New Chamber of Commerce President Chris Vassallo Cesareo believes that matters concerning the importation of foreign workers to Malta need to be looked at more holistically, and that the issue boils down to a “national vision and direction.”

Vassallo Cesareo was speaking to The Malta Independent on Sunday in what was his first interview since being elected as the President of the Malta Chamber of Commerce two weeks ago.

Vassallo Cesareo says that the Chamber’s immediate work would continue on that of his predecessors and focus on dealing with five pillars – or “aches and pains” which businesses are feeling, as he also puts it.

The first concerns human resources, particularly on the “quality and content” of third country nationals.

He says that this matter shouldn’t be simply a matter of bringing in third country nationals in order to fill gaps but rather identifying which gaps need to be filled, and then tying that in very closely with the education system.

Much of the frustration is also directed at the fact that many such foreigners look at Malta as a stepping stone, rather than as a more permanent destination.

Asked though whether he feels that the limit for the number of foreign workers has been reached, Vassallo Cesareo says that the answer “boils down to a national vision and direction.”

“What do we want to stand for? Mass tourism?  A boutique destination?  Once we have a national vision then everything starts fitting into place, and the answer will come on its own,” he says.

He then raises an interesting question: “are we importing the correct manpower?”

He points out that the retention period for foreign workers is of roughly 18 months, after which they leave the country.

“Businesses are bringing them over, spending a lot of money – because it costs us to train these people – and they leave.  So we need to look at this much more holistically.  I think it’s wrong to look at it is a number,” he says.

“Should we just keep importing manpower?  If we had a specific goal and we needed them then, yes.  When there was a need for nurses, that was specific. But today it’s just ‘let’s bring them’ and we’re then so scared we will lose them after 18 months, we bring more.  That’s what is exhausting and what is misleading everybody, so I would take stock and come up with a vision,” he says. 

“If it’s contained and controlled, integration will work better.  The whole ecosystem would work so much better if we had that clarity,” he continues.

The Chamber is currently conducting a survey with its own members on this topic, while it is also recommending looking at legal frameworks such as in Ireland where the families of the workers are also being accepted in the country.

There are other procedural issues too: the struggle of businesses with the length of time it takes for work permits to be processed is well documented, for instance, and Vassallo Cesareo expressed his hope that they can “nail this” with Identity Malta and the Finance Ministry.

“Quite honestly we want to move onto looking at issues in more depth, rather than trying to bring a six-month period down to three months.  I don’t think we need to be discussing this at a Chamber-level,” he said.

‘All we are asking for is a level playing field’

The second pillar concerns the ease of doing business, and Vassallo Cesareo says that one of the first things which comes to mind is the government’s tendering process.

While due diligence is necessary, he questioned why it has to be done for every tender.

“In a layman’s world, if we had to just use a central database… we all have passports for example, and these are all linked.  The technology is out there, so why can’t we use something like it?,” he says.

He added that this would increase communication even within ministries, and would streamline things for companies which apply for tenders with different ministries.

As things stand, he lamented, the tendering process is “very bureaucratic” and as one which can be seriously costly unless one has a department which works specifically on them.

The third pillar concerns access to finance, with Vassallo Cesareo stating that the government needs to be “more creative” in this department.

“We are all trying to champion sustainability, for instance, so why shouldn't finance be pegged to that?” he queried.

He said that this pegging should certainly be the case to encourage green investments, new technology, and digitalisation which are all “big areas” going forward.

The fourth issue relates to the supply chain, Vassallo Cesareo says.  This, he says, was the top concern for 55% of CEOs in a recent survey carried out by the Chamber.

“Anything that we import already has an element of what we can call imported inflation. So whether we like it or not, we are already suffering from that imported inflation on whatever we are importing and putting on the market, or putting through our factories,” he explains.

He continues than an “honest businessman” would not use this to increase prices immediately, as ultimately the business community is part of the wider community like anyone else.

“What we have to realise is that, even though we are in the business community, we are consumers too. We go out there, we go to the restaurants, we go to hotels, we buy from retail outlets, we buy from manufacturers… so we wear both hats,” he says.

The final point is the government’s competition with the private sector.

Vassallo Cesareo points out that there are services in which “it is proven that the private sector is better at handling and at being more efficient” in, and that therefore the government should just leave it in their hands.

One of the entities which the Chamber is in constant discussion is the Malta Tourism Authority, which has taken to organising its own concerts and major events which end up being competition for private operators in the same sector.

It boils down to a matter of fairness in the Chamber’s views, particularly as the government’s budget is naturally far higher than that of any private operator.

“At the end of the day when you break these pillars down, all we're asking for is a level playing field and fair competition. I think that's the best way to sum it up. I don't think we have asked or ever asked for anything for our members which has not been something that is fair. Not one of us is saying listen, we want some advantages or anything like that… far, far from it,” he says.

Everybody needs to show responsibility and ‘honour’ their position

Building on this, the need for good governance has been a core emphasis by the Chamber in the past years.  Just last month, the Chamber was one of the bodies which had heavy criticism for how the government handled the scandal surrounding its MP Rosianne Cutajar and the revealing of her intimate relationship with businessman and now alleged Daphne Caruana Galizia murder mastermind Yorgen Fenech.

Asked whether, given recent events, he has concerns about the way in which certain things are handled by the government and the effect it may have on doing business in Malta, Vassallo Cesareo said that anybody in a particular position needs to “honour that position.”

“Take myself. Two weeks ago, I was Chris of Domestica. Today, I'm Chris with the Chamber of Commerce. I think that is the best way for one to look at it. Am I the same person? Physically, yes. But my responsibility is definitely not the same,” he says.

“I think everybody should carry that level of maturity to understand their role. You're voted in so people have trusted you; people have faith in you and your values, and you need to respect them,” he adds.

On whether more responsibility needs to be shouldered for shortcomings, Vassallo Cesareo says that this isn’t something which applies just to the government.

“I think we all need to address this, not just the government. Everybody needs to shoulder their area of responsibility. Whether it's a businessman who is not paying his taxes, whether it's a politician, whether it's an architect, I think we have to look at that, again, on a national level,” he says.

He mentions the construction industry as an example, noting that the Chamber had just had discussions with them and that while they are happy with the direction the sector is moving in, there is a need for responsibility.

“They need to show that responsibility. And it was very clear, it's not just the contractor, the developer, but the architect too and then it's going to be moving to those in the trades as well; the plasterer, the electrician, and the plumber. There is a matter of responsibility and accountability in everyone, which, in today's day and age, we all say should be obvious, you know, but it's not,” he says.

Another aspect of the good governance point circles back to procurement, and Vassallo Cesareo mentions a Chamber proposal from their most recent pre-budget document which stated that anybody who receives a government tender must be in line with the taxman.

“It's unfair competition for anybody who is evading tax – and we know that only approximately 30% of companies right now pay their taxes only – so how can I, or any of our members that are ethical and that have everything in line, compete with somebody who falls in the 70% of those who don’t pay their taxes,” he questioned.

Last September, the Chamber issued a document with proposals relating to good governance in Malta’s highest institution: Parliament.  This was compiled by expert David Spiteri Gingell and Vassallo Cesareo says that a further three reports with more good governance recommendations are in the pipeline.

Two of these are set for launch this coming June, while the final report is scheduled for next year.

That first report looked into things such as the wage structures of Parliament, its responsibilities, and the way things are documented – for instance, one point related to the creation of a public register which would document any official meetings which take place, including with their minutes.

Lobbying is another topic which Vassallo Cesareo brings up.

“We seem to have this… I don't know if it's a culture we can pin… thing that because I may criticise or I voice my opinion, it somehow means that I am attacking or I am knocking you down. We need a level of maturity,” he says.

He says that the Malta Chamber is an independent voice which represents some 75% of the business community, meaning that a lot of internal debate, including by engaging experts locally or from overseas if need be, is held before they say anything. 

“A lot of thinking would have been done. So when we come out and say something, we are saying it for the greater good. If we all remain cocooned in our own little environment and protect our own territory, then we can never champion this national identity of ours. It's always a losing battle,” he says.

Business leaders need to provide environment, mentorship to keep younger generations in Malta

Recent studies have shown that some 70% of the Maltese youth demographic would rather leave Malta to work abroad, than stay in the country – prompting concerns of an impending brain drain.

Vassallo Cesareo believes that it is a duty for him and others as a businessman to help correct things today for future generations, so that they can feel comfortable developing themselves in Malta.

“If you had to judge me on my success, this will definitely be a point I’d like to be judged as successful on: that any future generations coming forward would feel that they do want to stay in Malta, that they do want to learn, that they want to be mentored, to invest, and to remain and feel like they can grow in Malta,” he says.

Vassallo Cesareo is no stranger to this field: he chairs the JA Malta Foundation, a non-profit which champions entrepreneurship, work readiness and financial literacy for youths.  He became chairman two years ago and, following a restructuring, the organisation has some 3,000 students coming through its programme.

“I'm passionate about this because they saw scope, they were given time. That's all they needed: time and the correct mentoring,” he says.

“As a Chamber, we definitely see that it is our responsibility as current business leaders to make sure that we do leave the correct legacy and that we do nurture the correct legacy. So this all ties into the greater scope: not an ‘us and them’ mantra,” he continues.

“It is our responsibility as business leaders to make sure we give them the space and if need be mentorship to allow the future generations to realise that there are opportunities,” he says when asked what needs to be done to keep younger Maltese in the country.

“Once we get to do that I am convinced that the future generations – the 70% - would want to stay here, but they need to see us make a difference.  Results on what we are championing need to start happening.  Whether it is on digitalisation, in construction, in good governance – when they see results, then I believe that they will remain, because ultimately Malta is a nice place to live in, isn’t it?”