Five Takeaways from the Leaders’ SME Chamber Debate

Last night, the Malta Chamber of SMEs hosted its annual leaders’ debate at the Mediterranean Conference Centre in Valletta. The event, attended by over 200 local business owners and entrepreneurs, saw the leaders of the two main political parties, Prime Minister Robert Abela and Opposition Leader Bernard Grech, discuss the future of Malta’s economy and the role of small and medium enterprises (SMEs). Here are five key takeaways from the debate that could shape the future of Malta’s business scene.

1. Taxation and Cost of Living

The cost of living and taxation were hot topics throughout the debate. Both leaders agreed that the cost of living has increased significantly in recent years, with Abela highlighting the government’s efforts to introduce measures to mitigate this, such as the increase in the minimum wage and the introduction of the ‘Family Budget Supplement’. Grech, however, criticized these measures as insufficient and called for a more comprehensive approach to tackle the issue.

Abela also defended the government’s tax policies, arguing that Malta’s tax regime is competitive and attracts foreign investment. Grech, on the other hand, proposed a review of the tax system to ensure it is fair and supports local businesses.

2. Education and Workforce Development

Both leaders emphasized the importance of education and workforce development in driving Malta’s economic growth. Abela highlighted the government’s investment in education, including the recent announcement of a €100 million fund for schools and the introduction of free childcare for children aged three and above. Grech, however, criticized the government’s approach to education, arguing that it lacks a long-term vision and fails to address the skills gap in the labor market.

Grech proposed a more targeted approach to education, focusing on equipping students with the skills needed for the jobs of the future. He also called for a review of the education system to ensure it is fit for purpose in the 21st century.

3. Infrastructure and Public Services

The debate also touched on the state of Malta’s infrastructure and public services. Abela pointed to the government’s investment in infrastructure projects, such as the new hospital in Gozo and the upgrade of the national road network, as evidence of its commitment to improving the country’s infrastructure. Grech, however, criticized the government’s approach to infrastructure development, arguing that it lacks a strategic vision and fails to address the needs of local communities.

Greach also raised concerns about the quality of public services, calling for a review of the way these services are delivered to ensure they are efficient and effective.

4. Innovation and Technology

Both leaders recognized the importance of innovation and technology in driving Malta’s economic growth. Abela highlighted the government’s support for startups and innovative businesses, including the introduction of the ‘Startups Malta’ initiative and the establishment of the Malta Innovation Authority. Grech, however, criticized the government’s approach to innovation, arguing that it lacks a coherent strategy and fails to support established businesses looking to innovate.

Grech proposed a more broad approach to innovation, focusing on supporting both startups and established businesses, and on attracting foreign investment in research and development.

5. Brexit and the EU

The debate also touched on the impact of Brexit on Malta’s economy and the country’s relationship with the European Union. Abela emphasized the government’s efforts to mitigate the impact of Brexit on local businesses, including the introduction of measures to support the fishing industry and the establishment of a task force to monitor the situation. Grech, however, criticized the government’s approach to Brexit, arguing that it lacks a long-term strategy and fails to address the challenges posed by the UK’s departure from the EU.

Grech proposed a more proactive approach to the EU, focusing on strengthening Malta’s relationship with the bloc and on advocating for the interests of local businesses at the European level.

The leaders’ debate provided a valuable opportunity for local business owners and entrepreneurs to hear from the country’s political leaders about their vision for Malta’s economy. As we look ahead to the next general election, it is clear that the future of Malta’s SMEs will be a key issue on the campaign trail. Whether it’s taxation, education, infrastructure, innovation, or Brexit, the parties’ proposals for supporting local businesses will be crucial in shaping the future of Malta’s economy.

As one business owner told Hot Malta, “We need a government that understands the challenges we face and is committed to supporting our businesses. The debate tonight was a good start, but we need to see more detail and more action from both parties.”