[WATCH] ‘Time Up’: Chamber urges government to transform current economic model ahead of Budget 2025

The Malta Chamber of Commerce has issued an urgent warning to policy makers through their 2025 pre-budget document, making it clear that Malta is in dire need of immediate action to address a wide range of long-standing issues.

As the Chamber launched its pre-budget document named “Time Up”, it reminded those present that it had been speaking about a number of concerts over the past years, as it argued that much more needs to be done to ensure sustainable economic progress.

Addressing the media, Chamber president Chris Vassallo Cesareo noted that the business lobby’s previous pre-budget document had already made it clear that fiscal planning was needed to establish a new direction for the country.

Vassallo Cesareo noted that while government has maintained the narrative that each budget will introduce no new tax, the time has come to address long-standing issues that are now dragging the country to a halt.

“Even if they are unpopular, the right decisions must be made as soon as possible to address pressing issues,” he stressed.

Meanwhile, Chamber CEO, Marthese Portelli explained that the sense of urgency present in the pre-budget document comes from the abysmal implementation rate of the Chamber’s previous documents. 

During the press conference, Portelli explained the business lobby’s document, as she went through the 12 priority areas highlighted in their proposals. These areas are: 

• Competition
• Fiscal Discipline
• Utilities
• Renewables
• Traffic Congestion
• Sustainable Tourism
• Planning and Upkeep of Public Areas
• Value-Added Employment
• Third Country Nationals 
• Low-income Earners and Pensioners
• Public Procurement
• Proper Enforcement of Laws and Regulations

The Chamber stated that it consistently presented various documents and proposals to policymakers, stressing the importance of achieving political consensus on an economic strategy that prioritises value-added activities, enhanced productivity, quality, and compliance.

“Occasional improvements have been registered. However, there is still a lot that needs to be done.”

Among the Chamber's proposals aimed at boosting Malta's competitiveness, the lobby called for the establishment of connections to major Mediterranean ports. Here, Portelli also called on authorities to refrain from penalising legitimate businesses while clamping down on operators who evade or circumvent their obligations.

The Chamber CEO made it clear that one of the most prominent issues raised by the business lobby year after year is the fragmentation within government departments, agencies and authorities. Emphasis was made on introducing 'Ease of doing business measures', with a focus on digitalisation.

Another issue that was raised with regards to fiscal discipline was the "sometimes unfair" competition between the public and private sector, as well as the headache incurred by the private sector at the hands of the public sector's half-day schedules.

During her speech, Portelli once again reiterated the Chamber's calls to reduce energy subsidies. She stressed that the current energy subsidies are not sustainable, urging government to re-think the subsidies so that they benefit individuals and companies who consume less, and invest in renewables.

On traffic congestion, Portelli highlighted a number of carrot-and-stick initiatives that would dissuade individuals from making use of their private vehicles, and push them to use mass transportation methods. The initiatives include paid parking in certain spaces, as well as the introduction of an e-mobility wallet with government allocating an annual amount to every e-wallet to be used for various environmentally sustainable or shared transportation options.

Addressing tourism, the Chamber CEO once again proposed a moratorium on applications for new tourism accomodation to prevent oversupply. The Chamber's pre-budget document also urged a "clear plan for tables and chairs which prevents kneejerk reactions and does not allow room for interpretation, basing it on clear criteria which depends on location, kitchen size and indoor seating amongst other criteria, while ensuring unobstructed passage to passersby and disabled persons."