Issue link: https://maltatoday.uberflip.com/i/1233414
09.04.2020 2 NEWS Bortex producing face masks and medical scrubs THE Bortex Group of Companies has switched its local production capacity to produce face masks and medical scrubs. e initiative undertaken by the group is being taken in support of the Maltese COV- ID-19 response movement with the aim of assisting hospitals and clinics in Malta. e company has taken various measures in its various locations around the world in order to abide by the instructions be- ing given by the local authorities. ese include the closure of its manufacturing plant in Tunisia which will remain shut un- til the curfew in that country is lifted. Fur- thermore, all Bortex and Gagliardi retail stores both in Malta as well as overseas will remain closed until health authorities in each market give the green light to re-open. On the other hand, the Group's CEO Pe- ter Borg said that the Maltese production facility will focus exclusively on the pro- duction of face masks and medical scrubs to support the Maltese healthcare author- ities as well as to supply private organi- sations with their needs to the full extent that this will be possible. Borg said that the local production capacity is expected to reach between 20,000 and 30,000 pieces per month. Bortex is Malta's longest established and most respected name in formal men's tai- loring. Maltese entrepreneur Sunny Borg established the company in 1964. It contin- ues to supply the best names on the Euro- pean high street with private label product as well as its own Gagliardi ranges. MASSIMO COSTA PROPERTY prices could drop by around 10% over 2020 and 2021 due to the economic impact of COVID-19, a report claims. e report, compiled by real estate agents Property Hunters, predicts that property prices will fall due to decreased cash flow from short lets and conversions into long lets. e estimated average cash flow from renting a three-bedroom apartment in Sliema in 2020 would have been around €31,238 in the absence of the coronavirus. Because of COVID-19, cash flow will decrease to €23,429 in the case of a light impact, €11,714 if the impact is medium, and €2,929 if the impact is serious. The effect on the fair value of prop- erties, in terms of a decrease in prices, will be of -7.2% in the most optimistic scenario of a light impact, -12.3% if the impact is medium, and -17.2% in the event of a serious impact. The crash in short lets will impact Malta's GDP by at least 3% in 2020, the report says. "Occupancy in holiday short lets crashed well before the Maltese COV- ID-19 quarantine came into effect by 35% to 67% in March. These figures will worsen over time until travel bans are lifted," it says, adding that it ex- pects hotels to be similarly impacted. Domestic tourism will provide lit- tle relief to the industry, it says. "Ru- mours that the Maltese tourism sec- tor will be 'propped up' by domestic tourists stuck in Malta have little foundation in reality. A shortfall of 4.5 million nights in Q2 2020 will occur even if all outbounds Maltese tourism were to be replaced with holiday with- in Malta." The report predicts that COVID-19's impact on property prices could be short-lived, however, if historical trends are anything to go by. "If history is to repeat itself, property price corrections during and after ep- idemics tend to be short-lived (drops around 10%). Even the 1957 Asian flu pandemic had modest effects on pric- es," the report states. It adds the caveat, however, that "this economy shutdown is unprecedent- ed." COVID-19 was the catalyst for a correction in overly inflated property prices, the report says. "In the short term, withering tour- ism and excess inventory will drive down yields and valuations," it pre- dicts. "Forced sales, exacerbated by risk-averse lenders, are sure to pres- ent occasions for the opportunistic property buyer." Overall, the report expects the fun- damental macro backdrop to the Mal- tese market to be positive. "The crisis will hopefully spur a shift away from speculative, low-quality inventory," it underscores. Decrease in cash flow from short lets will impact 2020 GDP by 3% A fund management company based in Malta - Praude Asset Management Limited - has do- nated 500,000 protective masks to Malta's health authorities for use during the Covid-19 pandemic. e donation came on the behest of the asset management compa- ny's founder and owner, Massimo Malvestio, wo has resided in Mal- ta for the past six years, having moved here from Treviso in the Italian region of Veneto. When Covid-19 broke out in Veneto, it spread rapidly through- out the region. Realising that there was a short- age of surgical masks, the Gov- ernor of the region contracted a a world-renowned printer based in the region - Grafica Veneta - to print a number of protective screens/masks, to control the spread of coronavirus. e Veneto region bought and distributed millions of masks to all their municipalities for the general public to use. Having witnessed the success rate of these masks in Veneto, Mal- vestio decided to donate a number of masks to Malta. He contacted Malta's ambassa- dor to Italy, Joseph Cuschieri, who confirmed that Malta's health au- thorities would indeed welcome the much-needed face screens. Malvestio contracted the same printer in Veneto and paid for 500,000 masks for Malta. Last Friday the masks arrived in Malta and Malvestio officially pre- sented them to the Government. Although not a surgical tool, the face masks produced by Grafica Veneta have proven to be a valu- able safeguard designed for citi- zens. With proper use, this mask provided a resourceful solution combining fast availability and ef- fectiveness. In Veneto, the distribution of this protective gear to citizens provid- ed a much-desired relief on the supply for hospitals, where proper surgical masks must remain avail- able to healthcare professionals in their fight against coronavirus. Fund management company based in Malta donates 500,000 masks to health authorities