Governments throughout the world have a daunting task to help their economies recover from the devastation of the pandemic. Initial fiscal support initiatives were intended to last a few months at most. With the coronavirus now showing how difficult it is to defeat, it is increasingly likely that more will be needed to cushion its impact on societies.
Evidence of this comes from research carried out by the Chamber of Commerce into 12 economic clusters, with feedback received from 150 business leaders. That feedback was not surprising. Small businesses are feeling the pressure of reduced turnover, especially in the tourism and retail sectors.
A reduction in VAT rates on tourism and hospitality and an extension of the wage supplement scheme are clear priorities for the chamber in its bid to save businesses, which will also save jobs.
The financial services sector is even more concerned about the future. It is not the effects of the pandemic that cause this concern. The possible grey-listing of Malta by Moneyval, the international anti-money laundering watchdog, is arguably a more significant threat.
Grey listing, which Malta will hopefully avoid, would have long-lasting effects on the economy even after the pandemic is under control.
It would therefore be short-sighted to consider the consequences of the pandemic as the only threat to Malta’s perceived economic success of the last few years. Before the pandemic, some economic analysts argued that Malta’s business model was not sustainable.
The over-dependence on the construction industry, mass importation of skilled and unskilled labour, and ever-increasing e-gaming and financial services activities are the Achilles heel of Malta’s economic strategy.
Meanwhile, the desk of the minister of finance must be inundated with requests for support from different sectors desperately worried about how they are going to weather the pandemic, even before the new blow to tourism as several countries put Malta on their ‘unsafe’ travel lists.
Business lobbies, like the chamber, the Malta Hotels and Restaurants Association and the Malta Developers Association, have well-oiled communication processes that ensure their members’ interests are kept on top of the agenda for fiscal support.
But there are other sectors of society that need to be heard too. For instance, it is indeed worrying that frontline workers seem to have been taken for granted in the present public health emergency.
A paramedic frontline worker who spoke to Times of Malta described deteriorating working conditions at the swabbing centres. It is shameful that these people, who are working so hard in difficult circumstances to keep everyone safe, are being frustrated instead of supported by every means. To his credit, the prime minister reacted straightaway to the report.
The minister of finance will also have to decide whether to prioritise the safe reopening of schools in September over other economic needs. If education is to resume safely, it will need new investment in classroom furniture, hygiene facilities and information technology for both schools and students.
Almost every sector of Maltese society will at some point be telling the minister or the prime minister: “Please Sir, I want some more help.” Through the networking that exists between the government, the business community and civil society, it must be ensured that the limited resources of the country are distributed as equitably as possible.
Admittedly, this pandemic has exposed the vulnerability of sectors that have previously been considered as robust. But the loud voices of the strong should not submerge the financial needs of the weak. Ultimately, the priorities set for the support of ailing sectors in this crisis must be motivated by the value of social solidarity.