The Malta Chamber of Commerce, Enterprise and Industry (MCCEI) has put forward to the Prime Minister and the MCESD Chairman a number of concrete measures aimed at providing a focused stimulus package for the Maltese economy.

The measures presented in the form of a technical paper, have also been endorsed by the Malta Hotels and Restaurants Association (MHRA). In this document both business bodies have put forward recommendations for both short term stimuli as well as medium term measures.

Recommendations for policy measures to meet the immediate risks of a cyclical downturn
include: a reduction in the operational costs of business in Malta to be better able to meet the price competitiveness challenges within the difficult demand scenario, for example an immediate reduction in utility bills through the introduction of a formula which takes into account the current development in energy costs in the global markets; the safeguarding major productive establishments from losing valuable human resources as a result of a significant and temporary drop in demand.

Other recommendations are: marketing support to immediately sustain demand in the tourism sector, which makes a significant direct and indirect contribution to economic activity in Malta; an enhanced access by business to low cost liquidity to enable them to meet short-run constraints; the expediting of MEPA permitting procedures so as to unleash the economic potential of a number of major projects that are already in the pipeline, without jeopardising environmental sustainability.

A number of programmes and measures towards enhancing the medium to long term supply capabilities of the economy are under way in Malta. Others remain to be implemented.

Policy measures which would serve to sustain economic activity in the medium term and which can be identified to be of a priority nature in the current circumstances include: the timely and effective implementation of EU Funded projects especially in areas which will create productive assets such as infrastructure, yacht-marinas, energy, training, etc; enhancing incentives for R&D and Innovation through measures such as tax rebates on expenditures towards locally-produced innovation and customer relationship management systems, as well as fine-tuning income tax depreciation allowances for the purposes of investment in technology; the enhancement of useful schemes recently launched by Malta Enterprise such as those involving equity financing and training of entrepreneurs with internationally-scoped ideas.

“We need action now, we cannot wait and think we will not be affected,” stated MCCEI President Mrs Helga Ellul. “In fact the business community is already feeling the effects.” She added that panic is unnecessary, however we have to be realistic and accept the facts. “With timely and targeted measures we can install the confidence and stimulus to get through these unpredictable economic times,” Mrs Ellul added.