Coronavirus: SMEs Chamber calls for government to support businesses as Covid-19 starts having impact

The Malta Chamber of SMEs is calling on the government to support businesses to get through the economic effects of the coronavirus, as local enteprises start reporting an impact due to Covid-19.

In a statement on Monday, the Chamber said that while the country’s first priority should be to safeguard public health, the economic damage caused by Covid-19 should also be limited as much as possible.

So far, three cases of coronavirus have been confirmed in Malta. The patients are stable, and no new cases have been recorded thus far.

The Chamber, however, said that it could confirm that local businesses had now started to feel the impact of the coronavirus on trade, and that in light of this it was joining calls made by its EU-level representative, SME United, for the government to support businesses economically.

“As a Chamber representing SMEs from all economic sectors, we can confirm that the coronavirus has already started leaving an impact on businesses,” the SMEs Chamber said.

“At this stage, the impact varies by sector. With changing consumption patterns, some are losing, and others are gaining. There are however some sectors that have already suffered significant losses due their absolute dependence on tourism and incoming events.”  

The Chamber said it was asking the government to support such enterprises, in order to avoid their closure and job losses, by making use of financial instruments to ensure liquidity and provide working capital by using existing State Aid Rules.

It warned that the virus' sustained impact on tourism could be more than some local businesses can take.

The SMEs Chamber has prepared a poster for businesses to put up in their premises

“The impact the coronavirus is having on tourism is expected to last beyond what these enterprises can sustain. With no work these enterprises will not be able to continue paying their employees. There are possibilities under the de-minimis regulation for rescue and restructuring schemes,” the Chamber highlighted.

The union said it would be conducting detailed weekly analyses among Malta’s economic sectors to monitor the situation. Reports of such analyses will be presented to the government in order to request support as the scenario continues to develop.

“Whilst initiating the process of the opportunities available under the de-minimis rules, the government is also asked to give room to support SMEs with payment for taxes and social contributions,” the union said.

The Chamber has also prepared a poster on coronavirus preventive measures which it is encouraging businesses to put up in their premises in order to help fight the disease while still providing a service to their customers.

Businesses should get in touch with the Malta Chamber of SMEs - both to obtain copies of the flyer and to make the union aware of any particular situation encountered in relation to the coronavirus - by calling 21 232 881 or emailing [email protected].