Author: Mel Chamber

In its first reaction to the European Commission’s recommendation for a 2040 EU climate target, the MBB reiterated its support towards the EU achieving climate neutrality by 2050 and acknowledges that intermediary targets are necessary to provide a gradual transition for all stakeholders, including businesses; yet cautions on the competitiveness impact and additional burdens that businesses may continue facing.

MBB President Alison Mizzi stressed that; “Businesses are, and will continue to be, at the centre of the green transition through their contribution towards innovation, and their readiness to invest. They are everyday looking into novel solutions to reduce their environmental impact, through renewables, energy efficient solutions, circular economy solutions, and so on, when conditions are favourable.”

“At the same time, it must be emphasised that the current environmental policy drive has already placed great stress on businesses through excessive reporting requirements and disproportionate implementation costs, as well as through risks of carbon leakage which degrades economic competitiveness,” Ms. Mizzi continued.

The MBB urges EU policymakers to ground future climate legislation in realism and account for the different obstacles or limitations faced by specific regions and industries. This includes ensuring that the post-2030 policy framework provides adequate support and incentives for the most affected and vulnerable actors, especially SMEs.

The European Commission has recommended to reduce the EU’s net greenhouse gas emissions (GHG) by 90% by 2040, compared to 1990 levels. This is being considered a significant step towards achieving climate neutrality by 2050, which is at the heart of the European Green Deal. The target is also in line with the Paris Agreement to limit temperature increases to 1.5C above pre-industrial levels.

The MBB emphasised the importance of an open and constructive dialogue with business stakeholders, to help identify potential concerns and adequately address them in future EU proposals. The MBB shall remain committed to engage with the EU institutions to put forward the Maltese business perspective. Only through a collaborative and participatory approach, one can ensure a smooth, and competitive transition to a climate-neutral Europe.

The Malta Business Bureau is the EU business advisory organisation of The Malta Chamber and the Malta Hotels and Restaurants Association. The MBB is also a partner of the Enterprise Europe Network.

The Malta Chamber of Commerce, Enterprise and Industry organised a conference in collaboration with Bank of Valletta to explore the recent and expected economic developments and trends, in the context of the baseline trajectory for the Maltese economy, and the upside and downside risks surrounding this outlook.

In his opening speech, Nick Xuereb, Deputy President of The Malta Chamber, highlighted the key challenges and economic realities that businesses will face in 2024. “We should help and support businesses in improving their efficiency and productivity. As inflation shows signs of decreasing, it is crucial to implement the right measures proactively, positioning ourselves ahead of the curve rather than lagging behind. Since human capital will remain a persistent challenge in 2024, the overarching goal should be to steer our country towards emphasizing quality over quantity. Given that our businesses operate in a broader competitive landscape, we cannot afford to ignore external developments. With this being said, critical investment in digitalisation is imperative for both the private and public sectors and should be actively encouraged,” stated Xuereb.

“Malta’s economic growth remained strong in 2023, in contrast with the sharp deceleration recorded abroad. The current consensus suggests that over the next years, Malta’s economic momentum will continue to exceed that in the euro area. This benign outlook reflects the transformation undertaken over the years, which has made the economy more diversified and thus more resilient. Geo-political tensions continue to create uncertainty, but this is compensated for by the fact that the low public debt ratio and the high bank liquidity made it possible to dampen the international energy and interest rate shocks which occurred post-pandemic,” noted Malcolm Bray, Senior Manager (Economics) at Bank of Valletta.

During a panel discussion on the resiliency of Malta’s economic landscape, The Malta Chamber CEO, Dr Marthese Portelli emphasised on the concept of imported inflation which is manifesting in various facets within Malta’s economic landscape. “The Malta Chamber has highlighted several factors contributing to inflationary pressures, including increased air freight and sea transport costs, reliance on imported raw materials, imported labour, and regulatory burdens from the European Commission. Additionally, deficiencies in water and energy infrastructure and traffic congestion exacerbate these pressures. The Malta Chamber has been very vocal on the importance of addressing these multifaceted challenges while providing tangible examples on how to mitigate such challenges,” she noted. Dr Portelli emphasised the substantial growth opportunities in current sectors, particularly tourism and manufacturing, which have shown remarkable resilience. A key strategy for enhancing productivity in these sectors is to optimize efficiency by accomplishing more with fewer resources. This approach not only fosters sustainable growth but also enhances competitiveness and overall economic performance.

In his closing address Mr. Kenneth Farrugia, Chief Executive Officer of Bank of Valletta, stated that “We do hope that you have found this event to be insightful and relevant to your own operation and do trust that this will inspire meaningful action and drive positive change. As Malta’s leading Bank, we are delighted to have co-organised this event with The Malta Chamber as this has enabled us to share our views and thoughts on the national economy and in the process stimulate an interesting exchange with key economic actors”.

Mr Farrugia also stated that over the past decades, the country’s economy has gone through significant positive developments, this despite the challenges that emerged in the process, which in truth have tested our resilience. He went on to state that at this juncture, the future strategic thrusts supporting our economic development need to be driven by the critical principle of sustainability within an overarching ESG context. This focus will in turn undoubtedly bring about social wellness and stronger governance. Finally, Mr Farrugia said that “We all need to play an active role in shaping the future of our economy and where we constantly need to ask ourselves whether we are doing anything, or enough, in the process. Bank of Valletta intends to remain an important catalyst in this regard to foster greater engagement and collaboration between the key stakeholders for the benefit of generations to come.”

The Malta Business Bureau (MBB) has unveiled its revitalised brand identity This represents a significant milestone for the organisation, marking exactly 13 years since its last rebranding exercise. MBB’s fresh identity reaffirms its commitment to be always vigilant of the ever-changing trends and exigencies of the business community.

Addressing the launch event, MBB President Alison Mizzi expressed her enthusiasm for the organisation’s transformation. She stated, “MBB has played a pivotal role in the Maltese business landscape by relaying EU policy developments and advocating for the Maltese business interest with EU and national policymakers. Today’s rebranding represents our commitment to continued growth, adaptability, and unwavering support to the local business community to bring it closer to the European Union.”

Chris Vassallo Cesareo and Tony Zahra, Presidents of MBB parent organisations The Malta Chamber and the Malta Hotels & Restaurants Association, also addressed the event to share their views on the MBB’s rebranding. The Malta Chamber President Chris Vassallo Cesareo stated that this rebranding is not merely cosmetic, but it embodies a blend of approachability and professionalism. He added that it embraces a youthful and adaptable spirit that is welcoming for businesses and will contribute to further success.

On his part, MHRA President Tony Zahra explained how the MHRA finds great support in the work offered by the MBB through its knowledge of EU Affairs and the potential implications for businesses. Mr. Zahra stressed MBB’s key role in a very complex legislative process, to put forward the Maltese business position in Brussels to relevant EU officials and legislators, and to intervene where specific proposals may have a negative impact.

This event is considered timely given the major changes taking place within the EU this year, as the current legislature is coming to an end and the European Parliament elections are taking place in June. This will be followed by a new College of Commissioners after summer, which will kick-startthe 2024-2029 term.

In a message delivered by Deputy Prime Minister and Minister for European Funds, Consumer Protection, and Social Dialogue, Hon. Chris Fearne emphasized that in the coming months, in the run-up for the European Parliament elections, we should all unite to promote and defend the principles of democracy that contribute to peace and prosperity. “We must ensure that the new Members of the European Parliament uphold democratic values to continue fostering well-being in our country and throughout the European Union.”

In his closing remarks, MBB CEO Joe Tanti expressed gratitude to all participants for attending the event, and outlined the strategic vision behind the new image. He said, “We are extremely proud with our new brand identity, which reflects our vision, values and mission as leaders in EU-business advocacy for the Maltese business community. This Rebranding reaffirms the MBB’s role as Malta’s Business Gateway to the EU.”