Five Takeaways from the Leaders’ SME Chamber Debate

As the sun set over the Grandmaster’s Palace in Valletta, the air was thick with anticipation. Inside, the Malta Chamber of SMEs had gathered its members and invited the leaders of the two main political parties for a debate focused solely on the needs and challenges of small and medium enterprises. Here are five key takeaways from the evening.

1. Taxation: A Hot Button Issue

The debate kicked off with a contentious issue: taxation. Both leaders agreed that the current tax system needs reform, but they differed on the details. The Labour Party’s Robert Abela emphasized his party’s track record of reducing tax rates, while the Nationalist Party’s Bernard Grech argued that the system is too complex and needs simplification. Grech proposed a flat tax rate, a suggestion that drew both applause and raised eyebrows from the audience.

2. The Green Economy: A New Frontier

Both leaders acknowledged to a green economy, but their visions for achieving this goal varied. Abela highlighted the Labour government’s investments in renewable energy and green transport, while Grech criticized the pace of these projects and promised a more ambitious plan if elected. He proposed a ‘Green New Deal’ that would create jobs while reducing Malta’s carbon footprint.

3. Skills Gap: A Common Concern

Both leaders expressed concern about the skills gap in Malta’s workforce, with Abela noting that this issue is particularly acute in the tech sector. Grech, however, argued that the government’s education policies are not equipping students with the skills they need to thrive in the modern economy. He promised a review of the education system to better align it with the needs of employers.

4. The Role of Public Procurement

The leaders also debated the role of public procurement in supporting local SMEs. Abela pointed to the government’s ‘Buy Maltese’ initiative, which encourages public entities to purchase goods and services from local suppliers. Grech, however, argued that this initiative does not go far enough and proposed a target of 50% of public procurement to be awarded to local SMEs.

5. The Future of Work: Remote and Flexible

The debate closed with a look ahead to the future of work, with both leaders acknowledging the shift towards remote and flexible working arrangements accelerated by the COVID-19 pandemic. Abela emphasized the need to support businesses in adapting to these changes, while Grech promised a ‘Future of Work’ task force to ensure that Malta’s labour laws keep pace with technological change.

As the debate drew to a close, one thing was clear: the future of Malta’s SMEs will be a key battleground in the upcoming election. With so much at stake, it’s crucial that the voices of these businesses continue to be heard.