drafting of secondary and post-secondary curricula, introducing the teaching of soft and technical skills such as critical thinking and analysis.
Public Sector recommendations revolved around surveying the current over or under employment across all public entities, fiscal incentives to employers who engage public servants in shifting back to the private sector.
The Chamber also recommended attracting Foreign Nationals from the EU or third countries to fill the labour pool.
Alternative modes of Transport
The Chamber reiterated its wish that the Government further encourages more sustainable modes of transport such as public or collective transport in the upcoming budget.
Xuereb insisted that instead of simply widening and improving roads, there is a need to incentivize collective transport in the upcoming budget.
The recommendations presented were the increasing of already existing fiscal incentives for businesses which offer collective transportation to employees, and the extending of existing car cash allowance to collective and shared mobility systems used by employees.
Rent sector
The Chamber President criticised the rent reform law for not solving anything because it didn’t address the real issue of the price of rent, the illegalities ongoing in the sector, the rents before 1995, or the issue of commercial rent.
“We had many meetings with the Government and we saw that the only way for something like this to be solved is if it starts from the beginning.”
Xuereb insisted that the implementation of the bill which has an unconstitutional measure such as allowing individuals to enter another’s home without permission should be scrapped in its interiority and broadened in scope by including commercial and pre-1995 leases and refined in concept to really constitute a much-needed reform of the rental market.
Restoring the reputation of the Financial Services sector
With the Financial sector in Malta remaining one of the key pillar of the economy, the Chamber of Commerce said that any negative PR on the sector has immediate impacts on all the other economic segments of the economy – particularly with the Moneyval rating of Malta’s anti-money laundering measures.
Their recommendation was for the immediate implementation of the anti-money laundering and Combatting the Financing of Terrorism strategy without further delays, which should be coupled with adequate human and financial resources to make sure that tangible due-diligence is being carried out by all financial operators.
Construction & Development sector
The Chamber President complained that we did not have to wait for three tragedies to take place to decide to act, noting that the Chamber had been talking about this sector for 30 years and nothing ever happened.
With regards to the recent regulating of the sector, they pointed out that it must encompass everything and not just issues pertaining to demolition.
They recommended a complete overhaul of the current building and construction regulatory framework to establish one modern and clear body of laws, obligating all building contractors to join the considerate contractors’ scheme that is audited by an independent body, and setting up the new Building and Construction Authority.
Research, Development and Innovation
Intelligence retention was the phrase used by the Chamber president, meaning that there must be an investment in all schools and those local and foreign minds who decide to invest their time and help the local industry increase its appreciation for technology and new ideas
Other recommendations included the establishing of a new Maltese Research Fund for competitive funding of basic and applied research to be managed by MCAST, and a serious and tangible increase in budget to the Fusion programme managed by the same Mcast.