Updated 1130
Shipbuilding share transfer scrapped as MMH seeks concession changes
Plans to sell a 70% share of the Mediterranean Maritime Hub (MMH) to Virtu Holdings and LTV Developments have been scrapped after numerous delays and disagreements over concession terms. MMH, owned by Paul Abela of Abel Energy, holds a 65-year land concession granted by INDIS in 2016. The proposed sale, which was expected to conclude by the end of 2023, aimed to expand MMH’s service offerings beyond oil and gas. However, the necessary government approvals were not obtained. MMH plans to review its current concession to maximise its operations and ensure financial commitments are met, amid concerns about its financial stability. The decision affects MMH’s diversification efforts and potential capital restructuring.
HSBC Bank Malta reports record profits for 2024 interim results
HSBC Bank Malta reported record profits of €78.6m for the first half of 2024, an increase of €19.3m from the previous year. This growth was driven by higher net interest income, improved credit quality, and increased trading income. Despite higher operating costs due to investments in staff, technology, and new facilities, the bank’s financial performance remained strong. HSBC Malta reduced non-performing loans and maintained robust capital and liquidity ratios. The Board recommended a gross interim dividend of 10 cents per share, the highest in a decade. CEO Geoffrey Fichte highlighted the bank’s successful turn-around strategy and continued investment in Malta’s economic future.
More tourists and domestic arrivals, but decrease in revenue, Gozitan operators say
Despite a 21% rise in inbound tourist arrivals and a 7% increase in domestic arrivals in early 2024, Gozo’s tourism operators reported a revenue decline in the first half of the year compared to 2023, according to a survey by the Gozo Tourism Association. The survey found that 53% of operators experienced reduced income, with 88% also facing electricity outages that affected business. Although most operators did not change their prices, 93% saw higher operational costs. Challenges included increased competition and economic conditions. Additionally, 85% of respondents felt Gozo’s tourist offerings were not meeting expectations due to issues like excessive construction and poor infrastructure.
Morning Briefing
Scicluna ‘temporarily’ steps down from CBM position, gets to keep salary
Edward Scicluna has temporarily stepped down from his position as Central Bank governor by “mutual agreement,” following a compromise reached during Tuesday’s cabinet meeting.
In a brief statement, the cabinet acknowledged Scicluna’s request to European Central Bank governor Christine Lagarde to step aside pending the resolution of his court case related to hospitals. Deputy governor Alexander Demarco will now take over the role at the Central Bank of Malta, the cabinet announced. Meanwhile, Prime Minister Robert Abela confirmed that Scicluna will continue to receive his salary during this period, as he is only stepping away “temporarily.” (Maltatoday)
PM says foreigners in saturated industries must leave the country
Prime Minister Robert Abela stated that foreign workers who come to Malta for employment must leave the country if their labour is no longer required. Speaking to journalists outside Castille, the PM insisted that foreign workers from third countries must have legitimate approval from Jobsplus and Identita to work in the country. He added that if the job market shows signs of saturation, it means that unauthorized workers must leave the country. “We are not saying we will kill the sector of food couriers or that y-plates will be eliminated, as these are services that our country needs,” he said. “But what we are saying is that having excessive workers in those two sectors will create a situation where the oversupply is detrimental to the country’s infrastructure.” (Times of Malta)
Chamber calls on government to focus on abuse and transparency
The Malta Chamber said that the government needs to address abuse, enforce law and ensure transparency. In a statement, the chamber said it is acutely aware of the ongoing issues surrounding the employment of Third-Country Nationals (TCNs) in Malta. The business lobby group mphasized the necessity of employing TCNs only where there is a demonstrable need within the labour market, and similarly, the employment in jobs directly or indirectly associated with the government should be justified by genuine need. “Many key sectors in Malta, including healthcare, elderly care, tourism, manufacturing, tech and financial services rely heavily on migrant workers due to a significant shortage in the local workforce. This reliance underscores the importance of a strategic workforce plan that addresses these shortages, ensuring a balance between human resource needs and the country’s capacity to accommodate them sustainably”, the chamber said. (The Malta Independent)
