Last Sunday, while enjoying a rare leisurely stroll with an old friend of mine, I stumbled upon a small family-run bakery nestled in the heart of town. Known for its century-old pastizzi recipes, this bakery has a long and cherished history but its sustainability is now unfortunately under threat.

As I engaged in a hearty chat with the proud proprietor, a sad story unfolded, one that mirrored the grim reality faced by numerous small and medium-sized enterprises (SMEs) across Malta.

It is a story with one central theme: the owner and his family are working harder and harder simply to keep afloat.

The owner explained how rising operational costs, coupled with the acute shortage of skilled labour, were slowly squeezing life out of his family business. He was clearly worried about the situation. The bakery, which once flourished, attracting locals and tourists alike, is now struggling to survive.

Such conversations are indeed becoming more and more frequent, a reality far removed from the rosy economic picture repeatedly painted by Malta’s prime minister and his acolytes. The challenges faced by small businesses in Malta extend beyond this lone bakery, forming a pattern that is all too evident. Yet, the plight of such businesses is not given the importance it deserves in government circles.

Inflation, often ignored, is now a reality knocking on the doors of these enterprises. The government’s energy and water subsidies, welcome though they are, are not a sustainable solution. The question looms: what happens when the subsidies end? Where have all the EU funds supporting SMEs’ transition to energy efficiency gone?

The chronic shortage of skilled employees is another problem for SMEs. The recent survey by the Chamber of SMEs confirmed this, with many businesses desperate for such workers to keep their operations going. We need a long-term plan to address this challenge and not knee-jerk measures like what happened in the energy, health, and transport sectors, with SMEs and cooperatives paying the price for such incompetence.

The law on cooperatives needs to be revised- Robert Cutajar

The fact that we are an island has become an economic problem. The exorbitant shipping costs are not just figures on paper but a harsh reality that is a hurdle for businesses wanting to reach larger markets in the EU.

The stringent EU procurement regulations pose a colossal challenge for our SMEs. Tenders often become an uphill battle for SMEs, with costs outweighing the benefits. The call for a ‘Small First Principle’ is not just a slogan but a necessity to level the business playing field.

One particular branch of SMEs are Malta’s cooperatives, a small yet vibrant sector that is also struggling to survive.

The law on cooperatives, established in 2000, needs to be revised.

My frequent chats with all those involved in the cooperatives sector underscore a pressing need for thorough consultations before any legislative amendments.

The Nationalist Party’s stance is clear – we advocate a meticulously crafted, updated law, catering for the contemporary needs and aspirations of Maltese cooperatives. I hope that in Monday’s Budget the indispensable role of cooperatives in Malta’s economy will be recognised and supported with a well-considered legal framework.

It’s high time this Labour government acknowledges and tackles the economic hurdles faced by our cooperatives and small businesses.

The Nationalist Party calls on the government not to be complacent. The issues faced by SMEs and cooperatives are not mere bullet points for political manifestos but a reality that demands immediate attention and action.

Robert Cutajar

Yet, with the current government’s lethargy, SMEs are likely to continue paying a high price, awaiting an essential change in economic direction that will breathe new life, vigour and enthusiasm into our economy.

Robert Cutajar is the Nationalist Party’s spokesperson for the self-employed, small businesses and cooperatives.