The Malta Chamber raps policymakers for only implementing ‘meagre’ 1.8% of its proposals

The Malta Chamber has turned up the pressure on Government to seriously consider its proposals to “achieve a country that is both prosperous and mindful of the wellbeing of society,” in the words of Chamber President Chris Vassallo Cesareo.

In an event presenting its Pre-Budget Document for the 2025 Government Budget (due in late October), the Chamber of Commerce, Enterprise and Industry – representing 80 per cent of the private sector’s workforce – doubled down on the tough approach it has adopted as its frustration mounts with the sidelining of its suggestions.

“Malta’s immediate problems have been left ineffectively tackled over a number of years and are now grinding the coutnry to a halt,” notes the foreword to the document, listing issues such as the utilities infrastructure and the low uptake in renewables, the traffic situation, the shabbiness, the lack of proper waste management, planning policy abuse and over-construction, lack of enforcement and lack of proper governance.”

The Malta Chamber stated that these issues “contribute to a decline in people’s quality of life, making the country undesirable to high-quality investors, visitors, and inhabitants alike.”

It noted that from the 219 pre-budget proposals it made last year, tackling everything from tourism to public procurement, only four were implemented – “a meagre 1.8 per cent”.

Another 18.7 per cent have partly been implement, 4.6 per cent were refused, while the remaining three-quarters have not yet been addressed.

The Malta Chamber CEO Marthese Portelli was at pains to highlight the extensive efforts undertaken by the organisation to push strategic reform aimed at bolstering the country’s economic competitiveness and social wellbeing.

“It is now time to act immediately. It is time to act now and take decisions. Time’s up.”

The Pre-Budget Document points to 12 priority areas in order of importance, each including key proposals.

Its top priority remains Malta’s competitivity, arguing that the country needs to transition towards a more sustainable approach to infrastructure development that considers economic growth, competitiveness, environmental and social sustainability.

One key suggestion is the issuance of a public service obligation to establish a connection to major Mediterranean ports like Tunis, Casablanca, Valencia and Gioia Tauro, in a bid to mitigate the high transport costs attached to insularity.

Another is a call to address a long-standing gripe for The Malta Chamber – the penalisation of legitimate business for being good corporate citizens, while some operators thrive over their ability to evade or circumvent their obligations due to the authorities’ lack of enforcement.

The business lobby also drew attention to a previous proposal it had made back in 2021, when it called for a moratorium on applications for tourism accommodation to prevent oversupply and instead focus on attracting events like symposiums and conference that provide a boost during the shoulder months.

It also called for a clear plan for the take up of public space by restaurants’ tables and chairs, utilising clear criteria depending on location, kitchen size and indoor seating, among others, while ensuring unobstructed access to emergency vehicles, pedestrians and disabled persons.

Another proposal related to the tourism sector is to re-invest a percentage of the VAT generated in a given locality into that locality, thereby increasing its product development. Relatedly, it called for a shift from the extensive budgets spent on marketing Malta towards investment in Malta’s tourism product: “You need to develop the product first, before you market it.”

Asked for a reaction to Prime Minister Robert Abela’s promise, over the weekend, of Malta’s largest-ever tax cuts, Dr Portelli declined to comment, citing the need for full visibility to assess their feasibility.

However, she admitted to being perplexed about the tax cuts when several of The Malta’s Chamber’s proposals had been denied due to their cost to the country’s coffers – mentioning its request to eliminate tax on the cost of living adjustment as a specific example.

“Lower tax rates are fine, but we need to see what the opportunity cost will be.”

Read The Malta Chamber’s full Pre-Budget document here.