Malta Business Review Issue 3 by Adrian Friggieri

Issue 3 – November 2014

Burmarrad commercials: a vision for more celeBrating 30 years

cover story

focus

feature

exclusive interview

30 Years Strong – Value and Vision A Family-Driven Success Story - p.06

Do you follow Best Practice? Werner E Jung makes a detailed analysis on Best Practice - p.20

Global Trade Now Poised for Sustained Recovery A special HSBC Trade Report and focus on the world’s fastest growing exporter - p.30

Making A Broad Impact – Part 1 Interview with the Hon. Minister for Tourism Dr. Edward Zammit Lewis - p.34

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

WHEN PEOPLE CONNECT, SOLUTIONS FALL INTO PLACE. At HSBC we helped Technoline, one of Maltaâ&#x20AC;&#x2122;s leading companies in the medical and scientific industry, to connect to the right people to restructure operations and set new goals in line with the companyâ&#x20AC;&#x2122;s strategy. See how our Relationship Managers in more than 60 countries can support Maltese Businesses. Call us on 2380 8000 or visit www.hsbc.com.mt/commercialbankingtrade

If you see it, we see it.

Issue 3 – November 2014

family-Driven innovation: a vision for more BurmarraD commercials -

celeBrating 30 years

cover story

focus

feature

exclusive interview

From Strength to Strength Celebrating 30 years with Burmarrad Commercials - p.06

Do you follow Best Practice? Werner E Jung makes a detailed analysis on Best Practice - p.20

Global Trade Now Poised for Sustained Recovery A special HSBC Trade Report and focus on the world’s fastest growing exporter - p.30

Making A Broad Impact – Part 1 Interview with the Hon. Minister for Tourism Dr. Edward Zammit Lewis - p.34

puBLISher MBR Publications Limited MBR Publications Limited

eDItor Martin Vella technIcaL aDVISor Marcelle D’Argy Smith SaLeS DIrector Margaret Brincat

art DeSIgn Melanie Mifsud aDVertISIng 9940 6743 / 9926 0162; Email: margaret@mbrpublications.net; martin@mbrpublications.net

coVer StorY

contrIButorS

Fabian Baumann; George Carol; David Grech; Nicky Gouder; Michael Hartzell; Werner E Jung; Keith Laferla; Patrick J O’Brien; Ana Zammit Munro

SpecIaL thankS

SpecIaL contrIButIonS

Burmarrad Commercials; Express Trailers; European Research Council; FIMbank; HSBC Commercial Banking; Manoel Theatre; National Statistics Office; RE/MAX Malta; Valletta Fund Management; WasteServ

prInt proDuctIon Velprint

oFFIceS 41B, Wayne, Triq il-Herba, Birkirkara, BKR 2322

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.

are We aLL europeanS noW on the Same Boat Award Winning Journalist Patrick J O’Brien share his views about European unification

Do You FoLLoW BeSt practIce? Werner E Jung makes a detailed analysis on Best Practice, comparing performances in the competitive marketplace

FocuS

Feature: green management harneSSIng the poWer oF Jet StreamS An interview with David Barratto, CEO of KiteGen Ventures, who are main sponsors of the Malta Green Management & Alternative Energy Summit being held at The Palace Hotel

American Dancer, Actress, Author, and Poet

Disclaimer

the VaLue oF hIgh YIeLD We discuss the management and environs of the High yield market with Uli Gerhad, High Yield Manager with Insight Investment

teLephone +356 2149 7814 quote oF the month “We cannot change the past, but we can change our attitude toward it. Uproot guilt and plant forgiveness. Tear out arrogance and seed humility. Exchange love for hate -- thereby making the present comfortable and the future promising” - Maya Angelou

From Strength to Strength Celebrating 30 years with Burmarrad Commercials An interview the Board of Directors

entrepreneur reD ZoneS: 4 SIgnS Your heaLth mIght Be at rISk Michael Hartzell discusses bad health habits prevalent among Type-A personalities at work

gLoBaL traDe noW poISeD For SuStaIneD recoVerY A special HSBC Trade Report and focus on the world’s fastest growing exporter

CONTENTS Making a Broad iMpact – part 1 In an interview with mBr, the minister for tourism Dr. edward Zammit Lewis wants to see more skilled workforce and a sustained quality branding exercise

SpecIaL FeatureS

a FInancIer’S ethIopIa eXperIence Nicky Gouder narrates his recent mission encounters in Ethiopia

perFormance, DeSIgn & DuraBILItY An interview with Sig. Vincenzo De Carlo, Vice President - Operations Manager at De Carlo, main sponsor for the Malta Green Management & Alternative Energy Summit

noBeL prIZe In phYSIoLogY/meDIcIne to tWo european reSearch councIL granteeS We follow the recent for most prestigious prizes in the world awarded too two ERC Advanced Grant holders

editorial here’s a secret formula holding the “special ingredients” of building a business that so many of us tend to overlook as we hustle our way to success. Without it we risk never reaching our business goals and, even worse, losing touch with ourselves in the process. What is it?

eXcLuSIVe InterVIeW oF the month 34

Malta Business Review

online – the Future oF insurance management Keith Laferla writes about eCommerce enabled websites

Self-love. It’s sumptuous, simple to put into practice, and shores up your feel-good reserves so you can power through those tough situations. In this month’s edition, author Michael Hartzell is sharing his advice on practicing a whole load of self-loving as you build your beautiful business. In his contribution entitled “Entrepreneur Red Zones: 4 Signs Your Health May be at Risk”, Hartzell advises us on radical self-care. One the best pieces of advice I ever received was, “You can’t break through a glass ceiling without getting cut.” It’s all about the price we often pay for success, and that’s why I am writing about the importance of becoming comfortable with distress, how to listen to our intuition, and how to give ourselves some much-needed TLC. We need to conduct good practice to put all this self-love into action. As always, and this month is no exception, we bring you top class contributions and interviews with a broad range of business and other sector leaders. In many instances, these front-runners write with a profound sense of social and business purpose for the benefit of all our readers so as to enable them achieve successful growth within a constantly changing business environment. In this issue we interview Uli Gerhad, High Yield Manager with Insight Investment whose focus

is to determine those opportunities that should be aggressively addressed. Werner E Jung makes a thorough scrutiny on Best Practice, and its implications. Our special feature on green management introduces Sig. Vincenzo De Carlo, Vice President and Operations Manager at De Carlo, and David Barratto, CEO of KiteGen Ventures, who are main sponsors of the Malta Green Management & Alternative Energy Summit. We also present a special HSBC Trade Report, concentrating on the world’s fastest growing exporter. Our exclusive first part interview is with Dr Edward Zammit Lewis, Minister for Tourism, who talks about creating skilled workforce with the aim to compete in a socially responsible and appropriately accountable way. Taking a leaf from Yue-Sai Kan- “Only if what you can do benefit others, can you really find your calling,” I conclude that success is being who you are, believing in yourself and not quitting. And the best example and embodiment of this is captured in our cover story interview with Mario Gauci Snr and his children, who are celebrating 30 years of business.

MARTIN VeLLA

www.maltabusinessreview.net

30 Years strong Value and Vision by Martin Vella

Celebrating 30 years of continuous success Burmarrad Commercials has evolved from the importation and supply of used vehicles, to a fully-fledged one – stop center for all automotive requirements, having diversified according to the clients’ and markets’ requirements. The family run business, founded and lead by Mario Gauci, together with his three children are relentlessly committed to nurture their business and help their clients meet their requirements for capability, costs, reliability and efficiency

Sharon, Mario Jr, Mario and Maria

background

Few are as accomplished as Mario Gauci— as Managing Director, entrepreneur and founder of Burmarrad Commercials, he has overseen the company’s inception, importing second hand commercial vehicles, machinery and trucks, including product development and design of the company’s rental and leasing infrastructure, as well as the rollout of the after sales services that keep the vehicles powered up. Mario is considered as a pioneer of vehicle importation and architect behind Burmarrad Commercials becoming a leading provider of automotive related services for the consumer. Founded in 1984, BC became one of Malta’s first rental and leasing company offering a full range of vehicles, from cars to any type of commercial vehicle. These are just some of the things that make this interview so fascinating — Mario sits down with MBR Editor Martin Vella, together with his three 06

children, all Directors, Sharon, Maria and Mario Gauci Jr, to discuss the past, commemorate the present 30 year anniversary and share his future visionary projects, including the setting up of a new larger premises in the heart of the Island’s thriving business community. MBR: Would you start with a history and overview of Burmarrad Commercials? Mario: I began importing second hand commercial vehicles from the UK in 1984, following which I also started importing commercial vehicles, fork lifters, machinery and cranes from Europe. Starting and maintaining a business at that time was no mean feat, and it was difficult to sustain the pace, since I had to deal with various challenges. However, with sheer determination, dedication and sound business decisions, the company started expanding swiftly, and this gave me the impetus to move into other commercially viable sectors.

Additionally, the Company became more versatile, offering a wide range of services to ensure that our clients enjoyed a comprehensive choice and this included the importation of vehicles and cars from Japan, and expanding into one of the most flexible commercial vehicle rental and leasing providers in Malta. MBR: Did it ever cross your mind you would arrive to the point where you are today with an expanded corporate brand, over 50 employees and a considerable leasing fleet? Mario: When I established the business, my children were too young. I did not think that they would be growing up and be part of this vision, and form the backbone of what the company is today. After a few years, my eldest daughter Sharon, who used to accompany me and assist me wherever I went, gradually started showing interest in the business development. During that time

cover story interview

I had a partner whom I bought out in 1999. Maria joined soon after , never imagining that she would link up at that juncture. A few years after my youngest son Mario Jr joined up after completing his education in Business and Marketing. Finding it hard to get used to this line of business, eventually he settled down and I bestowed on him the responsibility to manage our property development division. Today, he is also involved in our leasing and rental departments, together with all the branding of the company. MBR: How big is your rental and leasing fleet today, what’s the makeup of the product lines and how important have your three children been the growth of the company? Mario: Having all my children as associates, gives us a better opportunity to decide what’s best for our business. We actually do not stop talking about Burmarrad Commercials and how to always improve on what we managed to accomplish so far. My children have been catalyst to the evolution of our operations. The rental and leasing operations, an area we have pioneered since 1999, is a success story which we developed by understanding what our clients wanted. Today BC is Malta’s largest supplier of new and used vans, trucks, special purpose vehicles, cars, warehouse equipment and industrial machinery. We are also the official distributors and service partners of a number of internationally renowned brands such as Carrier Transicold, Schmitz CargoBull and Dhollandia. Today, we boast a fleet of almost 1000 vehicles and we believe that we are one of the most dynamic vehicle leasing companies in Malta. We are large enough to meet the needs of the most demanding of customers, yet also capable to offer a personal touch. One point of contact, well maintained vehicles and transparent costs combined with a willingness to support our product lines makes our service one of the

best in Malta. We offer great value, flexibility and choice but above all we understand that what makes us different is the level of service that we provide. Initially, the part of the job that I enjoyed doing most was going to the UK to buy the vehicles, then driving down all the way to Malta. This was my bread and butter. I still love importation, but today the most important thing I hold dear to my heart are my three precious children who run the company together. I know that I can rest with a peace of mind knowing that if I had to leave the management of the company in their hands, I can totally rely on them to do a good job.

We are large enough to meet the needs of the most demanding of customers, yet also capable to offer a personal touch MBR: Could you elaborate further about BC’s vehicle syndication business? Mario: When at the time I felt the need that there was demand for specific vehicles or equipment I used to import it. During the building and construction boom we used to import concrete trucks, cranes and other equipment according to the needs and wants of the day. Today, we have diversified to meet the current demand, thus we supply the industry with an array of vehicles, for all private and public entities. This includes distribution vehicles, refrigerated vehicles for food importers, and specialised equipment for material handling. We also provide spare parts, tyres, batteries for all types of vehicles and industrial machinery.

Malta Business Review

Sharon: Apart from commercial vehicles, we started importing private cars from Japan, expanding our product range and diversifying even further. In fact, we were known as the importers of commercial vehicles, hence our company name. Nowadays, our rental and leasing departments make up of 70% of our operations with a fleet of executive cars catering for C-level executives, as well as hatchback cars for company sales representatives, including equipping government departments and ministries, as well as serving a variety of professional bodies and institutes. The remaining 30% account for the sale of vehicles and all aftersales services offered. To add, we also export our products to Middle East and North Africa. Mario Jr.: Serving all sectors within the automotive industry, whether it is rental or leasing, after sales services or insurance repairs- we do everything in-house. We have anticipated and adapted to the customer requirements and today’s market trends. Our customers are able to benefit from our extensive automotive know-how, but also from our network of partners and suppliers, which comply with the highest quality standards. Bringing in our own competence, we are the perfect partners for our customers’ vehicle fleet, whether they are leased from us, or owned by our client and maintained by BC. Maria: We have managed to create a onestop vehicle clinic to provide for all customer exigencies, including tyre services, supply of spare parts and batteries, panel beating, spray painting, AC repairs, auto refrigeration installations and repairs, auto electrical and mechanical repairs. Our after sales forms a big part of the company’s business. Apart from servicing our fleet of around 1000 vehicles, which we hope to bring forward to 1,500 by the end of 2015, we also plan to increase our workforce capacity to 100.

BC Team. Directors, Managers & Staff

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INCOME INVESTMENT SOLUTIONS

Vilhena High Yield Fund Just as the varying thickness, mass and base of the piano strings create a perfect harmony when its pianist strikes the right keys, the diversified portfolio of the Vilhena High Yield Fund, through fund-manager expertise in investing in sub-investment debt instruments, aims to provide a harmonious symphony of quarterly income and higher capital appreciation.

VILHENA HIGH YIELD FUND 80072344 I vfm.com.mt

BOV Branches / Investment Centres & Licensed Financial Intermediaries *The income that the assets of the Fund generate in relation to their value or market, and the frequency of payment may vary and are not guaranteed. Past performance is not a guarantee to future performance. The value of the investment can go down as well as up 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, Offering Supplement and the KIID which may be obtained from Valletta Fund Management Limited (â&#x20AC;&#x153;VFMâ&#x20AC;?), Bank of Valletta plc Branches/Investment Centres and other Licensed Financial Intermediaries. VFM is licensed to provide Investment Services in Malta 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, Brewery Street, Mriehel BKR 3000, Malta. Tel: 21227311, Fax: 22755661, Email: infovfm@bov.com, Website: www.vfm.com.mt. Source: VFM

cover story interview

Mario: I can also reveal exclusively to you that we are looking for a centrally located and larger premises as part of our ongoing expansion in order to be able to provide a better service to all existing and potential customers. The need for larger premises is paramount and a direct result of our growth. MBR: You are currently celebrating your 30th anniversary. What has been your greatest satisfaction during these years and are you still determined to diversify even further to expand your client base and how will you be commemorating 30 years of service? Sharon: Our greatest pride is having a satisfied customer and the reputation we managed to achieve by offering a quality product and service. We believe in what we do and we do it with great passion. We are always seeking to discover more on what’s new on the market and offer our clients with the best solutions for their business, in order to be more efficient, more cost effective, and more consistant than what they could achieve by doing it themselves. So outsourcing to us allows our customers to focus on improving and growing their core business, be it leasing or fleet management. We want to continue growing and tap other market segments. Mario, Jr.: We are entrepreneurs and taking calculated risks we seize opportunities with the intention to consolidate our reputation built over the past 30 years. It is a great joy to wake up in the morning, knowing we shall be working together as a family, to achieve more success in a safe, friendly and professional environment together with our dedicated team, including our cousin, Noel Gauci, who has been assisting my father since the inception of the company. Maria: We have entered in joint ventures in after sales with major well established vehicle importing companies in Malta trusting us with repairs for internationally

My father has had the extraordinary capacity to bring out the best in us, help us build selfconfidence, and grow as professionals renowned brands and also increased repairs for insurance companies in our workshops that are authorised by the MCCAA. May I also add that our company is ISO 9001:2008 certified since 2008. This distinctive quality sets Burmarrad Commercials in a superior position within its industry. MBR: If you could ask the PM, Joseph Muscat to do one thing for the industry, what would it be and why? Sharon: We wish that the government changes the present mentality, and even if in most cases the government purchases fleets of vehicles, they do not have the adequate after sales and human resource capabilities to maintain their fleet. It is cheaper for the government to go for leasing, since it encompasses of a fixed cost and there is no abuse on running expenses. MBR: What were some of the milestones of the company that are both memorable and had an impact on BC’s growth? Maria: One of the most important factors that we are happy about all these years has been the uniting force that we have together as a family. From a professional standpoint, my father, together with Sharon and Mario Jnr, synergise operations and oversee developments in a unique manner, complimenting one another. Looking back, it’s clear that Burmarrad Commercials has gone through a process of rebuilding a

Malta Business Review

position in the marketplace by developing a strong work ethic, establishing a culture of meritocracy and maintaining a passion for following new paths. My father has had the extraordinary capacity to bring out the best in us, help us build self-confidence, and grow as professionals and, even more importantly, as humans. Sharon: As a family owned company, we cherish family values, commitment and loyalty, a culture which we instill in our staff and continuously pass onto our clients with our service methods. Mario, Jr.: Burmarrad Commercials’ commitment to customer service and quality, as well as our growth and achievements are exemplary. We are, without a doubt, an unrivalled one-stop service company, and a family business that never stops. We are a corporation growing and striving to continue my father’s great legacy; and after 30 years, we still hold up high the name of where it all started, Burmarrad. MBR All Rights Reserved | Copyright 2014

A Fleet of over 60 small hatchback cars for our rental department

A fleet of 45 executive cars, supplied to a leasing client

Burmarrad CommerCials 30 Years of suCCess “Coming together is a beginning; keeping together is progress; working together is success” Henry Ford (Founder of the Ford Motor Company) ► Burmarrad Commercials organisational success depends, first and foremost, on the mindset, synergies and capabilities – both technical and operational – of the group’s Directors Mario, Sharon, Maria and Mario, Jr. ► BC’s achievements is a direct result of a group of courageous individuals with an appetite for challenge and the will to seize and shape their own future – men and women who understand the concepts of service, community and respect for others. ► The key factor is establishing a close connection between BC’s customer-care teams and their brand suppliers. The customer-care team provides the expertise for customer service techniques while the brand suppliers sets the expectation and requirements that are unique to each brand. ► BC has been capable, above all, of creating teams that succeed through what the American leadership expert Warren Bennis calls “creative collaboration,” producing results far greater than any individual could achieve. In any business, this type of leadership provides the best hope for the future.

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The Value of high Yield by George Carol

Uli Gerhard Portfolio Manager High Yield at Insight Investment Management (Global) Limited discusses the management and environs of the High yield market

MBR: Is high yield still an attractive option in today’s economy? UG: Yes, historically in the low interest rate environment the High yield market, provides opportunities to improve returns. It is crucial that one focuses on good credit stories where companies have a positive rating trajectory and in names that generate free cash flow after capital investments. MBR: How do high yield funds correlate with todays’ low interest scenario? UG: Given the low interest rate environment, in my opinion the hunt for yield continues with many players like fund managers, running bench mark mandates. In recent months we have seen investors pricing good credit risk at low yields whilst poorer credit risk has, until recently, been priced too tightly. MBR: Do you consider high yield bonds to be too risky? UG: In selected areas, for sure but it depends on how one invests and on what 10

part of the credit spectrum one invests in. A careful stock selection allows you to generate superior returns in particular in the BB/B space, with an in depth credit analysis being vital to avoid credit losses. We like seasoned issuers that know how to operate in HY land and have no desire to become Investment Grade.

Like any other market, High Yield is cyclical and as such will have good and bad years

We have avoided many new issues in 2014 as we were concerned about the credit quality, business strategies and ability to deliver. In my opinion better opportunities can be found in the US market.

MBR: What would you consider to be the highest risks when investing in High Yield Funds? UG: From my experience in the market segment, Benchmark ‘tracking’ mandates which have no significant stock selection and lack of analyst team, offer a higher level of risk to investors. One has to be very careful. MBR: What are the prospects for the fund that you currently manage? What companies do you look at when choosing the fund portfolio? UG: The prospects look good and I would expect a positive return between 5 to 6 % for 2015. As regards to the companies we look at when choosing the fund portfolio we always like to increase diversity of companies in the market we can invest in. In fact some of our favourites are: Seasoned companies, we also look for “story”, how will you pay me?, Competent management team with a good track record and secured bonds, here we are always on the lookout for businesses that generate free cash flow.

Fund ManageMent

MBR: Are high-yield bond funds likely to have bad years?

to generate 3-3.5% excess return which all in all I consider to be attractive.

UG: Like any other market, High Yield is cyclical and as such will have good and bad years. From our end as Fund Managers we want to pick names that do well with low default risk, in order to produce superior returns over the cycle. Despite the current sell-off, I see value in HY, given that government yields in Europe and the US are at very low levels, 2% and 0.75% respectively which also look encouraging. High Yield bonds offering 500-550 bp of return over this. Default rates being low at levels of 1-2%. In this market environment we should be able

The price action of the market may be volatile but this is often separate from the credit/ company risk and we are able to manage both of these risks over a market cycle. MBR: Why donâ&#x20AC;&#x2122;t high-yield bonds move in line with the stock market? UG: High Yield Bonds are generally more correlated to the Equity market then the Bond market as we are experiencing at the moment. However this is not fully correlated as the: Investor base is different, Perception of Risk is not the same as in equities, the rate

Malta Business Review

of defaults is a very important consideration while supply and demand together with liquidity are also totally different scenarios. MBR: When do high yield bonds do best? UG: Traditionally High Yield bonds have done best in a low default/growth environment with interest rates being stable as we have seen over the past few years, despite having minimal growth. We are looking for good companies, who have adequate liquidity, hedging and calculated risk taking by management as we believe that good stock selection should generate solid returns in any market. MBR All Rights Reserved | Copyright 2014

EDITORâ&#x20AC;&#x2122;S NOTE Uli Gerhard who wrote a BA degree in Chemistry together with a PhD in Organic Chemistry from Cambridge University, joined insight in September 2011 as a Senior Credit Analyst within the Fixed Income Group. He became a Portfolio Manager in June 2012 and now manages the Insight High Yield Bond Fund, as well as, being responsible for the high yield product.

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Welcome to the 6th edition of the malta iGaminG Seminar 11th-12th november 2014

JosepH cuscHieri,

Declan Hill,

Executive Chairman, LGA, Malta

The MIGS conference is important to the Gaming Industry in Malta. It provides excellent content in a close knit environment where delegates may network and further understand the Industry. The MIGS track record has strengthened our position as a top International Gaming jurisdiction; and just like previous years, LGA is very happy to show its full support.

Key Note Speaker Declan Hill is an award winning journalist and one of the foremost experts on match fixing and corruption in International Sports. Mr. Hill will be presenting to you on “How to fix a football match”. Learn how the fixers actually operate and what they do to avoid discovery. It’s not always as it appears – so listen to an expert who has investigated match-fixing in detail so you’re as informed as you can be

LearNiNg objectives

target audieNce

goaLs of the coNfereNce

To understand what is happening within the industry today. To take home pertinent information regarding setting up base in Malta. Know what Malta & Europe are doing to overcome challenges the industry is facing.

This seminar is ideal for C-level leaders, managers or aspiring individuals that are active in the gaming industry as an Operator, Key Official, Affiliate, Service Provider or those individuals looking to start up.

The Goal of this Conference is to provide a platform to the iGaming Industry to discuss trending topics, network amongst peers and explore Malta as an ideal jurisdiction to set up shop. Malta, as one of the most credible jurisdictions is the ideal setting to discuss the industry in detail.

iGaminG

Malta Business Review

www.maltaigamingseminar.com

erik angeloW,

Chief Executive Officer, FortyTwo Telecom Fortytwo Telecom is proud to be sponsoring the Malta iGaming seminar, a top event for the international iGaming community. As a telecommunications provider, specialising in mobile messaging solutions we look forward to bringing to the table our services, in particular our International SMS Gateway as well as our ideas as to how we can support the iGaming community.

NetworkiNg An iGaming seminar is nothing without networking opportunities. Indeed MiGS is designed to be a networking-centric event and includes several interaction opportunities for high profile iGaming people, both from the industry and the regulatory aspect, with only a limited amount of exhibitors thrown into the mix. MiGS is not a massive show where one meets a thousand people and remembers none. With a delegate number averaging 300, at MiGS you will meet everyone and leave Malta friends with most of them.

WarWick Bartlett, Chief Executive Officer, Global Betting & Gaming Consultancy As a consultant to the Maltese Government in their initial stages of setting up the Jurisdiction, it is a pleasure to be one of the speakers at the 6th edition of the Malta iGaming Seminar during November this year. As one of the leading Global iGaming consultancy firms, MIGS is an ideal platform for us to share our knowledge in that it has a proven track record of attracting an International audience.

ABOUT MIGS The Malta iGaming Seminar (MiGS) has now established itself as a must-attend event among the international iGaming community, with key participation from leading players in this annual informative and networking event held in Malta. MiGS 2014 will be the sixth edition of this annual event. The past five editions were successful in delivering key topics to decision makers, executives and key players in their respective line of business. They were also successful in bringing a host of important speakers to Malta to give their views on this ever-growing industry. This yearâ&#x20AC;&#x2122;s edition will be held on Tuesday 11th and Wednesday 12th November at the Hilton Hotel, in St Julians, Malta. The seminar will feature a host of international speakers, a different, exciting and revamped agenda and a tweaked format that will make it more interactive, interesting and promises to be full of debate. MiGS 2014 has two full days of talks, panels, keynotes, meetings and networking events planned.

www.maltabusinessreview.net

Banking news

Malta Business Review

FIMBank Group Chairman with the Greek Management team

FIMBank Inaugurates Its HellenIc BrancH In atHens FIMBank, the Malta-based trade finance specialist, has officially inaugurated its offices in Athens, from where it will service the Greek market, providing a comprehensive range of trade finance and banking solutions, targeting corporate clients, particularly traders, importers and exporters. FIMBank’s operations in Greece are run by a team of Greek professionals, all of whom have first-hand experience of this country’s corporate banking and commercial finance sector. The team is headed by Demetris Zouzoukis.

The FIMBank Hellenic branch was inaugurated by the Group’s Chairman Dr John C. Grech together with Dr Armin Eckermann, Head of Trade Finance Group. In his address, Dr Grech highlighted the fact that FIMBank’s presence in the Greek market was a reflection of the effectiveness and versatility of the Bank’s robust business model and FIMBank’s confidence in the resilience of Greek business and the competence of its entrepreneurs. He said that FIMBank had managed to remain focused on highly specialised trade-related business, and the kind of complex commodity transactions that require a more personalised service and bespoke approach. “Consequently”, he stated, “not only has FIMBank managed to build a strong reputation as a global leader in trade finance, but it has also made its mark as a major international factoring franchise, operating in markets as diverse as Brazil, Russia,

India, Egypt, the Middle East, and now in Greece”. Commenting on FIMBank’s strategic plan for Greece, Dr Eckermann explained that the development was prompted by the potential to provide alternative financing solutions within the Greek market, in order to bridge current limitations being faced by local businesses. “FIMBank’s presence in the Greek market will enable it to provide forfaiting, factoring and other alternative trade finance solutions in support of Greek companies during these challenging times. We are confident that the comprehensive technical know-how and business acumen of the team we have set up in Greece, led by Demetris Zouzoukis, will translate into a very positive experience for FIMBank in this market”. MBR For information about the FIMBank Group please visit www.fimbank.com. www.maltabusinessreview.net

If weâ&#x20AC;&#x2122;ve reached the top of the Everest we can reach anywhere.

DELIVERING

TO AND FROM THE

FAR EAST

Weekly Direct Groupage Service from Hong Kong, Shanghai and Singapore Full Container Loads Possible Transhipments to Europe and North Africa Tracking of Shipments Competitive Rates T: +356 2124 2311 E: sales@expressgroup.com Express Trailers this year proudly supported a team of four Maltese climbers in their successful climb on top of Mount Everest.

www.expressgroup.com

TransporT & logisTics

Malta Business Review

From left, Charles Arapa, Franco Azzopardi, Johann Vella, Nicole Vella, Jesmond Mifsud and David Fleri Soler following the presentation of the awards

ExprEss TrailErs Wins TWo aWards aT FirsT EdiTion oF Translog aWards At the first edition of the Translog Awards, EXPRESS TRAILERS secured two awards – Best Freight Forwarder of the Year Award and Best Warehouse Facilities of the Year Award. Express Trailers was awarded the Best Freight Forwarder of the Year award for its service to companies who want to launch generic medicines originating from non-EU countries into European Union countries. This meant reinventing the process from non-originating countries, shipping to Malta, storage in quarantine under special Malta Medical Authority permits and batch-releasing these products for launch in the respective destination countries at midnight +1 minute of patent expiry. “With over 20 years’ experience in exporting locally-manufactured medicines, Express Trailers saw the opportunity in attracting nonEU originating products destined for European markets to hub them in Malta to be nearer to the markets for which these products are destined and thus solving regulatory issues related to the release of these products in their respective markets. In fact, we were one of the first freight forwarding companies in Europe to be listed on the Eudra GMDP Database with a Wholesale Dealers License,” explains David Fleri Soler, Head of Sales and Business Development at Express Trailers.

“Offering this service rested solely on quality issues with the Malta Medicines Authority, on obtaining the WDL License for the local storage of pharmaceutical products, the ability to import these medicines and batchrelease them from our warehouse, having a temperature-controlled fleet with which to distribute the products and also on having completed our two fully-equipped pharma warehouses in 2012, also certified by the Malta Medicines Authority,” added David Fleri Soler.

Our greatest reward comes from satisfied clients who trust us for our credibility, experience and our commitment In fact this led to the second award of Best Warehousing Facilities of the Year, the result of years of investment and consolidation inthe company’s warehouse processes and customer-driven solutions. “We implimented Warehouse Management System software which was integrated in a way that complemented our existing customised freight-forwarding set up and established a specialised managed warehousing product offering receiving cargo, barcoding, pick & pack, stock inventory and live visibility, different

storage solutions and distribution from a centralized location” explained David Fleri Soler. “Through our platform, we improved our clients’ stock visibility and control leading them to achieve more cost-efficiencies and more reliable inventory management, we strengthened our competitive advantage to our customer offering and portfolio of services and enhanced our business capability both on the local market and also placed us on a better platform to offer efficient and reliable services in marketing Malta as a distribution centre for North Africa and Europe. Charles Arapa who heads our Management Information Systems and who led the implementation of this project and close-to-zero error operation was instrumental for this success to be obtained,” added David Fleri Soler. “Vision, a will to succeed and an obsession to be leaders in our sector are the main drivers of this company, not only when it comes to award presentations but in our daily operations. Our greatest reward comes from satisfied clients who trust us for our experience, credibility and commitment. These two awards would have not been possible without the dedication of all those involved in making Express Trailers, one of the leading and most trusted transport and logistics company in Malta. We especially dedicate these two awards to our hard-working team of employees and management and we thank the investors for the trust they put in the company’s management,” concluded Franco Azzopardi, Chairman and CEO of Expresss Trailers following the awards ceremony. MBR www.maltabusinessreview.net

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Malta Business Review

ARE WE All EuROpEANS Now, oN ThE sAmE pAgE? by Patrick J. O’Brien

The idea of the unification of Europe was a dream until it became a real political goal

“A day will come when all nations on our continent will form a European brotherhood…A day will come when we shall see… the United States of America and the United States of Europe face to face, reaching out for each other across the seas.” Victor Hugo – 1848

ow, the EU is one of the main bodies which plays a decisive role in the world’s politics. It has plenty of uncertain challenges, where it makes mistakes and where it wins. The emerging European Identity is of interest as I wonder how many of us really see ourselves as Europeans, fighting as a united group rather than a nation with our own national identity, out on our own. It would be true to say that until the financial crisis, European identities were pretty stable. But the financial crisis has shifted the sense that people in Europe are in this together. This has been most pronounced in those citizens who sometimes thought of themselves as Europeans. There have been decreases in the number of citizens who sometimes think of themselves as European in Spain, Portugal, Italy, Ireland, Great Britain, and to a certain degree even Malta, France and Germany. Not surprisingly, this decrease in European identity has been accompanied by the resurgence of right wing nationalist parties across Europe. It is worth thinking about why the sense of being European has decreased so much. The European politics of the crisis have

been very ugly. There has been little or no sense of solidarity from the “northern” countries towards the southern countries. Those citizens in the southern countries have heard these sentiments loud and clear and their reaction has been as one would expect. Who would want to be associated with people who thought ill of you?

supporters and its vulnerable citizens. Politicians are fond of saying that crises are opportunities to make change. This crisis has produced, not more of popular will to solve problems at the European level, but a huge skepticism that such a solution will be in the interest of all citizens. This skepticism will not go away.

There have been decreases in the number of citizens who sometimes think of themselves as European

It is a fantasy, given the resurgent nationalisms across Europe, to believe that suddenly a sense of common fate will sweep through northern Europe to produce a European wide solidarity and support for a European social democracy. And if it did, those who live in the southern countries would be suspicious of the conditions attached to such an offer. MBR

Those in the south wonder, “Europe, what Europe?” and throw their lot in with national political parties who say they will try and protect them from heartless, neoliberal global capitalism as presented by the EU and the IMF. Citizens in the north cannot be faulted for not wanting to pay for the economic errors or misdeeds of the south. Since the vast majority of them already view themselves as mostly having a national identity, they do not have a sense that they “owe” those in the south anything, because they are all “Europeans”. Indeed, many of them have even thought of themselves as being European at all. Ironically, the attempt to solve Europe’s banking problems at the EU level and within the Eurozone has undermined support for the European project of both its staunchest

EDITOR’S NOTE

Patrick has worked in all forms of the media as a journalist, educator, and public relations specialist. He is senior writer on Malta premier business publication Malta Business Review as well as being a contributor on The UK Times and The Mail. Recently he was awarded the title of International Trade Journalist 2014 presented by PBS. Patrick is Director of Communications, EXANTE based in Malta. www.maltabusinessreview.net

Do you follow ‘Best PrActice’? by Werner E. Jung

If yes, are you sure you really understand your own business? Do you really believe you can play eye to eye with the big boys by just emulating “the others”? Best Practice has become a common buzzword when comparing performance in the competitive market place.(1) In the mid 80’s, at the beginning of the information age, there was a very popular phrase in the US: “You either lead, follow or get out of the way”. So, by applying Best Practice,, you have decided to be a follower. This could be harder than you think because product life cycles have become increasingly shorter so you might find that the harder you try, the more you fall behind….

ctually “Best Practice” in the competitive context has been coined by business schools and consultants. It all started when the big players of consulting discovered benchmarking and compared how a company was performing against the leaders of their industry. The differential was then termed the “Performance Gap”. This became, and still is, an important tool for financial analysts which and can greatly influences stock market valuations. That was the point where everybody started looking at the market leaders and tried to analyse what they where practicing in order to be “The Best”. These were the heydays for consultants; all we had to do is go out and collect lots of data. Unfortunately most people take the time to consider the qualitative factors, looking into cause and effect. All you had to do was to aggregate all the data into fancy charts. Bingo, it made consultants look like the “know it all” experts and we could could give you a recipe how to step up to the market leaders. So, when you want to be one of the best all you need to do is to hire a consultant who will tell you how “the others” are going about things? ever thought about who defined the criteria for the benchmarking and who “the others” really are? Fact is that the only criteria which count for your business are those of your customers 20

and your specific market! In the case where you have a direct competitor who makes or markets a product or service which is interchangeable with yours and who beats the hell out of you on the open market – it might well be worth looking at what he/she is doing right and you are not. This does not mean, however, that you should copy him/her slavishly; rather it implies that you should apply great efforts to offer a “better mousetrap” for your customers.

Fact is that the only criteria which count for your business are those of your customers and your specific market

Benchmarking started in the early 80s when they were losing ground against their Japanese competitors in the copier market which they had dominated for a long time. Under the leadership of Robert Camp they followed these initial steps: 1. determine what to benchmark, 2. determine who to benchmark against. This means that they themselves decided what and who to look at. Then they did their own analysis according to their self defined criteria.

When J. Womack and D. Jones first published their epochal book “The Machine That Changed The World” (2) in 1990 everybody started following the teachings of the Toyota Production System guru Taichii Ohno at the end of the 20th century. Toyota became the symbol for “Best Practice”. This was the fertile ground out of which grew such concoctions like Flow Manufacturing, Six Sigma, Lean Management, Demand Flow Technologies etc. and everybody started using Japanese expressions such as muda, gemba, kanban, poka-yoke etc. Some clever people even tried to make a religion out of every single one of the buzz words; some of them even got rich that way. Then came the Toyota recall crisis of 2009 to 2011. Toyota of all companies, being hailed as the leader in terms of quality and best practice! In an interview with Automotive News in May 2014, Toyota North America CeO Jim Lentz said Toyota’s recall crisis taught the automaker to be much more transparent, both inside and outside the company. You have to be able to listen to your customers, not just hear them. They promised to listen more closely to understand what’s going on, and not just spending time on technical issues.” What had happened was that at Toyota they had gotten complacent and they were resting on their laurels. They were praised as

ManageMent

“the best” and everybody was trying to follow or copy them, while in fact, Toyota was standing still and falling behind. “Listening to your customers” is the conclusion drawn from the disaster. Are you still wondering why over 75% of all Best Practice implementation projects fail, when even the perceived leader stumbles? Best Practice at some point has been hailed by executives as the answer to the dogma that the key objective of management is to maximise shareholder value. This keeps the focus on short term results which has led us into the financial crisis of 2008 when instead one of the original objectives of Best Practice was sustainability.. It does appear though, that some people, except investment bankers, have learned from this crisis. By the time you followed today’s Best Practice, you are already behind by tomorrow. Today is the yesterday of tomorrow…. And let us not forget that values and objectives within society are changing,with increasing velocity.

By the time you followed today’s Best Practice, you are already behind by tomorrow

Your customers care about your products, services and your business practices. If you are just following someone else’s practices, why should they come to you when they can have the original? This does by no means imply that you cannot learn from others but if you want to lead, you need to draw your own personal conclusions and act accordingly. In spite of the many failures there are also examples of successful companies who have implemented their own Best Practice. Note, the emphasis is on “their own”. Increasingly business practices are also scrutinised in view of things like ethics, social responsibility, sustainability etc; in other words, qualitative criteria become more important which are not easily aggregated onto a simple chart.

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Companies who do not have an inbred culture of listening to their customers reach a point where all of sudden they have the urge and pressure to “reinvent” themselves as a last remedy. When management realises that they have to break with the status quo they find that there are very few roadmarks which point them in the right direction. In order to save the day they resort to tools like benchmarking, balanced scorecard etc, which tends to bring them right back to looking at Best Practice of others. Instead of looking at the vast amount of data available at a mouse click we should maybe revert to such “old fashioned” ideas like Continuous Improvement or The Learning Organisation. In the latest edition of the Sloan Management Review, Sarah Kaplan and Wanda Orlikowski in “Beyond Forecasting”(3) come to the conclusion that by 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.- More on these subjects in part two in the next MBR edition. MBR FOOTNOTeS:

In this context we are talking about industries in a competitive markets, where best practices are considered as a means of gaining a competitive advantage. The original context of best practice was derived where industries agreed on certain standards of action, quality and safety. Commonly this a means of avoiding complex legislative intervention or specific government regulations. Examples for that are “GMP” good manufacturing practice in the pharmaceutical industry or “GAAP” generally accepted accounting principles for the accounting profession.

(1)

(2) “The Machine That Changed the World”, James P Womack, Daniet T Jones, Daniel Roos, Harper Perennial, Nov. 1990 (3) Sarah Kaplan and Wanda Orlikowski “Beyond Forecasting: Creating New Strategic Narratives” MIT Sloan Management Review, Fall 2014, Pg 23 – 29.

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. www.maltabusinessreview.net

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IoD Malta ChaIrMan JaMes satarIano represents Malta at IoD global ConventIon In the UK

IoD Malta Chairman James Satariano attended the 2014 IoD Annual Convention at The Royal Albert Hall in London as the representative of Malta’s Directors.

Held at London’s Royal Albert Hall, the IoD Annual Convention features a line up of inspirational speakers carefully selected for over 1000 senior business delegates, plus a number of topical panel discussions and thought provoking interviews. Broadcaster and historian Dan Snow opened the Convention.The day was curated with a director level audience in mind. Mr. Satariano and the other delegates were able to listen to global leaders in their fields. The ability to innovate is one of the key components of business success, and was the core theme for the 2014 event. Speakers at the Convention included Travis Kalanick, CEO and founder of Uber, Jimmy Wales, founder of the very well-known Wikipedia, Jon Matonis, Executive Director and Board Member, Bitcoin Foundation, Will Hayward, Vice President, Europe, BuzzFeed, Susan Sobbott, President of Global Corporate Payments, American Express and Tom Johnstone, President and CEO of AB SKF. British Chancellor George Osborne gave a rousing address and urged businesses to raise their heads “above the parapet” and counter what he sees as an anti-free market movement led by trade unions and charities. Osborne said principles of enterprise and business as a force for widespread prosperity were “up for grabs” for the first time in his adult life.

Tuesday, 14th October 2014, Malta – Institute of Directors Malta Branch (IoD) Chairman James Satariano attended the IoD Annual Convention 2014 at the Royal Albert Hall in London on October 3. Mr. Satariano met with various members of the IoD top-tier executive team in preparation for a number of initiatives being launched in Malta soon, including a workshop on November 13 at the MFSA to be addressed by Dr. Roger Barker, Dr. Anthony Cremona and Dr. Michelle Buontempo, which will focus on issues being faced by corporate service providers.

Osborne’s comments about businesses taking a stand in a battle of ideas around capitalism contrasted somewhat with a perspective from his fellow speaker, Peter Kellner, president of the pollsters YouGov. Setting out a list of controversial business practices such as zerohours contracts and large executive bonuses, Kellner urged business leaders to consider how their behaviour affected their reputations. He flagged up the dwindling reputations of those in power – be it in central government, local government or business.

Principles of enterprise and business as a force for widespread prosperity were “up for grabs” During the Convention, Mr. Satariano met with Dr. Roger Barker, IoD Director of Training, who will be in Malta in November to address a workshop organised by IoD Malta. IoD are running an event at the MFSA to explain the implications for Corporate Governance and anti-money laundering of the Company

Service Providers Act and its impact on corporate service providers. Dr. Barker is the keynote speaker. Mr. Satariano offered his thoughts on the 2014 event by saying, “The IoD Annual Convention is one of the world’s most important business gatherings and to represent Malta’s Directors at such a prestigious event is a great honour. Malta’s reputation as a growing dynamic economy is reinforced by attendance and visibility at such events, we have to be seen in the mainstream of global business today. London is certainly a centre of the world economy and it’s been a pleasure networking with so many distinguished delegates. Malta’s place as a financial jurisdiction, regional hub and tourism destination have to be articulated at every turn so that we remain competitive and relevant. The IoD Annual Convention is an event steeped in tradition which dictates the business agenda for yearsto-come, that’s why it is so vital for Maltese business to be present. It’s also an event where SME-owners can seek inspiration from some of the greatest business minds and political figures in recent history. The fact that Malta’s Prime Minister was in London and talking at a conference this week keeps the country in the limelight at the right level and amongst the right circles.” MBR www.maltabusinessreview.net

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Feature: Green ManaGeMent

Malta Business Review

Harnessing THe Power of JeT sTreams by Fabian Baumann

In an interview with Davide Baratto, CEO of KiteGen Ventures, we find out about KiteGen- a concept developed in Italy for a wind harnessing machine that takes power from high altitude winds

MBR: What is KiteGen Venture and what is its main purpose?

for the industrial deployment of the KiteGen technology.

DB: KiteGen Venture (KGV) is an Italian company which works in the field of renewable resources and which is in charge of the business and industrial development of KiteGen Research Technology (KGR). Its main purpose is to launch KiteGen on the market, through specific marketing plans, which can pull this technology alongside traditional energy supply system.

MBR: What your projects for future development are and how will you extend your system?

MBR: What is KiteGen in specific and what makes it unique? DB: KiteGen represents a radically new concept in the field of renewable resources, with a particular focus on wind energy power. What makes KiteGen unique is the fact that our engineers have been successful in developing a new technology based on the exploitation of high altitude winds which are abundant, constant, focused, able to restore themselves, sustainable and geographically well balanced. Thanks to a specific technology, called the KiteGen stem, this system can produce a large quantity of energy, with zero emission of carbon dioxide. KiteGen technology is covered by a large number of granted patents, completely owned by KiteGen Research and KiteGen Venture. MBR: What is KiteGen stem current development status? DB: Nowadays we are running final tests on the wing which has specifically been designed for the industrial process. Even if previous versions worked perfectly well on the used prototypes, this improvement is absolutely necessary

DB: What KiteGen Venture is focusing on at the moment is to create new power plants all over the world, through strategic international partnerships and active co-operations with institutional and retail investors. Thanks to the recent approval of all due permissions, the first operating farm is to open next spring. MBR: How can KiteGen be useful to Malta? DB: KiteGen could represent a double opportunity for Malta. On one side, it can help the nation to meet the EU demanded standards in the field of renewable resources, by setting aside traditional power plants, fully respecting the specific characteristics of the Island. On the other side, thanks to KiteGen technology, Malta could stand as an example of efficiency and progress, being the first place on earth which can exploit such a large amount of green energy. MBR: Which advantage does KG hope to obtain from Maltese stakeholders? DB: We could have a common goal (affordable industrial production of renewable energy) and a common interest to reach this goal in the shortest timeframe. At an early stage, financial investment from Maltese stakeholders could significantly help to cut the time for the remaining stage of the industrial development and of the machine manufacturing and delivery. This means a clear reciprocal advantage. MBR Local Representative: Joseph Galea | Mob: +356 79826981

EDITORâ&#x20AC;&#x2122;S NOTE KiteGen Venture (KGV) is an Italian company which works in the field of renewable resources and which is in charge of the business and industrial development of KiteGen Research Technology (KGR). Its main purpose is to launch KiteGen on the market, through specific marketing plans, which can pull this technology alongside traditional energy supply systems. KiteGen represents a radically new concept in the field of green energy power. What makes it unique is the fact that our engineers have been successfull in devoloping a totally new technology, called the KiteGen Stem, based on the exploitation of high altitude winds which are abundant, constant, focused, able to restore themselves, sustainable and geographically well balanced. The machine is formed by two key components: the kite and the base. When powerful blasts of wind fly the kite, its wire ropes start to stretch, activating the rotors placed on the base, thus producing green energy, with zero emission of carbon dioxide and absolutely no waste. The whole technology is covered by a large number of granted patents, completely owned by KiteGen Research and KiteGen Venture. Nowadays we are running final tests on the wing which has specifically been designed for the industrial process. Even if previous versions worked perfectly well on the used prototypes, this improvement is absolutely necessary for the industrial deployment of the KiteGen technology. What KiteGen Venture is focusing on at the moment is to create new power plants all over the world, through strategic international partnerships and active co-operations with institutional and retail investors. Thanks to the recent approval of all due permissions, the first operating farm is to open next spring. www.maltabusinessreview.net

EntrEprEnEur rEd ZonEs: 4 signs Your HEaltH MaY bE at risk by Michael Hartzell

There’s nothing like owning your own business. You get to set the rules; and have the freedom to create new concepts and ideas that are potential world-changes. With all of the work that goes into entrepreneurship, you may be overlooking something else important you’re in control of: your health. Bad health habits are prevalent among type-A personalities because they’re always on the go. You want to get the most out of life, and that is part of your natural drive to success. In order to continue the journey, it’s important to recognize some of the top red flags that indicate your health may be at risk. 26

You Don’T have Time for a wellneSS viSiT Long wait times combined with cost and commuting can turn any busy adult off from their annual wellness visit. Skipping out on these crucial doctor’s visits can quickly turn into a downward spiral. Patients who skip one year often find that the time accumulates to several years before they’ve had their health checked out by a doctor. Annual wellness visits are important to your overall health because they provide an opportunity for your doctor to detect underlying problems you may not notice on your own. Preventive care is the key to lifelong health, just as it is important to treat health problems before they become worse. Annual visits are longer than the average checkup because they include a physical, blood work, and any other tests your doctor may deem necessary. As with anything worth fighting for in life, sticking to these appointments takes work. You can ease the inconvenience of time constraints by booking way in advance, perhaps even taking the day off. This one day out of 365 could even potentially save your life.

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Malta Business Review

You Thrive During TimeS of STreSS Occasional stress is natural. You like having a packed schedule and wearing several hats. Meeting tight deadlines and working 18-hour days can even get your adrenaline going. But prolonged, continued stress can be extremely harmful to the body—even if you feel like you can handle it. Stress eventually leads to: • • • • • •

anxiety depression body aches and pains insomnia and daytime fatigue weight gain heart problems

You Don’T Think You neeD muCh Sleep Many entrepreneurs share a common characteristic: the ability to get a lot done with little sleep. In type-A personalities, this can become quite addictive. With so much to do, you may tell yourself there’s little time to get it all done. No matter how much energy you have on little sleep, the fact is that not getting enough shut-eye is dangerous to your health. According to Medline Plus, chronically getting fewer than seven hours each night may lead to: • • • •

cardiovascular disease diabetes infections obesity

making SmarT ChangeS now for a lifeTime of healTh

No matter how much energy you have on little sleep, the fact is that not getting enough shut-eye is dangerous to your health

Healthy lifestyle changes require both planning and commitment. Luckily, as a type-A personality, you’ve already mastered these two arts. The earlier you start out making changes to your health, the better the outcome. As an added bonus, you’ll find that you have more energy to tackle your endless to-do list. Start with one item at a time, whether it’s adding an extra hour of sleep, eating better, swapping a coffee for a quick walk, or practicing meditation. As you master one habit, you can keep building up until every facet of your life is in top health. MBR ReSOuRCeS •

How Does Stress Affect You? (2014, June). Retrieved from http:// www.heart.org/HEARTORG/GettingHealthy/StressManagement/ HowDoesStressAffectYou/How-Does-Stress-Affect-You_UCM_307985_ Article.jsp

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Medicines in My Home: Caffeine and the Body. (2007). Retrieved from http://www.fda.gov/downloads/Drugs/ResourcesForYou/ Consumers/BuyingUsingMedicineSafely/UnderstandingOver-theCounterMedicines/UCM205286.pdf

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Preventing Heart Disease – At Any Age. (2014). Retrieved from http://www.heart.org/HEARTORG/Conditions/More/ MyHeartandStrokeNews/Preventing-Heart-Disease—At-Any-Age_ UCM_442925_Article.jsp

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The Importance of Sleep. (2012). Retrieved from http://www. nlm.nih.gov/medlineplus/magazine/issues/summer12/articles/ summer12pg17.html

You Survive on Caffeine A couple of cups of coffee or tea doesn’t harm most adults. When you go beyond this amount, however, you risk developing adverse side effects. Caffeine is technically a type of drug. It’s a plant-based stimulant that affects the way the central nervous system works. While you may depend on caffeine to support your busy schedule, it poses the risk of numerous unwanted effects: • • • • • •

insomnia anxiety jitteriness headaches dehydration increased heart rate and blood pressure

Long-term mass consumption of caffeine can have lasting negative effects on the heart. For the sake of your overall health, it’s time to cut down. If you’re not sure how much caffeine you take in a day, try to be mindful of the frequency of your coffee intake. Drinking caffeine in the morning and as a pick-me-up in the afternoon is one story. If you’re having coffee at every meeting, in the office, and while commuting, you may be overdoing it.

EDITOR’S NOTE Author, speaker and coach - An Inbound Marketing Pro with Guerrilla Marketing Savvy. Over the last three decades, Michael Hartzell has received numerous national sales growth and profit awards.

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Middlesea's sMe insurance Policy by Ana Zammit Munro

Embarking or growing a business venture involves hard work, dedication and ongoing investment. Your hard earned achievements should be accompanied by an insurance policy to help to safeguard yourself, your enterprise and your employees

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the leading European Non- Life insurance companies, the leading Non- Life Insurer in Latin America and one of the main Reinsurance and Assistance groups in the world. Middlesea offers an extensive insurance product portfolio for both personal and commercial protection. The product range is modern and innovative to meet new, fast-changing consumer patterns and can be customised for small and large business operations.

Middlesea’s SME Insurance Policy provides cover for Property, Stock and other Trade Contents, Public and Products Liability, Employers Liability, Loss of Income, Money and Personal Accident Cover A specialised team will assist you with all your business insurance needs, guiding you towards the products which are best suited for your business whilst also providing assistance should any claims arise. MBR For more information call us on 21246262 or contact any of our authorised intermediaries. You may also visit our website on 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 Insurance Business Act, 1998 www.maltabusinessreview.net

GLOBAL TRADE

NOW POISED FOR

SUSTAINED RECOVERY Worldwide trade to accelerate in period of long-term growth Trade growth to average 8 per cent annually over the medium term China to double its lead in global merchandise exports by 2030 Special focus on India: the world’s fastest growing exporter

merging from a period of stagnation triggered by the global financial crisis, world trade is set to resume its growth trajectory in 2016, presenting fresh opportunities for businesses that have positioned themselves to benefit, a new study from HSBC Commercial Banking shows. Exporters and importers in cyclical sectors, such as transport equipment and metals, will be the first beneficiaries as the pace of growth in cross-border commerce recovers to 8 per cent in 2016 from just 2.5 per cent last year, according to the HSBC Trade Forecast. Details of the latest HSBC Trade Forecast were given during a business event held in Malta and which was addressed by Steve Box, Head of Trade and Receivables Finance – Europe, HSBC Bank plc; Michel Cordina, Head of Commercial Banking at HSBC Malta; and James Woodeson, Head of Global Banking and Markets, at HSBC Malta. Dr Chris Cardona, Minister for the Economy, Investment and Small Business spoke during the event. Looking further out to 2030, the Forecast projects that global merchandise trade will more than triple as astute companies capitalise on increasing productivity and consumer wealth in the emerging markets. “Businesses can’t afford to fixate on the risks posed by today’s geopolitical 30

problems and uneven rates of growth at the expense of their future planning,” said Simon Cooper, Chief Executive of HSBC Commercial Banking. “Conditions have undoubtedly been tough for trade recently, but we are now turning a corner. The medium and long term prospects look significantly better for businesses that have prepared themselves for recovery in both developed and developing markets.”

This is a great opportunity for Maltese businesses wanting to grow internationally. We want to be where the growth is, connecting customers to opportunities

Increasingly robust economic conditions in the US and the UK, along with a gradual rebound in the Eurozone, will give many international businesses a platform on which to build during 2015. In the short term emerging markets growth looks more vulnerable – while still rapid in relative terms – reflecting

a combination of structural challenges and political uncertainties in Eastern Europe and the Middle East. By 2030, however, China is expected to increase its overseas shipments five-fold as it strengthens commercial ties to emerging Asia, the Middle East and North Africa. China currently exports 1.4 times more goods than Germany and the US by value, and will widen this gap to almost three times US exports. India, meanwhile, is likely to be the world’s fastest-growing exporter from 2014 to 2030, and has the potential to move from the 14th largest exporter of goods by value to the world’s 5th largest. In order to explore this trend in more detail, the Global Connections report places a special focus on India. report continues pg 33

hSbC TRADE fORECAST

Malta Business Review

ThE RISE AND RISE Of INDIA’S GlObAl TRADE New Prime Minister Narendra Modi recently outlined a roadmap of structural reforms for India’s economy in his first budget announcement; reforms we expect will help the country boost its goods exports more than five-fold by 2030, at an average rate of 11 per cent a year. India’s exports are currently dominated by goods at the lower end of the value chain, including mineral fuels, textiles and jewellery. Looking ahead, however, HSBC forecasts more capital and skillintensive sectors like pharmaceuticals1 and automobiles2 will emerge as major contributors to overall exports (please see further information on these sectors in Notes to Editors). The Forecast predicts that the UAE will become the leading destination for India’s exports by 2030. With the UAE’s

expanding role as a re-exportation hub, this indicates a shift in the shape of future trade. India will also increasingly look east for export opportunities3. At the same time, India’s rapidly expanding consumer classes will present an enticing export opportunity for the rest of the world’s producers. By 2030, HSBC predicts that India’s imports will increase nearly five-fold. China is expected to capitalise most on the growing Indian market, expanding exports to the country more than nine times over and maintaining its position as the world’s leading exporter of goods to India. The US, meanwhile, will edge up from 5th position to 4th place, more than tripling its exports to the country in the same period.

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hSbC TRADE fORECAST

Michel Cordina, Head of Commercial Banking at HSBC Malta said: “The latest Trade Forecast shows that worldwide trade is set to accelerate in period of long-term growth. This is a great opportunity for Maltese businesses wanting to grow internationally. We want to be where the growth is, connecting customers to opportunities, enabling Maltese businesses to thrive and the Maltese economy to prosper. The launch in December 2013 of our €50 million Malta Trade for Growth Fund is our investment in Maltese businesses that want to explore business and trade opportunities overseas.” When concluding the event, Dr Chris Cardona, Minister for the Economy, Investment and Small Business said: “I am happy to say that Malta has had a good number of encouraging success stories, all of which show the potential for Maltese companies to develop their own products, innovate, and expand abroad. Our smallness rather than being a constraint has actually enabled us to specialise and cater for emerging economic niches. On its part, government will continue to enhance its efforts to make our business environment more conducive to investment and growth.”

About the hSbC trAde ForeCASt Modelled by oxford econoMics Oxford Economics has tailored a unique service for HSBC which forecasts bilateral trade for total exports/imports of goods, based on HSBC’s own analysis and forecasts of the world economy to generate a full bilateral set of trade flows for total imports and exports of goods, and balances between 180 pairs of countries. Oxford Economics employs a global modelling framework that ensures full consistency between all economies, in part driven by trade linkages. The forecasts take into account factors such as the rate of demand growth in the destination market and the exporter’s competitiveness. Exports, imports and trade balances are identified, with both historical estimates and forecasts for the periods 2014-16, 2017-20 and 2021-30. Sectors are classified according to the UN’s Standard International Trade Classifications (SITC) and grouped into 30 sector headings. More information about the sector modeling can be found on http:// www.globalconnections.hsbc.com/

Malta Business Review

Hsbc Trade confidence index The HSBC Trade Confidence Index is conducted by TNS on behalf of HSBC in a total of 23 markets, and is the largest trade confidence survey globally. The current survey comprises sixmonth views of 5,200 exporters, importers and traders from small and mid-market enterprises on: trade volume, buyer and supplier risks, the need for trade finance, access to trade finance and the impact of foreign exchange on their businesses. The fieldwork for the current wave (11) was conducted between May - July 2014 and gauges sentiment and expectations on trade activity and business growth in the next six months. THe Hsbc Group HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from over 6,200 offices in 74 countries and territories in, Asia, Europe, North and Latin America, and the Middle East and North Africa. With assets of US$2,754bn at 30 June 2014, HSBC is one of the world’s largest banking and financial services organisations. MBR All Rights Reserved | Copyright 2014

EDITOR’S NOTE 1India’s strength lies in the production of generic drugs, which are an affordable alternative to well-known brands for emerging markets. Continued growth requires the right financial incentives and stronger R&D, as so far India’s capacity for innovation has been lower than its emerging market counterparts. With the right support, pharmaceuticals will be a fast-growing export sector, forecast to expand by more than 11 per cent a year between now and 2030. 2India has the potential to become an auto export hub in the medium to long term. Transport equipment currently accounts for less than 7 per cent of total goods exports, but leading car companies such as Volkswagen, Ford

and Renault-Nissan have invested heavily in India, calculating that the fastgrowing market will soon rival China. These companies are also shipping some of their cars abroad, to Europe and the US as well as to other emerging markets, which has helped India develop its expertise in state-of-the-art car production while forging new export partnerships. 3China will move from India’s 3rd leading exports destination today to its 2nd by 2030, Singapore and Hong Kong will maintain their rankings in 4th and 5th positions respectively. Meanwhile, Vietnam will rise from 12th to 7th, and Bangladesh will rise from 10th to 8th place.

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Making a Broad i M pa c t Part 1 by Martin Vella

“What I want to see in Malta are mainly two things- a more skilled work force in tourism and to regenerate a quality rebranding exercise in Tourism,” Dr Edward Zammit Lewis said in an interview with the Malta Business Review. He maintains that it’s not only a raise in numbers that we need, rather quality tourism, wherein we strive to have a tourism landscape which consolidates what we have, yet earns a better income.

MB: One of your recent initiatives has been launching a pilot project whereby a Hospitality Studies course is to be offered at Matsec level. How will this initiative improve the quality of Malta’s tourism product? EZL: Firstly, this initiative is a joint co-ordination between the Ministry responsible for Tourism, which I am heading, and the Ministry for Education. This is a direct upshot from a state of affairs we observed whereby tourism is ever increasing and has become a one-third contributor in a direct, or indirect manner to Malta’s Gross Domestic Product. We need a better skilled workforce, and we need our youngsters who are pursuing their academic studies, mainly at secondary level, to take decisions with regards to their future professional livelihood. We decided that hospitality studies will give them a better overview of what tourism can offer, not as a part-time job, or simply a summer pastime, but rather more as a profession. Therefore, the idea is that through the hospitality studies, you can obtain a Matsec level accreditation certificate. We will increase awareness with regards to what the tourism industry can offer, 34

The Minister for Tourism Dr. Edward Zammit Lewis during the professional quality tourism conference

where one can make a success of his or her professional life. MBR: How is the government working hard to maintain Malta’s competitiveness in the aviation sector and what can you tell us about the developments on the emission scheme and the single European Sky? EZL: First, with regards to Malta’s competitiveness concerning the Aviation sector, in general the Government views the aviation sector as a very important sector where we can excel within the next ten years. To date we achieved positive results with regards to aircraft registration. We are working not only to increase our register, but also to create a cluster of activities surrounding and complementing the activity, such as aircraft finance, which is still untapped. With regards to the emission trading scheme (ETS), the position of Malta is that adopted at the 38th ICAO Assembly last year. The EU applied the ETS before the timelines agreed at ICAO, a decision that automatically means further operating costs for our aviation industry, moreover for a State like ours, which is insular by nature.

The Single European sky has been a positive development, and we always worked towards the efficiency and safety of our skies. Our reservations lie with the SES II+, the latest package which is proposing separation of services amongst others within the Air Navigation Service provision. As a Member State on the periphery and with one air traffic control centre, we believe that one size does not fit all. Albeit all, we continue to work with our counterparts, to deliver a safer industry with less costs for the end consumer, who is the passengers after all, the tourist and the Maltese public alike. MBR: Air Malta chairwoman Maria Micallef told The Sunday Times of Malta the company was expecting a loss of €16 million. Do you agree with Prime Minister Dr Joseph Muscat that “priority for Air Malta was to carry out the restructuring plan agreed with the European Union” and what are your views on this please? EZL: I agree with what the Prime Minister said because the Prime Minister takes very keen interest on Air Malta. It was the decision of the present government to link Air Malta with the Tourism sector and not to consider Air Malta just as another transport

ExclusivE intErviEw

Malta Business Review

exercise, which does not imply that we will dismiss the work force. That was the first choice preference of the previous administration. We are not interested in that. We are interested in a cost cutting exercise in which there are no redundancies with Air Malta and we will carry this together with the CEO Philip Micallef, the Chair Person Maria Micallef, the board of directors and the whole management. There is recruitment exercise of a strong management ongoing at the moment and we are focused in completing it expediently. The government is striving to remain financially attractive not just for Air Malta but for all operators. With this in mind it is also in the process of revising the Aircraft Registration Act. MBR: How is Malta looking to the best market mix which includes more visitors from outside the EU? EZL: I have been a Minister of Tourism for the last six and a half months from April the 2nd 2014. The situation is that we are very strong within the traditional source markets such as England, Italy and Germany. We registered great results, there is no doubt. We inherited a situation from the previous government which had already a good momentum with regards to the source. However, in my opinion we are still too dependent on these source markets, whereas other countries are focusing on economies which we have three to four times economic growth than the average of the EU, such as India and China. The obvious strategy is to tackle these markets because they offer a higher spending income by the visitor. I am very confident of the potential which Malta has with regards to the cultural heritage, and we have a unique selling perspective in this area. Company. That plays a crucial role in the tourism industry for a sovereign island state such as Malta, wherein air connectivity consists of 98% of our transport. Air Malta handles 47% of our total amount in tourism and that explains the strategic importance of AirMalta. Now, with one sole Ministry having the airport and the national airline together within its portfolio, we can consequently adopt a more comprehensive and holistic approach, also for the longer term. A lot of work is being done with regards to putting our house in order with Air Malta, which is not an easy field. A lot of progress has been registered which does not necessarily hit the press. Secondly, we are working hard to reach our restructuring targets till 2016. That is when the restructuring plan we inherited, and which was agreed by the previous administration, will terminate. And we need to be in line with that. Thirdly, we are very interested not only in the restructuring plan, but in the general and long term commercial viability of Air Malta.

We are very interested not only in the restructuring plan, but in the general and long term commercial viability of Air Malta

I will be in a position within months to announce concrete initiatives which we are working on to attract the non-EU destinations which we are not accustomed to. We need to create a whole value-added package, whereby the hotel staff are trained to accommodate these people. I am confident that this will be or next objective- on the one hand to maintain the numbers which we get from our traditional source markets, but also to create other revenue generating markets which will give us a higher spending facility. MBR Part 2 of this interview will be published in our December issue.

My Ministry is focused on three things: • To strengthen the management and avoid use of expensive consultants • To continue running until the year 2016 with the European Commission to successfully complete the restructuring process agreed with the European Commission • To bring commercially viable Air Malta. MBR: If you had to change one thing with Air Malta in the immediate priority what would it be? EZL: In the immediate priority we are already working on a cost cutting

EDITOR’S NOTE Hon. Dr. Edward Zammit Lewis was appointed Minister for Tourism, in the Government of Malta, in April 2014. He was first elected to Parliament in 2013, Hon. Dr. Edward Zammit Lewis was immediately appointed as Parliamentary Secretary for Competitiveness and Economic Growth by the Prime Minister. Dr Zammit Lewis graduated in BA European Studies and International relations and subsequently obtained a Doctorate of Laws. He practiced as a lawyer in the Maltese law courts for 13 years. He is married to Notary Public Elena Farrugia and have one daughter Lucia.

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Investments

Malta Business Review

New INvestmeNt by melIta

The Minister for the Economy, Investment and Small Business, Dr Chris Cardona presided over the launch of a new investment by Melita to expand its existing state-ofthe-art data co-location services tenfold

Minister Cardona expressed his satisfaction at the unveiling of this new project, representing another phase of a multi-million Euro investment that Melita is rolling out over a five-year period, amounting to a total of €60 million. The extension to the existing Melita data colocation centre, which is currently under construction, is expected to go live towards the end of the first quarter in 2015. Minister Cardona described this investment as another milestone for Melita and another step forward in the Company’s business. “Results show that Malta has been doing well in comparison to the EU average and confidence in the Maltese economy has grown by 3.5%, in contrast to the EU and Euro zone areas where the Economic Sentiment Indicator has decreased by 1%.” said Dr Cardona. Minister Cardona said that these statistics auger well for the decision taken by Melita to continue investing in improving its services since economic sentiment has improved in practically all sectors, including the

services sector, where the great majority of businesses are predicting that the demand for their services will increase. Minister Cardona said that it is hard to think of any sector of the economy that is not dependent on information computer technology. Malta continually welcomes direct investment and practically all investors coming to Malta require the best infrastructure to support their business and demand high quality data services, more security, dependability and peace of mind, explained Minister Cardona. “Malta can proudly say – we can provide the infrastructure you need, we can help your business become a success,” affirmed Minister Cardona. Minister Cardona said that it is important that everyone plays a part in propelling Malta forward in the global market place. The government has developed a National Digital Strategy that is aimed at ensuring that government, business and citizens all seize the opportunities of the digital age and it is thriving to create the right environment to promote enterprise.

“Malta can proudly say –we can provide the infrastructure you need; we can help your business become a success” – Minister Chris Cardona

“We understand that innovation is vital and it is our job to encourage that, not get in its way,” stated Minister Cardona.

“ The government has developed a National Digital Strategy that is aimed at ensuring that government, business and citizens all seize the opportunities of the digital age” Minister Cardona said that he has no doubt that Melita will go on developing and expanding, and that the government will continue to offer its full support. The Minister concluded, “This is an industry where you never know where the road ends, but you can be sure the journey getting there will be exciting.” MBR www.maltabusinessreview.net

Malta Business Review

Real estate

RE/MAX MAltA tAkE hoME thREE out of twElvE AwARds At EuRopEAn ConfEREnCE Kevin Buttigieg,

Managing Director & CEO at RE/MAX Malta “What can I say?! I am really honoured and proud on yet another achievement and benchmark. Thanks to all the team, my brother Jeff, Mike Bonello, Gordon Valentino, Being honoured for so many international awards is excellent for our country as well as a testimonial of the excellent service we provide to our customers. This is the result of all the team at ReMax Malta, a close-knit network with strong ‘partners’ – and successful real estate agents in their own right working with ReMax.”

Jeff Buttigieg,

Regional Director RE/MAX Malta “What a great week we have done it again for the tthird year in a row!!! In top of that we added Re/Max alliance and Jeff Debattista winning the Individual award for the Most Transactions in 2013- aLL bringing home prestigious awards. Re/Max Malta winning 3 out of 12 awards is a great achievment. Now we’ll put some of the ideas we learnt at the convention to practice! Being number 1 and 2 in europe awesome!!!”

Michael Bonello,

Franchise Owner at RE/MAX Alliance “I feel very proud and elated to have won the number two accolade in europe for the most transactions done for an office. all our team and staff at the office deserve my gratitude, especially Gordon Valentino. I am even more proud to be associated with all my team and we shall continue building on this together with Kevin and Jeff.”

RE/MAX Professionals and RE/MAX Alliance Tigne were announced winners of first and second place respectively in Europe for the most transactions whereas Jeff Debattista, an associate from RE/MAX Alliance, Tigne won the award for most transactions in Europe as an individual. The company continues to spread their success in Europe, winning the top award for the third year in a row whilst adding second place to their awards chest. The accolades were presented at the RE/MAX Europe conference held at the CCIB conference Centre in Barcelona on the 24th November in front of over 900 RE/MAX affiliates. Malta was represented by over 20 delegates in Spain, where they all attended various seminars and networking events. Kevin Buttigieg, CEO of RE/ MAX Malta commented by saying, “The European Conference is one of two major events that expose our agents to new methods of doing business and networking with other regions in view of exchanging referrals from country A to B and vice versa.” Just this year we have had over 20 referrals sent from other RE/MAX regions, whereas we have sent some Maltese and foreign clients to other regions as well.” The company has expanded its operations this year with the opening of another three offices including Portomaso, Bay Street and in Ta’L-ibragg. According to Mr. Buttigieg by the end of 2014, RE/ MAX Malta will be one of the strongest regions in the world and he has expressed his ambition to win the Region of the year award in Las Vegas at the RE/MAX International conference. “We have been shortlisted two years in a row to win Region of the year and I have this feeling that this year is our year”.

HigHer education

Malta Business Review

COURSES STARTING SOON The eie Institute of Education is now 14 years old. The eie acronym stands for â&#x20AC;&#x201C; Excellence in Education. Excellence is confirmed by the student and graduate testimonials that eie regularly receives from satisfied customers. eie has grown into an established organisation both in Malta and internationally. Apart from locals, the institute hosts foreigners who choose Malta and eie as a place to further their education. One can opt to follow part-time, distance

learning or lecture based programmes, which are carefully designed to be both enticing and versatile â&#x20AC;&#x201C; what our working students require while studying and coping with their busy lives. Our education will help students reach their goals as a highly qualified professional individual to play important roles globally both in commerce and industry. All academic programmes are approved by the NCFHE, as per local regulations governing tertiary educational programmes. EIE Institute of Education is licensed by the Ministry of Education as an Institute of Further and Higher Education - (License Number: 2005-TC-001) MBR

AcAdemic courses stArting soon:

trAining modules stArting soon:

Postgraduate Diploma (MQF Level 7) in Management

Business Management & Administration- 16 sessions of 3 hours each

Advanced Diploma (MQF Level 6), Diploma (MQF Level 5), Certificate (MQF Level 4) in Business Studies

Cost Accounting- 16 sessions of 3 hours each

Advanced Diploma (MQF Level 6), Diploma (MQF Level 5), Certificate (MQF Level 4) in Accounting & Finance (Covered by Get Qualified Scheme)

Strategic Management- 16 sessions of 3 hours each

Advanced Diploma (MQF Level 6), Diploma (MQF Level 5), Certificate (MQF Level 4) in Marketing Management Advanced Diploma (MQF Level 6), Diploma (MQF Level 5), Certificate (MQF Level 4) in Professional Computing & Information Systems (Covered by Get Qualified Scheme) Advanced Diploma (MQF Level 6), Diploma (MQF Level 5), Certificate (MQF Level 4) in Tourism & Business Studies (Covered by Get Qualified Scheme) Advanced Diploma (MQF Level 6), Diploma (MQF Level 5), in Human Resources Development Advanced Diploma (MQF Level 6), Diploma (MQF Level 5), in Maritime Management (Covered by Get Qualified Scheme)

Organisational Behaviour- 16 sessions of 3 hours each International Trade & Transport- 12 sessions of 3 hours each Maritime Security & Safety Management- 12 sessions of 3 hours each Buyer Behaviour & Consumerism- 6 sessions of 3 hours each Financial Decision Making- 16 sessions of 3 hours each Structure of Tourism & Travel- 16 sessions of 3 hours each Programming- 16 sessions of 3 hours each Journalism- 8 sessions of 3 hours each

A certificate of attendance will be presented to those students who attend at least 90% of the lectures. To guarantee individual attention, classes are limited to small numbers, so early booking is recommended. We invite you to call eie on 21332804 or 21332805 or email us on info@eie-group.com for any assistance.

Diploma (MQF Level 5), Certificate (MQF Level 4) in Journalism

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Malta Business Review

Arts & Culture

VALLETTA IN TER NATIONAL BAROQUE FESTIVAL 2015 PROGR A MME Booking for the Valletta International Baroque Festival 2015 is well underway. The success of the Baroque Festival on the international cultural stage is evidenced by the growing interest from Tour Operators who are bringing in more overseas visitors specifically for this event. It is, therefore, advisable to book early for 2015 Festival as some events are already close to being sold out. With 21 events over 15 days in 7 venues the 2015 version builds on the success of the first two. The 2015 Festival is dedicated to the memory of Maltese composer Geronimo Abos as 2015 is the tercentennial anniversary of his birth. His music will be performed by Die Kölner Akademie, Passacaglia Ensemble (which features some of the UK’s leading period instrument players) and the Valletta International Baroque Ensemble. The Orchestra of the Age of Enlightenment returns to perform the glorious Bach Passion according to St John in St. John’s Co-Cathedral which will be offset by Michelangelo Falvetti’s magnificent “Il Diluvio Universale”, performed by the Cappella Mediterranea under the baton of Leonardo Garcia Alarcon at St. Publius

Church in Floriana, a new addition to the list of venues for 2015. The Malta Philharmonic Orchestra, conducted by Peter Stark, will present an innovative programme of 20th century works inspired by the baroque which includes a flute concerto by Lukas Foss performed by the Orchestra’s own flautist Rebecca Hall. The Festival programme also includes music ranging from baroque piano transcriptions of music by Bach, Handel and Gluck performed by Dmytro Sukhovienko to sacred and profane baroque music from the Americas performed by Ensemble Villancico and Handel concert arias presented by Robert King conducting The King’s Consort and countertenor Iestyn Davies. Bach features strongly in this Festival;

his Cello suites are performed by the worldrenowned Sigiswald Kuijken who will play on that rare instrument a violoncello da spalla and his Goldberg Variations by local pianist Joanne Camilleri. The European Union Baroque Ensemble will perform music by Handel and his London friends and the Festival’s resident ensemble, the Valletta International Baroque Ensemble (VIBE) will perform at two concerts. The Festival also includes events specifically for children and culminates with the Baroque Festival Ball which will be held in spectacular Sacra Infermeria Hall at the Mediterranean Conference Centre. MBR To book: www.vallettainternationalbaroque.com.mt or www.teatrumanoel.com.mt. For further information please consult the festival website www.vallettabaroquefestival.com.mt

2015 T E AT RU M A N O E L M A LTA Valletta, Malta’s Baroque Capital City and a UNESCO World Heritage Site, hosts the third edition of this unique baroque music festival in its Teatru Manoel, baroque churches and palaces

10th - 24th January 2015

www.vallettabaroquefestival.com.mt

0877. Teatru - Baroque Festival Advert - 185x130 - English.indd 1

07/10/2014 17:20

SMES

Malta fares well in the eurostat retail trade statistics for august 2014 and the european commission report on smes – ministry for the economy, investment and small business

oday, Eurostat published its press release on Retail Trade for August 2014 in the European Union.

Malta has fared in line with the average performance of the members of the Eurozone area and marginally under the EU28 group. On a month on month basis, volume of retail trade for August 2014 increased by 1.2%. This figure is up from the negative 1.1% registered in July 2014. Malta’s growth rate in volume of retail trade in August 2014 was in line with the euro area, which also stood at 1.2%, but marginally lower than the EU28 which stood at 1.4%.

Malta Business Review

positive signs of recovery in terms of employment, value added and growth in the SME sector over the period 2008-2013. in a report published today by the EU commissioner, ferdinando nelli ferroci, Malta’s economy is said to have weathered the crisis of recent years fairly well and so did the SME sector. SMEs in Malta represent 99.8% of all businesses and account for 73.2% of the economic value added and 78% of employment in the private non-financial sector. SMEs in the business economy have grown consistently. THE findingS fOR THE pERiOd 2008 TO 2013 ARE AS fOllOwS: ► SMEs increased by 4,800 (+20%) to a total 28,905 firms, ► Value Added grew at a rate of 16.7% and ► Employment in SMEs expanded with almost net 7,000 jobs, reaching a total of 98,000 (+7.7%). fOREcAST 2015:

However, on a yearly comparison, Malta’s growth in the volume of retail trade stood at 0.8% (August 2014), compared to 1.9% for the euro area and 2.5% for the entire bloc.

► An increase of 1,500 new SMEs, ► net employment increase of almost 4,000, ► Value Added is also set to expand.

Although yearly growth for Malta was lower than that recorded for the EU18 and EU28, yet it shows an improvement from the yearly decline of 2.7% that was recorded for July 2014.

The Ministry for the Economy, investment and Small business welcomed these positive results and stated that the Government is committed to address the recommendations made by the commission intended to further strengthen the SME sector, which represents the country’s economic backbone. This will come about by the full implementation of all provisions of the Malta Small Business Act of 2011. MBR

MAlTA SME pERfORMAncE Of SMES in 2013 The European Commission has classified Malta among the “front runners group” of EU nations which have registered concrete

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Malta Business Review

Trade & Finance

FIMBank acquIres controllIng stake In chIlean FactorIng house

IMBank, the Malta-based trade finance specialist, has announced its acquisition of a controlling interest in an established Chilean factoring house, First Factors Servicios Financieros, thereby expanding its footprint in South America. First Factors, which specializes in recourse and non-recourse factoring, as well as financial leasing, provides its services through six branches throughout the country, branches which are located close to the forestry, mining and fishing industries. The company, which was established in 2005, currently has 73 employees. Commenting on FIMBank’s latest venture, Group President Margrith Lütschg Emmenegger stated that the intention behind FIMBank’s acquisition of 51% of the participating interests in First Factors was part of the FIMBank Group’s strategy to develop further its international network and to “further extend our factoring franchise in South America”. The FIMBank Group currently provides factoring services in this continent’s largest economy, Brazil, through its joint venture company BrasilFactors S.A. Lütschg Emmenegger explained that the decision follows on FIMBank’s strategic decision to focus on a strong presence in

Latin America “The dynamic expansion of South–South trade in recent years created new trading opportunities in interregional trade particularly between the Americas and Africa. With our two JVs in Latin America we are better positioned to benefit from the increase in trade flows.” First Factors CEO Carlos Baudrand stated that First Factors will be rebranded to LATAM Factors in the coming weeks: “This rebranding reflects the wider scope of the company as a result of FIMBank’s acquisition. With a strong institutional investor we can now beyond Chile’s borders and actively seek factoring business, particularly in countries such as Peru, Colombia, Ecuador and Mexico.” For more information about the FIMBank Group please visit www.fimbank.com MBR

15, Portomaso. , St. Julian’s, Malta STJ 4015 Tel: 21387687 | Opening Hours: Mon - Sat 10.00 - 19.30 42

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A FinAncier's ethiopiA experience by Nicky Gouder

Africa really is a mesmerising continent – it’s intriguing, enlightening and definitely adventurous. So when I asked my girlfriend Maxine to join me on a trip to Africa this summer for a much-needed break from the office, I knew she would be happy to oblige. There was a catch though – I wanted to visit Ethiopia on a missionary experience.

his was not my first experience, as I started doing missionary work in 2009 when I went to Kenya with a friend of mine to help the project ‘Ġesu FilProxxmu’ by Dun Ġorġ Grima, the Maltese missionary priest who is now synonymous with enormous transformations in various villages around Africa. Having worked on Dun Ġorġ’s missions twice before, we decided to visit the projects he is currently running in Tulema and Jimma, in Gingo, Ethiopia. Ethiopia is a completely different reality to ours. I remember looking out of the plane as soon as we landed, and for as far as my eyes could see, there were no decent buildings in sight, no stable roads, and no traffic organisation – nothing at all. On our way to the nuns’ compound, what we called home for two whole weeks, all we could see were people without clothes, 44

Nicky Gouder with his girlfriend Maxine Grima with the chidren in Ethiopia

barefoot, and young children running in the streets, looking for food. From previous experiences I knew that our main challenge was to help as much as we can in a relatively short amount of time, and so, we barely had time to settle our bags before we headed off to work. Our main tasks included painting the walls of a kindergarten school, building a water facility and completing the construction of a children’s library. We could immediately see that most people do not live in adequate conditions and do not have enough food to eat or water to drink - basic needs we take for granted. One of the major shortages people in the village faced was the supply of water, so we put all of our efforts towards building a water pump for everyone to have access

I remember looking out of the plane as soon as we landed, and for as far as my eyes could see, there were no decent buildings in sight, no stable roads, and no traffic organisation – nothing at all to clean water. This was a huge task, but thanks to the funding we collected from donors in Malta, such as Alliance Trust Company Ltd; Capstone Advisory Co. Ltd; Capstone Assurance Ltd; Fenech Farrugia Fiott Legal; TAP-K Resources Ltd and Corinthia Group of Companies, as well as

CSR

Malta Business Review

The water pump in Tulema now provides clean water for the whole village after years of shortage

They celebrate every moment of life – because that is all that they truly have

our friends and families, we mananged to finance the project and see it through to completion. Seeing water come out of the pump for the first time was an incredible moment, we were all emotional. People were overjoyed and thanked us with tears in their eyes. I remember very clearly an old lady telling me that she used to walk for 3 hours a day to supply her family with clean water – “Now it’s here! I can’t believe it!”, she said. Would you believe?! It’s second nature for us to assume that water will come out of the tap when we need it. Another adhoc project we were involved in was the buying and distribution of food supplies to the families of Tulema village. Thanks to the funds we raised in Malta, we had spare money to provide 50kg of food for each family. This was enough to feed a whole

family for a month. You cannot imagine the happiness this brought to the entire village. Interestingly, despite all their challenges and extreme deprivation, I believe with complete certainty that they have something that we don’t – deep fulfillment and so much happiness. Whilst we speed through life at a hundred miles per hour and never seem to feel like we got anything done, they celebrate every moment of life – because that is all that they truly have. Moving forward, I hope to continue to contribute to the projects being managed by Dun Ġorġ Grima and ‘Ġesu Fil-Proxxmu’. I believe that with some effort and awareness, it is possible to change the lives of those families less fortunate than us, whether by trying to reduce wastage of food, making a donation, or doing missionary work. I have seen firsthand that a little goes a long way! MBR

EDITOR’S NOTE

Nicky Gouder is a chartered accountant by profession, a Tax and Accounting Partner of Capstone Group, and a member of the MIA. He is also director of AT Corporate Services Co Limited, a joint venture between Capstone Group and FFF Legal. www.maltabusinessreview.net

Finestre C H E A R R E DA N O L A T UA C A S A

Established by Domenico in 1964, the company De Carlo, which was initially an artisan enterprise, has always been operating in the field of wood processing. After 1989, thanks to the far-sighted contribution of his sons Nicola and Vincenzo focusing on new market needs, the company was steered towards a technological modernization and the introduction of innovative management systems. In 50 years and thanks to its skill, personal commitment, focus on flexibility and direct contact with customers, De Carlo has become a leader in the specific manufacturing and marketing of wooden windows throughout Italy.

De Carlo Casa Sicilia Showroom Viale delle Americhe, 52 Ragusa Tel. 0932 256761 - dcs@decarlo.it

www.decarlo.it

Feature: Green ManaGeMent

Malta Business Review

Performance, Design & Durability by David Grech

The 50th Anniversary is a time of great satisfaction for any Company. This is especially true in a concurrent period of market turmoil and increased international competition. This evidence, in any case, represents for De Carlo an even greater challenge that should push the search and definition of new products (as, for instance, the “minimal wood line”) that propels the company at the forefront of this industry.

now is experiencing its most important achievements MBR: What do you see as the major market challenges at present? VDC: The most important effort nowadays is to provide the markets with a flexible, tailor-made offer-based on the specific regulations and needs, without compromising the assurance of best quality in terms of performance , design and durability, in Italy and all over the international markets. MBR: What provides DE CARLO with an industry and market advantage? MBR: Could you tell us about your company’s background, inception, areas of work and your key industry objectives? VDC: De Carlo Infissi is a Company focused on the manufacturing of wood and wood-clad windows and doors. The scope of the Company is to build a Brand which act as the made-inItaly leader for the offering of high-performing and design fenestration products.

VDC: De Carlo background and long-standing investments in engineering a very wide range of products looking to their full life-cycle (i.e. nanotechnology finishes, special coating on hardware, usage of environmentally certified wood, new generation design and up-to-date operations system incorporated into products) is synonymous within the industry.

MBR: How do you view the benefit to your organisation in having an engineering technology base combined with 50 years of experience?

MBR: What is the extent of the company’s geographical market reach and how do you view DE CARLO’s participation in the Malta Green Management 7 Alternative Energy Summit?

VDC: The continuous process of production automation, combined with the longstanding and well-grounded experience of craftsmanship in woodworking specifically coming from the local community hystory, has represented a unique combination as the basis of the success which has driven the Company to the market leadership in Italy. Furthermore these factors have also exposed the De Carlo product to the most demanding markets worldwide as Israel, Uk and USA, where the Company

VDC: The target market for the De Carlo Products is made by all professionals and building sector operators who want to understand more about the huge opportunities given by the best fenestration products. These people are in all markets, but clearly the most promising we have faced are the Mediterranean Countries (especially Israel) and, on the other side, the US market where we already have delivered many high-end projects. The Maltese Market has already shown inputs and interest to be successful given the quality of project and

professionals involved in it. As additional factor, the De Carlo Product offering in the Maltese market will be eased by the close support of the Sicilian branch of De Carlo located in Ragusa which has a long expertise on product configuration, installation and any post-sales interventions.

The Maltese Market has already shown inputs and interest to be successful given the quality of project and professionals involved in it MBR: What are the company’s future plans in terms of, for example, expansions and general market penetration? VDC: The Plans of the Company is to keep the Italian market for its traditional presence in it. But the bigger challenge is to strengthen and develop a more capillary presence in the Mediterranean markets (as Israel, Malta, Morocco and, as soon as is possible, Lybia, where we already have delivered jobs before the war). Furthermore, a big target is to consolidate our success in US where through an important partnership (Reilly Windows and Doors) we can really gain a competitive advance on the most cutting-edge product development needs. Concluding, the plan of the Company is to consolidate the Italian market and to achieve the growth of the business on the international market , where the objective is to reach the 50% of the total turnover. MBR All Rights Reserved | Copyright 2014 www.maltabusinessreview.net

Malta Business Review

SME AwArdS

GRTU PV AwARd – Best Customer satisfaCtion 2014 CD Power Solutions has recently won a prestigious award from the GRTU – Malta Chamber of SMEs. The award was given through the Renewable Energy section within the GRTU and the awards were presented by Mr Paul Abela – GRTU President while Mr Noel Gauci President of the Renewable Energy Section gave an overview of how the old system was working and launched the new scheme available for domestic systems. In all there were 4 categories and CD Power Solutions Co Ltd won the Best Customer Satisfaction award 2014.

he award scheme was made possible due to the constant feedback the GRTU have picked up over the last year through the GRTU PhotoVoltaic Purchase Facilitation Scheme (PVPFS) launched with Bank of Valletta to enable clients invest in renewable energy and pay for the investment over 3 years. Commenting on the award is Martin De Bono – Business Development Director at CD Power Solutions Co Ltd “We are extremely pleased to have received this award as it really shows the dedication and passion we offer in the energy business. I need to state that it was an excellent effort from all the team at Power Solutions and

look forward to keep the same customer care and satisfaction which is now standard in our procedures.” About CD Power Solutions - Originally founded in 2005, CD Power Solutions is made up of professional engineers and business experts with many combined years of experience in installation and management. They have over the years achieved considerable energy savings and cost reductions for many large organisations. They also are the pioneers in Malta of Voltage Optimisation (energy saving technique), Thermodynamic Water Heating and Micro Inverters for Renewable Energy systems. For more information please visit www.powersolutions. com.mt or call on +356 9999 6162 MBR

Feature: green management

Malta Business Review

Corporate environmental SuStainability: adding value to the bottom line Matthew Spiteri, Director with Altern maintains that to enhance energy reduction individual commitment is key. In an interview with MBR, he says that setting quantifiable targets, specific to the micro scale, that can be understood and shouldered by the people using the areas in question proves to be an important first step to energy efficiency.

MBR: What are the key considerations to take when doing an energy audit? MS: Energy Audits come in a range of magnitudes, and often depend on the client’s needs, and the building or entity in question. Common to all energy audits is the pragmatic diagnosis of Energy-Use Points, and the detail of such audits is directly related to the depth of study of energy points. Today, with the introduction of Building Energy Performance Certificates, building envelope fabric is also becoming a critical factor within audits, aiding clients to choose between, for example, more thermal insulating walls over others. Finally, a fundamental element of our energy audits entails the study of the occupant’s lifestyle and method of using the available technologies. We are firm believers of the human input within the green energy market, and more often than not, an energy sustainable frame of mind is imperative for a building to be holistically energy efficient. MBR: What are some of the more common services or products that you provide and what might be a little more outside the box? MS: The team at Altern is made up individuals coming from varied technical backgrounds, from Power Engineering to Photometric analysis to Thermodynamic engineering. We try to apply all our knowhow within our services, in order to offer a more holistic and usable package to the client, examples of which include our Energy Audits tailored for the local scenario and applied to over 70 buildings across Malta and Gozo, and our innovative Building Energy Analysis, a unique way of digitally simulating the building within the Maltese environment, months before actually having the building in place. Such tools aid architects, construction companies and owners to identify the ideal materials and technologies to apply within their buildings, and quantify the financial and emission savings that can be achieved, leading to more informed decisions. In the light of the data gathered from such audits, our team strives to develop products

that our tailored to the client’s needs, specifically for the local region. This has led us to develop innovative products such as locally build LED lights, on and off-grid Photovoltaic systems, and modular Combined Heat and Power, increasing the tools by which one can run a business or building more sustainably. MBR: Very often after a plant puts in a new system and seems to be much more efficient, after a few years, it turns out that the machinery is using more energy than they are saving. How do you follow through on maybe some of the unintended consequences, some of the changes in thought in the environmental industry?

always start. We try and understand the daily processes of the individuals at different levels, from procurement procedures within the purchasing department, to the up-keep of the canteen area at shop-floor. This helps us to gain knowledge on how energy is used, what are the environmental priorities, and what is the management commitment. ISO14001 and ISO50001 are some of the tools used to set up procedures tailored for the client, guiding them along the way to tackily environmental sustainability holistically. MBR: What is the process for communicating energy reeduction goals and their importance to employees?

MS: The Alternative Energy and Sustainability industry is a relatively young market, and one which is continuously developing at a fast rate. Over and above, energy solutions tend to be very user specific, with few technologies being a one size fits all case. In this respect, we try and understand the user’s methodologies, occupancy levels, and energy profiles, both form a company macro and micro level. Such a strategy is also considered when dealing with retrofit technologies, in which case we identify the most economically feasible way to enhance efficiencies.

MS: Management commitment is important, yet employee collaboration is fundamental. Energy footprint reductions can be achieved through the individual, everyday choices of all the building occupants, the light bulb in the stores, the low pressure tyres of the delivery van, and the window blinds left closed during the day. It is through these small changes, coupled with technologies, that an entity can become truly environmentally sustainable, and this is what has to be homed-in to the people making up the organisation. How this is achieved, is really dependant on the communication methods set up within companies, but the substance and commitment is imperative.

Energy solutions tend to be very user specific, with few technologies being a one size fits all case

MBR: What are the metrics used by the company to monitor energy usage?

MBR: How do you help stakeholders that are seeking information on how organisations link their overall business strategies with environmental/social matters? MS: As mentioned previously, we believe that the foundations to a more environmentally friendly business or building are the people making up the entity, and this is where we

MS: Technically, energy is quantified by kWh, or Units as they are often referred. Yet through our experience we have seen that, graphs and charts comparing such values to every day, quantifiable magnitudes tend to influence the lay person more. Thus, we try and communicate energy information graphically and in relation to very well known magnitudes that effect the individual daily, such as the car’s fuel, the home’s electricity bill, and, best of all, food. MBR Contact details: Ing. Matthew Spiteri, Altern Limited, +356 2099 6465, info@altern.com.mt, www.altern.com.mt All Rights Reserved | Copyright 2014 www.maltabusinessreview.net

BUSINESS ENSE MORE EFFICIENCY. LESS BUREAUCRACY.

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TO ACHIEVE ECONOMIC GROWTH IN A SUSTAINABLE MANNER IT IS ESSENTIAL TO CREATE THE RIGHT CLIMATE TO ALLOW BUSINESSES NOT ONLY TO START UP BUT TO FLORISH. WE ARE COMMITTED TO ENSURE WE CONTRIBUTE TOWARDS CREATING THE RIGHT CLIMATE FOR YOUR BUSINESS. FOR FURTHER INFORMATION CALL 2290 1030 OR VISIT WWW.MEPA.ORG.MT

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Feature: Green ManaGeMent

Malta Business Review

EnErgizing a grEEnEr Lighting EnvironmEnt by Antoine Galea

RG Alternatives has established markets along the North Africa, Europe and some Arab countries

G Alternatives is an established enterprise operating in a relatively young and growing environment. The environmental challenges being faced by our world today offer us all numerous opportunities to become protagonists in shaping our new environment. Our vision is to be on the forefront of this drive, both in Malta and in Europe. Our products are manufactured by LTC, a company located in China of which RG Alternatives is one of the main share holders. RG Alternatives is the main supplier and distributor to Europe and North Africa for LTC. The major objective is to establish that our products are of excellent manufacture, reliable and also above all environmental friendly. We also ensure that all materials used are 100% recyclable. This means we take into account a lot aspects to determine the final product. A well-established leader in LED technology since 2009, LTC offers high quality energy saving options. LTCâ&#x20AC;&#x2122;s current product range includes LED tubes, bulbs, floodlights, highbays, down lights, panel lights and street lights. As the distributor and agent for European and North African markets, RG Alternatives is able to supply the market with excellent and innovative LED products, all of which come with an international warranty. RG Alternatives also offers friendly and efficient customer service in order to help customers with any queries they may have. We have supplied various types of LED light fittings to some of the most established local companies. These include from LED Downlights and LED panels for office environments, to LED tubes, LED high bays and LED flood lights in stores and production area as well as special LED flood lights for Aircraft Hangars. Our clients include ST Microelectronics, Baxter, Playmobile, Luthhansa Technic, Methode, Trelleborg, De La Rue, and others. Needless to say, we are still looking for new markets. We consider our participation in the Malta Green Management & Alternative Energy Summit as an opportunity to highlight our concern on energy management, and control. In short, to reduce wastes of resources as much as possible. Our plans are to keep abreast with current technology, and supplying our clients with innovative solutions, thus opening more market options. MBR

Antoine Galea - 9964 6240 www.maltabusinessreview.net

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STOP RIGHT THERE! DONT’T BOOK YOUR CORPORATE CHRISTMAS HAMPERS TILL YOU’VE SEEN WHAT WE HAVE TO OFFER! Send us an email on hampers@fbsmarketing.com or call us on 9998 4496 for further information

Feature: Green ManaGeMent

Malta Business Review

TuRNINg WaSTE INTO a RESOuRcE by Martin Vella

In his first interview with MBR, WasteServ CEO Tonio Montebello says WastServ is the Government’s implementation arm with regards to waste management locally, being the driver for waste collection and more separation for the preparation of waste for recycling, offering a number of services to local businesses, including the provision of essential infrastructure, guidance on the correct disposal of waste and training services.

MBR: Could you tell us about your company’s background, inception, areas of work and your key industry objectives? TM: WasteServ was established in 2002 with the main responsibilities being the organisation, management and operation of integrated systems for waste management. We operate a number of key waste facilities, most notably a Materials Recovery Facility for recyclable waste, a Mechanical Biological Treatment Plant for organic waste, two engineered landfills, a waste transfer station in Gozo, a Thermal Treatment Facility and five Civic Amenity Sites. Our key objectives can be encapsulated into one vision: turning waste into a resource. MBR: What do you see as the major market challenges at present? TM: The major challenges faced by WasteServ are mostly connected with public participation as well as industry cooperation in terms of more separation at source. Cooperation by the public has increased substantially over the years however is still lacking in some areas, especially among older generations. As regards commercial waste, privately run waste collection schemes are serving the business community well and the number of enterprises participating in sustainable waste management practices is growing, though yet again there is definitely potential for improvement. MBR: Can you mention some major projects and achievements WasteServ has successfully completed? TM: Apart from the operational facilities already mentioned, one of the major achievements was the rehabilitation of previously uncontrolled dumpsites. Thanks

to EU funds we have managed to create a Family Park in Marsaskala on what used to be a dumping site some decades ago, while works are currently in the finishing stages to rehabilitate the dumpsites of Magħtab and Qortin. The rehabilitation project has multiple environmental benefits, amongst which one cannot fail to mention the treatment of gases and subsequent green energy derived from this process. In the near future two other major projects will also be completed, namely a second Mechanical Biological Treatment Plant in the North of Malta and a three-in-one facility in Gozo catering for the compacting of mixed waste, shredding of bulky waste and sorting of recyclable waste. MBR: What is the extent of the company’s geographical market reach and how do you view your company’s participation in the Malta Green Management & Alternative Energy Summit? TM: WasteServ is inevitably tied primarily to the local market, though indirect links with foreign markets also exist given that much of the recyclable materials and hazardous waste collected locally are exported to facilities overseas via authorised intermediaries. Furthermore WasteServ is active in spearheading and facilitating initiatives through local councils, private schemes and private operators across Malta and Gozo. The Malta Green Management & Alternative Energy Summit is definitely an opportunity to showcase how waste is being turned into a valuable resource, while simultaneously learning more about other green initiatives being implemented.

MBR: What are the company’s future plans in terms of, for example, expansions and general market penetration? TM: Our vision is currently focused on improving the efficiency and effectiveness of our operational facilities. One of the measures to achieve this is the introduction of a third bag for organic waste. Other priorities include reaching national and EU targets, particularly the achievement of higher target rates for preparation for recycling together with all stakeholders. Where possible we are seeking to move away from being the operator of last resort and want to take on a more coordinative and monitoring role, while continuing to pursue educational initiatives. MBR All Rights Reserved | Copyright 2014

EDITOR’S NOTE Tonio Montebello joined WasteServ as Designate CEO in January 2014 later taking up the role of Chief Executive Officer as from March 2014. Mr Montebello, a Sociology and Communications graduate from the University of Malta and an MBA graduate from Maastricht School of Management – The Netherlands, has served in senior management positions both in the private and public sectors. Mr Montebello started his career in a local import and distribution company engaged in the catering industry. In 1999, he joined Mediterranean Aviation Company Ltd initially as Purchasing Officer, eventually moving on to managing various projects in Libya. In 2006 he briefly joined a Libyan company as General Manager and in 2007 he joined the Employment and Training Corporation as Manager – Marketing and Customer Care. During his tenure at ETC, Mr Montebello moved on to the post of Department Manager – Employers Services and finally to Head of Division – Employability.

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50 YEars of fDi

Malta Business Review

EY’s Malta attractivEnEss survEY 2014 We need to continue building on the positive results presented in the ey attractivness survey 2014 – Minister Cardona The Minister for the Economy, Investment and Small Business, delivered the closing speech during the EY’s Malta Attractiveness Survey 2014 held at the Westin Dragonara Resort. A number of foregin personalities from the political arena were present during the event including Alastair Campbell, Tony Blair’s former spokesman and Director of Communications and Strategy and Kazimierz Marcinkiewicz, former Prime Minister of Poland. Minister Cardona opened his speech by stating that there is no winning formula to success and, delving on the arguments made by Alastair Campbell, stated that the right questions need to be asked to ensure that we understand what role Malta should play in the international arena. Dr. Cardona said that events such as the one organised by EY helps us reflect on the big picture. “The Maltese economy is performing well but faces tough competition.” said Minister Cardona comparing Malta’s economic performance and rates of employment to those of other countries. To avoid poverty, unemployment and social problems the Maltese government has been investing in various areas including free education to ensure personal fulfillment of citizens and the needs of the economy. “We rejoice in high levels of employment in Malta but we will do more to move people from welfare by making work pay,” emphasised Minister Cardona. Minister Cardona also emphasised the importance of matching education to job opportunities and the needs of

businesses and that developments such as the maritime hub will create further job opportunities. The challenge, said Minister, Cardona, now lies in producing the personnel equipped to service the needs of the maritime industry. “We should also pause to reflect on how well we have survived the economic turmoil of the past few years,” said Minister Cardona. Dr. Cardona mentioned various sectors that have helped the Maltese economy strengthen and grow over the past years, including the financial services sector and tourism.

We should recognise what we have and build on that “Malta continues to attract direct investment, whether it be a small company relocating here because of our pro-enterprise environment or a vast country such as China having decided this is a place with long term potential,” said Minister Cardona. Minister Cardona said that although Malta is doing well whatever success was obtained in the past is not guaranteed for the future and tha Malta needs to raise its game. “We should recognise what we have and build on that. We need more sectors of the Maltese economy, to compliment tourism, igaming, digital gaming, financial services, manufacturing, life sciences and so on,” held Minister Cardona. Dr. Cardona said that Malta can continue offering the complete package since it offers political stability, a sound legal system, business incentives, help and support, no punitive taxation, good communications, the English language, advanced technology, a

skilled workforce, a safe environment and an open market of 500 million Europeans. However, Minister Cardona held that there is more that Malta can and must do by keeping costs in check. This is already being done through an energy policy which has reduced electricity bills for families and will reduce costs for businesses in the next year. Minister Cardona also emphasised the importance of greater female participation in the work force which the government has been promoting through incentives such as free childcare. Minister Cardona mentioned Malta’s ability to act quickly and nimbly to developments and threats which was also identified in the EY report as well as Malta’s competitive advantage created through Maltese legislation. “We are showing ingenuity by producing a Family Business Act – the first of its kind in the European Union. This legislation is about sustaining enterprise across generations. It may not be directly relevant to attracting foreign investment but it illustrates our ability to think beyond the usual boundaries,” held Minister Cardona. Dr. Cardona also expressed his satisfaction that Smart City is finding its feet and that the back office operations it offers represent an area which is achieving increasing importance as highlighted by the EY survey. Minister Cardona also emphasised the importance of Malta’s position as a strategic hub in the Mediterranean where Malta has long been the link between Europe and North Africa and the Middle East. “Government performs best when it is a listening government. We want to hear your thoughts on how to pave the way for business in the future. They can be big or small ideas. But let’s work together,” concluded Minister Cardona. MBR

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InformatIon SecurIty

Malta Business Review

INFORMATION SECURITY EXPO

Informative workshops, a four-hour hackathon and awareness raising about information security topics

ITA organised the first Information Security Expo with the aim of raising awareness about information security topics that affect us all in our professional and private lives. This was launched by Dr. José Herrera, Parliamentary Secretary for Competitiveness and Economic Growth. The MITA Information Security Expo, held on Saturday 11th October at SmartCity Malta and was spread over three areas. AreA 1: Security Talks - brief talks and workshops by information security experts on various related topics. An exclusive workshop by David Kennedy – founder of the internationally acclaimed information security company TrustedSec, LLC – will kick-off proceedings. AreA 2: Hackathon - the Security Hackathon (Capture the Flag) targets ICT professionals, enthusiasts and students.

Participants can take on the challenge individually or in groups of maximum 3 people. AreA 3: Awareness- multiple companies and entities will be raising awareness about various information security topics. As part of the EU-wide Code Week, eSkills Malta Foundation will be holding various handson coding workshops for everyone. MITA’s executive chairman, Mr. Tony Sultana, explained how the increase in the profile of ICT makes it more of a prized target for the underworld. “Over the last years MITA has been actively working with industry not only to better protect the Maltese Government ICT systems but also to promote ICT security on our island.” He mentioned that since MITA was accredited with the ISO27001 security standard, the Agency has been providing local institutions and companies with related information and guidance. For the Security Hackathon, MITA partnered with TrustedSec, LLC and its founder, Mr. David Kennedy, said that the hackathon should attract ICT professionals and students from different sectors as the

ultimate goal is learning and exchanging knowledge and experiences. Participants attending the security hackathon will have four hours to find a number of ‘flags/vulnerabilities/strategic points’ in a specially setup environment by TrustedSec. Mr. David Kennedy will be also delivering a one hour practical session on Social Engineering. Proceeds from the Security Hackathon will go towards the MITA CSR Committee. Dr. Herrera said that it is necessary that as a nation we continue enhancing our digital asset portfolio - that we continue rolling out new eGovernment services, that we continue making the interaction between citizens, businesses and Government easier through electronic forms (eForms). “In such a context, MITA’s role becomes vital in ensuring that all the interaction with Government is taking place on a secure environment. Rolling out new services is good but getting people to trust in using such services is even more important. We must therefore continuously invest in the information security systems in place and also in the skills of Malta’s human capital,” explained Dr. Herrera. MBR www.maltabusinessreview.net

Malta Business Review

Banking

HSBC introduCeS talking atMS for tHe viSually iMpaired HSBC Malta has introduced voice technology in its ATMs outside its Operations Centre at Qormi, and in its branches at Sliema, Valletta, Paola, Mosta and Victoria Gozo, to enable visually impaired people to use its banking facilities. This is part of an ongoing installation programme to roll out this functionality in all HSBC ATMs during 2015.

which will enable customers with low vision to operate the machine more easily, while ensuring their details remain secure.

Once a customer connects any standard 3.5mm earphone to the ATM, prerecorded voice instructions, available in either Maltese or English, guide customer through a number of transactions. During these operations, the ATM screen is blanked out to ensure customer security and privacy. HSBC’s Talking ATM features include cash withdrawals, cash deposits, and balance enquiries.

HSBC worked with the National Commission for Persons with Disability (KNPD) as well as the Foundation for Information Technology Accessibility (FITA) throughout the development of this project. FITA’s ICT Accessibility Certification Officer, Mr. Michael Micallef, agreed, “FITA assists persons with disability in overcoming or removing ICT access barriers. Our collaboration with HSBC Malta in providing this progressive change to its ATMs will enhance the quality of life for many individuals.’’

HSBC is also offering customers the additional functionality of operating the machine with enlarged fonts, a service

“Over the past months our teams have worked hard to ensure HSBC’s Talking ATMs have the appropriate levels of security, privacy and ease of use to enable our visually impaired customers undertake simple transactions,” said Paul Steel, Head of Retail Banking & Wealth Management at HSBC Malta.

EXPERIENCE THE DIFFERENCE LIST OF SERVICES: After Hours Office Cleaning Aircraft Interior and Exterior Cleaning Car Park Cleaning and Maintenance Car, Coaches and Boat Valet | Carpet & Upholstery Cleaning Chewing Gum Removal | Cleaning of Escalators Cleaning of Venues | Deep Cleaning of Kitchens Disinfect Sensitive Areas with Ozone (Private Hospitals) Fire Retardant Treatment for Upholstery Hospital Cleaning | Janitor Services in Shopping Malls Maid Service | Marble and Tiles Polishing and Restoration Parquet Waxing | Post Construction Cleaning Public Areas | Removal of Graffiti Residential and Commercial Cleaning Road Sweeping (Local Councils) Room Attendants Service | Scotch guard Soffit Cleaning By CPI | Window Cleaning Contact Details: 2147 2552 / sales@ozomalta.com

HSBC also offers a specially designed Personal Internet Banking Secure key free of charge to customers with sight problems, enabling them to make full use of its online banking facilities. MBR Additional information about this service is available via www.hsbc.com.mt/atm or by calling HSBC Contact Centre on 23802380.

EuropEan rEsEarch council (Erc)

Malta Business Review

Nobel Prize iN Physiology/MediciNe

to two euroPeaN research couNcil

graNtees It was announced today by the Nobel Assembly at Karolinska Institutet, Stockholm, that the 2014 Nobel Prize in Physiology/ Medicine has been awarded to Professor Edvard I. Moser and Professor May-Britt Moser, both ERC Advanced Grant holders, together with Professor John O´Keefe, “for their discoveries of cells that constitute a positioning system in the brain”

n this occasion, European Commission President José Manuel Barroso said: “I warmly congratulate John O´Keefe, May-Britt Moser and Edvard Moser on their achievement. I am particularly proud that both May-Britt and Edvard Moser are holders of European Research Council Advanced Grants. The ERC supports the very best pioneering researchers across Europe, and has made a real impact since its launch in 2007. This is why we decided on a significant boost for the ERC budget in our new research and innovation programme, Horizon 2020.” The President of the European Research Council (ERC), Prof. Jean-PierreBourguignon, commented: “On behalf of the ERC, I would like to extend

warm congratulations to this year’s three Nobel laureates in Physiology or Medicine. We are very proud that the European Research Council has funded two of the winners - Professors Edvard I. Moser and May-Britt Moser. Their ERC Advanced Grants contributed in a significant way to their ground-breaking research on the navigation system of the brain. Today’s news confirms that the ERC invests in the best minds – whether young or senior - to support their most innovative ideas at the cutting edge.” This is the third time that a Nobel Prize goes to top researchers funded by the ERC since its launch. Through a highly competitive selection based on excellence, the ERC has supported some top researchers across Europe. MBR

To find out more about ERC projects’ results and activities, check the ERC Facebook page and follow us on Twitter.

EDITOR’S NOTE Set up in 2007 by the EU, the European Research Council (ERC) is the first pan-European funding organisation for frontier research. It aims to stimulate scientific excellence in Europe by encouraging competition for funding between the very best, creative researchers of any nationality and age. The ERC also strives to attract top researchers from anywhere in the world to come to Europe. From 2007 to 2013 under the seventh EU Research Framework Programme (FP7), the ERC’s budget was €7.5 billion. Under the new EU research programme (2014-2020), Horizon 2020, the ERC has a substantially increased

budget of over €13 billion. Since its launch, the ERC has funded over 4,500 researchers. The ERC consists of an independent Scientific Council and an Executive Agency. The Scientific Council, the ERC’s governing body, is composed of 22 distinguished scientists and scholars, including the ERC President. They define the scientific funding strategy and methodologies, and act on behalf of the scientific community in Europe to promote creativity and innovative research. Prof. JeanPierre Bourguignon has been the ERC President since 1 January 2014. The ERC Executive Agency implements the ERC component of Horizon 2020 and is led by Director Pablo Amor.

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Ta’ Kris Restaurant A Mediterranean Gastronomical Treat Hidden in a narrow serene alleyway from the hustle and bustle of the Bisazza Street shops, Ta’ Kris restaurant offers an intimate eatery with a friendly culinary service. Set in a former bakery, with the old oven still in place, the atmosphere is warm and homely, and the food is fresh and traditional with superb value for money.

meat lovers may indulge themselves to the house speciality of prime USDA Rib-Eye or an exquisitely prepared Rump steak Dessert options include cassatella, banoffee pie and even rich Maltese trifle made by Kris’ own mother (although this must be ordered in advance).

Specialising in Maltese and Mediterranean cuisine, with fresh fish available daily, Chef Patron Kris Cassar cooks popular traditional dishes like rabbit, bragioli, beef stew, and specials that change every day. Diners may find medallions of pork loin with ġbejna, Maltese sausage and

With a tantalising mix of Mediterranean and Maltese cuisine, one can only expect to be pleasantly intrigued. Ta’ Kris Restaurant Open: Every day for lunch and dinner 12.30pm till 3.30 pm and 7pm till 11pm.

80, Fawwara Lane, Sliema Tel: 2133 7367 / 9984 7713 Web: www.planetsoftpages.com/takris

Online–

INSURANCE

Malta Business Review

THE FUTURE OF INSURANCE MANAGEMENT by Keith Laferla Over the past few years, Maltese consumers have seen an increase in both the quality and quantity of local eCommerce enabled websites. This has been particularly evident in the insurance industry, with most of the larger players investing in their online sales platforms. Yet, out of the 63% (Eurostat statistic, October 2013) of Maltese consumers who buy online, few are those who purchase and renew their insurance policies online.

Though the process of purchasing an insurance policy is traditionally known to be timeconsuming and occasionally also somewhat cumbersome, newer online insurance purchasing and management platforms are being designed with a more user-friendly, easyto-use interface. Depending on the website chosen, renewing your policy through such platforms may now even be quicker and easier than logging into your online banking account and processing an online bank transfer; let alone visiting your insurer’s office. The same can be said about purchasing a new insurance policy, with newer websites being designed to simplify the process as much as possible. Today, consumers have a choice of websites which offer the facility to get a live quote for any insurance product in less than a minute; and go on to purchase the policy in less than ten minutes. If you normally visit your insurer’s office to purchase or renew your insurance policies, then you may be able to begin saving up to one hour of precious time, per policy purchased or renewed – by eliminating various factors. Of course, there is also the added benefit of being able to manage your insurance policies at

Today, consumers have a choice of websites which offer the facility to get a live quote for any insurance product in less than a minute your own convenience and not be restricted by office opening hours.

websites at your own convenience, sometime before your renewal date. These processes will help you to make a well informed decision upon purchasing your insurance policies. To ensure that your data is safe, look for the website’s Security Certificate to confirm that the eCommerce platform is secure. If you are not familiar with website Security Certificates, it may be wise to learn how to identify such Security Certificates. If in doubt, always contact the company who will guide you to identifying these security features on their websites. MBR

When purchasing a new insurance policy online, be sure to save even more time by having certain essential details handy; such as your property’s rebuilding value and the value of your contents if you are purchasing Home Insurance; your log book containing your vehicle details if you are purchasing Motor Insurance; and your travel dates and personal details of all travellers if you are purchasing Travel Insurance. Another tip is to read through the insurer’s website and learn about each available cover option before you enter the purchase process. It is also a good idea to obtain quotes on various

By Keith Laferla – Assistant General Manager, Laferla Insurance Agency Ltd.

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Malta Business Review

motoring

CitroËn C1 UrBAn riDE VotED on BY ViSitorS At tHE PAriS motor SHoW Making its debut appearance at the Paris Motor Show, the new CITROËN C1 Urban Ride concept car is a “go-anywhere” take on the new C1 with SUVinformed styling. The concept car will be voted on by visitors to the essential automotive event.

TCITROËN is giving a voice to visitors at the Paris Motor Show, encouraging them to express their opinion on the Brand’s all-new concept car, the C1 Urban Ride. The idea is simple. Using a terminal located next to the vehicle, visitors vote Yes or No as to whether they would like the concept car to become a production model. Following the launch of the New CITROËN C1 in June, the Brand is illustrating all the personalisation potential of the city car with a strong, refreshing and uninhibited concept car drawing on SUV styling components. In the words of Thomas d’Haussy, CITROËN Product Director, “The C1 Urban Ride concept car is a stylish and characterful proposal completely in tune with the times. We are impatient to see whether the public appreciates the car through this allnew voting system.” Those not attending the Paris Motor Show will be able to express their opinion starting on Thursday 9 October on CITROËN’s social media sites.

MBR

Links to CITROËN social media: Facebook: www.facebook.com/Citroen Twitter: twitter.com/Citroen YouTube: www.youtube.com/theofficialcitroen LinkedIn: https://www.linkedin.com/company/citroen MBR

InternatIonal trade

Malta Business Review

InternatIonal trade: august 2014 Preliminary fi gures show that Malta registered a trade defi cit of €245.3 million in August, compared to €152.9 million in the corresponding month last year.

Provisional data show that the trade defi cit in August stood at €245.3 million, up by €92.4 million when compared to the corresponding month in 2013. Imports increased by €50.2 million, while exports decreased by €42.1 million. The increase in the value of imports was primarily due to machinery and transport equipment (+€59.4 million), while other increases were recorded for mineral fuels, lubricants and related materials, chemicals, semimanufactured goods, and beverages and tobacco. Mineral fuels, lubricants and related materials accounted for the main decline in the value of exports (-€15.6 million), with other decreases registered for machinery and transport equipment, miscellaneous manufactured articles, chemicals, semi-manufactured goods, and miscellaneous transactions and commodities. JAnuAry-AugusT 2014 In the fi rst eight months this year, the trade defi cit widened by €128.9 million, to €1,518.8 million. When compared to the corresponding last year, imports registered an increase of €42.2 million, while exports decreased by €86.7 million. The increase in imports was mainly due to mineral fuels, lubricants and

related materials, with other increases registered for chemicals, beverages and tobacco, semi-manufactured goods, and animal and vegetable oils and fats. The decrease in the value of exports was primarily due to machinery and transport equipment, with other decreases noted for miscellaneous manufactured articles, food, semi-manufactured goods, and miscellaneous transactions and commodities. Malta’s trade imports from the European union reached €2,019.0 million, or 50.4 per cent of the total for the period under review. There was a drop of €326.5 million in imports from euro area countries when compared to the same period last year. Increases in imports were registered from the united states of America, saudi Arabia, spain, the netherlands, gabon and India. On the other hand, imports from Italy, France, Cameroon, singapore, greece, republic of Korea, the united Kingdom, switzerland, germany, south Africa and China showed a decrease. Exports to the euro area decreased by €92.9 million, mainly to France, greece, germany, the netherlands and spain, while increases in exports were recorded for republic of Korea, Italy and India. MBR Source: NSO

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Malta Business Review

Banking

FIMBank targets spanIsh FactorIng Market FIMBank, the Malta-based trade finance specialist, has entered into a Cooperation Agreement with MAS Factoring For Growth S.L. in Spain in order to support the offering of services to exporters from Spain Commenting on this development, FIMBank President Margrith Lütschg Emmenegger explained that the Spanish export market, especially that of Catalonia, is one of the most dynamic economic areas, “affording important opportunities for growth, and constantly in search of innovative financing opportunities and innovative means of mitigating business risks”. She highlighted the fact that in 2013, the volume of international factoring in Spain rose by 20% to €13,687 million. Lütschg Emmenegger added that “the value offering is therefore an attractive one which is being explored through this cooperation agreement.” For his part, Adrian Hewitt at MAS Factoring stated that “this is an excellent opportunity for both MAS Factoring and FIMBank to take advantage of the significant potential in a market niche that has not been fully explored by most Spanish financial institutions, and where there is clear demand for the combined offering and a disposition to accept appropriate pricing structures”. Elaborating on the Catalonian market, Adrian Hewitt said that in 2013, this region reached an all-time record for the number of exporting businesses, approximately 49,000, which generated €58,000 million in revenues. He added that just in the last decade, the number of exporters has increased by more than 75%. “Catalonia is one of the autonomous regions with the highest export figures in Spain and the trends of recent years clearly demonstrate a greater appetite for export when compared to the rest of the country”. MBR For information about the FIMBank Group please visit www. fimbank.com.

SPECIALISED CARGO SERVICE Cassar & Cooper’s specialised Cargo Service division is well equipped and experienced to offer several specialised cargo services and logistics solutions including: – LOGISTICS & WORLDWIDE PROJECT FORWARDING – OUTSIZE CARGO – LIVE ANIMALS – REMOVALS AND RELOCATIONS – FAIRS AND EXHIBITIONS – TEMPERATURE CONTROLLED MOVEMENTS – VALUABLES AND FINE ART

25, Air Cargo House, Triq Ġanni Vassallo, Luqa. T: +356 2558 4884 • E: specialcargo@cassarcooper.com www.cassar-cooper.com 64

Short-term ServiceS indicatorS

Malta Business Review

Short-term ServiceS indicatorS: Q2/2014 In the second quarter, working-day adjusted turnover in selected services increased by 0.8 per cent over the corresponding period of 2013. Provisional seasonally adjusted services turnover increased by 2.2 per cent

AnnuAl compArison

QuArTerly compArison

When compared to the second quarter of 2013, working-day adjusted turnover went up by 0.8 per cent. Turnover increased in professional, scientifi c and technical activities (+7.5 per cent), transportation and storage (+6.4 per cent), accommodation and food service activities (+3.7 per cent), retail trade (+3.6 per cent), motor trade (+2.8 per cent), wholesale trade (+1.3 per cent) and real estate activities (+1.3 per cent). However, decreases were registered in administrative and support service activities (-11.6 per cent) and information and communication (-7.7 per cent).

Seasonally adjusted turnover in the second quarter of 2014 increased by 2.2 per cent on the previous quarter. increases were registered in professional, scientifi c and technical activities (+9.6 per cent), motor trade (+4.8 per cent), transportation and storage (+4.0 per cent), wholesale trade (+3.5 per cent), accommodation and food service activities (+1.7 per cent), information and communication (+1.5 per cent) and retail trade (+1.4 per cent). On the other hand, declines were registered in real estate activities (-14.4 per cent) and administrative and support service activities (-4.8 per cent).

During the quarter under review, employment, gross wages and salaries and hours worked increased by 3.2, 5.1 and 2.1 per cent respectively over the comparative quarter of 2013.

seasonally adjusted employment, gross wages and salaries and hours worked increased by 0.4, 1.3 and 0.3 per cent respectively over the previous quarter. MBR Courtesy: External Cooperation and Communication Unit, National Statistics Office

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Malta Business Review

NEWSMAKERS

REPOSITIONING THE COMMONWEALTH FOR THE POST 2015 DEVELOPMENT AGENDA Speaker Anġlu Farrugia expressed his gratitude that Malta featured in the speech of the Chairperson of the CPA Executive Committee. Speaker Farrugia stated that “the Small Branches of the CPA, amounting to 34 out of 53, are in strong solidarity with the Commonwealth. This collecive nature should be expressed also in the way of doing Commonwealth politics. Our aim is to identify problems in particular areas where CPA countries are effected.”

Speaker Anġlu Farrugia at the 34th small branches conference of the commonwealth parliamentary assembly

When interviewed by the CPA daily Journal, Mr Speaker concluded that “part of the issues to be discussed vis-a-vis the post 2015 development agenda include the way to better share values of the economy and to make sure that we are all working for a peaceful world.” MBR

During the celebrations in Washington DC marking the fiftieth anniversary of Malta’s Independence, the Maltese Ambassador to the US Ms. Marisa Micallef took the opportunity to organise a cultural event to promote Maestro Joseph Vella’s Mass. The event was held at the Headquarters of the EU Delegation, where earlier this year Malta also successfully promoted the Valletta International Baroque Festival. The Ambassador and Christopher Hyland, who originally commissioned the Mass, had previously also had talks with the New York Choral Society in connection with performing this in New York City. During the Malta celebrations in DC the Director of the New York Choral Society David Hayes, made the very positive announcement that the New York Choral Society had decided to perform this Mass in the fall of 2015 in NYC.

Maltese Ambassador to the U.S. Ms. Marisa Micallef during the cultural event with Christopher Hyland

MAESTRO JOSEPH VELLA’S MASS TO BE PERFORMED IN NEW YORK IN 2015

This event was very well attended by EU and other ambassadors, a number of US Administration officials including the Chief of Protocol, leaders from the DC Arts world, members of the Maltese community and of the diplomatic community in Washington, including the Apostolic Nuncio to the US. The autographed programme relating to the September 19th Malta 50th anniversary event will be added to the New York Choral Society archive which is part of the collection of the NY Library of the performing arts. Ambassador Micallef explained how when she first heard the Mass she knew it would be her responsibility to ensure it would be performed here in the USA and the Embassy of Malta had put together this special cultural event with this in mind. MBR

EXPLORE - ENVIRONMENT: INFORMATION SESSION ON EU FUNDING IN THE ENVIRONMENT SECTOR MEUSAC organised the last in a series of six thematic information sessions on EU funding opportunities entitled: EXPLORE EU Funds. This last session focused on the various EU funding instruments and programmes related to the environment sector. In his introductory address, MEUSAC Head Dr Vanni Xuereb spoke about the main targets of the ‘Europe 2020’ strategy, while also highlighting the European Commission’s proposal for energy efficiency to increase up to 30% by the year 2030. Dr Xuereb said that energy efficiency will strengthen both the environment and the business sectors, which in turn will result in new job opportunities. Dr Xuereb also spoke about MEUSAC’s role in assisting local councils and NGOs in acquiring EU fundng for their projects and initiatives. Presentations were delivered by officials from the Funds and Programmes Division (FPD), the Planning and Priorities Co-Ordination Division (PPCD), the Xlokk Action Group Foundation, and the Ministry for Sustainable

Development, Environment and Climate Change. The session covered the following EU funding programmes: the European Regional Development Fund (ERDF), the Cohesion Fund, the European Agricultural Fund for Rural Development, the LEADER Programme, the European Maritime and Fisheries Fund, and the LIFE Programme. Following the presentations, participants engaged in a brokerage session wherein they had the opportunity to discuss the various funding opportunities in the environment sector with representatives of managing authorities and national contact points of the various funding instruments and programmes. The EXPLORE EU Funds initiative was financed by the European Union under the Management Partnership agreement between the European Commission and MEUSAC. MBR More information and assistance on EU funding opportunities may be obtained from MEUSAC on 22003300 or funding.meusac@gov.mt.