MONEY ISSUE 66 by BE.COMMUNICATIONS

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T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N ISSUE 66

COVER STORY

18 10

D A R I O S I LV E S T R I

The founder of tomorrow’s education

MIRIAM DALLI

Malta: the sustainable island?

ANDRE CALLUS

Moviment uncovered

ALEX TORPIANO

Dwell(ing) on the construction saga

28 14

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WELCOME

Editor’s letter — Seeing the irreversible destruction of Malta (and potentially Gozo) over the past

COVER

years, especially over recent months, makes the Real Estate issue even more poignant. Each

Dario Silvestri

time we have no option but to discuss the uglification of the Maltese Islands – cranes

Read the full story on P.18

wherever you look inland, towers of cement blocks all jammed together, and buildings crammed in every available space with no heed given to aesthetics or practicality. It’s demoralising to see our once beautiful Maltese archipelago being destroyed in the name of greed. What happened to the beautiful architecture that the Maltese builder used to be so proud of? Their way of building was a thing of pride, a local cultural trade, part of our heritage; now, it’s just masses of cement bricks and trying to fit in as many units as possible. Although we’re all aware of the construction crisis happening in Malta, there are mitigation measures enforced by the EU that Malta needs to abide by, mainly concerning the environment and climate regulations (at this point). These guidelines allow us to throw around our favourite S word – sustainability. In these pages, you’ll read Minister Miriam Dalli’s interview about the government’s efforts to make Malta

E D I T O R Anthony P. Bernard

as sustainable as possible and what’s being done to meet EU regulations on sustainability and

[anthony@moneymag.me]

meeting climate change requirements. D E S I G N BloomCreative

Meanwhile, Alex Torpiano explains whether Malta can be considered sustainable based on the

[bloomcreative.com.mt]

sheer number of developments happening when the supply exceeds the demands. P R I N T I N G Print It

We won’t achieve anything by simply being armchair critics, Moviment Graffitti activist Andre Callus explains. If people are fed up with the over-development in the country, then it’s time to

D I S T R I B U T I O N JD Distributors

take a stand. People’s sense of civic responsibility needs to be strong and active, and it’s up to the nation to make its voice heard. Of course, this doesn’t mean that there shouldn’t be any new buildings ever again because

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and rooms (where allowed), embassies and Maltese

already there with building new houses that are needed. Along with that, perhaps we could also

embassies abroad (UK, Rome, Brussels and Moscow);

consider adding some green spaces when designing new developments? And creating towns

all government ministries and entities.

rather than adding buildings haphazardly until the place is just one mass of blocks with no

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greenery in sight. Is that too much to ask?

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The lack of greenery amidst our most densely populated towns contributes to the higher temperatures because there are no shaded areas anymore. Instead, every open space is paved, a few benches are installed, and trees are relegated to the perimeter stationed in their 1x1 metre box – a bland, gentrified look that offers no respite on a hot day but is inoffensive to the eye and therefore will be accepted.

Money is published by Be Communications Ltd, No. 81, Howard Street, Sliema, Malta SLM 1754

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Is it too late for Malta? Who knows. But unless someone in power takes a stand and starts refusing illegal or unlawful permits and brings in a new mentality of trees and pathways

being just as crucial as streetlights and roads, then it’s unlikely that anything will change

is strictly prohibited without written permission.

(for the better).

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

In the meantime, summer is well and truly upon us, so I wish you as

and publishers cannot be held responsible for errors

good a summer as possible in your patch of shade – let’s make

or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome

the most of the long days and balmy nights while we can, always

but cannot be returned without a stamped, self-ad-

acting responsibly and safely. And I’ve deliberately avoided

dressed envelope. The editor is not responsible for

mentioning the C word!

material submitted for consideration.

ISSUE 66

MONEY

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DISPLAY THE FUTURE

CONTENTS

Malta: the sustainable island?

Urban design: How important is it for cities?

Bugibba marches onto Gozo

Giselle Borg Olivier spoke to Dr Miriam Dalli, Minister for Energy, Enterprise and Sustainable Development, about the ministry’s initiatives to meet sustainability goals and where Malta is achieving EU targets.

Why is this unprecedented transformation of our environment happening so rapidly and, seemingly, uncontrollably, in front of our very eyes? Jacques Borg Barthet asks.

It’s been described as a siege, an assault, a rape. But irrespective of the name, the result is unmistakable: Gozo is steadily turning into something akin to Bugibba with rows and rows of five-storey flats replacing townhouses. Victor Borg investigates.

24 The grass is not always greener

14 Dwell(ing) on the construction saga

With its beautiful and untouched nature, kilometres of wild coastline, and surrounded by the Pacific Ocean, New Zealand is famous for being one of the “greenest” countries. But behind this facade, the truth is quite surprising when it comes to sustainable constructions and architecture. Federica Tadiello talks to Prof Paola Boarin from Auckland University.

18 COVER STORY

Dario Silvestri is renowned for developing innovative models in academic training and generating investments in this sector and health services. Dayna Camilleri Clarke caught up with the entrepreneur to find out more.

Urban rejuvenation Theo Dix explains why the pandemic has provided an opportunity for many of us to rethink our priorities. What we need, what makes us happy, and what needs to change? And a green urban revolution for starters.

Alex Torpiano shares his thoughts on whether the word sustainability applies when so many blocks of flats are being built, even though most are destined to remain empty.

The founder of tomorrow’s education

Renovation, regeneration, recovery

28 Moviment uncovered Dayna Camilleri Clarke caught up with Andre Callus from Moviment Graffiti to discuss all things activism and the changing shape of Malta’s social and physical landscape.

ISSUE 66

The Green Deal is touted as Europe’s industrial policy and seen as a powerful vision and policy tool to steer the green transformation across various industries, including but not limited to construction and building. Therefore, Malta most definitely should follow the principles and thinking laid out in this strategy as the local construction and real estate sector remain ripe for transformation. JP Fabri explains.

MONEY

CONTENTS

42 Statistics key to a holistic framework Leonid McKay, CEO of the Housing Authority, and Brian Micallef, manager of the Economic Research Office of the Central Bank of Malta, share statistics on the private rental market.

46 50 shades of grey As a nation, we need to understand the real consequences we might be facing shortly and what the greylisting means amid statements that brushed off the risks. Jordan Portelli writes.

48 Sacking Malta and Gozo

Dayna is a senior speech therapist

JP is a founding partner at Seed,

by day and feature writer by night.

a multi-disciplinary advisory practice.

When she’s not busy fixing words, she

R E N O VAT I O N P.40

is travelling the world and adding to her fridge magnet collection. A C T I V I S M P.28

Manuel is a political blogger who writes for The Sunday Times and [manueldelia.com].

In March 2019, four months after the world learnt that Yorgen Fenech owned the company that Keith Schembri and Konrad Mizzi’s accountants told Mossack Fonseca was their “target” to pay them, with others, $2 million for no reason whatsoever, the chief executive at the Planning Authority, Johann Buttigieg, was exchanging text messages with the same Yorgen Fenech. Manuel Delia investigates.

Digital marketer and content writer

P O L I T I C S P.48

with a passion for technology, sustainability and innovation. When

Richard is the CEO of Switch — Digital

Federica’s not working, you can find her

& Brand, a marketing agency that

underwater or travelling.

forms part of ICOM, the world’s largest

U R B A N D E S I G N P.23

network of independent agencies. M A R K E T I N G P.54

Giselle is a marketing professional, and independent writer and proofreader.

Theo is a senior manager at

She runs Content for Success.

EY-Parthenon, the strategy consulting

S U S TA I N A B I L I T Y P.08

business of EY, that helps clients design and deliver grounded strategies,

Jacques is director of practice at

and to support them reframe their

AP Valletta. He has a practice and

future.

research background in urban design

R E J U V E N AT I O N P.38

and urban governance. U R B A N D E S I G N P.18

Victor is an investigative journalist with more than two million words and

Jordan is an economist and CIO /

MONEY

hundreds of pictures to his name, in

portfolio manager for a local financial

books, magazines, and newspapers in

services company.

every corner of the world.

F I N A N C E P.46

E N V I R O N M E N T P.32

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

S U S TA I N A B I L I T Y

MALTA: the SUSTAINABLE ISLAND? Sustainability is a keyword that has been bandied around for a while now as people realise that the earth’s resources are finite and depleting at an alarming rate. Therefore, efforts need to be made to tackle the issue. Giselle Borg Olivier spoke to Dr Miriam Dalli, Minister for Energy, Enterprise and Sustainable Development, about the ministry’s initiatives to meet sustainability goals and where Malta is achieving EU targets.

Several initiatives have been launched to

this end, we are taking a holistic approach that

sustainable investment, businesses will

support enterprises to invest in sustainable

ensures that different bodies work together to

benefit from technical recommendations

and energy-efficient operations. But, what

enable green opportunities for businesses and

and reporting mechanisms. Some €15 million

criteria will the enterprises have to meet to

effectively implement sustainable projects.

have been dedicated to helping finance the

benefit from these initiatives?

investment costs involved in upgrading One such example is the synergy between

equipment and new installations that reduce

Enabling the sustainable transition of our

Malta Enterprise, the Energy and Water

the energy consumption. This incentive is

enterprises is a critical driver for Malta to

Agency, and the Sustainable Development

open to all businesses operating in Malta,

achieve its climate neutrality ambitions. To

Directorate. To facilitate the attraction of

whether they own, lease or have the right to

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S U S TA I N A B I L I T Y

use their premises. Eligibility is also available

1MWpk. This will translate into a €50 million

Will the enterprises be checked to ensure

to different companies irrespective of their

investment spread over 20 years. In addition,

that they’re adhering to the required

size as long as they employ at least one

the Ministry for Energy, Enterprise and

sustainability and energy efficiency levels?

individual full-time.

Sustainable Development is looking at further incentives, all in line with improving energy-

To ensure that funds are appropriately used,

Another attractive scheme enabling

efficient operations and to ensure all efforts

each beneficiary is required to submit an

businesses to invest in green energy

meet our decarbonisation targets.

annual Energy Savings Report to the Energy

technologies is dedicated towards renewable energy projects ranging from 40kWpk to

MONEY

and Water Agency for the three years following Are the benefits a one-time opportunity?

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

the completion of an approved project. »

S U S TA I N A B I L I T Y

What is the timeline of these initiatives? For

through our schemes via direct cash support

information related to the environment,

example, if an enterprise invests in energy-

and tax credits to ease the financial burden

society, and governance will be collected

efficient equipment, when will they benefit

from our companies while still allowing them

from companies listed on the Malta Stock

from the initiative?

to invest in a genuinely sustainable and more

Exchange. Eventually, this information will be

profitable business model.

incorporated in the companies’ annual reports, organised and published on the Sustainable

Generally speaking, the approval process for the energy efficiency scheme managed by

Are there sustainability regulations in

Malta Enterprise takes a minimum of six weeks.

place for new businesses being set up so

These projects are usually approved before the

that they can be energy-efficient from the

Through the Paris Convention, more

start-of-works. Different timelines might apply

get-go?

than 100 countries, including Malta,

Development Directorate electronic platform.

have pledged to achieve net-zero carbon

to other schemes according to the complexity We see a robust regulatory move towards

emissions by 2050. This operation kicked

ensuring that capital flows towards

off in 2020 - where is Malta at meeting its

What sort of results are you expecting to

sustainability-driven companies of different

climate change targets to contribute to a

see because of these initiatives? Will the

sizes and across various sectors. As a matter

better and healthier environment?

results be measured and recorded?

of fact, up until recently, only large companies

of the projects involved.

employing more than 500 employees were

The Paris Agreement goal is to move

These initiatives will help achieve various

obliged to produce environmental, social and

towards carbon neutrality by 2050. Malta

targets set by the European Commission,

governance (ESG) reporting. From now on,

will implement this commitment collectively

including Green House Gas emissions,

the EU’s Corporate Sustainability Reporting

with the EU. Malta has just launched its Low Carbon Development Strategy and updated

The pandemic’s financial challenges also highlighted the importance of running leaner business models with more efficient operational costs.

its National Energy & Climate Plan, which is the island’s long-term strategy. A significant milestone was the switch from heavy fuel oil to gas in the generation of electricity. The following steps for Malta will be to target transport and energy efficiency in buildings. The objective of the National Nearly ZeroEnergy Buildings (NZEB) Plan is to map a way on how to increase the number of such buildings in Malta. The number of buildings has been increasing; however, have all new structures adhered to this plan? The target

Renewable Energy Targets, and Energy

Directive will extend the sustainability

goal was 2020, so were checks made in this

Utility targets. Indeed, the results will all be

reporting requirements to all listed companies

regard?

measured, recorded and reported back to the

across Europe, with only minor exceptions. Malta had published guidelines for architects

European Commission and the United Nations Framework Convention on Climate Change

As minister for enterprise and sustainable

and engineers on keeping nZEBs at the core of

(UNFCCC), among others.

development, my objective is to enable

their design. Through the newly set up Building

companies to drive this transition because

and Construction Authority, Malta is looking

Due to Covid-19, many businesses struggle

they can do well for their shareholders while

at different ways to ensure that the EU’s

with finances and cash flow – is this the

doing good for our community. Accordingly,

Directive is adhered to. While this plan falls

right time to ask them to invest in energy-

we have recently launched the ESG reporting

under the remit of the Planning Ministry, as a

saving operations?

initiative – in the next three months,

government, we are working to decarbonise our economy.

The pandemic’s financial challenges also highlighted the importance of running

Through the incentives and schemes managed

leaner business models with more efficient

by the entities falling under the Ministry

operational costs. Indeed, permanent cost

for Energy, Enterprise and Sustainable

savings and the significant improvement to

Development, we support different economic

bottom-line earnings are financial drivers of

sectors to ensure that sustainability is part of

the sustainability transition. Like any other

Malta’s economic growth. From transport to

investment, capital is needed to fund the

construction, to manufacturing to services,

initial expense; this is where our incentives

this Government is working for an economy

and schemes come into play. We are effectively

that rewards those who give back to the

helping to fund the initial capital expenditure

community.

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DWELL[ING] ON THE CONSTRUCTION SAGA

S U S TA I N A B I L I T Y

Alex Torpiano shares his thoughts on whether the word sustainability applies when so many blocks of flats are being built, even though most are destined to remain empty.

of demand outlined above, the construction industry continued to churn out properties, which were destined to remain empty unless some additional actions were taken. This is when the industry and government, worried about the impact of a collapse in the market, made several interventions to prop up demand artificially. The most notable intervention was to reduce the sales tax from 5 to 1.5% throughout the pandemic (property sales in Gozo are already taxed at 2% in normal times). Thus, sales in May 2021 were reported as doubling, and promise of sale deeds, particularly in Gozo, tripled, even if the demography on the islands differed. Records were broken, it was reported, but does this represent a healthy, sustainable demand? Another recent intervention was the offer to subsidise developers in their efforts to sell the property at overseas

What are your thoughts about the never-ending

fairs – does this reflect a concern of a faltering demand?

blocks of flats designed and built when there is an

apparent discrepancy in supply and demand, and

It is clear government policy to invest heavily to assist the

many units remain empty?

construction industry and effectively cushion it from the regular “downs” that always follow “ups”. Therefore, it is

The free-market approach to demand and supply – I have

intervening in the market to distort the normal economic

deliberately changed the sequence – is vitiated because

cycle, within which the concept of demand and supply

of a lack of clarity about what defines demand. In post-

can be applied. We are in a state of artificially-assisted

war Malta, demand for housing was clearly defined by the

demand, required to fulfil an inexorable supply, which the

destruction of homes during the war and rising sanitary

industry and government are afraid to slow down. Hence,

and space standards, which encouraged people to seek

this explains the never-ending blocks of flats. The problem

higher hygiene and comfort levels. Demand for industrial

is that this attitude is simply a way of postponing the

buildings and tourist accommodation was also clearly

issue. The vision of perpetual growth is a mirage, not least

defined by the socio-economic objectives of a young

because (i) we are not endowed with an endless supply

nation seeking to shed its dependence on a military-based

of land; (ii) the same construction activity progressively

economy. This type of demand grows as the country

reduces the attractiveness of Malta and, therefore, will

develops, but it can also, of course, be “manipulated”.

tend to reduce demand inexorably.

Over the last years, there was an official policy to recruit

Now, “demand” is measured by the industry and

thousands of expatriates to support an ambitious

government and how quickly properties on the market

economic programme. The number of expatriates is alleged

get sold or rented. Still, as I said earlier, this market action

to have reached anything between 70,000 and 90,000

is being distorted. If we wanted to measure “demand”

people, equivalent to two or three small towns. Many of

correctly, we should undertake a Housing Needs

these expatriates were generally employed by companies

Assessment. Then we could compare with the potential

attracted to Malta by low corporate taxation. Savings

housing accommodation, provided by our current planning

in tax allowed these companies to offer good salaries to

policy of promoting 2/3 storey buildings to increase to 5

their employees, which meant that these expatriates

and more storeys. If one applied this measure to Gozo, say,

increased demand in general and raised the competitive

are we projecting that the population in Gozo more than

bar, especially for rental properties. The expansion of

doubles? And if it did, what is the infrastructure required

the residence-by-investment programme added to this

to support it, what about traffic congestion, water supply,

demand. In addition, Malta was also hit by the global rise

etc. Without proper planning, the current trend will be an

in demand for Airbnb properties, which further increased

economic and environmental disaster for Malta.

the need for residential properties. Therefore, it is no

surprise that, in a context where investment opportunities

Who is responsible for what buildings look like?

outside real estate are perceived as limited, the demand for

The architect or the contractor? Should one have

properties for the lucrative rental market exploded.

precedence over the other?

Supply followed a similar pattern, except that the supply

This is a perennial question, but it is wrongly put. It is

always lags demand because of the time it takes for a

not a question of one having precedence over the other.

construction project to be realised. This means that

The architect’s profession is entrusted, by law, with the

even when the Covid-19 pandemic dissipated the type

decisions that affect what buildings look like. The developer

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S U S TA I N A B I L I T Y

(not the contractor) never intervenes in what buildings look like. However, the developer insists on maximising return based on whatever is allowed by planning rules and beyond. Hence, higher and higher, to increase the yield of a plot of land – however narrow, and smaller and smaller residential units – to facilitate sales or rentals. If a developer acquires an old property, the considerations remain the same – will the developer be allowed to demolish and re-build? That would, understandably, be the first preference. Alternatively, will the developer be allowed to build additional floors over the old property, even at the expense of retaining an existing façade? If planning policies did not allow this, then, of course, these options would not be possible. If planning policies permitted, as they do, this myopic view of built heritage, then no architectural miracle could improve the way the building, and consequently the street, will look. In my opinion, therefore, the real responsibility for what buildings look like does not reside in either architect or developer but lies in what politicians have made of the Planning Authority. This is not an attempt to exonerate architects of the responsibility for what is happening in Malta or developers for that matter. Incompetence, and greed, respectively, ensure that these also carry their share of the blame. However, the regulatory authority is meant to regulate, and hence an incompetently designed building should be prevented from realisation if the regulatory authority did its job correctly. There is no urban planning in the country – something that should have happened many years ago. Is it too late to set standards now? What should it entail, and how would it be adhered to? The construction industry has not been adequately regulated for many years. It is necessary, however, to clarify the different regulatory processes that are necessary. Urban or spatial planning procedures did exist in Malta for a relatively short period of its modern history. In 1992, the government enacted the first legislation establishing actual planning processes. The first version of the Planning Authority embarked on the studies which allowed it, and government entities, to take a snap-shot of the state of crucial socio-economic parameters, including housing, industry, agriculture, tourism, education, heritage,

plans translating high-level policies to the detail of

etc., and to outline the land-use policies that would

implementation at a local scale. Unfortunately, the latter

support the required development that was mapped out.

was never realised.

The Structure Plan was the text that outlined the various

land-use policies that became the bible for development

And the documents that supported the 1990 Structure

and the many status reports prepared, and the local

Plan were never updated as they were meant to be. »

Our current sanitary legislation, for example, is broadly based on 19th-century concepts of health protection. MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

S U S TA I N A B I L I T Y

There is no mature political debate, as contrasted to fingerpointing shouting sessions, on important issues such as tourism, or transport, industrial policy, or demography.

Nevertheless, the processes of “planning” within the

impacting the “presumed rights” of the developer is bound

Planning Authority continued within units such as the

to be ignored. Can this flawed development control process

Forward Planning Unit until such units were gradually

be improved? The essential requirement is that the relative

wound down. This resulted from an official distrust of

policies and local plans are first overhauled. Then, with

the act of planning and the fact that serious planning

the proper “rules” in place, the remaining issue would be

interferes with the ability of politicians to fulfil the needs of

selecting the right people to administer them. Next, using

a constituent. So we did have a system of planning in the

the analogy of the normal legislative process, it is up to

past, which we have since dismantled. It could be set up

Parliament to legislate; the judiciary then uses those laws

again – indeed, it must be set up again – but this demands

to make enlightened decisions. It follows that we need to

all the different “land-using” agencies in government,

improve on both levels, firstly at the policy-making level

infrastructure, tourism, agriculture, industry, housing,

and secondly at the implementation of the relative policies

education to map out their policies in a coordinated way,

by properly selected decision-makers.

and to provide the necessary input to the planners.

Your question refers to “standards”, and I suspect that you

What the Planning Authority currently does is not

are referring to building standards. This is a different level

“planning”, but development control. That is, it determines

of regulation, one that is more appropriately called building

the application for permission for a proposed development.

control. This is entirely different from planning permission.

This is done based on policies and “guidelines” that

The Chamber of Architects and Civil Engineers has long

are often “elastically” misinterpreted, consciously or

militated for proper national Building and Construction

unconsciously, by the various boards that are appointed

Regulations. Our current sanitary legislation, for example,

– (once again by politicians, mainly based on political

is broadly based on 19th-century concepts of health

allegiance) – to take development approval decisions.

protection. Other pieces of legislation have been enacted

Experience shows that any guideline that is interpreted as

in response to specific events, such as the collapse of

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S U S TA I N A B I L I T Y

buildings during construction or EU requirements for

The word “sustainability” keeps being bandied

energy performance of buildings. Still, we never had a

around; however, there does not seem to be any long-

comprehensive modern code of standards for building

term plan to achieve it. Trees are being sacrificed for

and construction. In recent months, there have been

roads to make way for the ever-increasing number

some significant developments, including the Building and

of cars (no alternative transport plan in place),

Construction Agency set-up and the drafting of modern

buildings are being erected in every available nook,

building and construction regulations. There is still a long

and recreational spaces or green areas do not feature

way to go, and there are many opportunities for progress in

in plans. Where does the architectural industry stand

this area to stumble and halt. Nevertheless, we must insist

and feature on this?

that the authorities persevere, even if the industry and the public protest about the additional “bureaucracy”.

I do not like the word “sustainability” because it has

been applied to everything and has lost all meaning.

There are significantly fewer green pockets left on

In the public mindset (and that of politicians),

the island, and they are constantly dwindling. So what

sustainability is about reducing the electricity bill

can be done on a regulatory level to safeguard the

by installing photovoltaic panels. In environmental

environment? Do you think that having legislation in

terms, sustainability should be about looking after the

place will make any difference?

environment we live in, allowing us to leave it to future generations in a better state that will enable them to

The way we understand “green” areas in Malta is peculiar.

make the same choices today. It follows that if an area

It is revealing that we refer to Outside Development Zones

of agricultural land is built over, or paved or asphalted

instead of rural areas. Outside Development Zones are

over, or dug up (as in the Ta’ Qali National Park), the

perceived as precisely that, zones where development

consequences of that decision are irreversible. Every

is not allowed (yet). But how much of these zones are

decision to allow a five-storey development in the street

untrammelled “green” countryside. In theory, only

previously comprising two or three-storey houses, based

activities deemed incompatible with urban areas are

on Annex 2 of the Development Control Design Policy,

permitted within these zones. Some areas are reserved for

Guidance and Standards 2015, irreversibly ignores the

agriculture, where our food is grown - but does every parcel

impact of such development on the quality of life of

of land need to have its ubiquitous agricultural store? There

residents on traffic generation, or streetscape.

are then the structures dedicated to animal husbandry

– these are often semi-industrial complexes, with some

To test sustainability in this context, it would be

sheep farms being developed over two storeys. Should

appropriate to ask, “what if all the dwellings in a locality

there not be design rules to ensure that the visual impact

were developed to this increased height, how many

from these structures is minimised and is compatible with

people would now be accommodated in that street

the rural “green” nature of their context? The pressure is to

or community, and what will their infrastructural and

place other structures within these zones, from shooting

their social needs are?” The underlying question of the

ranges to old peoples’ homes, to car-racing tracks, camping

“carrying capacity” of the islands needs to be answered.

sites, agri-tourism, etc. There may be legitimate reasons

How many people can the islands support without

for this, given our limited land area, but should we not,

irreversible environmental damage?

then, be planning our landscapes very carefully? In more

enlightened countries, landscape planning ensures that the

When the concept of Eco-Gozo was launched, one thought

conflicting demands, from agriculture to water resources

that this was a political decision in favour of a holistic

to utilities, are reconciled whilst allowing these areas to

“sustainable” approach to development and economic

also provide the public with the opportunity to be in touch

growth, at least for Gozo. However, in reality, subsequent

with nature.

decisions by the independent agencies of government

went their own way and promoted directions that

In Malta, even the concept of a national park is suspect.

contradicted what became a mere slogan.

The much-vaunted expansion of the Ta’ Qali National Park

turns out to be, in reality, an open-air mass concert space,

These are critical socio-economic issues that go beyond

complete with an underground car park for over 400 cars.

architecture or even construction and development.

Within urban areas, then, the status of “green” open spaces

These are problems that are unfortunately not discussed

is even direr. The current Local Plans do not envisage any

rationally and nationally. There is no mature political

“green” open spaces, which residents could enjoy without

debate, as contrasted to finger-pointing shouting

using a car to drive to the “countryside”. Could planners

sessions, on important issues such as tourism, or

envisage a network of landscaped open areas linked to each

transport, industrial policy, or demography. This type of

other by “green” corridors to encourage walking, running,

political discourse poorly serves us, and therefore the

even cycling without concrete or asphalt? Enlightened

decisions that impact sustainability are not part of a clear,

planning, more than legislation, is, once again, key.

long-term vision.

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

COVER STORY

DARIO SILVESTRI: The Founder of Tomorrow’s Education

Dario Silvestri is renowned for developing innovative models in academic training and generating investments in this sector and health services. As a performance coach, he’s worked with CEOs of numerous multinationals, the top players in Serie A and Premier League football, and other elite athletes. But now, his focus is on Malta, turning the island into an educational hub by setting up a new forward-thinking higher educational institute, Asomi College of Sciences (ACS). Dayna Camilleri Clarke caught up with the entrepreneur to find out more.

ACS is ultimately a dynamic global network with a Maltese base. 18

ISSUE 66

MONEY

COVER STORY

“ACS is aiming for an innovative approach

practical hands-on

to higher education. The intention is to

training required in

bring international students and collaborate

the world of work.

with local institutions. It’s here with these

There’s a gap here

partnerships, we can build a strong synergy,”

when markets

began Silvestri.

and changes are happening at

One may ask why the leading Italian

lightning speed, and

entrepreneur and not to mention the

we need to bridge the

bestselling author of the book “The Power of

gap. Moreover, the

Change”, has made the shift to the Maltese

ongoing growth in

islands to found a higher education setting;

new sectors requires

Silvestri is quick to explain, “I have to say I have

skilled people, and

always felt deeply connected to the islands,

it’s here where ACS

Malta is a place with an incredible history, and I

comes to the fore,

am sure it has a great future ahead. Moreover,

creating a truly

thanks to its multicultural and geographical

specialised workforce

position, Malta bears a strategic location

of the future,” replied Silvestri.

that has helped us to develop numerous training and professional opportunities for

that has grown its appeal to an increasingly international audience. Thus, I am positive

Acknowledging this is no easy feat, Silvestri

our students. They can attend different

that it will become an important central hub

added, “However, this preparation must

campuses and venues in Europe, get in touch

for international academic education and

be able to meet the highest academic

with dozens of partners, collaborate, and

conferences. I believe Malta is the place to

requirements with the most practical ones and

partake in several international internship

be, and it will be a place where innovation

fit closely to the market needs. For this reason,

opportunities. It’s ultimately a dynamic

processes will kick off, and where thousands of

at ACS, we have and will continue to develop

global network, with a Maltese base.”

people will converge in the coming years.”

degree programmes that prepare students effectively and solidly, giving them knowledge,

Despite its truly global reach, Silvestri

If anyone can bring about change, Silvestri

concrete skills and sharing values with them.

emphasises at the heart of the college

certainly has an impressive track record.

I guess you could say our mission is not only

remains the student-mentor relationship.

Recently he was granted a prestigious award

to promote innovation within the educational

“We mustn’t lose touch of the most important

from the Chamber of Deputies (Camera

sector but to provide practical solutions to

fundamentals of any new college, and

dei Deputati) in recognition from Italian

areas of the market, developing the concept of

that’s the students and the staff. We strive

institutions for the work completed in

global education.”

to provide continuous support for each student, so the focus remains on realising

innovation and development of the concept of “change” as an opportunity and not as a

ACS is MFHEA (Malta Further Higher

their full potential. The mentorship and

difficulty. Not forgetting his bestselling book

Education Authority) licensed and is a Higher

tutorship programs available to students

and attracting iconic clients such as Euro 2020

Education Institution accredited by the

are structured to support and inspire them

Champion Giorgio Chiellini (Juventus football

MFHEA. Courses cover various subjects, from

to build a valuable role in society. We believe

team player), to name but a few.

law, health and business to digital innovation

this will lead them to personal as well as

to degree programmes.

professional fulfilment. In addition, we have worked vigorously to recruit incredibly

But what makes ACS stand out from other local higher educational settings? “In my

About global education, Silvestri

talented lecturers, experts in their field, to

experience, I have found a discord between

continued, “The vision of ACS highlights

drive the college forward.”

traditional academic educational routes and

the commitment at an international level It may sound like a tall order to bring about such change locally and implement a new way of learning, but Silvestri is showing no signs of slowing down until his goal is met. “Hopefully, our graduates will become leaders capable of seizing opportunities through a broad vision that extends far beyond national borders, reaching worldwide

ACS College’s most representative lecturers. Left to right:

partnerships and networks”, he concluded.

Dr Carl Todd Osteopath, Chelsea F.C. and English National Football Team; Dr Ezio Adriani Orthopaedic Surgeon, Director of the Unit of Sports Traumatology and Knee Surgery; Stefano

For more information on the various

Ollino Head of Italian College of Design; Prof Gian Franco Gensini University of Florence,

courses and degree programmes, visit

President SIT and SIMMED Assoc; Prof Raymond Hruby Western University of Health Sciences.

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

www.acs-college.edu.mt.

URBAN DESIGN

URBAN DESIGN How important is it for cities?

Why is this unprecedented transformation of our environment happening so rapidly and, seemingly, uncontrollably, in front of our very eyes? Jacques Borg Barthet asks.

MONEY — ISSUE 66

URBAN DESIGN

ongoing redevelopment, fuelling construction speculation and ensuring a busy construction sector. The results are not only visually chaotic. They also subject communities in large parts of the urban area, including those areas that appeared to be primarily established, to a new round of construction work with all its associated consequences. Unfortunately, the critical role of urban design in this vortex has been ignored. Urban design is a complex, multi-layered, cross-disciplinary activity that brings together the practices of architecture, landscape, transport and planning. Its role in cities is fundamental to Many concerns have been raised, many

understanding the impact that planning policy

words have been written on the impact of

has on townscape, development density, and

development permitted by planning policy on

the public realm’s carrying capacity, starting

our townscape. The inordinate visual effects

from that essential element of public space –

resulting from fragmented plot structures

the street. Yes, you read correctly; the street is

and policy frameworks that allow increased

a public space!

building height in established urban areas

are popping up across social media almost as

Put simply, while private development is

quickly as they mushroom in the next street.

encouraged to run rampant over the urban

Why is this unprecedented transformation of

area (on the premise that private profits lead to

our environment happening so rapidly and,

a healthy economy that benefits all in the long

seemingly, uncontrollably, in front of our very

run), little is being done to assess the impact

eyes?

of that development in the broader townscape

and the spatial conditions of individual streets.

The reality is that while there exists a plethora

Moreover, few public-sector investments are

of policies that require contextual design,

being made to ensure that the infrastructure

‘soft’ (discretionary) policy instruments are

of the public realm in those same urban areas

almost always overridden by ‘hard’ measures

is suitably designed to create conditions that

that set numerical limits for maximum building

will improve the well-being of the people who

height. Unfortunately, it is the latter that is

live there.

widely interpreted as the ultimate rubber-

stamp for development permission regardless

Think of the street you live in. Is that street

of the contextual fit of the proposal.

pleasant? Are the views out from your building

onto that street attractive? Does the street

A seemingly innocuous change in policy

provide adequate safe spaces that encourage

guidance, where floor height limitations were

people to walk and cycle, allowing the elderly

converted from storey limits to a height in

and children to be suitably independent? Does

metres, combined with a review of the sanitary

it have trees that provide shade, support other

policy that reduced minimum internal heights,

species, capture carbon dioxide and slow

has created conditions that have incentivised

down water run-off? What does that street sound like? What does the speed of that street

Without a radical urban design revolution, we risk making Malta’s urban environment inhospitable for locals and visitors alike. MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

feel like? Do cars still dominate that street, »

URBAN DESIGN

its space, soundscape, the quality of its air? Are the pavements narrow and broken, and have its trees been removed in the interest of parking? As we zoom out of the specificity of the street, how does the network of streets and public spaces encourage movement using forms of transport other than the car? Is the

Milan’s Strade Aperte initiative involved the repurposing of thirty-five kilometres of roads into people-friendly streets.

urban environment safe, comfortable, and attractive? And if not, do we feel that we must resort to the car? How are we ever going to get out of this vicious loop? And before you say metro (or another less shiny form of public transport running on unobstructed routes that are better suited to our economies of scale), you would still somehow have to get to a stop or a station on foot, by bike, or otherwise. These are the kind of questions that anyone with an awareness of urban design will undoubtedly be asking when considering the current condition of the Maltese urban environment. The impact of development decisions that we are taking now, and have been taking for decades, is not limited to a visual aesthetic problem. It’s a problem about how all our senses interact with the environment. That problem cannot

awareness that urban development must be

without sufficient reinjection of value back into

be overcome without understanding how

about well-being first.

the quality of the public spaces we inhabit, we

whatever happens in the public realm results

will come to a point where there is insufficient

from a combination of decisions about land

The decisions that we make about cities are

value left for this generation and the ones

use, density, transport and social and green

critical to the well-being of our communities.

to go to work. The role of urban design in

infrastructure.

It is easily forgotten that a poor environment

understanding the impacts of value extraction

puts the greatest pressure on those most

and how sustainable value can be deposited

The lack of commuting demand, and the need

vulnerable, who are the least well off or have

into the urban economy has never been

for more space for people, both conditions

the least access to choice. What is the impact

more urgent.

created by the Covid-19 pandemic, allowed

of a poor urban environment on the physical

us to look with new eyes at the city and how

and mental health of children? How does it

all can better enjoy it. Traffic pollution levels

affect older people constrained to stay home

dropped in most cities. Several cities have

because the risk of injury from a fall on an

recognised the vital need for more public

imperfect pavement might mean the remains

open space and have increased their efforts

of a lifetime confined to a bed? What are the

to provide spaces for people while at the same

hidden social and economic costs of these

time limiting space for the car. Milan’s Strade

issues? How important is the public realm

Aperte initiative involved the repurposing of

to those whose private space is limited by

thirty-five kilometres of roads into people-

increasing costs and shrinking availability?

friendly streets. Paris is actively pursuing the

These are all issues with profound social

development of a fifteen-minute city, in which

but also long-term economic ramifications.

residents can meet their daily needs within

Without a radical urban design revolution,

fifteen minutes on foot or by bike. Barcelona

we risk making Malta’s urban environment

has been experimenting with a super-block

inhospitable for locals and visitors alike.

initiative where vehicular traffic is limited

to the periphery of urban neighbourhoods.

Mariana Mazzucato’s thesis on the extraction

Leading cities have responded quickly to the

of value from the economy inevitably comes

*Mazzucato, M. (2018). The value of everything:

new demands, with initiatives underpinned

to mind*; if we continue to allow value to

Making and taking in the global economy.

by urban design knowledge and increasing

be withdrawn from our urban environment,

Hachette UK.

ISSUE 66

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URBAN DESIGN

THE GRASS is ( NOT ) ALWAYS GREENER

Luscious green hills, mountains, forests, trees, rivers and lakes. A

chat with Paola Boarin, associate

beautiful, remote land, where it’s no wonder why “The Lord of the

professor of Architectural

Rings” saga has been shot here. Welcome to New Zealand, one of the

Technology and Sustainability at

“greenest” countries in the world.

the University of Auckland.

When I first moved here, I immediately noticed how much New

Paola, can you explain what is

Zealanders care about their environment: at the airport custom, you’re

“sustainability” in architecture?

asked to check your shoes if you’re accidentally carrying any trace of soil from overseas. Risk to contaminate the land with some alien disease

Sustainability comprises different

that can be deadly to the local flora and fauna. I was also impressed by

aspects like the so-called triple bottom

how locals seem to know - and care - a lot about their environment. The

line: social, economic and environmental. The

people I met could tell me the names of every tree and bird, and many

deal with is environmental sustainability. My research at the University

seem to spend their weekends exploring the great outdoors.

is about safeguarding resources, optimising buildings to use the

area I

least amount of resources possible, using renewable resources, and Wandering around, you will hardly see any litter: no papers or disposable

minimising the impact on the environment. In addition, I study the

plastic containers on the ground. Not even in the busy Auckland

relationship between architecture, humans and the environment.

business district. The beaches are covered up with beautiful shells,

not cigarette butts. Everywhere you go in New Zealand, it’s just clean

One of the projects you’ve worked on together with your team is

because the people here care.

called Future Cities. Can you please tell us something about it?

So, it didn’t surprise me when I realised that in 2017 the Parliament

Future Cities Research Hub is a research centre established within

decided to give the Whanganui river (sacred to the Maori people) the

the Faculty of Architecture, where I work. It aims to understand the

status of legal personality. Finally, the city of Auckland has been

complexity of cities better and find innovative solutions to urban issues.

appointed as the most liveable city in the world in 2021 by a global

The Hub promotes research collaborations and cross-disciplinary

report made by The Economist.

approaches; that’s why researchers were made up of architects, urban designers, and urban planners. An example has been the

However, I was shocked to learn that this cutting-edge country hides

neighbourhood of Hobsonville Point in Auckland. We designed this

another truth behind its green façade when it comes to sustainability in

residential area - an ex airport - considering elements like sustainability

architecture and construction. To know more about it, I had a pleasant

and innovation to create a “new” way of living for the average New »

ISSUE 66

MONEY

URBAN DESIGN

to go to have that cultural transition to bring other ways of living here. A paradigm shift is needed, but it will take time. The exciting thing we found out - through a survey - is that this model created a new sense of community among the residents of this area. The sure thing is that it has been a meaningful experience because it is an alternative to the existing model. While in New Zealand, there is a small population compared to the size of the country, in Malta, we are at the extreme opposite: a tiny island-state with probably too many people living on it with construction sites at every corner. Even though it is a very complex topic, how do you find a balance between seizing the opportunities offered by the economic boom and preserving the environment and the health of the citizens? The problem is complex, and there isn’t a straightforward answer. The conflict between economic growth and the protection of the environment is an issue many European cities have experienced from the post-war period. Some places have done it better than others. Others had a standard start (huge concrete buildings in the outskirts, concrete jungles and overbuilding), but they realised the mistake and started putting on urban redevelopment projects. Thus, many cities are going in the direction of a greener and more sustainable densification. Another important topic to mention here is regenerative design: sustainability aims to balance your impact and take. Regenerative Zealander: living in a densely populated area, with all services and

design is about giving back more than what you take away to fix the

amenities handy. To better understand this point, you must know that

mistakes made in the past. This approach is very doable for many cities

one of the most significant issues here regarding sustainable living

and shall be for Malta as well.

is urban sprawl. You can easily see how people live in this country: everyone in a massive house with 3 or 4 bedrooms, a big garden and

Ultimately, there should be top-down management that makes the rules

at least one garage. Homes are far from the city centres, and usually,

and can create a virtuous cycle. Then, whoever wants to build is obliged

nobody lives in a business district, where flats are just a few. Living in an

to follow those rules and generate more value and positive impact than

apartment is still a bias. This situation is possible because New Zealand

what it takes away. This kind of management could be - I think - the way

is one of the less densely populated countries globally, and there is more

forward to create a long-term system to redevelop the island.

than enough space for everybody. The average New Zealander doesn’t want to live “compact” and close to amenities: they prefer a big and

What are the differences between Europe and New Zealand in terms

quiet place and using their car to go anywhere. But this way of living is

of sustainable construction?

not sustainable. Urban sprawl increases energy use, pollution, traffic congestion and ultimately can risk the sense of community and social

There are many differences, and I think there is a tainted view of New

relations.

Zealand from the outside. Its “green” reputation is mainly because the country is almost as big as Italy, but with a ridiculous number of

With the Hobsonville project, we wanted to show how it’s possible to live

inhabitants: only 5 million. Apart from the “big cities” like Auckland,

differently, with sustainable densification and excellent quality of life

Wellington, and Christchurch, where most people live, all the rest is just

for the inhabitants. The experiment was just in part successful because

kilometres and kilometres of fields and nature, with no urbanisation. But

the good intentions had to face the market demand. It’s still a long way

New Zealand is not the cutting-edge country that most people think. The clear majority of the houses here don’t have any insulation, heating

Regenerative design is about giving back more than what you take away to fix the mistakes made in the past. MONEY

system or double glazing, despite being quite a cold country. Compared to Europe, New Zealand is way behind. Consider that it has one of the highest rates of people with asthma because of unhealthy houses. They’ve just started to pay attention to these topics: the new Building Code is under revision, and the idea is to shift towards more sustainable housing and living. They started to understand the problem late and didn’t have a solid approach to solve it. When I talk about these topics to my students, they don’t immediately get the sense of what I’m saying, as it’s visible that it’s not part of their culture. But when I explain the dangerous outcomes and possible solutions and alternatives, they start opening their eyes.

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

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PROMO

EXPLORING ALL AVENUES

Meet Jess James, founding partner at JAW Sustainability, who serves BREEAM advisors in projects such as Avenue 77.

How does BREEAM relate to

compound and formaldehyde

What makes BREEAM

projects like Avenue 77 in terms

content and flushing out of

certification distinctive?

of the quality of the project?

internal air before occupation to remove contaminants from

The well-established nature of

Avenue77 provides a distinct

the building process. BREEAM

BREEAM puts it ahead of other

work environment through all

also encourages the provision

similar standards. It also covers a

facets of its project lift, but

of outdoor breakout spaces and

vast range of criteria relating to

ensures that all environmental

ecology within buildings.

sustainability, ensuring a holistic

obligations are met and

approach to sustainable design

respected. Avenue 77 is working

What are the measurable

and construction. It is a robust

towards BREEAM Certification,

advantages of the project on

standard, pushing design teams

the Building Research

the environment, i.e. carbon

to go over and above regular

Establishment Environmental

footprint?

practice to demonstrate high-

Assessment Method, the longest

performance levels.

life cycle analysis advice. In

established rating system of

The Avenue 77 building targets

its kind. This will ensure that

a “BREEAM Very Good” rating,

Would you mind giving us a run-

BREEAM assessment, collating

the acoustic performance, air

putting it in the top 25% of all

through of JAW Sustainability

all the necessary evidence and

quality and distribution of natural

new buildings for sustainability.

and its involvement with

supporting the procurement.

lighting within the building is

Thus, energy and water use will

Avenue 77?

Finally, we will continue to work

always at its optimal.

be reduced below the standard

benchmarks. Energy and water

We have been providing

teams throughout the project

How does BREEAM improve the

use will be measured quarterly

consultancy services for the

until completion to ensure

overall living environment of

and reported for 3 years

Avenue 77 project from the

certification with the possible

people working at Avenue 77?

following an occupation as part

early stages, advising and

highest score.

of the ongoing requirements. In

guiding them through the

BREEAM incorporates a range

addition, a whole life cycle carbon

BREEAM process with the focus

Do you feel that the public

of health and wellbeing criteria

assessment will be undertaken for

of embedding sustainability

appreciates initiatives and

that actively promote more

the project as part of the BREEAM

into the design. This includes

certifications like BREEAM?

comfortable and high-quality

process, which will measure the

materials selection guidance

indoor environments. These

embodied carbon impact of the

and life cycle analysis, energy

The BREEAM criteria are well

include increasing the control

project’s construction.

modelling, and carbon reduction

known internationally. Particularly

addition, we are undertaking the

with the design and construction

users have over their environment

in commercial buildings, there is a

and enhancements to layout to

driver from potential tenants for

improving acoustic performance

buildings to achieve high ratings.

and maximising natural daylight.

They perceive that buildings

On top of maximising natural

will use less energy and provide

sunlight, all artificial lighting

higher quality environments. This,

incorporated will provide superior

in turn, will lead to lower energy

light levels. In addition, a high

bills, higher productivity and staff

level of indoor air quality will

retention. It is also beneficial for

be achieved by using finishing

occupiers of Corporate Social

materials with low volatile organic

Responsibility.

BREEAM incorporates a range of health and wellbeing criteria that actively promote more comfortable and high-quality indoor environments. MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

ACTIVISM

Moviment UNCOVERED

Dayna Camilleri Clarke caught up with Andre Callus from Moviment Graffiti to discuss all things activism and the changing shape of Malta’s social and physical landscape.

“You can print whatever you want. I say what I

our system. And that’s why this campaign has

believe, and I won’t hold back,” says Callus as

gained such momentum. We will continue to

we sat down to kickstart our interview. Callus

fight this injustice”. To date, a crowdfunding

has been an activist within Malta’s Moviment

page has garnered over €19,000 in a bid to

Graffiti for the last 17 years. Moviment Graffiti is

appeal the decision through legal means.

a left-wing Maltese organisation set up in 1994

“People are at the saturation point; our

with an increasingly growing support base

quality of life has hit rock bottom. Hours

for those not in the know. It is active against

spent in traffic, construction, dust and noise

the oppression and exploitation of people,

everywhere. There’s a genuine concern about

the environment and animals, and a vision

where this is all heading and frustration for the

of freedom and radical democracy - not just

constant unnecessary greed that surrounds

environment as is a common misconception.

us. It’s not a minor concept with two 18-storey towers and a 12-storey hotel on public land in Pembroke (the ex-ITS site).

Callus explained, “Moviment Graffiti is autonomous from any economic power or political party, but it regularly collaborates

What’s more, the site is in a residential area,

with other organisations that share its beliefs

and the project will impact critical historical

on specific issues. Therefore, there are no

sites and locations of outstanding natural

hierarchies in the organisation, it’s entirely

sensitivity. We need everyone’s help with this.

horizontal, and everybody’s voice is equal,”

Legal actions against such a massive project

explains Callus.

entail significant legal and professional fees that we will only sustain moving forward with

Callus was quick to dispel rumours of any

the public’s contributions. So, what’s even

political party in the making “It’s not our

the urgent need for such a development?

intention to take Moviment there. If we did,

Everyone is against DB’s monstrosity -

we would lose the space we have spent years

three Local Councils, several organisations

building and occupying. Change doesn’t

and thousands of residents and objectors.

always have to involve party politics.”

However, we cannot let big business and public authorities trample over the people’s will to protect its environment and quality of life.”

Asked about the controversial DB Group project on the former ITS site that was

recently green-lighted at a planning authority

What’s the solution other than legal fees

meeting, Callus replied, “This has to be the

to stop such projects? “We need a better

pinnacle of everything wrong right now with

distribution of wealth and equality. A strong »

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MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

ACTIVISM

economy is not economic growth. Ultimately,

What does the

we need a masterplan, and better regulatory

future hold?

bodies and enforcement. By that, I mean

Moviment Graffiti is

involving those without a conflict of interest

continuously striving

and not the rich get richer mentality. So, you

for change, Callus

could ask, in whose interest is politics being

said. The NGO hopes

done?”

that the authorities responsible

But isn’t the labour administration rooted in

for planning,

socialist values? “Perhaps they once were”,

construction, and

quips Callus. “What we are seeing isn’t about

the environment,

‘the people”. Moviment has rapidly gained

such as the Planning

momentum over the last few years, with an

Authority (PA), the

increasing number of members. Is this to do

Environment and

with social media? “Social media can be used

Resources Authority

cleverly to amplify our message and work, but

(ERA) and the

activism isn’t social media. It’s about being

Building Regulations

out there doing something on the streets with

Office (BRO), will

people. Not on a social media profile. We must

begin to manage

remain active and listen to people. We must

things differently in

When it comes to decision-making, priority should be given to people’s quality of life and wellbeing in Malta. also learn from the past; activism can be highly

a way that will safeguard people’s wellbeing.

innovative. Activism is about a collective force.

And not just for the environment, but for

Social media promotes individualism.”

workers too.

When asked about the recent FATF report

“Together, we hope for a system that serves

on Malta, Callus explained, “As a country, we

the ordinary people rather than contractors

should not be so reliant on financial services,

because a barrage of senseless and harmful

it’s an incredibly volatile sector, and locally we

construction projects have been approved by

need other industries to be better distributed.

boards composed of government appointees

We cannot be dependent on this growth

and developers”.

and financial services. In an ideal world, we wouldn’t even need economic growth. Why are

Callus concluded that Malta’s dire planning

we so fixated on the economy growing? The

and the environmental situation does not stem

focus should be on sustainability.”

from incompetence or carelessness but “Is the result of powerful actors pulling strings from behind the scenes. When it comes to decision-making, priority should be given to people’s quality of life and wellbeing in Malta. This is more important than paying attention to the few individuals who have political and monetary power. However, such improvements will only be successful if they are part of a broader and more significant change in the country’s institutional framework. Moreover, such changes can only come about if the government acknowledges the detrimental effects of its policies and actions”.

ISSUE 66

MONEY

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ENVIRONMENT

BUGIBBA MARCHES ONTO GOZO It’s been described as a siege, an assault, a rape. But irrespective of the name, the result is unmistakable: Gozo is steadily turning into something akin to Bugibba with rows and rows of five-storey flats replacing townhouses. Victor Borg investigates.

Block of flats ruining the neighbourhood of old windmill in Rabat. Photo by Daniel Cilia

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ENVIRONMENT

The statistics bear this out: more than twenty percent of

Gozitan mayors decried the policy of allowing five-storey

development applications for residential buildings are in

blocks in all of Gozo’s hinterland towns.

Gozo, even though Gozo only have around seven percent of

the national population. In real terms, the number of issued

But beyond the cordialities, the PA chief Martin Saliba and

permits has increased threefold in recent years, from 500

Farrugia have since both separately dashed hopes of any

in 2015 to about 1,400 in 2020.

policy changes. Saliba told The Times a few weeks later

that, on Gozo, you cannot just remove two storeys from

It is also evident in the townscapes, which are changing:

the height-limitation policy overnight – and added that

sprouts of blocks of flats are marring the traditional

the authority would pay greater attention to the design of

townscapes of churches rising above houses that spread

blocks in Gozo.

out around the churches.

Farrugia separately said that any policy changes could

There are two reasons for these waves of five-storey blocks

trigger claims for compensation that would cost the

of flats spreading throughout Gozo. First, a policy change in

country “billions”. However, established case law of the EU’s

2015 allowed buildings or apartments to rise to five stories

European Court of Justice and European Court of Human

(instead of four). This, according to planners, spurred the

Rights – these two have primacy over Maltese courts –

development of blocks of flats because landowners and

shows this to be fallacious. These courts have made it clear

developers could cram more flats on any given piece of land

that an owner’s or developer’s ‘legitimate expectation’ for

and hence make more money. Second, a recent fad for a

a development permit, and hence compensation claims,

pad in Gozo by Maltese residents has fuelled demand.

only becomes possible once a permit, or at least an outline

permit, has been granted.

Yet the frenzy of flats has become such a threat to Gozo

as we know it that, in an unprecedented move, all of

Yet this reaction from Farrugia reveals a sobering truth:

Gozo’s mayors united and called for a revision of policies

the government is politically and economically wedded

to save Gozo. The mayors are alarmed by the loss of

to rampant development and property sales. In fact, the

Gozo’s character and quintessential townscapes, the

building industry has continued to thrive throughout the

encroachment on the countryside by all this development,

pandemic, and the government has reduced the tax on

and the infrastructural headaches of having weekend

property transactions. These tax incentives have swelled

pads – congestion on weekends, and the tendency to put

the sale of flats in Gozo.

all waste in black bags (no separation of waste) and leaving

them on the pavements on Sunday afternoon causing the

Precious little is being spared in Gozo in the relentless

bags to get blown by the wind or attacked by stray cats

march of five-storey blocks of flats. A raft of policies

or dogs that rip open the bags and scatter the contents

that supposedly guide planning decisions holistically and

searching for leftovers.

dynamically is largely ignored by planning boards favouring

a narrow interpretation of height-limitation policies

In their meetings with the chairperson of the Planning

established in 2015. Permits for these flats are even being

Authority and Environment Minister Aaron Farrugia, the

given in Design Priority Area zones, created to bridge »

...in an unprecedented move, all of Gozo’s mayors united and called for a revision of policies to save Gozo. MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

ENVIRONMENT

...the number of issued permits has increased threefold in recent years, from 500 in 2015 to about 1,400 in 2020.

restrictive developments in Urban Conservation Zones (the

focused only on Gozo and a second indigenous NGO

core of villages) and the more permissive areas outside the

called Għawdix.

town centres.

One of Gozitan’s concerns is that the thousands of flats

Gozo’s scenic clifftops are also being shredded as these

sprouting at any one time, for which there is no local

flats spill down the cliff-edges despite a raft of policies

demand, are a property bubble that will eventually burst.

enshrined in the local plan that is supposed to prevent this

Gozitans fear that the bubble will burst when Maltese

from happening.

residents become jaded of weekends in Gozo and seek

to get rid of flats that would lie mostly empty – there is

Opposition to these developments is widespread in Gozo.

a limited market for flat rentals in Gozo. This could then

In recent weeks, two NGOs have been formed focused on

trigger a crash in property prices that will extend to houses

saving Gozo’s cultural and rural character – these are an

in which many Gozitans put so much pride and investment

offshoot of Din L-Art Ħelwa (Din L-Art Ħelwa Għawdex)

in, emotionally and financially.

ISSUE 66

MONEY

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PROMO

EMBRACING CHANGE

MONEY met with Maltese entrepreneur, digital media pioneer and PR guru Ray de Bono to learn more about his latest career moves, business and marketing viewpoints.

What triggered you to leave

agency to use animated graphics

your full-time job and start your

instead of stills back then. It was

own business?

a minor milestone. I have fond

memories of my work during

I left the Malta Freeport, where I

those years, the good, talented

headed the corporation’s training

people I met, the skills I learned.

centre in 1997 and started my

It was an exciting time.

company called Effects. It was a

difficult move, and I still miss my

Eventually, I moved out of the

buddies at the Freeport.

TV ads work and focused on

branding and web solutions,

When I started my firm, I had

which brought me to setting up

the opportunity to meet many

Dmax.tv in 2006. Dmax.tv grew

local companies in the fashion,

over a decade, making it one of

manufacturing and financial

the most innovative start-ups in

services sector. I was lucky, as the

its field locally, mainly promoting

timing was ripe for change. I had

permission marketing and digital

a good team behind me, and we

media services.

were eager to come up with new

concepts and, why not, to ‘shock’

Last year was a turning point

the system. It worked. At first, we

for me as I sold a major part of

focused on market research and

my business to a leading web

marketing plans, but eventually,

solutions company in Malta. So,

we moved from data gathering to

it was time for me to explore

marketing plans, from concepts

new avenues and take up new

to output.

challenges.

I set up a studio for graphics and

What did you learn from this

multimedia - one of the first in

experience?

the 90s Malta to offer web design and animated TV adverts. We

Looking back at my starting

dared push the envelope both

point in business, my advice to

technologically and content-

young start-up entrepreneurs

wise. We had our brushes with

would be to wait for a little before

the Broadcasting Authority and

jumping into the fray. Learn

ended up being censored a couple

about the basics of running

of times for reasons that today’s

a business, learn accounts,

audience would find puerile. Malta

acquaint yourselves with

was very different then.

essential finance skills like cash

flow planning, credit control

In the late 90s, most adverts

and budgeting. Focus on your

right away when giving credit.

I have been bitten, and it’s

appearing before or during

core talents. Keep studying.

Choose your partners well. Test

a hard lesson to learn when

major local TV shows like Ipokriti

Find a trusted business mentor,

people, ask around about them.

you’re still young and aspiring

or Simpatici were ‘stills’, just a

an experienced, older person,

Always remember that turnover

to start a family. It’s never easy,

caption picture with a voice-

to guide you. Meet your mentor

is vanity – profits are sanity. Keep

and mistakes can happen - you

over. We were probably the first

often. It pays! Do not trust clients

that in mind.

need to be prepared and take

ISSUE 66

MONEY

PROMO

precautions to avoid them where

Those curious about future

Malta needs to have a public-

catalysts for increased wealth,

possible. Never forget yourself

trends should keep their eye on

private initiative, an entity

which has played its part in

and your loved ones in the

Generation Alpha. According to

designated with the responsibility

helping the island through the

equation. Respect yourself. Do

leading experts, they are the most

of helping manage Malta’s identity

pandemic and afford its massive

not work for people that do not

highly educated and technology-

across all fields in consultation

expenses on the nation’s coffers.

respect you or pay you well.

savvy generation, and globally the

with a team of multidisciplinary

most affluent.

experts, people from as broad a

Tourism, real estate and the

You are good at building

spectrum of areas such as artists,

manufacturing sectors are

contacts overseas. You’ve had

The Alpha types are expected

architects and marketers to

traditionally trendsetters where

clients in South Africa, Israel,

to prefer the virtual world to

policymakers, finance experts and

marketing and innovation are

Ghana, Germany and the UK.

the real one. With technological

legal gurus. We cannot afford to

concerned. However, I see

At one point, your companies

advancements, such as AI,

get this wrong.

massive room for improvement

had offices and staff in the

drones, self-driving cars,

in Malta regarding how some

UK and Germany, and you are

intelligent 5G smartphone apps,

We need to reclaim our

companies manage their image,

a shareholder in a Ghanaian

and increased gamification, the

forefathers’ sense of national

especially their digital content.

publishing house. What are you

future is increasingly digital. I

pride. Let us make mediocrity

up to now?

cannot see how banks, insurance

a thing of the past. Instead, we

A nations’ sophistication must

companies, government agencies,

need to work together to assist

encompass both the public and

I don’t wait for the opportunities

businesses and even the state

our country in rebuilding its image

private sector - no one should

to arise; I look for them. I travel

itself can remain relevant without

at home and overseas and winning

stay behind. So why can’t we

whenever I can, and I make new

having a well-tuned marketing

back much-needed trust.

look and feel more like the rest

friends, build my networks and

and digital media strategy in

of Europe? Returning from a

exchange ideas. It all about

place.

I am confident that the current

short trip to Amsterdam, Berlin

networking, and the broader your

greylisting scenario is only a

or Madrid, one immediately

reach, the better the chances and

A marketer nowadays has a

temporary setback. All hands

realises that Malta has a lot to

opportunities you come across.

broader range of responsibilities

must be on deck to ensure that

catch up with.

and tasks; it’s a mix of technology,

our country reclaims its position

I am now focusing on clients

analytics and psychology all

as a land of opportunity and

It’s sad and frustrating to see so

looking to restructure their

in one. It is less about images

investment again.

many deficiencies in our urban

business development; I help

and more about emotions,

infrastructure: the limited means

them develop their marketing

engagement and gratification.

Nation branding is not about

for mass transport (still no metro,

and digital media strategy,

having a glossy and cool website

trams or monorail facilities), the

explore new markets. In an

Today’s hottest brands (and here

that ill reflects the actual

inconsistency in quality, design

increasingly data-driven world,

I include a nation’s identity and

product. We hope to see improved

and condition of our roads’

I see considerable opportunities

soft power potential) must be able

infrastructure compared to the

signage, and the ubiquitous, ugly

in harnessing PR, digital/social

to offer more than just physical

rest of the Schengen area; we

limestone-clad architecture of

media and sales efforts to help

products or services; they should

need improved environmental

post-1980s that acts as a sad

businesses build lasting client

radiate experiences, emotions and

standards with more clean open

backdrop for our life in Malta - if,

relations and more substantial

a story with which one aspires to

spaces, better building aesthetics

like me, you are based on the

brand equity.

associate with.

and proper enforcement at all

island and a little OCD, thinking

levels – including on our roads and

of all these issues can, at times,

How do you see marketing

Finally, do not underestimate

at our workplaces.

drive you up the wall.

developing worldwide?

influencers’ power, especially (but

not only) as far as the Alpha types

What about the private sector

But hey! I’m an eternal optimist.

are concerned.

and the like as a marketer on

Yes, I believe that Malta is a

the rock?

work in progress, although, to

It seems that data gathering will remain central to our work as marketers and CEOs. We are

What are your thoughts on

blessed by so much data, and

present Malta?

this makes today’s marketing a

be honest, it would help to know The finance and gaming sectors –

who is in charge, where we are

though distinct from one another

heading and what the road map

completely different ball game.

Where do I begin? Malta has

- have helped shape the Maltese

is like. To hell with tribal politics.

It’s all about numbers and

immense opportunities, but it

economy by sophisticating it

Malta’s future is brighter than

identifying trends; social media,

must start by addressing its soft

through legislation, marketing

ever.

Search Engine Optimisation,

power potentials to make the

and digital innovations. They

Google Analytics and national

much-needed quantum quality

have also acted as a magnet

Let us regroup and work as one

media surveys are critical to how

leap ahead as a European nation

for creating an exciting, more

nation because we will achieve

decisions are taken inside our

in the 21st century. Unfortunately,

cosmopolitan workforce.

better results by mustering our

boardrooms.

we are already very late.

Moreover, these sectors were

skills and resources.

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

R E J U V E N AT I O N

URBAN REJUVENATION Theo Dix explains why the pandemic has provided an opportunity for many of us to rethink our priorities. What we need, what makes us happy, and what needs to change? And a green urban revolution for starters.

When will life return to normal? This is a question many of us

essential things, time and space, to improve the quality

have pondered intensely over the last 15 months. Yet much

of life.

of the normality we yearn for relates to civil liberties and social interaction – the end of restrictions on gatherings,

Time essentially relates to mobility and counteracting the

the need to no longer wear masks, and the ability to travel

impact of commuting, cars, emissions and congestion on our

easily and freely beyond Malta’s shores. On the flip side, the

lives. The focus here is on ensuring everything we need is

pandemic has provided an opportunity for many of us to

near, thus enabling the transformation of streets into spaces

rethink life’s priorities – what we need, what makes us happy,

for walking and cycling, surrounded by plants and trees,

and what needs to change?

to enhance the attractiveness and relationships with the places we live, and stop people going “in search of greenery”.

Across Europe, citizens are calling for an urban planning revolution. They want more public and community spaces,

The second area relates to transforming urban space from

green areas, pedestrian zones and cyclic routes to enhance

mono-functional specialised areas to provide six essential

environments and improve quality of life. Several mayors

urban social functions within close vicinity: living, working,

of prominent European cities have headed these calls and

supplying, caring, learning and enjoying; underpinned by a

embarked on ambitious urban planning experiments. One of

new generation of public services, multimodal and shared

the most notable is the concept of the 15-minute city, which

services which harness digital technology. Cities such as

seeks to “reconcile the irreversible development of an urban

Melbourne, Copenhagen, Utrecht and parts of London and

world with crucial needs for real quality of life”.

Oxford have adopted similar concepts, and other cities such as Milan and Paris are starting to follow suit.

Developed by Professor Carlos Moreno at the Sorbonne in

Paris, it centres around every citizen having all the services

Paris Mayor Anne Hidalgo has given the go-ahead for

they need within a 15-minute walk or bike ride. The concept

plans to transform the city’s Champs-Élysées into an

was derived from the need to be creative and imagine,

“extraordinary garden”, a 1.9 kilometre stretch of greenery

propose and build another pace of life by transforming two

featuring tunnels of trees, green spaces and pedestrian

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It is high time that Malta brings the concept of urban planning to the fore and does so with an open and future-focused mindset. zones. The city will also be installing up to 650 kilometres

Malta needs to adopt some blue-sky thinking towards

of temporary and permanent bicycle lanes as part of its

urban planning to fix the mistakes of the last few decades.

Plan Vélo scheme, which aims to create a bike lane in every

This thinking needs to be underpinned by a realisation

street by 2024 and remove 60,000 parking spaces for cars.

that aesthetics and quality of life are core drivers of

In addition, main roads through Paris will be inaccessible

value. The way we live, work, and move need to form

to motor vehicles, “children streets” will be created next

the foundations on which such planning is developed,

to schools for term time, and the schools turned over to

considering population trajectory and economic activities.

residents during weekends and holidays to use the sporting The Paris plan has recently given renewed impetus

facilities and playgrounds.

to transform Saint Anne’s Street in Floriana into a It is high time that Malta brings the concept of urban

pedestrianised green space for social activity. A similar

planning to the fore and does so with an open and future-

concept to green and pedestrianise Hamrun is also

focused mindset. The country’s population increased

gaining traction, inspiring others to think about how

by 24% over the last decade, reaching 515,000 in 2020,

the towns they live in can be enhanced. Apart from the

driven mainly by a significant influx of foreign workers. In

aesthetic benefits, such projects can drive large-scale

addition, the tourist number more than doubled across the

social, health, and economic benefits. In addition, they

10 years running up to 2020. These trends have fuelled a

often lead to new commercial opportunities which

construction boom, resulting in haphazard development

complement the increased levels of footfall, alongside

across every town and village on the island, guided by a

extensive investment to develop the projects. They are

hodgepodge of short-term planning policies to support and

proven to drive up property values in the areas whilst also

enable development.

enhancing tourism.

It is clear that if things don’t change, the uglification of Malta

A review of Malta’s Strategic Plan for the Environment

will continue unbridled, and the environment and quality of

and Development is currently underway. Let’s seize the

life in our urban environments will deteriorate further.

opportunity before it’s too late.

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

R E N O VAT I O N

RENOVATION REGENERATION RECOVERY The Green Deal is touted as Europe’s industrial policy and seen as a powerful vision and policy tool to steer the green transformation across various industries, including but not limited to construction and building. Therefore, Malta most definitely should follow the principles and thinking laid out in this strategy as the local construction and real estate sector remain ripe for transformation. JP Fabri explains.

MONEY — ISSUE 66

R E N O VAT I O N

There is no doubt that construction and

The Renovation Wave seeks to improve the

automatically. A whole ecosystem needs to

real estate remain a significant economic

quality of life for people living in and using the

be developed to happen, and education and

contributor, although the direct contribution is

buildings, reduce greenhouse gas emissions,

training will be an essential cornerstone.

possibly underestimated in national accounts

promote digitalisation, and enhance the reuse

As a country, we need to ensure that our

due to several reasons. However, we need

and recycling of materials. It will focus on

educational systems are aligned to this vision,

to start seeing the industry and sector with

action in three core areas; the decarbonisation

and more importantly, we are preparing

a broader lens and embrace a clustered

of heating and cooling, tackling energy

workers for the future with the right skill

approach. Construction needs to be seen as

poverty and worst-performing buildings

sets that can support this green transition.

a whole lifecycle process from quarrying to

and renovating public buildings like schools,

Schemes to support reskilling and upskilling

finishing but also needs to include the ancillary

hospitals, and administrative buildings.

need to be designed as well as systems of vocational certification and training.

services, including M&E, landscaping, smart buildings, real estate services, maintenance

The strategy will include several lead actions,

and more. It is time that, as a country, sectors

some of which should definitely be picked up

Fourth, expanding the market for sustainable

are not seen as silos but as organic clusters.

by the Maltese authorities.

construction products and services, including integrating new materials and nature-based

The coming together of all components will ensure that the sector can transform itself,

The first looks at setting stronger regulations,

solutions, and revised legislation on the

reach new quality standards, provide value

standards and information on the energy

marketing of construction products and

to society, and ensure that such value is

performance of buildings to set better

material reuse and recovery targets. Here

sustainable.

incentives for public and private sector

the concept of a circular economy has great

renovations, including a phased introduction

potential to develop economic activity through

As the sector transforms itself to embrace

of mandatory minimum energy performance

the reuse and recycling of construction and

new construction methods and building

standards for existing buildings, updated

demolition waste. This would also be a direct

materials for new projects, there is a unique

rules for Energy Performance Certificates

answer to Malta’s challenges in this area.

opportunity in renovating existing buildings

(EPC), and a possible extension of building

The formulation of reconstituted stone can

and in regenerating abandoned dwellings.

renovation requirements for the public sector.

support the environment and sustainability

Apart from the direct economic impact,

Although the EPC was introduced in Malta, it

through its energy-efficient characteristics

these considerations also have substantial

has not triggered the wave of energy audits

and create new investment and employment.

sustainability impacts. In fact, given this, the

that one would have expected. Therefore,

Fifth, the digitalisation of the sector remains

European Commission, in its Green Deal, has

it is imperative that a new wave of focus on

critical for sustainability and energy efficiency.

placed renovation as an essential pillar of its

EPC and energy efficiency audits is started to

The proliferation of AI, IoT and digital tools

strategy.

ensure that buildings are truly energy efficient.

contributes to making buildings smarter in

The definition and launch of national building

terms of energy management, efficiency,

codes should also be linked to this concept.

and sustainability. However, as much as it is

On October 14, the European Commission (EC)

essential to incentivise new developments

published its new Renovation Wave Strategy to improve the energy performance of buildings.

Secondly, ensuring accessible and well-

to go down the smart route, it is even more

It aims to double renovation rates in the next

targeted funding, including through the

critical to support the retrofitting and the

10 years while ensuring that renovations lead

‘Renovate’ and ‘Power Up’ Flagships in the

renovation of existing buildings. Here, Malta

to higher energy and resource efficiency.

Recovery and Resilience Facility under

has a unique opportunity to start a new wave

According to the EC, 35 million buildings could

NextGenerationEU, simplified rules for

of investment in the existing building stock,

be renovated and up to 160,000 additional

combining different funding streams, and

renovate it, and ensure that such buildings

green jobs created in the construction sector

multiple incentives for private financing. Here,

become more energy efficient.

by 2030. Such energy-efficiency renovations

authorities need to try and find ways in which

are considered crucial for making Europe

the construction sector can access funding

As can be seen, the construction sector is

climate-neutral by 2050.

schemes to support its transformation. For

ripe for transformation. So is the real estate

example, the scheme to replace equipment

sector. As a country, we need to start thinking

with more energy-efficient ones was well-

in terms of a building and lifestyle cluster

received. Several other tailored schemes to

whereby all the different components are part

help developers renovate and regenerate

of a broader system. The Green Deal should

buildings and make them energy-efficient

serve as a guiding light for authorities to

should be considered.

follow and implement the critical action points

[the EPC] has not triggered the wave of energy audits that one would have expected. MONEY

locally. In addition, accessing such funds to Thirdly, increasing capacity to prepare and

finance such initiatives should be a national

implement renovation projects, from technical

priority. As we continue to chart our recovery

assistance to national and local authorities

with the premise of building back better,

through training and skills development for

we need to start from our current position.

workers in new green jobs. The transition

Renovating and regenerating the existing

to a greener economy will not happen

building stock should be a national priority.

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

MARKET INSIGHT

STATISTICS KEY TO A HOLISTIC FRAMEWORK Leonid McKay, CEO of the Housing Authority, and Brian Micallef, manager of the Economic Research Office of the Central Bank of Malta, share statistics on the private rental market.

The private rental market in Malta has

contracts with the Housing Authority in its

set up by the Housing Authority, to provide

expanded significantly over the past

new capacity as the regulator of the private

technical assistance in analysing the

decade. The Private Residential Leases Act,

rental market.

statistical database. In addition to the Central Bank of Malta, the Rent Observatory comprises

which came into effect on 1 January 2020, introduced a set of basic minimum standards

A total of 30,483 lease agreements were

a multi-disciplinary team of experts with a

reflective of any modern rental market,

registered during the first year of operation.

background in economics, legal, statistics and

which was, up until then, operating in a

Analysing all this information is no simple

housing policy to analyse and scrutinise the

quasi-complete regulatory vacuum. Among

task. Therefore, a small group of economists

rent registration framework.

its main provisions, the reform mandated

from the Central Bank of Malta were invited to

the registration of private residential rental

participate in a Residential Rental Observatory,

ISSUE 66

The 2020 Malta Residential Rental Study

MONEY

MARKET INSIGHT

provides an in-depth analysis of all data

framework that considers the complex

gathered in the first year since introducing

interaction between rents and the properties’

Economic research on housing at

the latest rent reform. This information

characteristics. Location, property size, and

the Central Bank of Malta

complements other sources of information

the type of property and lease were all found

on this sector, which – though informative –

to be essential determinants of rental prices.

tends to be outdated or incomplete and thus

Rents are the most expensive in the Northern

The Central Bank of Malta has a long

provides a more detailed and complete view of

Harbour – registered rents in the other regions

history of monitoring developments in

the private rental market in Malta. Therefore,

of Malta stand between 20% and 28% lower

the housing market in Malta. The Bank

for the first time, we have a clear snapshot

than this region, while rents in Gozo are 44%

was the first institution to develop a

of the characteristics of the properties

lower. However, rents differ significantly

property price index for Malta, which

registered for rent: how they are spatially

across localities, even within the same region,

is still being updated and published

distributed around the Maltese islands; the

with the most expensive rents found in Sliema,

quarterly.

rent paid per month; the types of properties

Ta’ Xbiex, St Julian’s and Swieqi.

for rent and their size; the kind of lease and the

The housing market features regularly

contract duration; the number of occupants

As expected, larger properties command

in the Bank’s publications, both for

in each property and the nationality of the

higher rents. Two- and three-bedroom units

economic analysis and financial

lessees. Most of this information - most of

– which together make up three out of every

stability purposes. Indeed, in the last

which was not previously available - is crucial

four properties in the market – stand around

few years, economists from the Bank

if policy decisions are to be empirically based.

26% and 51% higher than a one-bedroom unit.

have published several analytical

Larger properties with four or more bedrooms

and technical studies related to the

This granular information from registered

are even more expensive, with rents that are

property sector in Malta. Examples of

contracts allowed us to develop a holistic

68% higher, though these properties tend

these studies include the development

to be quite scarce. Shared space leases,

of an econometric model of the housing

which account for around 7% of all contracts

market in Malta, estimates of property

Descriptive Statistics on the Private

registered by the Housing Authority, are

price misalignment based on their

Rental Market in Malta

approximately 74% lower than long leases

fundamentals, estimates of the housing

(mandatory one year or more).

supply in Malta, the development of alternative indices using mortgage and

And how did registered rents evolve in

advertised granular datasets, as well as

2020? We found that rents were increasing

in-depth studies on selected segments

in the first quarter of the year but started to

of the market, such as the private rental

decline after that as the adverse impact of

market and the short-term rental sector

the COVID-19 pandemic on registered rents

using data from Airbnb listings. In

began to be felt after April. Further downward

addition, the Bank regularly participates

12%

pressure on rents was recorded towards the

in domestic and international fora

end of the year. Furthermore, insights from

related to the housing sector.

Number of Registrations in 2020:

30,483

Property Type: Apartment (Flat) House Maisonette Other

78% 8%

the results of a survey commissioned by the Housing Authority to assess the impact

Region: 6%

of COVID-19 on both tenants and property

Northern

25%

owners, which is documented in the study,

Northern Harbour

45%

was only possible thanks to the information

South Eastern

10%

available from the register.

Gozo and Comino

Southern Harbour

Western

Number of Bedrooms:

www.centralbankmalta.org

€1,086 in March 2020 to €963 in December 2020. Thus, from now on, this framework can

Finally, this framework can calculate the

be used to construct an index for registered

monthly rent in euro while accounting for the

rents in Malta, which at present is unfeasible

property’s characteristics. For instance, after

due to the absence of data gathered over a long period.

1 Bedroom

20%

adjusting for various property and contractual

2 Bedroom

42%

factors, the price of a three-bedroom

3 Bedroom

34%

apartment in Sliema with a long-let lease stood

Overall, this information opens exciting

at €1,188 in January 2020, while a similar unit

avenues for research and policy applications,

in St Paul’s Bay and Gżira commanded a rent

both economic and social, which were

of €665 and €963, respectively. Alternatively,

previously difficult to conduct in the absence

one can use this approach to assess the

of detailed information on the rental market.

4+ Bedroom

Type of Lease: Long Lease

92%

Shared Space

evolution of rents for properties with similar

Furthermore, this information will assist the

Short Lease

characteristics over time. For example, the

Housing Authority and other institutions

rent for an average two-bedroom apartment

and analysts to monitor more closely

in St Julian’s with a long lease declined from

developments in the private rental market.

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

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PROMO

GREY LISTING A TIME TO ACT The 25th of June 2021 marks

challenging to attract businesses

the date when Malta has been

to Malta.

placed on a list of jurisdictions that require increased monitoring,

Essentially, addressing the FATF

also known as the “grey list”. As

action points without looking

daunting as this might be, like

beyond them would be futile in

any other negative thing that has

making Malta yet again attractive.

and will have its consequences

Instead, the FATF action points

on this country, we must retain

should be coupled with a change

an optimistic outlook, identify

in mentality, looking beyond

wrongdoings, surface them

immediate gratification and

(unless they have already

creating a sustainable industry

emerged), address them, and

based on effectiveness and

come back stronger.

technical competence principles.

Failing to assess what brought

Long-term sustainable growth

us here or looking at the other

may not be achieved unless we

side of things that brought

focus our energies on improving

us down would be foolish in

our human resources, essentially

the light of speeding up our

implying that our educational

journey to exiting this list. So,

system needs to be tailored with the end in mind, that is, creating

let us call a spade a spade: both the public and private sectors

necessary pillars to work on and

Effectively, as a professional

top professionals in thriving

have contributed to different

adopting a consultative approach

working in the financial services

sectors.

extents towards making Malta

in reaching the objectives of

sector, I feel that the excessive

a less attractive jurisdiction for

such pillars.

bureaucracy in the relevant

From the private sector’s

financial institutions and the

perspective, we should be

foreign investors, so I feel both sectors should work together,

Other than addressing what FATF

lack of technical expertise in

looking at attracting the right

hand in hand, in making this

has requested us to address,

these areas has led the financial

kind of clientele, finding ways

right, whatever it takes. This

we need to go beyond this and

services sector to adopt a tick

to continuously level up our

should create an opportunity

understand the needs of foreign

the box approach, hence making

services without cutting corners,

to strengthen the relationship

investors and what has been

Malta very impractical and

continually investing in talent,

between the private and public

making Malta unattractive before

consequently slow in execution.

and constantly improving and

sectors by identifying the

being officially placed on the list.

Thus, it has become extremely

enhancing our expertise.

Matthew Zampa is a founding partner at Zampa Debattista and a certified public accountant specialised in indirect taxation. He has been specialising in VAT since 2008 and has been involved in complex VAT assignments both within and outside of Malta. Matthew, a member of the Malta Institute of Accountants, is also a part-time lecturer with the Malta Institute of Taxation. [mz@zampadebattista.com] | (+356) 2235 0000

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

FINANCE

50 SHADES of GREY As a nation, we need to understand the real consequences we might be facing shortly and what the greylisting means amid statements that brushed off the risks. Jordan Portelli writes.

We knew that our reputation was already

set up secret offshore companies. All this

tarnished with the recent evolving corruption

happened over three years.

cases, scandals that triggered uneasiness

on Malta’s governance and sanity. We were

Let’s be frank. The greylisting decision is a

damned by the Venice Commission on the

consequence of long-delayed reforms which

rule of law. We were on the brink of failing the

previous and current administrations should

Moneyval test - the permanent monitoring

have consciously and responsibly taken more

body of the Council of Europe entrusted

seriously over the years. Thus, the recent

in assessing whether a country compliant

political saga has not entirely conditioned, but

with the standards to counter money

the never-ending novel has indeed weighed.

laundering, namely. We are now greylisted

by the financial action task force (FATF), the

Many might argue that the recent greylisting

intergovernmental organisation that combats

decision might be ratified once Malta

money laundering and terrorism financing.

implements the necessary reforms. Iceland,

The latter was the final nail in the coffin for

we will manage to be removed from the grey

our reputation, which can cost dearly to our

list very soon, hopefully. Others continue to

economic sustainability going forward.

politicise and try and gain political points from

the current situation. However, many fail to

The preventable turned inevitable.

understand the gravity of the problem and

Undoubtedly, the FATF decision was also

how this can perilously trigger a downward

conditioned by the wave of international

ripple effect on economic sustainability.

criticism over the past years, namely on

Maltese policymaking. Malta was criticised for

First and foremost, the much-needed reforms

the sale of national passports. The European

and their implementation are imperative,

Union pressured it on the rule of law and a lack

independently of Malta’s greylisting.

of legal action against government officials

Realistically speaking, inevitably, the FATF

mentioned in the Panama Papers as having

decision continued to aid in hindering »

ISSUE 66

MONEY

FINANCE

further Malta’s reputation. We might sound too negative, but we need to understand that reputation today is key to a nation’s economic success or its failure. As a nation, we need to understand the real consequences we might be facing in the coming days. Over the years, the abnormal growth figures registered by Malta were amongst others supported by the financial and gaming industries. Both industries contributed remarkably to the growth of other sectors, such as the real estate market, corporate services, the hospitality and leisure markets, and other sectors, which ultimately all contributed to Malta’s economic success. Today, simply put, the sustainability of the said success is at risk. That risk, in turn, also implies possible job losses. Realistically speaking, a gaming company holding a Maltese license will continue to face difficulties for its banking

significant

solutions. Likewise, financial services

reduction in

companies will face challenges in maintaining

capital inﬂows as

their correspondent banks or their custody

investors shifted funds from

business.

the affected countries. Thus, now that Malta

In my view,

is greylisted, we might not be immune to

this is the

experiencing a similar trend.

biggest challenge for

the government, apart from the necessary

The truth is, one can’t ignore that the current

reforms which need to be done in a speedy

administration has taken significant steps

but diligent manner to be removed from the

in enacting constitutional reforms primarily

greylist. The former is critical in safeguarding

concerning the rule of law. Nonetheless,

the economy in the short term, while the latter

from the reputational

although these reforms are imperative, the

is a medium to long term prerequisite for

issues, there is also

country’s reputation might have experienced

growth and sustainability. As a nation, this is

a cost element.

irreversible damage. In its review dated 30th

a life lesson that should also alter or improve

The increased

June this year, Fitch ratings stated that ad

our mindset. Over the years, we have made

monitoring, namely

interim doesn’t see any immediate effect from

remarkable progress; however, we might still

on anti-money

greylisting. However, it highlighted that such a

be lagging in selective areas. Reputation is a

laundering (AML)

decision could have a severe impact on Malta’s

shortcoming, which, if not fixed, the good old

brought about by the

reputation. As previously said, reputational

days of abnormal economic growth amongst

risks have been mounting since the Panama

our European peers might be just a memory of

papers revelations. It is no secret that if

the past.

and administration solutions. Others might lose their foreign investors as they might want to disassociate themselves from a greylisted country due to reputational issues. Furthermore, apart

greylisting, implies that if it wants to retain or have a business relationship, it would need to assess more diligently a company’s policies and practices on AML. A cost that might eventually

steps were taken at the time, we would have mitigated the burden on our reputation. From now on, the crux of it all is how we will

not make business sense.

manage to at

least retain

Ironically, in May this year, the International

existing

Monetary Fund issued a working paper on how a country can be affected due to greylisting. The study shows a large and statistically

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

POLITICS

SACKING MALTA AND GOZO In March 2019, four months after the world learnt that Yorgen Fenech owned the company that Keith Schembri and Konrad Mizzi’s accountants told Mossack Fonseca was their “target” to pay them, with others, $2 million for no reason whatsoever, the chief executive at the Planning Authority, Johann Buttigieg, was exchanging text messages with the same Yorgen Fenech. Manuel Delia investigates.

We learnt that Yorgen Fenech told Johann

left the Planning Authority.

Buttigieg that another tycoon owed him money.

‘What project of his should I take over?’ But,

Others were also exposed for the damage they

of course, there would be a reward for that

were doing while still running things at the

advice. ‘I’ll split the project with you.’ ‘This one

Planning Authority.

belongs to you,’ Buttigieg told Fenech. What

an upright man. ‘I’ll go into business with you

Consider Matthew Pace, since charged with his

anywhere (else),’ he went on as they discussed

most famous client Keith Schembri for helping

workarounds for Yorgen Fenech’s other major

him stash money, neither one could explain.

planning applications.

In 2013, he was appointed on the Planning Authority board. He proceeded to set up a

When the text messages emerged in the public

real estate agency and acquired the Re-Max

consciousness, Johann Buttigieg had already

franchise. And he used his agency to advertise

ISSUE 66

MONEY

POLITICS

and sell apartments in St George’s Bay that

This has been happening all over the business

existed yet only in the imagination of one Silvio

of the Planning Authority. Year after year, they

Debono.

admitted that policies on petrol stations needed

updating. Year after year, they processed

The DB tower in Pembroke was still due to

and approved applications for petrol stations

be discussed (let alone approved) by the

without a policy in place that could have, would

Planning Authority board. But, when it came

have, should have restricted them. Petrol

to it, Matthew Pace voted to have it approved.

stations are just an obvious example. The

Conflict of interest? He didn’t think so.

problem is far more structural, endemic within

the system.

Campaigners sued, and the Planning

Authority’s first attempt to allow the DB

When Labour came to power in 2013, they

monstrosity to be built was struck down. Thus,

instructed the Planning Authority to revise

Matthew Pace was forced to resign.

Local Plans. These documents, in principle,

should guide land use and place every single

Alfred Pule replaced him. Pule had not sat on

plot of land into a broader, logical context. The

the Planning Authority board for more than

revisions were ready by 2015, but they were

a few weeks when he voted to approve an

never published. They’ve been gathering dust

application by Joseph Portelli, the Gozo-based

since, while the Planning Authority churns

tycoon. The latter owed Yorgen Fenech money

out permits in breach of existing Local Plans

to turn a long-abandoned room overlooking

because, of course, the existing Plans are

the cliffs of Qala into a sprawling villa. It later

irrelevant purely because they’re a quarter of

emerged Pule and Portelli were in business

a century old, and this is now an altogether

together, erecting a “blokka fletsijiet” that

different country.

ruined the aesthetic harmony of a classic street

in Ħal Lija. Thus, Alfred Pule was forced to

When the departure from the Plans is so radical

resign.

that the Planning Authority cannot bring

itself to approve it, people with the right sort

On the same board sat Elizabeth Ellul. Her

of access get Ministers to fix the problem for

husband works as an architect for Joe Portelli.

them. So, we’re back to Yorgen Fenech. One

But, again, the conflict of interest was not

fine morning, part-owner of industrial land

declared.

in Mrieħel, he walks into the office of Michael

Farrugia, then Minister for Planning. A coffee

Quite apart from conflicts of interest which

and a handshake later, he walks out part-owner

are wilful breaches of rules, the best tool in

of land on which a row of sky-scrapers bang in

the opaque wielding of power in the context

the middle of the island could be, and are now

of what should be a rule-based system is the

being, built.

undermining of those rules by design.

The Planning Authority is, then, entirely

Consider again Elizabeth Ellul’s vote to approve

misnomered.

Joseph Portelli’s decadent villa in pristine

countryside. The decision was based on rules

There is no “planning”. Old plans are ignored,

under pressure from the press after the vote,

and new plans are mostly shelved. The plans

which she admitted needed updating. Her

that do see the light of day are either too slack

defence then was that with the tools she was

to have any meaningful use or published too

given, she could not do much better. Except she

late, slamming the gate long after the horses

had written those rules. Just three years earlier.

have bolted. »

I use the term ‘Sack of Malta’ advisedly because it replicates the model of the sack of Palermo in the 1950s and 1960s. MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

POLITICS

Consider an interview given recently by

the 1950s and 1960s. Then, the elegant Baroque

published as approved law in 1962.

Johann Buttigieg’s successor, Martin Saliba.

city, surrounded by citrus groves and a picture-

He rebranded the uglification of Malta as its

perfect landscape, was transformed into the

In the meantime, ad hoc permits for demolition

modernisation, and he legitimised the greed

haphazard concrete jungle that gives Sicilians a

of elegant buildings from the late 19th and

of over-development as an expression of

sickening melancholy to this day.

early 20th century were rushed through the

people’s sacred and democratic right to do as

town council often days before the buildings

they please with their property, no matter the

It was organised by names you’ve heard of

50th birthday when they would have been

consequences.

because eventually, they died in disgrace or

automatically scheduled for conservation.

were gunned down in the street when things

That perhaps is the best illustration of the fact

got sour. But Giovanni Gioia, Salvo Lima and

But by then, the disaster had been completed,

that there is no “authority” either, certainly not

Vito Ciancimino organised the three-way

and the conspiracy was conducted by design.

in the sense of the competence and powers of

arrangement between town planners, the mafia

Shares of public expenses and the returns from

a State-agency at arms’ length from elected

and the Democrazia Cristiana to facilitate a

the development activities found their way

officials that take decisions based on public

“building boom,” the corrupt consolidation

back into the pockets of the politicians who

Left to right: Giovanni Gioia was one of the most influential members of Amintore Fanfani’s political faction within Christian Democracy in the 1950s and 1960s; Vito Ciancimino was an Italian politician close to the Mafia leadership who became known for enriching himself and his associates by corruptly granting planning permission; Salvo Lima was an Italian politician from Sicily who was associated with, and murdered by, the Sicilian Mafia.

and objective rules and, when this is helpful,

concrete the cash reserves accumulated by

facilitated them and the political party they

based on precedent. Instead, the real authority

crime and corruption.

organised like a freemasonry lodge.

resides with the Yorgen Fenechs, the Silvio

Debonos and the Joe Portellis of this world

The draft town plan for Palermo, full of hifalutin

In the process, they brought out into the

(the list is not exhaustive, but it doesn’t get

conservation principles and careful planning,

open cash generated by the mafia in the rapid

much longer either) who pull the strings of the

was published in 1954. It was dragged through

criminal boom after the hardship of the years of

Matthew Paces, the Elizabeth Elluls and the

the drudgery of public consultation, with

Fascism and war.

Michael Farrugias of this, same, world (the list

hundreds of amendments in response to

is not exhaustive but it doesn’t get much longer

private applications from citizens and many

Of course, the real victims of this conspiracy

either).

adjustments to accommodate the claims made

are the generations of Palermitani and Sicilians

by local DC politicians on behalf of constituents,

that inherited one of the finest cities of the

What’s happening here is what I called in the

most of them Mafiosi.

Mediterranean, ruined by random, haphazard

March 2019 article I published on my blog Truth

“development”, as great a misnomer as

Be Told, ‘The Sack of Malta’.

Multiple versions were published in 1956 and

“palazzo”.

1959; all the while, public building contracts and

I use the term ‘Sack of Malta’ advisedly because

permits for concrete edifices were issued until

This is what is happening to us now, in front of

it replicates the model of the sack of Palermo in

a final, binding version of the town plan was

our very eyes.

ISSUE 66

MONEY

bloom@bloomcreative.com.mt

We build remarkable brands. To view a selection of our best work, visit bloomcreative.com.mt

PROMO

Microsoft’s Commitment to Malta’s iGaming Sector In 2019, Adrian Gatt was appointed Microsoft’s Business Development Manager for Greece, Malta, and Cyprus, focusing on the iGaming industry. This position signified Microsoft’s resolve to increase its focus and resources on the growing iGaming industry. “Two years down the line, our focused effort has helped us more than double our customer base on our Azure cloud platform, and we have the ambition to re-double that amount within a shorter period,” he says.

Where do you see the iGaming

achieve more. This means

industry going?

that leveraging the Azure

We want organisations to become independent with us, not dependant on us.

platform allows organisations The iGaming industry has come a

to focus their efforts on the

long way since its inception. With

core competencies without

increasing regulated markets

‘wasting’ time creating and

that have a significant focus on

managing the systems that

player protection, this industry

enable them to build their

can now back its claim of being

customer value propositions.

part of the global entertainment

Over the past 2-3 years, our

industry vying for consumer

message to the industry has

airtime with more ‘traditional’

been consistent, whereby

forms of digital entertainment,

we are and can be a strategic

be it watching a favourite series

partner to these organisations.

on Netflix, playing your favourite

We do not want to be seen

What are the main trends you

and consequentially squeezed

games on your home console, or

simply as a supplier – a cost

are seeing in the industry

profit margins to maintain their

creating some content on TikTok.

centre. We want organisations

currently, and what has

compliance in the regulated

This, in turn, fuels more growth

to become independent with

changed over the past months?

markets they operate it. These

while the industry is going global.

us, not dependant on us. We

trends have been a significant

support organisations in their

With its increased market

driver for the increase in Mergers

How can Microsoft facilitate the

infrastructure and application

regulation, the industry has

& Acquisitions to benefit from

evolution of the industry?

development requirements,

experienced some significant

each other’s licensing position,

building or enhancing their

impacts, such as a drive to

product offering, and economies

Microsoft has positioned itself

data-driven business model and

expand their operations to

of scale. Other trends in the

globally as the leading platform

strategy and ensuring business

newly regulated and attractive

industry are the enhanced

provider with its cloud services

continuity from an operational

markets, top of that list I would

focus by organisations to build

that act as an enabler to any

perspective, especially during

say is the US, but also the

a data-driven business model

individual or organisation to

the Covid-19 pandemic.

increased operational cost

and strategy, leveraging the

ISSUE 66

MONEY

PROMO

Over the past two years, we have gotten closer to the iGaming community, yet we aim to get even closer. To this effect, at the beginning of 2021, we rolled out an outreach program to speak to as many iGaming organisations, get to know them and their strategic objectives better, and discuss how Microsoft can be a partner to them in their quest to meet those objectives. Since our focused effort working with the industry, we have more than doubled our customer base on our Azure cloud platform, and we have the ambition to re-double that amount within a shorter period. How does your experience in Malta help you personally to move Microsoft’s strategy forward? Leading Microsoft’s investment to get closer and supporting the iGaming community from Malta allows us to strategically be as close to the community as possible with the number of organisations and business decision-makers based on the island. In addition, I am supported by a team that is spread across the entire Central and Eastern European region and beyond. Hence, organisations millions of transactions each

Microsoft offers its customers

partners to help customers build

still get the whole experience

organisation likely processes

the flexibility to develop their

their solutions, including using

of working with a leading

every month. On a final note,

solutions on their terms.

specialised technical resources

global technology company

the industry is also leveraging

Customers have choices. With

and architects. Moreover, we

but has a local presence on the

technical trends around

our commitment to open source,

also have partners who have

ground that other prominent

modernising ones’ infrastructure

and support for all languages

built ready-made solutions

hyperscale cloud vendors do not.

that makes that key component

and frameworks, customers can

that a customer can simply buy

Moreover, the power of the local

more resilient and agile in

build their applications how they

rather than build, depending on

professional network is a great

the face of increased market

want and deploy them where

the customers’ resources and

asset for me to get in touch with

demands.

they need them. This applies

necessities.

the many organisations, and I have had the pleasure to meet

to all businesses, from large How does Microsoft work

enterprises to smaller entities

What are your ambitions for

many new faces over the past

with customers to develop

and start-ups. As a partner-led

Microsoft’s role in the iGaming

two years and look forward to

solutions?

organisation, we work with our

industry?

meeting many more.

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

MARKETING

THE GRASS IS GREENER Richard Muscat Azzopardi on the importance of ‘green’ marketing and the impact on such brands championing eco-friendly measures.

According to Nielsen, over 73% of consumers would change their

the way they act. Besides the noticeable impact on the environment,

consumption habits to help the environment - a figure very different

green marketing isn’t just about courting the consumers who have

from the paltry handful of environmentalists that could be found 10 or

already decided to change their lifestyle but also an extension of

15 years ago. As environmental concerns become an increasingly hot-

corporate social responsibility.

button issue for several people, consumers expect to see the same

concerns and beliefs held by the brands they populate and support.

Green Marketing: A Definition

Brands that avoid speaking about their environmental impact - or,

‘Green marketing’, or environmental marketing, isn’t new,

even worse, brands that ignore their environmental impact - are fast

but something that has been steadily developing ever since

discovering that the audiences that they could once hold in the palm

environmental awareness rose to popularity on the news cycle.

of their hand are slipping through their fingers.

Brands that are eco-friendly use green marketing to advertise and raise awareness about environmental issues. The global

Environmental concerns are human concerns. It’s only natural that

green packaging market size alone was valued at $258.74 billion in

consumers, now adapted to the new reality where brands are human

2019, a figure that has only grown since big businesses leap at the

and speak in human ways, want brands to carry on that humanity in

opportunity to make a difference. »

ISSUE 66

MONEY

MARKETING

The impact of green marketing on brands

The opportunity to align with a brand that links itself to

The rising importance of green issues has permeated the livelihoods

environmental and green marketing is not only a way for consumers

of everyone, even if they’re not as avidly environmentally conscious as

to support a cause that is important to them, but it helps humanise

other people. Thus, people opt for paper straws or no straws worldwide,

the brand in their eyes, allowing them to consider the brand

make sure to source organic and fair trade food, and try their best to

within the lens of a friend or a favourite acquaintance - and this

minimise their impact on the environment.

humanisation makes it easier for them to support the corporation and to recommend it to friends. Rather than a brand or a product, the

As an extension of the people who founded and ran the company,

company itself becomes familiar and friendly, seen on the level of an

brands are not immune to the lure of environmental marketing.

acquaintance.

However, the most crucial aspect of green marketing isn’t the marketing

itself; it’s the allegiance with an unreservedly good cause. Nobody can

The impact of green marketing on the planet

deny that being involved in environmental issues makes people - both

We are at a crucial moment in our history where the idea of a ‘dead

the ones within the company and the consumers that buy or make use

planet’ has become a terrifying semi-reality. With the constant

of their offering - feel better about themselves and feel like they are

rising temperatures and deadly weather cycles, a cataclysmic

making a difference to the current environmental state.

environmental disaster won’t impact one country or two but multiple countries worldwide.

Beyond that, addressing a fraction of the environmental concern

caused indirectly or directly by brands or big companies curries a lot

Reducing the impact of a single individual - switching from plastic to

more favour with today’s consumer than backlash. From the smallest

recyclable paper, from non-renewable resources to clean energy - is

There is no business on a dead planet.

company to the biggest megacorporation, everyone must work within

a valuable starting point. Still, to truly make a difference, businesses

an environment that is changing.

must commit to being green. The impact of a single enterprise on the planet is always going to be many thousand times larger than the

Today’s consumer doesn’t care, necessarily, about the product that you

impact of a single human being. However, if all businesses commit

are making: there will always be another product that they can get that

to championing environmental concerns, the damage done over a

fits what they want a little more. However, offering a product that comes

handful of years can start to recede.

with the link to environmental awareness will put that product or service

at the top of the class and cut down the competition that doesn’t have

To put it into perspective: there are only around 100 companies

that link as support.

responsible for 71% of all global emissions. So, pushing even half of them

to follow environmental guidelines will already make a difference in

The impact of green marketing on consumers

real-time.

It’s impossible to avoid purchasing things or paying for experiences -

everything that is available for sale is available due to demand. However,

And, at this stage of things, it’s irresponsible for businesses not to

by limiting the environmental impact of your product, consumers will

champion green awareness. Companies should and do have pressure to

be happier overall to purchase it, as it won’t feel as though they are

do right: by themselves, by the consumers, and by the people who work

contributing to an ongoing problem. Climate change and environmental

for them.

issue awareness are two of the most prevalent concerns for many

consumers today. Thus, more than one in five will actively choose

After all, as David Brower once said, ‘there is no business on a

brands that offer sustainable alternatives to packaging and marketing.

dead planet.’

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

CHASING Photography Marvin Grech

Styling Peter Carbonaro

Model Luca @ Models M

THE SUN

Shorts by Adidas, Eurosport

Shorts by Dan John, The Point | Shirt stylist’s own

Swimwear by Charles & Ron

Swimwear by Adidas, Eurosport | Cap by Charles & Ron

Zip up by Adidas, Eurosport | Swimwear by Charles & Ron

FA SHION

Summer Magic MONEY‘s sizzling choices for the summer.

BIRKENSTOCK Arizona birko-flor sandals €75

All items available from mrporter.com EASTPAK Tranzshell multi-wheel 54cm suitcase DRIES VAN NOTEN

€133

Cassi camp-collar printed satin shirt €580

ISSUE 66

MONEY

FA SHION

FRESCOBOL CARIOCA Paulo unstructured cotton-blend blazer €500

TOM FORD James rubber-trimmed leather, suede and nylon sneakers €790

GUCCI Logo-appliquéd leather-trimmed ECONYL bucket hat €350

TATA HARPER Repairative Moisturizer, 50ml €101

HUBLOT Big Bang Ceramic € 20,700 / elcol.com

STÒFFA Pleated brushed cotton-twill trousers €340

MONEY

T H E R E A L E S TAT E & E N V I R O N M E N T E D I T I O N

NEWS

MINDFUL MARKETING Sustainability is more than just a buzzword

using social media platforms. Whether it’s by

in today’s world — living in a green-conscious

posting on Facebook or getting a bit creative

society, where today’s consumers no longer

with a TikTok video, create conversations,

tolerate wasteful practices. Nowadays, people

be reactive, or have a light hearted moment.

consciously interact and support companies

Social media is the perfect opportunity to

and brands that exercise sustainability.

connect with your audience sustainably

Bearing this in mind, we wanted to quickly

and instantly. Hop on trends and engage

inspire how you, as a company/brand, can

in conversations without missing a beat to

connect with your audience in a sustainable

ensure that your message is widespread.

fashion.

Keep in mind, though, that it needs to be adapted according to the platform being

The Future Is Greener

used. The lingo differs from one platform to

The future is bright and greener. A common

another, both in how you present your tone

Incorporating sustainable practices within

practice amongst companies nowadays — give

of voice (always keeping in mind your brand)

your company operations have never been

back to the community together with your

but, most importantly, the type of content

more necessary than nowadays. Consumers

colleagues by bettering the environment for

that the audience is most likely to engage

look to support and engage with brands that

future generations to come. Conduct clean-

with on that specific platform. So, learn to

have a sense of the world.

ups, or join an NGO hosting one, pen it in your

leave the long-form posts for LinkedIn and

calendar, and make a fun company event out

your poll stories for Instagram and creative

Please find out more about how your brand can

of it. You can also get your hands a little dirtier

videos synced to the latest trending sound

market itself in a sustainable way by getting in

by contributing to the Earth’s oxygen levels by

for TikTok or Instagram reels. It’s quite

touch at studio@pureconcepts.com.mt or visit

hosting a tree planting activity.

the social, digital jungle out there, but its

www.pureconcepts.com.mt.

effectiveness can reap great rewards for Get Social

brand affinity through some careful thought

Michelle Melissa Scotto is a brand and digital

Stay in touch with your consumer base by

and curation.

creative at Pure Concepts.

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ISSUE 66

MONEY

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