Back in April, the Maltese maritime industry’s lobby group sent out an SOS to authorities, saying there would be “deep and long lasting effects” on its 11,500 employees without rapid state intervention. Now that the 2021 Budget has been announced, which was largely seen as a stimulus package boosting the economy against COVID, the Malta Maritime Forum (MMF) filled in WhosWho.mt on its reaction and the state of the industry today. 

The Forum believes that, in general, it was a good Budget. It welcomed the continuation of the wage subsidy, saying however that it should have been maintained until June 2021 “at the very least”.  

However, it brought attention to a number of important operators in the shipping industry, such as the service providers who are central to the ship registration process, who did not receive any wage subsidy whatsoever.  

Reacting to the announcement that the Ship Registry would be “strengthened”, the MMF said that the success of the Ship Registry is owed to the healthy collaboration between the public and private sectors, "and this winning formula has to be built upon and expanded further by regular consultation and co-operation.” 

The MMF called on the Registry to invest in systems that facilitate customer care, which they say has suffered as a result of COVID-related measures. “Response time to queries and streamlining of support services has to be continuously audited and adjusted to ensure that Malta remains in the forefront when it comes to ship registration.”  

“The stand taken by the Maltese government on issues affecting shipping in general – such as carbon emissions – also play a part in the attractiveness or otherwise of the Malta flag, and hence it pays the Government to consult with the industry before taking positions so that it is constantly in touch with the clients of the flag.” 

The Budget also mentions more promotion of the super yacht servicing industry. The MMF welcomed this measure while pointing out that the country needs to invest more in yachting facilities. “The owners of the super yachts will choose locations where they have a full complement of services.” 

The Forum also highlighted the knock on effects of further investment. “This sector of the industry not only generates wealth through the port stay of the yacht, but also through the creation of employment opportunities if Malta invests in the right career paths to deliver the type of personnel that are normally engaged in this sector.” 

However, it is very important for the good intentions expressed in the Budget not to conflict with what happens on the ground. The MMF called out the hop on hop off terminal in the Msida Yacht Marina for “creating uncertainty and a potential danger to navigation”, saying “it is difficult to understand how it is going to add any value to the intended promotion of the yachting servicing industry”. 

The Budget also announced various infrastructure works, particularly in the Grand Harbour, which were lauded by the Forum. It singled out the shore-to-ship electricity line as a key factor in maintaining a strong position with cruise liners, while welcoming other capital investments in breakwaters and quays that would increase the berthing capacity of the port.  

As regards measures they felt should have been included in the Budget, the MMF said that the electricity and rent subsidies should also have been extended to March. 

When asked about their comments made in April and how they feel about the state of the industry today, the MMF acknowledged that the situation back then was “bleak”. With ports open since the 1st of July, “we can pick up business lost due to this closure”.  

But the industry, like most of the wider economy, is not out of the woods yet. “The situation is still fragile due to the second wave of COVID-19 and hence Government assistance to the industry is certainly welcome.”