MONEY DECEMBER 2015 ISSUE 34

BUSINESS | LIFESTYLE | DESIGN

THE NEW RESOLUTIONS ISSUE ISSUE 34

FINANCING START-UPS PROTECTING IDEAS INCUBATING INNOVATION

FAIL FAST, FAIL OFTEN TECHNOLOGY: UNSTUCK IN TRAFFIC

CONTENTS

WELCOME Every new year brings with it plans, hopes and dreams. We plan our next career move, hope that we become better individuals, and dream of winning the lottery and retiring to some tropical island.

In the corporate world, the focus is more on succession and continuity. However, that doesn’t mean that businesses don’t plan, hope and dream. On the contrary: innovation, new products and services, and expansion are the lifeblood of any business.

In this issue of Money, we focus on new beginnings.

And nothing encapsulates this theme like start-ups.

Andy Linnas, TakeOff business incubator manager, says that the start-up scene in Malta is brimming with energy. However, we need a steady growth of new projects in order to make the local start-up ecosystem sustainable and competitive. And for this, we need new teams and ideas, investors, incentives and education.

A start-up has to offer a product or service that is useful and beneficial.

Moreover, it has to offer a solution. This is what the Incredible-Web start-up is offering. Jamie Iain Genovese meets with Shaun Grech, Kevin Farrugia and Guillame Pons who, as Incredible-Web, are offering Bumalift, a carpooling solution which aims to tackle Malta’s traffic levels. Maria Attard, associate professor and director of the Institute for Climate Change and Sustainable Development, University of Malta, also explains how technology can play an important role in helping us find transportation solutions.

Start-ups have enthusiasm, drive, ideas and energy. However, they need money. Reuben Buttigieg outlines the potential financing that start-ups have access to.

Apart from finance, there are other elements which a start-up needs to be successful. George Larry Zammit, reporting from the Web Summit in Dublin, outlines what these elements are.

Of course, every start-up aims for success. However, failure is a reality. In fact, nine out of 10 start-ups will fail. Still, Simon Azzopardi argues how failure is not the end of the road – rather, it’s part of the journey. As the start-up mantra says, ‘Fail fast, fail often.’

In this issue of Money, we also discuss Malta’s Recognised Incorporated Cell Companies regime, interview architect Kris Tabone and end the year with a luxurious gifts spread.

Read on and enjoy.

THE ISSUE

DECEMBER 2015

8 ON YOUR MARKS

While still at an early stage, the startup scene in Malta is brimming with energy. However, we need a steady growth of new projects, Andy Linnas, TakeOff business incubator manager, tells Veronica Stivala.

12 THE ROAD TO TECHNOLOGY

How do we come unstuck from this traffic jam? Technology is the answer, Jamie Iain Genovese says.

17 THE MISUNDERSTANDING OF FAILURE

Failure is tough emotionally, financially and socially. It is often seen as an embarrassment, as though a failed business venture defines your future and your capabilities. But in the start-up world, we should see things differently, Simon Azzopardi says.

20 IN SEARCH OF A MALTESE UNICORN

Eight rights can help you find your unicorn. George Larry Zammit reports from the Web Summit in Dublin.

35 GETTING GOOD RETURNS

There are five main elements which make a successful investor, Alexander Mangion says.

40 CONSERVE AND CONTRAST

Various cultures have left us a wealth of architectural diversity. It is our responsibility to conserve it, Kris Tabone says.

42 SOUTH OF THE BORDER

Mexico’s economy has had a good year. But is it time for a fiesta?

54 A BEAUTIFUL YEAR

Money spells out your new year resolutions in luxury and style.

56 PALMS AND SUGAR

Mona Farrugia downgrades to a simple life.

58 WHAT ROUGH BEAST SLOUCHES TOWARDS US

We need to comprehend the true nature of this terrorist beast, the Bluesman says.

23 TRUST AND FUNDS

For a start-up to be successful, it needs to know where it is going and how it will get there, says Reuben Buttigieg.

24 THE RIGHT PLATFORM

Malta’s Recognised Incorporated Cell Companies regime is an opportunity for start-up funds, Dr Richard Bernard says.

Editor Anthony P. Bernard anthony@moneymag.me Consulting Editor Stanley Borg stanley@moneymag.me Design Roderick Peresso Design Studio m. 99258825 Printing Print It Distribution Mailbox Direct Marketing Group

Hand delivered to businesses in Malta, all 5 Star Hotels including their business centres, executive lounges and rooms (where allowed), Maltese Embassies abroad (UK, Rome, Brussels, Moscow and Libya), some Government institutions and all ministries For information regarding promotion and advertising call Tel: 00 356 2134 2155, 2131 4719 Email: hello@moneymag.me

26 LOCAL LAND LINES

Charles Borg and Ron van Maarschalkerweerd have put Malta on the international fashion map. Yet they still keep it local.

COVER CREDITS Photography Nicky Scicluna Styling Luke Engerer Hair Adrian Buhagiar, at Barnuz Barber [m 9940 1980]

Model Nikola at Models M, wearing Esprit polo neck, €49.99 Armani Jeans trousers, €150.00 shot on location at Loop Bar, Valletta

Money is published by BE Communications Ltd, No. 81, Howard Street, Sliema, Malta SLM 1754 All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission. Opinions expressed in Money are not necessarily those of the editor or publisher. All reasonable care is taken to ensure truth and accuracy, but the editor and publishers cannot be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The editor is not responsible for material submitted for consideration.

4 - Money / Issue 34

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START Interview -UPS

ON YOUR MARKS

While still at an early stage, the start-up scene in Malta is brimming with energy.

However, we need a steady growth of new projects, Andy Linnas, TakeOff business incubator manager, tells Veronica Stivala.

C

ompared to mature start-up ecosystems like London, the start-up scene in Malta is still at an early stage. Luckily, there is a lot of energy and interest in building a sustainable and competitive start-up ecosystem on the island.

Andy Linnas, TakeOff business incubator manager at the University of Malta, speaks very highly of some great projects that may become very successful. However, he says, he wishes he could see a steady growth of new projects as well. The solution he offers is that to keep growing, we need to either import start-ups or help to form and generate new teams and ideas.

This solution is one that is not easily solvable, Linnas admits, and one which he describes as a Catch 22 conundrum.

While many stakeholders would like to see investment in the early stages of high-growth companies, they blame lack of capital as the reason why not enough good companies are being set up. On the other hand, if there is a lack of good quality companies, then there is no reason for smart syndicated capital to be set up, even with good incentives.

The way around this, according to Linnas, is education.

Andy Linnas Photo by Jelena Vilt 8 - Money / Issue 34

“More investment must be made in the early stages of entrepreneurship education, and at the ideation phase, coupled with flexible grants like the TakeOff Seed Fund Award so that we will eventually see more good quality projects formed. The rest of the infrastructure – including good mentors, investors and talent attracted to the island – will then catch up.”

This will take time, he says, and the longer we wait the more time it will take.

“This means that what we need is action and patience.”

Linnas elaborates on his ideas on education. Government is a key player and understanding start-ups is important in building a sustainable vision.

“If Malta wants to stay ahead in the new knowledge economy, it has to start thinking and planning in terms of five-, 10- and 20-year perspectives,” he says. Linnas does not mince his words and states how, “There is no room for political games and all the fragmentation should be left behind.”

Next, he says, it is essential to understand the drivers of a high growth technology companies in order to offer start-ups a good legal, social and moral environment so that they will choose Malta. That means a shift of paradigms, the way business is perceived and done, as well as legal frameworks.

Also important is that entrepreneurs think globally and do things in a professional manner.

“In the start-up world, if you are working nine-to-five weekdays and staying local, you have lost the battle even before it has begun.”

“IN THE START-UP WORLD, IF YOU ARE WORKING NINE-TO-FIVE WEEKDAYS AND STAYING LOCAL, YOU HAVE LOST THE BATTLE EVEN BEFORE IT HAS BEGUN.” Malta is lucky to have an environment that is conducive to a successful start-up scene.

Star qualities include the fact that we speak English, have a British past, a Mediterranean climate, good logistics and connectivity to mainland and that life is relatively affordable.

Linnas highlights the many very interesting and experienced expatriates on the island, who have extensive international networks and are open to help. Looking at the negative aspects, Linnas is hopeful that the Maltese Government will update its legislation which will help make high-tech innovative companies even more attractive. Other key ingredients to success include the speeding up of the process to register a company and to set up a bank account. And finally, he says, running an extensive PR campaign to make it easy for local companies to attract international talent, is a must.

Speaking of working towards a successful start-up environment, we discuss the TakeOff business incubator. In short, this is an organisation that helps technology and knowledge-based entrepreneurs and start-ups

transform their ideas and innovations into market- and investor-ready businesses.

“Our role is to become an excellent platform for early stage entrepreneurs to take off. That means that we hope to be able to attract the right teams and provide them with help that is needed,” Linnas says, adding that they also are exposing entrepreneurs to our international networks in order to make it easier for them to enter the foreign market or look for funding.

While the incubator is still in its infancy at just 18 months old, and it is still too early to call any of its cases a success, there are some which Linnas has his eye on. These are namely MightyBox, a digital online games company, Thought3D, a 3D printing company that has developed a glue that solves a big problem of the industry, and Oulala, a fantasy football platform.

Looking to the future, Linnas lists three words that highlight 2016: events, investments and network. Firstly, he expects to have an even bigger Startup Weekend and Disrupt.Startup.Malta events.

Linnas is also expecting the TakeOff Seed Fund Award to continue and that the finally long-promised investment tax scheme will kick in. He also believes that some good investments will soon evolve into more mature start-ups “I would not be surprised if new smaller prototyping funds will be announced,” he says.

And finally he bets on the fact that Malta will slowly get on the international map with some of its start-ups and generate a lot of interest from prominent experts in the field.

“There is a lot to do to fuel the growth of the Maltese ecosystem,” Linnas concludes.

He is optimistic and really hopes the Maltese community will come together and find ways of backing development efforts led by community.

“We have grown it thus far by bootstrapping, but now I see the need for small philanthropic investments to get some serious things done.”

Linnas adds how he is, “Thankful to the hardworking teams at TakeOff and University, to our governmental as well as private partners and allies who make it possible for TakeOff to grow at such a high pace. Without their support and trust it would be impossible to lay foundations to next generation enterprises.”

Money / Issue 34 - 9

START Interview -UPS

RECIPE FOR

SUCCESS

Andy Linnas’s ingredients for a successful start-up.

VISION

Understand the market and have a clear vision of the way the market could be disrupted. Offer a clear value proposition to clients.

TEAM

Your team must have an all-in start-up attitude, where people are comfortable with uncertainty and high risks, are willing to work extra hard, long hours and have an international worldview.

TIMING AND LUCK

It’s hard to strategically plan for the right timing. Being in the right place and at the right time is more of a luck factor.

SALES

Excellency is needed in selling the brand, team and product.

PRODUCT

A product must be developed in an ever quicker and leaner manner with laser sharp focus on the must-have value, and not the nice to have features.

The understanding of value can be learned only through interaction with customers, and not the boardroom.

FUNDING

Access to sufficient funds, so the best talent who can execute the best plans can be hired is key. In Europe, funding will usually be available to experienced teams or once company has proven itself and is not as likely to need external money any more.

WATCH OUT FOR THESE COMMON PITFALLS

LEGAL

FUNDING

The company is not set up for scale and leaves many uncertainties, which is offputting to investors. Company structure, employee contracts, option schemes, and so on have to be well managed.

Giving up too much equity too early or overvaluing your company may end up in down rounds which may kill the whole company.

TEAM

Grand plans are not always easy to fulfill.

If the team fails to deliver a good enough product or service and to target the first set of customers successively, the company will eventually fail.

EXECUTION

If the focus is on the product and execution, without a strong foundation in teamwork or understanding roles and expectations of each other, things will fail when the going gets tough.

IN GOOD TASTE Maldonado Bistro recently celebrated its seventh anniversary with the opening a photo-literary exhibition called ‘Food for Thought’

by Julian Calabrese. The event was supported by Gozo-based craft brewery Lord Chambray. Situated in Victoria, Gozo, Maldonado has established itself as a top eatery specialising in Mediterranean cuisine. For more information visit www.maldonado.com.mt.

10 - Money / Issue 34

TRAFFIC

THE ROAD TO

TECHNOLOGY

How do we come unstuck from this traffic jam? Technology is the answer, Jamie Iain Genovese says.

Photos by Jamie Iain Genovese.

A

ny achievable goal in life will have its obstacles. The amount of obstacles determines the impedance to that achievement and the relative possibility of the achievement of that task.

Driving is no different: the destination is the goal and anything from road structures to the cars in front of you can be an obstacle. Putting aside the outliers – including the reckless, the mind-bendingly slow or the pop-up construction and crane-lift jobs – the biggest contributing factor is the amount of cars on the road. Any incident or blockage is magnified by the amount of cars affected by it.

Roads are a science directly affected by numbers – the number of cars, exits, junctions, and roundabouts. Technology, with numbers in its bones, can help. How? Launched two years ago, Bumalift is a start-up that offers exactly that kind of help. The concept is simple. It’s in the name really. You bum (or get bummed for) a lift and reach your destination through a Google-based API online. Eventually, there will also be an app for iOS and Android.

The team behind Bumalift is called IncredibleWeb. The two co-founders are Shaun Grech, responsible for back-end development, and Kevin Farrugia, who takes care of the front-end development. This year, they were joined by Guillame Pons, content and user experience manager.

12 - Money / Issue 34

The Incredible-Web team

Guillame Pons

Shaun Grech

Pons, although a recent addition, has lived in Malta for seven years and has a background in the gaming industry. He decided to move on in order to work somewhere where he could help out with an interesting concept.

“I found these guys and they welcomed me.

Since then it’s been good,” he says.

It all started when Grech and Farrugia, together with their circle of friends, would carpool to university or whenever they were going out. Once carpooling abroad began to pick up a cultural pace, they posed the fated what-if questions that any industry creative or entrepreneur in Malta will one day ask themselves. “What if we brought this to Malta?” “What if we could build a website? That’s what we’re good at.”

At the time, both Grech and Farrugia were studying IT. They reasoned that they could build the tool themselves to help people carpool.

The idea was to simply introduce drivers to passengers, and the passengers could hitch a ride with the drivers. This would fill an empty seat with company and provide transport.

Bumalift does this using Google API and an algorithm dedicated to matching the best driver to the best passenger after each submits their routes. Once the match has been established, passenger and driver can open a line of communication through Facebook, though eventually this will be integrated into the iOS and Android apps.

Kevin Farrugia

Incredible-Web has, since its inception as a web development company for e-commerce sites, faced one major barrier besides time and resources: culture. While they were already familiar with each other and the group dynamic was solid, and even though there is a supportive demographic amongst those under the age of 35 as well as university students, everyone else seemed to be put off by the idea of getting what could pretty much be a stranger in their car.

Luckily, the team is not so easily dissuaded, and in the last year have focused on a soft launch of Bumalift Schools for certain private schools. This serves as a platform niche that can eventually ease the concept and culture of carpooling into the mainstream market. This Beta version, if you will, has allowed for genuine, largescale feedback to further refine the service.

Eventually this will trickle down to offshoot services for workplaces, events, as well as their main-platform, Bumalift On-Demand.

It is, once again, a matter of numbers. Once this mentality penetrates the mainstream through the niche, there will be this organic change towards less congested roads, using the technology available to direct travellers, to mathematically organise them in the best way possible. Beyond this, there’s the challenge of driver rewards. For those who will drive more often than not, it might be harder to encourage what could really boil down to a selfless act, because there is a strong psychological reason for people to

prefer short-term benefits. Driving yourself without taking on passengers is one such behaviour that promises short-term benefits.

“In the past, we’ve given away pizza, and it worked” Farrugia says.

The issue here is that they can’t offer monetary rewards to the drivers, as that would legally cause issues with taxi classification. The solution was to organise a pizza lottery, where each ride you give is a chance to win a pizza.

“But we want to offer something more consistent, such as some kind of garage or fuel voucher.”

This desire to use and establish technology that can serve to understand travellers, commuters, where they’re going and how to get them there is a fantastic initiative, in this day and age open information is essential. This is why Ben Wellington, a Ph.D computer scientist graduate from NYU and quantitative analyst at Two Sigma, runs his New York statistic and policy blog I Quant NY and champions open data cities. The data allows him analyse policy, implementation and transparency within his city, to talk about what works and what doesn’t with numbers to back them up.

But not all the cool and important research is happening in New York City, nor should it. I meet Prof. Maria Attard. Associate professor and director of the Institute for Climate Change and

Money / Issue 34 - 13

TRAFFIC

Sustainable Development, University of Malta.

Attard read for her Ph.D in London with a focus on the implementation of policy and transport.

Having been involved in projects such as park and ride and the pedestrianisation of some Valletta streets, Prof. Attard has cut her teeth on the nitty gritty of this work.

Nowadays, at the institute, Prof. Attard focuses more on the research elements of the work that she’s been involved in.

“For me it became very clear that there’s a big, missing chunk of research that is needed for many of the decisions we want to make,” she says.

Beyond that, we need to understand the behaviour and desires of travellers.

“People today have a tendency to aspire to travel a lot. This is what we call hyper-mobility,” she says. “Matching those desires, or needs, to the actual activity on land is a major critical infrastructure. For a long time, we did not acknowledge this and so we built where we shouldn’t have, in areas which are not adequately serviced by transport. These include, for instance, supermarkets in areas which are not accessible on foot.

The importance of pedestrian friendly roads cannot be overstated, and Nadur, having recently made its village square a pedestrian zone, understands this. The mentality here is that we want spaces for people, not cars. People don’t hang around parked cars, and children and adults alike can’t fully enjoy any street that’s packed with cars, parked or otherwise. To put it bluntly, the over-abundance of cars in streets is heavily linked to social degradation. This is not the kind of car enthusiasm that encourages motor clubs and Sunday get-togethers, but rather, it’s a form of car obsession where every public space is polluted with people’s vehicles.

It’s a problem for this country, as space is premium. Yet there is hope.

The research demands are increasing exponentially, as is the desire to travel and the needs of our population. If in the past few

Prof. Maria Attard

decades the National Household Travel Survey, conducted every 10 years, was enough, it surely isn’t enough today. With everchanging and ever-faceted populations, we need to use the utmost of our technological advantages to be able to see what exactly we should do with transportation. With voluntary geographical information, mobile apps, and intelligent transportation systems – such as controlled traffic lights, which have existed for decades, are tried and tested, but have never been implemented to direct flow – we could be utilising vast amounts of real-time information in order to make the best decisions possible. It’s simple: people need to travel at a rate that far outpaces the rate at which governments can build roads.

To simplify, at a stage where we’re not even fully utilising research methods to understand travellers and transport it is foolish to say that we need more roads, as increasing capacity will never be as efficient as increasing capability. So we find ourselves seeing this organic shift towards crowdsourced technology apps such as Lift, Waze and Uber, that seek to make our lives and our transport even better. It is, and I can’t say this enough, a matter of numbers. All this, of course, could scarcely be enough to fully discuss the issue, and says nothing about the very imminent future of the autonomous car. Either way, though, the technology is there, and it’s there to be used.

A STRONG PARTNERSHIP Calligaris, the Italian company leader of smart design, has opened a new showroom at Ideacasa, the company’s historical partner. This strengthens the professional relationship between Calligaris’ Italian design brand and Ideacasa, one of Malta’s leading furniture retailer stores.

Mr Calligaris, founder and owner of the Calligaris Group, visited Malta to open the store on November 5, 2015. Inside the large Ideacasa multibrand store is a new showroom with an innovative space dedicated entirely to Calligaris. Beside Malta, this year Calligaris opened stores in Baku, Los Angeles, Santo Domingo and Jerusalem and Flagship Stores in Berlin and London.

14 - Money / Issue 34

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START Interview

Simon Azzopardi is a start-up coach and entrepreneur with a focus on marketing and growth strategies.

-UPS

THE

MISUNDERSTANDING OF FAILURE

Failure is tough emotionally, financially and socially. It is often seen as an embarrassment, as though a failed business venture defines your future and your capabilities. But in the start-up world, we should see things differently, Simon Azzopardi says.

A

t first glance, the reality is stark: nine out of 10 start-ups will fail. This is a fact that every entrepreneur in the start-up world needs to be fully aware of and comfortable with. This means that not only failure is very likely for an entrepreneur, but also that you should have the emotional and psychological readiness for failure. And a lot of this readiness has to do with culture.

First of all though, you must keep in mind that technology-based start-ups have a very different approach to creating businesses than what traditional business school teaches. The ecosystem of start-up founders pushes for a lean approach of selling before building, and typically the building part involves very little money. Although start-ups try to mitigate the multitude of risks, the odds of failure are not in the favour of the start-up.

The cultural differences in how we approach failure is significantly different depending on which ecosystem you are involved in.

If you had to compare the US to Europe, failure is treated astronomically differently.

Failure in the US is celebrated, as if it were a badge of honour of sorts, worn proudly by entrepreneurs. There are even conferences such as FailCon where entrepreneurs talk about their failures and the lessons learnt.

Truth is, such conferences have gone a long way in pushing the culture of accepting failure even though it is, in my opinion, oversold.

In Europe, failure is seen as the end of the road.

Reputation is tarnished and people are labelled.

In fact, we see that entrepreneurs who fail in Europe are less likely to try again or to receive the funding required from investors. Comparing

Money / Issue 34 - 17

START Interview -UPS

“A LESSON LEARNT IS ONLY DEFINED OR ACKNOWLEDGED TO HAVE HAD A POSITIVE EFFECT ONCE SUCCESS IS ACHIEVED.” Secondly, the start-up world needs a reality check. Start-ups and particularly tech entrepreneurs are celebrated today, almost seen as the rock stars of society. Only a few years ago, young people spoke about John Lennon, Jim Morrison and Kurt Cobain. Today we talk about Steve Jobs, Elon Musk and Mark Zuckerberg. Thankfully, such profiles are better celebrated than the Kardashians.

this to the US, we see massive cultural differences where several angel investors and venture capital firms look for a previous failure to ensure that lessons have been learnt and that mistakes will not be repeated.

In my opinion, the concept of failure is misunderstood on both sides. The Americans go too far in celebrating failure, overplaying failure as some form of milestone reached. The celebration should be the lessons learnt and not the failure in itself. And quite frankly, a lesson learnt is only defined or acknowledged to have had a positive effect once success is achieved.

Therefore, failure should only be celebrated in hindsight of success.

At the other end of the spectrum, we have us, the conservative Europeans. Europe does not see any positive whatsoever in failure. Yet if you look at the mantra of start-up thinking,

including the mantra “fail fast, fail often”, there is a clear mismatch in how we think versus how tech entrepreneurs should approach such a high-risk industry.

The result of this tech rock star phenomena is that many people want to be like them, yet without being primed of what being an entrepreneur really is about. We talk about the successful entrepreneur but very few talk about the challenging milestones along the way or the failed nine out of ten that never made it on Forbes. We talk about growing a business, but very few understand the legal implications of bankruptcy.

So what next? What can Europe do to be better entrepreneurs?

Like with most things in this world, solutions to challenges lies in educated conversations. Failure is not the end of the world and could be the last failure before success. Lessons should be celebrated when they take a positive impact on how you do things. And if someone talks about their failure, accept it for what it is, a wrong path taken that does not define that person’s abilities, personalities, or future potential.

The first thing we need to do is talk about failure. Failure is not some taboo but simply a step many entrepreneurs face before success.

I’m not talking about the celebration of failure, but rather the promotion of its discussion without prejudice.

Finally, we should strive to fail better, in terms of being more educated about both the ups and downs of entrepreneurship, without overselling the start-up path, and falling part of an ecosystem that understands the risks entrepreneurs take and can support better decision making.

The ideal is a culture where failure is understood for what it is, nothing more and nothing less. Failure should simply be seen as a path taken that didn’t work, where life lessons are rich and difficulties associated with it need to be overcome as quickly as possible.

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18 - Money / Issue 34

MARKET -ING

IN SEARCH OF A MALTESE UNICORN Eight rights can help you find your unicorn. George Larry Zammit reports from the Web Summit in Dublin.

L

ast November, I had the opportunity to attend the Web Summit in Dublin.

This is a massive trade event which has grown considerably over the past five years. The event welcomed over 40,000 individuals from all over the world, making it a bustling hive of budding entrepreneurs, tech gurus and investors. Everybody was probing around to uncover the next big thing out there: a constant hunt to get their sights on discovering the next unicorn.

While unicorns are mythical creatures, Aileen Lee of Cowboy Ventures popularised the term ‘unicorn’ as a metaphor to classify

20 - Money / Issue 34

potential start-ups which can exceed a valuation of one billion dollars. While the value might seem quite excessive, one startup called Facebook took just three years to achieve its unicorn status. By the time it went public in 2012, it had reached a $100 billion valuation.

This is just to put you into the perspective of the expectations set by venture capitalists and business angels when assessing investment opportunities. They are interested in exciting projects with even more exciting returns. The unicorn is the ultimate investment opportunity. It can offer

bountiful shareholder value, making a gold rush look like pocket change.

Even though unicorn start-ups are so rare, you could feel the energy and vibe at the Web Summit of those attending to achieve and succeed. The event can be quite intimidating when you really put yourself as if you are in a lion’s den. But then again it’s all about perspective. Nothing is stopping you from starting up your business. After all, we all share the same market. We all utilise the same technology. We all have access to knowledge and education. So what is stopping you from becoming the next unicorn?

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

TO THE POWER OF EIGHT THE RIGHT PROPOSITION

First of all it’s quite obvious that whatever you have to offer to the market has to be useful. It has to be beneficial for the end-user to pay up to enjoy your product or service. Many times we get tangled up in the specifics of the tangible product or service. Nobody cares about the product itself. What engages customers is the solution. What is unique about your solution?

How unique is your selling proposition?

THE RIGHT PATENT

Whatever you do, make sure your intellectual property is protected. This can be quite costly but essentially you would be protecting yourself from eventual competitors trying to piggy-back on your success. Do your research on the process to apply for a trademark or patent. There is quite a lot of literature available online at EU institutions such as the European Patent Office (www.epo.org). Don’t take this step lightly. You can be seriously exposed once you break out and go to market.

THE RIGHT CULTURE

Putting it simply, you need to have the right attitude. At the Web Summit you could feel the drive, enthusiasm and hunger.

Entrepreneurship is not a stroll in the park.

Many obstacles will come your way before you finally make that successful break.

There is a lot of motivational content online to help you tread the fine line between success and failure. Winston Churchill summed it up perfectly when he said, “Success consists of going from failure to failure without loss of enthusiasm.”

Buckle up and may the journey begin.

THE RIGHT EXPERTISE

You can’t succeed by being a one-manband. You need help to fulfil your vision.

Delegation is the key to get more things done effectively. Of course who you delegate tasks to is even more important.

Therefore don’t be intimidated by people who you feel are better than you in some or many matters. Getting the right and best talent on your team is essential.

Internal competition can be very healthy as it will empower you and your team to

excel and dare to make the impossible possible. Even though Steve Jobs was constantly depicted as the mastermind of all that happened at Apple, it was also Jobs that said that, “Great things in business are not done by one person but done by a team of people.”

THE RIGHT PARTNERS

You cannot do it alone. You need help for your entrepreneurial venture to take off successfully. Be it financing to logistics to advice, make sure you seek to team up with the right partners who fully believe in the potential of your endeavours.

Partners who are capable of standing by your side not only when the sun shines but even when skies are grey.

Apart from this you need to ensure that your partners can offer you longevity. Partners who add value to the venture. Partners who can facilitate the creation of a new empire. Partners who will make you realise that you could not have succeeded without their contribution to your endeavours.

“INTERNAL COMPETITION CAN BE VERY HEALTHY AS IT WILL EMPOWER YOU AND YOUR TEAM TO EXCEL AND DARE TO MAKE THE IMPOSSIBLE POSSIBLE.” THE RIGHT MARKET

It’s useless having an attractive business model and the luxury of resources if you don’t have the right market. When locals set up a business in Malta for some reason they

forget there is a much bigger market waiting for us beyond our coastline. We tend to set our sights purely on the local market alone.

Forget local. Go global. Whatever your endeavour be ambitious and exist for a global market. Unicorns are global operators. A wide market base gives you surmountable scale. Focus on creating something accessible and relevant for a bigger market than Malta. The world is your market.

THE RIGHT LOCATION

Choosing the location you operate in can be a tricky decision. If we are talking about technology, the major cities around the world are always the ones mainly mentioned. But as my possible bias kicks in, I seriously believe that Malta is a great place to set up your new business. True that as an island we have this tendency to feel inferior and isolated. But realistically Malta has a lot to offer any willing individual planning to start up a new business.

Malta is close to important and emerging markets. Malta has attractive fiscal incentives and a reputable and solid financial system offering opportunities for access to finance. Malta has a dedicated and knowledgeable workforce. Apart from all this Malta enjoys an attractive Mediterranean lifestyle. As rightly pointed out by Prime Minister Joseph Muscat during CHOGM last month, we pride in enjoying 300 days of sunshine throughout the year.

THE RIGHT DREAM

Big ideas start off from dreams. Paddy Cosgrave had a dream. In 2010 he initiated the first Web Summit in Dublin with a meagre attendance of 500 participants coming mainly from the local Irish technology community. In five years that dream grew so big that the Web Summit this year welcomed over 42,000 visitors coming from 134 countries around the world.

The Web Summit has outgrown itself in Dublin and will be moving to Lisbon, Portugal in 2016. This is just one of many examples where there is no harm in dreaming. The sky is the limit. Walt Disney was a master of making dreams a reality. As he so rightly said, “All our dreams come true if we have the courage to pursue them.”

Money / Issue 34 - 21

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Interview FINANCE

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.

TRUSTAND FUNDS For a start-up to be successful, it needs to know where it is going and how it will get there, says Reuben Buttigieg.

O

ne of the major challenges that start-ups face is having access to the necessary finance in order to turn their ideas into fruition.

The problem is that most start-ups do not kick off their venture with adequate financing requirements. This leads to these enterprises having financial difficulties soon after their launch. In fact, the data available suggests that 66 per cent of startups will fail during the first three years.

The so-called golden rules of new venture management and its pitfalls have been researched extensively. Among other things these are the rules that many times are not followed. The first rule is the need for a realistic and detailed business plan. The second is managing cash flow as opposed to being content to simply monitor sales turnover or the number of new potential prospects. The third is selecting, recruiting and motivating the right people. And finally, new ventures should listen to customers and cater for their particular requirements.

The length and time of planning and assessment in pre-start-up phase is crucial.

The type and nature of finance required will be a major determinant. There are various sources that start-ups can tap into, including personal finances, family, business angels, venture capital and bank facilities.

The choice of financing depends on the particular circumstances of the person or persons and on the kind of business that is being formed. The type of financing will also determine the length of time needed to launch the business.

Possibly personal finances are the least challenging in this sense. Family will require convincing period which may or may not take a lot of time. However, when it comes to business angels, then the process becomes longer as there is a search and matching process involved.

If you opt for venture capital, then there are various processes to go through

including but not limited to a due diligence.

Banking finance will take its time too.

Most start-ups in Malta rely on family financing and banking facilities. The process of seeking finance through a bank can be an eye-opener. For instance, many startups may see a business plan as an added cost and in fact many do not formalise it.

The truth is that entrepreneurs would have thought of many issues but would have not analysed them in the right context or formalised them in any manner. Banks requiring a business plan actually assists the entrepreneur in having some form of plan.

A business plan should not be drafted by an accountant to satisfy the bank request.

Rather, it should be an instrument of discussion whereby the accountant discusses with the businessperson all aspects of the business. Through this discussion, a plan is issued for the business.

“WITH A BUSINESS, YOU NEED THE SAME ELEMENTS: A DESTINATION, THE DIFFERENT WAYS WE COULD ARRIVE THERE, AND THE ROUTE WE CHOOSE TO TAKE.�

When you initiate a journey you normally know your destination and also the way you will take to arrive there. You will probably know different routes to arrive in the same place as if you encounter traffic you will change route. Today there is a probability that you have a GPS on your mobile or a map in the car. With a business, you need the same elements: a destination, the different ways we could arrive there, and the route we choose to take. It is only when we have this

information that we will be able to assess the means of transport we are going to choose and therefore the cost of arriving.

When we have this information in hand, then we may analyse the various options of how to finance our journey and the most convenient one in the circumstances.

You also need to take also into consideration the enduring issue that small firms, in particular start-ups, are discriminated against in their efforts to raise capital.

There are ways and means how to deal with these matters too. It is a question of analysis, planning and communicating.

As soon as the necessary capital is raised then other finance matters come up.

Start-ups need special skills in managing working capital. It is very easy and natural that an entrepreneur gets involved in selling and does not give the adequate consideration to working capital matters.

Cash is the lifeblood of any business and if not managed properly, irrespective of the level of sales, the business will die.

Money / Issue 34 - 23

Interview LAW

RIGHT PLATFORM THE

Malta’s Recognised Incorporated Cell Companies regime is an opportunity for start-up funds, Dr Richard Bernard says.

A

strategic combination of a series of initiatives and programmes geared towards incentivising start-up business coupled with Malta’s solid reputation as a stable eurozone economy and a generally business-friendly and tax-efficient jurisdiction, has effectively solidified Malta’s significance as a serious contender in the global start-up network. Accordingly, the local start-up ecosystem has experienced considerable growth over the past years.

In the infinitely complex and increasingly rule-laden world of hedge funds, Malta’s Professional Investor Fund regime – which offers a light-touch, more flexible regulatory regime than other EU-wide regulation, based on the participating investors’ wealth and experience – has effectively secured the survival of start-ups. These start-ups would otherwise have been overwhelmed by the regulatory load and related costs inherent in compliance with fund structures other than the PIF. This start-up friendly regime is bolstered by the cellular concept accommodated under the Companies Act (Recognised Incorporated Cell Companies) Regulations which introduced a platform type of model comprising of a recognised incorporated cell company providing standardised administrative services to any number of incorporated cells, each duly licensed as a collective investment scheme or fund, which administrative services largely consist of routine contractual matters and start-up support.

Accordingly, while the RICC platform structure could also be beneficial for larger funds, it is particularly relevant to start-up funds to the extent that it offers an incubation style set-up, whereby the RICC provides any or all of the following standardised start-up services to the ICs established within its platform structure:

24 - Money / Issue 34

provision of administrative services related to the establishment of incorporated cells or funds; procurement of external service providers to the fund and coordination of regulatory approval of any changes thereto; negotiation of service provision agreements and changes thereto; submission to the Malta Financial Services Authority of any changes or amendments to model agreements and submission of any new model agreements

negotiated with service providers for the approval of the MFSA; signature of tripartite agreements between service providers, the RICC and an IC based on pre-approved model agreements; standardisation of any other documentation to be used by ICs or funds; approval and joint signature of any applications for licences (including variations, extensions

Dr Richard Bernard is a Managing Partner at Be. Legal Advocates and is primarily responsible for the firm’s financial services and corporate and commercial law practice.

thereof) to be submitted by or on behalf of ICs which are in the course of being formed; provision of written declarations identifying any changes to model agreements already submitted to the MFSA; and provision of ancillary services as may be required by the IC or fund, subject in all cases to MFSA approval.

A key advantage of a RICC platform is the standardisation of fund documents, such that functionary agreements and regulatory consents in respect of standardised fund documentation will be in place upon the setting up of the RICC platform structure and accordingly a new cell or fund can be added at a fraction of the time that would be required were the fund to be established from scratch as a stand-alone entity.

Essentially, a RICC is a limited liability company which must obtain the appropriate recognition to act as such from the MFSA in terms of article 9A of the Investment Services Act and which is established for the sole purpose of providing any of the above-mentioned administrative services and start-up support to collective investment schemes or funds.

incorporated by virtue of a resolution of the RICC’s board of directors (a cell resolution) sanctioning the provisions of the memorandum and articles of association of the IC and the execution thereof by the RICC. In turn, an IC of a RICC is constituted as a collective investment scheme in its own right and requires a licence to operate as such from the MFSA.

The RICC framework is structured to allow ICs to migrate in and out of the RICC they share with other ICs and either relocate to another RICC (by means of a relocation agreement setting out the terms upon which the said relocation is to take place) or establish themselves as separate independent schemes.

Notably, from a legal and asset planning perspective, an IC is endowed with separate legal personality and is not a subsidiary of its RICC solely by virtue of the fact of it being an incorporated cell of its RICC. The key legal principle in this respect is that assets and liabilities of each IC are distinct and ring fenced from those of other ICs within the platform and the RICC itself such that the assets of each individual IC will not be available to the creditors of any other IC.

The RICC model represents a manifestation of the Maltese legislator’s continued efforts in the further development of a modern and coherent legal framework designed to accommodate a range of various fund structures, including start-up funds (which are not afforded such incentives in other EU jurisdictions), and effectively serves to bolster Malta’s position as a European financial services hub and an ideal environment to launch your business.

Once duly authorised, establishing an IC or a fund within a RICC’s platform structure is relatively straightforward. A new IC may be

“IT IS PARTICULARLY RELEVANT TO START-UP FUNDS TO THE EXTENT THAT IT OFFERS AN INCUBATION STYLE SET-UP”

KE Y ADVANTAGES OF MALTA’ S R ICC R EGIM E

Complete segregation of ICs and ring fencing of assets

Recognition of mixed RICC platforms which may incorporate and service any type of fund (retail UCITS, retail non-UCITS, professional investor funds and/or alternative investor funds)

Possibility of ICs to establish segregated sub-funds

Possibility for the RICC to generate revenue streams from a platform fee

Cross-IC investment and intra-IC contracting permitted

Comprehensive relocation or migration provisions

Efficiency and regulatory expediency afforded by the standardisation of fund documents

This article contains general information only and neither Be. Legal Advocates nor any of its affiliate/s, partner/s and/ or associate/s is/ are, by means of this publication, rendering professional legal advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult with your professional advisors.

Money / Issue 34 - 25

Interview FASHION

LOCAL

Charles Borg and Ron van Maarschalkerweerd have put Malta on the international fashion map. Yet they still keep it local.

LAND LINES

Charles Borg and Ron van Maarschalkerweerd .

What do you think are the elements that helped you establish yourself as Malta’s leading fashion house?

We really love what we do and have always worked very hard to develop our brand and fashion house. Even though it hasn’t always been easy, we were always determined to take Maltese fashion to a new level.

Seasonal innovation is the lifeblood of fashion.

Yet which elements remain a constant?

In fashion, you have to innovate every season.

26 - Money / Issue 34

However, it is also important to have a recognisable aesthetic and stay true to who you are as a designer and fashion house.

Customers need to know what you represent as a brand and what your values are. Although these may gradually change over a longer period of time, it is important that these remain constant.

You have made symbols of Maltese culture an integral part of your design: how

important is this sense of belonging?

Throughout the years, we have always enjoyed designing from a Mediterranean point of view. Maltese culture has always inspired us and we have taken it in our stride to bring out certain aspects of culture, architecture and tradition in our collections. For us it is important to show that certain cultural aspects that we might take for granted are worthy of exploring. Moreover, local symbols can have an international appeal.

SOME OF THE DESIGNS “FROM OUR NEW SS16

COLLECTION, WHICH WAS SHOWCASED IN NEW YORK LAST SEPTEMBER, WERE PICKED UP BY PANTONE.

“

Some of the designs from our new SS16 collection, which was showcased in New York last September, were picked up by Pantone, one of the word’s leading colour companies.

These designs, which featured in the Pantone Trend Forecast for 2016, included the yellow dresses inspired by our luzzu.

This really proves that our Maltese culture and surroundings evoke that sense of belonging. As Pantone stated, “It takes the wearer back to a sunnier, happier place.”

You recently launched your bag collection.

What inspired you to start designing bags?

We had briefly experimented with bag design back in 2008, when we launched a small collection of leather bags with our SS08 collection. A couple of years passed until we really concentrated on developing a line of leather handbags and other accessories.

For us, bags are an important addition to our product range. Accessories are also essential to put any well-balanced outfit together and they are a fun and easy way for a customer to get to know a brand.

Are these bags also manufactured locally?

For the bag production we work with a local manufacturer. Whenever possible we prefer to produce locally and we strive to help certain trades to remain commercially viable. Unfortunately, many local production facilities have had to close down, so it is not always possible to source production locally.

Despite your success abroad, you continue to use Malta as your base. Why? We love living in Malta and we will continue to use it as our base. Although being on an island sometimes has its disadvantages, Malta’s central location makes it easy to travel with many destinations only one flight away. Moreover, many business contacts and transactions can be made online, so location becomes less important.

Charles&Ron new flagship store in Valletta.

What are your plans for 2016?

We have just opened our new flagship store in Republic Street, Valletta where our ready to wear, bags and accessory collections will be available. We have also just launched our new Charles & Ron Denim line.

For 2016 we look forward to showing our new collections during several international fashion weeks. We also won the Mediterranean Fashion Prize in 2015, so we will also be part of the Marseille Fashion Biennale supported by the House of Dior and Chanel among others.

Money / Issue 34 - 27

TECHInterview NOLOGY

ENABLING INNOVATION

With cloud services, IT has been democratised and applications are accessible to all, Jack Mizzi, BMIT Limited Chief Marketing Officer, says.

What role does innovation play in an economy?

The success of an economy and how much investment such an economy puts in innovation are strongly correlated. Historically it has been proven that unless there is continuous innovation, then economic growth is usually stifled.

Since the advent of affordable and accessible technology, innovation stopped being the exclusive realm of well-funded organisations, and anyone with a good idea can now access tools and resources to realise such idea.

A lot of innovation is taking place in the digital world. The majority of start-ups, for instance, develop and offer digital solutions. How do you support such innovation?

Companies like BMIT manage and make available the core infrastructure behind such activity. Typically, a start-up would access cloudbased resources in order to manage its costs better, as well as scale up and down depending on requirements. A key service in this context would be cloud infrastructure and servers since they provide on-demand and pay-as-you-go computing resources. We have a number of customers who use BMIT’s cloud infrastructure services to develop applications, put them live, and then scale them up as required.

As start-ups transition into more established organisations, the requirements tend to become more comprehensive. We help organisations in managing their IT infrastructures more effectively, assist in securing their data better, and provide data centre type services when required. These include providing hosting, colocation and disaster recovery solutions, which are must-haves in any organisation working in the digital, online sphere.

A connected world means that start-ups and businesses are no longer limited to the local market. How do you support businesses in expanding their market?

At the core of our offering, we provide customers with the ability to have

uninterrupted, 24x7, online presence. We achieve this through a mix of services and technologies – therefore our customers’ sites and applications are accessible from anywhere, anytime.

Although in such context location becomes irrelevant, we appreciate that some customers might have the need to be physically closer to their target customer base. In this regard, we have made substantial investments in order to build a high capacity private network and set up data centre presence in Germany and Italy. A customer based in Malta and requiring physical presence in Europe can now do so seamlessly and easily through our exclusive network.

“THERE IS SOMETIMES THE MISCONCEPTION THAT BY OUTSOURCING, AN ORGANISATION LOSES CONTROL OVER ITS IT. THIS IS NOT THE CASE.” How do cloud services help business growth?

Different cloud services provide different benefits, but the over-arching benefit is the ease of access to technology and the subscriptionbased and pay-as-you-go payment model.

A good chunk of business software and applications, technologies and IT infrastructure were, for many years, only accessible to larger businesses. The reasons for this were usually the high capex involved, the annual maintenance fees that needed to be paid, and sometimes also the cost of the IT infrastructure on which such applications ran. With cloud services, IT has been democratised and applications are accessible to all. Moreover, with less money spent on IT, businesses can channel their financial resources on growing their business.

Jack Mizzi

While IT is a great enabler, it can also be a burden on businesses. Is outsourcing the right solution?

Outsourcing is definitely the right solution for many situations, but no one size fits all.

For example, at BMIT, we have a number of customers who have entrusted us with completely managing their IT infrastructure.

These are typically businesses with no internal IT teams, and who make a strategic decision to focus on their business and outsource support functions such as IT. Other organisations outsource only part of their IT requirements. Typically, they maintain in-house management of critical IT applications, and outsource other applications and IT infrastructure to companies like ours.

There is sometimes the misconception that by outsourcing, an organisation loses control over its IT. This is not the case. Customers still maintain full control and decision-making over any outsourced services, and the outsourced organisation would be bound with expected deliverables, response times and service levels, as applicable.

Data is the life source of most businesses.

How do you help businesses maintain this rich resource in a secure manner?

I agree that data is the life source of most businesses. Consequently data loss can be catastrophic. At BMIT we provide a wide range of services that help customers secure their data, including: affordable cloud backup solutions, which allow customers to back up their desktop computers, servers and virtual machine to one of our data centres; several hosting options within our data centres, including access to virtual hosting, virtual servers and cloud storage services; a range of hybrid and private cloud solutions, fully personalised and customised to specific requirements; and range of tools to help not just in data storage but also in ensuring business continuity in case of disaster. These include storage and replication across multiple sites, access to expert support teams, and other related services.

Money / Issue 34 - 29

Interview PROPERTY

THE RIGHT

Zanzi isn’t just about sales, it’s about adding value to the industry through innovation and the application of correct business ethics, says Steve Mercieca founder of Quicklets and Zanzi Homes.

LOCATION

State of the art offices designed by Karl Francalanza Architects.

Most people will probably ask you: what does ‘Zanzi’ mean?

Coming up with the name for the brand was a huge challenge. First we were thinking of going for QuickSales but after a lot of consideration we decided that each of our brands should narrow their focus and not opt for line extension. This means that while both companies apply the same values, the companies themselves and their applicable service offerings are separate.

When we decided that we needed a new name, we started to do some market research.

Other real estate brokerage brands have great names and we knew that our name, besides embracing our culture and possibly having a personal touch, had to be strong. We also had the logo ready months before the name.

The inspiration came from my soul mate,

30 - Money / Issue 34

whose name is Zanna. After going ahead with the name and buying the domain, one of our team members searched it online – amazingly enough, ‘zanzi’ is a descriptive word for extreme bouts of happiness and energy you may be feeling. It can also be used to describe a place you perceive to be extremely exciting and fun. Awesome.

How has the growth of Quicklets fuelled the launch of Zanzi?

It has certainly given us the ambition and drive to take on this new market.

We believe that our vision will excel our growth within this new sector. Quicklets has also given us the experience in marketing, recruiting and quality to be able to launch a new brand without facing the hurdles we had to overcome throughout the growth of Quicklets. We also have

Steve Mercieca

just about their property or what their friends suggest about their property needs but about what they really want.

Listing properties is one of my favourite parts of my role. Getting the opportunity to see such amazing homes all over our lovely island is the biggest blessing you could ask for in your career.

Once you’ve mastered those two parts and truly love both of them, then a simple touch of creative marketing and positive negotiating and everyone’s smiling.

What role does technology play in your service offering?

In today’s fast-paced world, technology plays an important role in any business. Our main focus on technology is set at our back-end system. This makes our team more efficient and comfortable. The more the system can do for the team, the more automation we can add to it, the more time they have to spend focusing on their business. It’s the same with the end user from a customer point of view.

The more efficient our tech is, the more they knock on our door. Our tech is like that pinch of salt that ties everything together.

“IT’S ABOUT CONSCIOUS BUSINESS, BEING PROACTIVE, GENUINE AND DRIVEN.” a vast network of Virtual Agents who are contributing to our new project.

What gap in the market will Zanzi address?

Our main focus is going to be the people who purchase and sell direct. We want to offer a service that attracts both parties to work through an agency. We believe that the experience a person encounters when purchasing or selling a home is a pleasant journey. Our team, values and system are driven and engineered to focus on this market segment. As Polly Higgins would say “New stories never begin in the heart of establishment – they start in the margins then grow and grow.” That’s a quote from a book referred to me by Yaz from Grassy Hopper.

Real estate agents follow a largely similar business model. How does your service offering differ?

We specialise in having fun and are constantly training our team in self-development.

Whichever industry you choose, it’s really not

only about the industry itself or your business model – ultimately it’s about the team and working environment. It’s about conscious business, being proactive, genuine and driven.

So when creating our brand and business model we didn’t focus on real estate – rather, we focused on creating a sense of freedom, both for our team and our customers. We don’t focus on money – rather, we focus on adding value to the industry. If you’re interested in joining our team today, send an e-mail to hello@zanzihomes.com. It’s like learning how to fly. It’s awesome, like a jet pack with unlimited fuel.

There are two main ingredients to property negotiating: people and listings. How do you plan to make these the best possible?

Those are two of the things I love the most: people and listings. I keep telling my team how life is all about human interaction. We spend so much time around each other. All we need to do is interact with people and figure out what they really want, listen to them, not

You talk about ethical property negotiating.

How do you plan to achieve this?

For us this boils down to acceptance. Are the leaders of the company ready to accept as their team members’ decisions. This, from day one, both within Quicklets and Zanzi has been our one and only rule. You can what you deserve, even when no one’s looking.

It’s the way the universe works. We want to build international franchising models in both letting and sales, we are thinking long-term, and besides what I actually believe, with today’s social media business can’t afford to be unethical, people speak, people share, people know.

On December 23, we will also be launching our specially designed and highly finished offices. Designed by architect Karl Francalanza, these offices are situated on the ground floor of Standard House in St Julian’s.

From Quicklets to Zanzi – how has the journey been?

As much as they are two separate brands, the people involved in Quicklets are all joining the vision along the way. We are specialists and team members focus on specific areas.

Currently we have a lot of opportunities opening up and we look forward to welcoming new people from different walks of life.

As much as there is going on, it’s all feeling pretty much the same: exciting, thrilling and most of all, it is feeding this inner drive I have to always get up and do something.

Money / Issue 34 - 31

INNOVATION

TECHNOLOGY, COMMUNICATIONS AND INNOVATION

Innovation gives a country and its businesses an edge, Bernard Agius, Business and Innovation Development Manager at the Malta Communications Authority, says.

What is innovation and why is it so important for the MCA? If you had to take a closer look at Malta’s recent economic successes, in particular those in the remote gaming and financial sector, you would immediately recognise the importance of the underlying communications infrastructure. Over the past years the MCA has been instrumental in securing infrastructural and regulatory readiness for such economic opportunities to materialise.

Looking forward, despite the limitations brought about by Malta’s size and geographic realities, its infrastructure compares well with that of mainland European business hubs. However, we must make sure that Malta maintains a high level of preparedness for whatever development or disruption hits us next.

its strength. This is the space, this window of opportunities, where major developments are taking place and indeed where we need to act fastest.

Nevertheless, it is imperative to stress that technology is merely an enabler for innovation.

Innovation should not be taken as the product of technology but rather, a derivate of bold and nimble business decisions that give the country and its businesses that edge.

The MCA’s remit and work therefore goes beyond securing readiness. It actively looks towards the future and caters for emerging trends through foresight, policy formulation, engagement with the industry and educational activities for the community at large, all this with a view to instigating innovation.

The innovation arm is a recent addition to the MCA? Why now?

From its inception in 2001, the MCA’s mandate has been to develop Malta’s economic potential through ICT-enabled innovation.

32 - Money / Issue 34

However, these are unprecedented times, which are shaped by technological advancements and policy development.

Markets are converging, and in doing so, are bringing on a new wave of disruption for the industry. Being a small island state in the middle of such turmoil can be potentially dangerous – however I strongly feel that such disruption can also bring with it great opportunities for those who dare wisely. Malta’s nimbleness has always been

It is also imperative to highlight the extent to which boundaries between traditional, clearly defined sectors have been blurred.

Uber, for example, has merged transport with technology, Spotify has merged music with technology, and Airbnb has done the same in tourism. The list goes on.

The interesting part is that disruption is also hitting regulatory regimes. Having the necessary foresight is essential to ensure that we remain abreast of emerging developments and reinvent ourselves to serve the needs of tomorrow’s economy.

Innovation has become a buzzword with many public entities all claiming to be running their own innovation programmes.

“SUCH DISRUPTION CAN ALSO BRING WITH IT GREAT OPPORTUNITIES FOR THOSE WHO DARE WISELY.”

and processes. There is no such thing as exclusivity in innovation. Being innovative means being a leader. Every organisation must be a leader in its tiny slice of ownership, being it business, policy, appeal or whatever the organisation stands for. Not being innovative means you have lost leadership and consequently, your purpose.

Where does the MCA fit in this? And do you feel that work on this front risks fragmentation?

I think that the MCA is one among many other entities making a contribution towards innovation at a national level.

What is MCA’s role in furthering innovation in Malta?

We are active in a number of areas. First and most importantly, we are vigilant in our efforts to remain abreast of developments and opportunities that are emerging as a result of policy and market developments. Our continuous contact with the industry players and our consistent engagement in policy formulation at both the EU and other fora such as the International Telecommunications Union place us in a very strategic position to identify opportunities at an early stage.

The Digital Single Market, for instance, is a proposal intended to stimulate cross-border activity specifically in the context of novel digital channels. There are big opportunities here, once this proposal is implemented, brought into force and adopted.

First we must appreciate that the role of any public entity in this regard is limited to one that facilitates innovation and growth. It is the private sector that ultimately brings about real economic growth. It is our duty as an Authority to work with others to ensure that the right environment, which is conducive to economic growth and innovation, prevails. Indeed our remit and expertise has its confines, but in a converging environment, we must learn to work jointly with others and share expertise if we are to build holistic policy and give Malta the edge over other countries.

On the other hand, we all hope that local organisations, public or private, strive to be innovative and to harness innovative thinking

In my view, having many entities working on innovation is a sign of maturity, especially when such innovation leads to changes in the way we interact with each other and with our clients, openness in sharing knowledge and an effort to synergise our work.

We also remain highly engaged in the development of policy on the core technological fronts such as electronic communications and satellite services where

our competences and assets can also lead to opportunities. We are also becoming more engaged on new promising fronts that build and revolutionise eCommerce such as Internet of Things and Fintech, to mention just two trending fronts.

Finally, an area which is relatively new for the MCA, albeit one where we can contribute strongly, is in instilling homegrown innovation.

Remote gaming can be attributed to Malta’s ability to attract global players to establish operations in Malta. However, while such successes must be repeated, Malta seems limited in developing homegrown tech enterprise geared for global impact. This can be mostly attributed to a general risk-aversive mindset.

I am not saying that entrepreneurship is inexistent in Malta, far from it. We have had many success stories where local companies have achieved great business results beyond our shores. However, I tend to agree with others working in this field, that many Maltese youths are completely unfamiliar with the ‘buzz’ behind enterprise that comprises risk taking, creative thinking, aiming high and perseverance. The cure is education.

In just a few months we have found ourselves collaborating with the University, schools, public entities, NGOs and the private sector.

This year we organised two very successful events, namely Disrupt Startup Malta with over 100 tech start-ups participating, and Budding Rockstars where over 150 promising students got a first glimpse at tech-business.

We have also actively supported, and will continue to support, many activities led by other stakeholders.

As I said, it is the private enterprise that ultimately grows the economy. This is why homegrown tech start-ups will have a central role to play in an increasingly globalised digital economy.

Money / Issue 34 - 33

Visit one of our outlets or call us anytime on 21 422 999 Brown’s Pharma Limited www.brownspharmacy.eu

A

MARKET Interview REPORT

Licensed stockbroker Alexander Mangion is Managing Director at MPM Capital Investments since 2009. The company is authorised by the Malta Financial Services Authority (MFSA) to provide financial services in Malta and holds a Category 2 licence.

He holds a Bachelor of Commerce (Hons) degree in Banking & Finance (University of Malta) and a Master of Finance & Investments (University of Nottingham.)

GETTING GOOD

RETURNS

There are five main elements which make a successful investor, Alexander Mangion says.

Y

ou work hard for your money. You strive to make the best possible returns on your savings. However, you are not the only one to do so. All of us aim to make substantial returns on our savings.

During the past years, it has become the norm to trade online. Some do so in order to avoid stockbroking fees, while others think it’s easy to invest and earn money.

If you are a good enough trader, you can make profits. However, this is not easy.

There are five main elements that are key towards success in investing via an online trading platform.

The first is discipline. Every investor has to be disciplined in the market. If you can’t follow your own rules and stick to a strategy, you may find yourself laying dead in the battlefield faster than you know. Discipline is the most important trait of a successful investor because the market is full of temptations to make dumb mistakes day in day out.

The second is patience. Act too quickly and you may just get burned. Some traders will step back and wait months before making a trade. Why? Because they are patient hunters looking for the right moment to strike. You can’t rush art, and especially when day trading, every penny truly makes a difference.

The third is dedication. If you aren’t dedicated to the market, you may as well go work at a quickie mart. Some of the best managers are up at 4:30am, if not earlier, to start their day and map out potential plays. I don’t care how late you stayed up last night, if Microsoft announces they are buying Yahoo (which rumours spread last week), you have perhaps a several minute window (if you are lucky) to buy in before value has completely been realised.

The fourth is guts. When you bet nine months in advance that Apple is going to take off and you place $100 million on the table, you have

guts. Some of the best traders in the world have taken bets that no one else saw or agreed with, but had the last laugh in the end. And you think your mom is ruthless. If hedge funds find out your firm is on the edge of crumbling and you are holding a few big positions, watch out.

“PROBABLY THE X FACTOR OF SUCCESSFUL TRADING, PERSEVERANCE IS CRITICAL TO SUCCESS BECAUSE, LET’S FACE IT, NOT EVERYTHING IS GOING TO GO YOUR WAY.” And finally, you need perseverance. Probably the X factor of successful trading, perseverance is critical to success because, let’s face it, not everything is going to go your way. No one cares that you have 30 years’ experience behind you – without a solid track record you are a nobody. But, the more you continue to educate yourself and learn the little tricks of the trade, the more you are going to make it in the long run. The best part of the stock market is that history has shown the game repeats itself – you may lose your rear today, but in three months when the same trade comes around, you will know what to do.

These five elements are vital in achieving success when trading online. However, these may not be enough. Here are some further recommendations for you.

Make sure that you always use a stop loss, which is a predetermined amount of risk that a trader is willing to accept with each trade. The stop loss can be either a dollar amount or percentage, but either way it limits the trader’s exposure during a trade. Using a stop loss can take some of the emotion out of trading, since we know that we will only lose X amount on any given trade.

Ignoring a stop loss, even if it leads to a winning trade, is bad practice. Exiting with a stop loss, and thereby having a losing trade, is still good trading if it falls within the trading plan’s rules. While the preference is to exit all trades with a profit, it is not realistic. Using a protective stop loss helps ensure that our losses and risk are limited.

You should know when to stop trading. There are two reasons to stop trading: an ineffective trading plan and an ineffective trader.

An ineffective trading plan shows much greater losses than anticipated in historical testing. Markets may have changed, volatility within a certain trading instrument may have lessened, or the trading plan simply is not performing as well as expected. You will benefit by remaining unemotional and businesslike.

It might be time to re-evaluate the trading plan and make a few changes, or to start over with a new trading plan. An unsuccessful trading plan is a problem that needs to be solved. It is not necessarily the end of the trading business.

An ineffective trader is one who is unable to follow a trading plan. External stressors, poor habits and lack of physical activity can all contribute to this problem. A trader who is not in peak condition for trading should consider a break to deal with any personal problems, be it health or stress or anything else that prohibits the trader from being effective.

After any difficulties and challenges have been dealt with, the trader can resume.

Money / Issue 34 - 35

Interview INTERVIEW

RESPECTING O U R PA S T

REDEFINING OUR FUTURE

Passion is the jewel in our crown, Karl Micallef, Classic Group Limited Director, says.

You have been firmly established as a group for many years. How do you continue to build on tradition while encouraging innovation?

The Classic Group is a relatively young operation and the company itself has only been established since 1992, with no family history in the background. We consider ourselves the new kids on the block and that is our mindset till today.

In the jewellery scene in Malta, many jewellery companies have had the benefit of a longstanding family name behind them. Initially this made it very difficult for us to penetrate the market. I must admit that it was a very strong barrier to entry and it is only thanks to our innovative approach to the market have we managed to earn the respect and trust that is needed to succeed and become the company that we are today.

Our company has been built on bringing to Malta the finest watch and jewellery brands in the world. These brands have become legendary thanks to the innovations they have created and continue to create, each in its own unique way.

Today in the jewellery world, tradition and innovation have often been a cause of very long boardroom discussions as they often have a contrary or conflicting outcome. I like to think of it as the so called left-brain and right-brain and both are extremely important.

We believe that tradition has to be at the base of our offer and every single piece that we sell is carefully selected to respect this value even

36 - Money / Issue 34

in this ever-changing environment. However we are not afraid of change – in fact, we welcome it. We appreciate that our customers evolve and we are excited to encourage innovation in all aspects of the organisation.

What synergies exist between the different companies within Classic Group?

At the core of all that we do, we have one philosophy: we only operate in what we truly understand and can be experts in. We firmly believe in specialisation and whatever we do as an operation must fit with our core values and purpose.

Classic Group today is a retail set-up that specialises in quality value products. We pride ourselves in helping people celebrate life’s most precious moments. That is what we do all the time and we love it.

We start from selling a graduation gift to a new graduate or an engagement ring for your perfect partner to a traditional watch for your 50th birthday or even a Pandora Charm which a young boy can buy for his mother as a gift for Mother’s Day. This is how we synergise at Classic Group. We believe in creating a lifelong journey for our customers.

How have you enhanced your portfolio in recent years?

Our strategy is to work with high-end and high quality jewellery operations with a strong emphasis on leading watch and jewellery brands, aiming to satisfy and exceed the needs of the highly sophisticated local and foreign clientele.

Diamonds International at Pjazza Tigne was inaugurated in December of last year and during this year we have worked on establishing the location as a destination outlet for the discerning local and tourist clientele. This year, we have had two major enhancements to our operation with the latest being a first for the island. We have started operating three Pandora Concept Stores in Valletta, Sliema and Gozo. We have also redefined our HEBE concept to fit in with the discerning traveller and hence we have upgraded our travel retail concept to cater for a wider brand mix. Today we retail eyewear, fine watch brands, fashion watch brands and jewellery and in total we operate from 19 stores: three in high-end watch and jewellery, six traditional jewellery stores, three travel retail stores, two hotel stores, three Pandora stores and one Ice-Watch store.

What innovations have you introduced recently?

We collaborate with most of the leaders in the watch and jewellery world. We have the benefit of exposing ourselves and our team to the immense resources the industry has to offer, from material to technological advances that manage to marry the traditional aspect of the product we offer while coming up with novelties that will become the classics of tomorrow.

We create jewels that are unique. We have introduced to Malta the finest approach in bespoke jewellery where you can sit in comfort and have your dream jewel designed and produced in front of you, if

Customers especially love the fact that we give them the sketches and all the work that has been done to create their jewel through our bespoke services – this process transforms a jewel into a story. We create jewels that tell stories – this is very special and that is why we all love what we do. No other business can give you that and it makes our customers part of our big family.

“WE PRIDE OURSELVES IN HELPING PEOPLE CELEBRATE LIFE’S MOST PRECIOUS MOMENTS.” What expertise is necessary to operate in the jewellery sector?

A passion for quality products and a genuine appreciation for craftsmanship are key values that we look for in every team member. This is a form of art in itself. Equally important is technical capability. Locally, we have no watch and jewellery exposure and therefore we provide this in-house. Every team member is given the necessary knowledge in the area of specialisation, be it watchmaking, jewellery or gemmology.

Karl Micallef

you wish so. This is now possible thanks to the feedback that our customers have given us. We have a fully-fledged studio that can deliver the finest that the jewellery industry can provide by giving the customer the opportunity to contribute and collaborate for the creation. This does not only apply to jewellery as we also offer such a bespoke service for watches.

How has your clientele responded to such innovations?

From a company perspective, at the centre of all that we do, our main focus remains the customer and building relationships that go beyond what is expected. Therefore our ultimate objective is that of satisfying the ever-changing needs of our customers.

Today our customers expect us to be educated and to give them that particular attention and information which is what they deserve. With this in mind we strive in finding ways on how to become closer to our customers’ needs.

We also communicate our brand values and guidelines. Another key focus area is trust and honesty between ourselves and our clientele.

Our team continuously travels to the world to keep abreast with the developments and novelties that are presented yearly.

What are your plans for 2016?

This year has been a very important year for the group with huge investment in creating locations that are state-of-the-art. It is our intention to focus on establishing these outlets. We feel excited for the future as Malta has achieved a lot over the past 20 years and we are very optimistic for the years to come. We believe that buying habits are evolving and tourism is growing and therefore, it is our aim to continue and address the requirements of this highly demanding market. It is our plan to bring some interesting changes to the luxury world in Malta and maybe even to the Mediterranean.

Money / Issue 34 - 37

Interview MEDIA

CURATING, CULTIVATING & NURTURING Logix Creative Group is celebrating its 20th anniversary this year.

Money catches up with the company’s directors to see how they are transforming their business model to remain ahead of the curve.

What were the biggest changes you’ve seen in the marketing communications industry over the past 20 years?

The ongoing shift from mass media to digital and social media has brought about dramatic shifts in the way marketing communications is managed. Whereas before our role was to create loud campaigns to reach mass audiences, today we are often more surgical in our approach.

Moreover, the message we devise has to be far more compelling and well defined to make an impact with the target audience in a very noisy environment where everyone is constantly bombarded with information.

How difficult was it for you to adapt to these new scenarios?

Since registering Malta’s first .com.mt domain in 1995, we’ve taken hundreds of companies online and digital media was always one of our core competencies.

So for us the shift was probably easier than it was for others. As websites like trivago.com and booking.com have made standard travel agencies practically extinct and Facebook advertising is so easy to self-manage, some advertisers may feel that’s all they need to do and they don’t need an agency to do that for them.

Yet we currently manage more than 60 Facebook pages for our clients and we

38 - Money38/ Issue - Money 34 / Issue 33

S D N A BR

Pierre Mizzi, CEO

know that the results we obtain with all this experience are much more cost effective than what our clients would manage to do on their own.

So our work for our clients becomes cost neutral to them – experts working for you at no additional cost. We know this because our own clients have told us this repeatedly from their own experiences. Whereas before a lot of our work was related to media bookings, our role now is more in devising marketing strategies and

Keith Pillow, Creative Director

implementing them in the long term.

So you’re like an extension of their marketing team?

Yes and no. Yes because it is our duty to deliver on their bottom line, and no because we remain external consultants with a fresh mind to provide an external view of their business and their market without becoming bogged down with internal business issues. This enables us to influence strategy with new and outof-the-box ideas to continuously achieve more ambitious objectives.

clients are outsourcing their marketing communications function to us, they are employing this entire team as a whole, or the parts of it that they need to complete their own internal competencies.

Another important change has been the setting up of DAAA Haus as a separate company. Keith Pillow heads this interior design and environment branding studio with a very capable team of designers and architects. This company has been hugely successful and is expanding internationally with the setting up of DAAA Italia which happened earlier this year.

Etienne Mallia, Branding Director

Dorvic Mansueto, Digital Media Director

Cecilia Portelli, Media Director

“This enables us to influence strategy with new and out-of-the-box ideas to continuously achieve more ambitious objectives.”

What internal changes have you made in this milestone year?

The most important change has been that in our corporate structure with the setting up of separate companies where key staff members are being appointed directors.

Cecilia Portelli is Media Director running the media agency business, Etienne Mallia is Branding Director specialised in comprehensive branding services, and Dorvic Mansueto is Digital Media Director

focused solely on maximising digital media solutions for our clients.

Behind these directors there is a dedicated team that is directly hands-on in the production of campaign concepts and strategy, television, radio and print productions, and web development.

Although every day is buzzing with activity, much of what we produce is from a collective team effort. So when our

So you are more of a creative company now rather than marketing?

We are very effective in both areas as you really cannot do marketing without good creative. We are primarily brand curators, cultivating brands and nurturing their identities across different marketing platforms. Our vast portfolio of work shows that more and more clients are trusting our creative factory for this work.

Meanwhile, the work of growing the brand depends on effective marketing concepts and well-planned strategy.

Our biggest strength is when we are contracted for projects that use more of our capabilities, like for example when we create a hotel or restaurant brand, then design its collateral material and advertising and also design the interiors and styling of the place.

Where do you see yourselves going in the future?

We intend to keep developing our work to provide marketing communications solutions in its widest definition, both online and in the real world of bricks and mortar business. As the internet continues to revolutionise commerce in so many different ways, we are ready to provide solutions to our clients to help them meet the challenges ahead. Today it’s just not enough to set up a business and hope and wait for customers to find you. Providing a rewarding shopping experience and building brand reputation have become vital and this is what we’re so good at doing.

For more information visit www.logix.com.mt.

Money / Issue 34 - 39

ARCHITECTURE

CONSERVE AND CONTRAST Kris Tabone

Valletta Waterfront concept

Various cultures have left us a wealth of architectural diversity. It is our responsibility to conserve it, Kris Tabone says.

What or who inspired you to pursue a career in architecture?

From a very young age, I was exposed to and worked in the family’s real estate business and as far as I can remember both my parents and other family members all worked in the property industry.

At a point in my career working as a real estate broker there was a period when sites and developments were in high demand.

With most of my clients being developers

40 - Money / Issue 34

and contractors, that was when I started to focus on this niche.

I strongly believe that we learn how to love what we know best and it was not too long before I started to develop property myself together with my family, which was something that I had wanted to do for a long time. After a few years developing property, the opportunity arose to start studying in order to increase my knowledge of the property industry and architecture was the ideal choice.

What is your view on Malta’s architectural wealth?

We know that architecture in Malta goes back thousands of years and has very unique sites. It is also evident that many different cultures have settled in Malta in the past, a historical fact which is reflected in the variety of styles of architecture that we have, from Neolithic times to colonial styles.

I believe that we are lucky to have so many cultural influences that left us with such a rich heritage. With stone being the local material used in the past, buildings were more durable and able to withstand the test of time in comparison to certain structures built out of timber as can be found in certain foreign countries.

Mosta square concept

What projects were you involved in as part of your studies?

When working on projects at university we are encouraged to express our creativity.

At first this was a challenge because, being familiar with the property industry, I am aware that there are various regulations and restrictions which you need to factor in, before you can think of doing anything.

“TIMES HAVE OBVIOUSLY CHANGED, BUT IN MALTA IT TOOK US A WHILE UNTIL REGULATIONS IN CONSERVATION OF ARCHITECTURE STARTED TO BE ENFORCED.” Post-WWII, the local property market went through a boom. However, architectural and design values were not always respected.

How can these mistakes not be repeated?

Times have obviously changed, but in Malta it took us a while until regulations in conservation of architecture started to be enforced. Personally, I believe that there is still a lot of work to be done.

It was only in the 1990s that conservation of historical buildings started being given any importance. Before that, I believe that the elements of negligence and lack of education resulted in a lot of properties being lost to time, with little or no trace left of their existence.

There are also the international charters such as the Venice and Burra charter which have been around for quite a while – however these are just guidelines and are in no means enforced.

There were various design projects I was involved in. One of the most interesting was the redesigning of Mosta’s square, which was done by a group of four of us. This was certainly a challenge since, this being an urban project, we had to take cognisance of what is happening in the surrounding area before any interventions to the square can take place in order to maximise its potential.

Concept in Gharghur

After World War II, there was no strict control on new development and there were building development areas that allowed buildings to be built anywhere as long plot fronted roads.

Moreover, with the introduction of reinforced concrete, people kept using traditional styles with the new materials – this resulted in mediocre design.

The importance of green architecture is being increasingly acknowledged. How do environmental factors influence design?

Sustainability is the word out there at the moment, and it certainly does influence design.

Form follows function and the idea is to create architecture that moderates the use of natural resources and the energy that it would use within its lifespan.

The problem that we face is that materials for designing such buildings are generally more expensive as an initial cost – however, the users will benefit from this in the long run as well as reduce the negative impact on the environment.

Generally, for developers, it was more important to maximise the profits. However, green architecture is slowly starting to be accepted.

Also, I believe that perceptions are starting to change since the competition out there has increased over the years and there is a need for that cutting edge.

The analysis of the area focused on traffic routes, demographic changes throughout the years and cultural as well as traditional trends of the local citizens. We emphasised on increasing the value of the commercial establishments while giving importance to the visibility of the Mosta church, which is the area’s main landmark.

I’m currently reading for a Masters degree specialising in architectural conservation and design as I have always been interested in historical architecture which is very prominent, especially in Europe.

We are currently working on a Byzantine chapel in Bormla that was only discovered after World War II. The property is located two floors below street level in a street that was once said to be a valley. This means that throughout the years different generations built on top of it and unless you know about it, it is unlikely to know of its existence since there is no indication from street level.

We face two main challenges with this project. The first is how to re-establish a way to make this visible to the public through the architectural interventions. Secondly we need to design something modern within this historical site as it is important that the new respects the old with both the materials and the style used.

Money / Issue 34 - 41

COUNTRY PROFILE

SOUTH OF THE BORDER

Mexico’s economy has had a good year. But is it time for a fiesta?

M

exicans must be one of the most stereotyped peoples in the world.

It’s a racial stereotype that has been going on for centuries. Mexicans are either banditos, drug dealers and traffickers, or illegal immigrants.

In western films, for instance, the Mexican character is always a bandito. He is dirty and unshaven, has oily hair, and usually sports a scar and a missing tooth or a gold one. Moreover, he compensates his lack of intelligence with a vicious streak and plenty of dishonesty.

42 - Money / Issue 34

But that was the 20th century, you might argue. True. However, as recently as 2011, Richard Hammond called Mexicans “lazy and feckless” on Top Gear. The BBC promptly apologised to the Mexican ambassador to the UK. And last November, Coca-Cola issued an apology and pulled an online advert which was seen as offensive to Mexico’s indigenous people. In the advert, white and attractive young people arrive at an indigenous town bearing bottles of CocaCola and a Christmas tree for the surprised locals. Earlier this year, McDonald’s also withdrew one of its adverts – a Facebook campaign promoting McBurritos – which said that tamales were “a thing of the past”.

Such racial stereotyping is not just external.

In 2013, Aeromexico, the national carrier,

issued an apology after a casting call invited only fair-skinned actors to apply for a new television commercial.

Stereotypes are just wrong. However, they do carry an ounce of truth hidden beneath their layers. Take the stereotype of the illegal Mexican immigrant for instance. True, not all Mexicans are illegal immigrants.

However, in 2014, there were 5.6 million Mexican unauthorised immigrants living in the US – that adds up to 49 per cent of all unauthorised immigrants in the US. However, stereotypes are always negative and mask the truth. For instance, you never hear how Mexico’s economy is doing rather well. And that is significant given that most of the economies in Latin America have had a bad year, a consequence of plunging currencies, a stock market sell off and low

In 2015, Mexico’s economy has experienced a

2.5% growth Mexico is currently the

second

largest economy in Latin America.

Mexico also enjoys beneficial partnerships with the US. The two are major trade partners. For instance, Mexico has a growing manufacturing sector, especially in cars – a lot of the cars that Mexico builds are shipped to the US. Mexico shows that it has chosen its friends well. On the other hand, Brazil decided to ally itself economically with China.

As long as China was doing well, so was Brazil – however, with China’s economy slowing down, Brazil’s growth potential is being stifled. commodity prices. Even Brazil, which until recently was being hailed as Latin America’s success story, is in recession, with few hopes of recovery in the short term.

On the other hand, in Mexico, employment is on the rise and its debt was upgraded earlier this year. Moreover, the Mexican economy is growing. By the end of this year, it will have achieved around 2.5 per cent growth. That is in huge contrast with Brazil, whose economy is expected to shrink by 3.3 per cent this year, according to Bank of America’s forecast. Moreover, many analysts are saying that Mexico’s economy will be the region’s best performer in 2016. That said, Brazil is still the biggest economy in Latin America. However, Mexico is in second place – and that gap is steadily narrowing.

Mexico’s good performance didn’t happen overnight. Rather, it is the result of a number of measures introduced in the past few years.

For instance, Mexico’s low unemployment rate – which currently stands at 4.3 per cent, low when compared to Brazil’s unemployment rate of 7.5 per cent – is largely the result of a bill which President Enrique Pena Nieto helped pass through Mexico’s Congress.

The bill reformed women’s worker rights, labor union transparency and minimum wage. Economic growth is also the result of major reforms which Pena Nieto introduced, including opening some of the country’s oil fields to foreign investment, in the process breaking up Mexican business monopolies.

“MANY ANALYSTS ARE SAYING THAT MEXICO’S ECONOMY WILL BE THE REGION’S BEST PERFORMER IN 2016.”

Still that doesn’t mean that Mexico isn’t facing problems. It still has drug trafficking and immigration problems. Crime rates are also high. According to Envipe, a victimisation survey that polls Mexicans on the crime the experience, 2014 was the third straight year of crime increases in Mexico, with 22.4m Mexicans reporting that they had been the victims of crime. As President Pena Nieto said in his September 2 union address, such statistics, “Have damaged the mood of Mexicans as well as their confidence in government institutions.”

Moreover, while the Mexican economy is doing well, most Mexicans have not seen improvements in their income. On the other hand, the rich are prospering: according to some estimates, the richest 0.12 per cent of Mexico’s population now controls almost half of the country’s wealth. And that, in any economy, doesn’t bode well, since the healthy distribution of wealth is critical to a country’s economic well-being.

Mexico’s unemployment rate currently stands at

4.3%

In the first seven months of 2015, Mexican migrants living in the US forwarded

$24.3bn

to relatives back home.

In 2014, the number of Mexicans living in poverty stood at

46.2% 0.12%

of Mexico’s population controls almost half of the country’s wealth.

In 2014,

22.4m

Mexicans reported that they had been the victims of crime.

Money / Issue 34 - 43

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PROMO

SALON IN THE CITY

Five years of Dean Gera Hair Care.

D

ean Gera Hair Care recently opened its fourth and largest salon at the Embassy Complex, Valletta. Located at level -3, the salon is the home of the training academy for the company’s junior stylists. Its doors open bright and early at 7.30am each weekday morning to cater for the many professionals who work in the capital. Also located at the Valletta salon is the pop-up barber shop, featuring the talented resident barber, Kurt.

Dermalogica retailer in all of Valletta.

This year marked the fifth anniversary of Dean Gera Hair Care. The company has grown significantly over the years, currently represented by a team of 24 senior stylists, stylists and junior stylists, who are led by Dean as director. The four salons, located at the Corinthia St George’s Bay, the Corinthia Palace, The Point Sliema and The Embassy Valletta are powered exclusively by Schwarzkopf Professional. The company is thrilled to announce that a fifth salon will be opening in early 2016, so watch this space.

In addition, the newly-opened Spa Room forms part of the Valletta salon. In keeping with Dean Gera Hair Care’s insistence on superior quality, the fully-qualified beauty therapists at The Spa Room only use Dermalogica Skin Care products. The full Dermalogica range is also available for sale at The Spa Room, making it the only

Money / Issue 34 - 45

Interview PROMO

FOR ADVENTURE AND MORE

The new Renault Kadjar brings an innovative and attractive proposition to the crossover market.

B

uoyed by the success of the Captur, Renault is continuing its offensive in the world of crossovers with the launch of the Kadjar, the brand’s first C-segment crossover. In a fast-growing and extremely popular area of the market, the Kadjar will boost Renault’s ambitions on the international stage, as it is on sale initially in Europe and Mediterranean Basin countries.

This sibling to the Captur shakes up established thinking by bringing an innovative and attractive proposition to the crossover market.

The Kadjar takes a fresh approach to the crossover concept through its fluid, athletic exterior styling, while its interior is both sporty and refined thanks to the use of quality materials and its high-quality finish.

Available with either four- or two-wheel

46 - Money / Issue 34

drive transmission, the Renault Kadjar encourages adventure while at the same time delivers easy manoeuvrability in town thanks to its compact footprint.

The entry level Dynamique NAV version comes with dual climate control functions, cruise control with speed limiter and an R-Link function which includes bluetooth and MP3 playback.

The Dyamique equipment level also includes 17-inch alloy wheels, chrome window surrounds and a leather-trimmed steering wheel. At only €24,500 this fantastic new model also includes keyless entry, driver seat lumbar adjustment and front and rear parking sensors.

For more information and/or test drive please call Autosales Limited on 2331 1138 or 2331 1142.

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Interview GIFTS

A BEAUTIFUL

YEAR Money spells out your new year resolutions in luxury and style.

THE ART OF TIME Hublot has once again participated in the auction organised

by Only Watch, a biennial charity auction of unique timepieces created and donated by the finest watchmakers.

Proceeds go towards research on Duchenne Muscular Dystrophy. For this sixth edition, Hublot collaborated with Brazilian artist Romero Britto to create a watch with a dial in white gold and enamel, using Britto’s famous drawings.

TIE IT UP This handmade Marwood lace-over silk tie comes into its own on both formal and casual occasions.

HOLD ON ON THE HOUSE This rosewood mixologist box by Ralph Lauren Home certainly comes in useful during the festive season. Fully equipped with everything you need to mix up some classic cocktails.

54 - Money / Issue 34

Dents Taunton driving gloves are hand-sewn in deerskin and finished with a removable cashmere lining.

BEST FEET FORWARD London Sock Co’s luxury three-pair sock gift set is for the man with traditional values. The socks are knitted using luxury Scottish Lisle Cotton yarns.

TURN UP THE VOLUME LIGHTS YOUR FIRE Il Serpente del Giardino Segreto is a 300g scented candle from the Fornasetti Profumi per la Casa collection. The fragrance is enriched with notes of cypress, ivy, bergamot and pink peppercorn.

The Bang & Olufsen A9 speaker houses five specialist speakers, five amplifiers and bass reflex. Comes with built-in wireless and Spotify connections. Can be hung up or left freestanding.

GET THIRSTY

SKULLDUGGERY

This flask by Ettinger is an ideal companion on a long walk. The round stainless steel hunter flask is covered in leather and comes with four stainless steel cups.

In the 1800s, poison bottles had skull-shaped stoppers so that they could be easily identified.

Theo’s silver skull poison bottle stoppers are custom made to fit any bottle.

IN THE SHADE The Kaiser Idell Luxus table lamp is made from a combination of steel and brass with chrome plating.

The shade is finished in a shiny gloss or matt texture.

Money / Issue 34 - 55

TRAVEL

PALMS AND SUGAR Mona Farrugia downgrades to a simple life.

“Y

“Who on earth uses aircon in the Maldives?” I reply

thing and that it will put me off. In fact it makes a lot of sense. The French love simplicity, know how to chill out properly, appreciate nature in its true sense, don’t care about social media and brochure promises, and are truly unfussy if their basic criteria of a way of life are met.

Long pause.

“That’s perfect,” I reply.

“And we have no house reef.”

Which is why, in spite of Nabeel doing his best to scare me off, I’m still here, at the resort which Nabeel’s family, scions of Maldivian hostelry, bought a year ago. And they still do not seem to know what on earth they should be doing with it. It is 32 years old today and nobody seems to be celebrating its birthday.

ou do realise we have no aircon?” Nabeel asks me in what is turning out to be a prebooking debriefing via Facebook chat.

For all the Maldives newbies, that means that if you want to do some serious snorkelling, you have to do it off the island.

“Where?” I ask him “Oh, we do trips out with the boat twice a day.”

A longer, much longer, pause. Where is he, I’m wondering. What can possibly be more important, in his world, than my annual trip to paradise?

“And 70 per cent of our customers are French” he returns in the anti-marketing manner of somebody who has just dropped a huge, creamy cake in my lap and ran away.

Nabeel seems to think this is a big bad scary

56 - Money / Issue 34

The thing is this: within two hours of arriving by speedboat (I had to absolutely insist on this instead of a seaplane – newbies think this is cool, returners hate it), settling calmly in my small but extremely practical hut and walking out to the sea. I’m so in love I’m already planning my return next year.

All around the Maldives, owners of private islands (and they are legion) are trying to upgrade their product. The reasons are myriad but mostly it is down to the bottom line: some are charging up to $4,000 a night. A regular five-

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

“Don’t make any more changes as you’ll be just like all the other resorts,” one girl who was here last week posts in a rare Facebook rant. And she’s right. Nobody wants this place to end up full of camera- and chiffonwielding Chinese or the dreaded Swarovskiencrusted jean Bulgarians.

The sea in the Maldives is incomparable to anywhere else. And it is there no matter what resort you choose. Within two days, my senses are heightened to the point that I can smell the diesel from the boats two miles out at sea, can hear an approaching seaplane way before I’ve seen it. The island has not been messed around with and the palms outside my room swish and sway and, when it’s windy, give the impression that the island is going to be pulled off its anchors. They give protection to the surrounding bushes, which in turn protect the chameleons, cranes, waterhens and herons.

Breakfast usually includes a visiting bale of turtles and dinner invitations are extended to little, and not so little, sharks.

“THE PALMS OUTSIDE MY ROOM SWISH AND SWAY AND, WHEN IT’S WINDY, GIVE THE IMPRESSION THAT THE ISLAND IS GOING TO BE PULLED OFF ITS ANCHORS.” star will cost $1,200 for bed and breakfast and that does not include the dreaded +++ (service charge and two kinds of taxes, which push the bill up by another 35 per cent). The overheads for the property size remain the same. The terrorist events in Europe seem to have affected outgoing tourism greatly to the point that the Maldives, a Muslim country where Islam does not really affect your holiday in the least, has also been tarnished. The resorts are suffering with the first massive decline in New Year (peak period) reservations in long years. And this in a country where dependency on tourism as a core product is extremely strong.

At these posh resorts, you exchange your currency with a bigger breakfast, themed buffet nights, Molton Brown individual toiletries, a beach bag, proprietary lounges at the airport and a bed so padded and quilted you could be in a -20°C hotel room in Stockholm, not in

the balmy 28°C of this part of the world. You also get the unfunniest, most expensive, most eco-busting joke of them all: underwater discos, restaurants, and spas.

And there is no Wi-Fi in the rooms. There’s a trickle of Wi-Fi in the bar and reception, but this disappears for two days at a time. My phone stops working properly and at some point freaks out altogether. I go back to paper and pen. I plough through Donna Tartt’s The Goldfinch and Hanya Yanagihara’s A Little Life voraciously.

Nobody has a tablet and when a British woman takes one out at the beach, it just looks truly weird. No electronics is astoundingly liberating.

No news even more.

The resort has had to try and diversify its product to move away from this dependency on the French market and the French absolutely hate it.

There is only one restaurant and one bar. Who needs more? People table-hop and make true friendships. Every night there is a cocktail of the day and food is announced with the blowing of a conch. The staff hang around the bar and not all have been trained in the art of warm-but-notover-friendly so I cannot decide if it is a good or bad thing when they sit down at my table and accept to share my wine. Mostly because I have stopped caring and also because this place has organic Malbec at $35 a pop, which is ridiculously low in a country where a really crappy South African chardonnay that retails for €15 in a Maltese restaurant here costs $150.

The atmosphere is wonderfully convivial and welcoming, never condescending. I’m used to travelling to honeymoon paradise on my own, unsettling the couples with my supposed singleton status (they always presume I have a sad past I’m running away from and try to befriend me to find out what it is). Here it is packed with French groups and families. All of them read. All the time. Some returners have been coming for three generations. One, Katy, is on her 25th trip. She arrives with her husband, who leaves after a week for work, and she stays. It’s home.

We have a few days of rain, a few days of sun in the morning and howling wind, thunder and lightening after 1pm, then the skies clear and we get the bounty that only the Maldives can offer: blue, turquoise, green, aquamarine, jade, pea, duck-egg, all swathed in great lengths of creamy, powder sand and the dark brown of aged tree trunks. And life goes on to the point that we all forget our worries, our businesses, our lives back home and are simply immersed in nature.

Money / Issue 34 - 57

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

Interview NEW YORK

What

rough beast

slouches towards

We need to comprehend the true nature of this terrorist beast, the Bluesman says.

N

ot a reign of terror but definitely an evening’s worth. Despite their endeavours it will never be a reign. This hostile culture – already defeated at the Battle of Lepanto in 1571 preventing the spread of the Ottoman Empire through Western Europe, put in place by President Jefferson in the early 1800s by the formation of a US Navy to end the pirating and taking of hostages by the Barbary Coast corsairs – is once again poised to strike again and again. It’s now time to stand up once more to this current attack on Western values. Hopefully the EU will wake up to action.

While Russia hurling missiles in the direction of these stateless wannabes satisfies the need for some payback, let’s not forget that the US has dropped tens of thousands of bombs and yet the threat remains. I believe President Francois Hollande’s promise that the French response will be merciless – they have had plenty of experience gained through the Foreign Legion’s activities. Yet above all this, a concerted effort needs to be made to persuade the Arab states with their large armies to hit the ground because these Muslim jihadists need to be stopped by Muslims who after all have not been immune to the savagery themselves.

Unfortunately there are those in the West who do not comprehend the true nature of this beast. “We can’t say their culture is bad and ours good,” they wail. Canadian Minister for International Trade Chrystia Freeland attempted to make this argument on Real Time with Bill Maher who then cornered her by asking her if she considered female genital mutilation a good thing. Also to blame are the media who persist in easy headlines like labelling Paris atrocity ringleader Abdelhamid Abaaoud a “mastermind”. This dropout, whose death even his own family breathed a sigh of relief over, merely encouraged others in a cowardly attack on innocent people.

Adherents of this mindset embrace poll numbers they think support their mistaken position because individual numbers supporting this extremism sound small. But doing the math reveals millions actually supporting the black cult. The Pew Research Center came up with the number of 60 million in 11 countries who have no problem with this deadly rampage.

These figures range from Lebanon with zero per cent to Nigeria with 14 per cent. Nato member, EU-hankering Turkey comes in with eight per

58 - Money / Issue 34

us Despite the Republican Candidates’ posturing, polls showed that Hillary Clinton beat every one of those candidates when it came to who would best be able to deal with terrorism. Even when the scheduled Democratic debate suddenly got ‘hijacked’ with questions about foreign policy in light of the events in France and Belgium she was the one who came out ahead in her grasp of the subject. Clinton hammered home the point that this election isn’t only to elect a president but also to pick a commander-in-chief.

cent. In a population of about 75 million, this equals nearly six million.

Meanwhile back to the race. The general feeling was that in the Republican camp, traditional candidates like Jeb Bush and Lindsay Graham would surge somewhat in the polls after Paris as the populace might likely turn towards someone who has a better grip on how the real world works. Surprisingly it was Donald Trump who gained the advantage elbowing aside Ben Carson who had been nipping at his heels, despite the crazy pronouncement of the pyramids being built by Joseph of Technicolor Dreamcoat fame.

Trump doubled down on his defiant rhetoric.

At his latest rallies in Tennessee and Alabama, among the more receptive venues for his vituperous style, he made it clear that the US should not take in refugees. He would bring back waterboarding to stop what he called the Syrian Trojan Horse, he said.

While there is a kernel of probability in that fear, the numbers prove otherwise but the resulting clamour has resulted in Congress putting the kibosh on the intention to take in 10,000 refugees. The process of granting a refugee visa, after the UN has vetted and referred the petitioner to the US, takes a further 18 to 24 months before the claimant can even think of a plane ticket, so clearly not the speediest method of getting here.

The election is still a year away so it’s not known how and whether the terrorist threat will have an effect. The economic ship holds a steady course with optimism for recovery and expansion. Among the heartening signs are the improving labor market, corporate balance sheet liquidity, housing affordability, and bank lending not tightening. If the forecast is correct, look to US shares to continue to rise. Yet any analyst worth his fee would point to some worrying factors. Limited hedge fund exposure to risk assets, below average ownership of equities, and above average short sales are indicators of investor caution.

Finally a word from Quentin Tarantino to cops. The filmmaker attended a rally in New York a few weeks ago protesting the police killings. His statement that if he, “Saw a murder he had to call it murder”, had the police unions up in arms. Tarantino held his ground clarifying that he wasn’t implying all police were murderers and hitting back at what he called a campaign of intimidation.

As I write this, a white officer in Chicago was charged with the first-degree murder of a black teen. “He lunged at me,” he blustered as a reason for emptying his magazine into the kid who was a traffic lane away and not walking towards him. Within six seconds of exiting his cruiser he had fired 16 bullets, 13 of them while the victim was lying on the ground and was reloading before seven other officers stopped him. These officers, as well as the union, supported the lie for 13 months until civil rights leaders won a court ruling forcing the release of the dash-cam video. Another case resulted in Black Lives Matter protesters being fired upon by white supremacists outside a Minneapolis police station as they gathered in support of the latest (at least to date) victim of police violence.

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