‘Definitely much better if we had a clear yes or no’ – Chamber of Commerce on electoral uncertainty

The Malta Chamber of Commerce rejected the Prime Minister’s offhand dismissal of how electoral uncertainty negatively affects the prospects of local enterprise, exposing a rift between the government’s projection of stability and the Chamber’s assessment of the country’s business environment.

In response to The Shift’s request for a comment on the public spat between Prime Minister Robert Abela and Opposition Leader Alex Borg, who accused the former of “creating uncertainty for businesses” by failing to commit to an election date, The Chamber was unequivocal in its assessment of the situation.

“Persistent talk and rumours of an imminent general election always create a feeling of ‘what could happen’ and ‘what will be in store’,” a spokesperson for the Chamber said.

“While calling an election is the government’s prerogative, it would definitely be much better if we were to have a clear yes or no answer as to whether an election is round the corner, and if yes, the date of when it will be held. When the political landscape remains unclear, companies may naturally opt to delay investments, and this can stifle economic momentum and innovation,” the spokesperson added.

The Chamber’s comment is particularly significant because it represents a broad range of business interests, including importers, distributors, retailers, manufacturers, and other similar economic service providers.

The Prime Minister’s dismissal of the Opposition Leader’s accusation, along with his consistent refusal to rule out a snap election whenever anyone asks about it, stands in stark contrast with the increased visibility of political messaging on billboards dotting the country, as well as the Labour Party’s heavy spending on its week-long congress for members last week.

“Moreover, The Malta Chamber insists that electoral campaigns by any party must rise above the traditional populist trap of trying to outbid one another’s promises. Unsustainable measures ultimately burden taxpayers and undermine long-term prosperity,” the Chamber’s spokesperson said.

“That said, currently Maltese businesses are far more preoccupied with the escalating geopolitical turmoil in Iran, which is driving real disruptions: soaring fuel costs, supply chain delays, raw material shortages, and exorbitant shipping prices, amongst others. These global pressures demand our focus,” the spokesperson continued.

In March, The Shift published a report highlighting how Malta’s energy supply is critically dependent on the island’s interconnector to Sicily. Much like other mainland European member states, Italy depends heavily on LNG sourced from Qatar, much of which remains stranded in the Strait of Hormuz as a result of the US-Israeli war against Iran.

While the Prime Minister continues to insist that “Malta will not run out of power plant gas or aviation fuel”, effectively contradicting the dire warnings about impending Europe-wide shortages issued by the head of the International Energy Agency, the Malta Chamber is the latest local stakeholder to insist on the need to directly address the war’s “disruptions”.

Though the White House was quick to claim that the Strait of Hormuz was reopened for business after whispers of a frail ceasefire were confirmed by Iran’s military earlier last week, the latter was even quicker to suggest that the Strait may quickly be closed down if the US maintains its ongoing blockade of Iranian oil.

“We urge all political actors to prioritise stability, provide policy clarity, and collaborate on addressing these tangible threats to our economy,” the Chamber’s spokesperson added.

The Shift also reached out to the Chamber of Small and Medium Enterprises (SMEs) for comment.

In a brief response, the Chamber of SMEs said that its representatives are “currently conducting the Q1 SME Barometer survey”, adding that “the SME Chamber believes it is too early to respond” to The Shift’s questions on the matter.

“Further details on the current business situation will be announced during a press conference presenting the Q1 SME Barometer results by the end of April,” the spokesperson added.