Issue link: https://maltatoday.uberflip.com/i/1299109
7 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 M alta is facing a worrying surge in COVID-19 in- fections that cannot be ignored. e seven-day average of new infections has been increasing and the latest surge does not appear to be linked to out- breaks in old people's homes. Malta is no exception to the rest of Europe, which is experiencing a wave of infections that has forced dif- ferent countries to tighten restrictions and introduce lockdowns. With new infections hitting a record 111 cases yes- terday, and Malta recording its 45th death, the country cannot continue functioning as if nothing is happening. is leader will not advocate extreme lockdown meas- ures but if the infection rate continues to rise unabated it will have a natural crippling effect on the economy, apart from health. In order to avoid an economic start-and-stop situa- tion that could be very damaging, the government has to act now. It must opt for a cruising situation, even if this means moving forward at a slower pace. An engine chugging along but never stopping will ensure that all the cogs remain active and prepared to turn faster when things take a turn for the better. is is why government must ensure that safety pro- tocols remain in place and discipline emphasised. Enforcement is necessary but lacking and this is im- portant also from a business perspective to ensure a level playing field among operators. It is unfair for clubs to be shut because of social dis- tancing concerns but bars being allowed to flaunt the sit-down rules, turning into mini discos over the week- ends. It is unfair on restaurants that have incurred expenses to adhere to safety protocols to have to compete with others where these rules are ignored left, right and cen- tre. Enforcement must be stepped up and new restric- tions such as the wearing of face masks in all public places introduced. And for this to be successful there must be clarity in communication. e authorities must retain the nimbleness of lifting and re-introducing measures in response to evolving circumstances and they must be open about this. is is not an easy situation for everyone and with- in this context, Monday's budget must provide a short-to-medium term cushion for businesses and families. e budget must bolster domestic demand through targeted economic and fiscal incentives. But it must also support families on the lower end of the income scales to avoid a social backlash. e budget must provide a relief package for compa- nies that remain hard-hit by the pandemic. is relief package must include continuation of the wage support scheme, substantial relief from water and electricity bills and a reduction or elimination of government-in- duced costs such as licence payments. But the plan must also provide short to medium term incentives to those businesses that want and can ex- pand operations. is includes export-oriented com- panies. It is only through cash earned from abroad that the Maltese economy can hope to generate steam to keep the engine going strong. With tourism, unlikely to recover anytime soon, fo- cussing on other export industries is going to be cru- cial. ere is hope that a vaccine for COVID-19 will be available for commercial distribution by the first half of 2021 but the budget must also take a longer-term view by providing the infrastructure and incentives for new industries. is forward planning is important, especially at a time of global uncertainty caused by the coronavirus pandemic. Having a roadmap that allows space for rapid change depending on the prevalent circumstances is going to be crucial, especially if it gives businesses certainty over a span of time. A COVID surge and the budget 15.10.2020