Businesses have warned that government support measures amid the coronavirus crisis "will have no impact" and do not come close to what will be needed to sustain jobs. 

In a statement on Sunday, the Chamber of SMEs called for "drastic measures and real and immediate support to avoid mass redundancies".

"The government seems not be understanding the dire situation Maltese businesses are in," the Chamber said. "Businesses need real measures now and today as they will not be able to sustain their workforce any more. The time for second and third wave of help is needed here and now, otherwise it will be too late."

The government earlier this week announced measures for businesses worst affected by the Covid-19 outbreak, including a postponement of tax and social security payments due for March and April. 

However, the Chamber of SMEs said it had been "appalled" by the "unfit" measures.

It particularly criticised the placing of the burden of quarantine leave on businesses, which it said meant employers would have to bear the entire cost of any days added over and above the employee's existing leave entitlement. 

"Government has to wake up to the realisation that businesses will just collapse if they are not helped and more burdens are placed on them. We are only just in the first real week of impact and 5% of respondents have started redundancies and another 5% have released people on unpaid leave," the Chamber said.

"20% are experiencing problems in paying their wages. Collectively 35% of respondents will not be able to sustain their employment levels past a couple of weeks and decisions are being taken now. For the rest it will be a matter of a couple of months.

"Working remotely does not work for everyone and in all cases this will only take them so far. In the state of affairs sales are very slow or non-existent."

The Chamber said the absolute majority of businesses were calling for borders to be closed, and for business operations to be limited to the most essential, as well as for a clear government message against meet-ups and group recreational activities. 

"Other countries have already come out with real and tangible rescue measures and the Maltese government cannot keep on dragging its feet. Sectors leaving us will not come back," it said. 

Immediate measures were needed, it said, "to avoid mass unemployment and people ending in a dire situation".

Measures the Chamber is calling for

• Government to immediately cover two-thirds of businesses’ wage bill across the board including self-employed.
• Moratoria from banks for loan and overdraft repayments for the next few months.
• Suspension of taxation, VAT and social security contribution, mostly without repayment requirements for all businesses. Businesses will not be recouping their loss of business.
• Moratoria from fines and requirements of government entities
• Where government contracts are in place advance payments to be made.
• Guarantees to people coming with good imports to Malta that they can come up to ports to unload and allowed to go back.
• Use of Air Malta fleet to transport cargo.
• Insurance companies to pitch in beyond legal requirements.