The Annual Administrative Report of The Malta Chamber of Commerce, Enterprise and Industry
The Malta Chamber Annual Report 2022/2023
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The Annual Administrative Report of The Malta Chamber of Commerce, Enterprise and Industry
The Malta Chamber of Commerce, Enterprise and Industry organised a special dinner for its member to celebrate its 175th anniversary.
With over 600 attendees, the event was under the patronage of H.E. Dr George Vella, President of Malta. During the dinner, Dr Roberta Metsola, President of the European Parliament was also present and addressed attendees before dinner.
The evening started with some refreshing welcome drinks. Following a lavish three-course meal with accompanying wines, members had the opportunity to partake in post-dinner networking drinks with a selection of liquors, a whiskey bar and chocolate.
Main Sponsors: GO Business and Michael Debono Business
Other Sponsors: M&Z plc, FarsonsDirect and M Demajo
Last week, the European Commission published a Communication commemorating the 30th Anniversary of the Single Market and complemented this with a separate Communication setting out the Commission’s long-term view in securing Long-term competitiveness of the EU.
For the past thirty years, the Single Market has celebrated numerous achievements, faced numerous hurdles and today it continues to prevail as an instrumental part of the European Union. In a reaction to this important milestone for the European Single Market, MBB President Alison Mizzi stated that, “There is little doubt that the creation and functioning of the Single Market is one of the greatest achievements of the European Union. The implementation of the four freedoms across such a diverse market is unique and should be celebrated. While still facing numerous challenges and far from being complete, the Single Market empowers European companies to grow and be successful. It is therefore crucial that it is responsive and adaptable to ongoing challenges, including global competitiveness, geopolitical challenges, and the green and digital transitions’’.
Ms. Mizzi added, “Compliance costs and overly complex procedures particularly in the provision of services and capital markets remains prevalent. National protectionism in sectors such as road transport coupled with fragmentation or inefficiencies in other areas such as certification and labelling, do not function in the same way as a Single Market should. We augur that these issues will be truly addressed by these latest initiatives.”
30 years on, the Single Market accounts for 15% of the global GDP and is home to 23 million businesses. Considering the challenges experienced recently, including a global pandemic and a war on the EU’s doorstep, these Communications are built on a forward-looking, competitiveness, adaptability, and collective effort agenda. The latter being the crux of the EU’s plan in coordinating both businesses and policy makers to work together towards ensuring Europe’s perseverance for the next decade and beyond.
While remarking on the successes to date, including the tools and frameworks it has developed and which are key in ensuring the Single Market’s success, the 30th Anniversary Communication acknowledges the urgent need for the Single Market to become more resilient by improving its preparedness in facing current and future crises. The Communication outlines how existing Single Market rules will be enforced whilst continue working on removing barriers as well as fostering the green and digital dimensions of the Single Market.
The Communication on Long-term competitiveness of the EU: looking beyond 2030 lists 9 mutually reinforcing drivers in which the Commission will seek to build a regulatory framework. These cover themes such as environmental sustainability, resilience and stability, wellbeing and fairness, as well as productivity.
An important proposal will be the introduction of a competitiveness check that ensures that the impact assessments of legislative proposals clearly showcase the expected impacts of each proposal on cost and price competitiveness, international competitiveness and the capacity to innovate, and also on SME’s competitiveness. The MBB welcomes this proposal especially as it was an important recommendation emanating from the Conference on the Future of Europe.
The Malta Business Bureau will continue to update the local business community on the various aspects highlighted within these two Communications as well as break down the relevant initiatives and tools included in the two communications.
This proposal seeks to harmonise and streamline the framework for data generation and data sharing on short-term rental accommodation services across the EU.
On the 13th of March the Malta Business Bureau in collaboration with the European Parliament Liaison Office (EPLO) held a Business Session on the EU Short-Term Rentals Initiative (STR) at Dar l-Ewropa in Valletta, with special guest MEP Josianne Cutajar who is Rapporteur for the European Parliament’s Transport and Tourism Committee. Short-term accommodation rental services have existed for many years alongside conventional accommodation providers such as hotels. However, their popularity has surged in the EU with the rise of the platform economy. Despite the positive opportunities created for tourism activity in general, a number of challenges became prominent affecting hotels, local communities and public authorities.
Dr Mario Sammut, Head of the EPLO delivered the welcoming speech, noting the importance of dialogues such as the ones taking place today. They present an opportunity for stakeholders to voice their views and concerns to MEPs, at a stage when there is still an opportunity to amend legislative proposals.
Ms Alison Mizzi, President at the Malta Business Bureau, joined Dr Sammut in introducing the topic as she stated that, ‘’to manage this economic activity better, public authorities need to be well-equipped with data on short-term accommodation rentals to be able to develop evidence-based policies and for better law enforcement. The lack of uniformity that is currently being experienced on the market is impacting the good functioning of the European Single Market. This is why the European Commission proposed the Short-Term Rental Initiative’’.
An overview of the main elements of the proposed legislative framework was presented by Ms. Christine Said, Policy Executive at the Malta Business Bureau. It was explained that this proposal seeks to harmonise and streamline the framework for data generation and data sharing on short-term rental accommodation services across the EU.
The presentation was followed by a keynote speech on the topic given by MEP Josianne Cutajar who is Rapporteur for the TRAN committee at the European Parliament on this proposed legislation. MEP Cutajar emphasized that the Short-Term Rentals Regulation must take into account all key players within the sector. The proposed rules will improve transparency and the collection and sharing of data from hosts and online platforms, whilst giving public authorities a strengthened legal backing to access beneficial data. Such data will assist local authorities to address the challenges brought about by the online short-term rental market, better responding to the travellers’ and the locals’ concerns, whilst helping them to ensure that the quality of our touristic product is maintained and a more sustainable tourism ecosystem achieved. This will allow consumers to continue benefiting from a wide range of accommodation options with better peace of mind and for legitimate and traditional accommodation providers to compete on a more level playing field within the market.
Several local and EU stakeholders were invited to provide their reactions to the Short-Term Rental Initiative.
Mr. Andrew Agius Muscat, CEO of the Malta Hotels and Restaurants Association highlighted that the platform economy is a product of the internet and social media. Since its inception, the MHRA has read the signs of the times and accepted that this new form of accommodation provision was here to stay. Instead of fighting it, we called for policy frameworks to correct it. The proposed STR initiative is a much-needed concrete step in achieving a level playing field in the tourism industry and more specifically the accommodation sector. It’s high time that the EU acted on this front. In the meantime, it is important that the public authorities keep pursuing the right enforcement measures to ensure that our tourism product is protected.
Mr Kevin Fsadni, Deputy CEO at the Malta Tourism Authority reassured that the technical capabilities required of short-term accommodation hosts would be supported by clearer guidelines and specifications. He also commented that creating a level playing field is not enough as it is important for local authorities to ensure and support a proportional enforcement of the law.
Ms. Julia Aquilina, Policy Executive at The Malta Chamber said that the Short-Term Rentals Initiative goes beyond direct tourism, as it effects the entire community. She said this is a priority for The Malta Chamber, as we believe that quality is a principle that needs to be in every element of the tourism supply chain. She further highlighted three crucial points that are important to businesses in line with the Short-Term Rentals Initiative: (i) the streamlining of legislation to ensure there are no gaps within policy; (ii) the importance of simplified data sharing and (iii) ensuring clear guidelines and a structured framework.
The event was also addressed by Mr. Matej Zezlin, Public Affairs Manager at HOTREC, who shared HOTREC’s views on the proposal from a European hospitality perspective.
The Skill Up Project aims to help women boost their employment and career opportunities through several courses
Atlas Insurance, through its Community Involvement Fund, is funding the Skill Up Project run by the FIDEM Foundation. The joint initiative was announced during FIDEM Foundation’s International Women’s Day conference on 8 March. Atlas Insurance will be investing Eur60,000 over two years in this project, which will also include the purchasing of IT equipment which will continue to be used by the programme well into the future.
The Skill Up Project aims to help women boost their employment and career opportunities through several courses designed to impart useful skills as well as to empower women to take the lead in improving their lives by developing and strengthening their self-confidence and belief in their abilities. These courses address subjects such as English language literacy, computer competencies and life skills. Participants in the project will be awarded recognised certification upon successfully completing individual courses, which eventually lead to a FIDEM Educate to Empower – Skill Up Certificate.
The FIDEM Foundation is a non-profit organisation set up in 2018 which provides support and empowerment opportunities to vulnerable people, particularly women, adolescent girls and children, across Malta and Gozo through life-changing access to education and wellbeing guidance.
The Atlas Insurance Community Involvement Fund was set up by Atlas Insurance to finance its Community Involvement Strategy. Skill Up project is one of three projects funded under this new programme in 2023.
Catherine Calleja, Executive Director and Company Secretary of Atlas Insurance, explained that: “Atlas developed a strategic approach to ensure that the money we give to the community is put to the best possible use. Through this fund, Atlas is focusing on the specific areas where Malta is falling short of its Sustainable Development Goals (SDGs). The Skill Up Project addresses the fifth SDG to achieve gender equality and empower all women and girls.”
She added that: “Empowerment through education is an effectively proven tool to help vulnerable people out of their predicament. The partnership with an experienced organisation such as the FIDEM Foundation in the Skill Up Project ensures that the needs of vulnerable women are specifically targeted and addressed in order to provide participants with the optimal means to successfully complete the courses and improve their quality of life through self-development and better employment opportunities.”
Dr Sabine Agius Cabourdin, FIDEM’s Founder said: “The right to education is a basic human right recognised by various legal instruments, notably the UNCHR and further enshrined in the Maltese Constitution. Education raises men and women out of poverty, levels inequalities and ensures sustainable development. Unfortunately, not all of us are on a level playing field and many do not have access to education even though the infrastructure is there.”
In cognisance of the difficulties faced by vulnerable women, this project also takes into account the obstacles that would prevent prospective attendees from joining and completing the programme. In this respect, transport and childcare services will be offered along with the provision of all material required to follow the courses.
This WE MAKE webinar showcased best practices from three leading manufacturing companies which highlighted the investment opportunities for companies, such as rainwater collection for heating/cooling
“Sustainable manufacturing and conservation of resources are more than just energy management. Water management is expected to take a more pronounced role amongst the metrics for sustainability. Aside from an expression of green credentials, investing in water efficiency allows a company to secure its future cost-base, particularly given that Maltese freshwater is a resource under increasing strain, and its future abundance is not a given,” said Chris Vassallo Cesareo, The Malta Chamber Deputy President.
The Deputy President was addressing attendees during the latest webinar organised as part of the WE MAKE Project which aims to assist companies in becoming more sustainable and more efficient, and thus, more competitive.
“There are various ways to carry out water efficiency investments in industry, as there are many applications of water to the manufacturing process. Process water is used in the execution of manufacturing processes such as incorporation into the product, while cooling/heating water may be used for chilled water systems,” noted Vassallo Cesareo.
The webinar, organised in collaboration with Malta Business Bureau (MBB) and the Energy and Water Agency (EWA), showcased best practices from three leading manufacturing companies which highlighted the investment opportunities for companies, such as rainwater collection for heating/cooling.
CHRIS VASSALLO CESAREO – Deputy President, The Malta Chamber
Digitalisation has been on the agenda for many years now, but it was the COVID-19 pandemic that brought this sector to the forefront of the world’s priorities. Thanks to the pandemic, Governments and businesses throughout the world identified gaps that had to be overcome in a short period of time, just to be able to continue functioning in an ever-changing landscape.
Indeed, the European Union has included digitalisation as one of the main pillars in its journey towards a green, digital and resilient economy, The EU has identified investments in key digital technologies, including AI, as the means with which to achieve its ambitious targets for 2030.
In yet another validation of its strive to be the most relevant and cross-sectoral voice of the business community, The Malta Chamber has in recent years been very vocal about the need for the local business community to digitalise its operations. I would also add that, in fact, in March 2019, a public-private partnership between the Government and The Malta Chamber – tech.mt – was launched to help Maltese technological companies grow in areas such as AI and Big Data.
Digitalisation and AI have a role to play in many sectors, and The Malta Chamber issued a number of proposals in the Next Legislature (Time to Step Up). In this publication The Malta Chamber stresses that investment in digitalisation, including enforcement agencies and the law courts should rank as one of the top priorities of Government in this legislature. This was re-emphasised in our recommendations for the 2023 National Budget, wherein we proposed that local businesses should be incentivised – through reductions in enrolment fees or tax incentives – to invest in their employees to undergo specialised IT related courses. We also stated that techmt should be further resourced to assist in internationalisation strategies and that grant incentives should be provided to promote and support cybersecurity.
Nevertheless, we strongly believe that any digitalisation and AI should still be human focused and led. Social dialogue continues to be vital for a strong democracy and good industrial relations. Through this partnership, The Malta Chamber and the General Workers Union acknowledge the importance of the digital transition, the opportunities it brings to the workplace, but also the impact it may have on workers.
And this is what brings us here together today. The Malta Chamber and General Workers Union with the support of the Malta Business Bureau, are participating in the EU Transformwork Project to further the social dialogue on some important issues, including digital skills, the right to disconnect, artificial intelligence and the human in control principle, and the use of surveillance at the workplace. In today’s event we are addressing the growing importance of AI technology for business operations and its impact at the workplace. There are also important regulatory initiatives currently being discussed at EU level in relation to AI, such as the AI Act and the AI Liability Act, which we will learn more about through the esteemed guest speakers that we have brought together today.
Event promotes social dialogue on the importance of the digital transition, the opportunities it brings to the workplace, but also the impact it may have on workers
The Malta Chamber of Commerce, Enterprise and Industry, together with Malta Business Bureau and in association with General Workers Union, organised an event titled ‘The Ripple Effect of AI’, as part of the TransFormWork project. The event aimed at discussing the impact of artificial intelligence at the workplace and learn more about the recent EU legislative initiatives in the field of AI.
In his opening speech, The Malta Chamber Deputy President, Chris Vassallo Cesareo noted that The Malta Chamber has in recent years been very vocal about the need for the local business community to digitalise its operations. “In fact, in March 2019, a public-private partnership between the Government and The Malta Chamber – Tech.mt – was launched to help Maltese technological companies grow in areas such as AI and Big Data,” he said.
“Digitalisation and AI have a role to play in many sectors, and indeed, in its recommendations for the Next Legislature (Time to Step Up). In this publication The Malta Chamber stresses that technology and AI are different from each other. Technological investment in digitalisation, including enforcement agencies and the law courts should rank as one of the top priorities of Government in this legislature. This was re-emphasised in our recommendations for the 2023 National Budget, wherein we proposed that local businesses should be incentivised – through reductions in enrolment fees or tax incentives – to invest in their employees to undergo specialised IT related courses,” continued the Deputy President.
Vassallo Cesareo concluded that, nevertheless, The Malta Chamber strongly believes that any digitalisation and AI should still be human focused and led. Social dialogue continues to be vital for a strong democracy and good industrial relations.
Several industry experts also shared their insights on the subject of AI and digitalisation. Prof Joshua Ellul, Associate Professor of Computer Science, Faculty of Information & Communication Technology at the University of Malta delivered a presentation on the misconceptions of AI and how it can positively enhance the workplace. Jo-Etienne Abela, Minister for the Elderly & Active Ageing and Consultant of Surgery, gave a video message on the influence of AI within the medical field. Dr James Scicluna, Partner at WH Partners, spoke about EU initiatives on AI, more specifically, the Artificial Intelligence Act, Liability Directive and implications at the workplace.
A panel discussion, moderated by MBB CEO, Joe Tanti, followed and was made up of the following speakers:
• Dr Daniela Grech, Head – Projects & EU Funds, The Malta Chamber
• Josef Bugeja, Secretary-General, GWU
• Stefan Farrugia, CEO, Eunoia
• Dr Angelo Dalli, Entrepreneur, Investor, AI & Technology Expert
• Brigitte Tanti, EEN Coordinator, Malta Enterprise
Dr Daniela Grech said that “The Malta Chamber believes that access to digital-centric schemes, which aim to help business to upgrade and improve their digital infrastructure should be broadened and that Government and business should join forces to develop and implement digitalisation, innovation and technology-driven transformation pathways tailored to different sectors, supported by fiscal incentives.”
“Local business must embark on more agile uptake of automation to address inefficiencies and maximise on costs, and that if that is done well such investments can stimulate economic activity and ultimately increase employment in general,” she continued.
Megabyte’s client base includes some of Malta’s well-established companies, large and small, from across various sectors
PwC Malta is pleased to announce that it has acquired 100% of share capital of Megabyte Limited (Megabyte). Megabyte was founded in 1977 and is one of the pioneers in the local IT industry offering
Engineering Support and Software Services for its clientele. It has been on the forefront of digital innovation, providing technology solutions and bespoke IT services designed to grow businesses.
Megabyte’s client base includes some of Malta’s well-established companies, large and small, from across various sectors including financial services, manufacturing, infrastructure as well as public
sector entities. Being a gold partner of HP, Megabyte’s Engineering Support Services is focused on the procurement, installation and maintenance of HP equipment. The Software Services division is centred around Megabyte’s partnership with Oracle, with the company being an accredited partner in the local market offering the suite of Oracle products.
“Such an acquisition is a unique opportunity for PwC Malta,” David Valenzia, the firm’s Territory Senior Partner stated. “Our PwC Technology team is now in excess of 60 people as our capacity to deliver IT business solutions to our clients continues to evolve. We will be increasing our local community of solvers by integrating a strong managerial team along with a large number of experienced software developers, consultants, engineers and technicians, who will be helping us build trust and deliver sustained outcomes.”
Michel Ganado, Consulting Partner at PwC Malta, observed that “this transaction will strengthen our brand position and expand our footprint in the local technology sector by enhancing our service offering thereby allowing us to deliver comprehensive and innovative business solutions to our clients.”