The Malta Employers Association has published a memorandum to political parties, outlining its proposals for the future, including on support for specific economic sectors and also for parliamentary reform.
One point it made, is about the need to transform the economy towards higher value added sectors that depend less on labour intensive activities.
The country also needs to invest in human resource development in anticipation of the challenges and opportunities of AI technology, the association said.
Among its governance proposals, the Malta Employers Association addresses direct orders. “The rules of public procurement are being flagrantly ignored with contracts amounting to millions of euros being awarded through direct orders. This is creating an unlevel playing field among businesses and serves as a hotbed for corruption,” it says.
It wants the incoming administration to commit to respect and strengthen existing governance structures related to transparency in public procurement.
Regarding government contracts, among other things the association wants all contracts entered into by Government with third parties to be made public within reasonable time – not exceeding three months – since the date of signing.
It also said that Government should not enter into binding agreements (commercial or otherwise) with entities whose ultimate owners are unknown, and that such agreements should be made illegal.
The association also wants to see the introduction of more refined metrics to capture progress (or otherwise) in economic expansion, well-being and quality of life. Such metrics, it said, “need to be more actively incorporated in Malta’s policymaking structures and procedures.”
Free trade zones
In line with Malta Vision 2050, which envisages the Islands to better exploit the potential of its maritime and logistics capabilities, the Malta Employers Association supports recommendations for the setting up of new free-trade zones to serve as a regional logistics hub.
Extending school hours
In another point, it said that part of the solution of enhancing work-life balance and quality of life of employees and their offspring is through an extension of school-hours.
“Malta Employers responsibly makes this proposal to the incoming Administration, in full knowledge that this requires strong political will, careful planning and detailed discussion.”
It said that striking agreement on this proposal could have national benefits including a better functioning labour market, improvements in the wider aspect of education in the country, a possible encouragement to have children or more children, and enhanced quality of life of families.
It said that extra-curricular activities like sport, ballet and religious doctrine sessions could be taught in schools rather than in various locations and this does not necessarily require the involvement of the day school teacher.
Education and skills
The Malta Employers’ Association is calling for an open and inclusive national debate on “the urgent transformations required in Malta’s education system.”
Among its proposals regarding education and skills, the association said that work-based learning should also be expanded beyond vocational streams and integrated across other academic pathways, and that a concerted effort to reduce the incidence of early school leaving is needed.
It is also pushing for channelling students into career oriented disciplines such as STEM subjects; enhanced and updated career guidance to shed light on the opportunities, skills offered and demanded today and the immediate future; and stronger input of industry in the design of courses.
Low-birth rate
Regarding Malta’s low birth rate, the association calls for a holistic plan from government which would be derived from appropriate consultation with all stakeholders including the public. Due to an ageing workforce, it said that if properly addressed, the situation may present an opportunity for the labour market through the prolonged retention of valued local talent.
Government may also consider providing a fiscal incentive – enhanced pension or a lump sum bonus – for those who remain in employment till the age of seventy and beyond, it said.
With regard to family friendly measures it said that they should focus on families. It recommended that any government induced measures to improve leisure time should focus on families with young children.
Shorter work week and economic transformation
It proposes avoiding blanket measures that place jobs and competitiveness at risk, and that any discussion on a shorter working week must be preceded by economic transformation to drive smart economic growth through capital investment, digitalisation, business process re-engineering.
Among other things, it also said that parents with a second child younger than six years of age to be given the option of requesting to work a 32-hour-week.
Planning
Regarding planning and construction, the association said that the structures and legal frameworks around the planning and permitting process must restore the trust and confidence of the citizen. It also called for harsher penalties applicable to irregular developments. It said that any development on ODZ areas need to be subject to a two thirds majority in parliament.
On Transport, it supports the idea of a multi-modal transport system, which should be introduced as a phased project in the interest of feasibility, sustainability, opportunity cost and public health considerations.
The association also issued proposals for investment in infrastructure for maritime cargo operations. Its proposals include calling for the allocation the necessary resources and effort towards improved infrastructure for Roll-On/ Roll-Off (Ro-Ro) operations on which the Islands strongly depend for the importation of consumer and industrial goods.
For the manufacturing sector, the association calls for lobbying with the EU to allow the establishment of a national fund to support Malta- based businesses to neutralise the disproportionate transportation costs, and also calls for the availability of new, functional factory space at competitive rates, among others.
Tourism
Regarding the tourism sector, it said that Malta cannot be an attraction to all tourism segments simultaneously. “Instead of focusing on numbers, Malta should gradually target specific high-value-added niche markets to increase the share of quality tourism to the country.”
It also called for a clear strategy to guide operators in the industry to align their current and projected activities with established parameters. It also said that the authorities need to facilitate the Industry in sourcing skilled Human Resources (Maltese, EU, TCN) especially in specialized and client-facing roles.
Proposals for Gozo
The association issued a set of proposals specifically for Gozo.
Among other things, it said that Gozo can be turned into a singular wi-fi hotspot, that Gozo can be positioned as a place of relaxation for Maltese, Gozitans and tourists alike, and that it has the potential to be marketed as a cultural hub for high end tourism.
The association also recommends enhancing the health services through another hospital can develop Gozo as a centre for medical tourism, and that Comino should become a natural reserve, a place for relaxation, cycling, walking, bird watching with minimal construction intervention.
Political party funding
The association has also backed the idea of state funding for political parties. It said that it has always supported efforts to dilute the proximity of major political parties to businesses, describing this proximity as “toxic”.
Another proposal by the association is for parliamentary reform. Among other things, employers are calling for the scrapping of the quota system for female MPs.
Their proposals for Parliamentary reform also include reducing the number of MPs to 45 seats, that MPs would not hold any positions in government entities nor have interest in private sector companies which can create a conflict of interest with their duties as MPs, and the introduction of a system whereby parties may appoint technocrats to serve in Parliament.
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