Five Takeaways from the Leaders’ SME Chamber Debate

As the sun set over the Grandmaster’s Palace in Valletta, a hush fell over the Auberge de Castille. Inside, Malta’s political leaders were not discussing the island’s historic architecture, but its future economic scene. The Malta Chamber of SMEs had organised a debate, inviting Prime Minister Robert Abela, Opposition Leader Bernard Grech, and other party leaders to discuss the challenges and opportunities facing small and medium enterprises (SMEs). Here are five key takeaways from the evening.

1. SMEs at the Heart of Post-Pandemic Recovery

All leaders agreed that SMEs are the backbone of Malta’s economy and will be crucial in the post-pandemic recovery. PM Abela stressed the government’s commitment to supporting SMEs, highlighting the €150 million COVID-19 Business Assistance Scheme. Grech, however, criticised the government’s handling of the pandemic’s economic fallout, arguing that more could have been done to protect businesses.

2. Digital Transformation: A Common Goal, Different Approaches

Digital transformation was a hot topic, with leaders acknowledging the need for SMEs to embrace technology. Abela pointed to the government’s €100 million Digital Malta initiative, aiming to improve digital literacy and infrastructure. Grech, on the other hand, proposed a ‘Digital Malta Fund’, focusing on providing grants for SMEs to go digital. Adrian Delia of the PN also emphasised the importance of digital education, suggesting a ‘Digital Academy’ for SMEs.

3. Affordable Housing: A Growing Concern for SMEs

Affordable housing emerged as a pressing issue for SMEs, with many struggling to retain employees due to high rents and a lack of affordable accommodation. Abela defended the government’s housing schemes, such as the ‘First Home Scheme’ and ‘Rent Supplement Scheme’. Grech, however, argued that these schemes are not enough, proposing a ‘Rent Control Board’ to regulate rents and protect tenants.

4. The Green Economy: A New Opportunity for SMEs

Leaders also discussed the potential of the green economy, with Abela highlighting the government’s €150 million Green Malta Fund. Grech, however, criticised the government’s lack of a clear strategy for transitioning to a green economy, proposing a ‘Green Transition Plan’ to support SMEs in the shift.

5. Education and Skills: The Key to SME Growth

All leaders agreed that education and skills development are vital for SME growth. Abela mentioned the government’s investment in vocational training and apprenticeships. Grech, however, argued that the education system needs a complete overhaul to better prepare students for the job market. Delia also emphasised the importance of lifelong learning, proposing a ‘Skills Malta’ initiative to upskill and reskill workers.

As the debate ended, the leaders left the Auberge de Castille, leaving behind a clear message: SMEs are the lifeblood of Malta’s economy, and their success will determine the island’s post-pandemic future. The challenge now lies in turning these promises into action.