Malta Business Review Issue 10 by Adrian Friggieri

Issue 10 â&#x20AC;&#x201C; June 2015

special feature

Good Relationships, Unmeasurable Benefits An interview with Vanessa Scerri Worley, Director of Primei Fiduciary Ltd - p.34

feature Understanding Turbulence: The Key To Weather Prediction Exclusive with Prof. Sergej S. Zilitinkevich - p.58 talking point

The Superpower of China â&#x20AC;&#x201C; Where Size Matters Anatole Baldacchino on the Chinese economy and Western capitalist economies - p.64

Newspaper Post

cover story People, Culture, Clients Erskin Vella, Managing Director of Best Deal Properties on competitiveness, innovation and creativity p.06

Malta Business Review

maltaâ&#x20AC;&#x2122;s best entrepreneur of the year awards 2015

To be Maltaâ&#x20AC;&#x2122;s Best Entrepreneur one must be... 2

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8 12

creative

accessible

successful

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maltaâ&#x20AC;&#x2122;s best entrepreneur of the year awards 2015

Malta Business Review

Date: 10th July 2015 Venue: The Reef Club Deck, Westin Dragonara Resort

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innovative

passionate ew Commited onary www.maltabusinessreview.net

Newspaper Post

Issue 10 – June 2015

special feature

Good Relationships, Unmeasurable Benefits An interview with Vanessa Scerri Worley, Director of Primei Fiduciary Ltd - p.34

feature Understanding Turbulence: The Key To Weather Prediction Exclusive with Prof. Sergej S. Zilitinkevich - p.58 talking point

The Superpower of China – Where Size Matters Anatole Bladacchino writes about the Chinese economy and Western capitalist economies - p.64

cover story People, Culture, Clients Erskin Vella, Managing Director of Best Deal Properties on competitiveness, innovation and creativity p.06

MBR Publications Limited

PuBlisher MBR Publications Limited editor Martin Vella teChniCal advisor Marcelle D’Argy Smith sales direCtor Margaret Brincat sales exeCutive Charlotte Munro art & design Jessica Camilleri

Malta’s Best entrePreneur of the year awards 2015

index for Pages 2 & 3

Dr. Adrian Attard Trevisan ‘AAT Research’; 2 Roderick Psaila ‘Agri Bank’; Mario Gauci & Mario Gauci Jnr ‘Burmarrad Commercials’; 5 Bernard Mangion ‘Ben Estate’; 6 Easkine Vella & Chris Attard ‘Best Deal Properties’; 7 Sean Cassar ‘Design Hub’; 8 Charles Schiavone ‘DHL’; 9 Diane Izzo ‘Dizz Group’; 10 Christine Pace ‘Dorkins’; 11 Matthew Bezzina from E Cabs; 12 Yasmin Debono ‘Grassy Hopper’; 13 Alfred Munoz ‘Middlesea’; 14 Maurice Aquilina ‘M7 Alpha’; 15 Ritienne Zammit ‘Ritienne Zammit’; 16 Deborah Schembri ‘STM’; 17 Jason Potter, John Catania, Clive Vella & Ian Fenech Conti ‘The Other Guys’; 18 Paul McKenna ‘Tax Ways Group’; 19 Steve Mercieca ‘Quick Lets’; 20 Olga Finkel ‘WH Partners’ 1

Cover PhotograPhy Charles Calleja

3&4

advertising Call: 9940 6743 or 9926 0163; Email: margaret@mbrpublications.net or charlotte@mbrpublications.net ContriButors Anatole Baldacchino; Antoine Bonello; George Carol; David J. Dingli; Prof. Heino Falcke; Gwen Gomis; Fabien Kellaway; Roderick Mallia; Patrick J. O’Brien; Astrid Veld; Prof. Sergej S. Zilitinkevich

sPeCial thanks DOI; BPC; Corporate Identities; CSB; Deloitte; eie Institute of Education; Emma Diacono Ltd; MISCO; MCST; MHRA; Muscats Motors; The Other Guys; Valletta Fund Management

Print ProduCtion Printit offiCes 41B, Wayne, Triq il-Herba, Birkirkara, BKR 2322 telePhone +356 2149 7814

Cover story

PeoPle, Culture, Clients

We interview Erskin Vella, Managing Director of Best Deal Properties who defines the importance of competitiveness, innovation and creativity

foCus 12

Hans F Hansen is a one-man-brand. He is an explosion of new thinking. He is a philosopher, a guru, a politician; a radical feminist.

Being everything to every guest everywhere Jonathan xuereb (Managing director) of reliance Malta ltd describes the management and operations of his property firm

Quote of the Month “it takes nothing to join the crowd. it takes everything to stand alone.” - hans f. hansen

the differenCe in digital insight on the other guys, a dedicated team of four professional friends providing cutting edge digital experience

The InTersecTIon of scIence, Technology & r&I Part 1 An in-depth interview with Dr Jeffrey Pullicino orlando, chairman of McsT, who explains how McsT is an advocate for national science policy and r&I

Disclaimer All rights reserved. No part of this work covered by copyright may be reproduced or copied and reproduction in whole or part is strictly prohibited without written permission of the publisher. All content material available on this publication is duly protected by Maltese and International Law. No person, organisation, other publisher or online web content manager should rely, or on any way act upon any part of the contents of this publication, whether that information is sourced from the website, magazine or related product without first obtaining the publisher’s consent. The opinions expressed in the Malta Business Review are those of the authors or contributors, and are not necessarily those of the editor or publisher.

our gold Partners

CONTENTS talking Point

Print rules, nothing Beats a good read

sPeCial feature: woMen leaders good relationshiPs, unMeasuraBle Benefits an interview with vanessa scerri worley, director of Primei fiduciary ltd and a regulatory and Compliance Consultant within advocates Primei

entrePreneurial sPirit The inside story of noella Briffa, Managing Director of Marchese shoes

Quality, value and lifestyle An exclusive interview with Donna Benton, ceo of The entertainer

strategy, vision and direCtion diane izzo reveals to MBr the success behind her business acumen and fashion savviness that made a name for dizz group

feature

understanding turBulenCe: the key to weather PrediCtion

Professor Sergej S. Zilitinkevich discusses the way physics treats turbulence in the atmosphere and ocean

editorial “

Award winning journalist Patrick J O’Brien tackles the pros and cons of print vs online media

Malta Business Review

The suPerPower of chInA – where sIze Matters

Anatole Bladacchino analyses the similarities between the Chinese economy and that of the Western capitalist economies

hether men understand it or not, they are impelled by that power behind to become unselfish. That is the foundation of morality. It is the quintessence of all ethics, preached in any language, or any religion, or by any prophet in the world. ‘Be thou unselfish’, “Not ‘I’, but ‘Thou’” – that is the background of ethical codes.” I begin my June editorial with this quote from Swami Vivekananda. Today’s businesses are entrenched in a great conflict. The interests of the entrepreneurs and the interests of the public at large seem to be in constant turmoil. On one hand, entrepreneurs desire profit for themselves, and on the other, the general public does not care to be exploited by those whose sole motive is profit. This is a conflict because those who buy a business’s products or service tend to be the general public, and they have the ability to make or break a company’s profit margin. Today, a lot of employees are less interested in serving any sort of public good than making money. Most entrepreneurs involved in business, whether functioning as a SME business owner, employee, or chief executive officer of a large company, eventually face ethical or moral dilemmas in the workplace. Such problems are usually complex, for they force the person making the decision to weigh the benefits that various business decisions impart on individuals, with the negative repercussions that those same decisions usually have on other persons or organisations. Naturally, entrepreneurs find themselves at crossroads wherein the ethical road is clearly marked, but see at a glance that the other road looks far more inviting because of its promises of professional or financial progression. “Doing the wrong thing is to disregard the rights of others and inflict harm, or grief on them,” writes business executive William R. Holland in Industry Week. This month, as we launch Malta’s Best entrepreneur awards 2015, we close our chapter on the Special Feature on Women Leaders. The message we wish to convey is that business owners and managers lead by example. When a business owner treats employees, customers, and competitors in a fair and honest manner, one is far more likely to have an ethical work force of which one can be proud. “It is perfectly possible to make a decent living without compromising the integrity of the company or the individual,” writes business executive William R. Holland. “Quite apart from the issue of rightness and wrongness, the fact is that ethical behaviour in business serves the individual and the enterprise much better in the long run.” Our June issue is full of stories all about positive ethical conduct in business by leading women and finest entrepreneurs, who all are doing the right thing.

58 MARTIN VeLLA www.maltabusinessreview.net

Malta Business Review

Cover Story – real eState IntervIew of the Month

People, Culture, Clients by Astrid Veld

Erskine Vella & Christopher Attard, Managing Directors of Best Deal Properties

As in any industry, providing timely responses to customer inquiries is the hallmark of quality customer care. Best Deal Properties strategy is to always provide timely response, be innovative, creating new ideas and products. Erskine Vella, Managing Director of Best Deal Properties tells us about the importance of constantly striving for increased competitiveness, innovation and creativity in all of their projects.

MBR: Tell us about the creation of Best Deal Properties. What is your vision for the company? EV: Best Deal Properties was founded in 2012 by the amalgamation of an experienced developer, Christopher Attard, and myself, an estate agent with a background of fourteen years of experience in the real estate sector. Our vision for the company is to make it grow and maximise our market share by targeting more than one segment of the market. We want our brand to stand out from our competition by offering our customers an augmented product while keeping prices affordable. MBR: What makes Best Deal Properties stand out as a leading property developer’s brand? EV: So far Best Deal Properties is one of the few development companies in Malta which offers highly energy efficient homes. We build and equip our properties with energy efficient utilities that reduce future running costs. For us excellent customer service before and after the sale is done is imperative and we strive to be alongside our customers by offering our help with bank loans, notaries etc. MBR: What differentiating factors do Best Deal Properties offer? EV: Best Deal Properties offers clients highly finished properties at reasonable prices. We

introduced new concepts in the sector which makes our properties the best available re Energy Efficiency and still at a very competitive price. We try and give clients the best we can, irrespective from their budget. Our product is our advert. Best Deal Properties offers all of its properties in a finished state. We give our customers ample choice of finishing to choose from. All tiling, bathrooms, internal doors and even furniture packages can be chosen by the clients themselves so that each property is tailored-made according to the clients’ taste.

For us excellent customer service before and after the sale is done is imperative MBR: Can you comment on the state of the Malta’s present property development market? EV: Malta’s present property development market seems to be quite strong and positive. The recent government incentives regarding the first time buyers, proved to be a very intelligent move and resulted in a good number of property transactions all over the island. Government seems to take particular interest in the industry and property market

Cover Story – real eState IntervIew of the Month

should still be very stable and lucrative. In general the Maltese real estate market still considers home ownership as an investment and it also gives a sense of control or security. One of the main reasons why this sector has remained stronger than other European real estate markets, is that the Maltese population prefers to purchase a home rather than rent - a custom that’s been like this for generations. From the other side we are seeing an emerging trend where a lot of Maltese people are buying property as a rental investment. MBR: What is Best Deal Properties’ investment in technology and social media? EV: Nowadays the digital world plays a very important part for mostly all businesses and it’s often the first place where people turn for answers. It is another means of communication which facilitates the buying process. We believe that with a properly built user friendly website, clients can reach us all the time at their ease. We also encourage our customers to subscribe to our e-newsletter so to be informed about any new developments which we may have from time to time. From the other hand, Social media is a fast growing trend which everyone is talking about. Apart from our website we also have a Facebook page which we use to promote and establish our brand online and showcase our portfolio of properties. Most of the clients who bought a property and are on a promise of sale, find the facebook page very helpful as it keeps them informed about the latest stages of works happening on their properties. We use these tools to join in the conversations of our potential clients and promote active listings. MBR: Tell us about your focus on market research. EV: Most of our market research is done through continuous meetings and chats with real estate agents and with our clients themselves. We try to analyse the needs of our customers and then built a product which satisfies those needs. We believe that our company’s goals can only be achieved

through identification and satisfaction of the customers’ needs and wants. At the moment we are planning to carry out an in depth survey to obtain a better understanding of what people are after nowadays and if the changing lifestyle is affecting the way people buy property.

Malta Business Review

Highly finis

hed at client

s choice

We don’t measure our success with the money we earn, but with the satisfaction of our clients MBR: How do you attract top talent and what makes for successful property developer today? EV: In my opinion, nowadays, apart from offering a very good product, I think it’s imperative to give our clients a top notch service. We need to listen to our clients and tailor our developments to our buyers. For a first time buyer, buying his/her first dwelling is sometimes a very delicate and stressful decision, thus we as developers and experts in the industry must be aware of the difficulties which might arise in due course and be able to handle our clients with an appropriate attitude. Ultimately building a successful brand name and being a leader in the industry will automatically attract the interest of people.

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MBR: How do you focus your efforts in leading Best Deal Properties? EV: Best Deal Properties is led by Christopher Attard and myself and we do mostly all of our work. From promoting and selling our properties to strategy planning and directly liaising with our clients, Best Deal Properties is nowadays taking almost all of my time. Having multiple developments running at the same time is quite hectic and very time consuming, but this is not just my full time job but my passion and my dream. We don’t measure our success with the money we earn, but with the satisfaction of our clients. MBR

Highly ener gy efficient

projects

Best Deal Properties key priorities for the business growth: • • • •

Brand Building Market share maximization Excellent Customer Service Maintaining our Sustainable competitive advantage with our augmented products • Increasing our work force to keep the company running smoothly since the growth curve for our products is increasing www.maltabusinessreview.net

Malta Business Review

EnvironmEntal Footprint

A Focus on Character and Customers by Fabien Kellaway

Mario Muscat, Managing Director Ozosystem Limited tells MBR that his aim is to further the Company’s role as industry leaders by offering their clients the best possible service and standards that they are already accustomed to receiving from Ozosystem Limited. MBR: How was it to re-brand the company yet maintain the same methodology? MM: The foundations for our brand were planted in the early days back in 1996. Our mission statement has always been the same – no job is too big or too small. We always strive to offer a consistent, precise service with attention to detail. We truly believe that the client deserves the best quality service with the highest possible standards. This was our motto then and it is now, and will always remain so. The basis of the re-branding was solely on what our clients wanted, we listened, we learned, we corrected and adopted our policy based on the feedback we received. MBR: What have been the company’s biggest achievements/successes to date so far? MM: Opening our own Cleaning and Services Academy was our dream and a vision that we were working towards for many years. It was dream that has exceeded all of our expectations. We have engaged the very best professional instructors to run the Academy. Our Academy is in use on a daily basis training our employees, not only to ensure that standards are maintained but also to offer our employees a stepping stone to further their careers by offering them Supervisory Courses and Team Leadership Skills workshops. To complement all this we are very proud that our company was the first cleaning company in malta to obtain the ISO 9001:2008 for the high quality standards that we offer to our clients. It’s not all about money, it is all about job satisfaction, whether by email or telephone, the confirmation from a client showing his or hers appreciation and gratitude for a job well done is without a doubt the biggest compliment attributed all to my dedicated Management and Employees. MBR: What marketing/promotional tools do you use to grow your business? MM: Our clients are our largest marketing tool, the power of referrals and word of mouth is the best form of advertising for any company. We can honestly say that our business expanded to what it is today 08

because our clients referred us to their clients, friends and family. We do however also use other forms of media such as Radio, TV and social media. MBR: What differentiates Ozosystem Ltd from the competition? MM: We believe in continuous training for all our personnel, for us it is the most important part of our customer satisfaction guarantee and shows to our staff that we believe in our services and we believe in them. Investing in our staff is the key to success, in fact before any of our employees are deployed in a position they must undergo a training program in Customer Care, Personal Grooming, Health & Safety and a practical training module according to their line of work, whether it be Housekeeping or Food & beverage.

Our clients are our largest marketing tool, the power of referrals and word of mouth is the best form of advertising for any company Besides our constant training our company is blessed to have a dedicated team led by our CEO Mr. Fabio Muscat, Operational Managers, Customer Care, IT & Marketing Manager, Field Managers, Supervisors and a solid administration team to run the company on a daily basis.

MBR: What does the future hold for Ozosystem Ltd? MM: Within the immediate future we will be attempting to expand in North Africa and the Middle East again. Some years ago we started operations in Libya but because of the turmoil within the country we were forced to close down operations. However, I am confident that our time will come again and we will be even more successful than before. Our clients deserve only the best in service and standards. We will continue to strive towards our goal, stay one step ahead of the rest and continue to be the best in the industry. MBR All Rights Reserved | Copyright 2015

EDITOR’S NOTE Mr. Mario Muscat, Founder & Managing Director, Ozosystem Ltd, was born and raised in the Capital City of Valletta, he is the founder and Managing Director of Ozosystem Ltd. Mario always believed he would be Successful in making Ozosystem a household name within the cleaning and hospitality industry and that is just what he has achieved. The Company was founded in 1996 and was then based in a small room in his family home. Ozosystem has since grown into Malta’s leading cleaning services company, offering a varied range of services across many industry sectors. Mario had to overcome many obstacles in order to succeed, however but with his determination, dedication and belief in the services he offered, Ozosystem is today ISO 9001 certified and also has its own training Academy, the first in Malta.

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Malta Business Review

Architecture & Design

Archi+ Architects Studio A Sustainable Path For Growth One fundamental issue that concerns small to medium enterprises is growth and the sustainability of such. A significant number of small businesses are set up by individuals who are experts in the subject matter or are able to identify an opportunity and seek to make the best of it.

Most of the time, these individuals are not specialised in the business sector and therefore it can be the case that with the passage of time, customer traction is subdued and incremental strategies are not implemented. The three founding partners at Archi+ Architects Studio realised from the outset that, in order for the set up to be a success, it needed to pursue a fundamentally different model of operation from the traditional architectural practice. In fact, the three partners all graduated in different areas of the same construction industry. This encapsulated a comprehensive package that sought to bring together a number of service providers within one entity in order to be able to provide solutions and proposals for the many different stages that have now become an integral part of said industry. An example of this is the growing attention being given to the design of interior spaces to complement the clientâ&#x20AC;&#x2122;s lifestyles. Further to this, many of the clients who are looking to build their first homes do not have the time to monitor the different trades and prefer to

have a professional that can coordinate and supervise the works in their totality. With the above in mind the three partners sought to employ a number of individuals to further strengthen the ability to provide for a holistic solution. This ensures that all the levels involved in designing and building are given due attention individually, and as part of the project at hand. This conglomeration of different ideas is deemed to be a crucial step that requires broad consultation amidst all employees and partners. It is with such an array of specialised opinions that we at Archi+ Architects Studio are able to present a carefully studied proposal. After five years of operation, the firm has consolidated a set-up, which is able to take on large-scale projects and execute them in their entirety. Projects have consistently been driven by the need to achieve the highest standards possible from conception right through to completion. Throughout this time the founding partners have realised that the strength of the firm comes from the sum of its parts. In view of this a strategy is currently being implemented

whereby any member of the team can choose to be a part owner of various initiatives, which are currently in the pipeline. This will give each member of the team a sense of ownership and empowerment that will in turn further motivate the individual to pursue the best path for the company itself. An associate package is also being presented to each of the members, which choose to funnel work towards the company. In conclusion, it has become evident that the success being currently enjoyed is attributed to the individuals that form the company. The path to sustainable growth for the next years lies in the empowerment of the team: making sure that their interests are parallel to those of the company, making their path to advancement clear and also allowing each to thrive and excel in doing what they are good at. The sum of the individual specialized contributions allows for a complete, studied and successful whole. MBR

FOUNDERS ARE JUST PEOPLE WHO FOUND SOMETHING THEY LOVE. Most successful business people are driven by a passion. At HSBC, we believe in supporting that passion and helping it grow. That’s why we offer fast service and award-winning online banking to our business customers, so they can focus on the thing they love most. To find out how we could help your business, call 2380 8000 or visit www.business.hsbc.com.mt

IT’S NEVER JUST BUSINESS

Approved and issued by HSBC Bank Malta plc 116, Archbishop Street, Valletta VLT1444. Regulated by the Malta Financial Services Authority.

Malta Business Review

ICT

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Malta Business Review

/> DESIGN </> SOFTWARE </> SOCIAL

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EDITORâ&#x20AC;&#x2122;S NOTE

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visit us at www.whytheotherguys.com or call us on (+356) 27500416 and letâ&#x20AC;&#x2122;s talk. www.maltabusinessreview.net

Malta Business Review

insurance

MiddleseaMapfre To Buy Allcare Insurance Business, All Efforts Being Made To Safeguard Jobs by Neil Camilleri

Allcare Insurance Ltd’s business operations are set to be acquired by Middlesea-Mapfre but the company is doing all it can to ensure that none of its employees become redundant, company chairman Eric Schembri told The Malta Independent yesterday evening.

This paper contacted Mr Schembri after sources claimed that the company was being “bought out by Mapfre for around €1 million and that some 45 employees would be made redundant.” Mr Schembri denied this was a take-over, insisting that Middlesea-Mapfre was only buying Allcare Insurance Ltd’s business. Negotiations are ongoing, he said. Mr Schembri also insisted that he was working to avoid redundancies, and this could be achieved by absorbing the affected employees into the group’s other companies, which include AIB Ltd and Crystal Finance. He could not say, since negotiations have not been concluded, how many employees will be transferred to Middlesea-Mapfre but said the aim was

for all current employees to either retain their job or move on to the new company. Asked to comment about the €1 million figure, Mr Schembri said the sum was still being negotiated, but insisted that €1 million was “too low.” He also denied rumours that the development came about as a result of the Tumas Group withdrawing its shareholding. Tumas owns 25% of Allcare Insurance Ltd. The decision to sell the company’s business was related to personal health reasons, Mr Schembri said. Mr Schembri said clients will not be affected as Allcare Insurance Ltd’s business operations will be smoothly transferred to Middlesea-Mapfre, once the negotiations are concluded. Noting that everything

is being done “under the auspices of the regulator,” the company chairman said those who are insured with the company or have pending claims will not be affected. “The usual service will still be offered as before, from the same places.” MiddleseaMapfre will be running Allcare Insurance Ltd’s head office. When contacted by this paper, former director Alfred Mifsud said he no longer had anything to do with the company. “I resigned from Allcare Insurance Ltd even before my appointment as Deputy Governor of the Central Bank,” he said. Mr Mifsud started in his new role at the CMB earlier this month. MBR Courtesy: The Malta Independent

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transport & logistics

Malta Business Review

Express Logigroup International Freight Service

ithin today’s booming marketplace, companies must be adaptable and specialised. As a logistics company based in Malta, we at Express Logigroup use innovative strategies to achieve specific goals and this is why we are unrivalled and unparalleled in our international services. Each of our services is designed independently, fine-tuned to perfection and presented to the customer to meet their individual demands, guaranteeing efficiency and strengthening our legacy amongst customers and companies alike. Even our very name, Express Logigroup, was developed through a dynamic process. Express Logigroup offers custom-made solutions even to most remote locations and our coordinated methods ensure that your logistical needs are met professionally. We have dedicated our time and listened to our customers’ needs to create innovative and practical service pillars which altogether encompass a 360 degree service offering. Through integrated logistics solutions

and innovative outsourcing concepts we relief our customers of peripheral tasks and enable them to concentrate on their core business. The customer benefit – cost savings and improved quality – is always in the foreground of our company. We, therefore, continuously monitor and optimize procedures and processes and thus permanently improve the efficiency of our services. Express Logigroup co-operates throughout Europe with extremely efficient and privately operated companies, that like us, act independently of large corporations and which are flexible and much more customer centric. Service-oriented company philosophies and highly efficient procedures place the customer at the center of our attention. In addition to our regular part and full loads services, Express Logigroup offers courier, trade fair logistics, professional packing, home to home removal services and professional logistical consultancy service. MBR For more information please visit expresslogigroup.com

We don’t just “say” we have quality control. In a global economy that changes by the minute, you need to be ready to respond to new customer demands, at any time, at any place in the world. Today we’re moving from fresh produce to zero hour pharmaceutical products in climate controlled environments to mass market distribution. We’re in the business of managing time.

Express Logigroup Global Freight Forwarding: We deliver every time.

+356 21 221 999 expresslogigroup.com road sea air

Malta Business Review

transport & logistics

The Cold Chain Industry…. A Growing Market

he cold chain industry is a growing market, especially when it comes to pharmaceutical products that are being transported across the globe via air, ocean or road. The continuous monitoring of these valuable and delicate products in cold chain handling is key to success. Value added services provide reliability and protection in a supply chain, which requires flawless management processes, continuous preventative measures and improvement to support quality controls. Risk management plays a major role in the transportation of pharmaceutical products especially due to the introduction of more stringent GDP regulation. GMC Transport has invested in a temperature control system which monitors the goods and ensures that they are constantly kept at the right temperatures and are within the valid temperature range. Alongside foodstuffs and vegetation, we specialise in the transportation of pharmaceutical products and guarantee that the product quality is maintained through sophisticated systems integrated in our own fleet of temperature-controlled trailers designed to carry temperature sensitive goods. We maintain very high standards based on Good Distribution Practices and follow stringent quality norms throughout the transportation process. Developing innovative solutions and providing continuous staff training is imperative to keep in line with such quality standards. The GMC team undergoes regular training in line with ISO and GDP requirements focusing mainly on handling of pharmaceutical goods. All GMC drivers have just been given an intensive two day refresher course in Genoa. The workshop mainly focused on the principles of GDP and offered participants the opportunity to share and discuss their experiences relevant to our commitment to

quality. Employees play the key role in a successful supply chain. Training is one of the important tools of human resources to increase the employees’ competitiveness and effectiveness. It is often seen as a means of coping with changes fostered by market requirements, process development and organisation structuring. Human resources are the backbone of an organisation and GMC takes it very seriously, thereby investing part of its capital for the development of employees’ performance in order to achieve the firm’s strategic goals, mission, and effectiveness. Good Distribution Practice is at the core of any pharmaceutical logistics solution. We provide an optimal sea, air and road solution backed by the best cost: quality ratio for the industry. Not only do we tailor our services to specific requirements, but we also practice cost analysis procedures to highlight potential process improvements throughout the transportation chain. We understand the challenges the industry faces and we strive to relentlessly keep ahead of the game. MBR

for all your logistical needs to and from the maltese islands Address 113, GMC TRANSPORT, Simpson Street, Marsa, MRS 1607, Malta Phone 00356 2559 7000

Email info@gmc.com.mt

Web www.gmc.com.mt

Services We Offer… • Trailer Operator • GPS Info System • International Freight Forwarding • Customs Clearing Agents • Warehousing Storage & Packaging • Domestic Haulage • Airfreight & Container

Malta Business Review

ProPerty ManageMent

Being Everything To Every Guest Everywhere by G C Carol

Few companies believe that they can be everything to everyone, but that’s exactly what Reliance Malta Ltd is doing; listening to its current and could-be customers for which services and experience to build upon. MBR Interviews Jonathan Xuereb (Managing Director) of Reliance Malta Ltd, the property management firm specialising in the management and operations of a property, from the individual property owner to a group of owners within a condominium.

COMPANY PROFILE With over 15 years of experience in the Property Management field, Reliance Malta Ltd strives to become Malta’s leading company to provide professional Property Management services to property owners and investors in Malta and Gozo and to provide other ancillary services related to the property. MBR: How broad is your service offering? MBR: How many years have you been involved in the property management sector? JX: I have been doing property management on a professional level for 12 years. Until four years ago, I was a joint Director in another company also offering property management. In those 8 years, I gained the knowledge, experience and know-how of the industry, managing large-scale and high-end properties and condominiums. Reliance Malta Ltd was set up in January 2012.

MBR: Would you talk about the creation of the company and how it has evolved to where it is today? JX: Reliance Malta Ltd was set up with the basic principles of having a simplified, straightforward and transparent ‘modus operandi’. Over and above all, being closer to the customer is the more important aspect of our operations. Over the last four years, Reliance has become and remains trustworthy, reliable and provides professionalism to the industry and its clients. Over the years, our customers came to trust our decisions without debate, as over the years our decisions have proved correct throughout.

MBR: Who is the Reliance Malta Ltd client? JX: Our customers are principally those that require a reliable entity to care for their property. The Property could be their home, their investment property or even the common parts of the property they share with other owners, within a condominium. We provide these services to locals as well as foreigners owning Property in Malta & Gozo. Owners of the individual properties would either opt to keep their property vacant and have somebody inspect their property regularly and carry out preventive or remedial repairs when necessary, or they might want to let the property out for rental income and have a reliable company carry out all the management of the property and liaising between landlord and tenants, or else the owners of the home would require a company to assist in any service required within their homes thus acting as a referral agent and liaison. 18

JX: Our services range from Property Management of the individual properties, condominium management ie. handling all services and operations of the common parts within a condominium, from Cleaning of the common parts, to the maintenance of the lifts, collection of maintenance contributions from each owner and carrying out any repairs necessary. We also offer other ancillary services for property owners ranging from mail management to bill payment services as well as a vast range of other property related services such as janitorial & cleaning services, gardening, pool services and maintenance services. We also provide assistance in boat and car care.

MBR: How important is it to teach young brokers that while technology is helpful, this is a relationship business? JX: Technological advances over the years have provided the industry with so much assistance to make our services quicker and more reliable. Internet, emails and smartphones are nowadays taken for granted but simply sending an email to our customers on a regular basis and keeping them abreast of what is happening within their properties is always welcomed by our customers. Today, many people have internet in their homes or on their smartphones and thus receiving an email within minutes makes lives so much easier. Having said this, we do have elder clients who are not tech savvy and we therefore keep them up to date with a telephone call and back up our calls with a letter for their perusal. However, it is important to differentiate technology with the relationship of our clients. They are trusting us with their homes and their investments, and thus trusting the relationship is of paramount importance. Technology changes every day, the relationship is either a strong one or a broken one.

MBR: Are there key traits that identify a Reliance property customer? JX: The main key trait of our customers is primarily one that wants to care for their property and their investment from day one to make sure that their property is well kept, well maintained and ultimately accentuating the value of their Property, thus securing a greater resale value on their property in the eventuality.

ProPerty ManageMent

Malta Business Review

MBR: What are the key policy issues you are facing today and where does Reliance stand in dealing with them? JX: A key policy issue being faced is of prioritizing issues being dealt with. Every situation faced on a daily basis is categorized with either a high Priority A, medium B or Low C accordingly. The timely manner in which these situations are handle are crucial and could lead to devastating repercussions.

MBR: How much of a focus is there on things like energy-efficiency and LEED certification? JX: In my opinion, not enough. Leadership in Energy and Environmental Design Certification is definitely the way forward. Each property, and in my opinion, especially a condominium should have a LEED plaque on the building as a mark of quality and achievement in Green Building. A LEED certification means healthier environments by encouraging energy and resourceefficient buildings and savings from increased building value, higher lease rates and more importantly decreased utility costs. So often I notice that the common areas within a condominium barely have a window for fresh air or for natural light to enter the stairways and foyers. This is the simplest way of energy efficiency. There is no energy consumed when having natural light.

MBR: Is market research an area where you can differentiate? JX: Definitely. Knowledge of the market and of the changes and advances in the industry would differentiate one company from another. Many companies in this industry focus on the day-to-day operations of the company but fail to acquaint themselves with the new ideas and concepts and ultimately failing to pass on this knowledge to their customers.

MBR: What challenges remain for the property and real estate industry? JX: Design vs. practicality. In todayâ&#x20AC;&#x2122;s age, we still focus on the design of a building but lack practicality. So much input is placed on the design but when owners live in the Property one would realize that not enough time was put in understanding the effects of practicality. The authorities do not put enough pressure on the developer and the architects to design practical urban buildings. Another challenge we face is constantly teaching owners how to live harmoniously with their neighbours in a condominium. Some owners fail to realize that they have many more neighbours when living in a condominium than when living in a town house. MBR All Rights Reserved | Copyright 2015

EDITORâ&#x20AC;&#x2122;S NOTE Jonathan Xuereb is the Director of Reliance Malta Ltd. His professional career in Property & Condominium Management began when he was only 20 years old and set up this business to compliment the property development industry, as an aftersales service following the sale of a property. Prior to setting up Reliance Malta Ltd, Jonathan was a joint Director in another property management company and was in charge of the day to day operations of a large high-end condominium in Tigne. Reliance Malta Ltd. Tel. 21347359; email: info@reliancemalta.com; www. reliancemalta.com

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Malta Business Review

EU PROJECTS

When Prof. Heino Falcke obtained an ERC grant to study and identify the sources of ultra-high energy cosmic rays, back in 2008, he could not imagine that his research would provide an important clue to better understand lightning and thunderclouds much closer to us. His team indeed realized that cosmic rays, originating in outer space and striking the Earth from all directions, can provide a near instantaneous ‘picture’ of the electric fields in clouds. The unexpected finding, to be published this week in Physical Review Letters, is the result of a fruitful collaboration between astronomers, particle physicists and geophysicists. The measurements were performed with the LOFAR radio telescope, located in the Netherlands, and partly funded by the ERC. Cosmic rays are high-energy charged particles. High in the atmosphere, when they strike the atmospheric molecules they create a ‘shower’ of elementary particles that can reach the Earth’s surface. These showers can be measured from the radio emission that is generated when their constituent particles are deflected by the magnetic field of the Earth. The radio emission also gives information about the nature and origin of the particles, and that is exactly what Prof. Falcke focused on between 2009 and 2013 in his ERC funded project “From Black Holes to Ultra-High Energy Cosmic Rays: Exploring the Extremes of the Universe with Low-Frequency Radio Interferometry” (LOFAR AUGER). Modelling “We actually used to put aside LOFAR measurements taken during thunderstorms. They were too messy”, says astronomer Pim Schellart, who completed his PhD this year and is supervised by Prof. Heino Falcke. That changed when the same data was examined in the context of a collaboration with astrophysicist Gia Trinh, Prof. Olaf Scholten, from Groningen University and lightning expert Ute Ebert, from the Centrum Wiskunde & Informatica in Amsterdam. “We modelled how the electric field in thunderstorms can explain the different measurements. This worked very well. The variations of the radio emission gave us a lot of information about the electric fields in thunderstorms. We could even determine the strength of the electric field at a certain height in the cloud. This field can be as strong as 50 kV/m and it can translate into a voltage of hundreds of millions of volts over a distance of multiple kilometres: a thundercloud contains enormous amounts of energy,” says Dr Schellart. dangerous charge Lightning is a highly unpredictable natural phenomenon that inflicts damage to infrastructure and claims victims around the world. This new method to measure electric fields in thunderclouds will contribute to a better

understanding and ultimately better predictions of lightning activity. Current measurement methods from planes, balloons or little rockets are dangerous and too localized. Most importantly the presence of the measurement equipment influences the measurements. Cosmic rays probe the thunderclouds from top to bottom. Moving at almost the speed of light they provide a near instantaneous ‘picture’ of the electric fields in the cloud. Moreover, they are created by nature and are freely available. Building on loFar auger advances “The ERC grant has contributed to bring LOFAR to a fully functioning radio telescope that is currently surveying the sky,” says Prof. Falcke. During the course of the project, the team also developed a method to decode the radio signal emitted by cosmic rays in the Earth atmosphere. While their origin has not been solved yet, the team has made a significant step forward in understanding the nature of cosmic rays and how to measure them. “This method allowed us to collect and give meaning to the data that we are presenting in this publication. This is an exemplary form of interdisciplinary collaboration between astronomers, particle physicists and geophysicists”, says Prof. Falcke. “We now hope to develop the model further to ultimately answer the question: how is lightning initiated within thunderclouds?” MBR scientiFic puBlication Probing atmospheric electric fields in thunderstorms through radio emission from cosmic-ray induced air showers P. Schellart et al. - Physical Review Letters, 24 April 2015

project: PrinciPal investigator: Prof. Heino Falcke Host institution: Radboud University, The Netherlands Project: From Black Holes to Ultra-High Energy Cosmic Rays: Exploring the Extremes of the Universe with Low-Frequency Radio Interferometry (LOFAR AUGER) erc call: Advanced grant 2008 Project duration: Five years erc funding: € 3.4 million

Written in collaboration with Radboud University. | Credits: European Research Council

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Malta Business Review

science & Technology

The Intersection of Science, Technology and R&I - Part 1 by Martin Vella

As the 21st century begins to unfold, it is clear that we live in a society in which science plays an increasingly significant role. Malta Council for Science and Technology chairman Jeffrey Pullicino Orlando, tells us why MCST seeks to be the preeminent regional consortium for science- and technology-related education and policy and a prominent voice nationally. In an extensive two part interview, Mr Pullicino Orlando explains how MCST is an advocate for national science policy and among the leading source of information on policy issues for R&I and of science and technology.

MBR: What can you tell us about the MCST and the significance of your role within MCST for the past five years?

that requires feedback in any sector related to R&I will turn to us for guidance and feedback for policy matters.

JPO: I have been the Chairman of the Malta Council for Science and Technology since March 2010. That will make this my fifth year. I have been the Executive Chairman for the past two years. We have gone from strength to strength, both in terms of our scope as well as well in terms of our staff. We have got a number of target areas that we focus on. Broadly speaking, we are the national reference point when it comes to anything to do with the R&I policy matters. Any entity

MBR: Is this also the case with regards to EU funding?

JPO: Yes, definitely, especially EU funding related to R&I. We have been the national contact point for EU Framework Programme (FP) funding since I have been chairman of MCST, which has involved the FP7 program, that lasted till 2013 and is now called Horizon2020. Billions of Euros are available for funding for our sector. I have to say that we have had our notable successes. Basically, for FP-7 funding, Malta was

ranked the sixth most successful country for getting projects funded per capita, in the EU. This is a notable achievement for a country which is relatively small and which has a developing R and I scene MBR: How many staff are you? JPO: Presently we are 50. We will be expanding to something in the region of 80 to 85 in the coming months in preparation for the opening of our National Interactive Science Centre, ESPLORA. The soft opening of ESPLORA should be taking place sometime around September. We are aiming at a full-scale opening in December, 2015.

science & Technology

Apart from policy and FP funding, we also focus on our R&I Progamme, Fusion. We administer funding which is given to the R&I sector by the Central Government through Fusion . There have been a number of notable projects which have been funded by this fund. I believe we funded some 75 projects over the past years to the tune of something in the region of 10 million euros. There have also been a number of success stories. The R&I funding is aimed at funding projects which are very close to the commercialisation stage. MBR: Now, coming to the R&I strategic plan, could you highlight the main progress that has been achieved, especially vis-à-vis business orientation, since you took over? JPO: The R&I strategic plan was focused on the years 2007 to 2010. It has now been superseded, so I think it is more relevant to speak about the National R&I strategy 2020, which was launched last year, in June . It has a number of strategic areas that we have suggested should be focused upon. A notable recent development which has been encouraged by the EU Commission is that we should focus on what is referred to as smart, flexible specialisation. MBR: What does it mean, exactly? JPO: Basically what is being encouraged is that, every country, every region should, rather than indiscriminately disburse R and I funding, focus on its existing strengths. In fact, our strategic plan has identified a number of areas that we should focus on. Naturally, this has not been solely up to MCST to determine. We have turned towards the business community, industry, our academic partners, MCAST and the University of Malta, as well as civil society, in order to narrow the sectors we feel should be focused on to seven. These sectors are ICT, Value added manufacturing, health, with a special focus of healthy living and active aging , resource efficient buildings, aquaculture, aviation and aerospace, and maritime. MBR: What about health research and the positive effects it has on the community as a whole? JPO: The health sector in Malta has always been very strong. Even historically, we can boast about having the oldest medical school in the Commonwealth, outside of England, which was set up by the Knights Hospitallers of St. John in the 1700s. We had a very advanced health system in the time of the knights, and the health sector in Malta has maintained its strength.

Maltese health sector professionals are very highly regarded and sought after, even abroad, and this government is focusing a lot on the health sector. We, at MCST, have been focusing on this particular sector because we have been involved in a very notable consortium. In fact, I would rank this as being one of the most positive experiences I have been through in the past five years. We are involved as one of the leading partners in a consortium which is composed of leading players, such as the Weizmann institute, the World Health Organisation, the University of Harvard, MIT, The University of Zurich, The University of Gottingen, Karolinska Institute and Novartis. The Consortium incorporates 90% of the Global Vaccines industry at this particular point in time and something in the region of 50% of all the Pharmaceutical companies In through this consortium, we have the opportunity for two important EU funded initiatives. We are very confident that we will get funding from the EU, definitely from one source, and possibly from another, which could run into the billions.

We are involved as one of the leadipartners in a consortium which is composed of leading players, such as the Weizmann institute, the World Health Organisation, the University of Harvard, MIT, The University of Zurich, The University of Gottingen, Karolinska Institute and Novartis All this funding, all this energy, all this expertise will all be focused on this particular sector, which is ‘Healthy Living and Active Aging’. with MCST in the driver’s seat we are in a unique position to attract the right kind of attention towards our island in this sector and give the life-sciences park a boost. We work very closely with Malta Enterprise. In fact, the person who is running the life-sciences park project, engineer Joe Sammut, is a former team member. He used to be the director in charge of our R&I unit. MBR: MCST have launched various projects; Research and Innovation fund in 2012, the Health research strategy, the Launch of the Manufacturing research Strategy, and Information LABS4MEMS

Malta Business Review

project, all under your funding. However, most of the people out there don’t know a lot of information about this. What message do you have for these people? Also, when you look back, what are the implications of structuring these projects, putting them into place and achieving an objecting? JPO: I am pleased to say that, both the previous administration as well as the present one appreciated the fact that the R&I sector needed a significant boost, and this is why there has been substantial focus on this particular sector. A focus which has resulted in increased support for MCST, as well. I don’t blame you for saying that perhaps our visibility is not as high as one would expect for a government agency, but one has to appreciate that this is a really specialised sector. unfortunately, it is still the case that locally a substantial part of the population regards anything that is related to R&I, anything that is related to Science, as something which might be beyond their reach. Thus, there is a tendency to block off once anything that is related to science is spoken about. We find this even at a high level, and we are going to make a concerted effort at addressing this issue, even by means of Esplora, our National Interactive Science sector. The raison d’etre of Esplora is actually breaking that barrier. MBR All Rights Reserved | Copyright 2015

EDITOR’S NOTE

Jeffrey Pullicino Orlando was educated at De La Salle College and the University of Malta. He graduated as a dental surgeon in 1988. He was elected as a local councillor in the first Zebbug local council elections in 1992. He was elected in four successive elections in 1996, 1998, 2003 and 2008. He held the posts of shadow Minister for Telecommunications and was Head of the Maltese delegation to the Parliamentary Assembly of the Council of Europe for a number of years. He also held the post of Vice President of the Assembly. He was appointed Chairman of the Malta Council for Science and Technology in 2010 and Executive Chairman of the Council in 2013.

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Malta Business Review

Malta And France Averse To EU Treaty Change

alta and France agree that whilst every effort should be made to keep the United Kingdom in the European Union, any agreement reached with the British Government on its proposals for reform of the Union should be accommodated within the existing Treaty. Malta and France reaffirmed their reluctance to contemplate further Treaty change at this stage, when the Minister of State for European Affairs of France Harlem Désir paid a call on the Deputy Prime Minister Louis Grech this week. The Deputy Prime Minister said Malta looked favourably upon certain demands being made by the UK Government and said it was important that the member states show flexibility, but warned that further Treaty change would open a Pandora’s Box as different member states could make new demands. Minister Désir agreed that this would usher in a long period of uncertainty during the many years the Union could spend discussing such demands, which was unwelcome. He added that the functions and institutions could improve and be made more citizen-centred, but warned that certain principles like freedom of movement could not be put in question. Minister Désir shared Louis Grech’s concerns about the situation in Libya and the grave risks that the Union could run if the country did not return to stability. He too believed that the Libyan situation and irregular migration flows were closely inter-linked, but he also highlighted the aspects of terrorism and human trafficking. Mr Grech said that now that the EU had started listening to what Malta had long been saying, it was important that Libya, migration, security threats and trafficking gangs remain at the top of the EU’s policy agenda. The Deputy Prime Minister said any longlasting solution should include a kind of Marshall Plan for the underdeveloped or developing countries at the source of irregular migration in sub-Saharan Africa, a strong fight against smuggling and criminal networks, and a mechanism whereby there was collective responsibility by the member states to accommodate irregular migrants according to size of the country, population and GDP. 24

Minister of State for European Affairs of France Harlem Désir with the Deputy Prime Minister Louis Grech and PS for EU funds and 2017 Presidency

Harlem Désir congratulated Malta on its economic performance. He added that the French Government was also making various structural reforms, and was now happy to see a resumption of economic growth that was necessary to create thousands of jobs per year. The Deputy Prime Minister replied that Malta’s good economic performance combined a marked improvement in public finances with healthy economic growth. This had been achieved through a mix of tax cuts, fiscal and labour incentives, and reduced utility charges on consumers and businesses. Lower-income and middle-income families would feature even more prominently in the next Budget.

Further Treaty change would open a Pandora’s Box as different member states could make new demands Mr Grech referred to discussions in the EU about pension reform. He said that the Maltese Government believed that the Maltese pension system could remain sustainable in the long term without the drastic changes being contemplated elsewhere. The Government was working on the way forward on this issue, building on the existing pension system, including the recent changes in the Budget, and would be submitting its proposals to the European Commission. Parliamentary Secretary Ian Borg, who was present for the meeting, briefed Minister

Désir on Malta’s preparations for the EU Presidency in 2017. He said that Malta and the other members of the Trio, Netherlands and Slovakia, agreed that the agenda for their Presidency should be more focused, rather than an unrealistically broad one. Though the agenda was still a work-inprogress, there would certainly be an emphasis on migration, the Energy Union and maritime affairs. He welcomed France’s offer to cooperate with Malta, particularly with the secondment of diplomats. Other matter discussed by Mr Grech and Minister Désir included the further strengthening of the Single Market and giving it a social dimension, the Digital Agenda that could spur economic growth, and a renewed emphasis on measures being tailored to the specificities of particular member states. In this context, Mr Grech said that tax harmonisation was not welcomed by Malta. Mr Grech and Minister Désir augured that the Eurogroup and Greece would find a solution to the issue of Greece’s debt repayments, but agreed that more effort was required by Greece to overcome the outstanding sticking points. A Grexit was not on the cards, however. The two ministers also talked about the excellent bilateral relations that exist between the two countries which could, however, be further reinforced. Minister Désir said that a suitable occasion for this would be when Valletta becomes the European Capital of Culture in 2018. MBR Source: DOI

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Malta Business Review

Human Smuggling

Minister Abela Attends EU Defence Ministers Meeting In Brussels A new Common Security and Defence Policy Military operation in the Southern Central Mediterranean to disrupt human smuggling networks approved at EU Defence Ministers Meeting. Minister for Home Affairs and National Security Carmelo Abela today attended an EU Defence Ministers meeting in Brussels chaired by High Representative for Foreign Affairs and Security Policy Federica Mogherini. During this meeting Defence Ministers approved the establishment of a new Common Security and Defence Policy military operation in the Southern Cental Mediterranean to disrupt human smuggling networks. “Malta has participated and will continue to participate in the planning of this operation and recognizes the need for collective action by all member states in order to ensure mission success. Clearly there are still some issues to be resolved but since this is also an issue of credibility we need to resolve them in the best way possible”, stated Minister Abela.

matters on the basis of joint proposals by the High Representative and the European Commission. Priority was given to proposals that should be brought to the table of the European Council and the direction expected from Heads of State and Government. Minister Abela emphasized on the need of a strategy that will incorporate measures that take into account current and emerging threats in the East and South.

Ministers also debated the state of play of military, the Common Security and Defence Policy (CSDP) missions, security challenges in the neighbourhood and the process for a strategic review of the EU’s role as a global actor. In this regard, Minister Abela remarked about the importance “to be clear about our strategic priorities and to have the political will to act especially in the East and South”.

Part of this meeting was held in the presence of NATO’s Secretary General, Jens Stoltenberg, who discussed areas of common cooperation between the EU and NATO in the promotion of international stability and security.

At the meeting, Defence Ministers reviewed preparations for the European Council of June 2015 which is to discuss security and defence

Defence Ministers were briefed on the five ongoing military CSDP missions and operations (EUTM Somalia, EUNAVFOR/Operation Atlanta, EUFOR Althea, EUTM Mali, EUFOR Central African Republic and its successor, EUMAM Central African Republic).

Throughout the day, Minister Abela held informal discussions with several Ministers of Defence including those from The Netherlands and Slovakia as well as Luxembourg, Italy, Ireland and the United Kingdom. He also met the new Chief Executive of the European Defence Agency, Mr Jorge Domecq. MBR Source: DOI

Migration Momentum Needs To Be Maintained

Parliamentary Secretary for the EU Presidency 2017 and EU Funds, the Hon. Dr. Ian Borg,General at the EU General Affairs Council

The Parliamentary Secretary Ian Borg also welcomed the comprehensive and ambitious European Agenda on Migration published by the Commission last week and stressed the importance that the momentum built in the last weeks is maintained. The Agenda and the first elements of the implementing package- the latter expected to be launched by the Commission next week- will be discussed by the different Council groups in the coming weeks, however Malta and a number of Member States welcomed the boldness of the Commission’s proposed response to the challenge. Apart from the strengthening of the FRONTEX joint operations, and the launch of the CSDP mission in the Mediterranean to tackle traffickers and people smugglers which was approved yesterday at the joint meeting of Foreign Affairs and Defence Ministers, Parliamentary Secretary Ian Borg stated that the issue of relocation is a priority for Malta. Without prejudice to the details that still need to be worked out, the fact that there will be proposals on the table to deal with emergencies and the 26

Parliamentary Secretary Ian Borg led the Maltese delegation at the General Affairs Council held in Brussels today. The main item on the agenda was the follow-up to the Special Meeting of the European Council of April on migration. Malta welcomed the roadmap which translates the Heads’ Statement into actions and timeframes. fact that there will be an evaluation, a discussion and therefore also a possible revision of the Dublin Regulation - something Malta has been calling for – is very positive. The GAC also held a preliminary discussion on the preparation of the agenda of the June European Council. Apart from the follow-up of the April decisions on migration, other items on the agenda of the Heads of State and Government which will be attended by Prime Minister Joseph Muscat, include a discussion on security issues; relations with Russia and Ukraine as well as a number of economic issues, including the Four Presidents’ Report which is expected in the coming weeks; the Digital Agenda; as well as the European Semester. Later on today, Parliamentary Secretary Ian Borg will be meeting all those working at the Maltese Permanent Representation in Brussels to discuss with them preparations ahead of the EU 2017 as well as the over-all proceedings of the Maltese government from a European perspective. MBR Source: DOI

MILLA JOVOVICH MARELLA.COM SLIEMA Bisazza Street T 2258 2788

Malta Business Review

HigHer education

Excellence In Education by Gwen Gomis

The eie Educational Group (www.eieeducationalgroup.com) is celebrating its 15th anniversary, a long way from the day when it opened its doors to the first local students who found in eie an alternative to the traditional higher education system. The eie acronym stands for – Excellence in Education. Excellence is confirmed by the student and graduate testimonials that eie regularly receives from satisfied students. eie has grown into an established organisation both in Malta and internationally. Apart from locals, the eie Institute of Education (www.eieonline.com) hosts international students who choose Malta as a place to further their education. One can opt to follow part-time, distance learning or lecture based programmes, which are carefully designed to be both enticing and versatile – what our working students require while studying and coping with their busy lives. eie will help students reach their goals as highly qualified professional individuals to play important roles globally. All academic programmes offered are MQRIC recognised complying with local regulations governing tertiary educational programmes. eie Educational Group, also runs an EFL licensed English language school – eie Languages Centre (www.eielanguages.com) – and offers courses in General English, Business English and IELTS preparation. Students hail from various countries and choose eie to further their English language skills. Courses start every Monday, whereby students are first tested to establish their current level and followed up with a meeting with the school’s Director of Studies, where the outcome of the course is determined as some students wish to improve their conversation skills, whilst others want to improve their writing or academic skills. This is then communicated to the EFL teacher so that they work together on achieving the client’s target. In terms of Academic courses, the institute offers the following Pathways: 46 28

Business & Management (Certificate, Diploma, Advanced Diploma, Bachelor, Pg. Diploma and Masters) Finance & Accounting (Certificate, Diploma, Advanced Diploma, Bachelor and Masters) Sales & Marketing (Certificate, Diploma, Advanced Diploma and Masters) I.T. (Certificate, Diploma, Advanced Diploma and Masters) Human Resources (Diploma, Advanced Diploma, Graduate Diploma and Masters) Maritime Management (Diploma, Advanced Diploma, Graduate Diploma) Journalism (Certificate and Diploma) Tourism & Business Studies (Certificate, Diploma Advanced Diploma and Masters) eie collaborates with renowned foreign educational institutions and all academic courses are recognised by the local MQRIC. MBR We invite you to call eie on 21332804 / 5 or email on info@eiegroup.com for any assistance. eie Institute of Education is licensed by the National Commission for Further and Higher Education as an Institute of Further and Higher Education - (License Number: 2005-TC-001), whilst eie Languages Centre is licensed by the EFL Monitoring Board as an English Language School (License Number: 282/MB 42).

Malta Business Review

OpiniOn

by Patrick J. O’Brien

MBR resident and award-winning journalist Patrcik J O’Brien is glad to declare that reports of the death of print have been greatly been exaggerated. Let’s read why in this article.

A little over a year ago, I announced that I was canceling my subscription for my daily newspapers. My cancellation wasn’t in protest of the new coverage of the Middle East, ethnic minorities, religion, sex, or any of the other thousand hotbutton issues that cause readers to kill their subscriptions. I was getting rid of my newsprint because the dandy redesign of the newspapers’ online versions had metamorphosed them into a far superior vessel for conveying the news. Another argument in favor of the online was that it was almost free and the print product was costly. But mostly, I found the new design of the news sites more conducive to the way I live and work. 30

I remain a big fan of online news and especially of the Irish Times Reader, the Adobe AIR application for Mac, Windows, and Linux that allows you to read the paper offline after you’ve synched it to your computer. But less than a year after my newspaper cancellation, I was paying for home delivery of my many newspapers again. I would like to blame it on my partner, who was made miserable by my radical move and demanded reinstatement of our subscription. But I started missing the touch and almost companionship of the print newspapers and the glossy goodness of the Sunday magazine. Perhaps if I could have gotten the postman to toss a blue-bagged computer preloaded with

the News Reader into my letterbox each morning, I could have survived.

I started missing the touch and almost companionship of the print newspapers and the glossy goodness of the Sunday magazine But no. What I really found myself missing was the news. Even though I spent ample time clicking through the news website and the Reader, I quickly determined that I wasn’t recalling as much of the newspaper

OpiniOn

as I should be. Going electronic had punished my powers of retention. I also noticed that I was unintentionally ignoring a slew of worthy stories. My anecdotal findings about print’s superiority were seconded by an academic study presented at the annual meeting of the Association for Education in Journalism and Mass Communication a while back. The paper, “Medium Matters: Newsreaders’ Recall and Engagement With Online and Print Newspapers” pit a group of readers of the print edition of the New York Times against Web-Times readers. Each group was given 20 minutes reading time and asked to complete a short survey. The researchers found that the print folks “remember significantly more news stories than online news readers”; that print readers “remembered significantly more topics than online newsreaders”; and that print readers remembered “more main points of news stories.” When it came to recalling headlines, print and online readers finished in a draw. Although the number of readers tested in the study is small just 45, the paper confirms my print-superiority bias, at least when it comes to reading. The paper explores several theories for why print

rules. Online newspapers tend to give few cues about a story’s importance, and the “agenda-setting function” of newspapers gets lost in the process. “Online readers are apt to acquire less information about national, international and political events than print newsreaders because of the lack of salience cues; they generally are not being told what to read via story placement and prominence an enduring feature of the print product,” the researchers write. The paper finds no evidence that the “dynamic online story forms” (you know, multimedia stuff) have made stories

Online readers are apt to acquire less information about national, international and political events than print newsreaders The paper cites other researchers on the subject who have theorised that the layout of online more memorable pages which often insert ads mid-story or force readers to click additional pages to finish the story

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may alter the reading experience. A print story, even one that jumps to another page, is not as difficult to chase to its conclusion. Newspapers are less distracting as anybody who has endured an annoying online ad while reading a news story on the Web knows. Also, and I am channeling the paper a little bit here, by virtue of habit and culture a newspaper commands a different sort of respect, engagement, and focus from readers. In Malta, I am an avid newspaper reader, often seen in one my favorite wine bar, Cleland and Souchet browsing the local news through The Malta Independent, Malta Today and its various competitors. Glossy magazines adorn my table at home, as do the latest global newspapers around the world Research has found that in digital news, consumed via apps or websites has only just reached parity with news consumed via ink and dead trees. Print and digital will continue to co-exist for a long time to come and that the practitioners from one medium can learn a great deal from practitioners from the other. Given print outdates digital by some 550 years, at least, I suggest digital has more to learn from print than the other way around! MBR

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Malta Business Review

Diplomacy

Dutch Ambassador Pays Farewell Visit To The Speaker The Ambassador of the Kingdom of The Netherlands, Rita Dulci Rahman has, this morning, paid a farewell visit to the Speaker of the House of Representatives An치lu Farrugia.

Speaker Farrugia expressed his appreciation to Mrs Dulci Rahman for the valuable work carried out during her tenure of office in Malta, during which period the bilateral relations between Malta and the Netherlands were further enhanced. The two dignitaries highlighted the excellent relations which exist between Malta and the Netherlands at parliamentary level. They referred to the meeting held last month in Rome between Speaker Farrugia and the President of the Dutch Senate Ankie Broekers-Knol and the Speaker of the Dutch House of Representatives Anouchka van Miltenburg, who together with the Speaker of the Slovak National Council Peter Pellegrini, signed a cooperation agreement related to the successive EU Presidencies of the three countries. They also discussed various international issues, such as the crisis in Libya, the ISIS threat and the problem of irregular migration. Speaker Farrugia acknowledged the Dutch practical expression of solidarity between EU member states when the Netherlands twice took a group of refugees from Malta. MBR Source: DOI

Foreign And European Affairs Committee Holds Meeting With The Georgian Delegation

The Standing Committee on Foreign and European Affairs, chaired by Luciano Busuttil, met with a parliamentary delegation from Georgia led by David Usupashvili, Chairman of the Parliament of Georgia. Source: DOI 32

During the meeting both parliamentary delegations discussed topics of mutual interest in particular with regard to the economic, financial and health sectors. Reference was also made to Malta being the first EU member state country to have ratified the Association Agreement signed between the state of Georgia and the EU. The talks concluded by both sides endorsing the proposal of setting up a joint parliamentary friendship group between both Parliaments, in order to enhance bilateral relations on a parliamentary dimension. MBR

Special Feature

Women Leaders

Malta Business Review

special feature: women leaders

Good Relationships, Unmeasurable Benefits by Martin Vella

Vanessa Scerri Worley is a Director of Primei Fiduciary Ltd and a Regulatory and Compliance Consultant within Advocates Primei. A summa cum laude graduate of the University of Malta, she has been working in the financial services sector for over ten years, MBR interviews Vanessa about the ways in which a top female financial services practitioner attempts to develop her leadership to meet the challenge of an increasingly complex environment.

special feature: women leaders

MBR: Could you describe your business and what you do? VSW: I am one of the owners and directors of Advocates Primei and Primei Fiduciary Ltd. The practice was set up in 2010 with Advocates Primei being a boutique commercial law firm whilst Primei Fiduciary Ltd, is an MFSA licensed company offering Trust, Fiduciary and Corporate services. The firm provides a variety of professional and legal support mainly focused on corporate and business law, specialised compliance support, commercial litigation, corporate and personal tax, residence, property conveyance and employment law. We are glad to have a healthy mix of local and international clients. I head the Regulatory department whereby I handle licensing issues on behalf of Financial services Clients with the MFSA and also act as a Compliance consultant to regulated clients. My years of experience working in house within the banking industry helps me understand better the clients’ needs and concerns. MBR: What inspired you to become an entrepreneur? Did you always love it or was it something you got into? VSW: Growing up my parents had a retail and a property development business and hence I always had a special interest in the business world. As a child I used to enjoy playing the role of a store keeper with my sisters or trying to help out with the stock takes and reconciliations. When I was about to enter university, Malta was already striving to become a financial services centre and hence this led me to take up Banking and Finance at undergrad level and eventually I also did a Masters in Financial Services. I worked for ten years within the local banking industry having occupied sensitive positions such as that of Internal Auditor, Compliance Officer and also a Money Laundering Reporting Officer. I enjoyed my career with the banks however my goal was always to have my own consulting practice. So I would say that I had a natural career progression which led me to where I am now. Of course, being more than an employee means harder work and longer hours however seeing your practice grow is professionally very rewarding. MBR: What are three key things that you have learned as an entrepreneur in the corporate world? VSW: We always try to be excellent in our approach and provide the best possible level of service to our clients. We also strive to provide a personal service whereby we can build a long lasting relationship with a client. However, the most important thing for us is that we don’t see our practice so much as a business but more of a service. Whilst we obviously strive to generate a good income, our main focus is not to generate profits but to be of the best assistance to our clients – in the sense that we have to provide the best solution for the client – not the solutions which generates the higher fees for us. MBR: What is the biggest challenge currently in your business and how do you approach it? VSW: The biggest challenge is keeping abreast with all the regulatory changes and requirements. New directives and regulations are continuously being introduced to make the industry better and safer especially when dealing with regulated entities. This increases the need to invest more in compliance functions. Apart from implementing all the necessary changes

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internally, we also try to ascertain that our clients are timely advised and sufficiently updated to meet their own regulatory and licensing requirements. MBR: What keeps you motivated and focused on your business through the hard times? VSW: My family. I cannot fail my family. They are my life and I work very hard so we can live comfortably and happy. The practice is extremely important, however, it should never be detrimental to my family hence I always try to strike a balance between work and family. MBR: Why is mentoring important? VSW: Mentoring is extremely important. For my first job I was mentored by a team of three professional bankers. They were excellent and I learnt so much from them. I owe them a lot. Two of them were woman. Good relationships can give unmeasurable benefits. That is why I always try to be the good mentor I always wanted to have.

Mentoring is extremely important. For my first job I was mentored by a team of three professional bankers MBR: Do you think women have to have a higher education or extensive business experience to start their own company? VSW: Not really no. You have to have a strong determination and also believe in yourself and in your capabilities. You also need to be able to take bold steps or tough decisions when necessary. MBR: Why is corporate social responsibility so important to the company and how did you develop it as part of your culture? VSW: Corporate social responsibility can take various forms and shapes. In our practice we do find ourselves helping clients who find themselves in difficult circumstances. In such instances we try to go beyond what would normally be expected of a service provider. We try to understand their problems and wherever we can give a helping hand- at times even doing pro bono work when necessary. MBR: Do you have any personal wisdom to share with other women who might want to start their own businesses? VSW: It is never the perfect time to open your own business or practice. You also cannot wait indefinitely as you may risk not taking the step. When I took a full time role within the practice I already had three young children so I did have concerns as to whether I will manage to deliver both at work and at home. However with the right frame of mind, support and set-up, nothing is impossible. MBR All Rights Reserved | Copyright 2015

EDITOR’S NOTE Vanessa Scerri Worley is a director of Primei Fiduciary Ltd and a regulatory and PMLFTR consultant of Advocates Primei. Vanessa attained a Bachelor in Commerce in 2003 from the University of Malta and also a Masters in Financial Services from the same university in 2006. Vanessa’s areas of expertise include Banking Regulation, Anti Money Laundering, Compliance, and Corporate Governance.

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Malta Business Review

special feature: women leaders

MBR: How has your career evolved and in which area do you lead today? NB: I have always been fascinated by the retail business. As a matter of fact, I was brought up in an environment where retailing was part of our familyâ&#x20AC;&#x2122;s life. My late father started the business and established a retail shoe outlet in Hamrun way back in 1980. This was the predecessor of todayâ&#x20AC;&#x2122;s Marchese. In a very short time, my fatherâ&#x20AC;&#x2122;s outlet became very popular not only with clients from Hamrun and as its reputation grew, and what began as a simple concept grew through popularity and word of mouth. My brother took over the business from my father and continued to build on the excellent reputation of the business, purchasing more updated merchandise. The untimely demise of my brother led me to shoulder the responsibility of having to share the management of the business together with my mother. Taking on this challenge, I never looked back. Operating from a fixed point-of-sale locations designed to attract a high volume of walk-in customers, I felt it was my duty to continue to build on what my father and my brother had created. Focusing more on neighbourhood convenience, the richness of the shopping experience, and inventory that meets the needs of their target customer on a personalised basis gave me a greater impetus to put my personal touch on the business. Over the years, I had learnt that success in business only comes if you listen to your clients and making sure that your product offering meets their expectations. We have always striven for quality products at affordable prices. This has been a guiding light for me throughout the years, and I am convinced that it has abetted me in my business achievements.

Entrepreneurial Spirit by George Carol

Noella Briffa believes that given the opportunity and the support a woman can achieve a top leadership role. Thrust into the business when she least expected it, Noella also had a family to look after. In this interview, she tells why it is not always easy to balance the demands of business with the needs of a family. 36

I always wanted to lift this vision to higher sights and I felt that I had the capability to make it happen MBR: What has inspired you in your work with Marchese Shoes? NB: When I took over the business I was determined to make Marchese a brand. My contacts with a reputable Spanish company, which produces good quality shoes and bags, led to a firm mutual co-operation, inspiring me to run the extra mile. Their experience in the industry broadened my vision of the business and led me to extend the product offering for my clients. Every time I am invited to one of Marian events, I try to go because I always come back with some new idea or good business practice, which I can adapt for my business. I am firm believer in keeping a close relationship with my suppliers as I do with my clients. Demonstrating

special feature: women leaders

Malta Business Review

to my principals that I value their brands and creations in turn makes them treat me as a valuable partner who is extending their market internationally, something they could not do on their own independently of how big or small the market is. MBR: Why do you think women in every country meet obstacles to achieve top leadership? NB: I had to show surprising strength and resilience in the face of competition from large-scale retailers and e-commerce outlets. Perhaps this is what keeps some women from achieving their aspirations in business. It is not because there are no intelligent women. In fact statistics are constantly showing us that even here in Malta, the number of female graduates is higher than that for male graduates. It is not because that there are no women interested in business and have good business acumen. There are! It is perhaps they miss out on the ability to manage their time properly or lack the determination to make things happen. Peter Drucker defines leadership as the lifting of a person’s vision to high sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations. And I hold to this definition and always kept it as a guide. I knew I had a vision for our business, I always wanted to lift this vision to higher sights and I felt that I had the capability to make it happen. This is evident in the way I have diversified our business. Today, at Marchese, we aim to give a holistic service to our clients, including offering the customers a warmer atmosphere, and perhaps a broader and deeper selection of merchandise, advising not only on fashion but also on what is, in our opinion, why and when the shoes and bags are being worn suitably for the different occasions when the shoes and bags are being worn. MBR: Is it harder to find the client time when you are managing your people? NB: We have the advantage of being a micro enterprise and it is therefore easier for me to instill our business philosophy in the mind of our employees, as I consider them to be a very important part of our business structure. They are there to meet clients and assist them whenever we are not in the outlet. We train them to build a good rapport with our clients and this is how regular repeat business is achieved. I try to spend as much time as possible in the shop, mainly to ensure that I keep in touch with what clients are looking for, because quality client time is very important to me, as I practice good corporate governance since this is all about teamwork. We have dedicated staff who relate to our business strategies and I cannot say that managing them ever detracted me

Marchese Shoes retail Outlet in Hamrun

from making time for my clients. Everything is part of a system so, whatever they do, I ask they make sure their second in line also knows about it. Then, if they are not available, the work can still go on.

are doing, you will be successful.” I find this so very true and when I was faced with having to take over the business, I never had a doubt in my mind that I would be happy in what I would be doing and consequently success would be a natural result.

Happiness is the key to success. If you love what you are doing, you will be successful

Being a small operator in a relatively big market, we have to compete with other large organisations in the field. We also have to look forward to the next challenge because we can’t be complacent. Everybody wants a share of this market. We have to keep looking forward and running at the same pace or even faster so we don’t get left behind. In my opinion this is a great indicator of success. I am constantly developing the business and I am happy in so doing. The repeat business we get is also another measure of Marchese’s success. MBR

MBR: What kind of impact is technology having on the business and how do you adapt? NB: Technology has had a great impact on every business and ours is no exception. I look at technology in a positive way. It makes it far easier for me to communicate with suppliers, keep updated on what is on the market, provide feedback to our partners and ensuring that special requirements of the Maltese market are catered for. Even at management level, stock control and just-in-time delivery improves efficiency and cuts down on costs. On the manufacturing side, technology also helps in making it possible to have better products at more affordable prices. It was no problem at all for me to adapt to changes in technology even though as most people in the business know, technology develops fast and it is not always easy to keep up with the fast pace of its development. MBR: How do you measure success in your line of work? NB: I once read a quote by Albert Schweitzer which read something like this: “Success is not the key to happiness. Happiness is the key to success. If you love what you

EDITOR’S NOTE

Noella Briffa studied at St Joseph’s Convent and De La Salle College. She worked for six years doing secretarial work with a company which operated the first department store in Malta. Although following the Marchese business as part of the family she took over the management of the outlet seven years ago.

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Malta Business Review

special feature: women leaders

Value, Quality and Lifestyle by Martin Vella

I caught up with Donna Benton, Founder and CEO of the Entertainer, just before her return flight to Dubai. Donna was in Malta to launch the Entertainer Malta, a book (or app) full of incentives for consumers, from restaurants to five-star hotels, all offering buy-one-get-one free deals. Launched in Dubai in 2001, the Entertainer has been saving customers money with a huge range of two-for-one offers in various countries.

special feature: women leaders

Why is the Entertainer considered as a must-have guide for thousands of customers worldwide and and segment of the business does it address? What is your target audience? DB: I would not say that we are a business publication, we are a lifestyle product. The Entertainer offers ‘buy one get one free’ incentives for dining, leisure, attractions, spas, beauty and hotel accommodation in 17 countries globally. Customers can choose to purchase either a printed book or a digital product, which is redeemable through our award-winning smartphone App. So if people are more digital savvy, they can go with the App, or if they want a physical product they can go with the book. From a business point of view, the Entertainer is great for merchants, because we help to drive new customers to their outlets and therefore drive extra revenue. At the same time, a customer who purchases the product can save thousands of euros. This enables them to visit more outlets and try experiences that they might not have before. So it’s a win-win for the merchants and the customers, plus it’s great for the Maltese economy too. MBR: The Entertainer also runs a successful white-label business. Can you tell us a little more about this? DB: There is a division of the Entertainer called Connect, which is the whitelabel side of the business. Connect deals with a lot of telecommunications companies, airlines, FMCG brands and finance companies to produce bespoke offer booklets and apps – which they use for employee loyalty and customer acquisition and retention. For example, a telecommunications company might come to us to put together a booklet of vouchers to send out to their new customers. They can select from the 500 offers available in the Entertainer Malta to put together their own booklet – which can contain 25 offers, 100 offers, or 300 offers. The booklets can be branded to the company’s own specifications. MBR: Let us look a bit beyond Malta. Is Malta a stepping-stone to other Mediterranean countries? DB: We are in seventeen countries at the moment. The majority of these are in the Middle East, we are also in three markets in Asia, three markets in

South Africa and now three markets in Europe – London, Cyprus and Malta. We are also launching in Athens at the end of the year. I wouldn’t consider Malta to be a stepping-stone as such, but we are definitely expanding now in Europe, which is a long-term strategy. People from Cyprus holiday in Malta and vice versa. People from London travel to Cyprus, Malta and Athens. So there is an audience already there and it helps us to build our portfolio. We hope that one day, wherever you are heading on holiday, you will be able to pick up your Entertainer product before your trip and enjoy unbeatable value everywhere you go.

The other great thing with the App is that when we are signing merchants throughout the year, they can be included in the App straight away MBR: Your story has been a singular one, it has been like a challenge throughout because you have created your own business. What were the main challenges to do this and build your business? DB: I think anything that you start from the ground up is hard work. If it was easy, everyone would be doing it. I do believe that you have to start by having the right idea. You also need an extremely strong work ethic and you really have to believe in your product to make it a success. Of course, you have challenges along the way and you do make mistakes, but the important thing is to learn from those mistakes. That is what makes you a stronger person, and helps evolve your company because you learn so much from them. So, I wouldn’t give up any of the mistakes that I have made because they’ve help me and my company get to where I am today. MBR: What was your motivating factor behind all of this? DB: When I started the Entertainer and I saw how popular the first product was, I realised that I loved saving customers money and I also enjoyed being able to help the merchants drive more customers into their outlets. I really do love it when I see someone using one of

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our offers in a restaurant or buying one of our products in the supermarket. I feel it is such a great brand, like I said, it is a lifestyle company. For me every day is different – one day I am dealing with restaurants, then with a hotel, a water park - that’s my motivation, I really just love what I do. MBR: Let us talk about the move into the digital space, about the launch of your App. How do you consider this development and what is your primary focus on? DB: The app took us two years to develop. A lot of people were asking for an App version of our books and we looked into it for many years. In the digital space you have to launch at the right time and be truly ready with the perfect digital product. It wasn’t a small undertaking. We launched the App globally, in all of our countries at the same time and it was a huge deal for us. We had to develop the perfect platform. We had to make it user-friendly. Then we had to input all the content for each and every one of our merchants. We had to train 10,000 merchants on how to redeem mobile offers on the App to make sure that the customers had a great experience when they used it. So it was far from simple. But the results are great. People love using it and so far we have converted 42% of our customers from book to App, which is great in just two years. The other great thing with the App is that when we are signing merchants throughout the year, they can be included in the App straight away. If someone has a print product, you can only include new outlets once a year. So that’s an advantage to our merchants too. MBR All Rights Reserved | Copyright 2015

EDITOR’S NOTE Donna Benton maintains that the Entertainer stands for value and for quality. These are the two fundamental pillars of the business. “Customers have offers for quality merchants and they get unbeatable value for money,” says Donna. “It is also beneficial for the merchants participating because the offers attract the right type of customers, who have purchased the product looking for more value rather than just savings. The Entertainer is all about value, quality and lifestyle,” these are the three words Donna says sum up the Entertainer.

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Malta Business Review

special feature: women leaders

Age Is A Statistic , Your Inner Drive Is Eternal by Martin Vella

IURIS Malta’s affiliate and locally incorporated companies, IURIS Management Limited and IURIS Fiduciary Limited are particularly focused on the provision of advisory and corporate services to our clients. The group specialises in providing advice in connection with Maltese and international tax, corporate issues, trusts and estate planning. MBR talks with Dr Jeannine Giglio to learn more about how she narrows down her choices to enable her expand the businesses so that they can contribute to our economy.

MBR: What makes Iuris Management Limited combined with your role as Partner unique in its market place?

seek to improve further and not rest on our laurels. That would result in complacency which I do not believe to be the right recipe.

JJG: Iuris Management Limited’s unique position in its marketplace is summed up in the Company’s philosophy, ‘To put all our resources and expertise at our client’s disposal, and help them obtain the best results they can possibly achieve’. This uniqueness stems from the fact that we retain a personal touch in the services we offer. By not thinking too big we can provide a hands on approach to clients’ needs. And yes ensuring that this remains in place is precisely my role.

MBR: Does corporate responsibility need to be a focus for businesses today and do the areas you support need to align with the business

MBR: How has your leadership role changed or evolved?

This evolution has also helped me to appreciate and understand all the sacrifices working mothers have to go through, juggling between work and family

JJG: Of course it has changed and evolved. Life is a learning curve. Clearly experience has helped me to gain a better understanding of my role and therefore has placed me in a position to take on more responsibilities. This evolution has also helped me to appreciate and understand all the sacrifices working mothers have to go through, juggling between work and family. This evolution in my role has also helped me to better understand how to find an ideal medium. Of course, even here I am in a constant learning curve. MBR: What was the vision around Iuris Management Limited and where does it stand today? JJG: Iuris Management Limited, which is the corporate and financial arm of Iuris Malta, handles the firm’s tax, corporate and trust services. The vision of the company was to create a set up which is never greater than what it can manage. In this way one can ensure a personal, efficient and more professional approach when servicing our clients. Today, i am happy with our achievements. Leadership however requires that we always 40

JJG: I think corporate responsibility is essential. Companies owe a responsibility to their shareholders primarily and yes why not, to society in general. In the services sector this is even more relevant.

MBR: If I was talking to some of those on your leadership team without you in the room and I asked about your style, what would they say? JJG: To be very honest I have no idea. Ideally, this question is posed to them. However I hope that their response would be that I value team work. However it lacks style for me to comment on what I believe others think of me. MBR: Is your client expertise and focus strictly on the larger firms or is it broader? JJG: No, even if you are looking at a niche market you should always keep a broad perspective MBR: Do young people coming into this field need business experience as well as expertise in the law to handle matters today? JJG: Experience is always a valuable asset. In this field, business experience as well as

legal expertise, complement one another. However, experience and expertise come with time. The advantage of being young is that you have time to gain the experience and expertise. What young people need is commitment to hard work, the values of professionalism and loyalty. They also need to understand that providing the service rather than the financial gain ought to be their main goal. Satisfaction comes not from how much you gain but rather from the level of the service you provide. Young people must appreciate that Rome was not built in one day and its beauty today is a result of a day-by-day evolution that took place over centuries. Having said that, I must point out that I do not consider myself old. It is not age that determines whether you are young or old. This is because the considerations I mentioned above should remain within us, me included, irrespective of age. Age is a statistic, your inner drive is eternal. MBR: How critical has diversity and inclusion been to the success of the company? JJG: The success of the company depends on the people who work within it. One ought never to exclude a priori persons who you perceive to have potential. A true leader should identify such potential, encourage it and see how best to maximise it. MBR: Do you take time to celebrate the wins or are you always looking ahead to the next challenge? JJG: In this field one does not talk about wins and losses but about providing a service. What we do is set goals and targets. We take time to see that such goals and targets are reached. We take time to learn from the experience and grow and then set new challenges. Once a goal or target we set out has been reached in the proper manner then yes why not toast to that! MBR All Rights Reserved | Copyright 2015

special feature: women leaders

Malta Business Review

Practice areas

• Bachelor of Arts in Legal and Humanistic Studies 1999

• Arts & Culture

• Diploma Notary Public 2000

• Aviation • Corporate Governance

• Doctor of Laws, University of Malta, Degree conferred in November 2003 after the submission of a thesis entitled “Anti-Avoidance Tax Measures”.

• International Commercial Tax

• Diploma in Tax from the Malta Institute of Taxation 2011

• Investment Funds career Path & Other POsts • Partner Iuris Management Group • Senior Associate with GSB 2009 -2012 • Advisor to the Minister for Family and Social Solidarity 2006-2009 • Associate with Ganado Sammut 2004 -2005

Languages • Fluent in Maltese, English and Italian, proficient in French MeMbershiPs • European Lawyers Group • Association of European Independent Lawyers

• Foundation Certificate in Trust Law and Management from the Malta Institute of Taxation -2005

• Institute of Financial Services

• Admitted to the Bar in 2004

• Vice President of the Association of International Tax Consultants (AITC)

• Malta Institute of Taxation

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Malta Business Review

special feature: women leaders

Discipline, Positive Thinking And Balance by Martin Vella

Opening a brand fashion retail outlet is serious business. Fashion forward thinking Christine Pace founded Dorkins Ltd with a good sense driven by fashion passion and the love of working with the public. In this interview, we find out how Christine married her fashion sense and her business sense with a retail clothing business.

MBR: Could you describe your business and what is your role in it? CP: My role is Managing Director, my business is retail and we are the local Franchisees for Clarks , Topshop, Topman, Dorothy Perkins, Evans, Burton menswear, Wallis, Ovs and Marella and recently added CR7, the accessory range of Cristiano Ronaldo which we are distributing and selling in other outlets apart from our own shop the CR store in Sliema. In June we will be opening a new brand Superdry in Valletta with another coming up later in the year in Sliema. MBR: What is the focus of your role at Dorkins? CP: My role is to the day-to-day running of the company which basically oversees a mixture of the buying, staff, marketing and developing further long term new projects.

Trading in an Island as small as ours can be quite challenging to differentiate but surely you can MBR: How challenging is it to differentiate in this segment? Can you find ways to show how you have made Dorkins unique? CP: Trading in an Island as small as ours can be quite challenging to differentiate but surely you can. Dorkins is unique as it is a company built solely from scratch by myself and later my husband joined (he used to work in the hotel business when I was in retail). I worked as a retail employee myself for quite a few years before starting my own business, so I can really understand most issues in the different areas. 42

special feature: women leaders

Malta Business Review

MBR: Is it challenging to maintain your culture once you reach a certain size? CP: It is not easy, but one must always appreciate that if you lose that culture then how do you expect your employees to respect you? You must understand that you are the figurehead vision for all the team and you have to give that motivation and loyalty yourself for others to give it back to you. MBR: What inspired to become an entrepreneur? Did you always love it or was it something you inherited? CP: I did not inherit any part of my business, my father was Chief Justice, my mother was totally dedicated to her family the driving force to all her eleven children of whom I was the youngest. I started working in retail as a summer job, thinking I would later go back to my studies but this never happened. I loved retail from day one and developed a great passion for this, which motivated my later venture into self-employment! MBR: What are three key things that you have learned as an entrepreneur in the corporate world? CP: Discipline, positive thinking and balance. MBR: How critical is a diverse workforce to Dorkins’s success? Are there opportunities at senior levels for women? CP: Diverse workforce brings a competitive edge into the company and makes it more creative and productive. There is place for senior levels, Mariella is head of purchasing and most of our store managers are female, we do have also an equal amount of men who run the office and Brand Management.

MBR: With all of the technology available today, how critical is it that employees remain focused on human contact?

Trading in an Island as small as ours can be quite challenging to differentiate but surely you can CP: Human contact is of extreme importance and no amount of technology can replace this. You can introduce all the computers and IT systems in the world but ultimately you are dealing with your employees who in turn have to deal with your customers and this formula that basically keeps the business going will only work on human contact. It is very important for all your team to feel good about working for the company and representing brands.

MBR: How critical is it to have the MD’s engagement with your department/s? CP: It is critical as although you will have managers and their assistants in various departments, the Managing Director is the driving force of the day-to-day, you need to be part of this activity otherwise you can never be as productive and respond quickly to daily needs and changes. MBR: Do you have any personal wisdom to share with other women who might want to start their own businesses? CP: Always think ‘yes I can’, never be afraid of a challenge, keep your feet well on the ground and make sure you don’t do this because it is someone else’s’ money but because you know what you are doing and have a passion for it. MBR All Rights Reserved | Copyright 2015

EDITOR’S NOTE I started working in retail at a very young age and immediately I felt that working with people in a fast paced environment was very rewarding for me. Quite soon my dream of opening my own retail outlet started and at the age of 22 I opened my first boutique in Sliema which I called Novecento. This was a small but exclusive boutique where I handpicked every single item I sold, very unique pieces and the best of quality. Few years later I opened an Italian Franchise called Reds with the opening of Plaza. In 1997, I got a contract with the today , Arcadia Group and started Dorothy Perkins, to follow with Evans, Topshop,Topman, Wallis and Burtonmenswear. At this point my husband left his job in a hotel and joined the company. To follow was Franchise agreement and the beginning of Clarks which was an instant

success. Ovs we started just about a year later and this turned into a very popular family store selling extremely well on kids wear. Two years ago we joined the Max Mara group in Italy and opened Marella in Sliema, selling high end Italian clothing for women in the best styling and quality. Last year we got to Malta the Cristiano Ronaldo , CR7 fashion and accessory range he launched , and apart from selling in our own CR Store in Sliema we also distribute to various outlets. In June this year Malta will have the first opening of Superdry, British upmarket brand selling causal clothing for real stylish youngsters. The first will be in Valletta and Sliema to follow next season. From one boutique, today we represent 11 brands, and sixteen point of sales plus other distribution.

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Malta Business Review

special feature: women leaders

Strategy, Vision and Direction by Astrid Veld

There are lots of reasons to feel empowered about being a woman today. Clothes and fashion is one of them. Diane Izzo has used her business acumen and fashion savvy to make a name for Dizz Group in the brand clothing retail industry. As Diane shares her outlook with MBR readers, she also reflects on her belief in innovative management practices which sees empowerment of staff at management levels. 44

special feature: women leaders

Malta Business Review

MBR: Tell us about your work journey and define your role within Dizz group?

MBR: What has been your biggest challenge as a woman entrepreneur?

DI: I formed the Dizz Group, with my husband Karl in 2000, while we both were employed in other companies. Whilst on holiday in Hungary we had come across the Terranova brand and immediately saw its potential in Malta. It was then that we decided to open our first outlet in Baystreet. My faith in the location and the brand proved to be correct, and the outlet was an instant success.

DI: My biggest challenge has been that of converting problems and hurdles into objectives and to find solutions in the shortest possible timeframe.

In the following years new outlets were opened for Terranova and other brands were also acquired, including Callliope and Liu Jo in the fashion apparel sector. Other prestigious brands like Caffe Pascucci, Make Up Store, You Vee Sunglasses and an investment in part of a chain owned by Dean Gera, with further subsequent investments made by the Dizz Group of Companies. Thanks to the backing of the franchise owners each sector of the business has grown rapidly over the years and many outlets are open in prominent and prestigious locations in Malta. The group today has majority shareholdings in Dizz Ltd, D’s Ltd, DK Fashion Ltd and DKM Ltd. Our Business goal and vision is in line with our belief that we can all live and work together reaching new challenges with our leading brands and this we do by means of our insight. Satisfaction, loyalty, and competitive prices will always be our first value towards our customers. MBR: What inspired you to become an entrepreneur? Did you always love it or was it something you got into? DI: Ever since I was young I was always ambitious and wanted to achieve a lot in life. I guess my dad who had his own business helped me establish this vision as he was always my role model. The inspiration to plunge into setting up my first retail outlet came to me when I was abroad with my husband and we both saw the potential in the franchise. By that time I had worked enough for others and was certainly ready for the challenge. MBR: How did you become interested in the fashion, beauty and catering industries? DI: My sisters and I always drove each other crazy over the latest fashion wear and the selection of this industry sector was the natural choice. Beauty followed as a next step towards horizontal integration and then our Group focused on catering because we saw an opportunity for premium quality cafeterias run under the renowned Pascucci brand. This brought the necessary diversification to our group too. MBR: Did you know earlier on that you had the entrepreneurial spirit, and to what do you attribute that? DI: To be honest I had no doubt because I was always confident and always persisted in a strong bid towards success. Today it’s only a question of time before our Group continues to grow further and further. MBR: What has been the key to your professional success? DI: The key to my success is to work with a strong and accountable team around me to whom I delegate all of my ideas and vision. I have found it is also important to seek growth in progressive steps and to only take decisions based on minimal and well calculated risks.

MBR: Is it important to create customers by reaching the younger generation? DI: Yes it is an important part of our marketing approach. We believe that the younger generations are the foundation of society and they certainly attract further customers of different ages to our outlets. After all it is these younger generations who spend most with us.

Our Business goal and vision is in line with our belief that we can all live and work together reaching new challenges with our leading brands MBR: What do you tell young women about the opportunities that exist in business today, and is the playing field levelling for women? DI: The opportunities have and always will be there for everyone. I believe that many women just need to find the courage and take the plunge like i did. MBR: How has your leadership role changed or evolved? DI: My leadership role has changed very much. Today, I am more intently focused on strategy and our future vision and direction. Decision making takes up a lot of my time as CEO. As our Group grows further and further I find myself delegating more roles to my team. MBR: Do you take time to celebrate the wins or are you always looking ahead to the next challenge? DI: Yes, we certainly do. I love traveling and enjoying good quality family time. MBR All Rights Reserved | Copyright 2015

EDITOR’S NOTE Diane Izzo formed the Dizz Group, with her husband Karl in 2000, while they both were employed in other companies. Whilst on holiday in Hungary Diane had come across the Terranova brand and immediately saw its potential in Malta. It was then that she decided to open their first outlet in Baystreet. Her faith in the location and the brand proved to be correct, and the outlet was an instant success. In the following years that came new outlets were opened for Terranova and other brands were also acquired, including Callliope and Liu Jo in the fashion apparel sector. Other prestigious brands like Caffe Pascucci, Make Up Store, You Vee Sunglasses and an investment in part of a chain owned by Dean Gera were further subsequent investments made by the Dizz Group of Companies. Thanks to the backing of the franchise owners each sector of the business has grown rapidly over the years and many outlets are open in prominent and prestigious locations in Malta. The group today has majority shareholdings in Dizz Ltd, D’s Ltd, DK Fashion Ltd and DKM Ltd. Our Business goal and vision is in line with Daine’s belief that they can all live and work together reaching new challenges with their leading brands and this she does by means of her insight.

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Malta Business Review

special feature: women leaders

Defining Leadership by Martin Vella

This woman climbed the ladder and broke the glass ceiling. Mastering the line of business, Deborah Schembri, Managing Director of STM Malta Trust and Company Management Limited (STMM), maintains that aspiring female executives should look for leadership roles by seeking progressive responsibility. So let’s find out why Deborah is using her experiences to help other women progress to take on leadership roles. MBR: Would you provide an overview of STMM and the role you play within the company? DS: STMM primarily provides pensions administration services for international clients. STMM is registered as a Retirement Scheme Administrator with the Malta Financial Services Authority. It is also authorised to act as trustee or co-trustee to provide fiduciary services in terms of the Trusts and Trustees Act. We are part of STM Group which is an independent firm listed on the London Stock Exchange. The company opened the offices in Malta 46

in 2010 and as today it employs circa 40 employees. As a Managing Director I am responsible for the performance of the Company as dictated by the board’s overall strategy. This entails formulating and successfully implementing company policy, directing strategy towards the profitable growth and operation of the Company, developing strategic operating plans that reflect the longer-term objectives and putting in place adequate operational planning and financial control systems

It is of utmost importance that you lead and nurture an entrepreneurial culture within the organisation. The basic principles that guide me in my role are: • • • • • • • •

resiliency focus invest for the long term find and manage people sell learn self-reflection self-reliance

special feature: women leaders

MBR: How challenging is it to address strategic investment and what motivated STM Group to open the offices in Malta? DS: STM Group plc was formed as a strategic investment company specifically to build a leading financial services group operating in the international corporate and trustee service provider (CTSP) sector. This has been achieved through acquiring, consolidating and growing high-quality existing CTSPs which offer complementary products and services that operate from complementary jurisdiction. Strategic investment is achievable provided the strategy is clear. The Group opened its offices in Malta in 2010 in view of the advantages offered by the Malta jurisdiction. Malta is an English-speaking jurisdiction with excellent regulation. As a full EU and Commonwealth member, the island has a long history of economic and financial security. Malta is on the OECD ‘White List’ for global standards in tax co-operation and information exchange.

MBR: How do you show what makes a company stands apart from the rest?

•

DS: STMM operates in a highly competitive and dynamic industry. However few companies have to subject themselves to the corporate rigour of being part of a Group listed on the London Stock Exchange. Our size is also very important in terms of number of clients, value of assets under management and financial performance. We do set ourselves apart through responsiveness and expertise.

•

MBR: What are you most focused on to ensure growth for STMM continues? DS: The competitive forces shape strategy. Awareness of these forces can help a company stake out a position in the industry that is less vulnerable to attack. The nature and degree of competition in an industry hinge on five competing forces:

Nevertheless it is still a reality that in a number of cases a woman sill needs to overcome social stereotyping in business to succeed

MBR: Are there enough opportunities today for women to reach top levels of leadership? DS: Our firm believes in: • • • •

the equal opportunities perspective the meritocratic perspective the view that women can contribute something special and the idea that women uphold other values that could inspire radical changes in the way organisation functions

Nevertheless it is still a reality that in a number of cases a woman still needs to overcome social stereotyping in business to succeed. However my feeling is that glass ceiling exists if you allow it. I believe that there is always a way to overcome obstacles and women are good at figuring out ways to push through whatever barriers are there! It could be that we need to work harder to accomplish but where there is a will there is a way. MBR: Is it more challenging to maintain the entrepreneurial culture as STMM grows? DS: In an entrepreneurial culture work is more than a job, it’s a lifestyle. Employees are more like a team. Our firm believes in a set of rules: • • •

treat people with respect open doors to communication make time for people to get to know each other and the Company

Maintaining entrepreneurial culture as the Company grows is challenging, it needs to be watched so that it grows as you intended. The trick is standing back but not too far back!

• • • • •

the threat of new entrants the bargaining power of customers the bargaining power of suppliers the threat of substitute products / services and the jockeying among current contestants

STMM growth strategy is focused on maintaining a high level service standard and developing new products. MBR: How do you define corporate strategy within the organisation? DS: Corporate strategy is the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. In achieving our growth platforms STMM focuses on highly trained and diverse staff complement ensuring accuracy and responsiveness. MBR: As a leader within the corporate strategy, what are you focused on to make certain you are achieving your goals? DS: To achieve the goals the focus is on: • • • • •

Innovation Developing Focus on people Inspire trust Long range perspective

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Challenges the status quo and asks why Originates

MBR: How critical is having a diverse workforce and how successful have you been in growing your female workforce? DS: It is critical that we find staff that is motivated and responsive. We are not influenced by gender in our recruitment. In fact 50% of our workforce is female. A diverse workforce provides tangible and intangible benefits. MBR: What do you think makes an effective leader/entrepreneur and what do you find most fulfilling about your leadership role DS: I believe that in a leadership and entrepreneurial role it is important that: •

you love what you do

•

know your strengths and weaknesses

•

be prepared to learn

•

be action-focused

•

have a reasonable amount of financial understanding and keep an eye on the bottom line

•

be customer focused

•

create a vision …a dream

Setting strategic objectives and in coordination with all my team, accomplishing such objectives is pleasing. Working with fantastic colleagues is fulfilling! And I would like to conclude the interview by a Nelson Mandela quote, “A leader is like a shepherd. He stays behind the flock, letting the most nimble go out ahead, whereupon the others follow, not realising that all along they are being directed from behind”. MBR All Rights Reserved | Copyright 2015

EDITOR’S NOTE BA(Hons) Accty., Dip. Tax., FIA, CPA, MIM, MBA (Henley) Deborah has twenty years experience in the financial services, gaming and hospitality industries. In her various senior managerial roles she had formulated new strategic directions and implemented the necessary changes. She has been instrumental in setting up STM Malta.. She is a Certified Public Accountant, holds a Masters in Business Administration from Henley Management College and shortly she will be obtaining the Diploma in Retirement Provision pursued with the UK Pensions Management Institute. She is a Fellow Member of the Malta Institute of Accountants, and a Member of the Malta Institute of Taxation, Malta Institute of Management, Institute of Financial Services Practitioners and Pension Management Institute UK.

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Malta Business Review

Solvency II DIrectIve

Panel discussion moderated by PKF Malta’s Senior Partner, Mr. George Mangion had on board (from right) Ms. Sarah Goddard – CEO of Dublin International Insurance & Management Association (DIMA), Ms. Margareta Zaveri – Vice President at Marsh Captive Solutions, Ms. Elizabeth Carbonaro – Account Director at Willis Management (Malta) Limited and Mr. Neil Coulson – Partner at PKF Littlejohn (London)

Inside The Solvency II Directive by Martin Vella

PKF Malta conducted a survey regarding the Solvency II Directive which was circulated amongst the Maltese registered firms. MBR Editor interviews Miss Lynsey Schembri, Senior Statistician at PKF Malta to find out more about the Solvency II Directive. BACKGROUND The Solvency II Directive, due to come into effect as of January 2016, provides the regulatory framework for EU’s insurance industry, implementing a solvency regime. Solvency II is founded on three main pillars, aimed at a harmonised solvency and governance platform for the EU’s Insurers. −

Pillar 1 - consists of quantitative requirements

−

Pillar 2 - Governance and Supervision

−

Pillar 3 - Disclosure

MBR: What was the main scope of the study? LS: With the Solvency II regulation just around the corner, we felt that there was a need to gauge the impact of the Solvency II regulation on the Maltese insurers. Essentially, the questionnaire touched upon the main aspects of the Solvency 48

II regulation, that is, Pillar I (the system that was utilised and the Forward Looking Assessment of Own Risks, Pillar II, Pillar III, management and personnel, the costs incurred as well as the perception of the Maltese insurers in view of the regulator.

None of the respondents are making use of either the full or partial internal model MBR:: Who participated in the survey? LS: The target population included all those firms which are licensed by the MFSA in 5 sectors: Insurance Principals (Insurers and Reinsurers), Affiliated Insurance Companies (Insurers and Reinsurers) and Protected Cell Companies (PCC), thus a total of 58 firms. In reality, the sampling frame however was smaller as insurance managers managing more

than three companies were not asked to fill a questionnaire for all the firms they manage. Instead, a sample from the companies they manage was taken. In all, firm-wise we had a response rate of 45% whereas when considering the response rate of individual companies and insurance managers there was a participation rate of 71%. Without any doubt, such response rates are very encouraging given the tight time frames we were working with. To give the readers a better feel of the sample, 23.1% were PCCs while 76.9% were traditional companies (i.e. non-PCC). 80.77% of the total sample write general business, 11.54% write long term business and 7.69% write both long term and general business. Given the nature of the insurance sector, we chose to classify the firms (size wise) through the Gross Written Premium (GWP). Thus from the firms participating in the survey 34.78% write less than 10 million (€), 39.13% write between 10 million and

Solvency II DIrectIve

50 million (€), 17.39% write between 51 million and 150 million (€) and 8.7% write more than 151 million (€). MBR: With regards to the Solvency II models (Pillar 1), can you give us an idea how the industry is dealing with these? LS: Yes, in fact through the survey we managed to extract very interesting results! None of the respondents are making use of either the full or partial internal model, but perhaps this is not surprising given that Malta’s insurers are small by international standards. The reason generally given is that costs, relative to the advantages of an internal model are prohibitive. Although all are using the Standard Model, only 20.83%, are using Underwriting Specific Parameters (USPs): all are small companies writing general (non-life) business directly and pure captives writing affiliated risks. These companies are likely to have distinct portfolios with risk factors that deviate from those underlying the Standard Model calibration. However 68% of respondents find some level of difficulty in quantifying risks not specifically formulated in the Standard Model. Reputation, inflation, contagion, counter-party, strategic, liquidity and legal environment risk are all mentioned as areas of difficulty, the highest being reputation risk mentioned by 40%. However 32% found no particular difficulty quantifying any of these essentially qualitative risks.

Malta Business Review

MBR: The general feel from the industry is that Pillar II placed a high administrative burden on companies, is this true?

risks to assess its existing and future capital requirements based on the prevailing environment and business strategy.

LS: From the responses and comments we gathered from the survey, although many had the policies in place these were not actually documented. In fact, most of them had to introduce a collection of written policies that previously they were not formalised. For example, 84% needed to formalise a written risk management policy and 72% a written ‘fit and proper persons’ policy. Further, 36% needed to make changes to their internal control processes.

The FLAOR methodology is meant to draw on data and input from all key business departments, however in practice this might not always be the case. This, in fact was further confirmed from the survey results as a substantial figure of 68% of cases the Risk Management Department controlled the process gathering data from other departments as needed.

72% of companies reported no variance between their FLAOR capital needs and their SCR, suggesting a high proportion of Malta’s insurers have stable business models

LS: 72% of companies reported no variance between their FLAOR capital needs and their SCR, suggesting a high proportion of Malta’s insurers have stable business models and are not looking to expand in the short to medium term, at least.

MBR: What is the ‘Forward Looking Assessment of Own Risks’, better known as FLAOR and what information did you manage to extract from the survey?

LS: 64% of respondents reported an increase in the number of board meetings being held and 40% reported an increase in the number of board sub-committees; however only 12% had added additional board members, either executive or non-executive. This is probably indicative of the long preparatory period the industry has had for Solvency II and the higher standard of corporate governance demanded for many years by MFSA.

LS: Forward Looking Assessment of Own Risk (FLAOR), was formerly known as Own Risk and Solvency Assessment (ORSA). FLAOR is a modified analysis process which analyses the company’s present and future

MBR: When taking into consideration the capital requirements in view of Solvency II, how did the Insurance firms fare?

MBR: When considering changes in terms of management and personnel, what was the feel?

PKF’s Anna Golis, Donna Greaves and Lynsey Schembri leading the exhibition booth at the Finance Malta Annual Conference 2015

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catagory

Ms. Lynsey Schembri, Senior Statistician at PKF Malta presenting the Solvency II study at the Finance Malta Annual Conference 2015

Both the importance of the actuarial function and the difficulty in procuring sufficient cost-effective in-house actuarial skills are evidenced by the 85.71% of companies which have outsourced their actuarial function. Similarly 93.33% have outsourced their internal audit function. MBR: Pillar III consists of disclosure requirements, aiming to achieve a high level of transparency for the public and supervisors. Through the survey results, how do you feel that the Maltese Insurance companies are coping with the requirements? LS: 60% of companies expect Pillar III disclosure requirements to be burdensome, alongside their other reporting and regulatory requirements, 44% being particularly concerned about having to disclose sensitive commercial information. Furthermore, the introduction of the Solvency and Financial Condition Report (SFCR) is a public report that will be issued yearly was also discussed. It must be noted that although some firms are not having any problems with the SFCR without any doubt the common remark from most of the firms was a very obvious one. Their main difficulty is not disclosing to the general public but because the SFCR could obviously be scrutinised by other competitors. This problem escalates in proportion to how specialised an insurance firm is, that is, if an insurance writes business for a very specialized field, it could potentially be endangering itself by revealing key business factors. 50

MBR: EIOPA issued the Quantitative Reporting templates, were they received well by the firms?

MBR: Solvency II is a regulation that must be implemented and adopted by all firms, was it costly?

LS: The market’s response to the solvency II tools provided by EIOPA, the Qualitative Reporting Templates, has been mixed with 56% finding them fit for purpose. However, only 40% have found them efficient and usable without some staff training while only 34.78% have found them fully compatible with own systems. Some level of software investment has been required.

LS: When considering Pillar I, 28% of respondents found costs to be material. 48% of respondents found costs related to Pillar II to be material and 44% of respondents expect costs related to Pillar III to be material

Most of the firms also consider this regulation as “helpful” as it assists them to maintain discipline and monitor everything MBR: As you explained, there are three Pillars under Solvency II, which one did the Maltese insurers find the most challenging? LS: At the point in time, the current challenge is Pillar III in fact, when asked which Pillar is the most challenging, 43.48% remarked that Pillar III has caused or is causing the most concern and difficult, whilst 39.13% responded that Pillar II was their biggest difficulty and 17.39% remarked that Pillar I was the most challenging.

When analysing the costs regarding to staffing and training as a result of Solvency II, 28% considered the costs as on the high side. We asked the firms whether the increase in the costs will be reflected with an increase in the premium however 92% put forward their view that the insurance sector is highly market driven and as a result they cannot dictate the premiums. MBR: What are your concluding remarks? LS: Essentially, the general feel amongst the insurance companies was that the Solvency II regulation was deemed to be a significant improvement (91.67%) over Solvency I in maintaining the solvency and financial security of insurers or reinsurers. Most of the firms also consider this regulation as “helpful” as it assists them to maintain discipline and monitor everything. Furthermore, from the survey, very positive results were also extracted about the MFSA. MBR For further information regarding this study kindly email us on: info@pkfmalta.com All Rights Reserved | Copyright 2015

Methode Electronics Malta Ltd., Industrial Estate, Mriehel, BKR 3000

T: (+356) 2148 4184 info@methode-eur.com

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User Interface | Power | Data | Sensor & Switches

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SMEs

The Internationalisation Of Maltese SMEs

Part 4 – Exporting As A Means Of Internationalization by Ing. David J. Dingli

This is parT 4 in a series of articles covering the various aspects of SME internationalization. This article is all about “Exporting as a means of Internationalization”. although exporting is not the only means to internationalize it is by far the most common and still the most sought after method, hence it was felt that a section should be wholly dedicated to this approach. parT 1 focused on the “Motivation for Growth”. If this driving force is not even present within the firm then there is no point even discussing internationalization options. The article explained the challenges of growth and its inherrent drivers. parT 2 dealt with the “Barriers and challenges for SME Internationalization”. The stubmling blocks that even the best intentioned companies who are wholly motivated for internationalization was covered in this article. Companies must muster enough courage to overcome these challenges. parT 3 was the most recent article. This was about the “pre-Internationalization phase”. Companies must be ready to embrace internationalization and require a set of parameters and characteristics to be present in their organisation in order to reduce the risks that are associated with international growth. parT 5 will address the “International Entrepreneur and Born Global Companies”. We are coming across more and more high technology innovative entrepreneurial firms that are set up with the initial intention of going global. They might not even have a domestic market. These firm bypass all traditional stages of the internationalization process. Malta needs as many of these kinds of firms as possible. 52

SMEs

IntroductIon PerceIved benefIts and advantages of exPortIng At a national level, there is always interest in exports as it represents additional employment, favors a positive trade balance and creates a huge multiplier effect with so many spin-offs and benefits. So, undoubtedly exporting is important for both the national economy and for the firms involved. Ultimately at national level, it might not make a difference if the exporting company is a foreign owned company operating in Malta or whether it is a locally grown SME moving on to its next phase of the growth cycle. The tendency however, is that foreign owned firms setting up subsidiaries in Malta are exporting much more than locally grown firms. For Maltese businesses, exporting represents scale and a break from the limited size of the domestic market. It also generates funds for reinvestment and further growth. The local entrepreneur creates an opportunity to spread business risk across various markets, whilst making very productive use of operating capacity. As the manufacturing industry shifted from labor-intensive manufacturing facilities to high value product manufacturing, Maltese SMEs are aggressively seeking opportunities overseas for business expansion. Due to the limited domestic market in Malta, the Maltese government, in cooperation with Malta Enterprise has been actively promoting trade and export opportunities for Maltese manufacturers by holding trade exhibitions and assisting local firms to attend international exhibitions to promote their products as well as offering strategic planning and innovation capability incentives. While the decision to export and the key success factors behind internationalization have been the focus of a considerable number of studies worldwide, the examination of the export behavior of Maltese firms in general and SMEs in particular has been limited. Research in this area is highly desireable.

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Studies conducted around the world have concluded that management perceptions of the benefits that they develop from exporting are a key to determining the internationalization orientation of their firm. These perceptions mainly revolve around export profitability, protection against an economic downturn at home, an ability to exploit economies of scale, excess production capacity, exports that assist in developing domestic markets, the limited size of the domestic market, and the ability to diversify markets. Working with foreign partners also gives local entrepreneurs a broader awareness of market conditions through information sharing and market diversification will enable local firms to spread their source of revenue.

The examination of the export behavior of Maltese firms in general and SMEs in particular has been limited. Research in this area is highly desireable The level of success that an SME can derive from exporting is always going to remain a function of competitiveness. So the level of production, quality, product, price, distribution, marketing and position within the industry will determine the overall firm competitiveness and hence its level of export success.

the decIsIon to exPort As explained in previous articles in this series, the characteristics of top management, especially when analysing their international orientation is one of the most influential attributes of exporting firms. Firms that encourage continuous learning and knowledge building through in-house training and development often develop specific skills that are identified as critical to

Figure 1: Export Decision Framework

Source: Shih & Wickramasekera 2010 www.maltabusinessreview.net

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SMEs

compete in the selected market(s) (e.g., language skills, marketing skills). These will ultimately enable the company to compete successfully in international markets. In figure 1 below, a framework is presented that illustrates the variables that influence a firm’s decision to export. These are mainly (1) The Firm Characteristics where the most important elements are focused on top management. (2) The Enhancing Factors highlight the strong motivational forces encouraging the entrepreneur to seriously consider export as a viable route to growth. (3) The Inhibiting Factors, which are always considered, no matter how strong the enhancing factors might be. Ultimately the entrepreneur balances the Enhancing and Inhibiting factors and if more benefits are perceived together with appropriate Firm Characteristics then a decision to export is taken. o Having the right people in place to run the export side of the business even if it means recruiting additional staff is a necessary part of redesigning the organization structure.

be PrePared for InternatIonaLIzatIon To have a successful international business, a company needs a product or service which is in demand in overseas markets, as well as the necessary commitment, resources, skills and information to support sustained exporting activities over the longer term.

market research

It is important that companies talk to their banks to determine the most suitable form of payment from their buyers, prior to concluding any agreement

The following are key indicators that will increase the probability of success in export markets •

Allocation of significant management time and strong management commitment o Developing an international business is no different to starting and building a domestic business.

•

Exporting requires substantial commitment from management across the business, not just from the CEO or sales manager. •

Strength in the domestic market o Strong domestic sales form the basis of a good exporting business. A successful domestic business gives overseas buyers confidence in a firm as a supplier and will ensure that the business processes are in place and well tested. o An added benefit is that strength in the domestic market will also provide the necessary cash flow and working capital needed to invest in developing export markets.

•

The resources to succeed o Exporters find they need strong financial resources to expand overseas to cover the costs of product modifications, travel and international marketing.

as an integral factor in this consideration. An expansion and investment plan should be prepared in anticipation of increased demand on the company’s resources, both in terms of finance and production capacity.

•

Understanding the market is essential for export success. The company must decide if it will be focusing on one market or many markets at the same time. Country attractiveness must be analyzed as it is influenced by the product, its competitiveness in the target market, geographical factors, income and population, political, social and economic conditions.

Business and export planning

marketIng PLan

o Many SMEs do not indulge in formal business planning, however it must be realized that exporting elevates the company to a new level and it would be much riskier operating without any structured plans in place.

The company needs to develop an export marketing plan, paying special attention to the method of market entry as well as how much to adapt the domestic marketing strategy to satisfy market conditions overseas. The plan should cover elements such as; promotion, distribution, market segmentation, pricing, and finance

Export knowledge and skills o To export successfully the entrepreneur and the export team will need to learn about a wide range of issues such as how foreign markets operate, export documentation and foreign currency management

the exPort Process Once the decision to export has been made, there are a number of important elements that must be considered.

evaLuatIon The company must evaluate its export capability and product suitability for the potential market, taking consumers’ needs

restrIctIons and reguLatIons Legislation may prohibit or restrict the exportation of certain goods. A company might need to engage legal experts to ensure that they are well informed of legal and trade regulations.

quotIng & PrIcIng for Product exPort When the company is ready to export it is essential that products are sold competitively and that quotes are correctly prepared. Pricing can be a problem, even for an experienced exporter. It is critical that firms consider all additional costs incurred when exporting as these additional costs can add substantially to the price set.

SMEs

exPort fInance and Payment Consideration must be given to the possibility of any delays in payment, loses due to fluctuations in exchange rates and the possibility of not receiving payment at all for a number of reasons. It is important that companies talk to their banks to determine the most suitable form of payment from their buyers, prior to concluding any agreement. The bank is an important partner to exporters and is able to provide valuable information and assistance.

Insurance Insurance can be arranged to cover potential loss. In the case of exporting there are two forms of insurance to consider: • Marine insurance - for damage caused to goods during transport. Many marine insurers now provide insurance policies that cover multimodal transport. • Payment insurance - to cover against non-payment arising from defined political and commercial risks.

PackagIng and LabeLLIng Companies will need to take the following points into consideration when labelling and packaging their products for the overseas market:

ImPortIng country requIrements • Legal labelling requirements of the country being exporting to • Cultural considerations (for example colours that may not be appropriate) • Correct use of foreign language

transPort and dIstrIbutIon channeLs PackagIng Products Due to extensive handling of products when being transported overseas, it is important that product packaging is done appropriately to avoid breakage, moisture damage and theft.

methods of transPort • Postal - ideal for small packages. Postal types include surface mail, airmail and surface air lifted. • Sea Freight – the cheapest, although slowest, method of transport. • Air Freight – the fastest, although most expensive method of transport. It is worthwhile contacting a freight forwarder to manage this process. • Road and rail transport (once product has reached country)

freIght forwarders Using a freight forwarder can alleviate many of the problems associated with direct exporting as they will arrange all of the necessary transport and documentation required.

SMEs are more likely to improve their export performance if they engage in active learning about their foreign markets

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likely to improve their export performance if they engage in active learning about their foreign markets. Second, SMEs should limit their export activities to only a few (and perhaps only one) export markets. Such a strategy that emphasizes learning about a few carefully selected target export markets enables the firm to concentrate its resources, develop expertise in the particular markets, build a strong distribution network, and, as a result, manage its export activities more effectively. Third, better-performing SMEs tend to be the ones that target more developed markets irrespective of distance and not the ones that sold most of their output to geographically and psychically close nations. Recent trends in globalization and improvements in telecommunication technology could explain why small firms perform better if they target more developed markets, regardless of geographic distance. MBr All Rights Reserved | Copyright 2015

references

concLusIon New exporters will exit a foreign market, if they discover that their profitability there is too low to justify the trade costs. In line with this scenario it has also been found that over 50% of new exporters drop out of foreign markets in the first year after entry, after which the survival probability increases steadily (the exit rate is around 15% after five years). When firms are uncertain about their profitability in foreign markets, they should start by exporting small amounts; conditional on surviving as exporters, their exports should then expand. Firms often engage in a process of trials and errors in foreign markets. Recent studies on exporting SMEs tend to focus their recommendations for managers of SMEs whose aim is to export around three major themes. First, SMEs are more

EDITOR’S NOTE David J. Dingli is the managing consultant of Resource Productivity Consulting Services, a management consulting firm specializing in strategic planning, Internationalization of SMEs, operational efficiency improvements and management development & training. (www.rpcsmalta. com). He is also an Assistant Professor with Maastricht University, MsM School of Management, The Netherlands and has lectured at MBA level in 29 countries throughout Asia, Africa, South America and Europe. He may be contacted at: djdingli@go.net.mt; or Tel: 99430196

Brouthers, L.E.; Nakos G., Hadjimarcou J., and Brouthers K. D.; Key Factors for Successful Export Performance for Small Firms Journal of International Marketing ©2009, American Marketing Association Vol. 17, No. 3, 2009, pp. 21–38 Conconi P.; Sapir A.; Zanardi M.;The Internationalization Process of Firms: from Exports to FDI, July 2014 Calderón García H., Cervera Taulet A, Tubillejas Andrés B.; “Marketing strategy in internationalisation processes”: an approach to the role of perceived problems Strategic Marketing, International Marketing; internationalisation problems; export public Programmes Internationalization Process of SMEs: Strategies and Methods. Department of Industry and Technology – Government of Western Australia; Exporting The Basic Steps – Getting Started Guide, 3rd April 2002 Peng Cui, A.; Walsh M.F.; Gallion D.; Internationalization challenges for SMEs and global marketing managers: International Journal of Business and Social Research (IJBSR), Vol.1, No.1, December 2011 Tsui-Yii Shih & Rumintha Wickramasekera; Export decisions within Taiwanese electrical and electronic SMEs: The role of management characteristics and attitudes; Asia Pac J Manag (2011) 28:353–377 Toulova, M; Votoupalova, M; Kubickova, L.; Barriers of SMEs internationalization and strategy for success in foreign markets; January 2015, International Journal of Management Cases;2015, Vol. 17 Issue 1 http://www.austrade.gov.au/Export/AboutExporting/Getting-ready-for-export

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Disease Control anD Prevention

Autism and Neurofeedback by Roderick Mallia - AAT Research

utism has been recognised for more than a century but for many years knowledge about the condition was sketchy. The turning point came in the 1960s, when the scientific community agreed that autism and schizophrenia were unrelated conditions. This highlighted the need for a proper definition, accurate statistics, and a true picture of the condition’s global impact. Recent data indicates that on average 1% of children are affected, with the condition being four times more prevalent in males1. Nowadays, we regard autism as a spectrum of developmental disorders, collectively termed Autism Spectrum Disorder (ASD)2, which affect social and communication skills and are characterised by various behavioural, physiological, and cognitive impairments. Many factors contribute to the onset of autism; current research suggests that autism is characterised by impaired regulation and communication between brain cells3, resulting in abnormal electrical patterns in the brain4,5. These abnormal electrical patterns in the EEG take the form of high delta waves that are normally present during sleep but that continue to peak during states of wakefulness in ASD, and in the suppression of alpha waves that are predominant in states of focus and relaxation6. Neurofeedback is a non-invasive therapy that can modify these unfavourable wave patterns into more desirable ones. Neurofeedback is centred on real-time gathering of neurological data, which is processed and fed back to the patient as a stimulus aimed at modifying the brain’s electrical pattern. Until a few years ago, the main drawback of neurofeedback treatment was the impracticality of using cumbersome instruments, such as the electroencephalogram (EEG), for data collection; however, advances in technology brought about portable, real-time EEG devices7. Interestingly, the world’s first patented portable sonified EEG neurofeedback device, Mente™, was created by a Maltese company, AAT Research, and has obtained FDA registration and CE Medical certification. Evidence shows that the earlier autism is identified, the more effective the therapy can be. Portable neurofeedback devices allow extension of treatment for ASD into the home of patients, and the prolonging of monitoring of the condition. Such early intervention can help children with autism build friendships and perform better at school, and eventually help them in their adult professional and personal lives. MBR US Centers for Disease Control and Prevention. (2014). Prevalence of Autism Spectrum Disorder Among Children Aged 8 Years - Autism and Developmental Disabilities Monitoring Network, 11 Sites, United States, 2010. Morbidity and Mortality Weekly Report 2 American Psychiatric Association (APA). (2013). Diagnosis and Statistical Manual of Mental Disorders (DSM-5). 3 Baron-Cohen, S. (2004). The cognitive neuroscience of autism. Journal of Neurology, Neurosurgery & Psychiatry. 75(7):945-948 4 Pop-Jordanova, N., Zorcec, T., Demerdzieva, A., et al. (2010). qEEG characteristics and spectrum weighted frequency for children diagnosed as ausitic spectrum disorder. Nonlinear Biomedical physics, 4(4). 5 Wang, J., Barstein, J., Ethridge, L.E., et al. (2013). Resting state EEG abnormalities in autism spectrum disorders. Journal of Neurodevelopmental Disorders, 5(24) 6 Teplan, M. (2002). Fundamentals of EEG Measurement. Measurement Science Review 2(2) 7 Attard-Trevisan, A., Cavallari, P. & Attard, F. (2013). A portable sonified neurofeedback therapy for autism spectrum disorders - an initial investigation. Journal of Neurological Disorders. 1(4):133 1

AAT ReseARch AwARds • World Intellectual Property Organization (WIPO) Award for Innovative Enterprises (2014) • Malta Innovation Awards: 1st Prize in 2014 and 2013, awarded by the Government of Malta • Malta eBusiness Awards 2013: Best Application, awarded by the Malta Communications Authority EDITOR’S NOTE Roderick has worked for a number of years in pharmaceutical quality control, and research and development, before moving on to work in research and development of food products. He holds qualifications in biomedical science, and in anatomy and physiology. Prior to joining the AAT Research group, Roderick worked as a full-time science lecturer at the Malta College for Arts, Science and Technology (MCAST). Roderick is passionate about the written word and has a strong background in writing, translating and editing medical, pharmaceutical, and scientific texts.

national

Malta Business Review

MHRA Believes That Control Of Air Malta Must Remain In Maltese Hands The Malta Hotels and Restaurants Association (MHRA) reiterates that Air Malta has been and will continue to be, although less than previously a key factor in the success of our tourism industry as well as the wider economy.

ome years back Air Travel between countries used to be regulated by Air Services agreement between individual countries which basically gave a duopoly to the National carrier of the countries concerned. With the coming into force of the freedom of the skies this cosy duopoly arrangement ceased as any EU carrier could fly from anywhere to anywhere within the EU. Consequently, the legacy carriers had to change their business model or face serious financial difficulties. Malta being an EU member was no exception and Air Malta failed to change its business model and has seen increasing competition from various airlines. Air Malta had to change or face the prospect of being driven out of business. The change that has happened at Air Malta has been too little and too late. It is clear that the market conditions for Air Malta have become increasingly challenging. The options are not many and these call for the implementation of specific measures which will definitely change the name of the game at Air Malta. MHRA asserts that, “the tourism industry expects and will keep supporting Air Malta management in taking the necessary decisions to ensure that our national airline keeps flying.” Towards this end, MHRA President Mr Tony Zahra asserts that, “it is critical that Air Malta should retain Maltese interests and should not be wholly sold off to a foreign entity be it an airline or an investor. A hybrid investor arrangement could also be a solution as long as Maltese interests retain control.” MHRA has called upon the Government which is the shareholder to consider adopting the BOV model as a solution. This means that

whilst Government retains a minority interest, say 25 per cent the other 75 per cent is sold to the Maltese investors and thus bring in commercial interests and management. Tony Zahra President of MHRA said that “losing control to foreign interests of Air Malta that still produces just under 50 per cent of the passengers to Malta, and the major transporter of air cargo to the island would effectively hand over the destiny of our most important industry to non-Maltese. That is something which MHRA cannot support.” Time is fast running out and decisions have to be made now.

About MHRA The MHRA has been established since 1958 and today represents the hotels and restaurants in Malta, collectively representing an investment of over Euros 1.5 billion and employing directly in excess of 17,000 people from an estimated work force of around 40,000 that work in the industry directly and indirectly. For the past 53 years the MHRA has represented the interest of hoteliers and restaurateurs on the Island acting as a lobby group to ensure that the policy decisions taken on the Island are in line with what the tourism industry needs to flourish. MHRA is a member of HOTREC and an affiliate member of UNWTO. MBR For more information please contact on 2131 8133/4 www.maltabusinessreview.net

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ERC StoRy

Understanding Turbulence: The Key To Weather Prediction After another anomalous summer, and with climate change still at the top of the political agenda, it seems that weather and climate forecasting have never been so topical. With the help of the ERC, Professor Sergej S. Zilitinkevich of the Finnish Meteorological Institute (FMI) is hoping to revise the way physics treats turbulence in the atmosphere and ocean – with important consequences for weather and climate modelling and prediction. “Turbulence is the key to the atmospheric ‘machine’,” says Prof. Zilitinkevich. “We cannot understand weather systems if we do not understand the connections between their parts.” According to Prof. Zilitinkevich, for almost a century, turbulence has been understood in an oversimplified form, based on an assumption that it could be split into two parts: ‘mean flow’ (organised motion which can be analysed using classical mechanics) and ‘turbulence’ (chaotic motion which must be analysed using statistical methods). This approach works well for engineering applications, but in the field of geophysical turbulence – such as climate and weather – these methods face increasing difficulties. In the atmosphere or ocean, the density of the medium changes with height. This leads to stratification, instability and phenomena such as convection. The classical paradigm has not been able to deal with these phenomena satisfactorily.

lead to better understanding of heat exchange between land, sea and air, but researchers will also gain insight into phenomena like shallow stable atmospheric PBLs which trap smog and pollution in the air above cities. Prof. Zilitinkevich expects his research to lead to radical changes in scientific understanding of weather and climate and in the success of forecasting models. “Within a decade, we should have incomparably better weather and climate predictions,” he says. “Microclimates, such as local climate change due to land-use change, will be modelled with greater accuracy.” The new theoretical framework will then be implemented in modern weather-forecasting and air-pollution models. Until recently, one of the biggest limiting factors in weather prediction has been the spatial resolution of the models, restricted by the power of supercomputers. But new improved physics means it is now the models that need to be revised. “We are co-operating with a very good network of operational weather-modelling groups around Europe,” says Prof. Zilitinkevich. “By the end of next year we hope to have some practical results from the Finnish Meteorological Institute – and we are also working with MétéoFrance and the Danish Meteorological Institute.”

New paradigm

In addition, the project is working to validate its theories with astrophysicists, helping to explain convection in stars and the sun, as well as accretion disks around black holes.

“We are now seeing a scientific revolution in this field,” says Prof. Zilitinkevich. “Atmospheric turbulence can now be seen as having three parts: regular flow, chaotic turbulence and self-organised structures.”

“We are lucky in that we can now combine two hot new areas of research,” says Prof. Zilitinkevich, “a new theory of turbulence and a new demand for turbulence applications in climate models.” MBR

Self-organisation leads to long-lived structures, such as convective cells or rolls in the atmosphere or ocean. This new understanding means that both researchers and operational modellers need to account for these different types of movements and their role in energy and matter exchange in the atmosphere and ocean.

project:

“Heat exchange between the upper ocean and lower atmosphere is controlled by turbulence,” explains Prof. Zilitinkevich. “Most thermal energy is in the ocean not the atmosphere, but we experience climate anthropocentrically as a characteristic of the near-surface part of the atmosphere, the atmospheric ‘planetary boundary layer’ (PBL).” His PBL-PMES project aims to revise thoroughly the physics theories used to model PBLs. Not only will this

Credits: European Research Council

PrinciPal investigator: Professor Sergej S. Zilitinkevich Host institution: Finnish Meteorological Institute (FMI), Finland Project: Atmospheric planetary boundary layers: physics, modelling and role in Earth system (PBL-PMES) erc call: Advanced Grant 2008 Project duration: five years erc funding: €2.4 million

higher education

Malta Business Review

Strengthening The Educational Sector by George Carol

Since its launch in Malta in 2014 as a fully NCFHE accredited institution, London School of Malta has added diversity to local MBA offerings. In this interview, Maurice Rizzo, LSCM’s Centre Manager has a clear message to students: to make the best and take advantage of the ever increasing diversity and choices in the range of institutions, programmes, courses and study options by selecting the right course leading to a successful and fulfilling career. MBR: Why should educational players, education institutes, higher secondary colleges and vocational colleges join the Careers and Education Fair? MR: It is a great opportunity for educators to meet potential students and make corporate contacts. The choices for postsecondary educational programmes are forever on the increase and the Fair offers students a one-stop-shop opportunity where they can assess the various options, obtain guidance and become better informed about their future educational and career choices. Such events create a forum for debating and assessing the current post-secondary educational programmes on offer locally, networks participants and strengthens the educational sector. MBR: Can you explain us the significance of London School of Commerce on the local education sector? MR: The London School of Commerce group of colleges specialises in the delivery and award of Masters (Level 7) programmes in collaborative agreements with reputable UK Universities. LSC’s core programmes are MBA courses which are delivered globally at 8 colleges in Europe (London – UK, Belgrade – Serbia, Yerevan – Armenia, Floriana – Malta) and Asia (Kuala Lumpur – Malaysia, Colombo – Sri Lanka, Bangalore – India, Dhaka – Bangladesh). Current global student population enrolled on MBA programmes is around 3,000. It has also introduced the highly reputable Anglia Ruskin University to Malta. LSCM will be recruiting hundreds of international students and this will put Malta on the global higher education map when, to-date, the default choices are predominantly UK and the USA. Malta will benefit from the presence of a higher education institution with nearly 20 years’ experience in the delivery of overseas post graduate programmes. MBR: How will your participation reflect on the fairground and what do you bring to this fair? MR: The London School of Commerce team has participated in the Careers and Education Fair with the scope of meeting potential students and networking with employers who might be interested in using its services for staff development. Our objective is also to advise and counsel under-grad students on their choices as they complete their first degree and might be seeking further studies. MBR: What kind of courses can we expect to see proposed by London School of Commerce in the Careers and Education Fair? MR: We currently offer full time MBA and part time MBA for executives under the ARU banner as a Level 7 accredited award,

and also full time and part time Post Graduate Diploma in Management as a London School of Commerce accredited Level 7 award. We also have accredited and will offer later in 2015: Master in IT, Master in International Hospitality Management & Master in International Tourism Management as a London School of Commerce accredited Level 7 award. We are also awaiting accreditation of Bachelor of Arts in Business Studies as a London School of Commerce accredited Level 6 award.

We must ensure maintenance of quality standards in all aspects of higher education programmes MBR: Why is building a strong network of contacts in the industry is essential? MR: It is vital as the main aim is to cooperate in positioning Malta on the international higher education map. We must ensure maintenance of quality standards in all aspects of higher education programmes, using all means at our disposal to attract foreign students to Malta and to raise awareness and advocate for our industry to ensure the right climate to develop higher education industry via secure admissions and immigration procedures. MBR EDITOR’S NOTE Maurice Rizzo is currently the Centre Manger at London School of Commerce Malta. Maurice graduated from the University of Malta, with an Honors degree in Mechanical Engineering and also read a Master in Business Administration. He held a variety of senior operations management positions in manufacturing industry, acting as Operations Director at Methode Electronics Malta Ltd. Maurice then joined EC English Group with initial responsibility for the group’s flagship Malta language school, elevated as COO with full operational responsibility for EC’s 17 schools in Malta, UK, South Africa, North America and Canada. Maurice has also served on the board of FELTOM (Federation of English Language Teaching Organizations – Malta).

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Motoring

Ira Losco Has Now Chosen To Drive BMW!

n Tuesday 5th May 2015 BMW Malta together with Muscats Motors launched the New BMW 1 Series exclusively to the Press. During this event, the main attraction was the introduction of, the number one music artist in Malta, Ira Losco- who has now chosen to drive a BMW 1 Series. BMW was ecstatic to be associated with such a successful artist! Besides her huge success from her music career, Ira has recently been named Goodwill Ambassador for Sustainable Development by the Mediterranean Commission for Sustainable Development. This connection from Ira’s commitment to sustainability is fitting to the new BMW 1 Series as this model aims to further reduce emissions and consumption, contributing to a more sustainable environment. BMW group has established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy. “Really excited about my brand new drive .... A BMW 1 Series! I am thankful for everything I have given the chance to do. Driving this little Beauty is one of them!! Thank you Muscats Motors and all the BMW team!” says Ira Losco. Almost two million units of the BMW 1 Series have been sold worldwide over the last ten years, and this latest edition is poised to set another new benchmark in driving pleasure in the premium compact segment. The new 3-door and 5-door BMW 1 Series models come with a comprehensively revised engine line-up and additional measures designed to reduce fuel consumption and emissions, allowing them to lead the way once again in the introduction of new BMW EfficientDynamics technology. The selection of engines available for the new BMW 1 Series model range has been enhanced by the addition of latest-generation petrol and diesel units with three and four cylinders. The torquey and high-revving engines with BMW TwinPower Turbo technology team up with rear-wheel drive – still a unique selling point in the compact segment – to deliver a suitably intense driving experience. Carefully considered updates to the exterior design of the new BMW 1 Series shine the spotlight on its sporting elegance and high-end presence. A newly designed BMW kidney grille and larger air intakes help to emphasise the car’s dynamic potential in familiar BMW style. Headlights with a significantly flatter geometry play a similar role. They come with LED daytime driving lights as standard and can now be specified in full-LED specification as an option. The rear lights have also been completely remodelled. They now display the “L” shape characteristic of BMW models and reveal LED-powered lights. Elsewhere, the sophisticated design of the upper centre console with the controls for the radio and climate control system is foremost in accentuating the premium ambience on board the new BMW 1 Series. An extensively updated line-up of engines and extended BMW EfficientDynamics technology ensure that the new BMW 1 Series model range once again sets new standards in its class by further reducing fuel consumption and emissions. BMW 1 Series customers will now be offered three- and four-cylinder power units from the BMW Group’s new engine family. The new efficiency pacesetter in the brand’s model range is the BMW 116d EfficientDynamics Edition with 85 kW/116 hp and average fuel consumption of 3.4 litres/100 kilometres (83.1 mpg imp) combined with CO2 emissions of 89 g/km in the EU test cycle. Advanced chassis technology teams up with rear-wheel drive and an almost perfect (50 : 50) distribution of weight between the front and rear axles to give the new BMW 1 Series unmistakable handling traits headlined by agility and dynamic excellence. MBR

This new and improved vehicle will be available from Muscats Motors this month. The starting price of the BMW 1 Series 5-Door is €24,550 which comes with a variety of options. For further information please visit our website http://www.bmw.com.mt or, contact the BMW sales team at Muscats Motors, the official BMW dealership in Malta, on 23264582 / email info@mml.mizzi.com.mt.

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airline focus

Emirates Group Announces 27th Consecutive Year Of Profit by Special Correspondent

The Emirates Group announced its 27th consecutive year of profit and steady growth across the company. The Emirates Group posted an AED 5.5 billion (US$ 1.5 billion) profit, up 34% from last year. “2014-15 was a turbulent year for aviation. The fall in oil prices provided cost relief in the second half of our financial year, however it did not offset the hit to our profitability caused by significant currency fluctuations, nor the hit to our revenue from operational adjustments in addressing the Ebola outbreak, armed conflicts in several regions, and the 80-day runway upgrading works at Dubai International airport (DXB). Achieving our 27th consecutive year of profit and one of our best performances to date, is testimony to the strength of our brands and business fundamentals, as well as the dedication and talent of our workforce,” said His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. “Every year brings a new set of challenges. In addressing these, we are always guided by the best interest of our people, our customers, and our long-term goals. As a Group, we keep a close eye on our top and bottom lines, but we never take our foot off the gas pedal when it comes to investing to enhance our business performance, and looking after our people. In 2014-15, the Group collectively invested over AED 20.2 billion (US$ 5.5 billion) in new aircraft and equipment, modern facilities, the latest technologies, and staff initiatives. This was the second highest amount ever in one financial year after last year’s record investment.”

balance sheet, solid track record, diverse global portfolio, and international talent pool,” said Sheikh Ahmed. “We will continue on our journey of steady and rational growth, and work even harder to meet and exceed our customers’ expectations.” In line with the overall profit increase, the Group declared a dividend of AED 2.6 billion (US$ 700 million) to the Investment Corporation of Dubai.

As a Group, we keep a close eye on our top and bottom lines, but we never take our foot off the gas pedal when it comes to investing EmiratEs pErformancE In 2014-15, Emirates increased capacity by 4.0 billion Available Tonne Kilometres (ATKMs). For the first time in the airline’s history, Emirates’ total passenger and cargo capacity crossed the 50 billion mark, to 50.8 billion ATKMs at the end of the financial year, cementing its position as the world’s largest international airline. Emirates received 24 new aircraft during the year, including 12 A380s, ten Boeing 777300ERs and two Boeing 777Fs, bringing its

total fleet count to 231. At 31 March 2015, Emirates had 59 A380 aircraft in its fleet, serving one out of every four destinations on its passenger network. Emirates launched five new passenger destinations: Abuja, Brussels, Budapest, Chicago, Oslo and four new additional freighteronly destinations: Atlanta, Basel, Mexico City, and Ouagadougou. It also added services and capacity to 34 cities on its route network. Despite various challenges including the 80day runway closure at DXB and suspension of services due to geopolitics in conflict zones, Emirates revenue reached a new record of AED 88.8 billion (US$ 24.2 billion). The airline recorded a profit of AED 4.6 billion (US$ 1.2 billion), an increase of 40% over the previous year’s results. Emirates carried a record 49.3 million passengers, up 11% from last year via efficient routings through its Dubai hub. Emirates SkyCargo’s tonnage strongly increased by 6% to reach 2.4 million tonnes. At the end of the financial year, Emirates SkyCargo freighter fleet had grown to 14 aircraft - 12 Boeing 777Fs, and 2 Boeing 747400Fs. The full 2014-15 Annual Report of the Emirates Group – comprising Emirates, dnata and their subsidiaries – is available at: www.theemiratesgroup.com/annualreport MBR

The Group’s employee base increased by 11% to over 84,000-strong representing over 160 different nationalities. “Looking ahead, the ongoing uncertainty for many currencies and economic markets around the world will continue to pose a challenge, as will the looming threat of protectionism in some countries. However, we move into the new financial year with confidence, and a strong foundation for continued profitability with our strong

HH Sheikh Ahmed bin Saeed Al Maktoum - Chairman & Chief Executive Emirates Airline & Group

Dining

Malta Business Review

Eating Out the Natural Way Conference catering doesnâ&#x20AC;&#x2122;t have to be pastizzi and pizza. From christenings and birthdays to business lunches and large events...The Grassy Hopper are now offering their scrumptious healthy food tailored to your specifications.

ll of the recipes from their kitchen are on offer, as well as bite sized portions as part of a finger food menu. The items range from mini veggie burgers to mushrooms stuffed with a basil and cashew cream sauce. Items such as salad boats with kale, carrots and cranberries keep the balance between raw and cooked foods just perfect, to ensure a filling meal that still leaves you light and energetic. The items are mostly vegan so they are also suitable for those who are lactose intolerant. The Grassy Hopper are also very adaptable to those with other allergies such as to gluten, sugar or even rarer ones such as those to night-shade vegetables. At The Grassy Hopper an effort is always made to source the highest quality ingredients with no added chemicals and sugars. The recipes are designed to include high quality carbohydrates and low glycemic index foods. Even the desserts are guilt-free! Made with raw cacao, coconut oil and activated nuts as the base and often sweetened with dates- the desserts are a natural way to satisfy that sweet tooth. The lunches, whether ready packaged or set-up as a buffet, are catered in fully compostable, sustainably sourced packaging, giving a natural yet elegant look to the set-up. With of course the added benefit of keeping the environmental impact of your meal to a minimum. MBR

If you are interested in having The Grassy Hopper at your event contact them for a menu or work with them to create a menu specifically for your event. www.thegrassyhopper.com; info@thegrassyhopper.com

Malta Business Review

Talking PoinT

The Superpower Of China Where Size Matters by Anatole Baldacchino

The focus of attention on the similarities between the Chinese economy and that of the western capitalist economies and the transition from a command economy to a market driven economy paved the way for lesser controls. The Shanghai Free Trade Zone is a perfect example indeed.

he state always enjoyed a pivotal role in the economy and is widely recognized as the “Guardian of Society”, amidst the continuous market reforms and albeit state continuation to play an extremely important role in the Chinese economy. In the late 1990’s of the Asian financial crisis, there was the threat of downsizing state companies to make them more profitable. State companies are best described as “Hybrid” as they combine the characteristics of both private and state companies. Instead of the policy “Grasping the big, letting go the small”, state owned companies merged and subsidized further to create larger state owned enterprises. And the result? In 2008 during the financial crisis, thirty per cent of the industrial and services sectors were held by big state owned enterprises.

Chery the car maker is constantly competing on the world stage with Japan and Western companies. The emergence of the Chinese model bears is witness of the continuous bold presence of the state in wide diverse ways and forms. State assists private firms and stellar owned enterprises and at the same time managing the process of the rise of the Remninbi at the world stage.

State owned enterprises had become enormously profitable with profits reaching as high as 150 billion in 2007. The Government’s strategy paved the way to create a strong group of internationally competitive Chinese enterprises, most of which were state owned.

State companies are best described as “Hybrid” as they combine the characteristics of both private and state companies

State Companies get help from state benefactors and also have flexibility to be managed same as private companies, i.e. they can raise capital privately. The Hybrid model works also the reversed way- that is largely private owned companies can receive assistance based on their ties with the Government. Huwei is a perfect example to this.

The Chinese model is that the state is destined to a powerful global influence especially to those countries in the developing world. In the wake of the western financial crisis and the collapse of the Anglo –American model paved the way for the Chinese model to be the natural choice and the cause for the transformation of the future economic debate.

The culmination of success was because unlike many western governments that kept state owned firms monopolised and over-protective, while on the other side, the Chinese Government had exposed such companies to fierce tests both amongst themselves and also amongst international firms.

The complete transformation that is happening right now in the world and before our own eyes, takes us to new unchartered territory. We can easily start to refer to these times into two main parts BC and AC – before China and after China.

In 2007 Shanghai stock exchange, eighty five percent of the capital raised was absorbed by the twelfth biggest offerings to state companies. Private investors owned about 28% of China’s largest banks. 64

Chinese state owned companies with a success history; we can mention Baosteel and Chinalco. Shanghai Electric was in strong competition with Mitsubishi to build new coal fired plants in Asia. In fact, Sarawak Energy of Malaysia chose Shanghai Electric to build the RM1.5 billion power plant in Balingian in 2014.

The success is attributable to the total population and the size of the Chinese labor force. China represents 25% of the total world labour force. When in 1950 China had found oil for the very first time, the state had sent 30,000 people from the military to assist in the digging of it’s the new oil fields and a further 3,000 former army

Talking PoinT

officers. USA commenced its take off in 1870 and they took 43 years to peak. China started its take off in 1978 and it’s estimated that China will peak in 2020. From 1978 China’s GDP marked constant growth of 9% per annum. In 1978 China had become one of the world’s most open economies.

The complete transformation that is happening right now in the world and before our own eyes, takes us to new unchartered territory The other effect is the continuous need of natural resources. This has a direct double effect of raising the world’s prices for raw materials and depleting the stock market prices. Many international firms had to relocate their manufacturing to China. Honk Kong, South Korea and Taiwan were indeed the net beneficiaries to these international gains. Manufacturers in China were in constant demand for expertise and capital intensive products from these North East Asian countries. Singapore and Malaysia on the other hands were the main losers in Asia with considerable gains in FDI going to China.

Malta Business Review

China had invested its trade surplus in various forms of US debt, including Treasury bonds, agency bonds and corporate debts, with direct effect of maintaining American interest rates at artificially low thus benefitting directly American consumers, especially mortgage holders. The cardinal question is transferring an amount from Treasury bonds into other currencies, does this makes more sense? This will certainly provoke the fall of the US dollar. However, this comes with a bill as the value of the Chinese holdings in dollar will also decline. China could not put all its eggs in one basket and this certainly was the reason for the birth of the China Investment Corporation with an initial capital of 200 Billion. The rest is history. MBR EDITOR’S NOTE Anatole Baldacchino started his professional career with KPMG. As a Certified Public Accountant he moved into the Private Industry and consequently set up his own Consultancy base in Malta. Today he advises Asian companies on matters relating to Foreign Direct Investments and Venture Capital Investments to Major European countries and North Africa.

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Malta Business Review

building industry

Diversity, Innovation And Art by Antoine Bonello

Resins floorings are a unique expression of art, they show the style, quality and taste of its designer.

Resin flooring can satisfy any design style demand. They are greatly recommended were a high standard of hygiene is required such as homes, hospitals, clinics, shops or any other premises. Resins can be used were resistance to oils and acids is a must, particularly in garages and industrial premises. Resin floors come in a variety of colours, they are effortless to clean, scratch resistant and visually appealing. Unlike other types of flooring, resin floors are seamless, therefore is easier and faster to finish adding a new dimension to flooring. Each and every resin finish is unique and can never be recreated, thus giving you the possibility to create an exclusive noteworthy environment. Resin floors are fully repairable, highly decorative and can be changed any time desired or recoated to meet future fashion trends. They can be applied directly on the existing floors saving you the hassles and costs associated with dismantling and removal of debris. Resin floors besides being esthetically pleasing are also certified for implementation in the health and food sector and were a high sanitary level is required. Walls can also be coated with resins, unlike other materials they are very hardwearing, washable and can withstand impacts. They are also ideal to create unique feature walls or bathrooms. Resin finishes are also ideal for applications on concrete surfaces subject to dusting and were a high level of traffic is required. We at The Resin and Membrane Centre use only NAICI products in order to make sure that each and every project is carried out at best. These products are proudly made in Italy using only high quality materials. Our personnel are experienced and qualified and have the ability to transform any environment in a unique artistic place. Resins are also used to waterproof roofs, terraces and balconies; they are UV resistant, elastic and resistant to heavy traffic and concrete movements. A very innovative resin product is the Guaina reflex; it is a fibre reinforced liquid resin membrane with thermal properties able to deflect 91% of sun heat and UV rays. The Malta Professional Waterproofing and Resin flooring Association in collaboration with NAICI International Academy makes sure that all its registered members have the criteria to implement the mentioned works with the necessary experience, proper product knowledge and trade requirements. The academy also the gives the possibility to new applicators to learn how to professionally apply, waterproofing, resin flooring and walls, the academy is renowned in Italy for its constant dedication in the trade Industry. MBR www.theresincentre.com 66

Before After

travel

Malta Business Review

Emirates Awards ROCS Travel Emirates has awarded ROCS Travel as the top Passenger Sales Agent in Malta for its performance in 2014. ROCS Travel is one of the leading leisure travel companies in Malta. Earlier this year, the travel agency was appointed Emirates Holidays preferred agent in Malta with a dedicated office in St Anne Street, Floriana. Emirates Senior Vice President Commercial Operations Mr Thierry Aucoc presented the award to ROCS Group Director Ms Rachel Vella in the presence of (from left) Emirates Malta Manager Mr Paul Fleri Soler and ROCS Group Chairman Mr Charles Vella. Emirates, global connector of people and places, had inaugurated destination Malta in March 1998 and currently operates daily scheduled flights between Malta and Dubai, with the option for travellers from Malta to stop in Cyprus. MBR

Malta Business Review

ELT IndusTry rEporT

FELTOM’s ELT Industry Report By Deloitte Shows “Healthy” Sector But more support needed for marketing destination, visas and incoming flights.

“

ur industry has been investing a lot to raise the standards to the level they are today. Our accreditation procedures are very stringent and are reviewed every year and all our member schools abide by the requirements of these accreditations. The increased contribution that the sector is bringing to the local economy warrants more support from all those stakeholders, especially Government, who can help this industry achieve even better results.” This was stated by Genevieve Abela, CEO of FELTOM during the presentation of the 5th edition of its ELT Industry Report compiled by Deloitte and based on thorough research amongst FELTOM’s 20 member schools. The report is considered as an excellent tool that shows a clear picture of the state of the ELT sector in Malta, its contribution in terms of arrivals in Malta purposely to study English and a generic profile of these visitors in terms of demographics. The report was presented to stakeholders and press during a presentation at the Radisson Blu Hotel in St George’s and was attended by Hon Edward Zammit Lewis, Minister for Tourism. The key highlights of the 2014 results show an increase in student arrivals of 3.4% compared to 2013, an increase in the average length of stay of 1.8% and a 5% increase in student weeks. In 2014, the ELT sector accounted for 12.7% of total tourist bed nights with significant contribution recorded during the months of February and March as well as the peak summer period. The sector reported significant 68

numbers from some of Malta’s top tourist markets such as Italy, Germany and France, but is also attracting students from nontraditional markets such as Colombia, South Korea, Brazil, and Poland.

OTHER HIgHLIgHTS In ELT InDuSTRy REpORT

“This year’s report confirms the importance of this sector and the contribution that it is giving to the Maltese economy given that it sees the involvement of around 2,300 gainfully occupied people as well as 1000 licensed families who host students in their homes. The sector is doing well and our member schools have managed to keep their operations healthy. Volume growth was registered thanks to a 5% increase in the number of student weeks. Student arrivals increased as well, up by 3.41% from 74,992 in 2013 to 77,550 in 2014,” announced Genevieve Abela.

- Whilst total revenue increased by 4.4% from

Genevieve Abela added that Government could support the ELT industry by commissioning a very much needed market competitiveness analysis which could help the sector understand better where Malta’s ELT sector stands in relation to its foreign counter-parts, with whom Malta is competing, and how Malta can attract a bigger share of the world market.

- Indirect costs (excluding payroll) appear to

“Pathway programmes at university level could attract students from big potential markets whereas faster processing of visa applications for FELTOM members and more advantageous routes and offers from our national airline Air Malta will put us on a higher playing field that would benefit not only all our member schools but would give greater visibility to Malta as a destination that will favour of the economy at large,” concluded Genevieve Abela. MBR

2013 to 2014, the total revenue per student week decreased by 0.6%. This drop in average turnover per student week contrasts with the shift in business mix towards more juniors as average revenue per week is typically higher on junior bookings.

- On the other hand, the continued trend

towards longer courses is a factor that impacts average prices as it is customary for language schools to offer discounted prices for longer bookings. The increase in relevance of the Italy as a source market could also have had an impact on average prices as Italy is known to be a price-sensitive market in this industry. have been contained in an effort to stem the erosion of profitability coming from the lower net revenue and increased direct expenditure and payroll costs. Marketing costs have decreased for the second year consecutively and the total marketing spend per student week reached a 5-year low.

- Accommodation cost per week increased

by 1.5% in contrast with the decrease in accommodation revenue per week 8.3%. The average margin on accommodation dropped from 27% in 2013 to 24% in 2014.

- Payroll was one of the most significant cost

increases reported by the language schools in 2014. Teaching costs per student week increased by 4.8%. This could be indicative of increased teacher rates as well as lower average numbers of students per class.

- Non-teaching payroll costs increased by

8.6% continuing the trend reported in 2013 and 2012.

wages report

Malta Business Review

Misco Publishes Salaries & Benefits Report For Financial Services Sector Malta’s Financial Services Sector Accounts For 14% Of Malta’s Gdp MISCO has just published its second edition of its Salaries & Benefits Report 2015 for the Financial Services sector.

The report covers 58 different positions across the sector’s different economic activities and analyses salaries and benefits for those working in accountancy and audit firms, banking & finance, insurances, investments and fund management companies. Of the 58 positions analysed in the report, 34 are new when compared to the first edition of the same report published in 2013.

important industry was a natural move for MISCO,” states Maria Zahra from MISCO.

Establishing remuneration packages is based on certain considerations which the organisation makes

Of these, 33% employ up to 50 employees, 38% employ between 51 and 150 employees and 29% employ over 150 employees. To further ensure a more accurate outcome, MISCO surveyed both Maltese and foreign companies. In fact 67% of the companies surveyed for this study are local ones whereas and 33% are foreign. Besides the top managerial positions such as CEO’s, General Managers, Marketing and HR roles, the report includes positions ranging from insurance underwriters, claims handlers, surveyors, branch managers, customer care officials, senior auditors, account managers, IT developers and system administrators to credit controllers and compliance managers, company secretaries, fund administrators, accountants, traders, risk managers and more.

“Whilst this report is compiled with the aim of providing organisations with a picture of the current remuneration packages being offered to different job positions in the local market, organisations need to be aware of the bigger picture when valuing jobs relative to others, both within the organisation and externally. Having said that, external pay relativities should not be the primary driver over internal pay relativities and remuneration packages need to reflect the organisation’s internal salary structure which is achieved through an updated job description detailing the main duties and responsibilities for a person to successfully occupy a position,” explained Maria Zahra.

“Malta’s Financial Services Sector accounts for 14% of Malta’s GDP and as such, is one of the main pillars in Malta’s economy. Therefore, dedicating a report to this

Maria Zahra also explained how remuneration packages also depend on the organisation’s turnover, value added and its position in the market. “Establishing remuneration

packages is based on certain considerations which the organisation makes. One of these could be that the supply in the market is high when compared to the demand for a particular category of skills. For this reason an organisation may decide to reduce the salary starting point since it is certain that the specific position will be filled. It also depends on where the organisation wants to position itself in the market. This is when organisations should seek to determine their pay structures by using important yardsticks such as job descriptions, performance management systems and job evaluation exercises,” added Maria Zahra. Graham C. Corbett, Operations Manager at HSBC Malta added “given the fierce competition for attracting and retaining key talent in the Contact Centre sector in Malta, the MISCO Salaries and Benefits Report has been a great tool in helping us gain valuable insight in how our compensation packages are positioned comparatively in the local market place. The reporting solutions offered by MISCO have added real credibility in how we align our overall reward strategy with reliable data points we can trust- something which we’ve never had before.” MBR

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Malta Business Review

heritage

The Minister for Justice, Culture and Local Government Owen Bonnici together with the Chairman of NEMO, Mr David Vuillaume

The Network Of European Museum Organisations To Hold Its Annual Conference In Malta In 2018 The Network of European Museum Organisations (NEMO), connecting over 30,000 Museums throughout Europe, will be holding its 2018 annual conference in Malta. This important event in the field of European Heritage will take place during Valletta’s tenure as European Capital of Culture.

The Minister for Justice, Culture and Local Government Owen Bonnici stated that Heritage Malta, through the new Museum of Fine Arts (MUŻA) project, will be proud to host the Network of European Museum Organisations. “Malta is relevant for Europe in various sectors, not least in the sector of Heritage and the Arts,” Minister Bonnici said. He added that this will also be a good opportunity to put MUŻA on the European map. Minister Owen Bonnici explained that the conference is a unique opportunity to showcase the ground-breaking work, methodologies and results which the MUŻA project aspires to achieve and consolidate. “This is an opportunity not to be missed because of the networking possibilities,” he said. The Chairman of NEMO, Mr David Vuillaume explained that NEMO is well conversant with the MUŻA project and explained that MUŻA is not only in line with the values which NEMO seeks to promote but also superseding them. 70

These values include: •

Presenting the story of art through selected objects and complementing comparisons. Audiences, particularly locals, shall be empowered to think and debate beyond the traditional art museum experience.

•

Empowering interface and networking between diverse communities and social strata on a local, regional and international level.

•

Becoming a self-sustainable and energy efficient, carbon neutral institution with potential zero carbon footprint and significant enrgy cost savings through carefully developed measures.

Dr Vuillaume added that the Network of European Museum Organisations is very excited to hold its annual conference in Malta not only because it will coincide with Valletta’s European City of Culture title but also to celebrate the opening of MUŻA. NEMO annual conferences happen in November every year and are attended by close to 150 delegates from all over Europe. MBR

Global Economic outlook

Malta Business Review

Deloitte Global Economic Outlook Q2 2015 The recently published Deloitte Global Economic Outlook, examines the economic situation and outlook in the world’s leading markets and the way in which recent months have seen the global economy rocked by a dramatic decline in oil prices, a dramatic increase in the value of the dollar, a slowdown in China, uncertainty in Europe, and anticipation of a shift in US monetary policy. Moreover, there has been a sharp divergence between monetary policy in the United States and policy in other major economies, contributing to exchange rate volatility. The result is a mixture of diverging performances: The US economy appears to be on a strong growth path, driven by

domestic demand but offset by weakening external demand; Europe is finally accelerating, but it faces continuing uncertainty about financial stability emanating from troubles in Greece; China is slowing, but the government is becoming more aggressive in attempting to stabilize growth; Japan is recovering, abut questions remain about nonmonetary policy; India is strengthening amid investor optimism; and Brazil and Russia continue to face serious challenges. MBR We invite you to read Deloitte Global Economic Outlook Q2 2015 on http://www2.deloitte.com/mt/geo © 2015. For information, contact Deloitte Malta.

ACHIEVING A PERFECT BUSINESS EVENT IS NO EASY FEAT. This is why we take pride in assisting you every step of the way and ensure that your business event does indeed become one to remember. Surrounded by breathtaking views of the Mediterranean Sea, the Paradise Bay Resort Hotel’s unique position, make it the obvious choice as an ideal venue for your next business event. The hotel offers a number of halls, suites and outdoor venues, including halls with sea views and natural daylight, which can host various tailor made functions, conferences, business meetings or other related events. The property’s extensive grounds and outdoor venues also make it the perfect venue for larger events. Our conference rooms, equipped with all requirements, come in a variety of sizes and guarantee efficient working conditions. Our food and beverage team can also assist you in choosing the right catering requirements to compliment your event.

Contact our events department now on 21 521166 or events@paradise-bay.com

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Malta Business Review

NEWSMAKERS

Fimbank Appoints New Chief Risk Officer FIMBank plc has appointed Ronald Haverkorn as Chief Risk Officer. Mr. Haverkorn is a senior banker with a proven track record in managing global portfolios, structuring complex risks, developing risk management framework and implementing risk control procedures. Ronald Haverkorn is a Dutch national and will be based at FIMBank’s head office in Malta. Mr. Haverkorn’s previous role was that of Executive Vice President of the International Credit Product Group in the International Group of Wells Fargo Bank, N.A, where he held posts in the USA, the United Kingdom and Germany over a period of more than 21 years. During his career he held various global positions in financial institutions and corporate banking with a focus on the emerging markets. His responsibilities at the company included managing financial institution’s global structured trade and non-trade credit product development, relationship management, credit origination, credit portfolio monitoring, mitigation, syndication, asset distribution, debt restructuring and various other managerial and strategic roles. During his career he also opened and had oversight over certain overseas offices while managing a global team. Commenting on this appointment, FIMBank Acting CEO Simon Lay stated that: “We are very pleased to have Ronald join the Bank’s executive management. He is an accomplished banker and risk professional, and brings to our Group a wealth of international banking experience and technical know-how. His skill-set will prove invaluable in our drive to restructure our risk management framework, which is aimed at building a stable platform for the organisation to achieve its performance objectives.” MBR

HSBC’s Digital Week Culminates With Giveaways For Online Competition

Ronald Haverkorn

Keeping Fit At KPMG

Mr Jean Paul Medati receiving a brand new iPad Air® 2 tablet for winning the ‘Crack the phrase’ competition

‘Think. Feel. Do. Digital’. That was the slogan for HSBC’s Digital Week, an event that showcased the power of the Bank’s digital innovation in making banking services more accessible and portable for customers. One such customer was Mr Jean Paul Medati, who, apart from benefitting from HSBC’s Mobile Banking service, was the winner of the HSBC Digital Week online competition in which participants had to discover a hidden phrase by following clues hidden on HSBC’s Website. Mr Medati was the first person to correctly find the phrase which was ‘HSBC Mobile Banking is Free, Secure and Convenient’ and won the iPad Air® 2 which was the prize up for grabs. “It is great of HSBC to come up with an innovative way for keeping customers informed of the Bank’s digital services and benefits. I liked the campaign and enjoyed participating in the online competition. Bringing home the prize was even more rewarding.” said Mr. Medati during the presentation ceremony held at HSBC’s Operations Centre. The prize was presented to Mr Medati by Mr James Allardice, Head of Business Performance, who said “The constant development in the Bank’s Electronic Banking systems has enabled us to roll out state of the art ATMs as well as online banking services such as our Personal Internet Banking and Mobile Banking app. These systems have made it possible for our customers to carry out the majority of their banking from anywhere and at any time of the day without having to step into a branch.” Throughout the Digital Week campaign gifts were distributed to customers registering for Phone Banking and Personal Internet Banking. Other customers also received demos on the freely available HSBC Malta mobile banking app that has been downloaded more than 20,000 times since its launch six months ago. MBR 72

On the 4th of May, KPMG Malta launched Health Week - a bid to raise more awareness on the need to eat smart and lead a healthy lifestyle. The motor behind this initiative was the Social Committee, composed of representatives from the different functions, who organized a week of healthy living activities. Presentations on Healthy Eating, Keeping Fit and Stress Management were held by leaders in these fields. The presentations provided insight into the detrimental effects of bad dietary habits while providing advice on ways to break the vicious cycle and embrace a well-balanced diet complemented by regular physical exercise. Circuit training sessions were organized after office hours and different types of fruit and smoothies were placed on all floors for staff to enjoy. The initiative was very well received by all members of staff at KPMG and there are plans to hold such activities more often. MBR

Media & PR

Malta Business Review

Brnd Wgn Organises Malta’s First Ever Behance Event For Local Creatives

eading creative agency BRND WGN hosted Malta’s first ever Bēhance Portfolio Review last weekend, adding a Maltese perspective to the annual global event organised in hundreds of cities worldwide by creativity megasite www.behance.net. Dozens of budding designers, illustrators, photographers, videographers and architects flocked to BRND WGN HQ in Naxxar on Friday to show off their work and receive professional critique, while getting a chance to meet other creatives in an informal offline space. Bēhance is the top international platform for creatives to showcase their work online. “We were incredibly impressed by the talent we encountered, especially from

very young designers who are just leaving MCAST or other institutions in Malta. The quality of work is really good and it was great that everyone responded so well to the feedback from their peers,” said Katerina Karamallaki, Creative Lead at BRND WGN. Four participants were awarded the much-coveted Bēhance coins based on the excellent presentation of their portfolios: Clare Brincat, Zack Richie, Mark Buttigieg and Ian Attard. “We are very honoured to having been trusted by the guys at Bēhance to organise this event here in Malta. The team and I have all had an awesome time hosting such a thriving community of creatives and we look forward to

organise more events of this nature in the near future,” said Peter Grech, BRND WGN Founder and CEO. “These events provide invaluable exposure for creatives, as well as the chance to learn new tricks of the trade from their peers and guest reviewers,” said Kris Vella Petroni, Director & Head of Creative at BRND WGN. The event was supported by BAKED, which baked special cupcakes for the night, Cisk, which provided the beer, and Viking Sign Studios, which created the event decorations. The event was held on May 15 during the international Bēhance Portfolio Review Week. For more information, follow the creative agency on www.facebook. com/BRNDWGN. MBR

Malta Business Review

NEWSMAKERS

0 To 100 Kph In Just 1.73 Seconds… With The Peugeot Vision Gran Turismo ! PEUGEOT Vision Gran Turismo unveiled for GT6™ video game . With a 1:1 power-to-weight ratio—875 kg and 875 bhp!—and the ability to go from 0 to 100 kph in just 1.73 seconds, PEUGEOT’s new supercar promises a unique driving experience for Gran Turismo 6 (GT6™) gamers exclusively on PlayStation®3. With more than 15 cars already featured in the Vision Gran Turismo line-up, the lion brand has risen to the latest challenge put out by Kazunori Yamauchi, the man behind the flagship driving game, who asked automakers to design a car specifically to commemorate the game’s 15th anniversary. PEUGEOT designers teamed up with PEUGEOT SPORT engineers to craft an outstanding supercar that has all the hallmarks of a high-performance endurance racer, brought to life in glorious high definition in GT6™. At first glance, the PEUGEOT Vision Gran Turismo reveals a striking monolithic silhouette sculpted to sweep aside air resistance, standing just 104 cm tall, with the notable absence of nearly any aerodynamic features. The body design alone is enough to effectively stick the car to the road. The central V6 turbo 3.2L engine, just behind the driver, feeds its 875 bhp to the ground via six-speed manual transmission and an allwheel-drive system comprising 22-inch alloys in the front and 23- inch counterparts in the back. This, coupled with the lightweight design— tipping the scales at just 875 kg!—and super-responsive steering makes this the ideal steed to saddle in taking up the GRAN TURISMO

challenge. Not to mention the car’s phenomenal acceleration, taking it from 0 to 100 kph in 1.73 seconds thanks to a power-to-weight ratio promising one horsepower for every kilo of kerb weight... Deceleration is equally impressive, with four ventilated BREMBO carbon discs (380 mm in the front and 337 mm in the rear). Virtual drivers will have the chance to take the PEUGEOT Vision Gran Turismo for a spin in the very near future on no fewer than 40 outstanding tracks with 107 layouts. Available exclusively on the PS3 in six colourways, the PEUGEOT Vision Gran Turismo will be released as a part of free update for Gran Turismo 6. Follow the #PeugeotVisonGT to stay up to date with all the latest news on the car and experience the exceptional. Stay tuned! MBR

Citroën C4 Cactus On Show At Milan Design Week

Barely a week after winning the title of World Car Design of the Year 2015 in New-York, Citroën’s C4 Cactus is confirming its conic automotive design status with two showings at the highly prestigious Milan Design Week, from 14 to 19 April. For its virtues of originality and modernity, it has been selected to take part in two of the show’s exhibitions: one at the Design Museum for the Art of Living project and the other at the Talent & Economy exhibition put on by the France Design project.

At Milan Design Week, the design magazine Living puts on an exhibition of cult contemporary design items. The purpose of this prestige event is to stimulate thought on new decoration and design languages. Citroën C4 Cactus fits in neatly with this important exhibition, especially since it draws overt inspiration from furniture design, with its sofa-style seating, and from the world of long-haul travel with its trunks and straps. For the exhibition it is showcased in a virtual garage that also emphasizes design, originality and advanced technology.

Both exhibitions spotlight the design and strong identity of C4 Cactus, plus its irrefutable ability to make a break from the established norm, with a uniquely intrepid modern style that merges creativity, practicality and aesthetics. From 14 to 19 April, visitors will be able to appreciate its sleek design, non-aggressive outline, original styling and practical innovations such as the Airbump®.

· Intrepid creativity à la Française, with the Talent & Economy exhibition

· Citroën at the Art of Living exhibition, a key Design Week event 74

Citroën’s C4 Cactus was selected by the VIA and 14 Septembre organizations to appear at Milan Design Week in an exhibition of items representing the best in French design, combining aesthetics and new usages. In Milan, C4 Cactus’s original and intrepid design will be flying the flag of Citroën’s extraordinary creative design talent. MBR

Construction System Construction System

EVG construction system, can be used to build: • Residential Units EVG construction • Villas & Bungalowssystem, can be used to build: • Residential • Multi StoreyUnits Apartments (up to medium rise buildings) • & Bungalows • Villas Extension to existing buildings and penthouses • • Multi OfficesStorey Apartments (up to medium rise buildings) • existing buildings and penthouses • Extension Industrial &toCommercial Buildings • • Offices Hospitals • • Industrial Hotels & Commercial Buildings • • Hospitals Agricultural Facilities • • Hotels Boundary & Retaining Walls • • Agricultural Road Walls Facilities • Boundary & Retaining Walls Economies • Road Wallsof Scale & Advantages During Construction: • Less Material on site Economies of Scale & Advantages During Construction: • Less Wastage of Material • on site and Equipment on site • Less Less Material Heavy Machinery • of Material • Less Less Wastage Man Power • Machinery and Equipment on site • Less Less Heavy Dust During Construction • • Less Less Man NoisePower During Construction • Less Dust During Construction Benefits: • Less Noise During Construction • Lightweight Construction System Benefits: • Faster Erection Process • Construction • Lightweight Energy Efficient Building System • Erection Process • Faster Monolithic Structure • Efficient Building • Energy Anti-Seismic Construction • Monolithic Structure • Thermal Insulation which satisfy 2020 EU Directives 2 • • Anti-Seismic Construction U-Value for EVG-3D-G Wall Panels – 0.7W/m K • • Thermal Insulation which satisfy 2020 EU Directives U-Value for EVG-3D-S Wall Panels – 0.4W/m22K K • • Fire U-Value for EVG-3D-G Wall Panels – 0.7W/m Rating of up to 4 hours 2 U-Value for EVG-3D-S Wall Panels – 0.4W/m K • • Acoustic Insulation • Fire Rating of up to 4 hours • Easy and Fast Installation of Mechanical and Electrical Services • Acoustic Insulation • Easy and Fast Installation of Mechanical and Electrical EPS –Services Expanded Polystyrene

Construction System

EVG construction system, can be used to build: • Residential Units • Vil as & Bungalows • Multi Storey Apartments (up to medium rise buildings) • Extension to existing buildings and penthouses • Offices • Industrial & Commercial Buildings • Hospitals • Hotels • Innovative • Thermally Insulated • Load Bearing • Light Weight • Fast Construction • Agricultura•l FaciInnovative lit es • Thermally Insulated • Load Bearing • Light Weight • Fast Construction • Boundary & Retaining Walls • Fire Retardant

EPS• Thicknesses – Expanded Polystyrene of 50 and 100mm

• Fire Retardant

Galvanised•welded-wire Cover Mesh Thicknesses of 50 and 100mm

• 50 x 50mm mesh x 3.0mm wire diameter

Galvanised welded-wire Mesh Galvanised SteelCover Diagonals • 50 x 50mm mesh x 3.0mm wire diameter • 3.8mm wire diameter

Galvanised Steel Diagonals Shotcrete • 3.8mm wire diameter

• Applied on-site using a shotcrete pump • Concrete thicknesses vary from 40mm Shotcrete up to 80mm • Applied on-site using a shotcrete pump • Concrete thicknesses vary from 40mm up to 80mm

JM Vassallo Vibro Blocks Limited JM Vassallo Vibro Blocks Limited

140125 JMV EVG-3D 230x280mm.indd 1

For further information kindly contact: JM Vassallo Vibro Blocks Limited, Mdina Road, Zebbug ZBG 9019, MALTA For information contact: Tel: further (+356) 2146 7421 - kindly Fax: (+356) 2146 5202 JM Vassallo Vibro Blocks Limited, Road, www. Zebbugjmvibro.com ZBG 9019, MALTA E-mail: evg3dmalta@jmvibro.comMdina - Website: Tel: (+356) 2146 7421 - Fax: (+356) 2146 5202 E-mail: evg3dmalta@jmvibro.com - Website: www. jmvibro.com

06/11/2014