Issue link: https://maltatoday.uberflip.com/i/1516667
4 NEWS 29.2.2024 CONTINUED FROM PAGE 1 Introducing the topic, MBB President Alison Mizzi stated that reliable payment streams are key to a competitive econo- my and highlighted that deferred or late payments affect businesses across all sectors, with SMEs bearing a dispropor- tionate burden. She acknowledged that late payments cause administrative and financial burdens, which are particular- ly acute when businesses are in different EU countries and noted that cross-bor- der trade is inevitably impacted. Malta Chamber Deputy President Nick Xuereb asserted that although he agrees with a robust and fair system that sup- ports the interest of creditors, late pay- ments tend to increase in times of crisis and economic turmoil. e inability to meet overheads and operating costs by most SMEs is a circumstance that needs to be acknowledged. He therefore cau- tioned for proportionality in such cir- cumstances. Mr. Xuereb also added that while payment delays have a significant impact on business liquidity and cash- flow, the need to teach how to deploy good credit management practices to secure better cashflow and always main- tain good customer relationships, should be given much importance. MHRA's Operations Executive, Tonio Cini, emphasized the significance of upholding contractual freedom in busi- ness-to-business transactions. He noted that a one-size fits all approach to tack- ling late payments may not be effective, highlighting the diverse challenges faced by hospitality SMEs during various busi- ness phases. He expressed concerns over the potential negative impact on these businesses if they are required to adhere strictly to the 30-day maximum payment terms, citing liquidity shortages and in- creased administrative burdens as key factors. Despite this, he recognized the importance of implementing stricter dis- cipline and consequences for companies that fail to comply with agreed-upon payment terms. He suggested that meas- ures such as interest on late payments could discourage abuse of financing terms. Josef Busuttil, Director General of the Malta Association for Credit Manage- ment (MACM) noted that it is essential to differentiate between credit terms and late payments. In his view, the pro- posed Regulation has fundamental gaps as it is only tackling the symptoms of late payments rather than solving the problem. Mr. Busuttil explained how several non-perishable products have a long business cycle and by nature re- quire more than a 30-day credit term timeframe. Where a good relationship between two trading companies exists, creditors would have no problem grant- ing longer payment terms. is would not be the case where debtors repeatedly default on their payments. Companies are best placed to evaluate the risk of their business and make decisions that suit their interests and of their business clients. Brian Grima, Senior Manager at the Ministry for the Economy, Enterprise, and Strategic Projects agreed that a stronger Directive would have been a better choice of legal instrument than a Regulation to avoid a one-size-fits all approach, which does not reflect the dif- ferent business environments in all EU member states and risks being counter- productive. He confirmed that the Maltese Gov- ernment understands the importance of freedom of contract for the Maltese business community and has advocated this in the EU Council. On the issue of enforcement, he mentioned that the re- mit of any future enforcement authority established by the Regulation must also reflect what is rightly needed in each country. e business session was moderated by MBB EU Affairs Manager and Head of Brussels Operations Daniel Debono, who also gave a presentation outlining the key provisions of the EU proposal. e Malta Business Bureau is the EU business advisory of e Malta Chamber and the Malta Hotels and Restaurants Association. It is also a partner of the Enterprise Europe Network. e business session can be viewed from the following link: https://www.youtube. com/watch?v=5gqWj4YpUJc EU Late Payments Regulation Business representatives call on differentiating between late payments and long payment terms INNOVATION in the Internet of ings technology is set to thrive after melita.io – Melita's arm with offices in Malta, Ger- many, and Sweden – joined forces with Wales Malta Initiative (WMI), a not-for- profit, UK-based organisation. is collaboration will lead to growth in the areas of digital and green technol- ogy, life sciences and knowledge trans- fer initiatives. As a trusted connectivi- ty provider, melita.io will work closely with Welsh and Maltese IoT solutions partners to maximise opportunities and drive mutual growth. is partnership will also see melita.io's participation in the Malta Life Sciences Network panel tomorrow, February 29, as well a presence during Wales Week Malta, an annual celebration of Welsh heritage and culture around St David's Day on Friday, March 1. Kenneth Spiteri, Director of Business Innovation at melita.io, said: "We are happy to collaborate with the Wales Malta Initiative and contribute to its mission of fostering collaboration be- tween Wales and Malta. As a global IoT connectivity provider, we look for- ward to leveraging our expertise and resources to support initiatives that drive innovation and growth in both nations." e WMI aims to forge closer ties be- tween Malta and Wales and build collab- orations across various sectors, includ- ing trade development, culture, sport, tourism, education and research Reuben Mifsud, co-Chair of WMI based in Wales, said: "Not many people realise the strong connections that ex- ist between Wales and Malta. Despite a long history that unites the two nations in the community, sport and business, a lot goes unnoticed to this day." "We are changing that, highlighting some of the ties that already bind and helping start new initiatives in areas as disparate as academia, culture, tour- ism, diaspora and governmental collab- oration. Wales Week gives us a global platform to shout about all the exciting grassroots initiatives to the world," he said. e events of Wales Week Malta form part of the wider Wales Week World- wide calendar of events (https://wale- sweek.london/). For more information, please visit www.walesmalta.com. melita.io joins Wales Malta Initiative to promote IoT