The Malta Chamber is pleased to announce that it will be hosting a debate between Prime Minister Robert Abela and Leader of the Opposition Bernard Grech. This debate will be live on Facebook on Wednesday 16th March 2022 at 11:00am. Members of the business community will be invited to attend for this discussion.
This week The Malta Chamber published it Pre Election document, ‘Time to Step Up`, featuring 100 recommendations addressing; Economic Recovery, Resilience & Growth, Good Governance, Human Capital & Education, Infrastructure & Digitalisation and Sustainability.
The Malta Chamber expressed its full support with the Ukrainian people, agreeing to concrete actions to stand up against the violent stance adopted by the Russian Government. The present humanitarian situation and the right of every country to protect its sovereignty goes beyond purely commercial interests. The circumstances warrant the imposition of effective sanctions.
The Malta Chamber of Commerce, Enterprise and Industry will not be issuing Certificates of Origin for fuel oil originating in Russia or Belarus with immediate effect. As the entity responsible for issuing Certificates of Origin, the Malta Chamber of Commerce, Enterprise and Industry will not be issuing Certificates of Origin for fuel oil originating in Russia or Belarus with immediate effect. The Malta Chamber is monitoring the issue of sanctions and will communicate relevant developments with its members as they arise.
While it is a fact that such sanctions will also hurt third-party business interests as well as Russians who may not necessarily agree with the war being waged against the Ukraine, the invasion of an independent, sovereign country is first degree warfare that calls for firm, consolidated international action. The Malta Chamber appealed to Government to ensure that appropriate actions are taken against any holders of a Maltese passport connected to the Russian Government. This will ensure and safeguard the national interest at EU level and Malta’s international credibility in terms of our commitment to support the international community in responding decisively and collectively to what is a clear threat the security and stability of Europe. The decision to suspend new applications for citizenship from Russian and Belarusian passport holders is hence a step in the right direction.
The Russian Government is destroying the lives of millions, from those being killed in the Ukraine to those being rendered poor overnight in Russia due to the direct consequences of war. Mindful of the gravity of the situation, the European Union is taking unprecedented actions, which the Malta Chamber urges the Maltese Government to support in the most unequivocal of ways. It is only through decisive collective action that we can hope to dissuade the Russian Government from pursuing a protracted course of action that will bring nothing but devastation and threats of mass destruction on European soil.
The Malta Chamber commended Government’s pledge to provide oncology treatment to patients who are fleeing the war and appealed to Government to facilitate the entry into Malta of Ukrainian refugees, particularly those who may already have relatives living and working in Malta. The offer by a number of leading hotels to host refugees while they quarantine is a noble act of solidarity. Businesses operating in other sectors have offered assistance in other forms, and The Malta Chamber is currently assessing how best to channel this assistance, mindful of the fact that many refugees could be arriving in Malta in the coming weeks and will need substantial help.
The President of The Malta Chamber, Marisa Xuereb, met with the resident Ambassador of Poland, H.E. Tomasz Czyszek, to discuss the situation at the Polish border with the Ukraine. On behalf of the Maltese business community, Ms Xuereb strongly condemned the brutal attack on the sovereignty of Ukraine and expressed solidarity with the Ukrainian people who are bravely defending their country in the face of the most menacing threat to European stability since the end of the Cold War. She also expressed appreciation for Poland’s efforts in welcoming many thousands of refugees, mostly women with children and elderly, through several reception centres that Poland has set up along its border with the Ukraine. In the spirit of solidarity, she extended the business community’s wish to actively help these refugees.
Atlas Insurance has donated €6,600 to Adam’s Memory Fund, which was set up by staff member Angele Cocks Zammit Mckeon (Manager, Personal Insurance) and her husband Clive Cocks, following the unfortunate passing away of their baby, Adam. TeamAtlas collected €3,300 as part of their annual Christmas donation, and that amount was doubled by Atlas to €6,600.
In total, Adam’s Memory Fund collected €10,500 during this period. Founder Angele explained that the money collected was donated to different organizations which provide care to vulnerable children and their families.
She said: “This was quite an emotional experience, but it has given us so much back. Knowing that we put a smile on a child’s face during the Christmas period has given us some of the love we are so longing for following the demise of our young child.”
“I want to thank all who showed us support through their donations, and to TeamAtlas, who I am a proud member of, for once again stepping up and showing support to us,” Angele said.
Adam’s Memory Fund donated €5,000 to the Maltese Ursuline Sisters of St. Angela Merici, which runs nine homes around Malta and cares for poor and abandoned babies and young children.
Puttinu Cares, a well-known charity that provides care and accommodation to the families of children seeking cancer treatments abroad, received a €3,000 donation from the funds that were raised.
Angele and her husband Clive also spent €1,400 on toys which were donated to the Rainbow Ward play area at Mater Dei. Another €1,100 were given to The Remembering Fran Foundation, a voluntary organization which works to provide sick children with medication and equipment they need, as recommended by consultants at Mater Dei Hospital. NGO Smiling with Jerome, which was set up in memory of cancer victim Jerome Frendo, also received a €600 donation from Adam’s Memory Fund.
As part of the WE MAKE Project, the Malta Business Bureau, The Malta Chamber and Energy and Water Agency launched a set of workshops aimed at improving energy efficiency in manufacturing SMEs. The workshops will be held every two months over 2022 and focus on three topics: B2B best practice sharing, financing for energy efficiency projects, and innovation in energy and water efficiency.
The first workshop focused on financial measures supporting energy efficiency, with overviews of several grants available to the Maltese business community, including the EWA energy audit grant, and three Malta Enterprise grants: Smart and Sustainable, Change to Grow, and Investment Aid in Energy Efficiency. This was moderated by Ing. Patrick Spiteri Staines, Chairperson of The Malta Chamber’s Energy Efficiency and Conservation Committee.
The EWA energy audit grant offers financial support for small to medium businesses to carry out energy audits. On the other hand, the Malta Enterprise Smart and Sustainable measure supports business investments that lead to more sustainable and digitalised processes, leading to the enhancement of competitiveness through resource efficiency. The Malta Enterprise Investment Aid in Energy Efficiency measure supports businesses in implementing energy efficiency projects.
The workshop has already generated interest in the business community, with several businesses expressing interest in an energy audit grant, and innovative project concepts being discussed.
Addressing the first workshop, WE MAKE project partner EWA CEO Manuel Sapiano, said “In recent weeks the Agency concluded sessions with certified Energy Auditors listed with the Regulator for Energy and Water Services portraying information on the array of financing tools available so they can also act as promoters to these national opportunities for enterprises. We need to move from audits which just see an expert identifying issues, to exercises which additionally guide the commercial sector to support schemes which can help address these issues.”
The workshops form part of a wider outreach towards manufacturing SMEs through the WE MAKE Project, which includes B2B networking, best practice dissemination, promoting innovation through projects, mentoring, and matching businesses to energy and water efficiency financing.
Addressing attendees, Dr Marthese Portelli, The Malta Chamber CEO, said “The Malta Chamber believes in supporting businesses in a tangible way to embrace sustainability and become more energy efficient. Through the WE MAKE project we help businesses identify what can be improved and how, as well as direct them to funding schemes supporting the upgrading, changing and renovation of equipment, installations and illumination systems.”
MBB CEO Joe Tanti stated “Through this, we aim to help manufacturing SMEs identify energy efficiency projects and the financing for those projects. Our end goal is to help businesses implement projects that result in higher energy efficiency, thus reducing costs. We believe the opportunities are present in many businesses, and that the support being provided can help them achieve this potential.”
Further workshops will be held in April, June, August, October, and December. Interested businesses are encouraged to contact the project partnership to receive further information on available support schemes and to register their interest in these workshops.
The Water and Energy Management and Knowledge Transfer in Manufacturing Enterprises (We Make) project, is a collaboration between the Energy and Water Agency (EWA), Malta Business Bureau and the Malta Chamber of Commerce, Enterprise and Industry, sponsored by the EWA, to give manufacturing industry businesses guidance on how to consume energy and water efficiently.
The HSBC Malta Foundation has renewed its support for the vertical gardens and green wall project set up at St. Clare College Primary School in Gźira. The Foundation has been supporting this project, which helps children to learn about growing plants and living a more sustainable life, for three years.
Thanks to the support provided by the HSBC Malta Foundation and the ongoing work and commitment of staff and pupils at the school, the main vertical garden within the yard has continued to thrive and attract wildlife. In addition to the main yard, smaller green walls are continuously maintained in the school’s classrooms, helping children to learn about herbs, plants and the growing of food.
Glenn Buġeja, Corporate Sustainability Manager at HSBC Bank Malta said: “Bringing nature closer to students can empower them with useful skills for life. They can become the protagonists in steering our world towards a greener, more sustainable future. HSBC Malta has long been committed towards making positive change in our environment and continues to support projects like this across the country.”
Jonathan Attard, Head College Network at St Clare College, said, “Green spaces have a clear and obvious positive impact on schools and, more importantly on the wellbeing of our students. I greatly appreciate the work of all the staff and children as well as the support given by the HSBC Malta Foundation to make this project a reality. I look forward to similar collaborations at other schools within the college network.”
Malta’s competitiveness is heavily impacted by the small size of its market, its insularity and peripherality. These were the main issues tackled head on and with a united front called for by various speakers emphasised during a debate organised by the European Parliament Office in Malta and the Malta Chamber of Commerce, Enterprise and Industry this morning.
The debate started with a reflection on Ukraine, with the Malta Chamber President Marisa Xuereb noting that Europe is now ‘at war with Russia, our biggest energy supplier’. The Malta Chamber President underlined that ‘for Maltese manufacturing companies, the issue of competitiveness is permanently. It stems from the inherent characteristics of Malta as a manufacturing location. Yet if we want to have a diversified economy that reflects European aspirations, manufacturing needs to remain viable. She said that Malta is acknowledged as a remote region under Article 7 of the General Block Exemption Regulations. However this has not so far translated into tangible support for local importers and exporters to mitigate the disadvantages arising from Malta’s peripheral geographical position coupled with its small and insular market. A level playing field with competing European operators and equal access to the Single Market necessitate serious consideration of the logistical challenges of Maltese businesses’.
The Head of the European Parliament Office in Malta Mario Sammut noted that it is one of the duties of the Office to create opportunities where our representatives in the European Parliament listen and discuss with stakeholders with a view to influencing legislation, and this was already the case in the particular case of a debate the Office organised last year with counterparts in France and Spain, with an EP intergroup now working on the proposals raised by the participants there.”
The Malta Chamber of Commerce CEO Dr Marthese Portelli spoke about the challenges that the industry is facing. She said that, ‘locally there should be more digitalisation investment support to help our businesses upscale their operations to be able to address their logistical challenges more efficiently; financial support structures which support businesses in this new reality; and review of customs operations’. Dr Portelli also looked at what needs to be done at EU level, ‘a level playing field with our EU counterparts; addressing the disadvantages that are hindering the growth ambitions of our businesses; addressing the obstacles that are hindering our businesses from scaling up; and removing the barriers that hinder our businesses’ internationalization goals’.
During the same event, the issues of, supply chain disruptions, rising freight costs, labelling requirements, added burdens brought about by Brexit, as well as covid restrictions and the pandemic’s impact on the availability of materials leading to disruptions in manufacturing. All this together with supply and instability of prices are leading to companies stockpiling for just-in-case scenarios. All this is having an impact which at the end is felt by the consumer.
MEPs Josianne Cutajar and Cyrus Engerer (S&D, MT), discussed and listened to various business entrepreneurs, in a debate that ranged well-beyond the impact of insularity and peripherality on Malta’s competitiveness. For this event all Maltese MEPs were invited to participate.
New and existing EU legislation and state aid rules were flagged as being in need of updating, with MEP Cutajar stating that, ‘EU relaxation of state aid rules needs to be discussed beyond the pandemic’. For MEP Cutajar ‘as an islander, coming from Gozo, I know first-hand the permanent geographic and economic disadvantages that Maltese and Gozitan business – especially SMEs – face. As we strive to recover from the pandemic, as well as to achieve the ambitious environmental targets being put forward, it is high time that the EU reaches a pact with its islands, providing islands, especially the small ones at the periphery like ours, with enough flexibility – including when it comes to state aid rules – for them to effectively compete with the European mainland’.
MEP Cyrus Engerer emphasised the need for a shift in perspective: from reacting to EU legislative proposals ‘as if these are external to us, to an ingrained realisation that we are part of the collective decision-making process from the very beginning. We need to pre-empt the law-making process in the EU to influence it effectively, and we need to do this by working together on both political levels and with stakeholders from the start’. He touched on a number of issues affecting consumers, noting in particular the ongoing work for medicinals’ derogations for Malta, Ireland and Cyprus, all heavily impacted by Brexit on this level; the revision of the Emissions’ Trading System where Maltese MEPs are working to pre-empt a bigger burden on the national airline, and aiming to mitigate the environmental transition through the new Social and Climate Fund on which Maltese MEP Casa is lead rapporteur, and to whom all Maltese MEPs are lending their support.
During the Q&A session, AirMalta General Manager for International Affairs Dr Nadia Giordamaina said that, ‘Air Malta’s biggest challenge was identified as the environmental one, with proposed EU legislation aiming to introduce taxation on intra-EU flights only, creating a disproportionate burden on a mainly intra-EU based airline. Added burdens and added emphasis on rail travel and freight in the EU ‘raises the question from 11 million people living on islands: is the EU really concerned for us?’
Farsons’ Group CEO and a member of the Malta Chamber Board of Management Norman Aquilina, said that, ‘competitiveness is not just about costs but also about capabilities. As much as we require recognition from the EU to address pressing realities, we should acknowledge that there are local fees which are part of our making and we need to address’.
The Chairperson of The Malta Chamber MEG committee Brian Muscat highlighted the four main issues that were hindering business, namely: transport costs, energy tariffs, state aid and shortage of labour force. Mr Matthew Wismayer, Director, Pet Nutrition, talked about the difficulties and costs of scaling up when logistics were heavily dependent on maritime transportation, as well as the fact that most important commodities derive from outside the EU, observing how wheat and cereal importation is set to be impacted following Russia’s invasion of Ukraine. Malcolm Camilleri, Deputy CEO, PG, noted how in competing with international giants, pricing is what made one competitive, in a context where, apart from Brexit, businesses are still feeling the Covid effect exacerbated by the fact that local authorities announce changes ‘what feels like every week’. Malta Motorways of the Sea Senior Manager Manuel Portelli, described how despite the obstacles mentioned earlier, connectivity has improved, with a drastic increase in trailers coming to Malta and a shift from container to roll on/roll off business.
Opposition candidate for the PN Jason Azzopardi, speaking from the floor, noted that EU treaties and legislation already allow for a cogent argument to be made for Malta to be considered with a special island status under EU law – in response to earlier speakers noting that Malta being a member state and not a region in the EU means it is not fully benefitting from remedies to ease the specific obstacles it faces, particularly in transport costs. He called for ‘across-the-board support’ for this at EU level.
MEP PN candidate Peter Agius noted that Malta is little represented in Brussels, with a sole permanent representation, compared to over sixty representations for each of the German regions. Nevertheless, he said, ‘there are ways to know ahead what is brewing in Brussels as the European Commission publishes its work plan at least a year ahead of taking action’.
This event was moderated by The Malta Chamber Communication Strategist Rachel Attard and Economic Policy Analyst Nathan Chatland. During this event an online survey was launched.
Global Shapers Community has officially launched a Hub in the city of Valletta, Malta. The Valletta Hub was founded by Marisa Xuereb, President of the Malta Chamber of Commerce, Enterprise and Industry.
In the spirit of the Global Shapers Community and the World Economic Forum, the Valletta Hub is non-political, neutral, not-for-profit and multistakeholder. Founding members of the Hub Shapers are diverse in expertise, education, income and race, but are united by their desire to bring about change.
The Head of the Global Shapers Community, Mr Wadia Ait Hamza said, “Youth are not only the hope of the future, but they are the hope of today. 50% of the world population is less than 27 years old and are therefore critical to defining the future of their societies as a whole. The Global Shapers Community supports young leaders who are exceptional in their potential, their achievements, and their drive to contribute to their communities by shaping local, national, and regional agendas”. Marisa Xuereb said: “I am very honoured to be selected by the World Economic Forum and the Global Shapers Community to launch the Valletta Hub. This is a milestone and we are looking forward to working together to improve the future of our country”.
As part of the activities leading up to the launch, representatives of the Valletta Hub are being supported by The Malta Chamber of Commerce, Enterprise and Industry, who expressed its satisfaction and support for the group of dynamic young leaders coming together to have a positive impact on the country.
The Valletta Hub is inviting young people between 18 and 27 years old to apply to join. The recruitment campaign is officially open.
Bank of Valletta has renewed its Gold Partnership agreement with The Malta Chamber of Commerce, Enterprise and Industry. The agreement, aimed at providing additional benefits to the Maltese Business Community was signed by Albert Frendo, Chief Business Banking Officer and Kenneth Farrugia, Chief Retail Banking Officer on behalf of Bank of Valletta and Ms Marisa Xuereb, President and Mr Christopher Vassallo Cesareo, Deputy President of The Malta Chamber.
‘This long-term collaboration between Bank of Valletta and The Malta Chamber gives the Bank insight on the operations, ambitions and requirements of the Chamber’s members, which in turn helps us to design new products and tweak current ones for the benefit of both parties,’ said Mr Frendo. ‘The Malta Chamber sits at the heart of a unique network of businesses and we strongly believe that this collective relationship leads us to achieve goals beyond those that can be achieved individually.’
‘This agreement will also focus on the Environmental, Social and Governance (ESG) considerations of the Bank and the Chamber’s members,’ said Mr Farrugia. ‘ESG is continuously evolving and for many companies, BOV included, these issues are increasing in importance. This partnership is a critical platform for communication between businesses, and also their investors to better understand important climate issues and act on these issues while increasing the amount of information disclosed on these efforts.’
The Malta Chamber President Ms Marisa Xuereb said that, “the challenges that lie ahead for businesses require further strengthening of the relationship between businesses and their bankers. Regulatory changes necessitate collaboration and cooperation, and the changing fintech and lending landscapes require banks to develop deeper insight into the commercial and investment activities of the various business sectors represented at The Malta Chamber, to be able to provide better financial support to viable business ventures, irrespective of their size, operating both locally and internationally.”
The Malta Chamber and Bank of Valletta are currently planning numerous activities, seminars, webinars and information sessions for the Chamber’s members to share knowledge and explore opportunities for Malta’s business sector.
A key date in the economic and business calendar for 2021 was COP26, the aftermath of which left many stakeholders feeling underwhelmed ready by outcomes that are, or will be, inadequate in the fight against climate change and its unfavorable effects on businesses and economic sustainability. One of the most crunching pain points currently being experienced by global businesses, their supply chains and their consumers is the worldwide inflationary pressures being felt aggressively in the shipping and logistics industry.
Freight costs have been on a sustained aggressive growth path over the last few months. Initial issues related to the supply-side damage arising from the pandemic such as decreased container ship flow, less efficient port side operations and labour shortages have merged with issues relating to supply chains being unable to cope with the recent surge in consumer and industry demand.
Particularly problematic has been the skyrocketing cost of the containers themselves, mainly owing to them moving less freely and frequently from one port to another. This has manifested in drastic and sustained increases in shipping and freight costs. The cost of shipping a 40-foot-equivalent unit from China to the US has risen fourfold to a cost approximating $10,000.
Europe is also currently being rocked by an energy crisis which has been a key driver in pushing Eurozone inflation past 4.1%. This news brings with it the added worry of the European Central Bank having underestimated the strength and inertia of current inflationary dynamics.
In the beginning of Q4 2021 European average energy inflation grew to levels of 23.5%, with the European Commission not expecting this level to fall prior to the middle of Q2 2022. Energy inflation for each country is determined by their specific energy mix and needs. Considering this, countries such as Malta and Portugal stand as outliers as a mix of successful long term hedging contracts and local generation has allowed inflation to be tamed below the 2% mark.
Another factor is the increasing cost and shortage of supply for semiconductors and other elements that are crucial in European manufacturing. Such shortages and supply chain bottlenecks have caused almost a quarter of European manufacturers to experience a contraction in output. Narrowing the view specifically to Malta, the island microstate produces only around 20% of its food necessities, has limited access to fresh water and lacks energy sources. It depends on the importation of mineral fuels and oil, non-electrical machinery, aircraft, transport equipment, plastic and other semi-manufactured goods.
Malta must be more vigilant and forward thinking than ever to protect its economy from its weak links, while proactively working to strengthen and protect the country’s supply chains and avenues of revenue and growth, whilst also preserving the country’s competitiveness vis-à-vis its peers and partners.
