State measures to assist businesses stricken by the coronavirus outbreak seem to be bearing fruit, the Chamber of Commerce said Wednesday, adding that following a survey, it had halved its redundancies projection to 23,000.
It warned, however, that its forecast should be seen with a degree of caution as the decline in redundancy expectations might be influenced by an “imprudent assumption” that business would return to normal before summer.
It feared that this would most likely not be the case and businesses should plan appropriately for a longed period of economic closure by reaching out for available support.
The chamber said its survey was aimed to gauge the mood following government’s third aid package for industry, launched on March 24, which included monthly subsidies of up to €800 per worker.
The new findings, compared to a previous survey carried out between March 20 and 23, showed that the number of expected redundancies had gone down from 45,000 to 23,000.
“This outcome would seem to indicate that the measures put in place so far have had a positive impact on businesses, especially those operating in the hospitality sector, restaurants and non-essential retail segments although it also clearly indicates that more support is needed for other segments,” the Chamber said.
It noted that expectations had improved among those enterprises which would be benefiting from the wage supplement being offered by Malta Enterprise.
In this respect, it reiterated its appeal for the government to widen the economic sectors eligible for aid as those businesses may risk bankruptcy.
It said that three-quarters of survey respondents either do not qualify for the wage subsidy scheme or fall under the so-called Annex B, which covers up to €160 of an employee's monthly salary.
"It is clear that a number of operators in these last two categories need similar assistance to that covered by Annex A. Otherwise, these companies will have no choice but to let their employees go or risk folding up,” the Chamber said.
Wholesale and retail trade followed by manufacturing, education, construction and real estate, accommodation and food service, transport and logistics, professional services, are the sectors must likely to bear the brunt of the economic slowdown caused by COVID-19, it was pointed out. However, not all of these sectors are eligible to the same level of State aid.
The Chamber is insisting that support should be based on the loss of turnover when compared to the corresponding period last year.
It also called on its members to take an innovative business approach to ensure they would survive for the long term.