ECONOMIC UPDATE THE
NEWSPAPER POST | JUNE 2013
F I M Bank - Building A Global Reputation COVER STORY Profile of a Trade Specialist
A dual interview with FIMBank’s President M. Lutschg-Emmenegger and Deputy President and Head of Banking Group Dr A.Eckermann p.6
SPECIAL FEATURE Joseph Muscat
We present an executive summary of Dr Muscat’s past and present, as well as a look at his meteoric rise to power. p.8
INTERVIEW OF THE MONTH
TALKING POINT
Amplifying Diplomacy
Embracing a Culture of Change
A unique take with Kathleen Doherty, the Deputy Assistant Secretary of State in the Bureau of European and Eurasian Affairs p.20
An exceptional interview with David Walsh, Chief Marketing Officer, Uniblue Systems Ltd. p.34
ECONOMIC UPDATE THE
NEWSPAPER POST | JUNE 2013
CONTENTS FEATURE STORIES 06 COVER STORY: PROFILE OF A TRADE SPECIALIST
F I M Bank - Building A Global Reputation COVER STORY
SPECIAL FEATURE
Profile of a Trade Specialist
A dual interview with FIMBank’s President M. Lutschg-Emmenegger and Deputy President and Head of Banking Group Dr A.Eckermann p.6
Joseph Muscat
We present an executive summary of Dr Muscat’s past and present, as well as a look at his meteoric rise to power. p.8
INTERVIEW OF THE MONTH
TALKING POINT
Amplifying Diplomacy
Embracing a Culture of Change
A unique take with Kathleen Doherty, the Deputy Assistant Secretary of State in the Bureau of European and Eurasian Affairs p.20
An exceptional interview with David Walsh, Chief Marketing Officer, Uniblue Systems Ltd. p.34
PUBLISHER John Formosa EDITOR Martin Vella JOURNALIST Rebecca Hansen SALES & PUBLICATION MANAGER Margaret Brincat GRAPHIC DESIGNER Berthrand Pisani COVER PHOTOGRAPHY Network Studios PRINTING Union Print Ben’s Good Cents:
A dual interview with FIMBank’s President Margrith Lutschg-Emmenegger and Deputy President and Head of Banking Group Dr Armin Eckermann about the bank’s reference shareholding and growth. 14 ANNIVERSARY: A GREAT MOTIVATOR Joe Gerada looks back at Thomas Smith Group’s 165th year discussing the brand value and financial strength which have earned the Group’s reputation as a leader in the shipping industry. 17 FOCUS ON POLITICAL SCIENCE: REFLECTIVE POLITICAL THINKING
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Exclusive Interview with world-famous FulbrightSchuman Research Scholar Professor J. Kevin Coder, from the Department of Political Science Western Michigan University. 26 SPOTLIGHT ON IT & LEADERSHIP: EMBRACING A CULTURE OF CHANGE David Walsh, Chief Marketing Officer, Uniblue Systems Ltd, goes behind the hype and into one of the best IT working environments in Malta.
“God heals, and the doctor takes the fees.” For magazine and website advertising enquiries please contact: margaret@networkpublications.com.mt or call on (+356) 9940 6743 For editorial enquiries please contact: martin.vella@networkpublications.com.mt The Economic Update is published by: Network Publications Ltd., Angelica Court, Giuseppi Cali Str., Ta’ Xbiex,
08 JOSEPH MUSCAT The Economic Update analyses the first 100 days of Dr Joseph Muscat’s premiership, and presents a specail feature on his meteoric rise to power.. 10 STRATEGY FOR GROWTH Kevin Buttigieg, CEO RE/MAX reflects on his steady rise on the corporate ladder and comments on his current role as chief executive officer for the local real estate franchise leviathan
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XBX1425, Malta Tel: +356 2131 6326/7/8 Fax: +356 2132 3432
Contributors: Ivan Bartolo; George Carol; Geoffrey Farrugia; Martina Urso; Maryln Custo; Patrick Hall; Peter Spiteri; Rebecca Hansen. Special Thanks: Alliance Francaise de Malte; BOV; BPC; Community & Media Relations Unit, Malta Police Force; Corporate Identities;Exor Group; FIMBank; JP Advertising Ltd; Microsoft Malta; US Embassy; Xara Lodge. Please feel free to email us with your viewpoint, whether you agree or disagree with the standpoint of the personalities we interview or the topics we focus on. Your opinion, contribution, concern and feedback on our articles and interviews are welcome. Please include full name, contact details
20 AMPLIFYING DIPLOMACY Kathleen Doherty, the Deputy Assistant Secretary of State in the Bureau of European and Eurasian Affairs, discusses bilateral relations and Malta’s exceptional role in a rare interview 30 EXPERIENCE, EXPERTISE AND EXCELLENCE Walter Cutajar outlines Avanzia Taxand’s success as a global player and the strategic advantages of utilising the company’s unique corporate tax and consultancy services.
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www.maltaeconomicupdate.com All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in The Economic Update are not necessarily those of the editor or publishers. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. The Economic Update is printed by Union Print and distributed free with The Business Weekly.
EDITOR’S NOTE Yes, it’s Monday, the beginning of the week. If you have a day job though, it’s likely the beginning of a long slog through the week, waiting for the weekend, then only to start the cycle again next week. Week in, week out, over and over again. But through our Mondays, we yearn for something to change. We keep dreaming of how we would like our life to be different. My fiance’ is a big fan of Taylor Swift. And, yes, I like Taylor Swift too. You listen to something enough times, and it starts to grow on you. For some reason, my taste in music is fairly eclectic–and here’s the embarrassing part– including Taylor Swift, Pink Floyd, Lighthouse Family, Jesus Jones, Led Zeppelin, Zucchero, Frank Zappa, Adele, The Clash, ELO, The Beatles, King Crimson, James Brown, and Maria Carey.
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So what does that have to do with business? Well, I took one of our contributors to lunch last week, and during our conversation she told me, “I’m always thinking three events ahead.” Now, my first reaction was that that sounded a bit pretentious, as if she just expects successful events happen for whatever she decides to do. But after a couple more bites of a sumptuous rib-eye, I had a different take, and here’s where things get interesting – she’s thinking beyond the present. Which brings me to my next point. Way back when I was at De La Salle College, I worked for two summers doing part-time office chores. This was back in the old days when actual living human beings like me had to put long yellow coded tapes in telex machines, swap them out, carefully storing them back in the library, and repeat the process for a whole day. I did this since the money was good, it was air-conditioned, and was way easier than another summer job I had, such as a beach attendant in the hot sun, getting constantly yelled at by ham-fisted seniors. So, yes, the mind-numbing tedium of the telex and library was a step up. In the business world something has to change. Making changes means entering the unknown. But when we take the first step toward realising our dreams, we are investing in a better future. This month we have invested a lot of time and research behind our main interviews featuring FIMBANK’s President Margrith Lutschg-Emmenegger and Dr Armin Eckermann on our cover story, covering the latest developments at RE/MAX, Avanzia Taxand and Microsoft, conducting sky-scraping interviews with Joe Gerada of Thomas Smith Group and Uniblue’s effervescent David Walsh. Our in-depth interviews continue to soar with Professor J. Kevin Corder, from the Department of Political Science Western Michigan University and climax with a one-to-one with US Deputy Assistant Secretary of State Kathleen Doherty, with whom we discuss U.S.-EU relations and the Transatlantic Trade and Investment Partnership.
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Wishing you enjoy reading the re-engineered June publication, we look forward to your feedback.
Martin Vella
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34 PRESENCE, INNOVATION AND PEOPLE
48 FIGHTING FOR YOUR RIGHTS IN EUROPE
We cast an eye over the IT software development industry and talk with Country Manager of Microsoft Malta Adrianna Zammit about what the Microsoft Innovation centre and the company’s vision for the future.
We interview new Member of the European Parliament for Malta Roberta Metsola Tedesco Triccas who addresses the key issues with verve and tireless commitment.
36 COMPUTER HACKING
54 A COMMITMENT TO EXCELLENCE
In this exceptional study, we examine why hacking is a disease, its implications and consequences.
A frank interview with Genevieve Abela, CEO of FELTOM, about their role in pioneering the emerging English language market in Malta
40 A HISTORY OF LOGISTICS DEVELOPMENT
62 REWARDING JOBS
During this intriguing interview, Kevin Attard analyses the success of Customs and Freight Agency Ltd, and presents his opinions toward the improvement development industry.
Are the rewarding jobs are those which pay well.? BOV Top Entrepreneur of the Year and 6PM CEO Ivan Bartolo makes an argument that while earning a good salary is important one must truly understand that what makes a job rewarding is in when one has a positive impact in people’s lives.
COVER STORY INTERVIEW
Profile of a Trade Finance Specialist by Martin Vella
In our cover story interview of the month, we get to meet with FIMBank’s President Margrith Lutschg-Emmenegger and Deputy President and Head of Banking Group Dr Armin Eckermann to discuss the bank’s results and strategy.
COMPANY DNA Name : FIMBank plc FIMBank is an international trade finance Organisation: specialist with an established reputation as a dynamic and customer-driven provider of trade finance solutions. Through its strong correspondent banking network and offices located across the globe, the Bank offers a unique environment in which trade finance opportunities are identified, innovatively structured and successfully executed. Line of business :
Trade Finance Bank
Number of Employees :
180 (Malta)
Main/Products: documentary collections, letters of credit, factoring, forfaiting, bonds and guarantees, commodity trade, counter/barter trade facilities, warehouse finance, ship finance, treasury management, syndications accounts in all convertible currencies, international payments Offices: Malta, London, New York, Singapore, Sao Paulo, Mumbai, Moscow, Istanbul, Cairo, Beirut, Dubai Establishment:
1995
Fitch Rating:
BB (Outlook Stable)
Total Equity:
US$ 126 million
Total Assets:
US$ 1.1 billion
TEU: Could you please provide a brief review of the FIMBank Group’s performance? MLE: We ended 2012 with a stronger balance sheet and very healthy capital and liquidity ratios. The FIMBank Group registered a 7% increase in its pre-tax profit of USD 8.84
million compared with USD 8.28 million in 2011. The Total Consolidated Assets as at 31 December 2012 stood at USD1.13 billion, an increase of 11% over end-2011 figures. The results for 2012 also show that the Group’s Operating Income increased by 4% over the same period in 2011, from USD37.40 million to USD38.72 million, while Group Operating Expenses for the same period decreased marginally, from USD28.92 million in 2011 to USD28.49 million. Given current market conditions, we are quite satisfied with our performance in 2012, although we naturally aim to improve all the time in all aspects of our operations and financial performance. TEU: How has the Bank continued to position itself internationally during the last few years? MLE: We have remained focused on Trade Finance, which is a banking business servicing the real economy, assisting customers with their trade finance requirements, be it international or domestic. We do this by providing customers with financing as well as assistance to mitigate trade-related risk,
while ensuring that any such operation is also less risky for the Bank. We also continued to pursue our factoring joint venture strategy and intend to expand our global network further in the coming years.
“In today’s financial markets, it is critical to have a strong reference shareholder with a good rating which facilitates access to funding and ensures a strong and solid equity base” TEU: Why do customers choose FIMBank for their trade finance requirements? MLE: Although the Bank offers a comprehensive range of financial services, our specialty is the provision of tailor-made trade finance solutions. Our employees have the relevant insights, language skills and cultural awareness, together with an in-depth knowledge of traditional and innovative trade finance instruments. This allows us to provide dynamic and tailor-made solutions to corporates and banks worldwide.
Editor’s Note
Margrith Lütschg-Emmenegger has worked in Trade Finance,with a special focus on Forfaiting and Factoring, for most of her professional life, first with Barclays Bank, and then with Midland Bank Aval in London. She then went on to join West Merchant Bank (now WestLB AG) where she had global responsibility for Forfaiting/Factoring within WestLB AG,which was then an international market leader in these products. Margrith joined FIMBank in 2003 as Executive Vice President, responsible for Business Development, and was appointed President in 2004 and appointed to the Board of Directors as Vice Chairman in 2012. Margrith became Founding Chairman of the Association of Forfaiters in the Americas in 1995. In 1999, Ms Lütschg-Emmenegger co-founded the International Forfaiting Association, where she served as Deputy Chairman until September 2003. She occupies several board positions in companies in emerging markets which focus on offering Factoring and Forfaiting services. Apart from writing numerous articles, Margrith is also the author of a book, published in 1998 by Euromoney, entitled ‘A Guide to Forfaiting’. Moreover, she has been a regular speaker on the subject for many years, travelling around the world explaining to audiences the benefits of Forfaiting and Factoring.
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COVER STORY INTERVIEW
Customers understand that they need the right partner to support their trading activities. Trade is not limited to a single region, and the fact that we are active in over fifty countries around the globe is an important part of our value proposition. Customers also choose us because we have an established track record and a reputation for understanding cultural differences and business practices. Moreover, we offer products which are fairly new to emerging markets but which are important for them to be competitive and contribute to global trade. TEU: Two Middle Eastern banks recently acquired a significant stake in FIMBank plc. What changes will this new reference shareholder bring? MLE: This is a milestone development for our Group which will allow us to accelerate growth and address the challenges in the market better. In today’s financial markets, it is critical to have a strong reference shareholder with a good rating which facilitates access to funding and ensures a strong and solid equity base. As a result of this development, FIMBank will become a more prestigious institution with greater substance, visibility and huge potential for growth. This will also benefit Malta by creating more jobs and further recognition of the Maltese financial sector throughout the world. TEU: What is in store for the future of the FIMBank Group? MLE: We will remain focused on highly specialised trade-related business, and the kind of complex commodity transactions that require a more personalised service and bespoke approach. We are also determined to continue expanding our global footprint further into Africa, Asia and Latin America. As explained before, the achievement of these objectives will be greatly facilitated by the introduction of the new reference shareholders, to the benefit of our customers, partners and shareholders. TEU: FIMBank is a Trade Finance Bank, why is trade finance so important in a global context? AE: Global trade relies upon accessible financing for trade transactions. Even in economic slowdowns, trade usually continues between people in different countries, albeit
its growth will take place at a slower rate. Trade is the lifeblood of the global economy and therefore a lack of adequate funding for trade would seriously impact the world’s economies. This is clearly a major concern for both governments and the private sector. TEU: What would you say is the main characteristic that has enabled you to fare so well during such turbulent financial times? AE: Our strong performance was primarily due to three factors: our focus on trade related business (financing real flows of goods!), our size, and our ability to continue identifying opportunities. When compared to the larger players plying their trade globally, we are in a position to react faster and be more flexible when a change in direction is required. The year 2012 demonstrated FIMBank’s ability to adapt and react rapidly in a consistently difficult economic climate.
“Trade is the lifeblood of the global economy and therefore a lack of adequate funding for trade would seriously impact the world’s economies” TEU: How would you describe, in a few words, the steps involved in structuring a “complex” trade transaction? AE: In a trade environment, complexity comes through the involvement of different countries, foreign business partners, and “stage providers” like logistic experts, surveyors, collateral managers, insurance companies, and, last but not least law firms writing legal opinions about the viability of the security structures wrapped around the financing. Indeed, we start off by first understanding our customer’s trade business. Once we have understood it, we need to follow them to key markets where they purchase, store and sell their products. By doing so we study the risks involved, building in risk mitigation measures and structuring the transaction to the customer’s and the bank’s satisfaction. We have built our expertise and competitive advantage in this field over the years, and we consider this capability to be our core competence, something we do exceptionally well and one which allows us to provide the funding needed at each stage of our customer’s trade cycle.
TEU: Do you also specialise in structured commodity finance? AE: Yes, as a matter of fact, structured commodity finance (SCF) has been a product we have been offering occasionally but we have decided to develop this product expertise to gain stronger access to commodity producers / exporters in developing countries. It is a financial tool designed for commodity producers and trading companies who require support with regard to their own risk and liquidity management. The value-added of SCF solutions is to provide maximum security to all parties involved into a cross border commodity trade transaction. In other words, the structure will balance the interest of the commodity producer, the commodity buyer as well as the interest of the financing bank. TEU: During the last year we have seen FIMBank launching innovative financial products such as the internet based Easisave, what can you tell us about this online savings solution? AE: Easisave is a quality banking internet based saving product that allows consumers to benefit from excellent returns on their saved earnings. The account opening process is simple and straightforward. Easisave allows customers to benefit from a leading interest rate of 2.5% per annum and immediate access to their funds. We recently introduced the Easisave fixed term deposits integrating it into our existing online savings solution and allowing customers to open fixed term deposits for periods of 3 months and going up to a maximum of 3 years. In this generally low interest environment savers are recognising that they can get a better deal if they move to an online solution. TEU For further information about the FIMBank Group please visit www.fimbank.com All rights reserved | Copyrighted
Editor’s Note
Armin Eckermann joined FIMBank in November 2008 to head the Banking Group of FIMBank in Malta. With over 20 years banking experience, Armin spent most of his professional life in Corporate and Investment Banking, where he led globally acting teams in the wider area of Structured Commodity Finance as well as in Trade Finance & Services. Before moving to FIMBank, he worked for Standard Bank. He has worked for WestLB AG in Düsseldorf, Germany, acting as the Global Head of Commodity Finance. Mr Eckermann had also spent considerable time establishing commodity business in Buenos Aires and Sao Paulo for WestLB. Moreover, he developed the commodity business hub in Singapore and was responsible for acquisition and the structuring of commodity-related financial transactions in the Middle East and Central Asia. Armin finally specialised in Economic Development & Growth and International Monetary Systems and left academia in 1991 with a Ph.D. in Economics and Master of Science in Policy Economics.
June 2013 | THE ECONOMIC UPDATE
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POLITICAL LEADERS
Joseph Muscat by Martin Vella
Dr Joseph Muscat was elected Prime Minister of Malta on 11th March 2013. Muscat has been leader of the Labour Party since 6 June 2008, and he was Leader of the Opposition from 1 October 2008 to 10 March 2013. Previously he was a Member of the European Parliament from 2004 to 2008. Here we present an executive summary of Dr Muscat’s past and present, as well as a look at his meteoric rise to power. Dr Muscat has one big thing going for him: voters seem to like him personally, and many remain loyal to him even if frustrated by the decisions following the hangover from the unprecedented electoral victory. His campaign proved to have enticed many of the ‘lost sheep’ from the labour supporters back to the polls, while also persuading undecided voters that Mr Gonzi was not the man they wanted to lead the country. The question we ask today is not whether our government is working, rather that it helps families find jobs with good conditions, provide care they can afford, and a retirement that is dignified. From our direct and personal contact with the Prime Minister we have noticed the hallmarks that Dr Muscat evidently portrays as he intends to move forward, showing wisdom, charisma and knowledge of local, commercial, and international matters. Dr Muscat has promised those of us who manage the public’s money will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can vital trust between a people and their government be restored. Dr Muscat is an independent-minded leader with an even-keel temperament, charismatic speaking skills and a knack for consensusbuilding. He’s also a talented, introspective observer and his values are strongly shaped by his expertise as a marketing intelligence specialist and by his Christian upbringing. While private by nature, Dr Muscat mingles easily with others, but is most comfortable addressing large crowds. He is known for being unafraid to speak and hear hard truths when necessary. Although armed with shrewd political sensibilities, Muscat
has attempted to underline decisions taken so far saying that “the government was determined to win the people’s confidence every day of the legislature”. Perhaps in the rush to get things done, or since the 36,000-plus majority might have gone to Dr Muscat’s head, or a mixture of both, a number of decisions have been perplexing to say the least and at times Dr Muscat has come across as slow to address threats or hostile elements. The latest example comes in the form of exPN stalwart and former EU Commissioner John Dalli, who’s appointment follows the government’s resolve to carry out wholesome reforms. “If nothing is done, the system will collapse,” Muscat said. However, this move can be interpreted in two ways and sheds light on Muscat’s way of doing things. Firstly, Muscat said it was health minister Godfrey Farrugia himself who suggested that Dalli should be invited to help the government in the health sector, since the former PN minister was the last health minister to lay out a clear roadmap in the health sector. This can be interpreted as a self-admission by the Health Minister that he is not up to the job and shows that the Prime Minister is not satisfied with the Health Minister’s performance, implying a vote of no confidence. Secondly, this may single that the present administration lacks qualified and experienced personnel to tackle key immediate priorities such as in this case healthcare. Opinions of the first 100 days of Joseph Muscat’s government will have no bearing on the futureand what will matter is the public’s communal judgement of his administration’s in five year’s time.
BACKGROUND Prime Minister Muscat was born in Pietà on 22 January 1974. He received his formal education at the Government Primary School in St. Paul’s Bay, Stella Maris and St. Aloysius’ College. He graduated with Honours from the University of Malta in Public Policy and later as Master of European Studies. In 2007 he attained a Doctorate of Philosophy in Management Research from the University of Bristol (UK). From 1992-1997 he was a journalist and eventually Assistant Head of news with a national private radio station. He was elected member to the National Executive of the Partit Laburista at the age of 21 and later nominated as Education Secretary of the Party. From 1997 to 1998 he was a member of the National Commission for Fiscal Morality. Dr. Muscat was also a market intelligence manager and investment adviser. He successfully contested the first European Parliamentary elections in Malta in 2004. In 2006 he was the recipient of the Outstanding Young Person of the Year. In 2008 he was elected as the Leader of the Partit Laburista. Dr Muscat is married to Michelle, née Tanti, and they have twin daughters, Etoile Ella and Soleil Sophie. 8|
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REAL ESTATE
Staying on Top of the Game by Martin Vella
Kevin Buttigieg, CEO of RE/MAX Malta founded the household real estate brand in 2004 together with his brother Jeff and father Joseph. During these past nine years the estate agency has consistently grown from strength to strength by registering year on year growth in both residential and commercial Sales and Letting since its infancy and has recently polled ‘No 1 most popular real estate company in Malta’. The Economic Update sits down with the intrepid entrepreneur who explains how the company continues to forge forward as the leader in the real estate Industry and why RE/MAX is one big happy family, built on innovation, education and depth, in experience and knowledge of the market.
BACKGROUND RE/MAX Malta franchise has been built on a strong foundation of a highly experienced management team, franchisees, partners as well as professionally educated property Sales and property Letting Associates. RE/MAX attributes its growth in market share to the investment it directed in technology, training and education for its agents, coaching local RE/MAX trainers by providing the tools and mentoring their people on how to best utilise their abilities. 10 |
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TEU: Despite experiencing a depressed economic environment, RE/MAX Malta has experienced tremendous growth in a relatively short time and you have been tabbed as one of the most influential persons in the industry, are widely considered an industry innovator, and have received numerous other accolades. What does that mean to you? KB: The saying goes “You’re only as good as the people around you”. I believe in this very much and although I am the Chief Executive Officer of the company, there are a number of outstanding individuals that have contributed to our success story. This is not a one-man show. It is my role to listen to these people and direct them through my vision. My greatest satisfaction is seeing our Associates become successful and grow within the company. Some will become top performing Associates; others may take the plunge under our supervision and become Franchise Owners. This always puts a smile on my face. As long as we keep our feet on the ground, keep on researching and
developing our understanding of our market and continue to drive the company to newer heights, I will be satisfied that our company has made a difference in people’s lives whether they have bought or sold a home through us, or have achieved success as a RE/MAX Associate. We take pride in being the industry innovators and will continue to set the standard in the real estate market in Malta. TEU: Can you reveal how RE/MAX has achieved such phenomenal success and how the Real Estate Market was transformed into an industry where consumers are better cared for and Associates can earn a living? KB: When we opened our doors in 2004 we were told that we were making a mistake. However year in year out we have proved our doubters wrong to the extent where we have become the market leaders in the industry in Malta. We have based our strategy on the business model which is successful in over 80 countries worldwide.
REAL ESTATE website for their property, higher rankings in the search results of our website and these properties are also syndicated through our various mini-sites, which are then directly channeled to our databases of buyers. The vendor benefits from numerous buyer leads interested in purchasing their property. The end result is that these properties are now averaging a selling time of 55 days. In a Buyer’s market, a property will only sell if it stands out and if it is priced at the correct market value.
RE/MAX residential luxury property with swimming pool at Tigne’ Point RE/MAX International and RE/MAX Europe spend millions of dollars on research and development of Associates in the form of training, the online RE/MAX University and Marketing, and we use these tools to the maximum. By having the highest quality of resources at our disposal such as the best trainers in the world, the most sophisticated technology suite to manage our property database and a brand such as RE/MAX, we were able to, in a very short period of time, implement processes and standards within our company which have ultimately set a benchmark in the industry today. An important contributing factor to our success has been the people that we have recruited. From our Managers, to Franchise Owners and the people in our various departments, to our Sales and Letting Associates, we have always been very careful on who to accept into our business and this has paid off. Our retention rate in this industry is second to none. You barely ever hear that someone has left RE/MAX unless it did not work out for them from a business point of view. Our customers reap the benefits from all that we do to ensure that our Associates are well educated, not only from a customer service point of view but also in understanding the real estate market that they are servicing.
“RE/MAX International and RE/MAX Europe spend millions of dollars on development of associates in the form of training, the online RE/MAX University and Marketing, and we use these tools to the maximum” TEU: There has been a phenomenal sales increase during the first five months of 2013 when compared with 2012 by a margin of 64%. This translates to a figure of €85 million. What do you attribute this amazing amplification and what are the implications of this upsurge? KB: Martin, our Sales Associates have the upper hand over the rest of the real estate market because we have an educational program, almost like a curriculum, whereby they find themselves learning new techniques and relearning old techniques on an ongoing cyclical basis. Our new agents
are mentored into the real estate market where they are provided the right training from the start, receive paramount ethical work procedures, and are even not allowed to meet a customer without having first gone through our Career Development Model. We plan to continue to press on in this way and make sure that our agents are on top of their game by being innovative, developing more training courses, opening more offices and recruiting more Associates. TEU: The Parliamentary Secretary for Competitiveness and Economic Growth Hon Dr Edward Zammit Lewis recently launched the much awaited Global Residence Programme that will replace the HNWI Schemes. How will the new programme incentivise those individuals outside the European Union and outside the European Economic Area who want to invest in Malta? KB: The Global Residence Program will definitely create a boost to the Maltese real estate market and also affect the economy in a positive way. The new structure has been well thought out and I believe that when it is implemented at the end of June, we will see a rise in demand from foreign investors. The removal of the bond of €500, 000 and the inclusion of the South region of Malta with the Gozo property price minimums will play a great role in incentivizing this investment. I feel that the new programme has effectively placed Malta and Gozo back on the map in terms of foreigners seeking new residences. I would like to take this opportunity to personally thank Hon. Dr. Edward Zammit Lewis for listening to us and understanding what the market needs. So far we are very pleased with this initiative. TEU: What are the benefits of the ‘RE/ MAX Exclusive Added Value Listing Package’ and why is this new way of selling property so valuable in today’s buyer’s market? KB: The Exclusive Added Value Listing Program took over eighteen months to develop and today we are seeing the fruit of this investment. The program is a modern way of selling a home whereby the vendor will contract RE/MAX to list their property on an exclusive basis. Unlike a Sole agency, our program guarantees maximum marketing exposure through various marketing channels, including our social media outlets. The vendor is supplied with a dedicated
TEU: What are your key priorities and extensive future plans to go Global, particularly to penetrate markets in China, South Africa, Africa and the Middle East? KB: The Global Residence Programme requires to be marketed correctly. We are at an advantage with our contacts overseas. The value added benefit of being part of RE/MAX means that it literally opens doors, automatically in any country we choose to market. In South Africa, RE/ MAX is everywhere and we also hold strong contacts based in that country which will bring clients right to our doors. China is rapidly growing in the RE/MAX world and we are in a great position to communicate Malta’s opportunities and lifestyle to their market. We are already doing quite well in the African market and are pursuing other avenues with our Middle Eastern counter parts. The new residency programme will help us market and promote Malta globally. From our end the sky is the limit. We need to get out there and continue working harder. TEU All rights reserved | Copyrighted
EDITOR’S NOTE With over seventeen years experience in the real estate industry in Malta, Kevin J Buttigieg is the CEO for RE/MAX Malta. He was educated in the USA and immigrated back to Malta at a tender age of 21. Kevin’s long list of personal achievements amongst others have been guiding the Malta Rugby Football Union as Chairman into the International Rugby Board and thereafter winning eleven straight matches, being nominated as Region of the year by RE/MAX International, and being ranked No 3 in RE/MAX Europe for commissions generated. RE/MAX Malta was the 45th member to join the RE/MAX International Network, which today has over 90, 000 associates located in more than 90 countries.
June 2013 | THE ECONOMIC UPDATE
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POLITICAL LEADERS
EDUCATION Muscat started to receive his secondary education at St Aloysius’ College, Malta. He received his tertiary education at the University of Malta and the University of Bristol, UK. He graduated Bachelor of Commerce in Management and Public Policy (University of Malta, 1995), Bachelor of Arts with Honours in Public Policy (University of Malta, 1996), Master of Arts in European Studies (University of Malta, 1997) and Ph.D in Management Research (University of Bristol, 2007) with a thesis on Fordism, multinationals and SMEs in Malta.
JOURNALISM
Born: January 22, 1974 (age 39), Pietà Spouse: Michelle Muscat Education: University of Malta Office: Prime Minister of Malta since 2013 Party: Labour Party Children: Soleil Sophie Muscat, Etoile Ella Muscat
Muscat worked as a journalist with the party’s radio station, Super One Radio (today One Radio). He later took on a similar role at Super One TV (today One TV)., becoming the station’s assistant head of news in 1996. He was also editor of the party’s online newspaper, maltastar.com between 2001 and 2004. Muscat wrote a regular column in l-Orizzont, a Maltese-language newspaper published by the General Workers’ Union and its sister Sunday weekly it-Torca, and was a regular contributor to The Times, an independent newspaper published in Malta.
POLITICS Muscat was as a member of the youth section of the Labour Party, the Labour Youth Forum (Forum zghazagh Laburisti) where he served as Financial Secretary (1994-97) and Acting Chairperson (1997). He later served as Education Secretary in the Central Administration of the Party (2001-2003) and Chairman of its Annual General Conference (November 2003). During the Labour government of 1996-98 he was a member of the National Commission for Fiscal Morality (1997-98). In 2003 he was nominated to a working group led by George Vella and Evarist Bartolo on the Labour Party’s policies on the European Union. This working group produced the document Il-Partit Laburista u l-Unjoni Ewropea: GhallGid tal-Maltin u l-Ghawdxin (‘Labour Party and the European Union: For the benefit of the Maltese and the Gozitans’) which was adopted by the Labour Party Extraordinary General Conference in November of that year. At this General Conference Muscat was approved as a candidate for the election to the European Parliament.
Joseph Muscat addressing Maltese Parliament in November 2011
Member of the European Parliament (2004-2008) Despite being staunchly against Malta’s entry into the European Union, Muscat was elected to the European Parliament in the 2004 European Parliament election being the Labour Party (formerly the Malta Labour Party) candidate who received the most first-preference votes. Sitting as a Member of the European Parliament, with the Party of European Socialists, he held the post of Vice-President of the Parliament’s Committee on Economic and Monetary Affairs and substitute member of the Committee on the Internal Market and Consumer Protection. He was a member of a number of delegations for relations with Belarus and with the countries of south-east Europe. He was also a member of the EU-Armenia, EUAzerbaijan and EU-Georgia Parliamentary Cooperation Committees. As an MEP he supported a reduction in the tax for Satellite television, the right for customers to watch sport events for free, and a number of issues related to environmental protection in Malta. He formed part of a team responsible for a report on the roaming mobile phone bills and sale of banks. Muscat resigned his seat in the European Parliament in 2008 to take up a seat in the Maltese Parliament and the role of Leader of the Opposition. Four months previously, he had been elected Leader of the Labour Party. Before his resignation his report proposing new regulations for the EU’s financial services sector was adopted by the European Parliament. On March 24, 2008 Muscat announced his candidacy for the post of Party Leader, to replace Alfred Sant, who had resigned after a third consecutive defeat for the Party in the March 2008 general election and a heavy defeat in the EU referendum in March 2003. Although not a member of the Maltese House of Representatives, Muscat was elected as the new party leader on June 6, 2008. In order to take up the post of Leader of the Opposition, Muscat was co-opted in the Maltese Parliament on 1 October 2008 to fill the seat vacated by Joseph Cuschieri for the purpose. The latter eventually took up the sixth seat allocated to Malta in the European Parliament once the Treaty of Lisbon was brought
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Joseph Muscat explains his proposals for the younger generation into effect in 2011. On taking up the Leadership post Muscat introduced a number of changes to the Party, notably the change of official name and party emblem. In the 2009 Maltese European Parliament Elections, the first with Muscat as Party Leader, Labour candidates obtained 55% of first-preferences against the 40% obtained by candidates of the Nationalist Party. Muscat contested Malta’s general elections for the first time in March 2013 and was elected in District 2 - Il-Birgu, L-Isla, Il-Bormla, Haz-Zabbar, IlKalkara, Ix-Xghajra at the first count with 13968 votes and District 4 - Part of Il-Fgura, Il-Gudja, Hal Ghaxaq, Part of Il-Marsa, Paola, Santa Lucija, Hal Tarxien at the first count with 12202 votes and 53% of the vote. On 11 March 2013 he was sworn in as Prime Minister of Malta. TEU Sources: Wikipedia; European Voice; The Times of Malta; Malta Independent; Joseph Malta li rrid nghix fiha - Cyrus Engerer.
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A GREAT MOTIVATOR by Martin Vella
Joe Gerada is a results oriented person and since joining Thomas Smith Group in 1985 he has consolidated the shipping and insurance services. Under his stewardship, the Group deversified and expanded significantly. In a one-to-one interview with Joe Gerada, we find out how their financial strength, coupled with their brand and reputation, have positioned Thomas Smith Group as a leader in their chosen areas of the shipping industry. TEU: What activities are you organising to commemorate the company’s 165th anniversary and tell us how critical is your corporate social responsibility programme? JG: The older you grow the less importance you give to your birthdays. I am referring to Thomas Smith of course not to myself! When we hit 150 years we celebrated with a very big bang. That was a major milestone. Simply being still around after so long is an achievement.
“If you ask me how we do it, I would say by sheer hard work, enthusiasm, client focus and we make it a point to enjoy achieving it”
Mr. Joe Gerada presenting the cheque to the Malta Community Chest Fund following the Christmas Charity Swim to the President of Malta HE George Abela
TEU: Thomas Smith Group was presented with a prestigious award by Maersk Line for being the “Strongest Brand Promoter in 2012” in the European Mediterranean region. What does this prestigious honour mean to you and your company? JG: It is the strongest and most welcome compliment Maersk Line could have given us. Firstly, Maersk Line is a world leader in its business. Simply working for Maersk Line requires high standards and high levels of competency. Being recognised for outstanding performance is an obvious superlative. One must also recognise that Thomas Smith was performing very well too for P&O Nedlloyd which was bought by Maersk Line in 2006 and as an immediate consequence we lost the business altogether. Maersk were not interested in considering the ex P&O Nedlloyd agencies. Eventually, in 2009, we were appointed agents and our performance was acknowledged in this way. It’s a great satisfaction for the whole of the Thomas Smith team. TEU: What makes Thomas Smith as a market leader in container liner shipping services in Malta?
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JG: You can measure that in several ways and find us winners. You can measure number of containers handled, market share and market penetration in a short time, which is what Maersk rewarded us for. You can measure client base, return business etc. If you ask me how we do it, I would say by sheer hard work, enthusiasm, client focus and we make it a point to enjoy achieving it.
After that anniversary none other seems so great even though we take nothing for granted. This year we are simply stating the fact that we are 165 years old and organising a number of modest initiatives to express our gratitude for achieving this, a blood donation initiative has just happened quite successfully. Our corporate social responsibility revolves around the way we act on an everyday basis. We act consciously, seriously, reliably; we are good social citizens every day, without much publicity; we just have values and do not need management text books to tell us what to do. Having said that we then also organise a major fundraising exercise over Christmas via our charity swim and we donate funds to the Community Chest Fund. Essentially we just go about our daily life as good corporate citizens.
TEU: What differentiates you to work towards greater competence and to focus on bringing further business opportunities? JG: Shipping is and has been our core business. Insurance is also a core activity to us but we know our market share is small and do not see it grow in the short term. We just aim to give a top service but know we cannot be market leaders in the short term. With shipping, we are very focused and aim high. The level of service we aim to give is very ambitious; we invest in rapport with clients and we believe clients find it pleasant to work with us. This, in addition to us being efficient, effective and provide value. I am sure we do not manage to deliver this to all our clients but we definitely try hard to do so.
Flashback: Group photo taken with Svetlin Peshev, Commercial Director of Maersk
SHIPPING
Thomas Smith Group Fleet Photo TEU: Thomas Smith Group is once again supporting the annual Mdina Grand Prix event organised by the Valletta Grand Prix Foundation? What significance does this event hold to the Group and to you personally? JG: This is just a bit of fun. The Mdina Grand Prix is an interesting event, it can and has been putting Malta on the international scene, this time via classic cars. On a personal level, I enjoy it too and have taken part in two editions so far. I intend to keep it up. It’s a good way to burn energy in addition to tyres. TEU: What is your role in leading Malta’s largest shipping company, representing the world’s largest shipping company, and what is the Group’s strategy of creating a balanced and stable role?
k Line in 2009, celebrating Thomas Smith becoming exclusive agent of Maersk Line
JG: Malta’s largest shipping company! Your words not mine. I would just claim we are in the top three positions in the various aspects of the business. My role is to keep a dynamic, young, enthusiastic team going. I keep that together and give it direction. The other team members do the difficult parts!
“So even when a facility is privatised on a national level, we need it to function well. I consider Malta Freeport as one of such facilities” TEU: How do you view the state of shipping in Malta and does the industry need to review and consolidate its position? JG: The shipping business in Malta will always be a by-product of a shipping facility Malta offers. By that I mean most shipping services calling Malta do not do so for the sake of the Malta market, that is too small. They do come here because of a facility Malta gives them. Therefore it is essential that Malta’s facilities function well. So even when a facility is privatised on a national level, we need it to function well. I consider Malta Freeport as one of such facilities. There are others in other shipping sectors which though privatised are not functioning as well. Every supplier of services in the local shipping community has a national responsibility besides his own business ambitions. Is Malta good news overall or is it not? When it’s not, ships just go elsewhere to another facility with a bigger market if that is relevant to them. We cannot afford to take anything for granted.
TEU: What is the most positive impact Thomas Smith Group have had in the development of shipping, transport and logistics in Malta? JG: We are just another player. Many serious high performing players make a good nation. There are others; we definitely have given our part. It is important that our competitors also understand that while competing we are also advertising for each other as ultimately the product is Malta. TEU: How has Thomas Smith Group been so successful in this challenging market? JG: Keeping things simple. No nonsense attitude; being focused; being a good employer; being focused; being a good employer; therefore attracting good employees. We also value enthusiasm and have no time for negative people, unless they are clients, of course! TEU: How important are leadership values in your career in which you started out modestly and worked your way up the ranks? JG: Destiny put me in the hot seat or the deep end, whatever you prefer to call it. Deep end is a great motivator as there are only two very clear options, swim or drown, and humans are very strong in survival potential. When I took over Thomas Smith it was very close to its bankruptcy. A great consolation was that if I failed nobody would really blame me as it could be said it was too late. The deep end was a great motivator, so I just got on with it. Leadership is important sure but the right followers are crucial too, so you have to choose, build and motivate a team.
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SHIPPING
INTEGRITY, INSIGHT, EXPERTISE AND EXPERIENCE
19th October 2012: Mr. Orazio Stella, Managing Director at Maersk Line Italia S.p.a. awarding Thomas Smith the award of Strongest Brand Promoter in the European Mediterranean region by Maersk Line to Joe Gerada
“Our Corporate social responsibility revolves around the way we act on an everyday basis. We act consciously, seriously, reliably; we are good social citizens every day, without much publicity” TEU: There are many employees who have been here for much of their careers. What is the secret to retention at Thomas Smith Group? JG: We enjoy it here, the ones who did not have left!
All hands on deck! Joe sailing together with friends
TEU: What is the biggest challenge for Joe Gerada? JG: Running a half marathon at less than 1 hour 40 minutes! Actually staying fit enough physically and mentally to keep on leading a young dynamic team for some years to come. TEU: What other challenges do you give yourself other than work and running marathons? JG: Sailing and the sea have been a great passion all my life. I have raced in many local and foreign sailing events and that
The story behind the success of Thomas Smith Group as we know it today, started as the brain child of William Jennison Smith well over 160 years ago. A family business with an exceptional grasp on market changes and industry realities, the company has evolved and adapted as times required, staying focused on its brand values of integrity, reliability and exceptional customer service; not a simple feat to achieve with the demands of the choppy and uncertain waters of the modern business world.
has been a great contributor to adrenalin rushes. It’s a great team sport and anyone who has taken part in the Malta Middle Sea Race would tell you it’s a great experience of team spirit and comradeship. Very relevant to management too. TEU: You have been in shipping your whole life. Where does the energy come from? JG: I must have inherited a restless spirit. I know that the minute life gets too settled I start to need a project and a challenge, and many times I create my own next headache. Shipping keeps on providing us with headaches; it’s a very volatile business. TEU All rights reserved | Copyrighted
One of the epoque racing cars participating in the Mdina Grand Prix
Editor’s Note Mr. Gerada graduated with honours in Economics from the University of Malta, and now specialises in Management and Business Development in the transport and logistics sectors. Before joining Thomas Smith, Mr. Gerada worked as Production Manager at Bortex an international textile company and as an Executive at Falcon Tours which specialises in the travel sector. Previously he served as a Director at a number of private and public companies.
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POLITICAL SCIENCE
Reflective Political Thinking by Martin Vella
EXCLUSIVE INTERVIEW – WITH J. KEVIN CORDER PROFESSOR, DEPT. OF POLITICAL SCIENCE WESTERN MICHIGAN UNIVERSITY
Dr. Corder is a Fulbright-Schuman Research Scholar in Belgium and Luxembourg. As part of the Fulbright Program, he is assigned to the Institute of Criminology at the University of Malta and is conducting research on the financial crisis in Malta and the United Kingdom. Prof Corder has a long and distinguished career in academics, politics and law. He recently gave this exclusive and revealing interview to The Economic Update’s Martin Vella.
TEU: How did you become interested in economics and politics, and why did you choose to focus on political science? JKC: I started out with the primary interest in economics and started to realise as I studied more and more that power determines a lot of the outcomes of economic transaction of people tending to get what they want and less power for the unconsequential people, and the remedy for that is typically politics. So looking at how the government tries to move and change the economic outcomes became interesting to me. There is a whole lot of different ways for that to happen; through taxes, through spending, through intervention in the economy, and through setting up of banks in front of the financial sector. So mostly I became interested in how the government uses its power to level the playing field of all kinds of different competing economic interests. Sometimes we understand the economic outcomes as being a natural market process that produces outcomes that are fair and desirable. When you peel back the layers a little bit you see the powers influencing the outcomes of those markets and the government’s attempt to kind of counteract that power is interesting and often controversial. Sometimes the same interests are behind the government and the markets, but sometimes each have different interests and that’s where you tend to see a little bit of a clash. I observed this type of conflict when I began to study how the EU or the local government would take on a banking sector and start to closely manage the actions of investment bankers, including the types of trades that they can pursue.
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That was unheard of ten years ago. After the financial crises we talked about what’s going to be a matter of routine. So the clash between finance and interest in government has become more dramatic and much more visible recently. That was behind the scenes, as before the financial crisis, and now it’s right in front of us. TEU: You have published work on the federal credit programs, macroeconomic forecasting, non-profit sector innovation, and monetary policy. What did you find to be most interesting from your research?
“When the economy is doing well, there are a lot of jobs, and labour has a lot of power, so workers can get a lot of return, and when the economy is poor and jobs are scarce, workers lose a lot of power”
JKC: I think what I have found most interesting about the research that I have done are the federal credit programs which in the US are the variety of government programs that try to get money to borrowers on reasonable terms, so we have interventions in the home mortgage markets to make it more affordable for home owners, interventions in student loan marketing which helps students borrow to afford their personal education in the US, small business loans, loans for technology, loans for energy products, and loans for a variety of things. Agriculture is another big one. So all of these specific government programs are engineered to make sure there are capital and credits available for a huge variety of people who are in need in the economy. And learning about all these is what has been very interesting to me. I use these situations a lot in my teaching in the day-to-day work that I do so that I learn to help students understand politics. Helping students understand how political affairs come into play, how the government can
POLITICAL SCIENCE
provide capital to ventures and to see the government’s role. You need to peel back and look at it closely. My job is to get students interested in politics, to get them to start following it. In the US my typical students are 18, 19 20 years old; the age where you are just learning about politics and able to vote. Therefore, I want to make them enthusiastic about it participating. And if they start to learn, they might not come to the same conclusions I do, but they can engage and attempt to influence what they are passionate about. Maybe some are interested in clean water, others in energy efficiency, environmental causes, or poverty. They will learn the way the decisions are made in their narrow area, and then they can influence it, if they want to. So it is mainly about triggering an interest and giving them the tools to use that interest to influence politics. I definitely consider politics as an art. When you really beginning to look at how the deals are negotiated, at politicians - they are all very sophisticated and complex- it’s an art. TEU: Many businesses employ illegal immigrants at a lower rate.As an American how do you few such situations whereby people are suffering injustices at work, yet they tend to better keep their mouth shut instead of being thrown out from work. JKC: When the economy is doing well, there are a lot of jobs, and labour has a lot of power, so workers can get a lot of return, and when the economy is poor and jobs are scarce, workers lose a lot of power. And employers get the upper hand. You have this ongoing employment problem in the European Union. However on the other hand in the EU the safety net and the level of general services is much higher than the US.
The real challenge is to create enough jobs to employ the growing labor force. In the US, debates over immigration reform predictably become more difficult when the economy is weak. But since immigrant labor and skills are critical when the economy is growing, so there is a delicate set of tradeoffs that need to be navigated. In this sense, job creation and job growth is a key challenge that faces the EU and the US. TEU: You are also the author of The Fed and the Credit Crisis, published by Lynne Rienner Publishers in 2012. What are some of the similarities and differences between the US Fed crisis and the EU crisis?
“There have been some disagreements in the European union with types of solutions regarding austerity vs stimulus” JKC: The EU crisis appeared to start a little slower and have a little more momentum, looking to be a harder crisis to solve. The US financial crisis emerged in 2007 and 2008. Then we had the government step in and buy some banks that were failing and put a lot of stimulus in the financial markets. It got some of those crisis indicators back to precrises levels and now the housing market is stabilised. So it looks like we’re out of the woods on the US side. On the European side the crisis kind of spread widely, capturing the governments’ attention more slowly. There have been some disagreements in the European union with types of solutions regarding austerity vs liquidity. Therefore, it’s been more ongoing and has caused a lot of stress in the sense that the jobless rate has continued to increase.
Since the crisis has been so long and so hard to manage in the EU, the reform has been more dramatic, the EU is taking more steps to reign in compensation, more steps to integrate financial services, and more steps to increase bank capital. In the US there is a flash of reform and then it kind of stops. The European have made a lot of progress and have an ambitious longterm agenda. The European financial architecture and financial system may be more stable, because of those dramatic reforms. So if that’s the case, then Europe is going to be poised in a position to capitalise on a stable European financial market. The EU and the US are going to both still be heavy weights in the international financial environment. TEU: What do you think is the role for political scientists in society? JKC: My role is to educate and interest young people into politics. Hundreds of students take my classes every year to learn about politics and policy.They need to be and can be effective participants in the whole process and understand that they need to vote and need to pay attention. If they care about something they need to find an interest group or form one. So that’s what I do, I don’t think I can influence public policy choices. Most of my books and my work are related to ideas about how to make things look better, but I don’t think that’s where the big impact of political science is. I think training teachers of young people to think about politics in a practical and reflective way is imperative. So if these young people leave my classes interested and thinking about politics, and reading the newspaper, then I think I’ve done my job. TEU All rights reserved | Copyrighted
Editor’s Note
Dr. Corder has published work on the federal credit programs, macroeconomic forecasting, nonprofit sector innovation, and monetary policy. Corder is the author of The Fed and the Credit Crisis, published by Lynne Rienner Publishers in 2012. He is currently working with Christina Wolbrecht (University of Notre Dame) on a project that uses ecological inference to investigate the voting behavior of women in the 1920s. Dr. Corder has a Ph.D. from Washington University. His research interests are politics and the economy (monetary policy, bank regulation, financial crisis and forecasting), American electoral politics and public policy.
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US - MALTA RELATIONS
Deputy Assistant Secretary, Ambassador Abercrombie-Winstanley and the Foreign Minister
Amplifying Diplomacy by Martin Vella
On an invitation by the US Embassy, we caught up with Kathleen Doherty, the Deputy Assistant Secretary of State in the Bureau of European and Eurasian Affairs. who shares her views and explains policies that have direct bearing on the U.S. and EU governments, the U.S. Congress, the European Parliament, EU member states, integration and on economic engagement. “Facilitator” of the Transatlantic Economic Council (TEC), Ms Doherty calmly displays why she is someone who is involved in all of these issues on a day to day basis.
TEU: Apart from the European Union crisis widely discussed, is there any other particular issue that you are concerned about? KD: Well, I think we notice some of the tension within the eurozone about the social unrest that happens in countries, some of the concerns about groups that are rising that are more extremist in nature. We don’t want to emphasise such concerns, but we look to our European colleagues and counterparts to help us understand what’s going on in European countries where you also see the rise of nontraditional parties - which sometimes are very good. It’s also a new element of the political system that we don’t understand yet. The high unemployment that you see is really a concern. We hear from our colleagues and partners about the “lost generation” of youth without any prospects of having jobs. We’re wondering what does it mean for a country, when we have a generation of unhappy faces confronting unemployment? These are the kind of things we are observing and surmising what the future for Europe would be. We see the integration of Europe as a great model for the
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world and the EU as the great model for the world. We often have trumpeted the creation of the EU as showing the way how parties that live together are able to develop a system of integration that makes the concept of conflict on the European Continent inconceivable and so the EU is a great model. When a model starts getting tarnished, you wonder what kind
“We see the integration of Europe as a great model for the world and EU is the great model for the world” of set-up it would give the country. You see what the prospect of being part of EU has done in terms of helping the Balkan countries to take on the rule of law and do some of the things that they needed to do. So it is a model that we continue to hope still stays strong; it is a really essential model I think for the world. We see some of the divisions and some of the fragmentation as normal. I mean these things happen, but we hope they will get resolved
over the course of the years. At the end of the day, Europe becomes a stronger entity than it is right now. TEU: Do you really believe that the EU is becoming stronger or weaker? Are there any cracks? KD: Yes, there cracks. We think it’s for Europe to decide what its future will be. We see it, as I said, as a great model. What Europe has achieved has been really significant, with so many social political parameters accomplished over the last 50 years, which has been inspiring. The future is in your hands right now, and this is really critical time for Europeans to decide what next ten to fifteen years will be. We obviously watch this very carefully. We want to be as helpful as possible, but it is not for the US to intervene in these issues. Certainly we can exchange ideas but we do not want to be seen as getting involved in internal European politics. That is not our role, but we certainly want to be as supportive as possible within the parameters of what we can do.
EDITOR’S NOTE
US - MALTA RELATIONS
Kathleen Doherty, a member of the Senior Foreign Service, assumed her duties as Deputy Assistant Secretary in the Bureau of European and Eurasian Affairs in September 2011. Her portfolio includes responsibility for managing relations with the European Union and Western Europe. Previously she served as the Director, Office of European Union and Regional Affairs. Prior to returning to Washington D.C. in 2010, she was Counselor for Economic Affairs in the U.S. Embassy in London. Her other overseas assignments include Economic Counselor in the U.S. Embassy in Moscow, Economic Officer in the U.S. Embassy in Rome and in the U.S. Consulate in Sao Paolo, and Consular Officer in the Dominican Republic. In the Department of State, she has worked as a senior watch officer in the 24-hours Operations Center; as a Special Assistant to then Deputy Secretary of State Strobe Talbott, and in the Offices of Investment Affairs and Development Finance in the Economic, Energy and Business Affairs Bureau. Kathleen speaks Italian, Spanish, Portuguese, Russian, and has been awarded several Superior and Meritorious Honor awards. She has a M.Sc from the London School of Economics and a B.A. from Colgate University.
TEU: Do you see a federal Europe in the next decade or so? KD: You know, I don’t know what the institutions will be. I mean, in the U.S. we think the institutions created in Brussels have facilitated our engagement with the EU - the creation of the European Parliament, the creation of the EU diplomatic service have helped us keep our commitment to work with EU, making it an even more effective engagement. Whether it’s going to be a federated union? - I would rather ask you what you think, because I am just an Embassy observer. We don’t know how the future will be here and I think most Europeans do not know what they want themselves. It is hard to know. I think we wonder about the generational change. There was such a commitment to the post World War II institutions. We hope that the next generation is as committed to the creation
of some things that would be a response [to current problems] - those are the things we ask ourselves. But we don’t have the answers, nor do we want to provide the answers. It’s really the answers that Europeans must provide on what their future will look like. TEU: Regarding the Free Trade Agreement between the US and the EU, optimistically do you think that this is the viable way forward? KD: It is the most ambitious and challenging agreement that both the US and EU will have ever negotiated together. Our markets each have more than 300 million consumers. In the area of investment as well, the relationship is so deep. We also have an economic imperative to do this agreement. We both have mature economies; there is only so much we can grow through domestic measures. The real way to
improve our economic prospects is through trade and investment, and that is why we have to do it. We also face the challenges of emerging markets that are based on different rules of law and different traditions. Our companies and our consumers would not benefit, and can only lose, if we don’t do an agreement. Now, that does not mean that this is going to be easy. We are not going in with a kind of naiveté as to how hard it may be, but I think there is a political commitment that does exist right now both in the US and EU. Our trade negotiators want to have it done and on a political level, the commitment is unprecedented. TEU All rights reserved | Copyrighted
DAS, the Ambassador, and the Finance Minister, with Embassy and MoF staffers.
June 2013 | THE ECONOMIC UPDATE
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INSURANCE
The benefits of Pet Insurance By Peter Spiteri FCII, MIRM
Pets are often considered to be members of our family. With their loyalty, cuteness, and displays of affection and appreciation, it is hard not to love them. However, as any pet owner can testify, when a pet is hurt or gets sick, the costs can amount to as much as they do when a human gets sick. For this reason, Middlesea Insurance has just launched a new and innovative product in the local market: Pet Insurance, which incorporates the necessary coverage needed for dogs and cats, in order to provide protection for pets and their owners. This insurance product provides coverage for veterinary care in case of illness or accident, theft or loss and expenses associated with the death of the animal. The basic coverage offers compensation of the value of the animal in the event of accidental death or theft, reimbursement of veterinary care costs caused by an accident, the costs of the pet’s stay in a kennel or cattery when the owner is hospitalised, the cost of advertising the pet’s loss in the media and reward in case the pet is recovered, legal expenses and third party liability cover. The policy also offers some optional coverage. The
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customer can opt for coverage of veterinary expenses due to illness. With this cover, Middlesea will reimburse the reasonable expenses incurred for veterinary fees such as tests, surgery, anaesthesia and hospitalisation in a vet clinic up to a maximum of €1,000 per policy period. Customers can also opt for cover whilst travelling with their pet outside Malta.
Pets that can be insured under this insurance policy include domestic cats and dogs aged between 3 months and 9 years, which are registered and microchipped. For Vet cover due to sickness the pet needs to comply with a timetable of vaccinations.
We spoke to a Middlesea Insurance representative about this product.
Yes, they can be insured upon presentation of a written declaration stating the approximate age by a Vet.
Why would a pet owner consider insuring a domestic cat or dog?
Are there any discounts for people who have more than 1 pet?
Insurance provides peace of mind to pet owners faced with high veterinary costs due to pet accidents and illnesses, which are somewhat common, as well as costs related to the pet’s death, theft, straying and liability for any damage caused to a third party.
Is there any difference in coverage between dogs and cats? No. Both dogs and cats enjoy the same coverage. Which pets can benefit from this insurance policy?
Can adopted pets, whose unknown, be insured?
exact
age
is
Yes, clients who insure more than 1 pet can get up to 10% discount. For more information, call Middlesea Insurance on 21246262, contact any of its authorised intermediaries or visit its website www.middlesea.com. Middlesea Insurance p.l.c. (C-5553) is authorised by the Malta Financial Services Authority to carry on both Long Term and General Business under the Business Act, 1998. COM NO 140613 760
PET
insurancE
nEW Pet insurance for Dogs & cats
Middlesea Pet insurance Policy Your pets provide you with unconditional love, security, companionship and loyalty. Secure their wellbeing with a MiDDLEsEa PET insurancE to help you take care of what matters most… the welfare and safety of your faithful friends.
if it matters to you, it matters to us. contact us on 21246262, visit www.middlesea.com or contact any of our authorised intermediaries. Find us on
Middlesea Insurance p.l.c. (C-5553) is authorised by the Malta Financial Services Authority to carry on both Long Term and General Business under the Insurance Business Act, 1998. COM 110613 JOB 37327 06/13
sOME KEY BEnEFiTs
· Theft and straying · Veterinary Expenses due to accident · Liability to Others · Legal Expenses
HEALTHCARE
Commitment and Integrity By Martin Vella
6PM UK’s Steve Wightman, recently sat down with The Economic Update to discuss 6PM in the UK, the importance of innovation in the industry, and the delicate balance among market segments in the field. Steve Wightman, Deputy CEO 6pm UK
CORPORATE BRIEF 6PM is an established IT and software solutions Group that today employs over 100 technology consultants in Malta, the UK and Macedonia. The principal activities of the Group consist in providing a range of IT based solutions and services which enable organisations and individuals alike to enhance and optimise efficiency. Through the various companies, 6PM Group today is able to offer end-to-end software solutions and managed services including Business Intelligence, Information Management and Electronic Document Management consultancy, Insurance and Financial software solutions, Health solutions and Agile solutions amongst others. TEU: What is the secret behind 6PM? SW: I believe our innovation is one of the key secrets of our success. We have been very good at looking at what somebody’s problem is and creating a solution to solve that specific problem. All too often companies produce an application or solution without really understanding what the underlying problem is. I think the other aspect at the moment is that hospitals in particular, which
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is one of our key markets, are under so much pressure to save money, the solutions we put together must help to either secure their revenue or cut their costs. TEU: What sets you apart and differentiates you from competition? SW: A lot of our competitors focus on the pure clinical systems in health and the market has been dominated by three or four large national solution providers. The problem with these is they are very big applications provided by billion dollar companies and they are not flexible enough to always give the client what they need. Our agility and the way we approach our projects allows us to take a system in a different direction at any point should the business needs require us to do so.
“I think we have got a very mature sales team and they have been together for quite a few years now working very closely together and understanding their market segments” TEU: How strong is 6PM as a leader on the market? SW: I believe in the NHS market we are remarkably strong given the size of the company. The solutions that we are providing right now, such as the HIV solution called ‘Climate’, is the only solution that has been approved by the
central governing body, known as the Health Protection Agency, as being compliant with the data sets that they require the HIV centres to produce. The reason we achieved this is because when we started to design the application we did so in conjunction with some of the leading HIV consultants in the UK and had representation from the HPA sitting on the product steering board.. The idea was to build it right the first time. Another solution we designed, which is attracting a lot of interest and selling well is the ‘iFIT’ solution which tracks medical records around the hospitals. This is a solution which people cannot get their hands on quick enough because it deals with the immediate problem of moving the physical files and assets which requires labour and cost. Ultimately, hospitals will scan their records into our document management solution but that will take 2-3 years to achieve. In the meantime, iFIT deals with today’s problem today. TEU: As a growing company with a broad focus on innovation, which broad spectrum of organisational segments do you address with your work at 6PM? SW: At the moment our main segment is healthcare and we are certainly looking at markets in healthcare. We have to remember that in the UK, although we are doing very well in healthcare, our market share is still very small. There are 400 NHS Trusts in the UKand we only have ten as customers.Therefore, what we are looking at in new markets, and only recently we have been approached by organisations in both Portugal and Ireland, is for
HEALTHCARE people who want to represent us and take our solutions to their home markets. We must not forget there’s a lot of low hanging fruit in the current market in which we operate. We are also looking to transfer current solutions across different industries in order to spread our risk. For example, our iFIT solution is very portable to other industries such as the law courts, where we can track case notes around buildings. TEU: What has allowed 6PM in the UK to consistently perform well even during these recent challenging times? SW: I think we have got a very mature sales team and they have been together for quite a few years now working very closely together and understanding their market segments. We kept focus on the right solutions and we also have a very good reputation in the health sector. We put a lot of focus on just the document management solutions in health three or four years ago, because that’s where everyone was starting to go. I wish we would have uncovered the problems with the business case much earlier. We were too slow in coming up with the iFIT solution. Had we done that three or four years ago we would have not faced some of the problems wedid in 2010. TEU: Is it important that the workforce mirrors the diversity of your customer base? SW: Yes, we don’t want to get too diverse in terms of technology, but yes we do have to be diverse with the people we employ. One of the advantages of working across different countries like we do with Malta, UK, and Macedonia, is you get people who live in different cultures and bring in different ideas and different perspectives on things. The work force is absolutely key to us, and their commitment to what we are doing is second to none. A lot of the innovation comes from the workforce, it doesn’t all come from the Board of Directors. TEU: How have you accomplished these good results? SW: Creating our own software has been absolutely key because we can wrap it around other vendors’ products and put us more in control., Having our own products also allows us to command maximum rates for both the software applications and services that we sell. 6PM UK and 6PM Malta are aligned in what we are doing. Most of the Maltese consultants work with UK customers and one thing we are consciously trying to do more and more is to bring Maltese staff on site to understand the customer better. It’s a different thing delivering a support service, for instance at St Georges Hospital, but if you know the hospital and you have seen it, and know the people there, delivering that service becomes a lot more meaningful to you. One of the reasons we came to Malta originally, when I worked with 6PM as a customer, was the synergies that Malta already has with the UK which makes it a very easy place to work. Your health system, your data protection laws, your
(From left to right) - Rick Devenuti President Information Intelligence Group EMC Corporation - Steve Whiteman Co-Founder of 6pm UK and is currently Deputy CEO of the Group - Chris McLaughlin VP Worldwide Channel and Alliances Information Intelligence Group EMC Corporation - Chris Preston Worldwide Industry Marketing Information Intelligence Group EMC Corporation
financial services rules and government works predominantly the same as the UK system. TEU: Is the UK still a key growth market for 6PM, and would you be making more investments in the future? SW: The UK is still a key growth market because it is such a big market for a company the size of ours. There’s so much for us to still to go after and to achieve. In terms of new products, yes we have to keep bringing in new products, probably one or two new products a year. I don’t think we can cope with more than that and do them justice. We already have plans for patients who register for treatment of Dementia, and that has an immediate opportunity of about 50 Mental Health institutes in the UK. In addition we are also considering doing what we have done with HIV treatment; we are looking at replicating that with treatment of Hepatitis C patients and we are in the process of raising funds for that with the pharmaceutical companies.
HIV selling very well, Trusts will have to use such a system to obtain certain data sets to actually get paid for the services in the very near future. Ours is currently the only system that is complaint with these new requirements and there are millions of pounds of revenue at stake for every HIV Treatment centre. I think my commitment, hard work and enthusiasm rubs off on a lot of people around me. An enthusiastic team is more important than anything. With the state of the economy and the state of our business, that commitment has been tested and you have to be dedicated and keep moving on to the next stage. We are in a business where we have got a lot of public shareholders and we have to remember these people invest their hard-earned money in us so we have a duty to always be fully committed to the business whilst also maintaining a high level of integrity. TEU All rights reserved | Copyrighted
EDITOR’S NOTE
“The work force is absolutely key to us, and their commitment to what we are doing is second to none” TEU: What kind of challenges do you face in your line of work? SW: I suppose the biggest challenge is having the right solution to solve the right problem but being able to give the customer tangible benefits for it. Too many business cases are too subjective as to whether we really achieve those savings. One of the advantages of iFIT is that it has very clear savings that can be implemented instantly the minute the system is switched on. With Climate-
Steve Wightman graduated from the University of Central Lancashire with a degree in Business Information Technology. He joined a large US IT manufacturer as a technical consultant and later in his career joined a large US Systems Integrator where he rose to the Board of Directors by the age of 30. Following his success in large organisations, Steve was one of the Co-Founders of 6pm in the UK and is currently Deputy CEO of the Group.
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IT & LEADERSHIP
Embracing a Culture of Change By Martin Vella
Uniblue Systems Ltd operates in a total compensation culture, which values training, development and experience as highly as salary. I had the chance to interview David Walsh, Chief Marketing Officer, who explains why Uniblue offer one of the best working environments in Malta and why this seems to have worked well with the company, ensuring they continue to appeal to the best individuals in the marketplace.
BACKGROUND Life at Uniblue is never short of events. Once a start-up company founded by three people, they are now a sizeable bunch and an established firm perched on a legacy of growth and continuous development. Uniblue have grown significantly over the last years and, although they are posed to grow even further, they promise to stick to what they do best: providing effective, easy to use software and good support clients can rely on. TEU: As one of the most successful ICT companies in Malta serving international markets would you wish to see more incentives that lead to the better exploitation of the marketing opportunities for Uniblue? DW: We sincerely believe the Maltese government is creating an excellent framework for software companies such as ours to invest in Malta. I have recently been in conversation with Marvin Gaerty the Maltese Commissioner for Taxation who is creating innovative ways to help all companies attract investment and people to the island. Long term this will really pay off for everyone in Malta.
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TEU: How does Uniblue create the best climate leading to quality job creation enhancement? DW: Uniblue has an in-house leadership programme, which aims to identify and nurture future talent. We invest heavily in training and development and encourage a large-number of employees to travel to relevant training across the world each year. Only by investing in individual skills and development will you be able to create a high value job environment for Malta and ourselves.
“Only by investing in individual skills and development will you be able to create a high value job environment “ TEU: What was the biggest challenge you faced and how did you overcome it when you became Chief Marketing Officer? DW: The biggest challenge upon my arrival in the company was the strained relationship with two global businesses, vital to our success. The key driver on success here was to quickly establish the issues at hand, identify what the partner
was looking for in terms of a resolution and then delivering on our promises to them. I can happily say our relationships with these big businesses are now in very good shape. TEU: What do you find as the most exciting part of your job? DW: It’s a clichéd answer, but I like everything about what I do. My favourite moment recently was unveiling the new branding to the company in Mdina. TEU: In the past months The Economic Update magazine profiled some of Malta’s most foremost business entrepreneurs and powerful leaders, highlighting how today talented employees are quickly climbing the corporate ladders. What can you say about your experience as a premier Chief Marketing Officer? DW: I am very impressed with the quality of the leaders you have featured; I would put my own success down to a couple of simple principles by which I approach my work: 1.
Be open to take on challenges or the jobs other people don’t want. Never say ‘that’s not my job’.
IT & LEADERSHIP
2.
3.
Understand the difference between management and leadership, one manages resources in an optimal way, the other rallies people towards a brighter future; know when to use each one appropriately. Above all, build and nurture relationships, learn to communicate at all levels of the organisation and treat others as you would wish to be treated.
TEU: I want to talk about the mindset of effective leadership. How has your mindset changed, your own and that of the senior leadership team, over this time? DW: I tend to read a lot of business books. Some of which have changed my view and direction on how to approach leadership. Here are some rules of leadership I have experienced over the past year. Influence: Regardless of level, true leadership is about influence and how you can get others to follow you. No influence = no leadership. Intuition: Don’t become trapped in analysis, paralysis. It’s best to make decisions based on hard facts, combined with an element of intuition.
climate it is important to address those cultural differences, in a think global, act local framework. I have been reminded of the biggest differences in culture when visiting the Far East, with Japan being one of my most rewarding, yet more difficult markets to understand. The culture there follows tradition to the letter and failure to understand or acknowledge that can cost you dearly in a business environment.
Editor’s Note
1.
Read up on the country through a book or Wikipedia before travelling.
within the business, as well as operations and aligning the business to
2.
Ensure you take with you a sufficient quantity of your own business cards as well as those of your manager and or colleagues in order to leave a calling card. Failure to have them can be considered rude.
3.
My top suggestion here is always focus on the area of agreement and work with people behind the scenes to establish buy-in. TEU: How would you define authenticity? DW: People can sense when you are authentic. If you are faking it, you will only be able to do it for a period of time, before the mask slips. There are two schools of thought in life, one is to focus on your weaknesses and improve them, the other is to play to your strengths and over-shadow the weaknesses. I am certainly of the second school of thinking and believe you need to be authentic, playing to your strengths in order to lead effectively. I was taught from a very early stage in my career to ‘be my own man’ and set out on the course that felt most natural, playing to my strengths. TEU: What are the main challenges of leading in a corporate environment, including across countries and cultures? DW: There are very few organisations today that don’t have an international footprint or employs people from various countries, background and cultures. To be successful in today’s business
Learn the location well before and after arrival. If you have time before the meeting, locate the offices well in advance, if possible the day before, to avoid being late.
4.
Read up on your hosts, their linked in profiles will offer insights in to where they have worked and where their interests lie, this makes initial introductions easier and finds common ground.
5.
Take elements from your own country if possible to leave as small gifts if you have not met with the hosts before.
6.
Identify etiquette for that country, such as Japanese hierarchy in meetings to ensure you follow the correct procedure.
7.
If you are unsure of what to do, ask a manager at your hotel for advice. They will be happy to offer help.
TEU: Do you view conflict resolution as a source of creativity and innovation? DW: Resolving conflict is not easy and probably the most challenging of any leadership position. My personal belief is we should look at human interaction and conflict management whilst at school, in the same way we teach geography or mathematics. Imagine how powerful it would be to empower a whole generation to be able to handle interpersonal relationships from such an early age.
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Taking business travel as just one area on which to focus to ensure success, my tips would be as follows:
Priorities: Activity does not necessarily align with accomplishment. Make sure you set priorities and stick to them, results will follow. Momentum: You have to have momentum in a business; it is a leader’s best friend. However it can work against you if the momentum is downwards.
At Uniblue by placing Innovation at the centre of our business, we have embraced a culture of change, of balancing core focus with a focus on the emerging and allowed ourselves to look outward for innovation and the world around us, rather than innovating purely against companies in our segment. TEU
David Walsh’s primary responsibility is the Sales and Marketing function the key strategic imperatives. David’s International experience stretches from the UK and US to Luxembourg and currently Malta, including tenure at eBay, PayPal, McAfee (Intel) and more recently with Uniblue. He has a significant background within software and ecommerce as well as fashion, logistics and retail. He has held executive level positions such as Senior Director at McAfee and Head of Marketing at PayPal UK. David is presently the Chief Marketing Officer at Uniblue Systems Ltd. Outside of work David focuses on small-size property development in a number of areas across the UK.
Ultimately managing or leading successfully in a multi-cultural environment comes down to your personal sensitivity to others. TEU: Your field, like many, requires a heavy focus on innovation in order to stay ahead. How does the Unable brand relate to innovation and how does it enhance it?
“To be successful in today’s business climate it is important to address those cultural differences, in a think global, act local framework” DW: Our business works on four fundamental principles, which we weave into everything we do, Innovate, Collaborate, Sustainable Success and Agility. Today’s business will not succeed without innovation. I guess that’s always been true, but it’s the speed of innovation that has changed. In the past product lifecycles could be measured in decades or years. Today a product lifecycle can be measured in terms of months or even weeks. What is a hit and relevant today, becomes obsolete once it is ubiquitous or considered passé. Innovation doesn’t only mean the products you create. It can apply equally as much to the way in which process evolves, how you go-to-market or even the markets and segments to which you sell your product or service.
June 2013 | THE ECONOMIC UPDATE
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Experience, Expertise and Excellence by Martin Vella
Taxand’s success as a global player cannot be attributed to a particular individual although credit has to be given to their chairman, Frédéric Donnedieu de Vabres, who together with a team of nine ex-colleagues set up Taxand to provide ‘Quality, Integrated Tax Advice Worldwide’. We talk with Managing Director Walter Cutajar about the Avanzia Taxand success story, who believes that the success is the result of a number of factors, mainly the unique culture and focus on doing things differently.
BACKGROUND As a boutique tax firm, Avanzia Taxand provides a comprehensive range of tax advisory and tax compliance services as well as a variety of specialist corporate services to its extensive array of international clients. Avanzia Taxand is ranked as a Tier Two Firm in Euromoney’s Corporate Tax Handbook. In 2009 and 2013 Avanzia Taxand was named ‘Malta Tax Firm of the Year’ by the International Tax Review whilst in 2011 it was named ‘Malta Tax Firm of the Year’ by Corporate International. Avanzia Taxand is now ranked as a Tier 1 in International Tax Review’s Transactional Tax Survey. Avanzia is a member firm of TAXAND, the global network of leading tax advisors. TEU: Avanzia Taxand has again been named Best National Tax Firm 2013 by the global publication International Tax Review. What does this honour awarded by such a global and prestigious tax publication mean to you and your company? WC: The award by the International Tax Review is probably the most prestigious one in international taxation and therefore we are extremely pleased that the ITR recognises our firm and the services we provide as being of a very high calibre. We are obviously aware that we provide quality tax services to our international clients and we pride ourselves in being leading tax advisors but it gives us satisfaction to hear it from clients and from bodies such as the International Tax Review. The award from the International Tax Review is prestigious because as stated in the press release we issued after the award ceremony, the ITR conducts a very rigorous assessment process and we were shortlisted with some of the Big Four audit firms on the island.
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We are pleased that as a young and small firm we have already achieved various milestones. We won our first award by the International Tax Review in 2009 after only four years of Avanzia’s existence. In 2011 we won a similar award from Corporate International. We have also been ranked as a Tier 2 firm In Malta for the last few years and always ranked highly in Transactional Tax and Tax Planning surveys conducted internationally. As a small team of dedicated tax professionals we are very proud with these achievements.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently” TEU: What makes Avanzia Taxand a premier service organisation? WC:We always strive to give our best and we focus a lot on giving timely, practical advice on a personal basis even though we are dealing with big organisations and multi-national companies. Indeed we are aware that clients not only seek a very good service but also want a personal relationship.They appreciate that we are concerned with their issues and we will do our best to deliver results and find pragmatic solutions to their tax problems or concerns. We give a lot of importance to quality. Indeed, Taxand’s motto is ‘Quality tax advice, globally’. A few years ago we changed our local tagline to ‘Experience. Expertise. Excellence.’ since we believe that within Avanzia Taxand we have these important qualities in providing assistance
and solutions to our clients. Reputation is ‘hard-earned’. As Warren Buffett said “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” And we are trying to do things differently! TEU: Taxand has over 400 tax partners and over 2,000 advisors in nearly 50 countries with a fee income in excess of €400 million. What is the success behind these statistics? WC:In order to put things into perspective, the numbers you quote have been achieved in just eight years. Taxand works with hundreds of corporations, from Fortune 1000 companies to midmarket nationals and on some of the biggest deals worldwide. Over 25% of the Global Fortune 100 are Taxand clients. Our clients tell us we are a responsive, practical, entrepreneurial, innovative, talented, trusted and integrated team of professionals working together across borders. TEU: Many large companies say that once they reach a certain size, it’s tough to maintain an entrepreneurial culture and to remain innovative because of the management layers that are created. Is that a concern? WC:As I already mentioned, we believe we have a unique culture and focus on doing things differently. We do not have the bureaucracy which is sometimes present in big organisations. We have an open communication policy. We share knowledge and use efficient tools to manage our work. We remain focused in providing the best to our clients, working within stipulated parameters since we believe that in the long term, this is the best strategy
SPECIAL FOCUS
TAX
Maryanne Inguanez, Director together with Walter Cutajar and Kane Bugeja
COMPANY VISION To be a respected and valued service provider to our clients. Avanzia Taxand vision for the future is supported by an integrated collection of core values and time-honoured business principles. Achieving that vision requires the highest levels of passion, performance and professionalism.
EXECUTIVE BRIEF Taxand Malta is Avanzia Taxand, a professional services firm that employs experts in finance, tax and law. Avanzia Taxand provide a comprehensive range of taxation and corporate services, back office operations and financial advice to a wide range of local and international clients. Avanzia Taxand specialise in international tax and treaty planning, tax consulting and tax restructuring; we work with a wide variety of clients including multinational and local companies, mid-market companies and large private entities. The firm also works with high-net-worth individuals and have a large number of clients operating within the financial services industry. Their approach is innovative and creative, being proactive and always looking ahead to ensure that clients are in compliance with legislation, to identify any potential problems and solve them, and to help clients take full advantage of new opportunities. Avanzia Taxand work collaboratively with clients to develop, plan and implement action plans that address challenges and opportunities effectively and efficiently.
We cannot ignore the threats as we grow bigger but we are not concerned with maintaining an entrepreneurial culture and to remain innovative. I totally agree that too many management layers is not ideal. Indeed, within Avanzia Taxand we have a very flat management style because we believe it give more satisfaction to our dedicated team of tax professionals and help us keep in touch with our clients in a very efficient and proactive way.
“Our clients’ value what we do and what we have to say. This does not mean that we have an attitude of know it all” TEU: How do you manage to build a strong reputation for providing practical tax advice and how do you addresses the strategic concerns of your clients? WC: In order to provide practical tax advice we have to keep abreast with tax legislation and developments not only in Malta but on an international level. We are not super heroes and therefore within Taxand we share knowledge and make use of tax tools but above all we keep the personal relationship. Clients are very demanding but we are willing and open to understand and share their concerns. If you feel that the client’s concern is also your concern and take the challenge on board willingly you will succeed. You may have heard us say that we are ‘passionate about tax’ and indeed we truly enjoy what we do.
TEU: How does Taxand ensure that clients adherew to best practice and to tax law as independent advisors WC: Clients see us as their trusted partners and this makes our life easier and our work more enjoyable too. Mutual trust is very important. The financial world and financial people, including tax advisors, are often seen unscrupulous and too business minded. As a professional, a tax advisor has to act and behave as such and also be seen as being professional in the true sense of the word. Our clients value what we do and what we have to say. This does not mean that we have an attitude of ‘know it all’. We are open to discussions in finding the best possible solutions. Together we manage to achieve a lot. TEU: During your tenure at Taxand, the growth has been fast and furious. What has helped this firm become so successful? WC: Growth is no longer a priority with Taxand. Indeed in the last Global Executive Committee we had in April of this year in New York just before our tax conference, growth was not even mentioned. However, we did mention that we have to continue to ensure that Taxand becomes the first choice for our people and our clients. On a local context we share the same vision. Growth is seen as a by-product and not the objective. Our objective is to remain focused on what we do and how to do it so as to ensure that we excel clients’ needs.
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SPECIAL FOCUS
TEU: As part of your external focus, your name has become synonymous with the firm. Does that raise expectations and make the business transactions tougher? WC: I consider the work we do as highly sensitive and demanding but with the right aptitude, attitude and approach it is doable. This does not mean that certain transactions are not tough but I like challenges. Taxation is a very dynamic thing and clients come up with different issues. I am not afraid of new challenges. What may be an issue is working within very tight, sometimes unrealistic, deadlines - not on one project at a time but on many projects concurrently. Clients expect that their issue is extremely important and therefore warrants immediate attention. The good thing about my work is that I truly enjoy what I do. TEU: In a regulated and competitive environment, how do you see the potential in things before others do?
You also mention regulated and competitive. I do not believe that our tax practitioners are highly regulated in Malta although most of them are regulated through our professions such as the accountancy profession and the legal profession. Competition is healthy and I am a strong believer that in international taxation and financial services in general there is work for everyone. We have to make sure to keep a very high standard and I believe that many firms providing tax advice have a very strong reputation and this is beneficial to all of us practising international tax and to our economy. TEU: What is the outlook for Taxand’s growth in Malta as well as international Avanzia Taxand is very positive about the future. This does not mean that there will not be any changes but I consider changes to be new challenges. We have concrete plans to continue to adopt new methodologies and adapt to a rapidly changing environment. However, our primary focus continues to be in providing quality, integrated tax advice both locally and abroad to our vast array of international clients.
we are working in a country where we have the
Taxation is on everyone’s agenda at the moment.The EU and organisations such as the OECD as well as various countries are continuously implementing rules and regulations in the field of taxation and this makes our work challenging. We are continuously studying new legislations and implementing new structures or restructuring existing ones to respond to new scenarios. As they say, it’s never a dull moment. TEU
support of many stakeholders.
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WC: We keep abreast not only with our legislation and tax treaties but also what’s happening in the EU and other jurisdictions. If there is a change in the legislation or tax policy which may affect our clients we have to inform them. We are also on the lookout for any changes which may offer
EDITOR’S NOTE
potential new work. I consider myself lucky that
MANAGING DIRECTOR OF AVANZIA TAXAND WALTER CUTAJAR
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TAX
AREAS OF EXPERTISE •International Tax Mergers & Acquisitions •Corporate Reorganisations •M&A Tax
ABOUT TAXAND Taxand provides high quality, integrated tax advice worldwide. Their tax professionals, nearly 400 tax partners and over 2,000 advisors in nearly 50 countries, grasp both the fine points of tax and the broader strategic implications, helping clients mitigate risk, manage their tax burden and drive the performance of their business. Avanzia Taxand are passionate about tax. The firm collaborates and shares knowledge, capitalising on their collective expertise to provide clients with high quality, tailored advice that helps relieve the pressures associated with making complex tax decisions. Avanzia Taxand are also independent— ensuring that you adhere both to best practice and to tax law and that they remain free from time-consuming audit-based conflict checks. This enables them to deliver practical advice, responsively. For more information visit our website: www.avanzia.com.mt
Walter Cutajar is the managing director at Avanzia Taxand Ltd., Malta’s leading independent firm of tax advisors. With over 20 years of experience in local and international tax, Walter maintains a reputation of adopting a commercial approach to his advice. Predominantly working with multi-national companies he has provided structuring and transactional advice on the full range of corporate tax activities, including M&A. Walter specialises in international tax matters with particular reference to holding companies, treasury and finance operations and IP companies. He is a fellow member of the Malta Institute of Accountants, a member of the Institute of Financial Accountants in the UK, a member of the Malta Institute of Taxation, a member of the Institute of Financial Services Practitioners, a member of the International Fiscal Association and for several years sat on various councils and committees in the fields of taxation and financial services. For a number of years he was an examiner in taxation with the Association of Chartered Certified Accountants of the UK. During his time as a Big 4 partner he was responsible for the firm’s tax department and a regular participant in international tax conferences, seminars and other events. He continues to give lectures and presentations and is the author of various taxation articles.
IT
Presence, Innovation and People by Martin Vella
We interview Country Manager of Microsoft Cyprus and Malta Adrianna Zammit about what the recent inauguration of the Microsoft Innovation centre means for Microsoft Malta. Adrianna plots Microsoft Malta’s vision for the future, saying that, “Microsoft is committed to playing our part to help narrow and close the digital divide, especially for youth around the world.” TEU: Microsoft Malta has recently inaugurated its Microsoft Innovation centre at Skyparks. What does this represent for MS Malta AZ: Everybody knows the giant leaps and advances that Malta has attained over the past few years, establishing itself as a center of IT excellence. In light of this, having a Microsoft Innovation Center in Malta is a milestone not only for Microsoft Malta but an important achievement for the country in its quest to further establish the IT sector as a main driving force for the economy. The significance of this milestone is further enhanced when one takes into consideration that there are only 110 MIC’s in around 40 countries round the world. The Microsoft Innovation Center is a tangible outcome of the collaboration that Microsoft Malta wants to continue to see and facilitate between government,
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academics and industry participants to generate innovative research, technology and software solutions. Microsoft’s plan to open an MIC in Malta were unveiled a year and a half ago with a focus on three primary pillars: 1) Enabling economic startup creation
growth
through
2) Closing the digital divide especially for the youth but also for all ages where applicable and 3) Propelling our country to be a leader in IT. Since the launch in February, our center has been overflowing with activities focused on supporting the community and driving the mentioned focus areas. These range from practical hands on technical training and certifications – to housing and mentoring new start up business – to running business courses for students to learn the importance of business values
and concepts. This includes workshops, prototyping opportunities, technical support and logistics to create innovative prototypes, collaboration with visiting experts to Malta. We have also been working closely with specific business partners to continue to support of the community and success of this initiative In fact we are proud that Malta’s MIC has already found great support from some outstanding partners that include BMIT, GO, PriceWaterhouseCoopers, Demajo Group, Newtech and the University of Malta. TEU: What is the most important aspect of your role as Country Manager? AZ: First and simply, people. We look to attract and motivate the strongest and brightest from throughout the world bringing us a diverse talented team. Through the team we have, my goal is to enable these individuals to not just run a business but
IT
COMPUTER HACKING
By Rebecca Hansen
Hacking is described as a negative aspect of ICT’s impact on the information society. We describe how ICT has brought this about and what society is has done in response to it.
BACKGROUND Illegal computer hacking poses an increasing threat as we rely more and more on computer technology. Hackers are responsible for identity theft, government and industrial espionage and also of illicitly revealing people’s private information. As illegal computer hacking becomes more prevalent, lawmakers struggle to pass laws meant to deter would-be hackers and punish those guilty of illegal computer hacking.
SYNOPSIS Hacking has been and still is a disease different societies suffer from. This presentation aims to provide the reader with knowledge regarding the effects hacking causes to our social order, and how society responds and tries to solve or minimise those effects. Different issues regarding hacking may be discussed, such as the motivations that are behind guiding hackers who were at first computer professional to perform unauthorised activities, at the same time a discussion about the types of attacks can be found. I guess the most important factor to examine is to view hacking from a victim’s perspective and also from a hacker’s psychology. Societal response to hacking attacks lacks till this moment the ability to stop or completely prevent attacks from happening because as long as security tools are developed, more sophisticated hacking attacks are invented. That is why we should start to think about hacker’s psychology as the main way to prevent and stop attacks by understanding their needs or desires. In the victim’s standpoint, hacking is a serious invasion of one’s own privacy and is tantamount to someone breaking into
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one’s own home to steal personal and confidential information. Computer hacking is a crime and an offence that emanates from malicious minds with deliberate wicked and cruel intent. From the hacker’s psychology the hacker is someone who seeks and exploits weaknesses in a computer system or computer network. Hackers may be motivated by a multitude of reasons, such as profit, protest, or challenge, and at times may also be defined as suffering from mental paranoia, obsession, mistrust and fear.
INTRODUCTION The Oxford English Dictionary defines hacking as “cut or chop roughly; mangle: cut (one’s way)”… to its present definition
as “gain unauthorized access (to data in a computer)”. Banks (1997:11) defines hacking as “something that boring mainframe computer operators did to improve performance and battle boredom.” Here banks focus on boredom as the reason of hacking. A more technical definition of hacking according to Digital Guards data base (2001) is “unauthorized use, or attempts to circumvent or bypass the security mechanisms of an information system or network.” Darlington (2001) believes hacking is not limited to accessing data or information but also includes an attack on the privacy of all people. Almost all different opinions agree on the illegality of hacking. On the other hand the word hacker is the agent of hack or hacking and it was
IT
enforcement continue to fight. Because email is considered private information, email hacking can be a criminal offense and is defined as unauthorised use of an email account.
to prison for multiple offenses involving multiple victims and damage sustained by the victims.
WORKPLACE SABOTAGE
The Cyber Crime Unit is a specialised section within the Malta Police Force setup in 2003. Its primary role is to provide technical assistance in the detection and investigations of crime wherein the computer is the target or the means used. The Cyber Crime Unit is made up of police officers who are trained in the investigation of crimes that take place over the internet or through the use of a computer.
Some of the most grievous cases of email hacking occur in the workplace. Oftentimes the motive is revenge and the hacker is a recently terminated employee. These cases can also be the ones law enforcement chooses to prosecute because of the evidence left behind.
“Hacking is a serious invasion of one’s own privacy and is tantamount to someone breaking into one’s own home to steal personal and confidential information” Workplace hacking is a deliberate action aimed at weakening another entity through subversion, obstruction, disruption, or destruction. In a workplace setting, sabotage is the conscious withdrawal of efficiency generally directed at causing some change in workplace conditions.
GENERAL SENTENCING GUIDELINES
defined as a person who enjoys accessing files whether for fun, imposing power or the interest related to the accessed files or data according to Taylor (1999). While Marotta (in Taylor, 1993) has a negative view of the hacker as a data lord, a barbarian who takes what he wants. Himanen (2001) defines hacker as any person who performs illegal actions, whether they were related to computer or not which means the usage of a device apart from its functionality. Seems hacking according to Himanen is related to any illegal or unauthorised action. Seebach (1999). Initially a rare annoyance, as the Internet has grown, email hacking has become a more common problem and one that both Internet service providers (ISPs) and law
Other hackers want to steal information, crash networks and create problems. Malicious, unapproved hacking brings legal action against perpetrators. As with most legal action, the severity of the offense and the past record of the hacker may help determine the legal action taken against him. The financial penalty to a hacker depends on the loss to the victim and what the hacker has gained. Even though they are perpetuated online, the most blatant email hacks can be prosecuted with theft, fraud, destruction of property, forgery and even counterfeiting laws. While the most common penalty is loss of email account services, in some instances fines, prison sentences and a combination of these two penalties can result from successful prosecution of email hacking. Sentences range from a fine for one instance of unauthorised access
CYBER CRIME UNIT
The Cyber Crime Unit’s involvement is not limited to criminal acts commonly associated with technology itself - such as hacking - but extends to investigations of more traditional offences such as fraud, threats and other serious crimes. Indeed, the Cyber Crime Unit’s assistance is sought regularly in order to preserve information found upon internet websites, during searches carried out by police officers from a number of different sections of the Police Force, in the analysis of digital evidence seized in connection with investigations as well as in identifying persons who are committing crimes over the internet. Due to the internet’s global element, the Malta Police Force works closely with a number of international organisations and law enforcement agencies in an attempt to make the internet a safer experience for Maltese internet users. Through initiatives held under the auspices of agencies such as Interpol and Europol, members of the Cyber Crime Unit receive specialised training on a regular basis. The Cyber Crime Unit can be contacted by telephone on (+356) 2294 2231 or on e-mail address computer.crime@gov.mt TEU
Sources: ehow.com/info_10026928_penalties-hacking-illegallycomputer.html Penalties for Hacking Email | eHow.com how.com/about_5250531_penalties-hacking-email. html#ixzz2SbrZiJiu wiki.answers.com/Q/Is_hacking_personal_emails_illegal Hacking-Research-Paper-26060.aspx;. Cyber Crime Unit - Malta Police Force Portal
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IT to positively impact those around them, to impact each other and to impact our country. Our company gives us all the tools to do so, its about further leveraging all the global resources there are within Microsoft and exposing Malta as a country within Microsoft to attract even further investment in our country. Internally we have a goal of, “Enabling the Smallest Country for the Greatest Impact”. TEU: What impact will the MIC have on Maltese IT and software development industry? AZ: As in this international network, Malta’s MIC will be providing access to worldclass resources for software developers, IT professionals, university students, academic faculties and entrepreneurs. It is an MIC focusing on Cloud Technology with clear and defined targets namely that of training individuals in the latest technology and business skills, enhancing their employability prospects within the sector and to incubate new start-ups that will give life to new and exciting ideas. Most importantly the MIC will be bringing more direct support to the local industry, be it support in developing applications on Microsoft Technology to accessing to information about Microsoft Technology. With the MIC, we will create a venue where youths, students and entrepreneurs can network, share ideas and create companies. TEU: Do you think that the local educational system provides the relevant workforce for IT and other skill-based sectors and what more can be done in this area in future? Is this something that happens just directly from Microsoft or do you also work with government institutions and universities to really bring this sort of line of programs and activities that help enable all these local developers? AZ: a lot of work has been done within the local educational infrastructure to bring students in line with the modern demands of today’s technological environment. Never as much as today have local students been exposed to IT and all its advantages. But there is so much potential in this area to grow as IT is a fast past industry .
Throughout the past years, Microsoft too has been very active in this important sector, remaining close to government, students and educators alike to be abreast with modern demands and learning how to use technology as an everyday tool that accompanies them in their educational journey and empowering them with all the resources that prepare them for tomorrow’s working environment. We currently are in process of setting up a Classroom of the Future, where students, parents and teachers can see and experience the latest in technology when it comes to education leveraging best practices from throughout the world. This classroom will be used as a reference for other countries to come and visit across Central and Eastern Europe. As an extension of this, we recently held an event where over 50 students, ages ranging from 14 to 16 years of age, put together a business plan to improve an aspect of their schools, homes and everyday environments. They were enabled with mentorship from our team and all the necessary IT tools they needed. It was a “Social Innovation Challenge”. These students used IT to propose a change to the world they lived in. I was thoroughly impressed with the level of creativity and innovation that emerged by investing a small amount of time and resources in our youth. Partnership with government and the education sector is a critical aspect of enabling us to make a further impact in this area. As mentioned we have partnered with the University of Malta to support the educational infrastructure better. We are delighted at the recent opening of a new ICT Services building and the new €17 million Faculty of Information and Communication Technology at University. Within this center, we will have an another satellite hub MIC where students can take advantage of the programs and resources available. All this serves at providing a solid base on which to develop the local IT skills sector. TEU: How can Microsoft help companies improve productivity, save money, and gain real-time insight to make sound business decisions? Do you feel, especially in the current economic times that are very challenging, that Microsoft is playing a relevant role supporting local industries and economic growth?
Editor’s Note Adrianna Zammit joined Microsoft Malta in December 2010 as a Country Manager for Malta and as of last month her role has been extended to County Manager for Cyprus and Malta. Prior to joining Microsoft, she worked in a similar role in sales management for Texas Instruments (HKI) in San Diego, California, USA, and began her career as an Electrical Engineer for Northrop Grumman Space Technologies. A Maltese-American, Ms Zammit holds a degree in Electrical and Computer Engineering. She brings with her extensive global experience in IT, engineering, sales, and executive management from Fortune 500 companies. 38 |
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AZ: Today, businesses face significant opportunities and challenges. Enterprise IT departments are tasked with deploying the best technology and solutions, at the best cost, to propel the business forward. IT professionals deploy solutions that make employees more productive, collaborative and effective. At the same time, they must manage and secure corporate information that employees access across a growing number of personal and corporate devices. Increasingly, these IT departments are turning to Microsoft for our devices and services expertise. They count on our worldclass business applications like Microsoft Dynamics, Office, Exchange, SharePoint, Lync and our business intelligence solutions. They also rely on our technology to manage employee corporate identity and to protect their corporate data. And increasingly, businesses of all sizes are turning to us to help them realize the benefits of cloud computing. Helping businesses move to the cloud on their terms is one of our most significant opportunities. The volume of Internet services consumed will continue to grow as people and businesses connect to the Internet from more devices for more purposes. In the current economic situation Malta needs to fuel innovation and entrepreneurship for further economic. That is why Microsoft has invested in the set-up a Microsoft Innovation Centre which focuses specifically on Cloud. MIC’s are very special places to be especially if one has great ideas, has a budding entrepreneurial spirit and wants to be guided by those who have already treaded the same path before him and reached a high level of success. The potential of these Microsoft Innovation Centers is backed by a very positive track record. Over the past 3 years, Microsoft Innovation Centers have reached over 1.1 million students and ICT professionals and these numbers stand to increase further as we witness a constant increase in the role of IT in our lives. TEU
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TRANSPORT & LOGISTICS
A History of Logistics Development by Martin Vella
Kevin Attard grew up in a family culture that pioneered transport in the 1970s and in the 1980s. Catering the transport and logistics sector from the North Continent to Malta, Kevin has created a remarkable brokerage system, having made the transition from the old system to the one that is in place today. Here he discusses the results and challenges of freight forwarding and the long-term outlook for the forwarding and logistics company. Background Customs and Freight Agency Ltd specialises in freight forwarding and transportation of cargo based on collection from depots in Malta, Italy and all EU Countries. They offer specialised cargo operations. Customs and Freight Agency bring about a level of expertise and service that has earned them corporate contracts with prestigious brands and customers. TEU: You have achieved consistent strong results as a customs and freight agent. What has enabled the success year after year? KA: It’s not the way you think, it’s how precise you perform, and that is the way I look at things. First and foremost you have to believe in what you do, and doing it in the best manner possible to house customers’ needs. Having a look at strategies and how people work; people come to you because they trust you are the best, or they think you can provide them the best proposals. I look at it from a different angle; I don’t look at my freight and logistics company as a money making enterprise, rather the other way round. This gives me the satisfaction and motivation as we try to conclude business, or into operations that other businesses find complicated or impossible to do. We also specialise in tailor made requests. For example, for the fifth consecutive year we have been the subcontractors and transporters for all the equipment including the staging for the MTV Summer Festival. That implies to clockwork precision operations. We have our own transport system and we use each and every port that is convenient for us for our efficiency. We also offer in-house insurance;
Kevin Attard addressing public seminar
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a comprehensive door-to-door package, with Justin-time delivery system, ensuring cost-effective deadlines met. It has to be looked at from a wide angle, because it doesn’t only involve me, but also my partners and all the employees making our team. We are a hands-on operation, where the customer knows exactly his status of activity and will get a direct and prompt reply.
“As for the competitive landscape, it takes years to build relationships with suppliers and asset buyers, and to become a proven industry leader” TEU: Born into a shipping family with an entrepreneurial culture and logistics spirit. How are you able to maintain the entrepreneurial focus with Customs and Freight Agency Ltd, and how critical is this to your success? KA: In all fairness my father was a household name in the logistics sector. I wasn’t given any money to invest, but I look up to my father as a role model who has given me experience and always mentored whatever I do. His advice is, “go and be a gentleman, whether we are going to gain or lose”. His advice is very critical to my modus operandi. Having a good reputation within my family has helped me a lot. One of CFA’s strengths is that in the course of our 18-year history, we have adapted to many changes in the marketplace. In that regard, today is no different
from previous times of disruption. Competition is good – it takes away complacency. It makes us smarter and more nimble. As for the competitive landscape, it takes years to build relationships with suppliers and asset buyers, and to become a proven industry leader. Like any business, new entrants can’t establish themselves overnight and claim to have the skills and knowledge necessary to meet the demanding needs and flexibility required in the marketplace. Taking a leaf from my father’s book, every day, we are focused on creating value with each trade and delivering the financial results that our clients and partners expect. As long as we stay focused on that goal, we will continue to adapt and grow. TEU: Can you explain the structure at Customs and Freight Agency Ltd? KA: We work under one holding - Attard Holdings, which is split up into three sections; Customs and Freight Agency Ltd., K Shipping Agency Ltd. and Passalacuqa Trasporti for transport and logistics. The three entities which have a variety of operations; each operation is contributing to the revenue of the company. Our agency assists vessels that call into Malta, contributing to transport of heavy machinery and parts with our own special equipment. We also diversify into customs, international trade, logistics, documentation, cargo handling, shipping and freight forwarding. I have a very successful team and each and every member in my company contributes toward the holistic operation. I manage to have an overall operation control and back-up system, whereby each and every employee in my office can cover up for the others. Customs and freight had a very humble start.
One of Customs and Freight Agency Ltd ‘s specail cargo carrier
TRANSPORT & LOGISTICS
Kevin Attart with Passalacqua Transporti representative I began acting as a customs broker and processing documents for people, but I never looked back. There’s definitely a culture of innovation at CFA, that’s heavily dependent upon our talent, as we view teamwork as fundamental to the health and strength of our business. With respect to growth, we want to be a top seed in each of our key service lines and businesses. To excel in this marketplace we must have the breadth of structure and depth of capabilities. We will continue to build up our core businesses even as we move into adjacent markets and make investments that give us strategic options on the businesses of tomorrow. TEU: Would you highlight your local footprint in the specialised transportation sector and cargo operations, and are there additional markets that you are focused on for future expansion? KA: Technology is one of the key factors for success in any logistics company. For example tracking systems, watching and monitoring them on mobile devices, seeing what locations they are in and what fuel they’re consuming, etc. Today, we give instructions to drivers. All drivers are equipped with phones which can view emails, track progress, and measure distances. These phones are also equipped with directions to give you a faster or shorter path to the required destination. One has to understand that since 2004, upon Malta’s entry into the EU, the opportunities have not doubled; they have tripled rapidly as we became competitors with the whole of Europe. We have a capability of competing with people who are running big mega companies, based in the main European Countries or wherever it is in Europe. That was the reason for merging with Passalacqua Transporti; for me to come to that level as a big player on the European market is significant. Unfortunately here in Malta we are somewhat restricted. We talk about being surrounded by the sun and sea, however no one ever talks about what a big barrier that is in our operations. No one ever understood, in my opinion, that for us to go anywhere we have to get a vessel, which becomes very difficult, especially during times of adverse weather conditions. People take it for granted that we have a sort of high way service connecting us with the rest of Europe.
With regards to what niche and prospective business one could specialise in. I have followed with good attention the transportation of recycling products out of Malta. That is a niche market besides the fact that you are cleaning our country. Obviously you are proposing that you are maximizing the volume of the trailers in operation by transporting back any waste material. What does it mean? A significant percentage of the trailers coming to Malta are arriving full and leaving empty, that means that the consumer is paying for the out-transportation that is hindering in the cost of anything that we buy from the corner shop, or from the high street, whether it is clothing or a packet of pasta. Now I believe that one has to find a way to encourage this industry that is growing. We have noticed that in some cases it is now easier to implement cost-cutting measures on behalf of our customers to make their supply chains greener and more efficient. “Green logistics” will increasingly feature on the agenda as dwindling fossil fuel reserves and emission restrictions push up the oil price when the economy recovers. Cost competitiveness remains a constant challenge, but as one of the key competencies in our fragmented market it is also crucial to future growth.
“For us, the importance is what I call leading from the front” TEU: How do you manage the freight and logistics agencies you represent? KA: Two important words; Hands-on attitude. Although I sit on a managerial post, I still, till today surprise customers and deliver packages myself. It is important to maintain a personal direct contact with the owners and the employees of my customers. This contact is the key for success. For us, the importance is what I call “leading from the front.” TEU: Can you describe some of the challenges the Maltese logistics industry faces? What challenges does CFA Ltd face? KA: The most important change that I believe I need to see is a system that could see how and where terminal fees are coming from and why are we
paying them? Whatever extra cost we are being charged, whether delivering from A to B, whether locally, or overseas, we must review the invoice or the price structure in our service to the customer. The trend towards globalisation has led to multinational companies either outsourcing their production to low-wage countries or relocating their factories nearer to the distribution markets, again for quality reasons. CFA Ltd can and must keep pace with the current trend. In addition, huge new consumer markets are appearing, with new centres that will eventually challenge the traditional dominance of the big players. The economic crisis has struck a blow against free trade, with a number of governments moving further in the direction of protectionism. As a forwarding and logistics company we have to face up to this reality. We are very well positioned, thanks to our presence and industry knowledge. Sustainability will certainly be taken more seriously in future. TEU All rights reserved | Copyrighted
BACKGROUND Kevin Attard, is the CEO and founder of this successful company which forms part of the customs and freight of Attard Holdings. He is the second generation hailing from a transport and logistics family background. As CEO and cofounder of Attard Holdings. Kevin, as he like to be referred to, has exemplified strong leadership skills for the past eighteen years to facilitate a successful business, making CFA Ltd one of the leading transportation and logistics consulting companies in Malta, earning a strong reputation in the industry. Previous to his entrepreneurial ventures he gained experience working as a customs and freight forwarding agent for small businesses and wealthy individuals.
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BANKING
First Fund in Malta structured as a UCITS Master Feeder Fund by Valletta Fund Management Limited By Martina Urso
Valletta Fund Management Limited (“VFM”) is now offering investors a new investment opportunity to access a dynamic portfolio of a broad range of asset classes and strategies through the Vilhena Broad Opportunities Fund. Speaking on the Fund launch, Mark Agius, Head of VFM highlighted that “The new Vilhena Broad Opportunities Fund (“VBOF”) is the first Fund of its kind in Malta to be structured as a UCITS Master Feeder Fund. The structure enables the Manager to invest a minimum of 85% of its Net Asset Value in the Master Fund which is the Insight Broad Opportunities Fund, a sub-fund of Absolute Insight Funds p.l.c., which also qualifies as a UCITS”. The Insight Broad Opportunities Fund (“IBOF”) invests across a wide range of asset classes including equity, fixed income, total return strategies, commodities, real assets and derivatives and seeks to deliver attractive and positive long-term returns. The IBOF makes use of a broad asset range available to acquire performance from multiple sources whilst also diversifying risk. Its dynamic approach to asset allocation enables it to implement changes efficiently, potentially capturing upside when markets are rising as well as avoiding downside when markets are falling. The VBOF can be accessed through a minimum investment amount of €2,500 or through a monthly investment plan of €50 per month. During the launch offer period, investors will benefit from a 50% discount on the up-front charge which is being reduced to 2%. Mark Agius concluded that “Valletta Fund Management remains at the forefront of investment thinking, constantly seeking to develop its product suite to provide the best investment opportunities for our customers”. For more information on the Vilhena Broad Opportunities Fund you may visit any BOV Branch/Investment Centre, Licensed Financial Intermediaries or www.vfm.com.mt. Alternatively call freephone 8007 2344.
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The Master Fund is a sub-fund of Absolute Insight Funds p.l.c., a self-managed scheme, an open-ended investment company with variable capital with segregated liability between sub-funds incorporated under the laws of Ireland with registration number 431087. The Fund shall invest in the Class B1 Euro Shares Class of the Master Fund. The value of the investment may fall as well as rise and any initial charges may lower the amount invested and the amount received upon redemptions. Investments should be based on the full details of the Prospectus and the Key Investor Information Document, which may be obtained from VFM, Bank of Valletta plc Branches/Investment Centres and other Licensed Financial Intermediaries. VFM is licensed by the MFSA. The Vilhena Funds SICAV plc is licensed by the MFSA and qualifies as a UCITS. Issued by VFM, TG Complex, Suite 2, Level 3, Triq il-Birrerija, L-Imriehel, Birkirkara BKR 3000 Malta. Tel: (356) 2122 7311, Fax: (356) 2275 5661, Email: infovfm@bov.com, Website: www.vfm.com.mt. Source: VFM
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Cutrico Ltd, Mriehel Bypass, Mriehel BKR 3000, Malta Tel: +356 2149 8658 / 2149 8693 | Email: sales@cutrico.com
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and same day delivery Trailer service in ambient and temperature
controlled conditions We are not only the best but also the most cost effective Luqa Road, Qormi QRM 9071 - Malta Tel: 00356 2144 3031 Fax: 00356 2144 8120 info@cfamalta.com www.attardholdings.com A member of
CSR
VOLUNTARY WORK WITH THE DAUGHTERS OF THE SACRED HEART MISSION IN RUIRU, KENYA, EAST AFRICA We are a group of five students who are setting off to Ruiru, Kenya this coming August. The Daughters of the Sacred Heart run a mission for children in Ruiru, which is a village near Nairobi. We will be spending three weeks in a compound with the Sisters of The Sacred Heart, caring for some 145 children who come over to the mission every day to attend school. We will also be helping out at the local orphanage. As well as being a school the compound is also a feeding centre for the people of the streets. The tasks we will be given will include cooking for, and feeding the children and street people; organising arts & crafts activities and games to entertain and teach the children; cleaning and light maintenance works at the mission and the orphanage. You may wish to visit the Daughters of The Sacred Heart web site on: http://www.dshnuzzo.org/#!__where-we-are and click on “Kenya�.
Gerald Gambin, Laura Paris and Philippa Paris who will be accompanied on this trip by Hannah
In order to raise some money for this foundation we have Galea and Chiara Leone Ganado organised a party on the 17th of July at the Xara Lodge. The party is called Muziki and will be held on the rooftop. Around four local DJs have kindly donated their time to come and play at the event for us. Tickets are being sold at a price of 8Euros and the money will contribute to repainting the school in Ruiru, as well as medicines and day to day needs such as food, clothes ect... The idea of the party was not only to raise money but also awareness of the situation faced by thousands of individuals all over africa. We are all extremely excited as this is it is our first time doing missionary work in a place like Kenya, besides Chiara Leone Ganado who was a volunteer in an orphanage in Nakuru with a charity called FACES last year. If anybody would like to make any donations a BOV bank account in the name 4002170662-8 has been opened.
DOTSH Ruiru Kenya 2013 and the account number is
June 2013 | THE ECONOMIC UPDATE
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MOTHERWELL
Motherwell Bridge opens state-of-the-art industrial engine workshop by Special Correspondent
Up to 15 new job opportunities
Motherwell Bridge has opened a state-of-the-art engine workshop and test station to service heavy industrial and maritime equipment for local and Mediterranean clients.
with the manufacture of large-scale steel structures for landmark properties and projects in Malta.
Up to 15 new job opportunities for specialised engine technicians are expected to be created following this €500,000 investment at Motherwell Bridge’s Hal Far premises. Motherwell Bridge currently has a workforce of 65.
Motherwell Bridge Ltd provides maintenance management and electrical and mechanical maintenance services of port handling equipment. It recently erected more than 100 container handling cranes for international clients in Malta, Spain and the Middle East. TEU
The engine overhaul workshop will provide a range of services, including disassembling and reassembling of engines with precision and quality assurance. Tools and equipment have been procured from leading German and American manufacturers. At the core of the installation is a heavy duty Dynamometer, able to test and monitor the performance of electrical motors, generators and industrial and marine heavy-diesel engines. “Motherwell Bridge has directed significant investment towards the industrial engine workshop as it continues to pursue its strategy to provide increasingly customised engineering services to a range of clients,” managing director Anthony Mallia said. “We are now able to better support clients seeking to reduce costs on long-term engine maintenance and to plan preventive maintenance. Our target clients range from construction companies and players in the oil and gas industry to transport and haulage firms and freight forwarders. Our technicians are highly experienced and have been trained to service diesel engines.” Over the past 20 years, Motherwell Bridge has earned a strong reputation for the steel fabrication of storage tanks for major clients, including leading oil and gas companies. It has also been entrusted
ABOUT MOTHERWELL BRIDGE Motherwell Bridge is a Mediterranean leader in steel fabrication and customised engineering services. Originally established in 1992, Motherwell Bridge specialises in the design and fabrication of storage tanks, structural steel and duct systems; Non-Destructive Testing inspections; site erection and maintenance of port-handling equipment; and industrial engine overhauling and service. It operates from a workshop spanning a total area of 15,240 square metres in Malta’s Hal Far industrial park. Motherwell Bridge is part of Hili Company Ltd, an internationally-focused, multi-disciplinary group incorporating a range of capabilities, including maritime-based logistics, IT and security solutions, and retail operations outside Malta. Hili Company’s anchor organisations include Carmelo Caruana Co Ltd, Philip Toledo Ltd, Baltic Freight Services and Baltic Trucking Services Ltd. Hili Company is the operations division of Hili Ventures Ltd. www.mbmalta.com
State of the Art Engineering
Motherwell Bridge Limited, Industrial Estate, Hal Far, Malta T. 2165 7800 | E. info@mbmalta.com | W. www.mbmalta.com 46|
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We strive to innovate and look beyond the obvious
At Uniblue we create consumer-facing products for people who wish to use the full potential of their technology and need to know how. We focus on providing the best user experience to successfully sell products across the world. We’ve found it pays to think outside the box.
www.uniblue.com
EU
Fighting for your rights in Europe By Martin Vella
In Brussels she has served as Malta’s Legal and Judicial Cooperation Attaché within the Permanent Representation of Malta to the European Union since 2004, acquiring a firm working knowledge of EU institutions and legislation. We interview new Member of the European Parliament for Malta Roberta Metsola to find out why she is committed to standing up for the rights of all Maltese and other European citizens on the Maltese islands.
BACKGROUND As a student, Roberta was involved in different student activities and organizations. During her time at the University of Malta, she formed part of SDM (Student Demokristjani Maltin), KNZ (The National Youth Council) and MZPN . . (Moviment Zghazagh Partit Nazzjonalista), before being elected as Secretary General of the European Democrat Students (EDS -the student branch of the European Peoples Party), as well as to posts within the European Youth Forum (YJF). In 2002, she was also elected vice-president of the Youth Convention on the Future of Europe, paving the way for me being closely involved in the negotiation of the Constitutional Treaty and, later, the Lisbon Treaty. These experiences helped shape Roberta’s view on European politics and showed her first hand just how important the role of the European Parliament is. 48|
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TEU: What differentiates you than the other female counterparts? RM: When I am asked these sort of questions, rather than focus about what differentiates me from other female MEPs, I usually focus on what my particular skill set and experiences are and allow people to make up their own minds as to how far this is different from other MEPs, male or female.
“We are only six MEPs from Malta so on issues of national interest it is essential that we overcome partisan considerations and pull the same rope” Professionally I am a lawyer and have specialised in European Law and Politics. I served as Malta’s Legal and Judicial Cooperation Attaché within the Permanent Representation of Malta to the European Union from 2004 to 2012, before moving to become legal advisor to the High Representative of the European Union for Foreign Affairs and Security Policy and then
being elected as a member of the European Parliament in April 2013. This laid the groundwork for me to be able to hit the ground running when I was elected as MEP in April. I managed to find my feet very quickly and immediately set about negotiating to ensure Malta’s interests are safeguarded on every dossier. I have also been constantly active within the Nationalist Party and ran as a candidate with the Party for the MEP elections in 2004 and again in 2009. Despite not being elected immediately, seeing thousands of people put their faith in me, was an overwhelming experience, and weighed heavily on my decision to accept to replace Simon Busuttil when he took up his seat in Malta’s national parliament. TEU: You have been appointed to four committees of the European Parliament as a full member of the Committee on Civil Liberties, Justice and Home Affairs, the Special Committee on Organised Crime, Corruption and Money Laundering, the Committee on Petitions, and a substitute member of the Committee on the Internal Market and Consumer Protection. What is your standpoint here and what will you be?
EU RM: Upon being elected as one of Malta’s MEPs my immediate priority was to ensure that Malta was as best represented as possible on the European Parliament Committees that discuss issues that directly affect Malta’s interests. The Committees that I will sit on discuss issues such as immigration, law enforcement, civil liberties, consumer protection and the functioning of the single market - all of which are dossiers where it is crucial for Malta’s voice to be heard. I wanted to have as big an impact as possible. The first Committee, the Civil Liberties, Justice and Home Affairs Committee (LIBE), is responsible for the protection of citizens’ rights, immigration, human rights and fundamental rights, as well as the establishment and development of an area of freedom, security and justice. The second Committee, the Committee on Organised Crime, Corruption and Money Laundering (CRIM), a special committee set up in March 2012, is responsible for the evaluation of the impact of organised crime, and to propose appropriate measures to enable the Union to counter these threats. The third Committee, the Petitions Committee (PETI), is delegated in dealing with the petitions put forward by Europe’s citizens to the EP and is in charge of relations with Europe’s Ombudsman. I am also a substitute member of the Internal Market and Consumer Protection Committee (IMCO), which is designed to coordinate legislation in the sphere of the internal market and to ensure free movement of goods, the right of establishment and the freedom to provide services. The current legislature ends in May 2014, so I need to make sure that I manage to do as much as possible over the next 12 months - I have already been appointed as one of the shadow rapporteurs on the Consumer Programme, got involved in negotiations that could effect the online gaming industry, and have made a number of speeches in the plenary on immigration, asylum, law enforcement tools and the foreign policy set up of the European Union. We are only six MEPs from Malta so on issues of national interest it is essential that we overcome partisan considerations and pull the same rope. I may be part of one of the smallest national delegations but I will work to ensure that our voice is heard. TEU: “If we invest in women, we need to let them go and follow their ambitions,” concluded French MEP Morin-Chartier (EPP), author of the resolution on the impact of the crisis on gender equality and women’s rights. Do you agree?
or shortage of female representation now needs to shift and focus on what is needed in order for Malta to have the best representation possible, irrespective of gender.
RM: The European Union will always act as a watchdog to ensure that Member States comply with EU law and EU standards and that the rule of law is always safeguarded.
I am often asked whether politics is the place for a mother. It is. It is perhaps harder to balance different commitments and requires some forward planning and organisation. But, despite the obvious practical difficulties, and an excellent calendar application, my answer is always invariably yes. Of course it is not easy to be away from my family performing my parliamentary duties in Brussels, Strasbourg and Malta but I am determined to be a role model for my children and show them that if they believe in something and work hard enough for it they can achieve anything. Luckily my husband and I manage to balance our work and family responsibilities. But I recognise that not every job allows for this balance to exist and there are a number of concrete initiatives that we can take within the European Parliament to address this and make it easier for families.
This was foremost on people’s mind when we joined the EU in 2004 and as an MEP I will work to ensure that the government does not run roughshod over its EU obligations. Take the case of the former Malta Communications Authority (MCA) chairman, Antonio Ghio, who was forced to resign by the new Labour Government in blatant breach of EU law that protects the independence of National Regulators such as the MCA. I submitted a Parliamentary Question asking the European Commission to clarify just how far this breaches EU legislation and EU Commissioner Neelie Kroes has launched a thorough inquiry into this forced removal.
TEU: Do you think a stronger gender dimension in all policy-making is required in response to the economic crisis which hits women harder than men? RM: It is definitely something positive that we are giving a stronger gender dimension to European policy. This is something which I have strongly worked to see become a reality. However, the economic crisis hit everyone, men and women, hard. It has affected families and businesses. We need to work to ensure that these effects are mitigated as much as possible and concentrate on ensuring that Europe’s economy bounces back and the focus remains on ensuring jobs and growth. When last February then Prime Minister Gonzi managed to negotiate a 1.12billion Euro financial package for Malta, he had an eye on the bigger picture. These are European funds that must be safeguarded and must be fully utilised until 2020 if Maltese families and Maltese businesses are to remain sheltered from the crisis. More worrying is the excessive deficit procedure that the European Commission has placed Malta under. We need to work harder so that Malta’s budget deficit is kept within the stipulated European limits, while ensuring that our economy does not suffer.
RM: We need to ensure that there is level playing field for men and women everywhere. I am a firm believer in incentives rather than strict regulation in terms of gender quotas.
“I will remain at the forefront in working to ensure that Malta sticks to the letter and spirit of EU legislation”
Following the record number of ten women being elected to the Maltese parliament at the last general election, we now also have myself, Claudette and Marlene as MEPs, finally erasing the unenviable label of being the only EU Member State not to have female representatives in the European Parliament. The discussions on the lack
TEU: Will Europe evaluate the PL’s performance and adherence to EU regulations, such as safeguarding worker’s rights, hunting, budgetary frameworks, etc? Do you anticipate further changes to the legislative framework in the near future?
I will remain at the forefront in working to ensure that Malta sticks to the letter and spirit of EU legislation. TEU: What for Europe, and for you, would constitute success for Malta? RM: Success is something difficult to measure in absolute terms. I have a little over 12 months to do my utmost to ensure the best possible outcome for Malta. I will work tirelessly to this end and then will be able to look the electorate in the eye and tell them that I have done everything I can to help the country move forward. TEU All rights reserved | Copyrighted
EDITOR’S NOTE Roberta Metsola is a lawyer and has specialised in European law and politics. She served as Malta’s Legal and Judicial Cooperation Attaché within the Permanent Representation of Malta to the European Union, and as legal advisor to the High Representative of the European Union for Foreign Affairs and Security Policy. In her student years, she formed part of SDM (Studenti Demokristjani Maltin), KNZ (The National Youth Council) and . . MZPN (Moviment Zghazagh Partit Nazzjonalista), before being elected as Secretary General of the European Democrat Students (EDS - the student branch of the EPP), as well as to posts within the European Youth Forum (YJF). In 2002, she was elected vice-president of the Youth Convention on the Future of Europe which paved the way to her being closely involved in the negotiation and drafting of the European Constitutional Treaty and, later, the Lisbon Treaty. She has been constantly active within the Partit Nazzjonalista in Malta, serving within the party’s international secretariat; actively campaigning for a ‘YES’ vote in the 2003 EU membership referendum; volunteering with the PN’s election arm ELCOM. She successfully contested the casual election to fill in the vacated seat of Simon Busuttil on 24 April 2013 for the European Parliament, becoming one of Malta’s first female Members of the European Parliament.
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MICE
The Xara Lodge by Infinitely Xara by Marilyn Custo
The Xara Lodge is a new and exciting concept for the Meeting, Incentive and Special Event Organiser.
Nestled in the open Rabat countryside just below Mdina, The Xara Lodge has been built to relive the glory of a traditional Maltese country house. As a true, multi-purpose venue from its inception, The Xara Lodge is ideal for any size of event and occasion, from grand weddings to corporate events, meetings and conferences, product launches, shows and much more. Offering breath-taking views, modern amenities, highly modular open spaces and private areas, The Xara Lodge is truly unique in turning events into memorable experiences. Facilities include a number of dining options both indoors and al fresco and catering for groups ranging from 20 guests to 750 guests, conference and meeting facilities catering for a minimum of 10 to 320 delegates, wedding celebration facilities including wedding planner services and specialised activities such as product launches, team building events, fashion shows, pool parties, exhibitions and concerts. TEU
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CSR
VOLUNTARY WORK WITH THE DAUGHTERS OF THE SACRED HEART MISSION IN RUIRU, KENYA, EAST AFRICA We are a group of five students who are setting off to Ruiru, Kenya this coming August. The Daughters of the Sacred Heart run a mission for children in Ruiru, which is a village near Nairobi. We will be spending three weeks in a compound with the Sisters of The Sacred Heart, caring for some 145 children who come over to the mission every day to attend school. We will also be helping out at the local orphanage. As well as being a school the compound is also a feeding centre for the people of the streets. The tasks we will be given will include cooking for, and feeding the children and street people; organising arts & crafts activities and games to entertain and teach the children; cleaning and light maintenance works at the mission and the orphanage. You may wish to visit the Daughters of The Sacred Heart web site on: http://www.dshnuzzo.org/#!__where-we-are and click on “Kenya�.
Gerald Gambin, Laura Paris and Philippa Paris who will be accompanied on this trip by Hannah
In order to raise some money for this foundation we have Galea and Chiara Leone Ganado organised a party on the 17th of July at the Xara Lodge. The party is called Muziki and will be held on the rooftop. Around four local DJs have kindly donated their time to come and play at the event for us. Tickets are being sold at a price of 8Euros and the money will contribute to repainting the school in Ruiru, as well as medicines and day to day needs such as food, clothes ect... The idea of the party was not only to raise money but also awareness of the situation faced by thousands of individuals all over africa. We are all extremely excited as this is it is our first time doing missionary work in a place like Kenya, besides Chiara Leone Ganado who was a volunteer in an orphanage in Nakuru with a charity called FACES last year. If anybody would like to make any donations a BOV bank account in the name 4002170662-8 has been opened.
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DOTSH Ruiru Kenya 2013 and the account number is
LANGUAGE EDUCATION
A Commitment to Excellence by George Carol
I was recently afforded the opportunity to have a discussion with Genevieve Abela, CEO of FELTOM about their role in pioneering the emerging English language market in Malta, as well as its current offerings and future prospects. In this interview, Genevieve proves that the industry is an important contributor to Malta and why FELTOM believes that there is potential to further grow and increase our direct and indirect economic contribution
BACKGROUND The Federation of English Language Teaching Organisations Malta – FELTOM was founded in 1989 and is a self regulating, non-profit organisation, dedicated to promoting professionalism within the language learning industry by setting and maintaining standards in every aspect of a language stay. While quality assurance is crucial to ensuring consolidation of the sector, FELTOM has also been committed to securing an environment in which the sector can flourish. In recent years FELTOM has become more active in the field of promoting Malta as a quality ELT destination. FELTOM organises an annual international workshop in which the majority of Malta’s ELT organisations participate. Many of the longest established language schools are accredited members of FELTOM. 54|
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TEU: What is the heritage of FELTOM and how have you worked to maintain it since coming onboard? GA: FELTOM was set-up over twenty years ago with the aim of ensuring and maintaining standards in the English as foreign language industry. By coming together as a national federation, FELTOM members worked to develop and improve their entire setup and to offer a professional all-inclusive package. Today, the industry has developed into a major player in Malta’s economy. Last year alone, the industry contributed over 226,360 student weeks, with an average length of stay of 19.3 nights and generated over €135 million in the economy. The challenge is now to continue raising our standards to ensure that Malta remains a centre of excellence and repute within the global English Language Teaching (ELT) industry. This is one of the main pillars of our strategic approach to
FELTOM and the industry. Parallel with enhancing our accreditation and quality assurance, FELTOM is also focused on reorganising its structure to ensure its effectiveness as a main tourism stakeholder. TEU: How does the Federation of English Language Teaching Organisations Malta – FELTOM promote professionalism within the language learning industry and why is quality assurance paramount to ensuring consolidation of the sector? GA: FELTOM was founded in order to build a growing industry on professional grounds. It was recognised that Malta’s success in this industry depended on the high academic standards of its ELT organisations and the supporting infrastructure. It is precisely for this reason that FELTOM was involved in the drafting of national legislation to regulate the ELT industry. This national legislation
LANGUAGE EDUCATION representing more than 10% of the total tourist expenditure in Malta?
is unique internationally and remains one of Malta’s strengths ensuring the industry’s success through a sound reputation. Building on its past achievements, FELTOM is focused on ensuring that the already high standards of the industry are not only set but improved. In this competitive industry, it is only this way that Malta can continue to achieve sustainable growth into the future. In today’s world where internet and social media are becoming so important in this competitive sector, FELTOM needs to ensure that all students that come to Malta are satisfied with their experience in Malta. Our efforts are to safeguard Malta’s reputation as a centre of excellence in this sector. TEU: How has FELTOM become more active in the field of promoting Malta as a quality ELT destination?
The total payroll of English language schools in 2012 was €12.37 million, compared to €10.6 million in 2011 GA: FELTOM works hand in hand with its members and local entities such as MTA and the English as a Foreign Language monitoring board in order to promote Malta as an ELT destination. We actively participate in a number of workshops abroad as well as organise an annual event in Malta whereby we showcase Malta’s product as an ELT destination to leading international agents. We are now consolidating our brand and image which will strengthen our position at the forefront of promoting Malta’s reputation as a safe and high standard destination that is attractive to all age groups that come here. Hand-in-hand with promotion, FELTOM is working on revamping its accreditation scheme in order to follow current international trends and thus further ensure the high quality standards of the industry. We believe that all these efforts teamed with our strengths as a destination will benefit all stakeholders including host families, the schools, and the economy at large. TEU: Looking back to 2012, 82,000 students travelled to Malta to study English, an increase of 18% over 2011. How does FELTOM contribute by and large to the local economy when you consider that total expenditure by English language students amounted to €135 million,
GA: The ELT industry has established itself as an important pillar of Malta’s tourism sector and economy in general. The total payroll of English language schools in 2012 was €12.37 million, compared to €10.6 million in 2011. Over 1,200 Maltese families are also reaping the benefits of hosting students whilst a number of investments have taken place in a number of dedicated hotels and complexes. All this stands to show that the industry is an important contributor to Malta and FELTOM believes that there is potential to further grow and increase our direct and indirect economic contribution. FELTOM plays an important role in ensuring that Malta remains a leading destination for English language stays with a reputation built on high standards. Our aim is to continue to enhance it and to increase the economic contribution of this already important tourism segment. TEU: In what ways do you believe FELTOM can contribute further to Malta’s economy especially throughout the shoulder months? GA: Our approach is three-pronged. We first want to consolidate our positive performance. Our efforts here are to continue making Malta visible as a destination through marketing drives abroad based on the strengths the industry and the island possess. Secondly, FELTOM is actively focusing its efforts on further developing and strengthening the English for specific purposes courses. New niche specialised sectors as well as penetrating new source markets. FELTOM accredited schools have successfully established themselves with English for specific purposes courses including Business, Medical, and Aviation English amongst others. These courses target professionals who prefer shoulder months and a more intense focus. The interest in these courses continues to rise and Malta offers a lot of potential in this area. Thirdly, we are also looking carefully at penetrating new and emerging markets such as the Middle East, Asia and South America. FELTOM believes that there is potential for this industry to continue to grow sustainably and organically and our focus is to ensure that Malta remains at the forefront of the global industry. TEU: What do you do differently to build successful relationships in other countries and how important is it to have an innovative culture? GA: Our relationships are particularly based on the reputation Malta has built over the years. The quality of English taught is well known in the industry coupled with the benefits Malta brings along as a destination. Our safety, climate, tourism attractions and supporting industries are highly sought after by students who become our best ambassadors after coming here. FELTOM is aware that the industry is continuously reinventing itself and we are vigilant to ensure that Malta and our accredited schools
remain abreast of these changes. Our restructuring efforts are a step in this direction. We want to ensure that we remain innovative and ahead of the changes in the industry. TEU: What is the significance of your role at FELTOM? GA: The role of a full-time CEO for FELTOM means that there is now strategic leadership on an industry level that is independent from the member schools. This focus will allow the industry to strengthen itself and develop further in terms of quality assurance and branding. FELTOM now no longer has just an administrative arm but with a CEO it is developing into an active lobbyist directly involved in policy development. This will also help FELTOM in its efforts to further establish itself as a respected tourism stakeholder given its significant contribution to Malta’s tourism sector and economy.
FELTOM now no longer has just an administrative arm but with a CEO it is developing into an active lobbyist directly involved in policy development TEU: How do you envision your role at FELTOM, beyond your leadership with respect to administrative matters? GA: My target is to enhance FELTOM’s standing on a national and international level. After establishing and reorganising the internal structure of FELTOM I am now focusing all my efforts on a number of projects we are leading. I want to assist FELTOM in this interesting phase of its evolution from a national association to an industry stakeholder. Having all the member schools enthusiastic about this evolution, I do believe that together we can develop new opportunities for the industry and for Malta. TEU All rights reserved | Copyrighted
EDITOR’S NOTE
Genevieve Abela was appointed as Chief Executive Officer in 2012. Prior to this role, Genevieve was the private secretary of the Minister of Tourism, Culture and the Environment. Graduating in psychology and education, Genevieve further specialised in training & development and organizational management and was a visiting lecturer at the University of Malta. Over the past 15 years, Genevieve has been involved in various public sector initiatives mainly in the fields of education, tourism and culture.
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FINANCE
Access to Finance - Part 3 by Patrick Hall
that apply to their conventional counterparts. There are different types of businesses which vary from micro businesses to SME’s and large corporations. Finance from a business start-up to an established business having cash flow problems or seeking ways to expand both locally or overseas. There are many aspects one has to consider to identify the type of finance required. Also questions that have to be asked are: What is the cost of Finance? What is the need and use? What security / collateral?
Business varies in size, its aims and financial requirements. The risk appetite and finance required are equally varied. One might ask what type of finance is right for his/her company. Business Angels Business angels are wealthy individuals who invest in start-up and growth companies in return for equity in the company. The investment can involve both time and money depending upon the investor. This stage comes after the research and development stage where these were discussed previously. At this stage the investment required is to start producing the product and a prototype is already available. Islamic Finance The basis of Islamic Finance prohibits usury, termed as Riba (which is the lending of money at exorbitant rates) but it doesn’t stop just there. The concept is more accurately that money has no intrinsic value – it is only a measure of value, and since money has no value itself, there should be no charge for its use. Therefore, Islamic Finance is said to be asset based as opposed to currency based whereby an investment is structured on exchange or ownership of assets, and money is simply the payment mechanism to effect the transaction. The basic framework of an Islamic Financial System is based on elements of Shariah, which governs Islamic societies. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic law and the finance industry rules and regulations
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What is the timing of finance? Are there any Tax reliefs? What available Local government or EU incentives are available? After taking all the above considerations it is now time to draw up your business plan and together with that a working cash flow. These are two essential and crucial tools to manage to get the required finance. They are important not just for the financial institution granting the finance to the company but mostly important is for the business management team or owners to determine what are the requirements and how these will affect the growth of the company and if the finance is sustainable. For finance providers a good business plan is essential, particularly for start-ups and new businesses where little other information is available. Established businesses will also benefit from a good plan and it is often used as a benchmark to make sure the business is going in the right direction. As well as your business plan, a set of projected financial statements detailing you cash flow is essential. This will detail the actual cash required by your business on a day to day, month to month and year to year basis. The needs of businesses are constantly changing and your cash flow will highlight any shortfalls in liquidity that will need to be bridged. Many established, viable, and even profitable businesses fail due to cash not being available when they need it the most. It’s not how strong you are but how liquid you are. What will finance providers require?
A business needs to be well organised and prepared in advance of applying for any type of finance. Finance providers will typically require some or all of the following. What purpose of the loan? Exactly what the loan will be used for and why it is needed. The amount required to achieve your purpose. What is the structure of the business, the management profile and the history of the business? Historic accounts showing past performance of the business and asset position of the company. Management accounts to provide details of the businesses expected financial performance going forward. Cash flow projections to ensure that the business will have sufficient liquid funds to service the debt. A detailed business plan – new or start-up businesses in particular must have a well-prepared business plan. A good previous relationship with the lender or past lenders will be considered as an asset. While likely important are personal guarantees or collateral as a form of security for the loan. The better prepared a business is, the smoother the process of applying for finance will be. TEU Editor’s Note Patrick Hall is director at DF Business Advisory Limited which form part of DF Group of companies.
Executive Brief DF Business Advisory Limited was set up in 2012 for the purpose of offering a number of advisory services to the business community. Its main activities can be short listed in the following major areas of expertise: –
Company Set-up & Re-Location;
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Business Restructuring;
– Access to Finance and Funding Opportunities; –
Business Plans & Cash Flows;
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Mergers & Acquisitions Advise;
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HR Strategy;
DF Business Advisory will assist customers in all their requirements to help them establish their business in Malta, liaising with external Auditors, HR agencies, Estate Agencies providing them with assistance and independent opinion. Coordinating with DF Group of companies, DF Business Advisory will assist in any licenses, permits and other requirements to confine with Maltese law and requisites. DF Group have a large Business Advice Team who has worked with a substantial amount of individuals looking to set up in business or improve and grow existing ones. DF Business Advisory Limited operates from Il Piazzetta A, Suite 21, Tower Road, Sliema. Email: Patrick.hall@dfcorporate.com
FINANCE
HSBC Malta launches two new Receivables Finance solutions: ‘Invoice Finance for Small Businesses’ and ‘Invoice Discounting’
HSBC Malta’s new Receivables Finance products offer customised solutions for more consistent cash flow and better working capital management. As part of the Malta Trade for Growth initiative, HSBC Bank Malta launched two new Receivables Finance products to offer customised solutions for its business clients for more consistent cash flow and better working capital management. Building upon the success of HSBC Malta’s Invoice Finance introduced in 2006, these two new products - ‘Invoice Finance for Small Businesses’ and ‘Invoice Discounting’ – offer greater flexibility for customers to select exactly which HSBC Receivables Finance services they required. “Invoice Finance is a real success story for Malta, allowing our commercial clients better cash flow and working capital management so as to benefit from new business opportunities. The product also provides ledger management, payment collection and credit cover against bad debts,” said HSBC Malta’s Head of Receivables Finance, Vincent Borg. Whether trading in Malta or internationally, Receivables Finance offers an ideal solution for companies growing beyond their existing credit facilities by helping manage cash flow, significantly speed up turnover, and streamlined processes, all of which promotes more predictable cash flow, enhanced liquidity, increased efficiency, and enhanced financial reporting. “Customers may send us their invoices once they’ve been issued and we advance funding against the invoice of up to 85% of eligible invoices, typically done within 48 hours. Faster access to cash traditionally caught in the sales cycle brings many business advantages. These include making cash available to meet day-to-day commitments or even pay suppliers in advance to negotiate more favourable rates and better terms,” explained Mr Borg. In fact, HSBC Malta strongly recommends that companies protect their international transactions against default by their debtors.HSBC’s Receivables Finance services also offer exceptional insight and connectivity into international markets: “Let’s say you’re a Maltese client selling to a company in UK, HSBC can help you gain insight into this UK connection through the Bank’s presence on the ground in the UK and similarly, in more than 80 countries worldwide,” said Michel Cordina, Head of Commercial Bank at HSBC Bank Malta.“These new solutions highlight the continued investment by HSBC Bank Malta to support customers to grow their business and should assist Maltese businesses to thrive,” added Mr Cordina.For optimal accessibility, HSBC’s Internet Invoice Finance system offers real-time access to HSBC Receivables Finance accounts in a secure, web-based environment. Customers have complete control over their entire Receivables Finance program with the ability to send invoices to HSBC electronically, check balances, draw down on funding and more.More information about HSBC Malta’s Receivables Finance portfolio is available at www.hsbc.com. mt. Business customers may also call directly on 2380 8242. TEU
TEU
ARTS AND CULTURE
Exposition - French Touch - Au Palazzo de Piro By George Carol
We catch up with the latest exposé by Madame Veronique Volle, an exhibition organized with the Alliance Française de Malte Méditerranée, launching the start of a new collaboration between Palazzo de Piro and the Alliance Française in Malta. After holding several exhibitions throughout France, Madame Volle recently discovered Malta and has fallen under the spell of the Island’s charm.
TEU On your mother’s side there are fashion designers and artists. Did that affect you to become an artist and affect your work? VV: My mother certainly passed on some sensitivity, the desire to create and the desire for all that is manual. To the contrary, all this did not influence me or my paintings. TEU: Why did you choose oil painting as your primary medium? VV: My first paintings were painted with oil painting but now I paint with acrylic because it dries faster and it has more life in it! TEU: Is there anything you consistently draw inspiration from? VV: The nature such as plants, animals, colours, elements ... and everything around me, including people, architecture and objects. These are all sources of inspiration. I like to observe my surroundings and the ambience also inspires me. TEU: What is the most challenging part about working with oil? VV: Working with acrylic requires some precision because unlike oil, it cannot be reworked on the brush with a stroke or
applied in one colour, as it dries quickly. It is then superimposed with various colors. TEU: What is the best part about working with oil? VV: We can therefore say that the oil permits one to work how he or she desires, enabling the artist to play and blend the colours more easily. Oil colours probably render a painting much more brilliant. But thanks to new techniques with acrylic, one may arrive to have the same effect. TEU: Do you do anything in particular to seal your art? VV: I read a lot of magazines, art, design, decoration, and I see a lot of exhibitions. I visit and go very often to art and deco galleries. TEU: What is your creative process like? VV: I need to be quiet and alone to paint, and with my future painting already painted in my mind to achieve what I want to convey. TEU: How has your style changed over the years? VV: My first paintings were more naive and much less complicated. Having mastered
over my paint brushes and instruments, my actions became more assertive. I have had no qualms to mixing colours and this has never posed a problem for me. I always know what colour to mix to arrive to particular hue. TEU: What do you believe is a key element in creating a good composition? VV: The inspiration and the desire to create without restraint. TEU: You have a vast body of work, painting - is there a specific theme or concept you keep in all of your work or does it change from each body? VV: I have several styles... depending on the chosen topic, and my mood to adapt to that particular style. I fit into a particular style! I’m a pretty whimsical character and its the same with my painting, and that’s what I like! TEU: What was the best advice given to you as an artist? VV: Do not be afraid to get started, take pleasure in what you do, accept criticism and work as much as possible to acquire the right TEU actions to achieve what you want to convey. TEU
Editor’s Note Véronique Volle spent an idyllic childhood close to nature amidst the regions of the Loire, the Rhône and L’Ain. With crayons at hand she often wandered through the countryside imbibing the colours of different seasons as they came along. After meeting L’Bohème, a painter from Luberon, who introduced her to oil painting and became her mentor, she went on to attend courses at the School of Art in Saint Etienne and Avignon. Véronique’s enthrallment with various artists ranging from cabinet makers to painters, architects and musicians. After much travel Véronique settled down first in Dijon and later in Avignon, two cities which had a great influence on her painting. Much later, after having two daughters, she established her abode in Lyon where she started to restore furniture, took up interior design but carried on painting on commission. Encouraged by her partner she finally took the plunge to dedicate herself completely to her first love - painting. A move which saw her blossom.
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BANKING
SEPA – Times Business article by Rebecca Hanson
February 1, 2014 might seem a long way away, but businesses had better start to look at the payment processes now as they may be underestimating how much they may have to do by then. The deadline of February 2014 was set just over 12 months ago in an effort to add a sense of urgency to the planned adoption of the Single Euro Payments Area project to streamline electronic payments across the EU27 countries, Switzerland, Liechtenstein, Norway, Iceland and Monaco. Let’s start with the positives: The introduction of SEPA means that businesses no longer need to have accounts in several countries. Making international payments within the SEPA area is now just as easy as making payments within Malta – and costs the same. To be clear, payment institutions and banks, can still differentiate their payment products and services by determining their own charging structures, but the charge distinction cannot be based on whether the payment is reaching an account in Malta, or one of the other SEPA countries, and will be based more on the particular features of the payment product or service. However, the rights and obligations relating to these payments will also be the same, regardless of whether they are cross-border or not. This will make it easier for companies, as payment procedures will be simpler and it will be easier to reconcile payments and to manage bank accounts. It will also foster competition as the pricing structure and comparable costs of payment services offered by banks will be much more transparent. Businesses will need to look at their payment and collection procedures: how much they need to do to be ready for the changeover depends greatly on how automated
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these are. For example, if you use online banking to make individual payments, you probably only need to make minor changes. But if you make bundled payments, sending instructions for multiple payments to be made, then we would certainly encourage you to get in touch with the providers of your software management as soon as possible as you may need to make substantial changes. After the deadline, unless you are a microenterprise, you will need to use the ISO 20022 XML message standard. This standard is also used for the banks to communicate back payment related information to your business. This opens up many possibilities, optionally allowing you to automatically reconcile your payment processes. For companies that regularly deal with many payments, this can offer a big boost in internal efficiency.
Editor’s Note
The most important change will be to convert all your databases which include bank and account information to the IBAN format as domestic account numbers will cease to be used after the cut-off date. Since other companies will be doing the same, it is important to start quoting your own IBAN and BIC on your invoices and other payment-related correspondence. As from February 2014, you will no longer be able to make Direct Credit transactions but will need to convert these to SEPA Credit Transfers. Since there were nearly 4.6 million such transactions made in 2011, there is clearly a lot to be done on this front. Banks have also been preparing for this transition, and most have already put systems in place that talk SEPA and XML. Banks are also trying to differentiate themselves on the level of support they are giving their business customers. If you haven’t spoken to your bank about SEPA, the time to do so is now.
TEU
Ivo Camilleri is Executive Head for Electronic Banking at Bank of Valletta. His work experiences have encompassed the areas of technology, electronic payments, cards, mobile payments and the Bank’s 24x7 services.
CORPORATE AVIATION
DC Aviation - Business Jet Handling
Malta is slowly but surely becoming a hub for corporate aviation. Corporate and business aviation is a recent development on the island of Malta. There is almost one hundred and fifty aircraft on the Maltese register, a third of which are business aircraft on a Maltese Air Operator Certificates. Despite the world’s economic woes and everyone’s pessimistic outlook on corporate aviation, Eurocontrol statistics show that Malta continues to register growth in business aviation aircraft movements. In spite of the fact that Malta is still waiting for its General Aviation Terminal companies like DC Aviation Malta continue to thrive in this environment. DC Aviation
Malta was established in 2008, its main focus being to provide a high quality handling service to corporate aviation at Malta International Airport. On Friday, 14th Jun 2013, DC Aviation Malta celebrated its 5th anniversary at the Xara Lodge with the support of Attard and Co Foodstuffs Ltd. and under the patronage of Minister Karmenu Vella. One of the largest operators and management companies of business aircraft in Europe, its philosophy is, “What is not good for our own operation is not good for our customers”, says Stanley Bugeja Managing Director of DC Aviation in Malta. Five years down the line and in excess of one thousand seven hundred aircraft handled later, “Passion for Quality, is more than a catch phrase for us, it is our credo. It is this that motivates us when providing services at Malta International Airport. We are a dedicated corporate aviation handling provide indispensable crew facilities at the airport departures terminal” says Sandy Cassar Cardona Operations Director of DC Aviation Malta. The company has invested heavily in its Maltese operation, it believes firmly in its employees who are all specifically trained in the handling of business and corporate aircraft. DC Aviation Malta is also a founding member of the Malta Business Aviation Association, of which Mr. Bugeja is currently the president, further demonstrating the organisations commitment to the industry’s growth in Malta. “Although our dream is to one day have a Fixed Base Operation(FBO) at Malta International Airport, we have done all that is possible for our customers not to feel the lack thereof.” concludes Bugeja. www.dc-aviation.com.mt TEU
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Founding members of the MBAA. Members of EBAA, NATA & NBAA DC Aviation Ltd. Malta International Airport PO Box 23, Gudja, LQA 5000, Malta Phone +356 21 37 5973 Fax +356 21 37 5958 dispatch@dc-aviation.com.mt www.dc-aviation.com.mt
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OPINION
Ivan Bartolo BOV Top Entrepreneur of the Year 2013 Company: 6PM Holdings PLC Job title/description: CEO Professional Expertise: Agile mentoring and coaching. Assisting businesses derive benefit from their business projects and individuals participate in Agile projects so as to derive personal satisfaction, personal growth and confidence. Quote: There are no secrets to success. It is the result of preparation, hard work, and learning from failure. – Colin Powell
Many people would very quickly conclude that the rewarding jobs are those which pay well. While earning a good salary is important one must truly understand that what makes a job rewarding is in effect whether through the job an individual gets the opportunity to have a positive impact in people’s lives. I have been in ICT since 1983, a good 30 years now. My rewards did not start coming before five years ago. Before then, yes I earned good money; I did new things and travelled all over the globe. I did enjoy it and I am grateful, but I always felt there was something missing. Since 2008, on the 6PM ticket I have been getting involved and started to specialize in Health Solutions. I have finally found job satisfaction and started to feel rewarded. It is a sensational feeling to have the opportunity and the ability to positively influence people’s quality of life. Having had the opportunity to invest in the development of solutions such a StrokePAD is an amazing opportunity. StrokePAD is a solution that supports Clinicians when threating a Stroke Patient in the first four hours in A & E. The better and more precise the treatment is in the first four hours, the better quality of life
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REWARDING Jobs by Ivan Bartolo
the stroke patient will lead thereafter. Another opportunity came about when we at 6PM invested in Climate HIV. Having the opportunity to make a positive impact with such a disease is amazing especially when the patient is a newly born innocent child.
once an alert is received. How it pains me to see elderly people who are physically well and healthy but lost a certain amount of confidence through a bad experience (e.g. a simple fall) and they end up being institutionalized in a residential home.
Since 2011 I have also been actively involved with the development, implementation and marketing of emCare services. In partnership with Care Malta, 6PM has invested in the development of this platform. Having Care Malta on board has been a blessing. Working with people that have 20 years’ experience in taking care of the elderly has surely been the secret of our success with emCare. emCare provides an eCare and eMonitoring service. eCare is the monitoring of an environment while eMonitoring is the monitoring of the human body.
eMonitoring is what we all need. In the same way we service and monitor our cars, utensils, boats and many other objects we possess, we seem to be missing the wood to the trees. Why? We truly do not invest time and commitment in to taking proactive care of our bodies, our own health. emCare’s eMonitoring solution enables people to daily measure their blood pressure, blood glucose, weight and much more. These eMonitoring care tests are done in the comfort of one’s home and using technology the user starts to build their own medical record. The user can also ask their Doctor to have them monitored and in the case of any test results falling out of the acceptable thresholds, the Doctor will be notified via e-mail by emCare.
eCare is like the Telecare Service that we have been used to for the last 20 years. eCare is Telecare plus. This service is not just about a panic button, it is also about a fall detector, a pill dispenser, flood, gas, smoke detectors. In other words, eCare is the solution that enables people to live confidently and longer in the community. eCare runs a 24 x 7 Care Center that provides the necessary care and attention
Rewarding jobs are those that provide the opportunity to make a difference in people’s lives. I believe that every job provides this opportunity, only if we care to look for it, embrace it and above all have an attitude that the financial reward is not the purpose for working. TEU
FINANCE NEWS
FINANCEMALTA’S ANNUAL CONFERENCE DELIVERS MALTA’S INTERNATIONAL BUSINESS MESSAGE FOR CONTINUING GROWTH OF MALTA’S ONSHORE EUROPEAN FINANCIAL CENTRE. FinanceMalta, the public-private partnership set up to promote Malta’s financial services sector, successfully concluded their 6th Annual Conference recently at the Corinthia San Gorg which was exceptionally well received by over 300 delegates and speakers who focused on key developments in the global financial services industry. The conference drew heavy attendance from the EU’s burgeoning investment community, as well from around the world. The conference featured speakers from the European Central Bank, Government, Malta Financial Services Authority (MFSA), economic ratings houses such as Bloomberg, The Financial Times, leading hedge funds, investment officers, investment consultants, family offices and professional practitioners, amongst others. Grouping together policy makers, stakeholders and practitioners the participants gathered for an expanded programme of industry updates, workshops and discussion of key issues underwritten by attracting a hub of sponsors who support the event. Malta’s ‘open for quality business’ message was delivered directly through the active participation of Finance Minister Dr. Edward Scicluna as keynote speaker and Conference Chair Kenneth Farrugia, FinanceMalta’s Chairman.
FinanceMalta’s Annual Conference welcomed over 300 delegates and speakers who focused on key developments in the global financial services industry and Malta’s role as a growing European Financial Services Centre.
Professor Anthony Fisher, an adviser to the MFSA, pointed out that investors are looking for financial institutions that are solid and for jurisdictions which offer quality of life, a sound system of regulation, robust banks, a strong and independent political system and a competitive tax framework. He underlined that Malta has all these qualities to fill the needs of being a financial hub in the Mediterranean region and that the country can play a pivotal role and take advantage of its strategic location while positioning itself as a platform between Europe, Africa and the Middle-East, which offer potentially vast opportunities for trade and services. “I thought the conference was of a really high standard and very well run,” said Prof. Fisher. FinanceMalta’s Head of Business Development Bruno L’ecuyer says, “Having won international respect for the excellence of its financial services industry and establishing itself as one of the safest and best run financial centres in Europe, Malta’s legal and regulatory framework now holds major appeal. Our Annual Conference cemented the key benefits Malta offers to international investors, such as a strong and diversified economy, a motivated, trained and highly-skilled workforce, top class ICT infrastructure, market access, stable social and political environments and a balanced financial regulatory regime.” Event chair Kenneth Farrugia adds, “Without the support of the finance community we would not be able to deliver such a rich event year after year, with the greatest stature of global thought leaders taking part from the main stage and in workshop sessions; as ever, FinanceMalta is thankful to its sponsors for making it possible and for the faith they have in our goals and objectives.”
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NEWSMAKERS
PRESIDENT AND PM WELCOME HSBC EUROPE CEO The recently appointed HSBC Bank Malta Executive Director Brian Robertson, who is also Chief Executive Officer of HSBC Bank plc, met with President of Malta George Abela and Prime Minister Joseph Muscat on two separate courtesy visits. During these visits Mr Robertson was accompanied by the CEO of HSBC Bank Malta, Mark Watkinson. This was Mr Robinson’s first visit to the island. During the visit he attended his first meeting as Executive Director of the HSBC Malta Board.
MIGRATION AND ASYLUM: SPEECHES AND DECLARATIONS ARE ALL WELL AND GOOD, BUT SOLIDARITY MUST TRANSLATE INTO ACTION.
As Chief Executive Officer of HSBC Bank plc, Mr Robertson is responsible for all the Group’s operations in the United Kingdom and Continental Europe, including Malta. He is also a Group Managing Director of HSBC Holdings plc, a member of the Group Management Board, and also Chairman of HSBC Life (UK) Limited. He has been with HSBC Group for 38 years and has extensive international experience, having worked in the Middle East, Hong Kong, USA, the UK and Canada.
A few hours after being officially confirmed as one of Malta’s Members of the European Parliament, Dr Roberta Metsola called on the European Union to take effective, permanent and concrete action to tackle migration and asylum issues. During a debate with EU Home Affairs Commissioner Cecilia Malmström, MEP Metsola called for a definitive date for the Commission to set up a permanent voluntary relocation scheme within the European Union. Relocation is the transfer of beneficiaries or applicants for international protection from one Member State to another, with the receiving Member State assuming responsibility for examining the application for international protection or for integration measures. On 2 December 2011, the European Commission adopted a Communication on ‘Enhanced intra-EU solidarity in the field of asylum - an EU agenda for better responsibility-sharing and more mutual trust’, in which it said that it would propose a voluntary permanent scheme for relocation of beneficiaries of international protection. To date this has not been proposed. Dr Metsola emphasised that there can be no compromises on human rights and that while Malta should continue to ensure that its responsibilities and obligations with regard to immigration are respected, it was time other Member States did more to alleviate the disproportionate pressure on Malta. “Speeches and declarations are all well and good, but solidarity must translate into action” added, Dr Metsola
President of Malta (Centre) together with (from left) HSBC Malta CEO Mark Watkinson, his wife Sarah, HSBC Europe CEO Brian Robertson and his wife Patricia.
6PM PLC WINS MOTOROLA SOLUTIONS’ MOST INNOVATIVE MOBILITY SOLUTION AWARD The award recognizes 6PM plc for outstanding performance using Motorola RFID technology for a truly unique innovative paper management and asset tracking collaboration with the Healthcare Industry. 6PM plc has been named as winner of Motorola Solutions’ Most Innovative Mobility Solution Award for 2012. This prestigious award has been given by Motorola Solutions in recognition of outstanding performance across the year.
LAFERLA INSURANCE AGENCY LIMITED AND AIR MALTA ANNOUNCE COMPETITION WINNER Maria Pisani was the lucky winner of two Club Class return tickets to London Heathrow. The competition was jointly organised by Laferla Insurance Agency Limited and Air Malta. Management officials from Laferla Insurance Agency Limited greeted Ms Pisani at the company’s Head Office in Valletta, congratulating her and wishing her a pleasant trip. For more information, visit Laferla Insurance Agency Ltd and Air Malta on Facebook. Laferla Insurance Agency Ltd. Assistant General Managers Keith Laferla (left) and Mark Laferla Jr (right) congratulating Maria Pisani.
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KEY FACTS • A Motorola Solutions reseller since Feb 2012, 6PM plc was one of only a handful of companies in the UK and Ireland region to receive an award from Motorola Solutions at the company’s 2012 Local Partner Conference. • Award winners successfully achieved a key performance benchmark in 2012, such as the highest percentage revenue growth over plan, the most innovative solution, the greatest year-over-year revenue growth or the highest percentage growth within a peer group. Please visit our new website at: www.6pmsolutions.com
NEWSMAKERS
APS FUNDS SICAV FIVE YEARS OF SUSTAINED SUCCESS. In a scenario characterised by severe worldwide economic downturns, many were sceptical about companies’ financial performances and survivability. However, this negative scenario did not impact adversely the funds of APS Funds Sicav. In fact APS Funds Sicav announced during its 5th Annual General Meeting that after five years of continued success both of its funds managed to register further significant growth.
VOLKSBANK SPONSORS RESTORATION OF GHERIEXEM FOUNTAIN L-Ghajn ta’ l-Gheriexem is one of the fountains forming part of the old Roman water system in the Rabat area, already mentioned in University records of the 15th century. Over the centuries, there have been numerous reports about misuse and malfunction of the fountain, which were taken care of by the knights. However, the monument had recently reached a point of deterioration which could no longer be ignored. In March 2009, Volksbank responded to the appeal of Rabat Local Council to save one of the locality’s heritage sites. A foundation was established and the Gheriexem Fountain, situated on the arterial road leading from Domus Romana to the Nigret zone, was chosen as first object for restoration. “Volksbank has been very well accepted in the Maltese community”, Managing Director Herbert Skok explained the background of the sponsorship and that the Bank would like to strengthen its very good connections within the community by looking for a way to give something back.
“The financial results obtained are very encouraging”, Dr. Mario Felice, Chairman of APS Funds Sicav, stated while making reference to the funds’ performances. The APS Income Fund, which was launched in 2008, is a fund which invests mainly in Maltese securities. During 2012, this accumulator class of this fund registered an increase in value of 6.54%. This performance indicated that the fund was one of the best performing funds locally. On the other hand, the APS Regular Income Ethical Fund is a new fund that offers a unique possibility of generating good returns whilst adhering to ethical values. This is the first retail fund of its kind in Malta. During this AGM it was announced that since inception 25th July 2012 till end December , the fund returned a growth of 4.2% (annualised 9.66%). APS Funds Sicav has been popular with local investors, and at present over Eur43 million have been invested in the two funds by over 1200 investors. 2013 has also seen a positive start, and it appears that the trend of these last five years of annual double digit growth in shareholders and assets under management will continue. APS Funds Sicav will continue to adopt this successful prudent approach towards investment in the coming years. For more information on the funds, log on to www.apsbank.com.mt/apsfunds.
After more than three years of careful restoration, the Gheriexem Fountain has been inaugurated on Friday 01.03.2013. “Volksbank is very proud to support the restoration of such interesting monuments as the Gheriexem Fountain”, Mr. Skok concluded. “Malta has such a rich heritage and so many historical sites worth conserving that all sectors of society must contribute to conserve, restore and upkeep these national treasures.” APS Bank Head of Asset Management Mr Sandro Baluci delivering a presentation at the APS Funds SICAV AGM
6PM SEEKING TO ENTER NEW MARKETS 6PM is actively seeking to enter new markets with the products and solutions that it has developed in conjunction with the National Health Service in the UK. Italy and Portugal have already shown their interest for such products as CareSolutions™ Climate-HIV, CareSolutions™ Strokepad and CareSolutions™ iFIT. 6PM has now won a contract to lead a pilot project in partnership with Ivan Bartolo EMC for the development of a document and workflow management platform for a hospital in Georgia. It is hoped that this project will lead to further contracts for 6PM in the Caucasian region. The news was given by 6PM CEO Ivan Bartolo during a Stockbrokers’ meeting during which the 2012 financial results were discussed. Mr Bartolo also gave an overview of the developments taking place within
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the 6PM Group at the moment and spoke about the prospects for the future. 6PM, in collaboration with one of the leading technological and consultancy corporations in the world, is now helping igaming companies transfer their servers and infrastructure to Gibraltar, due to the dedicated servers and datacentres that are being hosted there. As a result 6PM has won contracts to service two companies based over there. In view of this 6PM is now in the process of registering the company 6PM (Gibraltar) Ltd and starting to employ people over there. One of its subsidiaries, Vid & Co will also be signing a contract in the UK in the area of revenue leverage audits in the hospitality industry. Ivan Bartolo said that the aim of 6PM is to increase its annuity business from GBP 1.0 million at the beginning of 2013 to GBP 1.8 by December 2013 and thereafter to GBP 3 million in 2014. Such annuity business is being developed through the sales of 6PM products such as iFit, ClimateHIV and StrokePad. He said that 6PM has plans to continue developing new solutions in the health sector, this time in the area of dementia and hepatitis; to continue to grow through acquisitions it plans to make in 2014 and to develop its iFit product away from the health records sector into workforce and patient management.
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Climate change and Sustainability issues are becoming increasingly important in today’s corporate agenda, primarily because it directly impinges on business performance, supply-chain costs, and reputation in the market place. Resource constraints, energy security risks, soaring energy prices, the changing regulatory landscape and stakeholder expectations are few of the challenges that businesses might face in the near future. Forward-looking enterprises turn these threats into opportunities. Other firms just lag behind. Act now. Be part of a better future. At KPMG we understand change. We understand the complexities that climate change and sustainability brings about to your organisation. Our professionals assist clients in various ways, by carrying out preliminary risk assessments, developing sustainability strategies, and providing assistance throughout the implementation and monitoring stages. Contact us Mark Bamber Partner, Management Consulting T: +356 2563 1000 Jan Grech Director, Management Consulting T: +356 2563 1037 kpmg@kpmg.com.mt
www.kpmg.com.mt
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Green is the New Black