Five Takeaways from the Leaders’ SME Chamber Debate

Last night, under the grand chandeliers of the historic Auberge de Castille in Valletta, Malta’s political heavyweights faced off in a high-stakes debate. The topic? The future of Small and Medium Enterprises (SMEs) on our little island nation. As the echoes of their voices filled the historic halls, one thing was clear: the future of Malta’s economic backbone is a hotly contested battleground.

1. The Economy: A Tale of Two Visions

The leaders of the Labour Party and the Nationalist Party painted starkly different pictures of Malta’s economic future. Robert Abela, Labour’s incumbent Prime Minister, pointed to the pre-pandemic growth figures and the government’s handling of the COVID-19 crisis as evidence of his party’s economic prowess. Bernard Grech, leader of the Nationalist Party, however, argued that Malta’s economic success was built on sand, with unsustainable practices and a lack of diversification leaving the island vulnerable.

Local business owners, like Mario Vella of Birkirkara-based Vella Group, are eager to see concrete plans. “We need a government that understands our challenges and supports our growth,” Vella told Hot Malta. “But we also need a vision for the future that’s sustainable and resilient.”

2. The Housing Crisis: A Spanner in the Works

The housing crisis, long a thorn in Malta’s side, took centre stage in the debate. Both leaders agreed that affordable housing is crucial for attracting and retaining talent, but they differed on the solutions. Abela highlighted the government’s plans to build thousands of affordable homes, while Grech criticized the lack of private sector involvement and the need for more innovative solutions.

For many SMEs, the housing crisis is a practical concern. “We can’t attract talent if they can’t find a place to live,” said Michelle Muscat, CEO of Msida-based tech startup, Muscat & Co. “We need a housing strategy that works for everyone.”

3. The Environment: A New Priority

In a departure from past debates, the environment took a front seat. Both leaders acknowledged the need for a greener, more sustainable economy. Abela highlighted the government’s plans for renewable energy and electric vehicles, while Grech called for a more ambitious approach, including a ban on single-use plastics by 2025.

Local businesses are taking note. “Sustainability isn’t just a buzzword for us,” said Mark Xuereb, owner of St. Julian’s-based eco-friendly café, Green & Grin. “We need a government that supports our efforts and helps us go even further.”

4. The Skills Gap: A Looming Challenge

The skills gap, long a concern for Maltese SMEs, was another hot topic. Both leaders agreed that education and training must adapt to meet the needs of the modern workplace. Abela pointed to the government’s investment in vocational training, while Grech called for a more broad approach, including closer collaboration with industry.

For many SMEs, the skills gap is a pressing concern. “We need people with the right skills to keep growing,” said Joseph Portelli, owner of Qormi-based manufacturing firm, Portelli Group. “But it’s hard to find them. We need a government that understands this and acts on it.”

5. The Future: A Battle for Hearts and Minds

As the debate drew to a close, one thing was clear: the future of Malta’s SMEs is a key battleground in the upcoming election. Both leaders promised a brighter future, but their visions differ greatly. The challenge for Malta’s SMEs is to choose the path that best supports their growth and resilience.

As the leaders left the Auberge de Castille, the future of Malta’s SMEs hung in the balance. The coming months will see a battle for hearts and minds, with each leader vying to win over the business community. The question is: who will they choose to lead them into the future?