Minister for the Economy, Enterprise and Strategic Projects Silvio Schembri addressed the MACM Annual Credit Conference held earlier today, highlighting ongoing initiatives to help small and medium-sized enterprises (SMEs) overcome the current challenges.
In his address, the minister mentioned that to alleviate the financial strain on businesses, the government has implemented various initiatives, including subsidies for fuel and electricity to mitigate operational costs, alongside wage supplements to assist employers in retaining staff amidst the COVID-19 pandemic. Additionally, tax relief measures, such as reduced VAT rates and deferred tax payments, have been introduced to stimulate economic activity.
Furthermore, he stated that Malta has prioritised investment in innovative infrastructure to enhance digitalisation and innovation, fostering long-term economic resilience and competitiveness. The growth of digital platforms and ecosystems, supported by initiatives from the Malta Digital Innovation Authority (MDIA), underscores Malta’s commitment to embracing emerging technologies such as artificial intelligence, blockchain, and 5G.
In addition to local efforts, the European Commission’s SME Relief Package, including a proposal for a Regulation to combat Late Payments, was highlighted by Minister Schembri. He stated that the government firmly stands behind the principle of prompt payment in all commercial transactions, recognising the systemic challenges posed by late payments, particularly for SMEs.
While supporting the need for legislation to address late payments, he emphasised the importance of safeguarding the freedom of contract and addressing the administrative burden that regulatory measures may impose on businesses.
Acknowledging SMEs’ vital role in Malta’s economy, the minister emphasised the Government’s commitment to providing support to overcome challenges that businesses face. “Initiatives are in their final stages through the Malta Business Registry to streamline processes and improve access to finance, empowering SMEs to thrive in a competitive business environment. Such initiatives include granting businesses the right to a payment bank account, establishing a central data repository, and establishing a credit review office,” stated Minister Silvio Schembri.
He concluded by reiterating the government’s commitment to providing comprehensive support to businesses and fostering an environment conducive to growth and development. Together with stakeholders, the government aims to overcome challenges and create an environment where businesses can flourish.
