Business and UĦM pinning hopes on stimulus package
The private sector as well and the UĦM are hoping the government will agree to a set of measures aimed at providing a stimulus package for the economy. The Chamber of Commerce, Enterprise and Industry and the Malta Employers' Association put forward a...
The private sector as well and the UĦM are hoping the government will agree to a set of measures aimed at providing a stimulus package for the economy. The Chamber of Commerce, Enterprise and Industry and the Malta Employers' Association put forward a list of proposals which were submitted to Prime Minister and the chairman of the Malta Council for Economic and Social Development.
"We need action now, we cannot wait and think we will not be affected," Chamber president Helga Ellul insisted. "In fact, the business community is already feeling the effects." She added while that panic is unnecessary, "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.
UĦM secretary general Gejtu Vella fully endorsed the two stimulus packages proposed by the private sector. "We have identified areas that need attention. The social partners now need to sit down together and get moving. The UĦM supports the proposals put forward by the Chamber of Commerce and Industry and the MEA in order to give a boost to the economy," he told The Times Business.
"We need to take decisions now at the MCESD and not just engage in discussions. The country needs a stimulus package as soon as possible," he added.
Mr Vella also said that he was concerned that the economic climate had pushed certain social issues - which were long overdue - off the government's agenda, such as a new health and safety law and more rights for the self-employed. "We want the MCESD to focus on the economic situation but not at the expense of social policy. We also intend to bring up these social issues at the MCESD," he said.
The chamber's proposals to tackle the immediate risks of a cyclical downturn include a reduction in operational costs so that businesses will be better able to meet the price competitiveness challenges within the difficult demand scenario: an immediate reduction in utility bills, for example, through the introduction of a formula which takes into account the current development in energy costs in the global markets.
The set of measures also mention safeguarding major productive establishments from losing valuable human resources as a result of a significant and temporary drop in demand; 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; and the expediting of Mepa permit procedures to unleash the economic potential of major projects that are already in the pipeline, without jeopardising environmental sustainability.
In a statement, the chamber called for the timely, effective implementation of EU-funded projects, especially in areas which will create productive assets such as infrastructure, yacht marinas, energy, and training. It also called for enhancing incentives for research and development and innovation through measures like tax rebates, as well as fine-tuning income tax depreciation allowances for the purposes of investment in technology.
The enhancement of useful schemes launched by Malta Enterprise, such as those involving equity financing and training of entrepreneurs with internationally-scoped ideas, should also be seen to immediately.
The Malta Employers' Association said it is important for the government to be proactive and introduce measures that will serve as a buffer to prevent the Maltese economy from slipping into recession like many other economies worldwide.
It said its proposals were made in order "to reduce the negative impact of the economic recession that is affecting numerous companies in various sectors of the economy, particularly in manufacturing and tourism".
The MEA added: "The fact that the forecasts of real GDP have been revised downwards since December reveals the fragility of the situation which is fraught with many unknowns. Even senior economists are uncertain as to what will be the full extent of the recession, and when recovery will be within reach"
The MEA is calling on the government to announce an immediate reduction in electricity rates to households and business to reflect current international oil prices. "This will increase the purchasing power of many households and reduce costs to businesses," it said.
The Employers' Association also wants the introduction of a scheme to pay, on a temporary basis, part of the wages lost by employees in manufacturing companies who fall on a four day week. "This measure will alleviate the hardships suffered by such employees and the funds spent will serve to retain the level of aggregate demand in the economy," it said.
It also wants Mepa to speed up development permits that do not infringe environmental regulations, more funds for employment services provided by the ETC, the pumping of EU structural funds into important infrastructural projects, a medium to long term job creation strategy with specific action plans for the generation of green jobs, and employment opportunities in potential growth areas such as medical tourism and Islamic banking.
"We need action now, we cannot wait and think we will not be affected," Chamber president Helga Ellul insisted. "In fact, the business community is already feeling the effects." She added while that panic is unnecessary, "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.
UĦM secretary general Gejtu Vella fully endorsed the two stimulus packages proposed by the private sector. "We have identified areas that need attention. The social partners now need to sit down together and get moving. The UĦM supports the proposals put forward by the Chamber of Commerce and Industry and the MEA in order to give a boost to the economy," he told The Times Business.
"We need to take decisions now at the MCESD and not just engage in discussions. The country needs a stimulus package as soon as possible," he added.
Mr Vella also said that he was concerned that the economic climate had pushed certain social issues - which were long overdue - off the government's agenda, such as a new health and safety law and more rights for the self-employed. "We want the MCESD to focus on the economic situation but not at the expense of social policy. We also intend to bring up these social issues at the MCESD," he said.
The chamber's proposals to tackle the immediate risks of a cyclical downturn include a reduction in operational costs so that businesses will be better able to meet the price competitiveness challenges within the difficult demand scenario: an immediate reduction in utility bills, for example, through the introduction of a formula which takes into account the current development in energy costs in the global markets.
The set of measures also mention safeguarding major productive establishments from losing valuable human resources as a result of a significant and temporary drop in demand; 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; and the expediting of Mepa permit procedures to unleash the economic potential of major projects that are already in the pipeline, without jeopardising environmental sustainability.
In a statement, the chamber called for the timely, effective implementation of EU-funded projects, especially in areas which will create productive assets such as infrastructure, yacht marinas, energy, and training. It also called for enhancing incentives for research and development and innovation through measures like tax rebates, as well as fine-tuning income tax depreciation allowances for the purposes of investment in technology.
The enhancement of useful schemes launched by Malta Enterprise, such as those involving equity financing and training of entrepreneurs with internationally-scoped ideas, should also be seen to immediately.
The Malta Employers' Association said it is important for the government to be proactive and introduce measures that will serve as a buffer to prevent the Maltese economy from slipping into recession like many other economies worldwide.
It said its proposals were made in order "to reduce the negative impact of the economic recession that is affecting numerous companies in various sectors of the economy, particularly in manufacturing and tourism".
The MEA added: "The fact that the forecasts of real GDP have been revised downwards since December reveals the fragility of the situation which is fraught with many unknowns. Even senior economists are uncertain as to what will be the full extent of the recession, and when recovery will be within reach"
The MEA is calling on the government to announce an immediate reduction in electricity rates to households and business to reflect current international oil prices. "This will increase the purchasing power of many households and reduce costs to businesses," it said.
The Employers' Association also wants the introduction of a scheme to pay, on a temporary basis, part of the wages lost by employees in manufacturing companies who fall on a four day week. "This measure will alleviate the hardships suffered by such employees and the funds spent will serve to retain the level of aggregate demand in the economy," it said.
It also wants Mepa to speed up development permits that do not infringe environmental regulations, more funds for employment services provided by the ETC, the pumping of EU structural funds into important infrastructural projects, a medium to long term job creation strategy with specific action plans for the generation of green jobs, and employment opportunities in potential growth areas such as medical tourism and Islamic banking.