Issue link: https://maltatoday.uberflip.com/i/1300177
15 maltatoday | SUNDAY • 18 OCTOBER 2020 OPINION A budget of economic sustainability THE popular Maltese proverb 'Erfa' u sorr għal meta tiġi bżonn' loosely translated means "stash away and save up for when the need arises", and has never been as relevant as in the past few months, when the most un- precedented and unpredictable circumstances shook the world we know to its core. But Malta, our tiny rock in the Mediterra- nean, managed to once again prevail despite the odds. More significantly, Malta's economy proved its agility and flexibility in adapting to these adverse cir- cumstances. During the past challenging months, we were able, by dint of our past economic decisions, to immediately embark on an intensive economic recovery plan with the sole aim of ensur- ing the survival of our business- es, and more importantly, the safeguarding of as many jobs as possible, an endeavour in which, despite the urgent timeframe, we have succeeded. Through landmark agree- ments which met with the ap- proval and the commendation of several stakeholders across the board, businesses were fully supported to preserve the jobs of their employees through sev- eral unprecedented initiatives. The regeneration of our econo- my, through a considerable eco- nomic injection, was a crucial step forward to re-ignite once again a sense of trust and opti- mism; wage supplements, rent and electricity subsidies, the postponement of NI and VAT payments as well as the €100 government voucher scheme ensured that our businesses managed to stay afloat during this time, while simultaneously safeguarding the livelihood of thousands of families. To their credit, despite the turbulent and challenging cir- cumstances, several businesses demonstrated their true en- trepreneurial and innovative spirit by launching their own initiatives, upskilling their work force, reinventing their opera- tions, overhauling old business models and identifying means to maintain their operations through significant technolog- ical investments and telework initiatives. As a government, we intend to maintain our consistent open- door policy to our businesses, big or small and continue to as- sist in every way possible, in the best interest of our economy's growth and the wellbeing of all the social strata within our so- ciety. This fundamental mindset, which we have adopted since the very beginning, is clearly demonstrated in the upcoming budget which strives to ensure continuity and provides the all-important impetus to sustain our past successes and continue building upon them. It is therefore hugely signifi- cant to note that for this year's most anticipated budget we have left no stone unturned to ensure that the initiatives and strategies contained therein reach out to an even wider array of sectors. In a scenario made up of several variables, the only cer- tainty is that we need to accel- erate full economic activity once again within the parameters of a new normal. To this end, we an- ticipate that a substantial invest- ment injection into our business community will serve as valua- ble stimulus for further invest- ment by the same community. The exploration of new eco- nomic niches in the past has proved to be crucial to our country's growth and as clearly reflected in Budget 2021 we in- tend to continue in this stance, by upgrading our infrastructure through specific investment, the mainstay of our industry, en- courage new businesses to set up shop in Malta, nurture new talent and foster careers, bolster investment initiatives, and help start-ups launch their innova- tive projects. In practical terms, we aspire to continue nurtur- ing the ideal ecosystem for our economy to flourish. As oftentimes defined by sev- eral world-renowned institu- tions and credit agencies over the past few months, Malta's economy was declared to be the least impacted by the pandemic. However, now is not the time to rest on our laurels but a time when we must ensure our econ- omy's sustainability and further still enhance its growth. As opposed to past adminis- trations, we have sought to not only pay lip service to the issue of our economy's sustainability but have initiated over the past few years a seismic transition away from a linear economy in- to a more sustainable, circular one, which will ultimately result in considerable cost savings, relieve the pressure on our al- ready limited natural resources, increase our competitiveness in a more global context, while si- multaneously creating new job opportunities. As will be defined in Budget 2021, now is the time to con- tinue with this shift which will not only safeguard our environ- ment, by protecting and con- serving and ultimately enhanc- ing our natural capital but also greatly contribute towards our country's economic growth and wellbeing. Perhaps, if nothing else, the ongoing pandemic has clear- ly shown that globally the way forward is by utilising to the hilt the technological advance- ments available to us. Until a few months ago digitisation was simply the buzzword of the 21st century, but beyond the rheto- ric, technology has provided a semblance of normality to hu- mankind in what are otherwise perverse circumstances. As a government, we have long since recognised the growing impor- tance of technology and e-com- merce and its contribution to our economic growth and have strived to nurture a cyber-ready culture in our midst. Budget 2021 will continue on this path and will seek to fully aid, support and bolster enter- prises which aim for a greener, more digital outlook in their operations. In an ever-changing global scenario, this approach ensures that all-important com- petitive edge for our industries and businesses. The upcoming budget, de- vised through arduous if fruit- ful meetings with the relevant stakeholders and social part- ners, fully acknowledges that it is only by consolidating what we have achieved, the bolstering of existing sectors and the nurtur- ing of new niches, that Malta will yet again prove its econom- ic resilience and its agility to adapt. Only through sustaina- ble economic growth and the attracting of new investment to our shores, can we ensure the creation of new jobs and op- portunities which further con- tribute to our attractiveness and competitiveness internationally. As a government our pledge remains, as we have demonstrat- ed time and again, that we shall continue with our undiminished commitment towards this goal, which will ultimately ensure a more flourishing economy and more importantly, a better qual- ity of life for all our citizens. Silvio Schembri Silvio Schembri is minister for the economy "We intend to maintain our consistent open- door policy to our businesses, big or small and continue to assist in every way possible, in the best interest of our economy's growth