Malta Chamber of SMEs warns against ‘unsustainable electoral pledges’

The Malta Chamber of SMEs has called on political parties to exercise caution in regards to the increasing number of electoral promises being announced without any form of prior consultation with social partners, and which would directly impact employers and businesses.

“Such measures, without proper consultation, affect the business community and would especially and disproportionately affect micro and small enterprises, which make up the absolute majority of businesses in Malta,” the Chamber said in a statement on Sunday.

“While we recognise that electoral campaigns generate considerable enthusiasm and at times, overly ambitious pledges, we cannot remain passive when such promises have a direct impact on the livelihoods of small businesses and their employees,” it said, without making reference to any proposal made by either major party.

The Chamber said that social partners expect to be consulted in advance, on any proposed incentives that may affect SMEs, in line with established practice over the years.

“We are concerned that several of these proposals do little to enhance productivity and address the labour shortage, which when implemented through a blanket approach, may prove unsustainable in practice and have repercussions on both businesses and the business community,” the Chamber said.

The SME Chamber called for greater maturity and responsibility in public commitments, ensuring that proposals are grounded in proper feasibility assessments rather than driven solely by electoral promises. “Moreover, even measures that do not directly target the small business community can have wider economic repercussions, including possibly reducing investor confidence,” it said.

The SME Chamber said that it is currently working on a number of constructive proposals and remains committed to engage with all stakeholders.

The SME Chamber said that it looks forward to seeing proposals targeted at SMEs that genuinely drive productivity and safeguard the wellbeing of employers and their employees.

“We welcome discussion on solutions that support sustainable economic growth while effectively addressing the realities faced by Malta’s SMEs.”