Issue link: https://maltatoday.uberflip.com/i/1336090
9 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 A survey carried out by the Chamber for Small and Medium Enterprises among its members on the pros- pects for 2021 is an eye-opener. It confirms the problems that commercial enterprises have been facing for almost a year now as a result of the COVID-19 pandemic. e three major problems busi- nesses are facing can all be traced back to the lack of consumer spending, whether this results from changed behaviour or deci- mated markets such as tourism. A quarter of businesses indicated low sales as a problem, followed by 17% who indicated cash flow and 15% that faced problems in col- lecting payments. Significantly, 65% of surveyed businesses said they were bene- fitting from the publicly-funded COVID wage supplement. is picture provides the context for the bleak prospects businesses are seeing in 2021. Asked for how long they can survive, 32% said longer than 12 months but 28% indicated up to six months and 27% up to 12 months. A significant 13% said they would only survive for the next three months. And there is no doubt that sur- vival for most also depends on continued wage support. e sur- vey found that 69% of businesses would require wage support for at least another year, while a quarter indicated six months. Only 10% of businesses believe normality will return by summer. ese figures paint a completely different picture from that which Prime Minister Robert Abela would like us all to embrace. It appears that very few business- es share the Prime Minister's op- timism for a return to 'business as usual' by May. It is likelier for the situation to start improving in the second half of 2021 and not without continued wage support. Much will depend on the vac- cination roll out and the impact this will have on bringing down the pandemic numbers but even then, recovery will not be quick. Recovery in tourism will not only depend on the situation in Malta but also on the source markets. At this stage, the business com- munity does not need loose talk or false hope but a sober, ongoing as- sessment of reality and clear meas- ures to address it. is is no time for over-opti- mism. Everyone wants a quick re- turn to normality but getting there is going to be painful. Abela's optimistic outlook may be intended to keep spirits high but the Prime Minister must be careful of not appearing cut off from the realities on the ground. To be fair, the government has re- sponded to the problems the busi- ness community has faced as a re- sult of the pandemic but loose talk has at times sent mixed messages. ere are many facets to fighting the pandemic. ere is the medical and health side of the battle, there is the financial aspect but there is also the psychological aspect. Psychologically, it is important that morale is kept high but this must not translate into false hope. False hope can rebound in an ugly way and disrupt progress. e government has to strive for a balanced approach that keeps in mind all these facets, which is why this leader appeals for moderation in Abela's words. e survey results released by the Chamber of SMEs must not be ig- nored or painted over by the brush of positivity simply for the sake of it. No time for false hope 4.2.2021