Rich in social measures, vague on economic recovery – Chamber of Commerce

The Chamber of Commerce noted that this budget does not address the massive impact that COVID is having on operating costs for businesses, and introduces no new measures to support businesses that are struggling on this front.

It reflects Government’s optimism that the economy will recover in the short term, an optimism that is not shared by businesses at large. The chamber said it hoped that should the COVID crisis deepen or extend beyond the next six months, further support beyond that included in this budget will be forthcoming.

The Malta Chamber said it recognizes that the economic stakeholders and decisionmakers must take advantage of the disruption that has been brought about in the past months and seek new opportunities within it. The country must emerge out of this fog more resilient and energized today, for a more competitive Malta tomorrow.

In this regard, the Chamber feels that this budget falls short on the detail on how to achieve this. The Chamber shall continue to pursue such calls but meanwhile comments on the following specific measures announced this evening.

The Malta Chamber welcomes measures related to: 1) the extension of the wage supplement scheme linked to the loss in turnover of operators;

2) the extension of the voucher scheme which the Chamber believes should have been implemented immediately rather than in January;

3) the extension of existing

liquidity measures;

4) a holistic plan to attract the digital and innovative economy such as esports, virtual and augmented reality and 3D printing

amongst others; 5) innovation incentives aimed at companies employing less than 50 persons; 6) green economy measures

The Chamber commends Government’s resolve in terms of Good Governance measures such as the strengthening of the Attorney General Office and Office of State Attorney. Furthermore, it is noted that the authorities are addressing the recommendations highlighted in the 2019 Moneyval report. The positive results of the latter’s assessment will be crucial due to our dependence on foreign investors and the country’s importance as a financial jurisdiction.

The Malta Chamber reiterates that Good Governance and succeeding the Moneyval test amongst others should be seen as a shared responsibility and the private sector is willing to offer any assistance required by the authorities to restore the Country’s long-term reputation.