Employer unions call for support in wake of virus outbreak

The Malta Chamber of SMEs has echoed a call made by its EU level representative, SME United, to support EU businesses economically in the wake of the COVID-19 outbreak.

“The first priority of our country should be public health and as an SME chamber we are at the forefront to support this. At the same time, however, we must limit the economic damage as much as possible to ensure a healthy economy post COVID-19.”

“As a chamber representing SMEs from all economic sectors, we can confirm that the coronavirus has already started leaving an impact on businesses. At this stage, the impact varies by sector. With changing consumption patterns some are losing, and others are gaining. There are, however, some sectors that have already suffered significant losses due their absolute dependence on tourism and incoming events.”

The Malta Chamber of SMEs is calling on the government to support these enterprises in order to avoid their closure and job losses by making use of financial instruments to ensure liquidity and provide working capital by using existing state aid rules.

“The impact the coronavirus is having on tourism is expected to last beyond what these enterprises can sustain. With no work, these enterprises will not be able to continue paying their employees. There are possibilities under the de minimis regulation for rescue and restructuring schemes.”

A detailed weekly analysis among sectors will be conducted by the SME chamber to monitor the situation. Reports of such analysis will be presented to the government in order to request support as the scenario continues to develop.

“Whilst initiating the process of the opportunities available under the de minimis rules, the government is also asked to give room to support SMEs with payment for taxes and social contributions.”

The chamber of SMEs was not the only union to speak out. During a meeting with Prime Minister Robert Abela yesterday morning, the Malta Chamber of Commerce, Enterprise and Industry voiced its concerns on behalf of Malta’s business community on a number of issues relating to the COVID-19 situation currently unfolding.

The Malta Chamber of Commerce stated that national health should remain an absolute and indisputable priority, as instructed by the country’s public health authorities and Ministry for Health. “Nevertheless, businesses must be assisted in this time of extraordinary circumstances,” the Malta Chamber said. While underlining the fact that there was no need for panic, the Malta Chamber noted that several business sectors were already facing a downturn in orders and bookings.

President of the Malta Chamber of Commerce Perit David Xuereb reiterated the call for an assistance package for businesses to mitigate any liquidity issues companies may face in the context of temporary loss of business due to COVID-19.

“The government is urged to have a set of assistance measures for businesses in place that will help them weather the storm. The same will also ensure that our businesses can afford to retain all of their resources and stay in fighting shape to be able to bounce back and perform at top level once the current situation is over,” he said.