Malta Business Review Issue 5 by Adrian Friggieri

Issue 5

h re y nt witp.31 u t m e eaEconopplemnomy f iaLof Theeep ssue Eco c e k e sP Statlel-ande- Malt

pu f th ial n o c e w sp o A und r

cover story

feature

interview

taLKinG Point

Trading the Financial Markets… A Serious Matter Trading with Roberto D’Ambrosio, FXDD Global Director of Sales for Europe p.06

ERC Stories A unique feature from the European Research Council and TEDx Brussels p.13

Looking for the Best In People An exclusive interview with Sir Richard Branson p.22

Lech Walesa: Here’s How to Handle Putin A visceral interview with Polish Solidarity leader and Nobel Prize Winner Lech Walesa p.44

Issue 5

ith e ur y nt w .31 at om me y - p fe Econ pple nom iaL The p su Eco ec of ee ese sP Statell-ande-kMalt

pu f th ial o ec wn sp o A nd ru

cover story

feature

interview

taLKinG Point

Trading the Financial Markets… A Serious Matter Trading with Roberto D’Ambrosio, FXDD Global Director of Sales for Europe p.06

ERC Stories A unique feature from the European Research Council and TEDx Brussels p.13

Looking for the Best In People An exclusive interview with Sir Richard Branson p.22

Lech Walesa: Here’s How to Handle Putin A visceral interview with Polish Solidarity leader and Nobel Prize Winner Lech Walesa p.44

PuBlisher MBR Publications Limited ediTor Martin Vella

MBR Publications Limited

Technical advisor Marcelle D’Argy Smith sales direcTor Margaret Brincat

arT & design Jessica Camilleri adverTising 9940 6743 / 9926 0162; Email: margaret@mbrpublications.net; martin@mbrpublications.net

cover sTory

Trading The Financial MarkeTs… a serious MaTTer Roberto D’Ambrosio, FXDD Global Director of Sales for Europe discusses trading of financial securities, and other fungible items of value

conTriBuTors

BOV; European Research Council; FXDD; HSBC; Malta Stock Exchange; Office of the Prime Minister; PBS; PKF Accountants & Business Advisors; TIP.

sPecial Thanks

Marco Bardazzi; Diane Borg Bascetta; George Carol; Prof Jonathan Coleman; Roberto D’Ambrosio; Rupert Christiansen; Albert Frendo; Werner E Jung; Patrick J O’Brien; Prof Ulf Leonhardt; Piers Manning; Louis Naudi; Sir Christopher Pissarides; Melanie Vella; Prof Tiziana Rossetto; Ingrid Zerafa

PrinT ProducTion Printit

sPecial conTriBuTions

a good reTurn on invesTMenT An interview with Bernard Mangion, CEO of Benestates, the Real Estate company in Malta committed to providing a top service to its clients

ERC StoRiES – ExfoliAting MonolAyERS: opEning A gaTeWay To indusTrial soluTions Jonathan Coleman, one of the world’s leading research scientists in nanotechnology, launches this unique and exclusive feature, courtesy of the European Research Council and TEDx Brussels. We also publish stories by Tiziana Rossetto, Professor in Earthquake Engineering in the Department of Civil, Environmental and Geometric Engineering at UCL, Ulf Leonhardt, Professor of Physics with the Weizman Institute of Science and Sir Christopher Pissarides, winner of the 2010 Nobel Prize in Economic Sciences and Regius professor of Economics at the London School of Economics.

oFFices 41B, Wayne, Triq il-Herba, Birkirkara, BKR 2322 TelePhone +356 2149 7814 quoTe oF The MonTh “The purpose of life is to contribute in some way to making things better”- Robert F. Kennedy

The MalTa sMe suMMiT & B2B neTWorking ForuM A double-page photo-montage of the SME Summit held at the Portomaso Suite, Hilton Malta, and organised by MBR Publications Ltd.

John Fitzgerald Kennedy, commonly known as Jack Kennedy or by his initials JFK, was an American politician who served as the 35th President of the United States from January 1961 until his assassination in November 1963.

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

ExCluSiVE intERViEW of thE Month 22

looking For The BesT in PeoPle

An exclusive interview with businessman, investor, entrepreneur and intrepid adventurer Sir Richard Branson, as we unravel the man behind the myth

CONTENTS Focus

BESt pRACtiCE- pARt 2 you EithER lead,FolloW, or geT ouT oF The Way Our resident business management expert and contributor Werner E Jung continues to build his exceptional case about best practice

The secreT hisTory oF The chrisTMas carol A special Christmas narrative by famed author Rupert Christiansen about the origins of our favourite Seasonal songs

sPecial FeaTure on igaMing 33

sTaTe oF The econoMy

We present a special pull-and-keep supplement with a rundown of the Maltese economy, foreworded by Prime Minister dr Joseph Muscat, against relatively subdued global economic backdrop

Talking PoinT

FuncTionaliTy & connecTiviTy Our annual VIP interview with Malta Stock Exchange CEO Eileen V Muscat, who talks about the largest technology project currently underway

lECh WAlESA: hERE’S hoW to hAndlE putin An exclusive and telling with Polish Solidarity leader and Nobel Prize Winner Lech Walesa

a neW generaTion oF leadershiP Our young, talented and resourceful contributor Melanie Vella, who writes about the new genre of business leader

hoW To Make your Money groW saFely Ingrid Zerafa discusses investing wisely to safeguard the future

Malta Business Review

editorial he theme of TEDx Brussels this year has been ‘The Territory and the Map’. We are somewhat proud to be associated with the European Research Council, having invited us to cover each ERC speaker who represented a different scientific field and nationality. From oceanography to nanotechnology to invisibility, the ERC TEDx talks covered new ground at the frontiers of human knowledge. The speakers gave an insight into their research and explained how their pioneering ideas, supported by ERC funding, are being realised. Thrilled to present a first-time report with the participation of four ERC laureates in this TEDx Brussels event is testament to the MBR’s ability to inspire minds with passionate and innovative research leaders on stage. TEDx talks are a most welcome exercise of popularising science and we hope you enjoy to a new strain of thought-provoking presentations. At this time of year we often pause to thank a very important group of people — our customers. I encourage you to show your heartfelt thanks to another very important group of people — your employees. Without them, the success of the past year would not have been possible. They have probably helped us meet some pretty significant challenges and get some impressive wins. They have pulled through when the unexpected happened and delivered on commitments that were important to your customers, you and the company. There have been times when they have put in the extra hours and taken time away from their family and friends. While recognition programs can be important, they can’t take the place of a true, deeply felt and honest expression of thanks. The Best Leaders are Humble Leaders! There is only ONE business publication that brings you the best, the most valuable, relevant and topical information – Malta Business Review - where we strive to create first-class leadership development content for managers at all levels in corporate business organisations. We leverage the management insight, thought leadership, and expertise of our top level authors to provide content and reading material that is a cut above the rest. This month we bring you the best interviews and stories that transform people, stories of innovation, creativity, entrepreneurship and above all stories engaging human lives. Our exclusive interview of the Month is with Sir Richard Branson, who talks about moving forward with Virgin Galactic. We also bring you a special feature entitled ‘State of the Economy, foreword by the Prime Minister Dr Joseph Muscat. In it we interview the Finance Minister Prof Edward Scicluna and give an overview of our economy courtesy of PKF Accountants. Lech Walesa, former Solidarność trade unionist, freedom fighter and Polish ex-President gives us a piece of his mind with his well-respected opinion in an exclusive open and scathing interview. Eileen V Muscat, CEO at the Malta Stock Exchange also falls under our interview magnifying glass. Indeed, this edition is jam-packed with premier contributions from top experts and award winning journalists, including a special feature about the Christmas Carol by Rupert Christiansen. As you enjoy the read, I wish you and all your loved ones a merry Christmas and positive New Year.

56 MARTIN VeLLA www.maltabusinessreview.net

Trading The financial markeTs… a serious maTTer by Roberto d’Ambrosio, Director of Sales – Europe, FXDD Global

Trading the financial markets is one of many ways to diversify an investment portfolio using a de-correlated asset class mitigating risks and even enhancing the possibility to profit from a bearish market

COVER STORY

effectively, the easiness of access to such instruments may be insidious to those who do not tackle the matter with the necessary education, right mind-set and risk awareness. Trading the financial market may be for different purposes, ranging from pure speculation to portfolio hedging, and trading decisions may be taken using different approaches: fundamental analysis, technical analysis, quantitative trading or automated trading. Every trader can find his own approach that will depend on his personal attitude, risk tolerance and skills, but, whatever his choice is, there are three main points that may, and will really make the difference: money management, mental attitude, and the choice of the right tools and partners. When it comes to money management, the whole world of financial trading education and trainers will agree; managing risk in financial trading is vital! The need to quantify and set the stop loss and the related take profit with a reasonable risk/reward ratio for each trade is repeated over and over again as a mantra by all financial gurus and those who want to follow suit. Indeed the discipline in setting and respecting such limits in order to deploy an effective and risk controlled trading strategy is very important. But there is another aspect that is as vital, if not more, when it comes to an effective money management strategy: the position sizing of each trade!

t is undoubtedly an effective and exciting way to deal with different markets, but, before engaging in such activity, the trader has to educate himself on market fundamentals and behaviour, fully understand the related risks, measure his own risk tolerance, and choose the right markets to trade and the right tools to deploy his strategies. Nowadays, every trader has access to trading instruments and tools that, only a few years back, were restricted to Institutional and professional financial traders. Markets such as the forex exchange, stock indexesâ&#x20AC;&#x2122; futures & options have become available to the public investor who can now invest into these products even with a relatively small amount of money. If on one side this is an incredible opportunity to manage the financial portfolio more

Mastering the calculation of the right trade size on the base of personal risk tolerance, free trading capital and volatility of the instrument on which the trade will be deployed, as all professional and institutional traders know very well, is what really makes the difference between successful and sustainable trading and disappointing and demotivating results. Failing to deploy an effective money management strategy, both in terms of risk management and position sizing, may harm even the best trading strategy ever as it is strongly related, especially for novice traders, to the second important aspect involved in financial trading: mental attitude. If knowing the market and trading technique fundamentals is indeed essential to become a profitable trader, the psychology involved into trading activity is even more essential. It has been confirmed many times that trading is by and large composed of 30% knowledge and education and 70% right mental attitude. Trading involves the need to develop very particular skills related to the peculiar kind of challenges that this activity involves. Trading the financial markets generates a whole set of emotions that

Malta Business Review

spread from fear to greed and that may only be amplified by wrong money management strategies. Especially in the early stage of trading experience, missing the position sizing will lead to an excessive level of these conflicting emotions. The consequence is that, given the psychological pressure, the trading plan will not be respected and most probably the trader will end up by closing profitable or losing trades too soon, thus affecting the risk/reward ratio of the strategy, or even closing with a loss a trade that would have been profitable otherwise. Or worse still, he may end up by not respecting the stop loss and averaging the losing position, hoping that the market will finally reverse and absorb a loss that was too great to be borne.

Trading the financial markets generates a whole set of emotions that spread from fear to greed and that may only be amplified by wrong money management strategies

Last but not least, the right choice of tools that one uses for his trading, and the choice of the broker partner, play an essential role. Strategies may range from long term trading, to scalping and to complex strategies involving sophisticated instruments such as options. We at FXDD believe that the trader needs to feel comfortable in using a platform that really suits his trading habits and strategies and therefore we are happy to offer our traders one of the widest range of trading platforms in the market: our proprietary swordfish platform, the award winning MT4 platform in different price tiers which now also offers CFDs on index futures, the Jforex platform, Power Trader and Viking Trader, both connected to Currenex, which is one of the deepest liquidity pools available. We also have available the OptionTrader platform, which offers the trader the possibility to use vanilla options on the forex market and allows managing both option and spot positions from the same platform, thus providing a very efficient and powerful tool for the more sophisticated traders. For those who want to have a more investmenttype approach, or need time to learn but still want to invest through trading, we also offer automated trading platforms, which allows the investors to take advantage of the automated deployment of professional tradersâ&#x20AC;&#x2122; strategies onto their account, whilst still remaining in full control of their investment. www.maltabusinessreview.net

TODAY’S DECISION IS TOMORROW’S LEGACY. Lasting success goes beyond numbers and percentages. At HSBC we have a unique global perspective, which allows us to see the extraordinary impact that today’s business decisions can have in the future. That’s why we focus on building long-term partnerships with our clients, so that we can help them move forward in the right way. www.hsbcnet.com/growth

IT’S NEVER JUST BUSINESS

Approved and issued by HSBC Bank Malta p.l.c.,116, Archbishop Street, Valletta VLT1444.

COVER STORY

FXDD also delivers dedicated services and tools to professional and institutional investors and traders, such as Money Managers, Financial and Investment Institutions, Asset Management companies and Hedge Funds. These clients often require specific set ups and tools which will be analysed by our dedicated teams of Support and IT professionals in order to deliver tailor made solutions. FXDD has always been at the forefront of trading technology and have consolidated relationships with the most important liquidity providers worldwide, and with the latest acquisition of Boston Technology, the leadership in Institutional Service has been further reinforced. All this arsenal of different trading platforms and tools would be very difficult to master without a well-trained, trader oriented group of professionals ready to deliver the best support and guidance possible. Notwithstanding the enormous possibilities that online technologies deliver to traders, having a reliable, trained and competent professional by your side is a decisive advantage. People still make the difference. This is what FXDD offers to its Traders, along with the choice to establish its global operations in Malta. The trading industry and the professionals working in it have a great responsibility when it comes to how they drive their offer to the investors. The market has in the past experienced very aggressive market campaigns from some financial intermediaries, which drove the wrong message around especially to those that did not have the necessary awareness of all aspects involved in financial trading, and the research for the “holy grail” at the lowest possible cost has been leveraged in a

Malta Business Review

manner to attract more investors to an area which unfortunately ended up giving these so called investors disappointing results.

applying and enforcing all regulations, thus sustaining a safe and reliable environment for financial intermediaries and investors.

If these kind of practices are reprehensible, nonetheless the investor still has to play his part in protecting himself from possible misleadings; when something is too good to be true… it is simply not true.

Choosing a regulated broker, such as FXDD Global, is strongly advisable to all traders, whether retail, professional or institutional, in order to engage and focus on the trading activity being sure that all parties involved are doing what they are bound to do and the invested resources are safe.

Having a reliable, trained and competent professional by your side is a decisive advantage. People still make the difference With the right education and training everyone can be a profitable trader, but everything must start from being fully aware of what financial trading is really about, have reasonable expectations on the outcome of the trading activity, and choosing the right tools and the right partner to deploy it. The regulation in Europe and the US, (the rest of the world is rapidly following) has done a lot to protect the investors from all threats that may arise from improper commercial practices and to ensure a safe environment through a vast set of regulations and a constant, deep scrutiny of all regulated entities involved into the process of accessing the financial market. To this respect, Malta, and its regulator, the MFSA, have done an outstanding job in

FXDD Global is committed to give the guidance and support to all those who entrust us with their financial trading needs, always enhancing our offer in terms of trading technology in order to deliver the best service and trading experience possible to our traders. We are always more than happy to discuss all matters that may help you in being a successful trader. MBR All Rights Reserved | Copyright 2014 LICENSING STATEMENT: FXDD Malta Limited is licensed to provide investment services by the Malta Financial Services Authority. Registered Office: K2, First Floor, Forni Complex, Valletta Waterfront, Floriana FRN 1913, Malta HIGH RISK WARNING: Foreign exchange trade carries a high level of risk that may not be suitable for all investors.

EDITOR’S NOTE Mr Roberto d’Ambrosio has been with FXDD Malta Limited since May 2013 and today holds the role of Director of Sales – Europe. He is a professional with more than 20 years’ experience in Financial Services, Stocks, Futures and Forex. Formerly, he served as an institutional advisor to Specialized Investment Funds and Hedge Funds, focused on automated algorithmic trading. Mr d’Ambrosio is a technical analyst, highly knowledgeable on trading systems, and a developer of money management systems.

www.maltabusinessreview.net

A Good Return on Investment by Martin Vella

Bernard Mangion is Managing Director of Ben Estates Limited, now running into the 6th financial year of operation. Before Ben Estates, he was involved in the real estate sector as a property consultant. He also previously worked selling upmarket properties specialising in providing plots for development, historical palazzos and luxury seafront apartments. In his current role, Mr Mangion focuses on increasing sales and lowering costs, and growing the Ben Estates brand through trademark sales

MBR: How would you describe Benestates and how is it different to other estate agencyâ&#x20AC;&#x2122;s? BM: Ben Estates is a unique agency in many ways. We are reliable, honest and strive to get the best deal for both the owners and buyers. Hard selling does not exist in fact I am totally against it. We pride ourselves with strong core values such as honesty, which is implemented within our team on a daily basis and therefore brings that family bond between all agents. These 10

same values are adopted when out on the field with Clients. MBR: What market does Benestates specialise in and what makes the brand stand out there? BM: We work on all types of properties; however we are focused on properties ranging from 90,000 euro to 450,000 euro whilst on letting we are focused on properties between 450 euro /month and 1500/month euro.

MBR: What do you think makes Benestates so popular as a first choice Sales/Letting Agency? BM: Real estate is probably the most competitive business that exists on the island. We canâ&#x20AC;&#x2122;t afford to make mistakes or loose clients, therefore our Sales /Letting agents are highly focused to ensure that when a client has sent an enquiry, that client must have his home found as soon as possible.

Real estate

Malta Business Review

Building a brand makes it easy for people to remember you been hit by the recession and everyone around me thought I was insane opening a business during such a crisis. However, my persistence and perseverance brought me to where I am today.

MBR: How do you see the business growing and developing to keep up with the lettings market? BM: The secret to success in real estate is to have a powerful database, meaning a large portfolio of properties that are being updated constantly and knowing which ones are coming available. Letting is so fast and competitive, that the main struggle is finding properties which are available. Our aim is to build a strong relationship with the landlords to facilitate that process. MBR: What kinds of properties do you let out? BM: Anything that a client seeks for. MBR: Is letting out a property a good solution for someone who is relocating but doesn’t want to sell? BM: Yes definitely, nowadays letting gives a good return on investment therefore one would rather own a property which gives at least a 5% ROI rather than earning a

low percentage on interest when placing money at the bank. Also we do offer a reliable property management company which is a sub company of Ben Estates in which one can keep his mind at rest whilst he /she is abroad and can literally leave everything in our hands. MBR: Do you see any expansion of offices in the near future? BM: Yes definitely, my idea is to start franchising and increase the number of offices around the island. I would like to give the opportunity to young entrepreneurs who want to manage or own a Ben Estates Branch. MBR: What is your greatest achievement and what made it so special? BM: My greatest achievement is that I built my own business from scratch and with no one’s help. When I first registered the company end 2008, Malta had just

Well I can’t say that it was easy, as I spent the first two years working till the early hours of the morning. Due to all the stress, responsibility and pressure, many times I felt that I was about to fail. However, having a strong character helped me to keep focused and determined as I knew that my goal will be reached. I slowly but surely climbed my ladder to success. I can never say that I have reached the climax as I am still very young and there is a long road paved ahead of me. The industry is very competitive; therefore I must continue my hard work to keep growing. MBR: What do you feel it takes to be successful in the industry? BM: If you take care of your colleagues, in turn they will take care of your customers, thus your business will take care of itself. MBR: How do you see the commercial real estate markets evolving in the future? BM: Commercial real estate has exploded. Many people and companies are always on the lookout for new ventures so that they can expand their businesses /ideas. These in turn require commercial premises therefore that will involve the assistance of a professional real estate agent to help them find the ideal premises to suit their needs. MBR All Rights Reserved / Copyright 2014

EDITOR’S NOTE Bernard Mangion is Managing Director of Ben Estates Limited. Before Ben Estates, he was involved in the real estate sector as a property consultant. He also previously worked selling upmarket properties specialising in providing plots for development, historical palazzos and luxury seafront apartments. In his current role, Mr Mangion focuses on increasing sales and lowering costs, and growing the Ben Estates brand through trademark sales.

www.maltabusinessreview.net

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Feature: erC StorieS

Malta Business Review

A New GeNerAtioN of LeAdership As Europe continues to confront the consequences of the 2008 financial crisis it becomes ever-more important to fathom not only how Europe can return to productive levels of employment, but why it is failing to do so. Professor Pissarides’s ERC research examines both what kind of jobs Europeans do and future trends in employment efforts in this area, there has been little research into employment activity by sector: work which is vital if we are to better understand the effect of policy on employment patterns. We need to learn not only how many people work but also what kind of jobs they do. Beyond univerSity

Shaping employment policieS Exploring not only the factors that influence total job creation but also the sectors that attract most jobs has obvious implications for policy-makers. The aim is to make policy recommendations based on a clearer understanding of how European labour markets function. Prof. Pissarides offers the example of Sweden which “creates twice as many jobs in social sectors like healthcare or childcare as Italy. This partly explains why Sweden has more overall employment than Italy, especially of women. Preliminary research tells us that a main factor behind this difference is Sweden’s social policy which heavily subsidises social care, whereas Italy’s subsidies are miniscule.” The results of this research are still preliminary. Early observations have revealed that Europeanwide patterns disguise a lot of interesting differences between countries. Women are key to these differences. The UK and the Netherlands have labour market policies which privilege parttime jobs, whereas Scandinavia subsidises jobs in health, care and education: all traditionally female dominated areas. These findings could have implications for future female employment rates because they offer a policy model for how to encourage women into work. This research builds on previous work on European employment trends. Despite existing

Prof. Pissarides explains that this work is of great significance beyond academia because “it is about citizens’ jobs and their wages. Most citizens spend the majority of their time in their place of employment. Family welfare depends on the income generated in those jobs. Knowing how many and what kind of jobs a country can support is essential to understanding how we can improve ordinary citizens’ employment situations.” Prof. Pissarides’s research into labour economics is driven by the desire to understand and explain problems. When he began, published work in this area said very little about how to model solutions to the problems being described: “We learned several different approaches, each with its own conclusions and policy recommendations, but we were never told which one was right and which wrong. I decided to start my research by ignoring all those, starting from a new beginning and then, when I had my tools, checking where the other approaches could be fitted.” Prof. Pissarides describes himself as working “best in an office without music or other interruptions”: “Just an empty desk in front of me populated only by pen and paper or a laptop. The biggest threat to that ideal environment is the internet and the many things that it brings you: email and access to websites connected with work and some not so connected. Of course, I am not blind to the benefits of the internet: it is indispensable in my work. But frequently it takes more discipline than I can muster to use it efficiently before it takes over my whole being.”

the origin of ideaS Economics was not his first choice: “It was a coincidence. I never planned to do it as a young man. I much preferred sciences or architecture. But when my parents told me that I should become an accountant I reluctantly agreed on condition that I do it via an economics degree. When doing economics I discovered that it satisfied my curiosity for scientific discovery. After this I stuck with it.” Prof. Pissarides traces the origins of his current research back to the moment when he wrote “two simple equations that could represent the famous Beveridge curve (the empirical relation between unemployment and vacancies).” “I could see them working exactly in the way empirical labour economists described it and as candidates to open up the whole area of research in the study of markets with frictions: markets that do not jump to full employment in the way described by mainstream theory.” This was the beginning of a publication cited as the origins of the research which won Prof. Pissarides the Nobel Prize in 2010. Despite its significance, he describes it as a “eureka moment but not of the kind that makes you run naked in the street. Just as well I guess, London is pretty cold, not to mention other potential hazards.” Prof. Pissarides characterises the effect of the ERC grant as enabling you to “focus on one big issue and providing you with the support that you need to pursue it. Every single thing that they offer contributes to the research: from the administrative support, through the assistants and collaborators, to the time release that they negotiate with your institution. I am very fortunate to have it.” MBR

EDITOR’S NOTE Sir Christopher Pissarides is the Regius Professor of Economics at the London School of Economics, Professor of European Studies at the University of Cyprus and Chairman of the Council of National Economy of the Republic of Cyprus. He specialises in the economics of labour markets, macroeconomic policy, economic growth and structural change. He was awarded the 2010 Nobel Prize in Economics, jointly with Dale Mortensen of Northwestern University and Peter Diamond of MIT, for his work in the economics of markets with frictions. Prior to that, in 2005, he was the first economist outside the United States to win (jointly with Dale Mortensen) the IZA Prize in Labor Economics. Prof. Pissarides has written extensively in professional journals, magazines and the press and his book Equilibrium Unemployment Theory is an influential reference in the economics of unemployment and has been translated into many languages. He is frequently quoted in the press on issues concerning the Eurozone and the future of European integration. He is an elected Fellow of the Econometric Society, the British Academy, the Academy of Athens, the Academia Europaea and several other learned societies, and is a Lifetime Honorary Member of the American Economic Association.

www.maltabusinessreview.net

Feature: erC StorieS

Malta Business Review

The afTermaTh of a Tsunami A research background in earthquake engineering seems at first sight like an unusual fit with studying tsunamis. But on her return from Sri Lanka in the wake of the 2004 tsunami, Professor Tiziana Rossetto discovered that very little research had been done into the effects of tsunamis on coastal infrastructure and she wanted to find out more the “Boxing Day” tsunami (2004) and the tsunami which hit Japan in 2011. In the Indian Ocean crisis, whole communities were swept away by the waves. In Japan, the tsunami caused the meltdown of three of Fukushima’s nuclear reactors. In a finding of particular relevance for this project, it was determined that the plant could have been better protected against natural disaster. It is precisely this kind of planning which interests Prof. Rossetto and her team. modelling A tsunAmi

An Ambitious exercise Prof. Rossetto looks back at the origins of her current project as the result of asking “Why not?” when told that tsunami waves could not be simulated in the lab. She was also attracted to earthquake engineering because it is a new science, and one in which an impact can be made very tangibly. She says that “it allows us to contribute to a revolution in how we design buildings. It combines engineering with seismology, structural dynamics and even the social sciences.” Her ERC-funded research looks at the damage caused by the impact of tsunamis on buildings by modelling the horizontal force that hits buildings during a tsunami, and studying how they react. Looking at the load that buildings can withstand should teach us more about how we can mitigate these forces. The aim is to improve sea defence systems, rather than the buildings themselves, as it is more likely that these coastal defence systems can be constructed and maintained in the areas of the world that are affected by tsunamis, which tend to be developing nations. The devastating impact that tsunamis can have on infrastructure is illustrated in very distinct ways by the cataclysmic effects of

The difficulties of this research are compounded by the fact that there is little verified observational data on how tsunamis unfold, due to the rarity of these events. The goal of this research is both to experimentally investigate the transformation of a tsunami nearshore and, alongside this, mathematically model the permutations which cannot be physically modelled with any degree of ease. Originally Prof. Rossetto was told that it was not possible to model the tsunami waves, which are extremely long. This became a challenge, which was solved with the building of a new type of pneumatic tsunami generator, which is not limited by the piston capacity of traditional wave generators and which can reproduce the extremely long wavelengths associated with tsunamis. It is also the world’s only facility able to model trough-led tsunami waves. The tsunami generator is mounted in a 70m long and 4m wide flume at the laboratories of HR Wallingford in the UK. The flume is heavily instrumented and enables the researchers to examine the interaction between tsunami waves and coastal defence structures, individual buildings and groups of buildings: more accurately mirroring what happens in a real-life event.

experiencing disAster Prof. Rossetto’s research is both experimental and theoretical, encompassing reconstructions and calculations of the tsunami wave and its aftereffects, particularly modelling the fragility of buildings. Calculating the insurance implications of a natural disaster on this scale is a necessary part of the preparations from an infrastructure perspective but there is another side to the insurance question. In a related piece of research, Prof. Rossetto traced a global phenomenon: “how do people living in at-risk areas approach potential disasters? They are not ignorant of the risks, but they do very little to prepare.” The ERC backing has been of enormous help to the project, not least because of the attention it has attracted. She emphasizes: “On a practical level it has ensured that I can concentrate on the work uninterrupted. It has really opened doors because it is seen as such a seal of quality for the work. It has led to conversations with policy-makers and involvement in co-development projects: for example in research collaborations and discussion to include tsunamis in the next European building codes post-2020.” Prof. Rossetto believes that her research will “spark imagination” at TEDx Brussels. She observes that the combination of reallife threat and hi-tech solutions produces a narrative that should grip the TEDx audience. In the most practical way possible her aim is to “save lives, and in doing so build a safer world for our children”. MBR

EDITOR’S NOTE Tiziana Rossetto is a Professor in Earthquake Engineering in the Department of Civil, Environmental and Geomatic Engineering (CEGE) at UCL where she directs the Earthquake and People Interaction Centre (EPICentre, www.epicentreonline.com ). EPICentre was founded by Tiziana in 2007 with seed funds from a highly competitive UK Research Council Grant called Challenging Engineering, and has grown to become the largest earthquake engineering research centre in the UK. Since joining UCL in December 2004 Prof. Rossetto has been PI on research grants totalling £6.3M, and Co-I on grants worth £0.74M. She set up the MSc in Earthquake Engineering with Disaster management and co-directed the UCL Engineering Doctorate Centre in Urban Sustainability and Resilience. Tiziana is acknowledged in the earthquake engineering community as an expert in the assessment of the seismic vulnerability of buildings. Tiziana was recently awarded a European Research Council grant for her project URBAN WAVES, which aims to develop new science and techniques to holistically evaluate earthquake and tsunami risks and provide engineering guidance for their effective mitigation. Prof. Rossetto is a strong advocate for earthquake engineering and is active in several professional institutions in the UK. She is currently Chair ex-officio of the UK Earthquake Engineering Field Investigation Team (EEFIT, Institution of Structural Engineers), Vice-Chair of the Society of Earthquake and Civil Engineering Dynamics (SECED, learned society of the Institution of Civil Engineers), committee member of the Research and Innovation panel of the Institution of Civil Engineers, and sits on the British Standards Institute Committee for the application of the European Seismic Code (EC8).

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Feature: erC StorieS

Exfoliating monolayErs: opEning a gatEway to industrial solutions At Trinity College Dublin Professor Jonathan Coleman and his team are creating a ‘gateway technology’ in material science that, if successful, will open the door to a host of industrial applications. Their research focuses on producing twodimensional monolayers of a variety of materials by exfoliation. Prof. Coleman’s TEDx talk will introduce the audience to this technology and demonstrate how to make the ‘wonder material’ graphene in a kitchen blender liquid phase. So by allowing the suspended monolayers to settle out onto a surface and form a continuous film, the team are producing stacked layers of conducting, insulating and semiconducting films, of controlled thickness and with well-defined electrical and optical properties – from which a host of devices such as semiconductors and detectors can be manufactured in bulk. And the potential of this research is not only in electronics. Monolayers of molybdenum disulphide are 20 times stronger than steel, so it can be used to strengthen other materials, such as plastics, which are also processed in liquid solvents. Prof. Coleman’s team have demonstrated exactly this by co-depositing a small amount of MoS2 with an everyday polymer plastic – which more than doubled its strength! Plastics are ubiquitous in structural applications – for example as car components. So doubling the strength means that half the material is needed – reducing the amount of oil required to produce plastics in the first place, and reducing the weight, and thus the emissions from cars. This is why Prof Coleman’s research is described as a ‘gateway technology’ – if they can demonstrate industrially tractable applications, then the potential take-up is enormous. Prof. Coleman first demonstrated how to create nanomaterials in this way by producing graphene – one atom thick monolayers of carbon with unique electronic properties. He showed that subjecting bulk graphite to sonic energy while suspended in a liquid causes carbon monolayers to ‘exfoliate’ from the graphite. This produces a liquid dispersion of graphene monolayer flakes. In 2010, he received an ERC Starting Grant to expand his awardwinning research and demonstrate its wider potential. Indeed, it would take the weight of an elephant balanced on a pencil to break through a sheet of graphene the thickness of cling film.

In advance of his TEDx talk, Prof. Coleman said: “I am very much looking forward to sharing the latest developments in material science with the audience at TEDx. The discovery of graphene has opened a door to countless potential real-world applications and I think the people at TEDx will find the prospect of creating twodimensional monolayers of a variety of materials as exciting as I do!” MBR

Prof. Coleman’s team is now applying this technology to many other industrially important materials, for example by exfoliating monolayers of tantalum sulphide, a metallic conductor; boron nitride, an insulator; and molybdenum disulphide (MoS2), a semiconductor. These form the building blocks for nanoelectronics applications – but the significant element is that it is done in the EDITOR’S NOTE Jonathan Coleman is one of the world’s leading research scientists in nanotechnology and materials science and an internationally acknowledged expert on graphene. Often hailed as a ‘wonder material’, graphene is an engineered single-atom-thick layer of carbon which has some extraordinary properties. Graphene is made of super-tough carbon-nanotube fibres, is 100 times stronger than steel, conducts electricity better than copper, and is exceedingly light. It’s also a great capacitor with many uses in energy storage. Potential applications of graphene include aeroplane wings, flexible touch screens, bio-polymers in medicine, and 3D printing media. In 2008 he demonstrated a way of making large quantities of pure graphene by exfoliating it from graphite using ultrasound. Professor Coleman has been leading research in the field for the past ten years, he has published over 95 peer reviewed papers and is Professor at the School of Physics and the AMBER centre at Trinity College in Dublin. He was the recipient of a prestigious European Research Council Starter Grant in 2010 and his work is rated in the top 1% in the worlds of both chemistry and materials science. In 2010, Prof. Coleman received a European Research Council grant to support his research on “Semiconducting and Metallic nanosheets: Two dimensional electronic and mechanical materials”.

Feature: erC StorieS

Malta Business Review

How to become invisible: tHe science beHind tHe fiction The idea of invisibility sounds like something out of science fiction: but could new research turn it from fiction into science? The ambition behind Professor Leonhardt’s ERC- funded research is to trace the connections between abstract theoretical concepts, drawn from geometry and relativity, and their practical implications in fields from materials to photonics The fundamenTals of science

The ideas behind the science of invisibility seem to come from a fantastical realm outside the reach of the laboratory. Yet, the tools used to investigate this are not in themselves complicated. Prof. Leonhardt’s work explores the practicalities of invisibility: drawing on cutting-edge optical science which also has profound implications for relativity theory. The science of The everyday This research is founded on the connection between geometry and optics: in exploring the space/time curvature for example. This kind of high-impact physics may seem remote from everyday life but the same physics governs the optics of magnifying glasses, or the displacement of objects in water. The best way to describe this process is to think of fish in an aquarium. We see the fish in places other than where they are actually located because the water has distorted the images. Our perception of space is then altered by the water, as our perception is created by the way in which light perceives the altered space. The research team are testing this distinction by pushing it to extremes to see where it can be taken, and whether any new and intriguing ideas can be developed.

The mysteries of optics have interested scientists for over a thousand years. They have inspired research into what new technology can teach us about the intersection between physics and optics. Beyond this theoretical exploration, Prof. Leonhardt is tracing the potential practical applications: for example in the sharpness and resolution of imaging techniques, and the implications for quantum physics. The forces acting in a quantum vacuum are of particular interest for this project. Whilst these concepts seem abstract, Prof. Leonhardt explains that the vacuum is something we experience day-to-day: “These forces are what make a parking ticket stick to a windscreen. Both surfaces are electrically neutral but they nonetheless attract each other. The forces are particularly important for micro-mechanical devices where they may cause parts of the machinery to get stuck. Our work should aid the development of frictionless devices. The quantum vacuum is also what drives particle behaviour at the event horizon, only on a cosmological scale. This research could shed light on the mysteries of dark energy, the repulsive force which energises the universe, but about which we understand very little.” The appeal of opTics Prof. Leonhardt’s current line of research began fifteen years ago, when he was giving a lecture course on general relativity. The details of this were unfamiliar, and it prompted him to think about how to communicate it clearly, and to explore the connections between what he was teaching and his background in optics.

right they should be taken seriously, however peculiar they may seem. The significant thing is what they teach us.” The world beyond The laboraTory Prof. Leonhardt’s research is highly imaginative, but the tools themselves are not particularly technical. He believes this is the source of his appeal to the TEDx audience. He argues that the public can be “gripped by frontier research without even labelling it as such. They can then be made to understand that research takes time. We do not always need to think in terms of applications, though of course these can and do arise in the course of research. If we don’t support frontier research we will just carry on refining existing technologies. We may even run out of ideas.” Discussing the TEDx event, Prof. Leonhardt is adamant that such dissemination events are vital because the science is “publicly funded and so the public should know where the money goes- that it is not wasted and that it produces interesting ideas and applications.” The ERC funding is focused on the individual researcher, an emphasis which Prof. Leonhardt argues ideally suits the generation of ideas. Flexibility fosters the kind of science where by definition you don’t know the answers yet. Also inspired by the relationship between imaginative literature, science and musics, he compares the science he does to an orchestra “where both the conductor and the varied musicians are necessary to complete the piece.” MBR

This project should enlarge our understanding of the world at both the small and the cosmological scale. Prof. Leonhardt emphasises that the ERC’s commitment to funding frontier research means that “ideas which may seem outrageous can be pursued. Because if they are EDITOR’S NOTE

Ulf Leonhardt joined the Weizmann Institute of Science as Professor of Physics in November 2012 after a distinguished international career. He received an ERC Advanced Grant in 2013. Ulf Leonhardt was born in Schlema, in former East Germany, on October 9th 1965. He studied physics at Friedrich-Schiller University Jena, at Moscow State University and at Humboldt University Berlin where he received his PhD in 1993. From 2000 until his appointment at the Weizmann Institute in 2012, he was the Chair in Theoretical Physics at the University of St Andrews, UK. Ulf Leonhardt also had various visiting positions: in 2008 he was a Visiting Professor at the National University of Singapore and in 2011 at the University of Vienna; in 2012/13 he was an adjunct professor at South China Normal University. He is the first from former East Germany to win the Otto Hahn Award of the Max Planck Society. For his PhD thesis he received the Tiburtius Prize of the Senate of Berlin. In 2006 Scientific American listed him among the top 50 policy business and research leaders for his work on invisibility devices. In 2008 he received a Royal Society Wolfson Research Merit Award and in 2009 a Theo Murphy Blue Skies Award of the Royal Society. In 2012 he received a thousand-talent award of China. He is a Fellow of the Institute of Physics and of the Royal Society of Edinburgh. In 2012, Prof. Leonhardt received a European Research Council grant to support his research on “Transformation optics: cloaking, perfect imaging and horizons”.

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THE MALTA SME SUMMIT & B2B NETWORKING FORUM Portomaso Suite, Hilton Friday 28th November, 2014

EvEnt of thE Month

“This mail to thank you and the team for a very, very interesting session at the Hilton last week. I really enjoyed the company and managed to meet quite a few business contacts to discuss various subjects. I wanted to thank for the well organised event and I hope that many more like these will come to Malta.”

Flemming lippert, CeO, lippert global

“Well done for putting together a very interesting and very well attended event and workshops.”

nadine Sant, legal adviSOr

ministry for the economy, investments and Small Business

“Well done for Friday, I really enjoyed the sessions, in particular the workshop at the end.”

mandy Calleja

Coordinator: Corporate Identity, events & awareness raising Malta Communications Authority

Malta Business Review

“It was a pleasure participating in such a well organised and interesting conference. I will definitely be attending in future. Well done for the conference, it was fantastic!”

lynSey SChemBri

Senior Statistician, PKF Accountants & Business advisors

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Best Practice -Part 2

You either lead, follow, or get out of the waY! by Werner E. Jung

Recapitulating on part one of this article, “Best Practice is the best identified approach to a situation based upon observation from effective organisations in similar business circumstances” seems to be a common understanding. And we all live happily in mediocrity hereinafter…. Michael Porter expressed this in a more subtle but very distinct way in his landmark work “Competitive Strategy” – his words being: “Being stuck in the middle is a recipe for disaster”

ust to clarify things, there are places and situations where so called “Best Practices” are useful and necessary and in some cases even enforced by legislation. Examples are GMP (Good Manufacturing Practices) in the pharmaceutical, healthcare and food processing industry; or GAAP (Generally Accepted Accounting Principles) along with all the ISO, DIN and SAE standards where quality and safety standards are concerned. All these “Best Practices” will not get you ahead of your competitors; they merely enable you to play with them. Part one ended with the quote “ rethinking the past and present and reimagining the future, managers can construct a strategic narratives that enable innovation without necessarily having to break with the past.” With strategic narratives we mean developing a vision and out of that vision constructing a strategy. Define your place where you want to be in the market with your products and services. You, as a leader, an entrepreneur need to make a story out of this strategy which can be understood and enthuses your partners, your employees and your customers; Want to get your point across? You’d better learn to tell stories. And as Porter says, a strategy is a path, not a fixed location. We have to make a distinction between operational effectiveness, efficiency and strategic positioning. In the past decades, thanks to such techniques like balanced scorecard, six sigma, lean management etc. the emphasis has been diverted to staying flexible, incorporating new ideas or developing core competencies, which actually have

positioned the view to internal matters, although, probably, unintentionally. I myself, with my teachings of the “Flexible Factory” ran into the danger that in the end my clients took to an internal view despite my constantly preaching that spending resources on internal improvements of efficiency was only effective if these actions meant benefits to the customers, thus improving the competitive position. Unfortunately Best Practice has been largely identified with an internal focus. As this development is becoming more apparent, the focus is shifting more to strategy.

Spending resources on internal improvements of efficiency was only effective if these actions meant benefits to the customers Developing strategy is part of leadership and vision. A new form of Best Practice has been developing over the past decades under such titles like social responsibility or sustainability. Today, in order to be successful in the marketplace a strategy must be compatible with the rules for socially desirable competitive behaviour, established by ethical standards and public policy. This type of development was foreseen in the late 70’s by scholars like Ed Bowman at MIT, when at the time we learned that the key objective was to maximise shareholder value. MBR To be continued…..

EDITOR’S NOTE

Werner E. Jung is active as a lecturer and consultant for international business and lean management. When he is not traveling he divides his time between Malta and the Bavarian Alps, Germany. He is a mechanical engineer from the Swiss Institute of Technology (ETH) and holds a Masters degree in Management from the Massachusetts Institute of Technology (MIT). He has worked as project manager and executive around the world for corporations like Sony, Daimler, Corning, Eli Lilly etc. and was the founder of several start-up companies in the US and Germany. During the past 15 years Mr. Jung has worked as an international consultant and lecturer where he advised companies like Siemens, Hyster, Yale, Flextronics, Atlas Copco, Tyco, Emerson, Bosch, Ingersoll Rand, Timken and many SMEs throughout Europe and the Middle East. He is the author Flexible Factory methodology designed for SMEs and the founder of the Flexible Factory Institute. Term: A best practice is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark. In addition, a “best” practice can evolve to become better as improvements are discovered. Best practice is considered by some as a business buzzword, used to describe the process of developing and following a standard way of doing things that multiple organizations can use. Best practices are used to maintain quality as an alternative to mandatory legislated standards and can be based on self-assessment or benchmarking. Best practice is a feature of accredited management standards such as ISO 9000 and ISO 14001.

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Looking For The BesT in PeoPLe by Piers Manning There’s something so friendly and identifiable about Richard Branson, it almost doesn’t add up. The intimidation factor is absent, considering his reported amassed fortune of £2.58 billion equals the GDI of several small nations. Combined. Yet encountering the fifth wealthiest man in the UK, the emperor of the Virgin empire, it’s surprising to meet a billionaire who seems to have retained the values, ideals and personable humour of a modest, grounded upbringing. “No matter who you are, people always have a perception that more often than not, doesn’t add up, or match,” he tells me, speaking on the phone en route to Luxembourg airport. Knighted by the Queen in 2000, the philanthropist and auteur has always been a man of the world, extending a simple yet driven commercial blueprint into the areas of aviation, communications, and health and fitness; and across all four corners of the globe. And naturally, for an individual of unstoppable ambition and self-belief, the world is simply not enough, and the soon to be grandfather of three, thanks to his expectant children, Holly and Sam, has set his sights squarely on conquering the stratosphere and beyond.

MBR: You are on the verge of launching Virgin Galactic, why did you laden your load with a book at the same time? Where do you fine the space in your schedule? BRANSON: Early mornings on Necker Island, lots of notebooks that I have kept over the years that I have scribbled down in for much of my life, almost like a diary. And for the last four or five years, I have kept a diary effectively on social media, to share whats’ going on in my life on Twitter and Facebook. I have got lots of places to draw from. I am lucky enough to have had a fortunate life and learned a lot through it and you have to share it and I think it’s important to share with other people. And I have had 50 years in business- which is the most frightening notion I will tell you that – and I talk to students all the time, trying to help give them a leg up. And sometimes it’s easier to include it in book form so it’s there forever, accessible to anyone who wants it. MBR: The book is, in your words, an education on how to listen, laugh, learn and lead. All important lessons but what about leisure, knowing when to relax? Do you know how? Is that an important component in the Virgin Way, especially following Virgin Galactic’s recent setback? BRANSON: I do and you know what, I probably should have included it. Maybe I was a little foolhardy in ignoring it. I will include it in the next book. I truly believe that humanity’s greatest achievements come out of our greatest pain. 22

It was a horrible day for Virgin Galactic, for commercial space travel- it’s a massive setback, but we have got to pick ourselves up and move forward. We learn to listen and laugh, but also cry, honouring the pilots for their bravery. See I am a good listener and I have listened and taken that in. Look, for me, I have to be up in the morning, kitesurfing or playing tennis. If I am on the road I will still make sure to get on the exercise bike for an hour or if I am dictating letters, I will make sure I am walking when I am dictating and my poor assistants will be back in the hotel. I always want to do fun leisure things. Like I recently climbed Mont Blanc with my children, kite-surfed across the English Channel. I love training for really special events.

I truly believe that humanity’s greatest achievements come out of our greatest pain MBR: Sounds fantastic but I mean really chill out. Does Richard Branson ever just do nothing? Or is that your greatest fear? BRANSON: I don’t fear it, that’s for sure. I don’t really have time to be fearful [laughs]. Call it what you will. I was raised by parents who wouldn’t let me watch television as a child, so I instead climbed trees and rescued cats from them, instead of watching people do it.

Operations are already well underway minus many, many setbacks and glitches for the world’s first commercial spaceflight, scheduled to be launched by Virgin Galactic in 2015. Though it was once penciled in for 2012 and lately the project was offset by the tragic accident will delay Virgin Galactic’s progress and may also result in more governmental oversight of the company and other firms that seek to launch paying customers to suborbital space. ‘Supposedly’ scheduled for a maiden voyage next Spring, which is now on hold, Branson’s Virgin Galactic fleet will travel skyward for an hour before reaching the designated distant of 15 kilometres above sea level, and for the first time in history, commercial passengers can spend a whole four minutes suspended in zero gravity, staring at the curvature of the world’s surface, before descending to earth. Or at least that’s the plan. Speaking to MBR in support of his new book, The Virgin Way, his latest bible on how to succeed in business, simply by listening, learning, laughing and leading, Richard updates on the latest developments for his intergalactic fleet while getting personal about ageing, his lack of temper and why politics holds no interest.

MBR: So that’s a no then? You never just chill out? BRANSON: [laughs] Every day is a new exciting day, and I love the variety of what I do, and the people I talk to and meet. My life is like one long university education, I to enjoy and do it all. MBR: Virgin Galactic is the first of its kind, what has it been like to head up a project of this magnitude? BRANSON: Fortunately, if we had started Virgin Galactic twenty years ago, we couldn’t have afforded to have hung on in there as long as we have clung on. Fortunately, Virgin is now is at the best of its capacity at which, if one of the components of the machine goes over budget, over schedule like Virgin Galactic has, we are able to dig deep and make sure we get the job done. What matters for Virgin Galactic, we are not just the first commercial company to take people into space, we are also launching it safely. And be sure of coming back again. For all those quizzing and asking about the delays, it’s space travel we are dealing with here. Actual rocket science, we have to make sure the entire operation runs perfectly. We have to ensure safety for all. Getting the rockets absolutely right, so I feel comfortable going up with my children, and others feel comfortable going up with their kids in the years to come. Three months ago, the spaceship has been finished for some time, the mothership has been finished, the spaceport. We were just waiting on the

ExclusivE intErviEw of thE Month

Malta Business Review

rockets. And two teams, about a hundred people per team, luckily, both came good within a week so we had the fortunate luck to be able to choose between both. We are determined to honour the bravery of the pilots and teams here by learning from this tragedy. Only then can we move forward, united behind a collective desire to push the boundaries of human endeavor. We will reschedule a test flight into space, and then move out to Mexico, ready for our first proper flight. MBR: Did you ever think you had bitten off more than you could chew?

Sir Richard Branson, founder of Virgin Galactic, with models of the White Knight Two carrier aircraft (C) and the Spaceship Two (R) Photo: AFP/Getty Images

BRANSON: I never felt that, but that’s pretty normal for me. The people around me, that was a different story. MBR: Like who? BRANSON: People I work with; investors; I am sure some of my family. But you know, you only live once, the first ever company to take people into space, to put satellites into orbit for a fraction of what it already costs and maybe point to point travel. And maybe one day, space hotels, and maybe one day, mine asteroids and colonise planets; it’s worth biting off too much. It’s worth going for it. It’s been hard work as I have genuinely said before but we are finally on the cusp. MBR: Are you a worrier by nature? BRANSON: No! If something’s going wrong, I will throw myself wholeheartedly into trying to save it or correct it. Or, get a balloon across the ocean or whatever. If I fail, at least I have done everything I can do to avoid disaster. And put it behind me. If you ask me about the worst moments in my life, I actually forget them because I put them behind me. I am somebody who is very positive, thinks positively and look for the good in everybody. MBR: Getting older, do you not question your mortality? BRANSON: I think, growing older is simply a fact of life. But, you can delay the inevitability, like I try to by kite-surfing and playing tennis and doing fun ways to do it. I’ll do it. MBR: As a dedicated family man, it must have killed you over the years when you missed key moments while out on the road? BRANSON: Fortunately, I didn’t. As I said in the book, delegation is critical for any leader so when the kids would be off school, we would go on holiday together. Yes, I would work but was lucky enough to buy a barren island in my twenties so I would be able to pack my bags and work from there. I was always around, and I have always worked from home. The kids grew up this way, I was having meetings with them around my feet. They have been trained since they were in nappies and now they’re very capable in helping dad out now that they’re no longer in nappies.

The Virgin Galactic Team with Sir Richard in the middle

I have spent time travelling around the world with the Global Drug Commission to try to get the laws changed around the world, to treat drugs as a health problem, not a criminal problem MBR: Have you ever considered a career in politics? BRANSON: I have been approached but it’s not something I thought about. I speak out strongly against the issues I feel passionate about. For instance, I have spent time travelling around the world with the Global Drug Commission to try to get the laws changed around the world, to treat drugs as a health problem, not a criminal problem. Places that are, like Portugal are getting on top of the problem, and not imprisoning people. There’s a lot of issues in the world, conflict resolution, species protection or global warming issues that I spend a lot of time on. But I’m not interested into getting involved in party politics. MBR: Can I ask who approached you? BRANSON: Ehh, let’s just say I wasn’t interested. MBR: Which part of your empire do you treasure the most? BRANSON: I love new babies, and the birth of a new child, obviously so Virgin Galactic is the new baby for the next few months. But I have tremendous love for Virgin Atlantic. She was once a new baby, but has now grown up, 30 years old daughter, who was once bullied at school by British Airways but has since grown up to be delightful and has been a great success all around the world.

MBR: In the book, you speak about your propensity to give second chance and always offer the benefit of the doubt to someone, to your employees? But can you talk about an instance where you lost the head, and do you have a temper? BRANSON: I don’t, only because it would be counterproductive to oneself. My parents never thought ill of anybody. As a child, they would get us to stand in front of the mirror for five minutes because it said it reflected so badly on yourself. So from that, you look for the best in people, and want the best for people. And it’s much more productive all round. MBR All Rights Reserved / Copyright 2014 Courtesy: TIP

EDITOR’S NOTE Entrepreneur Richard Branson launched Virgin Records in 1973. Today Virgin Group holds more than 200 companies in more than 30 countries. Richard Branson struggled in school and dropped out at age 16—a decision that ultimately lead to the creation of Virgin Records. His entrepreneurial projects started in the music industry and expanded into other sectors making Branson a billionaire. His Virgin Group holds more than 200 companies, including the recent Virgin Galactic, a space-tourism company. Branson is also known for his adventurous spirit and sporting achievements, including crossing oceans in a hot air balloon. www.maltabusinessreview.net

Forthcoming EvEnt

Malta Business Review

MALTA’s PREMIER MARKETING & B2B NETWORKING CONVENTION The ImporTance of markeTIng & InvesTIng In growTh for smes

Date: 27th February, 2015 | Venue: MEDITERRANEAN CONFERENCE CENTRE, VALLETTA, MALTA

Whether it’s building customer loyalty, increasing sales, improving lead generation, or driving greater consumer engagement, the Marketing & B2B Networking Convention has been specifically designed to help attendees develop their audience and build traffic, create brand awareness, improve customer service, and develop better use of digital tools internally to drive more productive business outcomes. As any person involved in marketing knows, knowledge and insight are critical to successful marketing and people performance. Marketers, marketing and sales executives, top level executives and DMUs from various Corporate Organisations, together with leading marketing experts, politicians and marketing graduates gather at the Portomaso Suite, Hilton on the 27th February, 2014, to share knowledge and insights during the Marketing & B2B Networking Convention sponsored by Malta Enterprise. We invite anyone involved in marketing and this also includes innovators, senior marketers and branders, entrepreneurs, digital executives and professionals, web and mobile strategists, designers and web project managers, business leaders, business developers, agency executives and their teams and anyone else who operates in the digital community will attend to learn and leverage digital, mobile, and social media marketing. This event will be attracting participants from a wide variety of the marketing and corporate business community, managerial and entrepreneurial ranging from Financial Services, Business Services to Retail to Hospitality, to ICT, as well as manufacturing, including SMEs and also higher educational or vocational colleges. More than half of the attendees

are senior directors, CEOs, business owners and DMUs hailing from Malta’s key business management, financial and economic sectors. A broad mix of high profile keynote speakers from different walks of the business community, including guest speaker from LEGO, two Ministers from the Government of Malta, including a Parliamentary Commissioner, a German senior lecturer, topmost SME experts, business owners and senior executives will be attending during the conference. ICT companies, exhibitors and sponsors will be on hand to provide a showcase of latest technology, including robotics from MITA and also a dedicated Marketing booth with latest graduate courses, events, opportunities and developments, which will allow interested learners find tailor made courses for their business management and marketing solutions to meet their needs. Exhibitors at the event will include a microcosm of the Maltese corporate landscape. Participants at the summit will be informed about the latest developments in marketing, marketing issues and marketing educational matters. Business owners from several leading SMEs in Malta, will be invited to take centre stage as speakers during the morning conference sessions and afternoon workshops designed as a crucial resource for senior business management and professionals working in small to mid-size businesses. Topics will also include: •

New Markets- New Customers

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Internationalisation - Development of Export initiatives for SMEs, Brokerage and Networking Events

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Digital Agenda & Social Media

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ERDF - Research and Development Grant Scheme MBR

PROGRAMME 08:00

Registration & Welcome Coffee