MONEY DEC/JAN 2015 ISSUE 28

BUSINESS | LIFESTYLE | DESIGN

THE NEW RESOLUTIONS ISSUE ISSUE 28 DECEMBER 2014/JANUARY 2015

INTERVIEW:

GERARD BUTLER BUSINESS LEADERS SIMON AZZOPARDI ON START-UPS

THE GLOBAL ECONOMY IN 2015 DR SIMON BUSUTTIL ON REGAINING TRUST

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WELCOME

CONTENTS It’s time to cook up your resolutions for 2015. The thing is, we know they don’t work. Well, they do, but only for the first couple of weeks and then it’s back to the ghosts of vices past. The gym membership and diet plan are relegated to the bottom of the drawer.

The reasons why resolutions don’t work are various: they are backward looking, they don’t have an incentive element, and they rely on one person: you.

DECEMBER 2014 / JANUARY 2015 8 REGAINING TRUST, EARNING RESPECT

Leader of the Opposition Dr Simon Busuttil tells Veronica Stivala how even though the Nationalist Party is regaining the electorate’s trust, respect must be earned.

Businesses do something similar. But in their case, resolutions usually work because they are backed up by business plans, innovation, market research, budgets and marketing.

11 FINANCIAL ATTRACTION

For this issue of Money, we wanted to hear what Malta’s Prime Minister Joseph Muscat and Leader of the Opposition Simon Busuttil have to say about Malta’s prospects for the new year. Unfortunately, and despite various attempts to confirm an interview, only Dr Busuttil came through to discuss how he proposes to keep Malta in the process of Europeanising its values, governance and quality of life while regaining the people’s trust in the Nationalist Party.

15 AN APPETITE FOR CREATION

In this issue of Money, we meet with business leaders from various sectors, including banking, retail, hospitality and the services sector in general. They tell us about the highlights and investments of 2014 and how they plan to consolidate and achieve further growth in 2015.

Start-ups create innovation and ideas while generating employment and investment, says Simon Azzopardi, local representative of StartUp Weekend. In his interview with Money, Mr Azzopardi says how successful start-up entrepreneurs do not complain about politics and the economy but rather take control of the situation by using what is happening around them to their advantage. We also meet four start-up entrepreneurs who outline their plans for their start-ups and for 2015.

In this issue of Money, we also look at how the global economy will shape up in the new year, try out the hottest marketing trends for 2015, interview actor and face of Boss Bottled Gerard Butler and, since it’s time to give and get, lay out a spread of stylish gifts.

Read on and enjoy.

36 SOUTH OF THE BORDER

North and South Korea are universes apart. But would unification benefit South Korea?

Malta’s attractiveness sustains the growth of our financial services sector, says Kenneth Farrugia, FinanceMalta Chairman.

Local start-ups need the hunger to conquer the local market and beyond, says Simon Azzopardi, local representative of Start-Up Weekend and managing director of Tain & Able.

17 A GOOD START

Money meets four entrepreneurs to discuss what drives a successful start-up.

23 REACHING OUT

Which marketing trends will grab our attention in 2015, asks George Larry Zammit.

27 BUILDING THE FUTURE

As we start a new year, Money meets business leaders to discuss the prospects for 2015.

32 THE YEAR THAT WILL BE

Will 2015 bring an economic boost for Malta, asks Reuben Buttigieg.

38 GOING DUTCH

Dutch Design Week 2014 presented a clear field for young talent to showcase the future of design.

43 A LIVE WIRE

Matthew Marshall turns on the light on Electro Lobster Project.

52 THE GIFT OF GIVING

Money unwraps the new year in style.

54 OUT WITH THE COLD, IN WITH THE FOOD

Mona Farrugia celebrates with a festive menu.

58 THE BLUESMAN’S BLOG Editor Anthony P. Bernard anthony@moneymag.me Consulting Editor Stanley Borg stanley@moneymag.me Design Roderick Peresso Design Studio www.peresso.com / m. 99258825 Printing Print It Distribution Mailbox Direct Marketing Group

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The Bluesman ends the year the way he started it: with a good look at USA today.

35 THE ELEGANCE OF THE BUTLER

Gerard Butler, the face of Boss Bottled, describes the feeling of wearing a suit, a kilt, and an emotional fragrance.

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4 - Money / Issue 28

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INTERVIEW

REGAINING TRUST, EARNING RESPECT Practical alternatives, reaching consensus and proposing sensible policies. Leader of the Opposition Dr Simon Busuttil tells Veronica Stivala how even though the Nationalist Party is regaining the electorate’s trust, respect must be earned.

D

r Simon Busuttil’s main focus is to give the country an effective Opposition. “If we want to live in a system of open politics and government, then we need viable and practical alternatives our people can choose from,” he says, adding how our parliamentary democracy gives the Opposition the responsibility of holding Government to account.

Since it lost the 2013 general election, the Nationalist Party has made it a point to raise awareness where the Government was found wanting on basic principles such as transparency and equal application of the law.

It has also brought to light a number of cases of serious misconduct by Ministers or Government appointees.

In Parliament, the PN has also been an active Opposition, proposing important constitutional amendments, laws and motions to widen rights, reaching basic consensus on sectors like healthcare and keeping Malta in the process of Europeanising its values, governance and quality of life.

While this sounds encouraging, one cannot ignore the fact that the Nationalist Party needs to do more to regain the trust of the electorate. After all, it lost the 2013 general election to the sound of almost 37,000 votes.

Dr Busuttil stresses how his other focus has been the internal rebuilding of the party where they have been setting up new ways of opening up to wider society.

“We have now registered visible progress, ranging from fresh party candidates to a rebranding of our media. People are beginning the see that the PN is getting back on its feet.”

In addition to this, the PN has also set up 10 policy fora to start updating its policies. These are led by experts in their respective fields and are largely made up of individuals from outside the party.

“I want these fora to be representative of wider society and to initiate well thought out policies rather than populist mantras,” underlines Dr Busuttil.

want that to happen and I want my party to offer an alternative based on European values and high standards of good governance.”

He notes how the party has been reconnecting with civil society in order to listen to the aspirations of diverse sectors.

Dr Busuttil has frequently used the phrase “moral authority”. What does this mean when referred to the prime minister of a country?

“Slowly but surely, many sectors are appreciating our efforts and we are getting good feedback,” he says.

“Malta’s Prime Minister should speak the truth and not lie to the people, as happened over his pledge to resign if his key electoral pledge is not delivered in two years. Nor should he allow a culture to be inculcated where anything goes as long as you are part of the ruling elite.

The recent first General Convention of the party was particularly well received. However, Dr Busuttil is under no illusion that the road ahead is easy.

“I know it is difficult and I also know that respect cannot be bought. It must be earned. But we are on the right track and people are feeling that.”

Turning to Dr Busuttil’s views of the government’s work this year, what does he see the government’s major downfalls in 2014?

This Government has inherited a very well functioning economy that weathered the international crisis of recent years, he notes. It also enjoys a wide enough majority to introduce a radical change in the very way we do politics and to keep building an economy based on a vibrant private sector.

But, he warns, it is veering off its course, creating new dependencies on public sector tax-paid jobs and not even delivering on its main electoral pledges, let alone bringing about a new style of politics. As a result, main electoral pledges such as meritocracy, transparency and accountability have all become a joke and people know that this is a Government that relishes in clientelism, nepotism and increasingly, sleaze.

“My concern is that the loss of good governance will put people off politics and will erode trust generally in the political class,” Dr Busuttil says. “I don’t

“The Prime Minister ought to ensure that ministers set an example and observe the law and not allow illegal works on their property. Nor should they brush off responsibility if their persons of trust end up in a shooting spree.

“Ministers should not interfere in public procurement contracts and Government MPs should not be caught in blatant conflict of interest over public tenders. Even in the business community, it is now an open secret that public tenders are pre-determined depending on who you are and who you know. This is not the way to do things and it is certainly not pro-business.

“We either live in a country where the law is the same for everyone or we are lost.

Dr Busuttil stresses how he wants to stand for European standards of governance, where people in positions of responsibility shoulder their responsibility when something goes wrong.

“I want a culture of openness, not one of secrecy and question-dodging, even in Parliament. Public appointments should be based on merit, not on billboard appearances. And guarantees must be put in place once and for all to ensure that

“WE EITHER LIVE IN A COUNTRY WHERE THE LAW IS THE SAME FOR EVERYONE OR WE ARE LOST.”

the Government has all but reversed the post-1987 trend of a sustained reduction in public sector jobs.

The increase we are witnessing in public sector employment drains away resources from the vibrant private sector our economy should be based on.

Likewise, exports and imports as well as industrial production and retail sales have been in steady decline. The PN is telling the Government to heed these warnings and take action before it is too late.

Dr Simon Busuttil

meritocracy prevails over nepotism.”

If things go wrong, resignations are definitely in order, he says. And if ministers do not resign, then it is the Prime Minister who has the responsibility to fire them.

Recent amendments to the PN’s statute have included making its structure more open, returning as the people’s party, as well as going back to the party’s grassroots.

Where does the PN stand on these plans?

“This is not just because of his electoral pledges but also because it is the decent thing to do in open European political systems. The Prime Minister has not done so and this is why I said in Parliament that the Prime Minister Muscat has lost his moral authority.”

Back to the PN. What are its prospects for 2015?

In 2015, the PN will hit the mid-term of this Government and by then everyone will be in a better position to judge whether Joseph Muscat has lived up to his pledges, comments Dr Busuttil.

“Likewise,” he knows, “people will turn to the Opposition to see if I am delivering a new party which has learnt from the past and wants to offer something different in the future.”

On the PN’s part, it will have started fashioning its own alternatives for the future development of this country and this is what Dr Busuttil expects from the party’s recently established policy fora.

“We want to enhance our European way of life, learn from past mistakes and offer a new and exciting vision for the country. By the end of next year I want the results of our hard work in rebuilding and reshaping the party to be visible to all.”

It is very much a works-in-progress, says Dr Busuttil.

The blueprint for the statute amendments approved early this year was based on openness.

“We are widening the appeal of the party to sectors and circles from which we had previously withdrawn.

One of the results of these changes was the first party General Convention which was an outstanding success that we need to build on. But we have also established party structures to focus on professionals, vulnerable members of society and SMEs, among others. We are one nation that can only develop if we move forward together. We are reflecting this in our new structures as a party.”

On society, Dr Busuttil stresses we should not just be concerned about creating wealth but also about how this wealth can be fairly distributed.

“Being a fair society means that we have the necessary infrastructure and services to cater for those in need, be it the health services, care for the elderly, pensions as well as social services. Vulnerable groups should not be stigmatised. Our belief in an inclusive and open society needs to be more than just words.”

In the cultural field, Malta punches way beyond its 400,000 population. EU membership and cultural projects in past years have given a new impetus to culture in Malta and our self-confidence.

“We can truly show pride in our heritage, reinterpreting it for a bright cultural future. But I fear that the Government has a very limited vision on culture and this is a concern for the Opposition in the light of our major commitments in this area in the years to come,” he says.

And what does Dr Busuttil’s workload look like for 2015?

What does he think are Malta’s prospects for 2015 for the economy, society and culture?

On the economy, Dr Busuttil expects Government to create the right climate for wealth creation. The economy continues to show positive prospects for growth, which is good. But the PN would like the Government to stop ignoring warning lights in the economy that may stall our progress. For instance, public debt is on a steady rise and public sector employment has been alarming over the first 18 months of this legislation. Unfortunately,

Ever fuller. But he does not complain because it shows a resurgent Opposition which is of service to the country.

“I am privileged to be leading the Nationalist Party at this exciting time where it has to regroup, rebuild and reorganise in order to strive to win back the people trust. Winning trust of the people – especially those whose trust the party had lost – is a formidable challenge but it is also an exhilarating one. People now know that I am out to win back their trust and all I ask is to be given the chance the do so.”

Money / Issue 28 - 9

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INTERVIEW

FINANCIAL ATTRACTION Malta’s attractiveness sustains the growth of our financial services sector, says Kenneth Farrugia, FinanceMalta Chairman.

Kenneth Farrugia

S

ince 2009, the eurozone crisis has been grabbing column inches. Reaching a climax in 2012, the economic downturn caused millions in losses, power shifts in various eurozone countries such as Greece, Ireland, Italy and Portugal, and fuelled unemployment rates. In Spain, for instance, the unemployment rate shot to a maximum high of 26.94 per cent in the second quarter of 2013.

Although the worst of the crisis is now over, its effects are still being felt. For Malta, the crisis was a true test which it passed: the smallest EU member state remained stable as larger economies tumbled. Moreover, in recent months, we’ve been seeing sustained economic growth and increasing customer trust. This, in turn, has strengthened Malta’s position as an appealing business destination, especially in the financial services sector.

The sustained growth of Malta’s financial services sector is fuelled by various factors.

“Some two decades ago, Malta changed its financial regulatory framework from an offshore to an onshore one,” says Kenneth Farrugia, Chairman of FinanceMalta, which is a public-private initiative set up to promote Malta’s international financial centre. “This was an important milestone which paved the way for the growth of the financial services sector in Malta,” he adds.

“Moreover, in the run up to Malta’s EU accession, a lot of preparatory work was done. In fact, the catalyst that took our financial services sector to the next level was EU membership.”

Malta has also managed to find the right balance between attractiveness, flexibility and regulation.

“This is also due to the fact that Malta has a very clear vision of where it wants to go. In fact, when it comes to financial services, there is a convergent vision on both sides of parliament,” Mr Farrugia says.

In the past 10 years, Malta’s financial services sector has taken shape and a strong direction, also in line with the general direction of the Maltese economy, which has moved towards high value manufacturing and services.

“The direct contribution of the financial services sector to the local economy is calculated to be eight per cent. Moreover, there is a spill-over effect because the financial services sector also positively influences other services such as legal and corporate services, health services, real estate and hospitality. This indirect contribution is calculated to be four per cent.”

To sustain the growth of its financial services sector, Malta needs to persevere in its efforts. Human resources, for instance, need to be trained further.

“Malta has no natural resources: our only resources are human,” Mr Farrugia says. “This means that we have to continue investing in our intellectual capability. Nowadays, we have two very strong educational institutions:

university and MCAST. However, the continued growth of our financial services sector also depends on how well we prepare our students at primary, secondary and tertiary level.

“We also need to send out a stronger message to students that there are a lot of opportunities in the financial services sector. This will attract more students to the relative study areas.

“Other initiatives, such as flexi-time and childcare facilities are also attracting more women to the workforce. Moreover, being EU members means that our people can gain valuable work experience abroad, and we in turn can attract financial services expertise to Malta.”

Attraction is the key word here. Because apart from having a strong regulatory framework, education system and human resources, what sustains the growth of our financial services sector is Malta’s attractiveness.

“Malta is very safe, has a stable government and is well connected to the rest of Europe,” Mr Farrugia says. “We have a good quality of life. Moreover, foreigners are attracted

Money / Issue 28 - 11

INTERVIEW

“WE NEED TO CONTINUE PROMOTING MALTA AS A SAFE, SECURE, FLEXIBLE AND ATTRACTIVE INTERNATIONAL FINANCIAL CENTRE.” to the fact that you can do a lot of things in one day in Malta. Of course, there are areas where we need to improve: we must have better traffic management and take greater care of our environment. And we must ensure that the country is spotless.

“We must also invest in the continuous improvement of our health and education systems. Most people who come to Malta to invest or work do so with their family – therefore, they need strong support systems.”

From a strategic point of view, Mr Farrugia says that Malta has a very clear idea of where its financial services sector will be in the next 10 to 15 years.

“Promotion plays a very important role in our strategy. We need to continue promoting Malta as a safe, secure, flexible and attractive international financial centre. We must have increased and sustained visibility in all media. Moreover, our message needs to be a coordinated one – a convergent and coordinated message by all entities involved will result in a much better output. We need one master brand which encapsulates all that Malta has to offer.

“Europe will remain a core market for our financial services sector,” says Mr Farrugia.

“However, we also plan to go beyond Europe to other markets in Asia, the Gulf, Hong Kong and Singapore. To do this, we need financial resources, logistics and cultural understanding.

However, one thing is for sure – Malta’s financial services sector is nowhere near saturation and there is still plenty of room for growth.”

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12 - Money / Issue 28

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START-UPS

AN APPETITE FOR CREATION

Local start-ups need the hunger to conquer the local market and beyond, says Simon Azzopardi, local representative of Start-Up Weekend and managing director of Tain & Able.

How would you compare the local start-up scene with that in the rest of Europe and the US? Over the past 24 months, we have organised several events and involved various international investors and entrepreneurs within the local community. I believe that their feedback is a good measure as to where we stand. Maltese start-ups, and by this I mean start-ups founded by both Maltese and expats living in Malta, are certainly promising. In fact, an early investor in LinkedIn, who was judging a recent start-up event, described a Maltese start-up project as visionary.

That said, we need to be realistic. Malta is a tiny community in comparison to any of the EU member states or the US and comparisons would be futile. However, what we need to do is look at Malta and understand what we can offer to the start-up scene. Where can Malta add value?

This is where Malta could certainly stand out. Malta has several highly skilled technology and marketing individuals and English is the business language of choice. Malta also offers a superior quality of life and a tax and expense efficient package. For instance, a start-up that is tight on cash would be able to do a lot more with a lot less in Malta, reaching their milestones on an island offering good weather, good food and engaging social elements.

So when discussing such areas, we need to look at where Malta’s potential markets or attractiveness lie. To whom does Malta add value? In which countries can we promote Malta as a start-up jurisdiction? This is the conversation that government and local stakeholders need to engage in.

Currently, what are the trending start-ups?

There are a few start-ups making a positive sound in the market, as well as start-ups that have moved on and cannot be considered start-ups anymore. Due to the size of the startup scene, it is hard to see trends.

That said, there are two emerging trends: we are seeing several foreigners looking at Malta as a potential start-up platform, and there are some companies in Malta where employees have move on to develop their own start-up.

Both are encouraging trends for the local scene and culture.

Are the majority of start-ups ICT-related?

ICT start-ups are certainly the most accessible.

With a laptop and an internet connection, anyone can start a business. Other industries would typically require greater capital investments and therefore greater risks.

Should start-ups think big or first focus on the local market and then expand slowly in other markets?

Think global, act local – this is a bit of a cliché, but nonetheless very important. Start-ups cannot conquer the world in the first battle. Rather, they need to win the local battles before world domination. Therefore, start-ups need to look at who their initial customers are going to be and focus on winning those over, but always thinking scalable. At start-up stage, being too local means that you solve a handful of customers’ problems and cannot scale. On the other hand, being too global means that what you offer will be lost in the noise of everyone offering something similar.

Simon Azzopardi

What kind of resources do start-ups need?

First, the will or hunger to want it. Bill Gates or Steve Jobs have the exact same 24 hours in a day that you have. They did something special. If you want to do something special then you have the time. Secondly, commitment. You will have hurdles such as finding a partner, looking for that first customer, or bringing in an investor. Unless you are committed and conscious of the fact that this is going to be tough, then you will give up after a few hurdles. Lastly, fun is vital. You need to enjoy what you do and how it gets done. You need to get people behind you and if it lacks any joy whatsoever, then why would anyone follow you?

How critical is the funding element in a start-up scenario?

The question here is, what does the investment you need buy? Do you need time, infrastructure, a team? Could you get things done without an investor? Could you part with equity instead of investment? Bootstrapping – the process

Money / Issue 28 - 15

START-UPS

“UNLESS YOU ARE COMMITTED AND CONSCIOUS OF THE FACT THAT THIS IS GOING TO BE TOUGH, THEN YOU WILL GIVE UP AFTER A FEW HURDLES.”

of developing your product and business with no investments – is too often overlooked, yet is very often the better way to go.

Another aspect that is often overlooked is corporate financing or collaboration. Corporates need to innovate and build new products, yet often by design they struggle to do so. Start-ups are designed to be innovative and react quickly to market changes as their livelihood depends on it.

This creates the possibility for an ideal partnership between a start-up requiring a corporate’s credibility, experience, infrastructure, people or channels. As always, a win-win situation needs to be created and more importantly managed.

What should fuel the relationship between start-ups and entrepreneurs willing to invest?

Start-ups and investors, particularly in the early stages, need to get along. Entrepreneurs have vast knowledge, and not just capital, that needs to be exploited. Therefore, besides having a common understanding of commercial expectations, ensuring that the two characters are compatible is crucial.

In Malta, we certainly have a small community or pockets of entrepreneurs willing to invest. In terms of high growth start-ups however, I do believe that investors often need guidance in terms how

16 - Money / Issue 28

to manage their investments and expectations.

Personally, what gets you excited about start-ups?

I live on both sides of the fence in that I coach and mentor start-ups or corporate companies that need to think like a start up, as well as having two start up businesses myself.

This gives me deep insight into the way of thinking, allowing me to really understand the various phases and facets of starting up a business.

Start-ups are excited about their projects and tend to see opportunities everywhere. I find that successful start-up entrepreneurs do not complain about politics and the economy but rather take control of the situation by using what is happening around them to their advantage.

This energy is addictive. I get to meet interesting entrepreneurs with a take-over-the-world mentality.

What value do start-ups give to a national economy?

Start-ups deliver tangible as well as intangible economic value. Its tangible value is that, by definition, they create innovative products with a global potential, delivering employment, investments, tax expenditure, etc. Start-ups also deliver a culture of openness and creativity that

has a longer-term value that is transferable from industry to industry. A government that invests in start-ups by putting the right support behind them is investing in both short and long term. Like with anything however, investing in a start up community is only a minor element, execution is key.

What, in your opinion, are the prospects for local start-ups in 2015?

The local community has built quite a bit of momentum in Malta. We have branded Malta’s local community as Start-up Island and we continue to organise events to bring people together. I am confident that 2015 will see a greater interest from entrepreneurs willing to get involved, an increased number of corporates willing to support and integrate as well as government showing solidarity.

However, Malta needs to look overseas and invest in overseas communities for better integration.

We need to have a roadmap that reaches out to high growth start-ups and integrate them into the local community. We need to develop our entrepreneurial and risk taking appetites. We need to learn that failing at a start-up is not looked down upon, but rather a sign that you have tried, learnt and a step closer to success. Malta needs to act local but think global in its endeavours to build a stronger and truly innovative society.

A GOOD START

LEWIS HOLLAND

Age: 33 Start-up: Innovative Discounts Limited Position: Founder and CEO What is the main aim of Innovative Discounts Limited?

DiscountIF (www.discountif.com) is a vibrant and highly focused start-up that offers a revolutionary way to buy products online. We offer a unique buying promise, whereby for every purchase on our platform, customers will have the unique opportunity to get a full refund if a specified event occurs.

What inspired you to develop and launch your start-up?

After leaving a gaming company, I wanted to work with start-ups and innovative concepts. The gambling industry has an innovation problem, but this is also true for the online retail industry.

With DiscountIF we’ve created a new and engaging way to shop for products that you want, with an innovative discount proposition that people seem to love.

It’s not aimed at the traditional sports punter. Rather, it’s aimed at the retail consumer – a much larger marketplace.

What, for you, are the main ingredients that fuel a start-up’s success?

In the very early stages of a start-up I believe the main ingredients are: a good concept that solves a customer problem, market research, a strong team of experienced people and finally the cash and or the time to develop the concept.

What can one learn from the failure of a start-up?

Theo Paphitis, former Dragons’ Den star was recently quoted as saying that 50 per cent of all small businesses fail in the first couple of

Takeoff, the University of Malta business incubator, gives aspiring technology entrepreneurs the right resources to collaborate, plan, launch and grow their businesses. Money meets four entrepreneurs to discuss what drives a successful start-up.

“A START-UP IS ABOUT A COMBINATION OF FACTORS COMING TOGETHER AND AS A FOUNDER YOU NEED TO BE ON TOP OF ALL.”

ALI ZARZOURI Age: 47 Start-up: Linguadeal Position: Founder and Managing Partner

years. Failures can occur for various reasons, from lack of market research and lack of funding to an inexperienced team and the market not being ready for the innovation.

What is the main aim of Linguadeal?

The main aim of Linguadeal.com is to provide a community site for travel and language exchanges where customer needs are the basis of all actions. Our DNA includes a full directory, comparison, community, booking and deals.

I have led two other start-ups before which I had to pause. I’ve learnt my lessons through experience, the most valuable of which is to reduce risk – be it cash flow risk, market validation or team experience – as you go through the business’ milestones. A start-up is about a combination of factors coming together and as a founder you need to be on top of all.

What inspired you to develop and launch your start-up?

The start-up was fuelled by my own experience when I needed to book for a language course abroad.

It was so difficult to find a good portal to help me make a good choice that I decided to build one.

What is, for you, the role of a startup in a national economy?

Start-ups fuel economic growth and bring innovation into the markets. They help develop a healthier economy as with increased competition, start-ups must develop their products faster, cheaper and more efficiently. This results in better products addressing gaps in the market place.

Malta has several competitive advantages over some other European and Mediterranean countries and it’s good to see things moving forward. I believe online gambling companies have already shown that Malta is a good hub, and there is no reason why we shouldn’t be expanding into other start-up and online industries too.

What, for you, are the main ingredients that fuel a start-up’s success?

For a successful start-up, you need a good idea and a complementary team that is skilled and motivated. Other essential ingredients are funds and a realistic business plan.

What can one learn from the failure of a start-up?

We learn how to increase our chance of success in the next attempt.

What is, for you, the role of a startup in a national economy?

Start-ups help boost innovation as well as research and development. Moreover, start-ups help the national economy enter the global economy, give a genuine chance to youth, and in the long term reduce unemployment.

Money / Issue 28 - 17

START-UPS

PAMELA BALDACCHINO Age: 43 Start-up: Sanctuary Position: Transdisciplinary artist and team leader What is the main aim of Sanctuary?

Sanctuary is an audiovisual tool presented in the form of a head-mounted display and designed to create a virtual shelter within hospitals and clinics. It has a software application which allows the nurse or therapist to access a menu of audiovisual artworks created for use within such a context. Depending on the type of audiovisual chosen, the benefits include a way of triggering or compounding the empathic response in the client or a way of reducing stress and anxiety.

What inspired you to develop and launch your start-up?

I work with knowledge derived from the fields of care and art practice. In addition I suffer from a chronic condition called fibromyalgia which shows me how important it is to empathise both with oneself and with others during illness. This helps support the individual in their own personal journey towards understanding and creating meaning within one’s life.

Together these factors have pushed me to work artistically to create a space of safety that is compact, portable, accessible (no language barriers), versatile (suites all ranges of individual experience, culture and education), and empowering (viewer participates through interpretation and audio).

“THE MAIN INGREDIENT WOULD DEFINITELY BE CREATING VALUE FOR THE INNOVATION IN HAND.”

What also inspired me is the support I get from the Takeoff business incubator. They provide me with knowledge, guidance and opportunities so as to direct my progress towards making Sanctuary a market- and investor-ready business.

What, for you, are the main ingredients that fuel a start-up’s success?

The main ingredient would definitely be creating value for the innovation in hand. In Sanctuary’s case this would revolve around value validation for the user, care provider, payer and investor. In addition to this would be the actual drive to push it out there coupled with good team dynamics and PR. What can one learn from the failure of a start-up?

One can learn not to make the same mistakes again, to choose the right business model and to lose any excessive arrogance.

Pamela Baldacchino

TYRON LLOYD BARON

“YOU NEED A GOOD IDEA, THOROUGH DUE DILIGENCE, THE RIGHT TEAM AND PLENTY OF ELBOW GREASE.”

Age: 24 Start-up: Inboundmuse Position: CEO What is the main aim of Inboundmuse?

Marketing analytics is difficult, time-consuming and expensive. By using artificial intelligence to analyse big data and make predictions, we give inspirations in simple English to drive strategy and action.

What inspired you to develop and launch your start-up?

Predictive analytics has for a long time been relegated to the domain of large enterprise. We want to democratise the power of prediction and big data and allow SMEs to benefit as well.

What, for you, are the main ingredients that fuel a start-up’s success?

You need a good idea, thorough due diligence, the right team and plenty of elbow grease. You also need innovation. A start-up, by sheer necessity, must prove itself to be a hotbed of innovation to survive. It’s where unorthodox ideas have the freedom to grow and whole new markets to be born.

Tyron Lloyd Baron

18 - Money / Issue 28

Photo by Chris Sant Fournier

What can one learn from the failure of a start-up?

You learn what not to do again in the same way. In this case the best mistakes to learn from are those of others.

20 - Money / Issue 28

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ELECTRO LOBSTER PROJECT a: 32 Main Street, Balluta Buildings, St Julians | t: 27357357 facebook.com/electrolobsterproject | instagram.com/electrolobsterproject | pinterest.com/elpmalta Money / Issue 28 - 21

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22 - Money / Issue 28

George Larry Zammit is a chartered marketer who invigorates businesses through his consultancy Tiki-Taka Marketing – www.tiki-taka.com.mt

Interview MARKETING

REACHING OUT

Which marketing trends will grab our attention in 2015, asks George Larry Zammit.

I

t is the end of the year and most of us are already setting our sights on the new one.

Same goals. Same objectives. Maybe different challenges. All in all marketing should be the core function to drive your business forward.

Marketing should not be considered as a miracle cure. It should be your master plan to invigorate your business or brand.

business or brand remain relevant to consumers?

The same questions remain. How are we going to work up the consumers’ appetite to consume? How will we oversee the challenges of an increasingly demanding and dynamic marketplace? How will our

In this feature we will attempt to anticipate marketing developments in 2015 and offer our own touch of wisdom. Most importantly you must be proactive and not preventive. There is no need for

Marketing is not just about advertising. It is a process to identify and anticipate customer value.

Keeping a marketing-centric approach to your day-to-day routine will enable you to transform your business or brand into something relevant and, most importantly, profitable.

a crystal ball. All you need to do is remain aware of market, media and customer developments while having a firm instinct to plan and act accordingly.

DISRUPTION

A persisting challenge will be customer engagement. How do we plan to get our customers’ attention? Disruption is the current buzzword and it is those businesses and brands that disrupt the marketplace by changing the way consumers engage and consume the product or service that gain the upper hand.

Gone are the days of utilising a simple SMS

Money / Issue 28 - 23

Interview MARKETING

notification or constantly pushing Facebook posts on your business page.

Marketers are constantly searching for the next big thing to successfully engage with consumers.

Fortunately for consumers, a plethora of options and channels exist to engage with products and services. How business and brands stand out is a tricky question to answer. Certainly though, marketers who decide to go against the current and disrupt the status quo will most probably be those who realistically make a difference to their market share and bottom line.

BRAND VALUES

We live in an era of unlimited choice. With choice comes cutthroat competition. With competition come price wars. Is it a sustainable model? Do you really think that businesses can scale in the long term by motivating their customers purely by price?

If you want your business to last for the long-term and see your customer base scale up sustainably, developing your brand values and attributes is essential. While it is no easy task to convince customers that attributes are more important than price, it is through customer loyalty and appreciation that businesses grow.

Therefore many brands in 2015 will put more time and effort to develop consumer trust and loyalty.

There will be businesses which seriously believe that by creating that leap of faith, customers will not choose them because they are the cheapest, but purely because they are the best.

CHANNEL MANAGEMENT

The number of channels available to communicate with consumers is massive. While digital channels such as Facebook, Google Ads, and other online media will continue to increase in popularity and usage, print media will continue to be seriously challenged and struggle for relevance.

Does this mean that print media is becoming irrelevant? Not necessarily and some marketers will choose a more qualitative medium to target the right niche of customers. This can be done through print channels, all depending on the quality and focus of the medium.

On the other hand, is social media reaching a plateau? Sometimes you get that sense that Facebook no longer has that certain mojo.

Especially when you seriously consider the limited amount of personal content people post on their profiles.

24 - Money / Issue 28

One channel to keep any eye on is Google+.

It is very surprising that considering Android is the leading mobile operating system in the world and Google is the global leader for digital services such as search, maps and mail, Google+ has not really made much inroads as a leading social network.

Google+ has massive potential considering the business linking of products such as maps, reviews, and Google’s display network. Apart that many Android users have not really realised that all their phone photos are backed up on Google+ and that photo editing tools are quite impressive. Is it time for people to get bored of Facebook and move on to the next best thing? Do not underestimate the power of Google+ in your marketing efforts during 2015.

THE IMPACT OF TECHNOLOGY

even though the outreach might not be as quantitative as an online audience.

Consumers love to see the human side of a brand.

Consumers want to engage with the actual people behind the brand or business. While digital may seem more efficient and cost-effective, physical outreach is important too. Reaching out through digital mediums also has its limitation. A more physical approach to reach out and activate can be more memorable and last longer.

Therefore in 2015 we expect to see more businesses opting for the old-school approach of on-site initiatives such as a road show. Nothing replicates physical contact. It is the ice-breaker which activates the relationship between the brand and consumer.

MARKET RESEARCH

It is easy to predict that technology will continue to drive marketing efforts in 2015. From cloud computing to digital wearables, all the content we create and consume is digitised. Those marketers who embrace technology will have a much easier task at communicating efficiently with consumers.

2015 will also be another challenging year due to the evolving dynamics of the market prompted by the increasing expectations of consumers. No consumer is a charity and therefore will not trade their hard earned cash for a service or product they don’t really need.

Smartphones have become the norm. Digital marketing website eMarketer forecasts that global penetration of smartphones will reach 50 per cent by 2017. It is most probably already much higher in Malta. Therefore marketers will focus their attention on disseminating content to smartphones. At the end of the day it is most probably the device that most consumers use to browse social media, consume news, and do general browsing and quick searches.

Therefore businesses will need to increase their efforts to understand and anticipate customer needs. As mentioned, marketing is no crystal ball.

Serious effort should be dedicated to research to acquire insights and trends which anticipate or indicate what will eventually happen in the future.

If your main content strategy is about pushing content out through social media, you need to ensure your content is optimised for mobile. That is why fully responsive websites have become a norm and not the exception. If you have a website your Google Analytics will clearly show you the considerable amount of traffic which not only comes from desktop computers but also from tablets and mobile devices.

Therefore embrace technology further in 2015. Put smartphones at the centre of your communication strategy. There is a big probability that the first step of a consumer’s engagement with a brand or business will have initiated from a smartphone.

TRADITIONAL METHODS

So with the dominance of technology, do we call it a day for traditional methods? Not necessarily because traditional marketing is still important

Digital tools and services have made it easier to carry out research. Those who ignore the importance of market and consumer research in 2015 will certainly find it even harder to reverse the negative trajectory of their business. Those who embrace research will certainly be one-step ahead.

WHO DO WE TARGET

Last and not least it is important to seriously consider who really are our customers in 2015.

For whom do we exist? Who are the customers that last? Who are the customers who are realistically contribute to our bottom line?

Customer demographics are no longer important as they used to be. Gender, age and location no longer offer the key to understand which customers you should target. Customer targeting should now be based on behaviour and affinity.

What do a certain segment of customers like to do? What are the things close to their heart?

Effective customer targeting will be an essential key for businesses to succeed in 2015 and beyond.

Understand your customer, conquer the market.

26 - Money / Issue 28

Marketed and distributed by Farsons Beverage Imports Co. Ltd. Trade Enquiry 2381 4400

BUSINESS Interview LEADERS

BUILDING THE FUTURE

As we start a new year, Money meets business leaders to discuss the prospects for 2015.

T

he Maltese economy has largely weathered the financial storm that toppled far bigger economies. And it did so thanks to its resilience as well the way local businesses can differentiate between the kind of high risk that doesn’t guarantee any returns, and a precious insight which can carve out new niches in the market while delivering constant and consistent products and services.

As 2014 comes to an end and a new year begins, we take a look at how businesses plan to consolidate and achieve further growth in 2015.

For Jonathan Shaw, Trilogy Limited Managing Director, the key to a business’s growth is ongoing

yet careful investment, which may range from software upgrades to staff training. The latter, especially, has to be instilled in a company’s culture, especially in retail, where sales staff are in constant contact with customers.

Charles Borg, Bank of Valletta Chief Executive Officer, says that 2014 was a particularly challenging year for banks in Europe. However, Bank of Valletta still managed to increase its core operating profit. In 2015, BOV will continue supporting start-ups and micro enterprises, while pursuing its commitment to invest in customer-centric innovations.

Malta International Airport is an important gateway for Malta. Markus Klaushofer, Malta International Airport plc Chief Executive Officer, says that this is a huge responsibility: in 2015, MIA will continue to work hard to make Malta more attractive as a destination and more connected through our route development.

“2014 was a year of consolidation for Mizzi Organisation,” says Maurice Mizzi, Mizzi Organisation President. However, the Organisation still achieved growth in the sectors in which it operates. Some sectors are more challenging than others, including manufacturing and the automotive industry. Hopefully, these challenges will be addressed in 2015.

BANKING ON US Our aim is to maintain our status as the bank of choice, says Charles Borg, Bank of Valletta Chief Executive Officer.

In 2014, how did you build on what you achieved in 2013?

2014 was a particularly challenging year for systemically important banks in Europe, among them Bank of Valletta. BOV was part of the Single Supervisory Mechanism which means that we had to go through a detailed asset quality review of our balance sheet together with a stress test which was conducted by the European Central Bank. This notwithstanding, the Bank managed to increase its core operating profit by two per cent during the financial year just ended.

Charles Borg

Money / Issue 28 - 27

BUSINESS Interview LEADERS

“THE BANK’S FOCUS REMAINS CUSTOMER-CENTRIC AND STRATEGICALLY PROJECTED TO ENHANCE CUSTOMER EXPERIENCES BY PROVIDING THEM WITH ADDED VALUE PROPOSITIONS.” These results were achieved against a very challenging backdrop, characterised by historically low interest rates, a tougher regulatory regime and geo-political risk in North Africa and Eastern Europe. BOV also registered an increase in deposits which have reached an all-time high of €7bn, a clear sign of market confidence in the Bank and its brand.

of ATMs that provide customers with real-time cash and cheque deposits. The Bank will also be launching its online trading platform in the coming months to enhance its position as the leading broker in Malta. With a view to reward customer loyalty, the Bank continued enriching its BOV Loyalty Rewards Programme by introducing new partners.

What new products and services did you introduce to the market in 2014 and how were they received?

As one of the major economic drivers of the economy, BOV continued to support the business community by continuing to make credit available in a responsible manner.

Various products were made available to local SMEs, with one of the Bank's major success stories being the JEREMIE financing product which was fully committed during financial year 2014. The Bank continues to give significant importance to start-ups and micro enterprises. By tapping into EU centralised funds, we were in a position to start offering a new risk-sharing instrument.

The Bank has initiated a number of reviews and restructuring exercises, driven by the fact that we want to remain the Bank of Choice for our market in the years to come. Thus the Bank conducted an IT review assessment, conscious of the fact that this area represents a critical capability which requires significant ongoing investment. The Bank's Trusts business is also being restructured along with a comprehensive review of the Investment structure, both in relation to infrastructure and human resources, so as to continue attracting high net worth clients to our Wealth Management.

We remained very active in the area of consumer lending in particular home loan finance. BOV also remained true to its commitment to invest in customer-centric innovations, by launching a new online portal that will serve as the Bank's knowledge base whilst enabling customers to engage with the Bank online.

How did you invest in 2014 and with what expected returns?

The Bank's focus remains customer-centric and strategically projected to enhance customer experiences by providing them with added value propositions. This goal led BOV to embark on several projects including the redevelopment of its premises in Gzira, which are set to integrate various customer-facing activities within a new and modern environment. We renovated our premises in Zachary Street to house Trusts Unit and the International Corporate Centre. The Bank continued to upgrade to the new generation

28 - Money / Issue 28

In what ways did you invest in human resources in 2014?

Our people remain our most important asset.

As a financial service provider, our workforce remains our competitive edge. Financial year 2014 saw Bank of Valletta continue to update its career development strategies and anticipate skills requirements with a view to ensure that we would be in a position to meet future resourcing demands.

We retain our focus on being a good employer, providing equal opportunities to our people irrespective of their gender, status and caring responsibilities, as was corroborated by the Bank's Equality Mark recertification. We are proud that our people still choose BOV as their employer in the long term, with the average employment duration being that of 18 years.

This necessitates that we create lifelong learning opportunities for our people, in a bid to retain high levels of employee motivation.

How do you plan to achieve further growth in 2015?

Our conservative business model and prudent policies continue to provide a sound base to meet the challenges that may be posed by single supervision mechanism. Strong liquidity and robust capital ratios are necessary for BOV to remain resilient.

The Bank will also be restructuring its credit function, with the main aim being that of clearly distinguishing between the origination of credit and its sanctioning.

This reform aims to extend the four eyes approach to business lending, and to embed the culture of accountability for credit decisions taken.

BOV will also strengthen its data governance framework, with the twin aims of improving data quality and ensuring ready accessibility of relevant and accurate data to business users.

The Banks's efforts during financial year 2014 have not only been acknowledged locally by our clients but have also been recognised internationally. BOV has this twice this year been recognised as the Best Bank in Malta - once by Global Finance and another by the Financial Times through their Bank of the Year Awards.

I believe that what has always distinguished Bank of Valletta is the passion we have for our business, our customers and the Maltese community. This remains our vision for 2015.

What prospects do you think Malta has in the new year?

Locally, the Maltese economy has remained resilient throughout these challenging years and continued to register economic growth driven mainly by the export-oriented sectors such as tourism and services. The European Commission considers Malta's growth outlook to be robust and is projecting that domestic demand is the main driver for economic growth. The GDP growth is expected to reach three per cent in 2014 as a result of strong investment expenditure. Malta needs to continue tackling structural challenges in order to maintain healthy public finances and strengthen the country's external competitiveness.

From an EU perspective, the European Commission is embarking on a €300 billion capital investment programme to be implemented over the next three years. This would provide as a key impetus in improving European competitiveness and infrastructure vis-a-vis other regions. It is critical that we tap into this investment flow in order to further improve the country's prospects as well as those of business players.

CREATING GROWTH foremost, investment in human resources has to be a company culture and this goes beyond staff training. Having the right remuneration packages and incentives together with ongoing team-building and staff activities are important.

Regular updates on the collections and selling skills contribute to better product knowledge and job enrichment.

How do you plan to achieve further growth in 2015?

As we speak, the company is looking at expanding further with the introduction of another brand that complements the Tommy Hilfiger and Armani Jeans brands. Yet besides such growth generated by the rollout of new brands or stores, we also always aim to set higher yet achievable targets which provide growth year on year. Nonetheless, like in any business, one cannot look at just turnover and the bottom line is always more important.

“I STRONGLY BELIEVE THAT GOOD GOVERNANCE IS CRUCIAL FOR THE ECONOMY.”

Jonathan Shaw

We always aim to set higher yet achievable targets, says Jonathan Shaw, Trilogy Limited Managing Director.

In 2014, how did you build on what you achieved in 2013?

We had no new store openings in 2014 so the focus was primarily on consolidating what we have and working on further improving key areas. We also maintained a strong momentum and awareness by marketing on diverse media platforms. While I’m not a big fan of large advertising budgets, I strongly believe that you still have to retain a certain degree of brand presence. Hence, this is where market knowledge kicks in, that is, in knowing what and how much to do so you get a good rate of return on your marketing investment.

How did you invest in 2014 and with what

expected returns?

Investment in any business is ongoing and it could range from physical improvements and software upgrades to mystery shopping exercises and staff training. A return is obviously expected and this is also at times reflected in intangible measures such as maintaining a high market position and perception from our clients. The respective brands and stores performed well and reached the expected levels for the year.

In what ways did you invest in human resources in 2014?

Employees are a company’s best asset, especially in retail, when most of your employees are on the front line and meet your customers. First and

What prospects do you think Malta has in 2015?

Prospects seem good. However, I always believe that one has to evaluate such prospects by taking into account both the country and company aspect. I strongly believe that good governance is crucial for the economy and while any administration must create the right environment, it’s up to the private sector to create growth. Over the years, the local entrepreneur and private sector have achieved great results and transformed the country into a thriving economy. There is always more that can be done and achieved and I’m hoping that in the new year, the economy and key sectors achieve higher growth by the having the right decisions taken to stimulate further private investment across a number of sectors.

Money / Issue 28 - 29

BUSINESS Interview LEADERS

CONNECTING MALTA

We remain focused on attracting visitors to our islands, while offering exciting destinations to the local market, says Markus Klaushofer, Malta International Airport plc Chief Executive Officer.

“THIS HAS BEEN AN EXTREMELY BUSY AND PRODUCTIVE YEAR FOR US.”

In 2014, how did you build on what you achieved in 2013?

We consistently strive to improve our tourism product as Malta’s only airport and work very hard every year to make Malta more attractive as a destination and more connected through our route development.

Serving over 80 destinations in 2014, we are forecasting another record year with passenger movements expected to reach 4.2 million. The increase between January and October this year was 6.7 per cent when compared to the same period last year, and we recently celebrated our four millionth passenger milestone, an entire month earlier than in 2013. These accomplishments were mainly driven by the additional seat capacity borne by new airlines and routes. We remain focused on developing sustainable capacity and attracting visitors to our islands, while offering new and exciting destinations to the local market.

What new products and services did you introduce to market in 2014 and how were these received?

Last September the new VIP terminal was opened to commercial aviation passengers. Our VIP product is particularly relevant when positioning Malta as an aviation industry player. Situated just off our main aircraft parking area, the VIP terminal gives the quickest access and the shortest possible distance between a passenger and their arriving or departing flight. All standard travelling procedures can be processed through the VIP terminal, without the need to queue or wait, allowing passengers to relax and enjoy their privacy. We are optimistic that this new experience will benefit our general aviation customers and partners.

We also launched a foundation entrusted with using the company’s corporate responsibility funds to invest in projects aimed at improving Malta’s tourism product. The Malta Airport Foundation is part of the company’s strategic decision to contribute directly to the tourism industry by investing in Malta’s heritage and environment. The foundation’s first project will see the restoration and conservation of the Wied iz-Zurrieq watchtower, also known as Torri Xutu,

Markus Klaushofer

through an investment of €130,000.

How did you invest in 2014 and with what expected returns?

This has been an extremely busy and productive year for us. In 2014 alone we invested around €4m in key development projects both landside and airside. We expanded the apron and taxiway to allow for more capacity and a more efficient flow of aircraft, with an investment of around €760,000. We extended the baggage handling section in the check-in area to increase capacity and reduce queuing times, an investment of around €560,000. We also started investing €2m in expanding the Non-Schengen area to reduce congestion and improve passenger flows.

This project will be completed by summer.

All of these investments help us to provide more efficient services to operators and customers alike. As mentioned earlier, this year we also unveiled our VIP terminal which has already been very successful. Smaller investments include a new weather radar which helps in providing early warning of approaching storms and investment in technology to be in line with new EU regulations on security processes.

In what ways did you invest in human resources in 2014?

Malta International Airport depends heavily on having a good team that is able to work well with all the different operators and partners at the airport for the benefit of every passenger. To ensure this, we expose our employees to a large number of programmes and initiatives to help in their learning and personal development. This includes regular on and off the job technical training, team-building

events and encouraging personal development such as through the sponsorship of University degrees or other courses related to the employee’s role or for succession planning.

Through a close collaboration with Vienna Airport Academy, and Cranfield University, the company is also giving employees the opportunity to broaden their know-how on the various sectors of the airport business, via the Airport Management Training Programme. Since 2008, 13 employees have successfully completed this airport-specific course which allows for establishing contacts within the corporation due to its international dimension.

How do you plan to achieve further growth in 2015?

We already have four new airlines lined up for 2015: Finnair will start flying from Helsinki in April, Jet 2 will be flying from the East Midlands, Leeds, Newcastle, Glasgow and Manchester from May, Swiss Air which will start flying from Zurich in July and Aegean airlines which will launch its Athens route in summer. We will be officially communicating the forecast for 2015 in the first month of the year.

What prospects do you think Malta has in 2015?

We see a number of opportunities for Malta in the new year and beyond. Specifically in relation to 2015, the Commonwealth Heads of Government Meeting will give us a very high profile international platform. On a more strategic note, I believe that there is great potential in promoting Valletta as a destination in itself. The capital city offers an all-year round appeal through which we can successfully address the limitations of seasonality we’re all too familiar with.

A YEAR OF CONSOLIDATION We strive hard to consolidate our position, says Maurice Mizzi, Mizzi Organisation President.

2014 was a year of consolidation for Mizzi Organisation, which operates in several fields, including automotive, finance, beverage, engineering, property, retail hotels and is also involved in partnerships in an English language school, yacht repair and the Maltese lottery.

However, even so Arkadia Food store managed to obtain the franchise of Waitrose, a prestigious UK food company. This will help increase revenue considerably during 2015.

Mizzi Estates on the other hand has completed the construction of a block of flats in Viani Street, Gzira, a few minutes’ walk from the Sliema ferries. Most of the flats and garages have been sold or rented out. Now the company is concentrating on demolition and excavation work in a site in Bugibba, limits of St Paul’s Bay. The company will also start demolition on a site in Mannarino Road, Birkirkara. It is envisaged that work in this company will triple during 2015. Therefore a full-time architect has been engaged to help the Mizzi Estates team.

Developments in the automotive division have been static due to the fact that new car importers have not been able to increase their share of the total car market. However, apparently the authorities seem to understand that used cars over nine years old which are being imported are increasing seriously Malta’s pollution levels. It is hoped that during 2015 measures will be taken in order to reduce the number of old cars being imported.

In the meantime the scrappage scheme which came into effect a few days ago will help the sale of Volkswagen, Seat, Audi, and other cars being sold and serviced

by Mizzi Organisation companies.

The five-year warranty and the 12-year warranty on body being given by the organisation’s car companies in comparison to only two years being given by UK dealers will help sales of the organisation’s new cars.

The first Volkswagen electric cars will be arriving during the first quarter of 2015. Titan, the engineering arm of the organisation had a good 2014, and if the full order book which the

Maurice Mizzi

company has at the moment is anything to go by, 2015 is going to be the best year for this company.

A product is as good as the service which backs it. For this reason, training programmes are being continually put in place in all the organisation’s companies so that our service to our customers which is already of a high standard will improve even further. Our technicians in our automotive and engineering service departments are constantly being sent abroad for training while on line training is also being undertaken.

General Soft Drinks, the beverage company of the organisation, as always is consolidating its position as the leader in soft drinks and water production.

The economical situation in Malta is a phenomenon. While countries surrounding us such as Italy, Spain, Portugal, Libya and Greece are in huge economic trouble, Malta is not feeling the draught and is producing excellent economic results whichever way one looks at

“A PRODUCT IS AS GOOD AS THE SERVICE WHICH BACKS IT.” them. England is the only country in the EU which like us is doing well.

There is of course a great challenge in one sector: manufacturing. This is an issue which is affecting not only Malta but most western countries since most manufacturing companies have either shifted their factories to China and the Far East or are contracting their production to Chinese companies. This is one of the main reasons why like an incurable disease Europe’s recession drags on. Unfortunately there is a great disparity between the spiralling European wage and salary structure and Chinese labour rates.

Unless Europe decides to take a difficult decision and freeze wages and salaries, Europe’s manufacturing future looks bleak.

Money / Issue 28 - 31

FINANCE

THE YEAR THAT WILL BE Will 2015 bring an economic boost for Malta, asks Reuben Buttigieg.

I

n November, as it is custom, the Government of Malta announced its economic results and plans through the budget speech delivered by the Minister of Finance.

This year, the Minister announced positive results over the past year and outlined various plans for the upcoming months. The budget speech tries to encourage employees to work more and to give them a sense that their work is valued while encouraging certain sectors to participate more in the working world. This is indeed positive and the measures taken such as the reduction in income tax, the creation of the maternity fund, and the youth propositions will certainly give their positive results in terms of workforce. These same measures will also lead to business growth since the population will have more spending power.

There have been various other measures with which one may or may not agree. However, the real economic boost from this budget will come from the announced projects and from the reduction of the utility bills for businesses.

The budget also announced a series of private public partnerships which will assist the private sector to gear up and generate wealth for itself and for its service providers. In the mid-1990s, these strategies were very common, partially done strategically and partially through necessity such as Mater Dei Hospital (at the time San Raffaele).

Such large-scale projects always give a boost to an economy like Malta’s. Although Government is being criticised in this sense as most projects seem to be related to construction, the reality is that these projects will circulate wealth and

32 - Money / Issue 28

will create a feel good factor that is always appreciated. If all the projects announced such as land reclamation, the yacht marina in Sa Maison, the projects in the South in tourism related industries, and the Bahar ic-Caghaq project all start next year, Malta will start experiencing a major change.

During this change, Malta will have to start working in developing other sectors which will make good for when these projects finish.

Indeed it seems that Government has been thinking along these lines with initiatives like Islamic finance and those announced in the tourism sector such as Conventions Malta.

Islamic banking and sukuk, as the Minister referred to in the budget speech, will indeed open a new financial services industry in Malta but not only. If Malta is smart enough, it may use these instruments to finance the projects referred to above and through them place itself on the Islamic finance map. Government may, through the issuance of a sovereign sukuk, finance most of the planned projects. This would mean that international Islamic financial institutions would look to invest in Malta.

Being the second European country (the first was the UK) to issue a sovereign sukuk, we would certainly attract the attention of major players. We need to be prepared to ensure that we have the correct propositions including the necessary legislative framework and human capital to service these institutions that would use Malta to tap into opportunities in neighbouring countries particularly in North Africa but also in Italy. I’m positive that Government

Reuben Buttigieg is Managing Director of Erremme Business Advisors, Founding President of the Malta Institute of Management Accountants and President of the Malta Institute of Management.

tapped into the way it should as the players acted individually and not in a coordinated manner. Furthermore, there is a lot of waste in resources used to promote Malta. Conventions Malta can synergise resources and open doors to untapped tourism in the conference and events sector. Certain announced projects also seem to complement this idea.

“BEING THE SECOND EUROPEAN COUNTRY (THE FIRST WAS THE UK) TO ISSUE A SOVEREIGN SUKUK, WE WOULD CERTAINLY ATTRACT THE ATTENTION OF MAJOR PLAYERS.”

will be investing in the authorities to ensure they gauge the best possible knowledge.

Through Conventions Malta, Government will most probably try to create synergies that the private sector cannot achieve. No individual company in Malta can attract certain conferences as they are too large to handle. This is a sector that Malta has not

Another area mentioned in the budget which should give a boost to the services sector is the construction of a sound stage for the film industry. One of the major criticisms that Malta receives in the film industry is the lack of big sound stages. Finally, there shall be a relative investment and one which may attract more film shootings in Malta.

However, this is not enough. There are other issues that we need to address in this industry which involves the coordination of various authorities and entities such as the Malta International Airport, Air Traffic Control, the Malta Tourism Authority, and the planning and environment authorities amongst. Regrettably we have not seen such coordination to date.

di Finanza. This reference in reality contradicts all the efforts Malta has done in the financial services sector over the last 25 years. Perhaps Government is aiming at an overall change in strategy.

Government cannot let down the population on the announced projects as otherwise there could be a disastrous effect in the following years. Certainly the Minister of Finance knows the positive snowball effect that he will create if the projects materialise and I’m sure he has taken a calculated risk of them not becoming concrete.

There were some hidden negative messages as well in the budget which certainly many did not capture. One of these which will certainly require clarification is the reference to the Italian Guardia

GAME ON Can Malta play the game for European football clubs and international players?

This year Malta launched an Individual Investor Programme which is an attractive option for international football players wanting to play for European football clubs. The IIP allows for Maltese citizenship through a certificate of naturalisation to individuals who contribute to the economic and social development of Malta.

European football clubs may only have five non-EU players on their teams.

With the IIP that Malta offers, a prospective footballer may be given the same opportunities that any other European player has. Malta is an EU member and by becoming a Maltese citizen one may play in European leagues and would have the same freedom of movement as any other European player. Receiving Maltese citizenship comes after a stringent due diligence process on the individual who meets certain conditions and criteria.

European football clubs may find the IIP interesting as it may give them the opportunity to field players who would otherwise be considered non-EU players. This is because these players become naturalised Europeans. Similar

citizenship programmes are offered by other EU members but the Maltese programme, which is limited by number and time, seems to be unique in nature given the links that a person creates with the country through this naturalisation process.

Malta is not new to the football world and various international players hold investments in Malta, the most publicised of which are Ryan Giggs and Gary Neville. Many other football players seem to have interests in Malta. The IIP puts Malta even more at the forefront in the football world.

Also, international football names are coming into strategic alliances with Maltese football clubs, given the opportunity that this football league may offer from a strategic perspective. Many are looking into alliances with or takeovers of Maltese clubs. The latest takeover was that of Floriana FC by Mr Riccardo Gaucci, son of the former Serie A Perugia owner, who is said to have struck a multimillion deal with the club.

Strategically one can arrive to Europa League in a more cost-efficient manner through a Maltese club providing an opportunity for young players of larger league clubs for international experience. This is being strongly promoted by Erremme Business Advisors which has an in-house built expertise in the industry. EBA seem to be the only consultancy firm specialising in football in Malta with a combined package of expert ideas aimed at international players and European football clubs.

Money / Issue 28 - 33

34 - Money / Issue 28

INTERVIEW

Gerard Butler, the face of Boss Bottled, describes the feeling of wearing a suit, a kilt, and an emotional fragrance.

So would you say you’re someone who responds well to scent and fragrance?

Completely. Like the clothes you wear, I think that it totally gives you a way of feeling about yourself – the way you smell is a part of how confident you feel and how much you’re vibing with what’s around you. And I definitely think the same about somebody else. It can be that the scent of a woman, dare I say, is the thing that drives you crazy. And the difference between a scent you like and how that draws you to a woman, and a scent that you don’t like and how that can definitely push you away.

Without a doubt fragrance is hugely important.

As an actor you have to adopt many different styles but what would you say is your go-to style?

I love to wear a pair of cargo pants, or just a good pair of jeans, my baseball boots and then just a t-shirt or sweater. But I also like to wear suits. I was a lawyer so I wore suits every day for years. And now when I’m doing press, going on a talk show or doing my interviews around the world, I always like to put on a suit. And it feels great. You stand straighter, you have a different deportment, you have a different confidence and air about yourself, and you feel sexy. It’s like a Scotsman wearing a kilt. A kilt to a Scotsman is what a suit is to the rest of the world.

Photo by Cliff Watts

How important is fragrance as part of our daily grooming regime?

It’s very important. Nowadays I’m pretty good with cleansing and using a good face cream and eye cream. Which surprises me. But I do that, and then most days I put on a fragrance and it feels really good. It makes such a difference to how you feel about yourself, when you feel you smell nice, with something that’s really tailored to what you like and how you like to present yourself.

So have you ever worn a kilt for a special red carpet event?

I have, but I have to say, when you’re a leading man in a movie, I’d rather generally not attract too much attention. It’s better to be subtle on the red carpet – wear a striking suit, but not something loud and in your face. And that includes a kilt. A kilt is great, but it’s so defining and most of the time when you’re doing these red carpets then that’s not really the best way to present yourself. But when I did a premiere of Law Abiding Citizen in Scotland, all my family and friends were there from Scotland so I wore a kilt and it was a lot of fun.

Do you go home for Christmas?

I almost always go home for either Christmas or New Year. A couple of times I went skiing instead, but I always make it home for Christmas or New Year.

Would you say you enjoy all the traditions that come with Christmas?

It’s my favourite part of the year: it’s the time that the whole clan come together. You celebrate each other and catch up on everything. I actually think Scotland is beautiful at Christmas – it’s cold but I’m in the Highlands, so often it’s snowing.

It’s very magical. And then the big Christmas dinner brings back so much of my childhood.

If you could have one thing for Christmas this year, what would you ask for?

You could get me the classic BMW – it was like an R69 that the guy brought to the commercial. I went to actually see him! The guy on our commercial, who turned up with the bike. It was this beautiful old BMW, so I got in touch with him and went over to his house and met him and his wife and went out for a ride on the bike. It was amazing.

Would you like to receive fragrance as a gift?

I think you have an emotional response to fragrances. For the very reason that I like to wear them and I like to smell them on somebody else, then I think it’s a nice gift.

Money / Issue 28 - 35

COUNTRY Interview PROFILE

SOUTH OF THE BORDER

North and South Korea are universes apart.

But would unification benefit South Korea? ny place whose name also determines its geographical position also indicates a mirrored reflection: a Hyde to its Jekyll. A country, region or state that is similar and different at the same time. Probably once part of a political or geographic whole, they are now opposites. You have North Carolina and South Carolina. North America and South America. North Korea and South Korea.

A

Korea. This move has infuriated atheist Pyongyang, which said that this move will have catastrophic consequences. As usual, paranoia fuels North Korea’s actions. In fact, North Korea’s state-run KCNA news agency released a statement saying that, “The tower is not a tool for religious events but a symbol of manic attempts to raise cross-border tension and provoke armed conflicts.”

defeated in World War II, Korea was divided into two occupied zones: the north was occupied by the Soviet Union and the south by the United States. Two separate governments were formed and all attempts at unification failed. The separation of the two Koreas was cemented in place by the Korean War in 1950 and the United Nations’ eventual acceptance of the two states in 1991.

North Korea’s existence is determined by South Korea’s, and vice versa. It’s like a game of antonyms. The first is atheist, the second capitalist and liberal. The first is poor, the second rich.

The first puts on a show at holding elections, but in reality, it’s a totalitarian dictatorship with a cult of personality built around Kim Il-Sung and his family. South Korea, on the other hand, is a functioning and modern democracy.

Military tensions between the two countries are constantly high. The Korean Demilitarised Zone – which is the strip of land that serves as a buffer zone between North and South Korea – is, despite its name, the most heavily militarised border in the world. It is the stage for much sabre-rattling between the two Koreas and a stark reminder that the two countries are still officially at war. This is because following the Korean War in 1950, the two countries only signed an armistice, which committed both to a cease-fire. A formal peace treaty was never signed.

And two states they are. Not only in the physical, geographical sense, but also as a way of life. There is so little information about North Korea, and the little that escapes its guarded borders show a paranoid, poor country with a terrible attitude towards human rights. Frequent famines and outbreaks of infectious diseases plague the country. Poor power supply limits the expansion of its economy. In fact, coal production in North Korea declined from 45m tonnes in 1989 to 18.6m tonnes in 1998. This decrease has caused serious problems in industrial production and electricity generation.

The two countries are total opposites and grab every opportunity to skirmish about it. In the last incident, South Korea said that it will be allowing the Christian Council of Korea to build a tower shaped like a Christmas tree near the border with North

36 - Money / Issue 28

And yet, until the 19th century, both formed part of the same nation. Korea was eventually annexed by the Empire of Japan in 1910, but when Japan was

Moreover, the collapse of communist governments in the world in 1991 halted North Korea’s principal

source of support, the Soviet Union. In fact, while until the mid-1970s, the GDP per capita of the two Koreas was similar, nowadays, North Korea’s GDP per capita has declined to $1,251.

While North Korea has slipped into poverty, totalitarianism and nuclear ambitions, South Korea is enjoying a thriving economy. Between the 1960s and the 1990s, South Korea became one of the so-called Asian Tigers – together with Hong Kong, Singapore and Taiwan – whose free and highly developed economies experienced rapid growth. Government-sponsored schemes encouraged the growth of family-owned industrial conglomerates such as Hyundai and Samsung.

These, in turn, have made North Korea a leading exporter of cars and electronic goods and one of the world’s major economies.

Today, South Korea is the world’s 15th largest economy, built on the foundations of sustainable development, excellent infrastructure, and constantly improving services. Its GDP for 2013 amounted to $1.305 trillion. It is increasingly liberal and transparent: in the Corruption Perceptions Index released by Transparency International for 2014, it is in 43rd position – its Northern counterpart is way below in 174th place.

With almost no natural resources, South Korea pursues an export-oriented economy strategy.

In 2012, South Korea was the seventh largest exporter and seventh largest importer in the world. Other important sectors are shipbuilding and the automotive industry. Together with China, South Korea dominates shipbuilding, fielding big players such as Hyundai, STX and Daewoo.

In 2008, South Korea reached a shipbuilding climax, with a 50.6 per cent share of the global shipbuilding market.

South Korea’s automotive industry is the fifth largest in the world, measured by unit production. The country’s automotive industry initial operations consisted of assembling

parts imported from foreign companies. Today, however, South Korea has one of the most advanced automobile-production lines in the world. Moreover, not only does the industry serve the domestic market, but its exports to the US are increasing, as are those to Europe.

In fact, giants such as Kia and Hyundai are catering to the European consumer by building cars that have a European appeal through design, build quality and consumption. That shows an industry that is not only mature but which has also come of age.

South Korea has also made huge leaps in its construction industry. In fact, construction is one of the country’s biggest exports and South Korean companies are responsible for huge construction projects, especially in the Middle East.

The services industry is also thriving. In 2012, 11.1m foreign tourists visited South Korea, making it the 20th most visited country in the world. Seoul, in particular, is a main tourist destination. In contrast, only 3,000 to 4,000 Western tourists visit North Korea.

So, two countries, two realities. But, theoretically speaking, will North and South Korea ever be unified? In real terms, it is difficult to see the two countries – with their different economies, lifestyle, and realities – ever becoming one.

Moreover, there is the cost of unification. Recently, Shin Je-Yoon, chairman of South Korea’s Financial Services Commission, said that developing North Korea’s economy in the case of eventual reunification would cost around $500bn. This estimate covers a period of 20 years, which is the time needed to raise North Korea’s GDP per capita from $1,251 to $10,000. The cost of unification is prohibitive. In fact, a survey released by the Ministry of Unification – an executive department of the South Korean government responsible for working towards the reunification of Korea – showed that while 70 per cent of South Koreans supported the idea of unification, less than half

were willing to help in the financial cost that this would warrant.

But would South Korea benefit from unification?

Definitely. While the South is strong in technology and innovation, it is North Korea that has the greatest natural and human resources. But would this be a perfect marriage? At this point in time and given the ideological variance, probably not.

The population of South Korea stands at

50.22m Technically, North and South Korea have been

AT WAR SINCE 1953 South Korea’s 2013 GDP amounted to

$1.305 TRILLION Last April, South Korea’s

CAR EXPORTS

hit a new record, rising to

$4.8BN South Korea is the

20TH MOST VISITED COUNTRY in the world.

At the time of unification, the GDP difference between West and East Germany was tenfold.

South Korea’s GDP is currently

40 TIMES GREATER than the North’s.

There are more than

41M INTERNET

users in South Korea.

Unemployment in South Korea stands at

3.5 % Money / Issue 28 - 37

Interview NEW DESIGN YORK

GOING DUTCH

Dutch Design Week 2014 presented a clear field for young talent to showcase the future of design.

Photo by Sjoerd Eickmans

Photo by Lisa Klappe

Photo by Jeroen Aarts

D

including the Design Academy Eindhoven, Eindhoven University of Technology as well as other well-known locations like Kazerne and Schellensfabriek, Sectie C and TAC, MU and the Van Abbemuseum.

utch Design Week offers designers an international platform and introduces the public to the infinite possibilities of design in a setting with a festival feel. It gives artists and designers plenty of space for experiment, interdisciplinary crossovers and the creative process.

Following ‘Now future’ in 2013, this year, DDW opted for a theme that provided clear direction but, at the same time, left space for individual interpretation: ‘UP’.

The ambassadors for this year’s edition of DDW were designers Scholten & Baijings and artist Arne Hendriks while the art directors for the centrally located Klokgebouw were Studio Maarten Kolk and Guus Kusters.

The nine-day event, which attracted more than 250,000 visitors, was organised in various locations,

38 - Money / Issue 28

In the Klokgebouw, three Dutch Universities of Technology (Eindhoven, Delft and Twente) presented themselves on location for the first time. Under the banner of Design United, they exhibited design of the future and the role of technology in this. Highlights included the DAE Graduation Show, a Design Health Hackaton by Philips in the Philips museum, the Dutch Design Awards exhibition and awards ceremony and the Now future evening in cooperation with VPRO. Kiki van Eijk and Joost van Bleiswijk, Piet Hein Eek and the occasional collective Dutch Invertuals were just a few of the other designers who showed new work at the 13th edition of DDW.

Photo by Lisa Klappe

Photos by Jeroen van der Wielen

Photo by Sjoerd Eickmans

Photo by Lisa Klappe

Photo by Sjoerd Eickmans

Another feature of DDW was the annual Graduation Show at the Design Academy Eindhoven. For nine long days, the academy presented the graduation work of 155 departing students in deWitteDame.

work by young professionals who received a work grant from the fund last year. The exhibition showed current work and provided a picture of the current generation (digital) designers and architects.

ArtEZ Arnhem and the Koninklijke Academie van Beeldende Kunsten (KABK) were also at DDW this year for the first time, presenting graduation projects. ArtEZ presented designs by alumni in the Temporary Art Centre and combined the exhibition with a series of lectures by international speakers. The KABK put a fresh batch of graphic designers in the limelight in the Glasgebouw.

Following a successful edition in Milan earlier this year, DDW ambassadors Scholten & Baijings entered a dialogue with students and design lovers during the College Tour. Under the auspices of author and journalist Jeroen Junte in the ABN AMRO House (Klokgebouw), the public had the opportunity to question Marcus Fairs (Dezeen), Remco van Voort (former director of Pastoe, Van Voort! business development in design) and the designers.

A number of awards were also presented.

Amsterdam-based design studio Lemz received

In the Schellensfabriek, the Creative Industries Fund NL held the exhibition In No Particular Order, with

Money / Issue 28 - 39

Interview DESIGN

Photo by Sjoerd Eickmans

Photo by Lisa Klappe

Photo by Jeroen Aarts

Photo by Jeroen Aarts

the Future Award for Sweetie, an avatar of a young girl used to combat Webcam Child Sex Tourism. Developed for Terre des Hommes, the realistic imagery of the young child engages sexual predators long enough for police to identify their faces. In only ten weeks time, the Sweetie system identified nearly 1,000 predators from 71 countries explaining its DDA win in the Service & Systems category.

40 - Money / Issue 28

Photo by Jeroen Aarts

Industrial designer Dave Hakkens received the young Designer Award. Artis was selected as the Best Client Award.

The Sochi Project by Kummer & Herrman was awarded with the DDA in the Communication category. Spark design & innovation’s Rescue Tip Board is an inflatable life raft which offers a bit of give as water-bourne fire rescuers bring another

Photo by Lisa Klappe

person into a boat thanks to a tilting feature.

Sweeping the Habitat category, Rotterdam’s recently opened Central Station by Benthem Crouwel Architects, MVSA Meyer and Van Schooten Architects and West 8. The In Vitro Meat Cookbook

by Next Nature Network took Design Research category. Dutch fashion house Viktor&Rolf was awarded the DDA in the Fashion category for their Haute Couture Fall 2013 campaign.

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ENTERTInterview AINMENT

A LIVE WIRE

Matthew Marshall turns on the light on Electro Lobster Project.

B

uilt in the 1920s, Balluta Buildings dominate the St Julian’s skyline. Commissioned by Marquis John Scicluna and designed by architect Giuseppe Psaila, this was the first block of residential apartments built in Malta.

And that is something that no other building can take away from it.

That and its magnificence, which is reflected in its level of detail. Its sheer size is not domineering but a way of making its presence felt. Its

architecture converses pleasantly with the nearby Carmelite church and the last remaining elegant row of Georgian-style houses. Its Art Nouveau façade has a three-dimensional quality: flowers and sculpted motifs are like jewels in a crown of honey-coloured stone. All elements are testimony to the careful planning that went into designing and building it.

Such careful planning and an eye for detail must be a family trait because Matthew Marshall,

great-great-grandson of Marquis John Scicluna, has approached his latest project, Electro Lobster Project, with the same qualities.

“I returned from London some years ago, where I worked in bars while I studied sound engineering, and became involved in the running of The Bar, located on the ground floor of Balluta Buildings,” he says. “After six months, I started organising live events. We had a good thing going and so I decided to do it up properly.

Money / Issue 28 - 43

ENTERTInterview AINMENT

“It certainly wasn’t easy because developing Electro Lobster Project within a scheduled building creates various challenges which always led to long delays. This would put me in a situation where I would try to cut corners in design. However thanks to my mum’s integrity and her if-we’re-going-to-do-it-then-we-have-todo-it-properly attitude, we managed to persevere and develop it into what it is today. Of course I’m lucky to have a great team in my handyman and carpenter who change crazy ideas into real life.

44 - Money / Issue 28

“My idea was to combine the two loves of my life: catering and music. This combination is reflected in the setting of Electro Lobster Project. Spread over two floors, Electro Lobster Project creates different moods: you can have a pleasant lunch in the outside area, have a drink at one of the three bars, treat yourself to an elegant dinner in the first floor restaurant, and listen to live bands and musicians downstairs. We also organise private events for small and large groups. As the name denotes, this is a place where you can eat, listen and play: E, L, P.”

“ELECTRO LOBSTER PROJECT CREATES DIFFERENT MOODS: YOU CAN HAVE A PLEASANT LUNCH IN THE OUTSIDE AREA, HAVE A DRINK AT ONE OF THE THREE BARS, TREAT YOURSELF TO AN ELEGANT DINNER IN THE FIRST FLOOR RESTAURANT, AND LISTEN TO LIVE BANDS AND MUSICIANS DOWNSTAIRS.” The food menu is classic Sicilian.

“We have a top local chef who has trained under Sicilian chefs and who had been working at one of the longest-established restaurants in Malta.

He knows his ingredients and manages to find the greatest tastes in the simplest ingredients. Our speciality is, of course, lobster. We will soon be installing an aquarium with live lobster, fish and seafood, which diners can choose from.”

Electro Lobster Project takes great pride in

sourcing quality ingredients, and this is also reflected in its bar menu.

“The base of our cocktails infuses natural ingredients and spices. We let our bar staff use their creativity to mix unique cocktails.

We also have a bar menu which constantly changes according to the chef’s mood and to what is available. Again, here the focus is freshness and quality: for instance, we use local micro-vegetables grown in Bahrija.”

The design of Electro Lobster Project is classic, eclectic and sensitive to its surroundings. Again, Matthew here focused on quality materials, design and details.

“The name captures it perfectly,” Matthew says.

“Electro refers to the main design element of the space, which is 250 old-style light bulbs. Lobster is our speciality. I put in the word “project” as a reminder to myself that we need to improve every day. This is a project because we are constantly and consistently in pursuit of quality. That will be always on our menu.”

Money / Issue 28 - 45

IN HIS ELEMENT December means parties, dinners and events, which can leave even the most fashionable fella in a tizz. Our advice: keep it simple and chic in neutral colours, warm tones, layering and tailored separates. With your wardrobe sorted now all you have to do is relax and get into the festive spirit!

PHOTOGRAPHY

Nicky Scicluna

STYLING

Kira Drury

HAIR

Ruth

at Dsalon, Swieqi

MODEL

Emmanuel at Models M

// Mexx knit poloneck, €89.99 // Esprit grey coat, €229.00 // // Esprit Grey Trouser, €69.99 //

LOCATION

Camilleri Paris Mode

// Esprit print shirt, €49.99 // Esprit blue trousers, €69.99 // Mexx blazer, €129.99 //

// Celio at Square Deal burgundy sweater, €35.99 // Esprit black trousers, €79.99 // // Ecco at Kings Shoe Shop black boots, €159.90 //

// Mexx grey shirt, €42.95 // Tom Tailor at Square Deal grey blazer, €139.95 // // Armani Jeans black trousers, €150.00 //

// Tommy Hilfiger beige trousers, €109.00 // Mexx teal sweater, €65.00 // Tom Tailor at Square deal blazer, €139.95 // // Carpisa scarf, €9.90 // Carpisa bag, €189.90 // Lotus at Kings Shoe Shop brown boots, €99.90 //

// Armani Jeans white shirt, €120.00 // Tom Tailor at Square Deal cardigan, €39.95 // // Celio at Square Deal black coat, €119.99 // Tom Tailor checked trousers, €59.99 //

Interview GIFTS

THE GIFT OF GIVING

MISSION POSSIBLE The Breitling Chronospace Military electronic multifunction pilot’s chronograph combines a black steel case achieved by a carbon-based treatment with an extremely rugged military-type fabric strap. This makes Breitling’s chronograph the ideal companion on every mission and in the most extreme conditions.

Money unwraps the new year in style.

TWO WHEELS GOOD The Hermes Le Flaneur d’Hermes bicycle is the ultimate eco-fashion statement. Comes in carbon fibre and leather.

WAKE UP AND SMELL IT Developed by Heston Blumenthal for Sage, this bean-to-cup coffee machine grinds, filters and brews a mean cup of dark gold. It has a 15-bar pressure system, frothing arm and sixcup warming tray.

52 - Money / Issue 28

GOGGLE IT Jeantet Aviator retro pilot motorcycle goggles are manufactured by Leon Jeantet in conjunction with British helmet manufacturers Davida. Available in brown leather and in gold, chrome or gunmetal frames.

NECK AND NECK Made in Scotland from soft cashmere, Thom Browne’s colour-blocked scarf keeps your neck warm and stylish.

SMOOTH OPERATOR This handmade men’s shaving set by Gentlemen’s Tonic Mayfair includes a badger-hair brush and a razor with Mach III blade.

LISTENING ENJOYMENT The Grado GS1000I headphones feature dynamic transducers, an eight-conductor cable design and handmade mahogany earpieces for the smoothest of sounds.

STEP ON IT

SOFT SKILLS

These Venezia leather derby shoes by Berluti are crafted according to the rules of luxury. Made from a single piece of calf leather, these derby shoes are hand-coloured and finished with subdued punctured detailing.

Over 40 hours of handcrafted tailoring go into the making of this Lutwyche blazer. The cashmere outer is canvassed with a combination of horsehair and cotton for structure and form.

Money / Issue 28 - 53

Interview NEW FOOD YORK

OUT WITH THE COLD, IN WITH THE FOOD Mona Farrugia celebrates with a festive menu.

Photo by Brian Grech

Photo by Kris Micallef

B

y the time you read this in some airport lounge or while waiting for your meeting, Christmas and New Year may have come and gone. But let us say that they haven't and that you still have time to book one of two available tables we have remaining for both eves. I write this in the beginning of November.

from all over the world and some of them come specifically to Malta to spend the festivities in a country that knows how to celebrate and does it with massive gusto in a period when the weather is still gloriously benign. On Christmas and New Year's Eve, for instance, most of our customers want to sit outside.

of our most lovely customers, let's call her M, who is European and based in Libya and New York, dropped by three years ago when we had no food left and were just dishing out glasses of bubbly and said, “All I need is champagne!� She and her family and close friends have been with us every year since then.

We are lucky enough to have extremely devoted customers at Angelica. In the three years that we have been open, we have attracted people

How can our tables - limited as they are - be booked so quickly? Well, most of our regulars are exactly that - regular - and they quite literally book their table from year to year. One

The pattern is always the same. We do an early sitting for those who want to spend most of their time walking around our fabulous capital city. Then we do a 9pm for our regulars who

54 - Money / Issue 28

Food and travel writer Mona Farrugia runs Angelica in Valletta. www.angelicamalta.com

Photo by Brian Grech

Photo by Brian Grech

Photo by Kris Micallef

turn up, drink, eat, drink some more, chat with everybody else, and do some impromptu dancing. A few minutes to midnight they walk a hundred metres to St George's Square, do the countdown, watch the fireworks, and come back to us for hours of bubbly and sweets.

burning oven, an ode to our culinary tradition.

We still peel, slice and roast kilos of Maltese potatoes every day. We still stuff the calamari with fresh fish and grill them. And we still produce vegetarian roasts that don't make nonmeat eaters feel like second-class citizens.

Our food is not complicated or ludicrously posh. We don't really do trimmings much.

There are no foams or miniature flowers and leaves. We don't do massive turkeys. But we do magnificent eight-hour roasts in a wood-

Most of all though, we have atmosphere.

And that, considering that it is created by a combination of design and the way our amazing customers interact with each other - most deals these days are signed in t-shirts,

Photo by Brian Grech

Photo by Brian Grech

not suits - is the most elusive factor of all.

Combined with live harp from the amazingly named (and talented) Esmeralda, a selection of outstanding fine wines and champagne, rollicking good cheer and our friend M, the festivities at Angelica are memorable for all the right reasons.

Angelica accepts orders for bespoke hampers of Angelica house champagne, wines, Prestat chocolate, Suki teas and organic jams, honey and olive oil.

Money / Issue 28 - 55

Interview GOLF

ALL THE FUN ON THE FAIRWAY

The Royal Malta Golf Club holds the Captains Drive In.

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unday, August 24 was the long awaited day for the Captain and Lady Captain to hold their Drive In at the Royal Malta Golf Club.

To say that it was a warm day had to be the understatement of the year and one could not but feel sorry for the past captains, all wearing jackets and ties.

The hosts arrived in a beautifully restored maroon Morris 1000. Captain Ron Feenan, being the perfect gentleman, helped Lady Captain Doreen Balzan out of the car and the festivities started.

Ron and Doreen arriving for the Captains Drive In.

After the obligatory photos, Ron organised a game

Captains' Committee members 2014/5.

The 2014/5 RMGC Captain Ron Feenan and Lady Captain Doreen Balzan.

Past RMGC captains.

where the past captains had to throw a golf ball over their shoulders and get it to land closest to a line on the ground. The same game was played by the ladies. The ladies prize was won by Tony Bonello, who was heard saying that after 30 years he had managed to find out what is wrong with his game he faces the wrong way and uses golf clubs.

The proceedings then moved to the Putters Inn where drinks and good eats were available throughout the evening.

A disco was in attendance all evening and this was accompanied by an attractive and very good singer. Despite the heat, the guests did not leave the Putters Inn until late evening.

Interview SPOTS

TAKING IT TO EXTREMES Luna Rossa Extreme is the latest fragrance from the Prada stable. The heart of the scent is amber mixed with hot black pepper and zesty bergamot. Thrown into the mix are vanilla, juniper and labdanum. It’s a veritable melting pot of flavours which surprisingly work well together. Exclusively distributed by Ta’ Xbiex Perfumery Limited. For more information call on 2133 1553.

A NIGHT OF WHISKY, WATCHES AND GOOD COMPANY On October 24, 2014, the first live auction event took place in Malta at Vascas in Naxxar, a leading Maltese jewellery retailer and the official agent for Bremont in Malta. Stephen Lee, Area Sales Manager for Bremont, brought watch ‘number seven’ to be auctioned on the night and remained present for the event. The evening, organised by Farsons Beverage Imports Company Limited and Vascas Enterprises Limited, was a great success and raised €7,800 which will go towards

the Malta Community Chest Fund. The organisation, headed by the President of the Republic of Malta, Marie-Louise Coleiro Preca, collects funds for various philanthropic institutions. The organisers of the event will be meeting the President to present the donation in person. The Chivalry watch was auctioned by Pierre Grech Pillow from Obelisk Auctions Limited, following speeches by Mark Vassallo, Co-Director of Vascas, Pierre Stafrace, General Manager for FBIC Limited, and Stephen Lee from Bremont.

LIGHTWEIGHT CHRISTMAS Samsonite Malta at Luqa airport offers quality gifts to suit all budgets, including accessories from €10, business bags from €45, and luggage from €99. In addition, Samsonite Malta is giving away a free travel pillow with every luggage and free parking (one hour) to all paying customers. Clients buying any luggage from the CURV range receive a wind-proof umbrella for free.

Samsonite Malta at Luqa airport opens daily, including Sundays, from 8am till 8pm. And if you are tight on time, Samsonite Malta also offers deliveries. Simply call the 24/7 number on 9996 9172 or 9997 1000. Samsonite Malta is at the arrivals/departures hall, Luqa airport. For more information call on +356 2202 1400 or e-mail samsonitemalta@vfgmalta.com.

Money / Issue 28 - 57

The Bluesman is a Maltese sound engineer working in New York.

Interview NEW YORK

THE BLUESMAN BLOG The Bluesman ends the year the way he started it: with a good look at USA today.

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o the mid-term elections have come and gone. Traditionally the party in power tends to lose out. People may feel that things are not as good as they could be and, no matter the circumstances, the administration bears the brunt of the dissatisfaction.

The majority of voters are not deep thinkers because, in truth, while the economy is not as vibrant as one would wish it to be, it’s creeping in the right direction. As David Letterman commented on his Late Show: “Gas under $3 a gallon.

Unemployment under six per cent. Stock market breaking records every day. No wonder the guy is so unpopular.” It’s funny because it’s true.

The result could have been worse if listening to the pre-election punditry was anything to go by, but now a do-nothing Congress will be joined by a do-nothing Senate when the terms begin next January. When the President pledged to do as much as he can by executive order to get bills like the Immigration Act passed, the Right threw their hands up in horror, forgetting that their own GW signed hundreds himself as if they were the death warrants he signed as Governor of Texas.

Aiding this mid-term swing was the malaise that has afflicted the electorate contributing to the lowest voter turnout in a mid-term since 1942. A low turnout favours the Republicans, although this shouldn’t detract from the milestone of the first black woman Republican elected to Congress from Utah. The exception making the rule that a Seth Meyers quip highlights maybe? As the ex-SNL alum said on his show: “New data found that 87 per cent of Republican voters in the mid-term elections were white. And the other 13 per cent were ‘whiter’.”

Now it’s on to the ‘real’ business for 2016. Hilary Clinton claims she will announce next January whether she’s running but in fact has been running since Bill and Hill were the White House.

“We are the President,” she once exclaimed.

Another name thrown around is Elizabeth Warren, Democrat Senior Senator for Massachusetts. From humble beginnings she’s long been a champion for causes to aid the downtrodden and now has been asked to assume a leadership position within her party. As much as I admire her I don’t think she’s considered viable for 2016, but there’ll be another cycle soon enough.

58 - Money / Issue 28

On the other side of the aisle, establishing himself as a voice of reason among the motley crew of science deniers, warmongers and just plain racists is Rand Paul, son of former Congressman Ron but not as wacky. Paul has shown himself to be able to come out in favour of policies that the hardcore in his party oppose. As with Warren, this is likely not his cycle.

After the debacle in Texas when a patient was sent home from a Dallas hospital only for him to be brought back two days later and diagnosed with Ebola, the scare seems to be over in the US. The miracle in Texas was that of the 50 possible contacts identified as at risk from Thomas Duncan, the unfortunate patient, nobody else died from the disease. Hazmat suits, apartments and planes being disinfected – CNN had a great time adding to the panic. While Governor Christie in New Jersey went for the heavy-handed approach, NY stayed more or less on even keel with a doctor returning from Guinea self-monitoring his temperature and checking in to Bellevue two days later. In those two days he reunited with his girlfriend, went for a run in the park, grabbed some food at a Meatball Shop and gone over to Williamsburg to meet and bowl with friends, leaving a trail of 357 people to be checked.

As Jon Stewart quipped on the Daily Show: “Why is Ebola guy’s life so much more interesting than mine?

The jogging, the meatballs, the bowling. That’s not a patient history, that’s a Tinder profile.”

While we do have a handle on controlling the spread once we identify an infected person, the

next unknown might be on the next plane. The best defence is controlling the disease in West Africa.

I nod to the memory of Christopher Hitchens who died on December 15 three years ago. Hitch had been fighting oesophageal cancer for about a year, or as he liked to say, cancer was fighting him. Having lost a number of good friends over the last three years to cancer, I can only express the hope that just maybe a breakthrough is around the corner.

As I was closing this, the news came out that the Grand Jury verdict in the Ferguson Missouri police shooting was going to be announced this evening. That this is over three and a half months after the event is already a bad sign for how the secret proceedings were conducted and indicates a prosecutor reluctant to bring charges against a white cop shooting an 18-year-old black kid.

Normal Grand Juries, when convened against regular folk, require an assessment of ‘probable cause’ as the lowest bar required by US law. The DA’s office throws in a couple of facts of evidence against the accused, no defence, slam-dunk. It’s over in a few days.

Aaaaand… no indictment. Of course Missouri law actually allows an officer to shoot, even fatally, a fleeing suspect, but the feeling is that open court should have been the venue. Now it’s either up to the feds to bring a case of excessive force or the family to start a civil suit.

RACING IN STYLE. MILLE MIGLIA MILLE MIGLIA CHRONOGRAPH

S PO NSOR S I N C E 1 9 8 8 A N D O FFI CI AL TI ME KE E PE R O F THE M ILLE M IGLIA RAC E