As businesses are reeling from the loss of business resulting from the COVID-19 pandemic, co-founder of QuickLets and Zanzi Homes Michael Mercieca has called on the Government to tap into funds in order to alleviate the stress to businesses.

As the world grapples to deal with the pandemic, Malta has announced all restaurants, bars, gyms and cinemas will be closed as of tomorrow. Meanwhile, reports have come in regarding a European Commission announcement banning non-essential travel in and out of the EU for 30 days.

Those in the hospitality, retail and entertainment industry are scrambling to cut costs and survive.

“We are living in unprecedented times,” Mr Mercieca stressed.

“Malta’s economy is hugely dependent on foreign inflows of investment and people, both of which are currently under threat.

“The prudent and successful economic strategy of the past years, together with the fact that the Malta Individual Investor Programme has contributed to a Sovereign Wealth Fund, should mean that the Government of Malta is well placed to provide the critically needed financial stimulus to support the Maltese economy,” he said.

Recently, Government announced its first wave of measures, introducing a grant to incentivise teleworking and a providing a two-month moratorium on collecting taxes. 

Mr Mercieca, together with the Chamber of SMEs, believe the measures to not go far enough.

“No one is looking to take advantage of the terrible situation or to get a handout – the wellbeing of our employees is a number one priority and while we will continue to make every effort, the Government needs to step in, immediately,” Mr Mercieca commented.

He pointed towards how “certain sectors are seeing a reduction of close to 80 per cent in revenues,” adding that “it is impossible to finance costs beyond the very short term at these levels.”

In light of this, he called on the introduction of policies to absorb a portion of the salary costs of employees, subsidization of commercial rent and policies to help bridge businesses suffering from a cash-flow gap:

“Firstly, policies need to be put in place to absorb a portion of the salary costs of employees, be it through the waiver of payment of payroll tax or otherwise. Further support measures for home working should also be implemented.

“Secondly a mechanism should be put in place to subsidise commercial rent – tax breaks for property owners which are passed on to tenants could be one solution.

“Thirdly, bridging the cash flow gap for businesses to make continued loan repayments – be it via a soft loan or otherwise.”

Mr Mercieca also called for a support fund to be set up for smaller businesses in the form of a cash grant, “to ensure the ongoing sustainability of their businesses”.

“Through helping SME’s and businesses at large, we are protecting the standard of living of all employees. The cost of supporting now will be much less than the long-term repercussions of doing too little.”

As well as co-founding QuickLets and Zanzi Homes, which now has a team of 405 agents and 28 offices across Malta and Gozo, the Group also has investments in a number of other industries.

Mr Mercieca is an accountant and past tax lecturer by profession, having sat on both the Malta Institute of Tax and Malta Institute of Accountant’s Tax Committees.