Now that we have just saluted November and have moved into December, the whole world is at the doorstep of ‘The Most Wonderful Time of the Year’, this year with a twist. A Christmas with a difference. Family gatherings will be limited, hugging our loved ones will break established norms and exchanging presents will be away from the traditional rituals. Shopping Malls will be emptier, Secret Santas are not so secret anymore, Christmas cheer will be somehow limited and lastly, that last minute shopping rush will be eased, since buying presents can be done from the comfort of our homes.
The 2020 holidays are highly likely to be different. This is usually the week when everyone will be crossing off their to-buy list. With this in mind I urge you to support our businesses and economy. This is a great opportunity to recognise local talent and give a completely new and appreciative meaning to the term ‘Made in Malta’; be it artisan products or retail websites that have been set up and bolstered in a bid to adapt during the times of the pandemic.
This is the much-awaited time of the year; be it for the John Lewis Christmas Advert and other worldwide businesses including local ones who consider this time as crucial to pursue with their day-to-day operations. During the past few weeks and in view of Black Friday sales, several were those who took advantage of the plentiful discounts on offer, companies mobilized themselves by introducing local deliveries and some went as far as to create customer personalized gift lists which targeted all budgets. Therefore, it is highly apparent that this is the time to be innovative and mark your mark during such extraordinary circumstances.
As a government, we ensured that we stand shoulder to shoulder with our businesses, families and protect and safeguard the livelihoods of many. While other countries are looking at establishing strict lockdowns, which as recent history shows is a sure-fire way of harming the economy, as well as Governments now discussing severe austerity measures, this small island nation, our nation, stood the test of time and sought to incentivise, aid businesses pursue their projects as well as maintain the unemployment rate stable and the lowest in Europe. As a government we have consistently proved that in times of adversity we sought to convey certainty. The fact that as Prime Minister Robert Abela announced, closed bars which shall experience a rather blue Christmas this year, will be given the Covid Wage Supplement backdated to November, is a case in point. We continued listening and kept our finger firmly on the pulse of the industry as a whole and taking actions where necessary.
Official data reaffirms our commitment to the wellbeing of our nation despite the inopportune circumstances. If we look at the overall value added in the Maltese economy, this fell by 7.1% during the first half of the year. By contrast the value added of the manufacturing sector fell by 2.7%. This despite the great dependence of manufacturing on external demand, which was in free fall during most of this period.
The livelihood of our workforce is perhaps the most important aspect which we have always taken to heart. However, despite the doom and gloom emanating from the world around us, employment in our local industry fell by just 1.1%, a clear indication that employers did not react to the fall in demand by reducing their demand for labour in an equivalent fashion. Similarly, and even more encouragingly, although wages across many sectors were reduced during the pandemic, the Labour Force Survey suggests the basic wage in manufacturing went up from nearly €1,700 per month last year to nearly €1,800 per month this year.
When it comes to exports, we have quite a particular situation where, although overall goods exports have fallen, there are a number of sectors where there have been encouraging results, amongst them in firms producing pharmaceuticals and medical supplies, printing materials and optical instruments. This can be even manifested through economic sentiment. In fact, notwithstanding the fact that economic sentiment remains restrained, according to the Commission’s business sentiment survey, when compared to April overall confidence has improved by three quarters.
Moreover, sentiment now stands at par with that in the rest of Europe. Some form of encouragement come from the fact that last month a majority of over 30% of industry operators stated they are expecting an increase in production. This is an astounding result when one considers that in April more than half operators were expecting a fall in orders. When asked about their order books, those participating in the Commission’s survey have said that they have orders that require about eleven months of production to be completed.
But what do these statistics mean and even more importantly, how do these translate in tangible terms to the average man in the street and his family? In simple terms, while we recognise that 2020 from an economic aspect (in all aspects, if truth be told) yielded much poorer results than 2019, the prospects for the near future are not as negative as one may have anticipated.
To this end, we must not look back because, as the saying goes, that is not where we’re going and while the strength of the second wave of COVID, has affected all aspects of our economy, the recent news about the effectiveness of the vaccines suggests that 2021 may prove to be a turning point. This is even reinforced by the recent presidential elections in the US which have changed the narrative on global trade. We are already seeing the UK moving away from a stark no-deal Brexit, by dint of the signals against this from the President-elect Joe Biden. Therefore, moving forward, we project that this new direction will spearhead a recovery in world trade.
Through the COVID wage supplement, the government ensured the survival of these sectors, at a time when their overseas peers where closing down their businesses for good. What was done in Malta was not dissimilar to what happened in Germany and the UK, and so many other countries, the only difference being in that we have continued to sustain the most critically impacted businesses indefinitely.
However, ensuring the livelihood of our fellow countrymen is not solely down to Government’s policies and financial aid, but each and every one of us has a contribution to make. Therefore, in the blessed season of goodwill I urge you to support our economy and from the comfort of your home get that gift bought and delivered safely at the doorstep of your loved ones. Facetime and videocall them to show your appreciation.
Whilst doing so, do not forget those for whom this season highlights even more their suffering. Do find that extra bit to contribute to strinacrowdfunding.com, an initiative spearheaded by the Ministry, together with the Office of the President, a digital platform aimed at businesses and the public to use and make their donation for a good cause. This is a time to show even greater solidarity.
December marks the end of what has been a tumultuous year, but it could also serve as the dawn of a new beginning. This could be the month for our businesses to finalize long-shelved plans and for these to take flight in 2021. Plans and projects which need to set the tone for the future with a more digital and a greener outlook. Plans to enhance the skills of our employees and pave the way for their further upward mobility.
Most of all, have faith. 2021 is looming and as history has unfailingly shown, even after the worst storms, the sun will shine again. Finally, let us regard 2021 as an excellent opportunity to firmly determine where we want to go, in the best interest of our hardworking employees, talented businesses and thriving nation.