Mitigating the impact of another international crisis on Maltese families and businesses

Minister Silvio Schembri outlines a number of budgetary measures aimed at protecting families and safeguarding businesses during the turbulent times the world at large is experiencing, more specifically the turmoil emanating from the energy crisis. He also argues that the Maltese Government has over the past years, in spite of dire circumstances, stood its ground and never baulked at taking concrete decisions for the benefit of all.

SILVIO SCHEMBRI, MINISTER FOR THE ECONOMY, EUROPEAN FUNDS AND LANDS

The Covid-19 crisis and the Maltese government’s significant and successful efforts to address its impact on our economy, our businesses and workforce marks a period in our history which is undoubtedly one for the books. But now we are faced with another saga: war has reared its ugly head on Europe’s periphery, a war which has had an adverse impact on many countries including Malta.

Despite the challenges and at times numerous odds Government, as we have proven time and again, is always there to alleviate any hardships created during such testing times.

Throughout the Covid-19 pandemic, the Maltese Government fully recognised the catastrophic impact this event could have on families and businesses and rapidly deviated any unnecessary hardships by subsidising fuel expenses and utility bills along with the wage supplement. Now, the need for the government to shield the country has arisen once again and as announced in the Budget for 2023, some 600 million euro will be allocated to absorb energy and cereal price increases.

The string of budgetary measures which aim to help families and businesses survive and flourish through another gruelling period, will ensure that the onslaught emanating from the energy crisis beyond our shores is well minimised. We have delivered at least two consecutive Budgets which included a record number of measures to alleviate unnecessary suffering for our families and businesses, and despite the scepticism from some, we shall do so once again.

To say that certain decisions we have taken as a Government have been tough would be a gross understatement, but to govern successfully and to put the people’s wellbeing first, one cannot sit on the fence. Today, we can boldly and proudly claim that the Maltese Government has stepped up its efforts, consistently, every time our country was going through a harrowing period.

Several countries, including our immediate neighbours are facing an economic crisis. All those who have been abroad in recent times, to Italy, to cite an example, know exactly that filling a car with fuel will cost you double if not triple the amount, when compared to what one would pay in Malta. Is Malta special? No. But the Maltese Government has taken the necessary measures to shield consumers from further hardship.

As part of our budgetary measures, we have launched a number of incentives for businesses, which we have always regarded as the backbone of our economy. It is now up to businesses to avail themselves of these opportunities in order to navigate both their business and Malta’s economy through the turbulent waters ahead and continue to grow, thrive, and succeed.

But we cannot rely on budgetary measures alone. My Ministry was and is working relentlessly to attract new industries to operate in and from Malta. Thanks to our early intervention to introduce a regulatory framework tied to virtual financial assets, for instance, we can boast of VFA companies that are operating in Malta. Most noteworthy is the fact that the EU is now in the process of implementing a regulatory framework that mirrors Malta’s.

Being at the forefront of such a sector has given rise to another positive aspect; Maltese companies will be able to operate across the EU thanks to a Maltese licence, which is what is now referred to as passporting rights. The gaming industry is also another sector which is flourishing while esports and video game development industries are still fledgling sectors, and this is only happening as a result of our holistic ecosystem which nurtures such niche industries. As for the Aviation sector, INDIS Malta is reaching finalisation stage of works tied to Taxiway Lima, a 12-million-euro project. The project will enable aircraft maintenance companies to service wide-bodied aircraft. Next year, a strategic plan for the airport zone will be launched which will see great opportunities arising as a result.

Concluding, same as during the pandemic, it is vital everyone continues to pull the same rope which has shown that Malta is one of the few countries which, despite its diminutive size, has fought unprecedented crisis and emerged unscathed. n