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THE FINANCE EDITION ISSUE 69
COVER STORY
A WEALTH OF EXPERIENCE Alistair Muscat
(
)
POLITICAL AND ENVIRONMENTAL IMPERATIVES IN A POST-COVID- 9 REALITY Colin Lawrence & Paul Bonello ( ) SOFT POWER: THE DIPLOMATIC FRONTIER Hon Evarist Bartolo ( ) FINANCING GREEN & GREENING FINANCE JP Fabri ( )
POWERED BY
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COVER
Alistair Muscat Read the full story on P.16
E D I T O R Anthony P. Bernard
[anthony@moneymag.me] Editor’s letter — As we close one chapter and
positively because they align with long-
D E S I G N BloomCreative
begin another, a great sense of trepidation
term thinking and potential risk reduction.
[bloomcreative.com.mt]
engulfs the islands for many reasons. We are
Furthermore, companies with good ESG
yet, another year into the pandemic, and it’s
management tend to be better equipped for
hard to shake off the black cloud following us
crises due to this emphasis on sustainability.
around as new variants begin to emerge. New
ESG is taking on an even greater significance
and increasingly resilient variants bring about
considering recent events: companies have
a set of unique challenges as we continuously
the responsibility and resources to accomplish
adapt and readjust. But, it’s not all negative.
positive climate action, building a more
We are finding new ways to innovate and do
sustainable, resilient future and “putting
MONEY is hand-delivered to businesses in Malta,
business and collaborate. We are not alone,
money where their mouth is”. However, it
including all managers and directors of the TOP
which brings about a great sense of unity in
remains to be seen if we will see more entities
this shared experience.
implement better ESG measures for the better
including their business centres, executive lounges
of all.
and rooms (where allowed), embassies and Maltese
P R I N T I N G Print It D I S T R I B U T I O N JD Distributors
companies; iGaming, yachting and boating businesses, marinas, all -star hotels and boutique guesthouses
embassies abroad (UK, Rome, Brussels and Moscow);
In this issue, we take a closer look at reactions
all government ministries and entities.
towards Malta’s efforts to get off the grey list,
With that comes a reoccurring undertone,
as all eyes are on the nation, watching our
one of long term thinking being the kingpin
For information regarding promotion and advertising:
every move. For some, we are ticking along
to success. So, let that be our message as we
(+
at too slow a pace, it’s been months since
head into
our proverbial judgement day, and things
just about preparing for future shocks, such
just aren’t happening quick enough. But,
as pandemics. It also means responding to
unfortunately, as we all know, the sour taste
‘slow burn’ issues that are already well known,
left behind resonates beyond our shores and
sustained action to meet complex policy
reverberates across Europe. As a result, Malta
goals, and protecting resources for future
is no longer an attractive place for many to do
generations. A mix of approaches could help
business, particularly for those considering
improve long-term planning. This includes
making a leap to the islands or investing here.
alternative measures to assess policy progress
All rights reserved. Reproduction in whole or in part
and independent institutions to protect future
is strictly prohibited without written permission.
)
· [hello@moneymag.me]
. Long-term planning is not
Another hot topic is our collective efforts
interests. No strategy is a silver bullet – and
towards a more sustainable Malta; as EU
political will is ultimately needed.
Money is published by Be Communications Ltd, No.
, Howard Street, Sliema, Malta SLM
! " · [becommunications.com]
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
targets loom, every one of us must strive
and publishers cannot be held responsible for errors
for a better Malta. Initiating ESG is another
or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome
subject covered in this issue, whether
but cannot be returned without a stamped, self-ad-
through sustainable investment or otherwise.
dressed envelope. The editor is not responsible for
Ultimately, we can view ESG investments
material submitted for consideration.
ISSUE 69
MONEY
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CONTENTS
08
20
36
Political and environmental imperatives in a post-Covid- reality
Marketing and finance: A partnership for growth
Financing green & greening finance: An opportunity for Malta
Based on a series of interviews with leading economic and risk experts, Professor Colin Lawrence and Paul Bonello, Lea Hogg distils their hard-hitting advice for the government and businesses in this article for MONEY.
Lyndsey Grima analyses the relationship between finance and marketing and why both departments must work together for success. She catches up with Luca Caruana and Susan Weenink Camilleri, the pair having experience in both departments, to find out more.
12
27
International observers not impressed by Malta’s efforts to get off the greylist
A revolution in finance or a mere craze?
Six months after Malta was greylisted by the Financial Action Taskforce (FATF), I see three main perils to the government’s plan to get Malta off the greylist in 18 months as envisaged. We are fixated on the technicalities of reform without seeing that the more significant effect is falling short of the expectation or perception of international observers. We are starting to believe our spin on technical compliance and, more seriously, the idea that greylisting has not impacted the ‘real economy’. Victor Paul Borg investigates.
One of the buzzwords in cyberspace that is increasingly gaining traction is decentralised finance, better known as DeFi. But what, exactly, is DeFi? Moreover, what is it looking to trump? Jake Aquilina asks.
30 Malta’s soft power potentials (part ): The diplomatic frontier
16
38 The pandemic saga and its socio-economic implications
The fourth wave of coronavirus infections is raging across continental Europe, forcing governments, once more, to take drastic actions to mitigate the spread of the virus and stop from hospitals being overwhelmed. Jordan Portelli explains.
42
A wealth of experience COVER STORY
Duncan Barry speaks to Alistair Muscat, CEO of Sliema-based Integra Private Wealth, on the firm’s services, what differentiates between banks and wealth management firms, and the challenges tied to constant changes in investor protection rules.
As countries recover from the Coronavirus pandemic, we must take the historic opportunity to tackle climate change simultaneously – to build back better and greener. We can deliver green recoveries across the globe that create good jobs, trillions in investment and ground-breaking new technology. And we must. JP Fabri explains.
Ray de Bono met with Minister Evarist Bartolo, Malta’s Minister for Foreign and European Affairs, in his spectacular office at Palazzo Parisio, adjacent to Castille Place, in Valletta. Its prestigious location, right next to the prime minister’s office building, is not a trivial detail here.
ISSUE 69
Investment alternatives: understanding the risk How do you gauge the risks involved for the different options available if you seek to invest your money? The Malta Financial Services Authority explains.
MONEY
CONTENTS
45 Slow and steady wins the race There are very few things in life that frustrate Richard Muscat Azzopardi more than a panicked approach to marketing that seems to believe that the role of the discipline is to save a business when it’s doing poorly. But, convearsely, these businesses seem to think that, in a classic Schrodinger’s cat logic example, you should cut down on marketing the minute business starts looking bad.
48 Initiating “ESG” through sustainable investment Over the last decade, ESG (Environmental, Social and Governance) has replaced CSR as companies are becoming more and more accountable to their various stakeholders like investors, customers, employees, and non-governmental organisations that want to evaluate a company’s impact. Michael Psaila Debono explains.
Lea produces and hosts a popular current affairs TV show. She provides
training at the gym. B U S I N E S S P.20
multi media content, analysis, forecasting and assessment reporting for a number of
Over the last two decades, Ray
international corporates.
has directed businesses in the media,
F I N A N C E P.08
marketing and IT fields, focusing mainly on the international market.
62
with more than two million words and
A beautiful year
every corner of the world.
a multi-disciplinary advisory practice.
F I N A N C E P.12
G R E E N F I N A N C E P.36
MONEY spells out your new year resolutions in luxury and style.
64 A stocking full of stars Start the new year in style with MONEY’s gift list.
MONEY
Victor is an investigative journalist
[raydebono.com] S O F T P O W E R P.30
hundreds of pictures to his name, in books, magazines, and newspapers in
Duncan has over two decades of
JP is a founding partner at Seed,
Jordan is an economist and CIO /
experience in feature writing and
portfolio manager for a local financial
journalism. He is also a freelance writer. In
services company.
, he was the national winner of the EU
E C O N O M Y P.38
Health Prize for Journalists. C O V E R S T O R Y P.16
Richard is the CEO of Switch — Digital & Brand, a marketing agency that forms
Lyndsey is a freelance writer and social
part of ICOM, the world’s largest network
media marketeer. When she’s not typing
of independent agencies.
away, you will find her focusing on her
M A R K E T I N G P.45
THE FINANCE EDITION
FINANCE
Political and environmental imperatives in a post-Covid-19 reality Based on a series of interviews with leading economic and risk experts, Professor Colin Lawrence and Paul Bonello, Lea Hogg distils their hard-hitting advice for the government and businesses in this article for MONEY.
Malta’s GDP plummeted to – . % in warnings for
as tourism and services, representing over
are encouraging, with the Island getting back to pre-COVID-
levels. In a remarkable turnaround, GDP is forecast to rebound to + % in
% of the economy, were impacted catastrophically. But the
levels of unemployment ( %) and inflation contained at sub . %
. The World Bank estimates that Malta’s GDP in
may reach . %, a
performance significantly higher than the . % predicted for the average of Eurozone countries.
However, Paul Bonello, a leading finance
it anymore”. Bonello quips that “insofar as
guard against inexorable and intensive growth
consultant and government advisor, cautions
quality of life is concerned, COVID-
as much as against stagnation. The name of
that there is a “danger in GNP growing too
one big advantage, we no longer had to suffer
the game will be cooking Goldilocks’ porridge
fast”. He believes that the “accompanying over
hours of interminable traffic jams”. “Let us
to the right temperature; not too hot, not too
development will reduce the countryside to
beware of politicians: fast growth is exciting,
cold. We need not grow big while encouraging
back and front gardens”. Land is ultra-scarce
it releases adrenaline, it brings a good feel
diversity and inclusion. We need not pursue
in Malta. He forecasts that “another boom
factor, it is popular, it makes politicians popular
a sizeable population of guest workers and
will increase the population by hundreds
and win elections. But when the elated state
immigrants, making Malta’s highest density
of thousands and will cause social and
is over, it often leaves you in a miserable state
per square kilometre in Europe even more
environmental upheaval. Property prices
afterwards,” says Bonello.
accentuated. We need not aim for millions of
had
and rentals will skyrocket”, echoing Mark Twain’s quote, “buy land, they don’t make
tourists. A much smaller number of quality Bonello’s economic thesis is that “we must
ISSUE 69
tourists will be much better, producing a
MONEY
FINANCE
much better spend per capital and much less stress on our environment and infrastructure. Instead, let us pursue high yield niches in the economy, such as the financial services in Malta, which, sadly, as Prof Lawrence commented, have been so severely hurt by the FATF greylisting.” So, is Malta’s economic outlook sustainable with the spectre of Omicron, Malta’s greylisting and environmental concerns casting long shadows? Opinions vary about what might happen next. Professor Dr Colin Lawrence, a recognised leading expert in financial and regulatory risk and former senior regulator at the Bank England, shared his views with Money magazine. Lawrence argues that while the UK and US economies rebounded from the recession, growing . % and . %, respectively (in real terms), much of this recovery can be attributed to fiscal stimulus packages. In the UK, policies adopted include £ bn additional spending on infrastructure, £ bn on a job retention scheme, £ . bn on a stamp duty holiday and £ . bn on a temporary VAT cut for hospitality and leisure. The UK’s Office for Budget Responsibility estimates the additional cost to the economy to be £
bn ( . % of UK
GDP). However, the Professor says, “the Uk has been hit very hard by both COVID-
and
Brexit, plummeting last year by %. As a result, despite growing out .
% this year, it is far
in the hole with growing unemployment and significant supply chain disruption”.
Greylisting is doing untold harm to the financial services that have almost ground to a halt. — Paul Bonello
However, the UK’s spending spree is dwarfed
costs and incentivise domestic consumption,
sudden bursts in economic activity possible,
by Biden’s stimulus package of $ trillion,
and measures to support investment. The
satisfying pent-up demand for good living,
including $ . trillion for infrastructure and
improvement in GDP may, to an extent, have
entertainment and shopping. He identifies
around $ trillion for social spending. This is a
resulted from the government’s stimulus. Still,
a nexus in COVID-
massive boost to the economy. Compare this
Professor Lawrence points out that “much of
tourist figures but notes that the situation
to growth lower than . % over the past two
the upturn was triggered by the opening up of
reverts each time there is a resurgence of
decades. Meanwhile, the stock market is up
other key economies”.
COVID- .
relenting and improved
% for the year. Given how gigantic the US GDP is ($
Paul Bonello’s view broadly supports this
At the same time, he notes, “the uptick in
global economy. Still, there is a supply-side
trillion), this is very bullish for the
analysis, saying that “a combination of record
tourism in
COVID-
government borrowing and EU funds have
pent up demand and in Malta only partly due to
chain shortages and thus inflation, but it
meant that the government has managed
the subsidy given to tourists who stay at least
should be short-lived once we recover from
to keep the economic wheels turning
two nights”.
the pandemic, and longer-term, we should see
during lockdown avoiding the onset of mass
growth in projects for infrastructure.
unemployment”. He concurs that government
Professor Lawrence draws attention to some
stimulus measures have supported the
of the risks to Malta maintaining sustained
In comparison, Malta’s government responded
manufacturing and tourism sectors and
growth. “Malta must continue to work with
to the pandemic with a raft of packages
suggests many businesses would have closed
the FATF to have its ‘Greylisting’ rescinded. He
estimated to cost €
without this support. Furthermore, Bonello
argues that Malta must “restructure financial
indicates that government stimuli made
services monitoring and further improve »
shock as well, and we see supply
m ( . % of GDP)
targeted to reduce businesses’ operational
MONEY
THE FINANCE EDITION
was caused in the main by
FINANCE
its governance with independent bodies
But while Malta is holding its own in the
is no scope for adventurism, for short-term
overseeing tougher regulations and oversight”.
Freedom Index, it plummeted to
nd in
solutions that bring us into unnecessary
Lawrence believes that “failure to do this will
the Corruption Index. A drop of
places
put Malta’s reputation under continual scrutiny
since
and discourage financial transactions hurting
Caruana Galizia’s assassination, an episode
to pseudo residents or the promotion of
GDP growth”, adding that “Central banks
likely to haunt the government for some time
ill-conceived Blockchain Island when no real
and regulators worldwide have tightened
to come.
thought and planning had gone into it”.
surveillance. As a result, lending to entities in
Professor Lawrence cites analysts quoted in
“Our Financial Intelligence Unit and other law
Malta will be considered a much higher risk and
the Freedom Index agreeing that the Maltese
enforcement agencies must spend what is now
discourage traditional lending”.
government must address a “sprawling
a super budget in the pursuance of hardcore
socialist bureaucracy that oversees heavy
criminal and economic activity and not in
Anti-corruption journalist Daphne Caruana
entitlement spending” to sustain the progress
stifling financial services practitioners with
Galizia’s allegation that there existed “an
made to date. But, adding that, it will need to
accusations of minor breaches of formalities.
entire superstructure of fraud, bribery, tax
“fight corruption more aggressively, further
The government needs to target the big fish
evasion, fiduciary neglect and cheating
reform the labour code and the judicial system,
and tax evaders seriously. Until all vestiges
reached the highest echelons of government”
and prioritise spending cuts and pension and
of impunity have been removed for those
drew worldwide attention. The outcome
health care reform, as entitlements continue
who can avoid punishment because of their
to pressure public finances”.
political influence or wealth, our greylisting will
reflecting Malta’s Greylisting’ and
friction with our neighbouring countries and the EU, such as promoting the sale passports
AML and anti-terrorist lending controls and
remain”. Paul Bonello is equally forthright, believing that “the culmination of so much corruption
Professor Lawrence contends that sustainable
and sleaze over the last few years resulted in
GDP growth in Malta is contingent on several
Malta being the only European country ever
factors. “It depends on the new steady-
Malta’s attractive tax regime appears to have hampered (at least for the time being) a move off-Island for many companies involved in the digital economy. — Prof. Colin Lawrence of the independent investigation into her
to be placed in the FATF greylist. The focus on
state (continuing) and the restructuring of
murder finding that “the state had to bear
Malta by the EU, the OECD, the FATF, and the
labour habits”. He foresees “the ability to
responsibility after creating a “culture of
ensuing greylisting may have dealt the death
communicate globally by digitalisation” being
impunity” severely damaged the government’s
knell to the current international tax regime
an imperative for success”. He asserts that
credibility. Unquestionably, Lawrence argues,
that has served us so well in the last twenty
Malta must act now to reduce dependence on
trust in the government has been sorely tested
years. Greylisting is doing untold harm to the
tourism, predicting that while tourism might
domestically and internationally.
financial services that have almost ground to
rise in the short term, it remains vulnerable to
a halt”.
further restrictions and uncertainty. The UK is
He applauds Malta
th place in the
predicting m Omicron cases by the end of the
Freedom Index, ahead of Belgium but behind
“The effects of greylisting on the domestic
year, and currently,
Cyprus, which placed
economy will start being felt more concretely
inbound travel to reduce their infection
judicial effectiveness as the primary reason
in a few months,” states Bonello. “It has been
rates. Professor Lawrence also cautions that
Malta maintained its mid-level position.
a humiliating blow to our counties pride”. “The
“continued globalisation looks limited”. CEOs
Recognising the changes achieved, the Island
only way confidence in Malta can be restored
and senior executives will continue to “zoom
ranked
is the government living up to its original
in rather than fly in.” International travel for
has an overall score above regional and world
election campaign mantra: accountability,
business and conferences will reduce globally
averages.
transparency and good governance”. “There
as the world “transitions to a zero-carbon
st among
rd. He cites improved
countries in Europe and
ISSUE 69
countries have banned
MONEY
FINANCE
footprint”. In Europe, Omicron has already
appears to be a double-edged sword for
unexpected changes will occur. Leaders must
affected the hospitality and entertainment
property investors. While turnover in real
plot a route to prosperity like pilots of long
sectors, seeking financial assistance from
estate reached € bn in
haul aircraft. They must anticipate turbulence
governments to offset the loss of business
evidence that high rents are driving migration
and navigate new courses in the face of
caused by the reintroduction of social
to lower-cost parts of the Island and Gozo
the headwinds they will undoubtedly face.
distancing.
and ROI on a property is expected to decline
Professor Lawrence’s final counsel is that the
to -
government must restore Malta’s reputation.
, there is
%. Remote working has facilitated
The UK considers making WFH (working from
office downsizing and moving out of high
Companies must be agile in anticipating and
home) a legal requirement for employers.
rent and congestion locations. Fortuitously,
fearless in implementing the changes required
Transportation, restaurants, supermarkets,
Malta’s attractive tax regime appears to have
to prevail and prosper in the new reality.
property owners, high street retailers and
hampered (at least for the time being) a move
entertainment venues. Already beleaguered
off-Island for many companies involved in the
by previous restrictions are reeling from the
digital economy.
prospect of yet further footfall reductions. Professor Lawrence highlights the “growing
Despite the headwinds, Professor Lawrence
trend in the post-COVID-
can foresee a return to relative prosperity.
steady-state
that many workers have decided to WFH not
Malta has a well-trained, English-speaking
only under COVID-
workforce and low labour costs. Its EU
but post-COVID- . In
the USA, . million workers have exited the
membership and tax regime attract foreign
labour force leading to massive shortages
investment, its strategic location provides
About
in physical centres (supermarkets, storage
a competitive advantage, and it remains an
Professor Dr Colin Lawrence
and production). The stay at home workers
attractive tourist destination. However, he
Colin is a former senior regulator at the Bank
is usually high quality and as many men as
raises concerns over Malta’s skilled labour
of England. A world-leading risk and regulatory
women. This must do with demographics and
shortage, which is forecast to worsen despite
expert, he advises global financial institutions,
parenting choices, and travel; it is convenient
the government’s initiatives and financial
central bankers and regulators on critical and
and favourable from a carbon perspective.
incentives. In Europe, amongst the top
strategic risks. He serves as a board member
This leads to a mixed economy with services
skills in short supply are ICT professionals. As
of OSTC and chairs the Risk and Compliance
roughly
a result, EU companies are designing more
Committee. His career includes roles as a
by high-quality labour, some operating from
attractive packages and hybrid work models
professor at Columbia Business School in
home. This will no doubt lead to further
to fill vacancies. As a result, there is concern
money and financial markets, partner Ernst
inequality as routine lower-skilled labour have
that IT savvy Maltese and guest workers will
& Young, Regional Leader Risk Management
to take over jobs in factory-like conditions at
be enticed off-Island, compounding the skills
IBM, and managing director in markets UBS
minimum wages.”
deficit that is limiting the growth of iGaming,
and Barclays. Colin is currently working on
one of Malta’s most important sectors.
Probability of Default and Loss models given
% of the US economy produced
The Professor highlights other imminent
Default under climate scenarios. He also
changes, including the impact on the
The Omicron variant could, of course, throw
assesses risk appetite and regulatory capital
property market. While the property market
a spanner in the works and disrupt the global
requirements for climate-related physical
has recovered to pre-Brexit levels in many
economy and Malta’s growth. So far, while
shocks.
countries, he believes real estate will be
times more infectious, Omicron appears
affected by many continuing to work from
less severe, with most sufferers experiencing
Paul Bonello
home. Indicative of the change in consumer
symptoms not unlike the common cold. But
Paul is managing director of Finco Treasury
behaviour, a UK top
if only % of cases result in hospitalisation,
Management and director of March
for less than half price this week. The new
this could severely affect transportation,
Management Malta, part of one of the
owners’ intention to address the demise of
productivity and place health services under
world’s largest professional services firms
traditional retail is to introduce experienced-
stress. Still, more alarmingly, Professor
headquartered in New York. In a career
based opportunities and additional
Lawrence warns that new variants could
spanning four decades, he has held positions
entertainment choices. The WFH movement
“lead to stock market collapses worldwide if
as director of Air Malta, chairing its Audit
has seen office rents decline and house prices
lockdowns in the EU, UK and USA return.”
Committee and director for Mid-Med Bank
in leafy suburbs rising considerably as WFH
Faced with so much uncertainty, it is clear
and then HSBC, where he chaired the Risk
has created many questions about what
is that the typical annual planning cycles
Management and Audit Committees. Paul also
they want from life. In Malta, where traffic
of government and businesses need to be
served as part of a three-person committee,
congestion and high-density housing is a
replaced by “a linear notion of progress”. Plans
advising the Government of Malta on the
characteristic of Valletta and Sliema, there
for
transition from the offshore to the onshore
will likely be an exodus of businesses and
more agile and robust route to profitability and
financial services regime. Paul is a certified
residents.
sustainability. The changes to business and
public accountant, a fellow of the Association
society since
of UK Certified Accountants and an associate
shopping mall was sold
Malta’s prominence as a leader in connectivity
MONEY
and beyond must provide a leaner,
have been unprecedented,
and in the new reality, one thing is sure, more
THE FINANCE EDITION
of the London Institute of Bankers.
FINANCE
INTERNATIONAL OBSERVERS NOT IMPRESSED BY MALTA’S EFFORTS TO GET OFF THE GREYLIST Six months after Malta was greylisted by the Financial Action Taskforce (FATF), I see three main perils to the government’s plan to get Malta off the greylist in 18 months as envisaged. We are fixated on the technicalities of reform without seeing that the more significant effect is falling short of the expectation or perception of international observers. We are starting to believe our spin on technical compliance and, more seriously, the idea that greylisting has not impacted the ‘real economy’. This is a logical extension or evolution of the first two – we are becoming complacent. Victor Paul Borg investigates.
ISSUE 69
MONEY
FINANCE
As an investigative journalist, I make these points based on chatter I am privy to, and insight gleaned from my investigations. Any analysis must start with the greylisting itself, which would show why our actions are falling short of expectations. Officially, Malta was put on a list of less than two dozen countries in the world subject to increased monitoring – popularly known as the greylist – by the international Financial Action Task Force (FATF). It was also put on a separate UK list of countries at high risk of money laundering and terrorist financing. The FATF’s enhanced monitoring is due to these country’s weaknesses in preventing money laundering and financing of terrorism. In Malta’s case, the FATF pinpointed opacity with beneficial ownership of companies, weaknesses in “pursuing criminal tax and related money laundering cases”, and the money laundering risks related to tax evasion. The immediate effect of increasing monitoring is that it becomes costlier and more effortful for companies in Malta engaged in international business or money flows. »
The more insidious effect is that Malta has become less attractive for international companies thinking of taking shop in Malta or investing in Malta.
MONEY
THE FINANCE EDITION
FINANCE
However, the more insidious effect is
experience in the criminal court before she
impressive, you stand a good chance of
that Malta has become less attractive for
became attorney general, mainly employs
getting away with it. After all, cases tend
international companies thinking of taking
young lawyers fresh out of university who
to stall or peter out at one level or another.
shop in Malta or investing in Malta, which
are still finding their feet. These are not the
And therefore, our focus on technicalities
has undermined the growth potential. Since
kind of sharp, seasoned lawyers you would
is misplaced, and our complacency is
economies are predicated on growth, any
want to handle complex cases. Even if cases
dangerous because it can turn out to be
effect on growth potential is inherently
make it through these gauntlets, they end
counterproductive and disastrous.
harmful. But this is not what we hear in Malta.
up in a court system where cases tend to
We keep hearing that greylisting, six months
stall for years.
We do not see the larger picture, and the
on, has not impacted the real economy and that it is not likely to have any significant
government is not doing – or not interested The result?
– in holistic reform that achieves results.
impact for as long as we get off the greylist on course in
months.
And, above else, our government or we There is often no result because if you are
are failing to read the signs that beyond
intelligent and resourceful, powerful and
the technical points highlighted by the
This is part of the spin by government
FATF, there is the more critical element of
proponents, or selective interpretation of
perception or expectations.
reports by agencies like Fitch by media or journalists sympathetic to the government, leading to complacency, which is one of the main pitfalls we face six months into our -month plan. Another pitfall is focusing on technicalities and frontline institutional setup without realising that international monitors expect us to deliver something more tangible than laws, technicalities and institutional setups. They are looking for results and convictions. We have not delivered any of that and do not seem on track to deliver any time soon. The chatter I hear from sources is that the view among foreign diplomats is that Malta has changed laws and put more resources and staffing into investigative bodies. Still, the results have fallen short of expectations. There have been no convictions of influential people regarding money laundering – and the underlying crime of corruption and tax evasion.
Any analysis must start with the greylisting itself, which would show why our actions are falling short of expectations.
The FATF must highlight specific technical points to form its decisions. But for the people sitting in that room when a vote is taken, the unmet expectations and bad press and the idea that people are getting away with might matter more than presentations on laws enacted and agencies set up. And the signs are that we are neither managing, much less meeting, those expectations. Shortcuts will not work. For example, a law that gives the Financial Intelligence and Analysis Unit power to impose fines directly without resorting to the courts is bound to backfire because companies are likely to appeal, and cases would still stall in the court system. Therefore, holistic, radical reform is needed.
There are various reasons for these poor
We also must abandon the narrative that
results, and not all of them are sinister. For
greylisting has not impacted the ‘real
example, the police department on economic
economy’ so that we can see the perils that
crimes and money laundering is staffed with
lie ahead. Greylisting is, in fact, only one
officers who may be willing to investigate
of the economic headwinds that Malta is
but struggle with complex money laundering
facing. Another is the proceedings by the EU
cases due to gaps in their expertise and
Commission against the sale of passports.
knowledgeability. They are also overwhelmed,
And the third is the rise in the tax threshold
and that works against them. To crack cases
of companies registered in Malta that is
involving complex money laundering requires
being imposed internationally, something
experts who take their time probing a case and
that will take effect in
building the evidence. Yes, you heard right:
Malta’s attractiveness to international
you must build the evidence. But the police are
companies even further.
, which will erode
short on expertise. If the police build a case, it must run the
These headwinds portend a storm that
gauntlet at the attorney general’s office. The
looms just beyond the horizon. So, we must
handicap there is that the Attorney General
change course and embark on holistic,
office, led by someone who did not have any
aggressive reforms to avert the storm.
ISSUE 69
MONEY
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COVER STORY
ISSUE 69
MONEY
COVER STORY
A WEALTH OF EXPERIENCE Duncan Barry speaks to Alistair Muscat, CEO of Sliema-based Integra Private Wealth, on the firm’s services, what differentiates between banks and wealth management firms, and the challenges tied to constant changes in investor protection rules.
Alistair, can you brief us about your role?
our clients provides the added value. Our international competitors are
often too large in scope and nature to afford the clients, even the most
I am one of the founding members of Integra Private Wealth and
important ones, with a personal touch. Ultimately our industry is based
currently act as CEO and a member of the board of directors.
on trust and values, and these cannot grow over time without a solid
personal interaction with clients.
What services does Integra Private Wealth offer, and do you mainly
cater to high-net-worth individuals?
What is the difference between using a bank and using firms
like yours?
Integra offers international holistic wealth management solutions to
private clients and fund managers. Through the years, the company
Banks or credit institutions’ primary job is not to provide investment
expanded its offerings, its network of partners, banks, fund managers,
solutions. Banks are generally focused and derive their primary income
service providers, as well as its global reach. This steady growth
from banking, which, in basic terms, is the management of deposits and
allowed the company to consolidate itself as one of the leading wealth
loans. Over the years, traditional commercial banks added several »
management firms in Malta as well as delivering customised and unique solutions to our clients. These range from money market to growth or income portfolio management solutions to more sophisticated alternative strategies in property, private equity, high-value classic cars, cryptocurrency funds and other types of alternative investments. Our business model and structure cater mainly for high-net-worth individuals, family offices and institutions. Accordingly, we do not offer the traditional brokerage service associated with the retail market but focus primarily on personalised wealth management to a restricted group of clients. How do you stand out from the rest of the wealth management firms? Whilst some of our offerings are unique, the typical wealth management is relatively standard for the industry. Our clients also tend to use our services for the longer term, focusing less on speculative investments and more on succession planning in a stable and steady portfolio. Capital preservation is by far more important to our clients than
Integra Operations & Compliance team — (top) Thaffiny Martins,
significant returns at high risk. Apart from the technical nature of
Kyle Pace, Shanel Carr, Marilena Vella, Andrew Scott Pace and
wealth management, we believe that, and ultimately the extremely low
Valentina Esposito; (bottom) Daniela Pace Bonello, Analise Despott,
client turnover confirms this, the personal relationship we have with
Alistair Muscat, Bartosz Gawronski and André Micallef
MONEY
THE FINANCE EDITION
COVER STORY
expanding our network and global reach. In the future, we will continue to seek new acquisitions by finding opportunities both domestically and internationally. COVID- 9 disrupted operations at the height of the pandemic and caused significant fears in clients and the markets. How did the company navigate through these difficult times? Are things smoothening out now? COVID-
presented two main challenges for us. The first was
operational, and the second was market-related. From an operational point of view, we had been preparing and testing for contingency planning for several years. Thankfully, these preparations meant that we had a seamless transition when we switched to home working practically overnight. Our business relies heavily on personal contact. However, clients appreciated that whilst we could not travel to meet them, we kept in constant contact with them and ensured that our Integra Management — (top) Marilena Vella manager operations,
services continued to be offered online. This was possible because of
Bartosz Gawronski asset mgt. coordinator, André Micallef investment
our significant investment in IT, which allowed us to provide clients with
advisor & business development; (bottom) Daniela Pace Bonello head of risk &
sophisticated online services. These services were fundamental during
compliance, Alistair Muscat CEO
lockdowns.
new services, including wealth management, to their suite of client
The other challenge was market-related. Financial markets reacted
offerings. However, their primary role remains the traditional banking
violently to the spread of the pandemic and lockdowns. Equity markets
service. It is always tricky for banks to achieve expertise and personal
suffered significant losses during the early part of
client relationships that an investment firm can achieve by dedicating
increased volatility must first be managed. Then we try and profit from
all its resources to this aim. When a client approaches us to provide our
it. Our strict risk and portfolio management controls ensured that
. For us,
services, the interest is purely one related to investment solutions. Of course, given the range of services we can offer, clients usually use us as the first point of reference for all their banking and investment needs, and we guide them accordingly. How do you leapfrog the competition and capitalise on emerging market opportunities? Boutique firms have over the years been nimble enough to capitalise on new opportunities by acting faster and more decisively to new opportunities. However, the increasing regulatory requirements imposed on the industry also meant that smaller firms are finding it harder to survive without increasing their fees to counter the added costs linked to compliance and anti-money laundering requirements. We are lucky that we manage a significant amount of client assets whilst retaining a very lean structure in terms of decision making. This gives us a significant advantage in that we can absorb most of the additional costs whilst at the same time investing not only in ensuring the highest level of portfolio management but also in new investment ideas and opportunities. Furthermore, by catering to a restricted group of clients and given the size of each new mandate, we have grown our assets much quicker than some of our competitors. We are also very active in mergers and acquisitions. We are constantly looking for new partners that can add significant value to our overall structure without increasing our overall risk profile. For example, we successfully merged our business with an asset management company regulated and operating in Uruguay in and have recently concluded a new partnership with a UK-based firm. These deals allow us to increase our assets overnight whilst
ISSUE 69
MONEY
COVER STORY
we contained our losses during the heavy sell-offs. However, we also reacted very quickly to invest in specific areas and sectors in the second quarter of
. By adding to the Asian market exposure, technology
and healthcare stocks, we recovered the losses quickly and ended up
We are steadily approaching €700 million in Assets Under Management and aim to reach the €1 billion mark in the next three years
registering an excellent year in terms of performance. Nevertheless, we believe the real challenges will likely present themselves in the next few years, and markets will most likely have to adjust due to unorthodox fiscal and monetary policies. Investor protection rules are constantly changing. So how does this affect your firm? We built our company on the concept of placing the client’s interests first and treating clients fairly. Thus, investor protection comes second nature to us, and we built all our policies and procedures on this principle. We look at added investor protection rules as a clear benefit to the industry. It brings operators that may overlook certain fundamental investor principles closer to where they should be. We are proud to say that we had implemented most of the new investor protection regulations years before they were drafted in law. The country has, unfortunately, been greylisted. How has the company adapted to this, and has it affected your clientele or operations? We have been dealing with large and market-leading international counterparties for many years and are used to in-depth scrutiny. Whilst
damage to our country reputation is harmful, we were also pleased with the reaction of international banks and fund managers we deal with that looked primarily at the sterling reputation of Integra before that of the jurisdiction. This allowed us to retain these relationships and build new ones. Of course, some banks have considered the jurisdictional risk a stumbling block to doing business, but overall, our experience so far has been positive. We have identified new opportunities that ultimately add value to our clients by engaging more with our counterparties. What are your plans for Integra PW in the not-too-distant future? This is an exciting time for our company. We have just concluded a new partnership with Burlingtons Group, a Mayfair based multidisciplinary firm catering for international high-net-worth clients. The synergies between the two parties are evident. Following Brexit, establishing a base in the UK will present another opportunity to expand our network and client base even further. We are steadily approaching €
m in
AUM (Assets Under Management) and aim to reach the € bn mark in the next three years. We might also tap the capital markets to fund further acquisitions and are looking forward to representing Malta in international circles whilst rubbing shoulders with some of the most influential companies in our industry.
THE FINANCE EDITION
BUSINESS
MARKETING AND FINANCE
— a partnership for growth
Lyndsey Grima analyses the relationship between finance and marketing and why both departments must work together for success. She catches up with Luca Caruana and Susan Weenink Camilleri, the pair having experience in both departments, to find out more.
Whether you own a sizeable company with structured departments or a small business with a few key employees running the show, there is the false perspective that all that marketing wants to do is spend; in contrast, the finance department is solely interested in saving. This misconception creates an ‘us vs them’ mentality that could be highly unhealthy for business. However, the key to achieving success lies within effective communication and a deeper understanding that, essentially in business, one department cannot function without the other. Luca Caruana, head of marketing at KSi Malta, a local audit, tax, and advisory firm, graduated in International Relations in
and started working as a journalist in that same year. He also
worked in several companies, holding roles related to copywriting, PR, and project management. He also graduated with a master’s degree in Finance and Investment Banking and obtained a post-graduate diploma in Digital Marketing. Susan Weenink Camilleri is the head of sales and marketing at Simonds Farsons Cisk plc, a household name in Malta. She joined the company almost
years ago as an accounts clerk,
spending the first ten years studying and working in the finance department. Then, moving on to the marketing department, Susan initially worked mainly on market research programmes, sales analysis, and sales forecasting before moving on to brand management and marketing plans of various beer and soft drink brands in Farsons’ portfolio.
ISSUE 69
MONEY
BUSINESS
What attracted you to finance and
Do you think your background in finance
I regularly read financial and business
marketing, respectively?
helped you become a better marketer?
magazines related to the firm I work for and
LC: Marketing is closely connected to
LC: Yes, especially when planning the firm’s
copywriting, one of my passions; hence the
yearly marketing budget and maintaining it
In terms of creativity, marketing certainly
attraction was natural. Regarding finance, I
throughout the year.
complements finance, especially when it
the financial world in general.
am a part-time trader and investor, so linking marketing and finance is natural to me.
comes to planning the yearly marketing SWC: Most definitely. Commonly,
budget. Considering
accountants lack the creativity, flair, and
scenario, when COVID-
SWC: I was always a very numeric person
emotion necessary to be a good marketer.
marketing budgets became more stringent
and enjoyed working with numbers. I studied
Whilst, on the other hand, marketing people
and limited. Hence it was the marketer’s
Maths, Accounts and Economics at O and
are often perceived as being only emotional
job to be more creative with the available
A level. At the time, our tertiary education
and lacking the numeric grounding
funds that they had. In that way, despite the
system here was a bit complex, and after
necessary for looking after the bottom line,
lowered budget, the firm did not suffer.
completing Sixth Form and obtaining my A
which ultimately remains critical and central
levels, I opted to go straight into employment.
to any commercial activity. Having a nice
In such a budget scenario, you need to be
I continued my studies in Accounts through
mix of both is an asset and has undoubtedly
both practical and concrete, keeping in
distance learning. In the meantime, through
assisted me in my career over the years.
mind the situation at hand, and at the same
my exposure to leading local and global
as a case started spreading,
time as creative as possible to make the
brands present in our portfolio, I became more
The qualities that you need for each
most of the funds you have. The success of
involved and interested in marketing and brand
field are undoubtedly very different.
the funds allocated to marketing activities
management. So when the opportunity arose
For example, marketing is more creative,
boils down to the ROI achieved in terms of
to move to the marketing department here
while finance is more concrete. How do
clients acquired and the allocated billings
at Farsons, I immediately went for it, despite
you think that these qualities
of such clients.
having just obtained my initial qualification in
complement each other?
finance. Ironically, I moved to marketing only
SWC: I tend to see expenditure on marketing
days after being informed that I had placed
LC: Sometimes, it isn’t easy to do marketing
more as an investment rather than a cost,
first worldwide in the final examinations of the
for a financial firm as you must be more
and as with any investment, there needs to
Association of Accounting Technicians. In fact,
creative while keeping a professional
be a defined and measurable return agreed
the move to marketing was not understood by
tone throughout. If a marketer realises
to at the outset of any marketing activity.
many, but I was confident that it would serve
that link and makes the most of it, they
One can have the most super, wonderfully
me well in my career progression.
would succeed in a financial-marketing
creative marketing campaign running, with
environment. As with any other aspect,
fantastic visuals and videos and promotional
financial marketers need to study and keep
activities. However, suppose the campaign
up with current financial events. Therefore,
or activity fails to deliver the »
...given the restrictions and several regulations that financial firms must follow, it is somewhat more challenging to market a financial firm. — Luca Caruana
MONEY
THE FINANCE EDITION
BUSINESS
I tend to see expenditure on marketing more as an investment rather than a cost, and as with any investment, there needs to be a defined and measurable return agreed to at the outset of any marketing activity. — Susan Weenink Camilleri
targeted and agreed-to KPIs over a defined
budget and ensuring it is followed and
period, which is largely expressed in
maintained throughout the year. Marketing
financial terms. In that case, success is
is also about being creative, creating the
questionable no matter how many of your
necessary awareness, raising the firm’s
consumers ‘liked’ your ad.
credibility, and attracting clients to your firm. So, the challenge is to remember that
On the other hand, however, if success
it’s not just about the numbers. It’s also
is only defined in financial terms, and
about enhancing the brand.
your eye is only on cost management and
containment, then this will likely inhibit
SWC: I sometimes get lost in the numbers
creativity and stifle creative thinking
and analysis, and perhaps in this way, I risk
‘outside the box’. This is precisely why
putting creativity and innovation to the side
I see the two fields of marketing and
when evaluating marketing proposals or
finance as complementary to each other,
initiatives. I do make a conscious effort to
and if well managed, could result in more
wear both hats in such instances.
significant gains for the organisation or commercial activity.
Do you think there needs to be more union between finance and marketing
How does having a financial background
departments?
make your work easier? SWC: My initial years working and studying
LC: Yes, definitely. One cannot survive
LC: It makes it easier because marketers
finance undoubtedly gave me the necessary
without the other, especially with increasing
need to plan and create marketing material
knowledge, discipline and understanding
competition and marketing awareness in the
according to the environment they’re
of financial systems and financial terms
financial world.
working in. It is undoubtedly difficult for a
in general, but more importantly, gave me
general marketer to work in a financial firm,
exposure to the financial backbone of our
SWC: I’m a firm believer and practitioner
especially if they are used to being more
internal systems and controls, and this has
of cross-communication across all
creative. I am not saying that there are
more than served me well over the years.
departments and functions within the
no ways and means to be creative with a
company. Over the years, I have found that a
financial firm, and there are some excellent
On the other hand, how does it make it
greater understanding of the point-of-view
examples locally where financial firms
more challenging?
and priorities of different departments and
are marketed in a fun and engaging way.
functions has led to less inter-departmental
Still, given the restrictions and several
LC: Sometimes, thinking outside the
stresses or conflicts and resulted in a
regulations that financial firms must
box becomes more difficult if you are too
more coordinated and smooth business
follow, it is more challenging to market a
knowledgeable about the financial world.
operation, the outcome of which has only
financial firm.
Marketing is not just about the marketing
been positive.
ISSUE 69
MONEY
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PROMO
A TIME OF GREAT OPPORTUNITY
“The time for businesses to consolidate is now,” says Luke Cann, who recently joined NOUV to head its specialist advisory company 36N Capital and lead its transaction advisory team.
ISSUE 69
MONEY
PROMO
NOUV set up
N Capital in
as a boutique
consultancy arm specialising in capital raising, mergers & acquisitions and advisory services. Five years down the line, the founding partners have managed several angel investments, staged round fundings, M&A activities, and emerging venture-based private placement transactions. And when it comes to the local financial advisory landscape, Luke Cann today is a household name; the type who sits with company owners to discuss the way forward and draft plans from inception and the way ahead.
Businesses should be thinking more long-term.
“I draw experience from capital raising, restructuring of companies, and assisting in clients’ strategic decisions within a wide range of industries. I have been involved in various projects and was lucky enough to have been involved right from their inception…. literally
areas relating to mergers and acquisitions
Luke’s work ethic is driven by trust, respect,
projects initiated during conversations over
together with capital raising, both locally
and honest values. “Businesses come to
lunch. And what I bring to the table is my
and internationally. It is a team that has
us not only because they trust our good
experience and the ability to overcome or
embraced the way the industry should do
judgement but because they know that our
mitigate challenges which I would have already
things, and we are all aligned to our mission
strategic consultancy goes beyond business
encountered on other projects.” Regarding
“to transform private family businesses to
transactions and is built on mutual trust,
the local financial services sector’s current
public interest entities”. Luke explains how the
understanding and a close relationship that we
situation, Luke states that the industry is
company’s primary work is to provide early-
develop over time.”
experiencing particular times. “Some would
stage, interim- and growth-round funding,
describe them as challenging, others would
predominantly in property markets.
say peculiar, and others would even go as far
“This is why they feel confident to provide us with sensitive data, and therefore, trust is key
as describing them surreal. What I see is a time
“Their requirements would generally centre
to the development of our service offering.
of great opportunity to put our act together to
around the raising of finance - from banks,
Respect to all stakeholders in the industry is
safeguard this essential economic pillar.”
capital markets or institutional investors.
also paramount, as is honesty in the way we
In addition, we advise them on strategic
conduct our business,” he added.
“I also believe the best way forward for the
decisions such as diversification, investing in
business sector is to start looking at things
new sectors, new companies or new markets,
“When it comes to business advisory, trust is
long-term seriously. Businesses need to
and we support our work by carrying out in-
key. Clients who seek advice look for someone
consolidate and think with an international
depth feasibility studies.”
they can comfortably trust and come with a
mindset. We are already witnessing some
proven track record. After all, the scope of
interesting business moves where some
“We service a wide portfolio of clients
seeking advice is to be open to opinions from
established brands form stronger synergies
from an equally diversified portfolio of
someone from outside the organisation who
instead of competing. I interpret this as a sign
sectors including property, real estate,
can bring factual and objective input, which
of maturity that reflects the attitude we need
hospitality, shipping, health and retirement,
ultimately drives a fundamental change in the
to start portraying across the whole sector.”
manufacturing, pharmaceuticals, IT,
company or organisation. This is what we do,
wholesale and retail and food and beverage
and we are proud of what we are achieving
amongst others. We also broker mergers and
with
Luke joined NOUV to lead
N Capital’s
Transaction Advisory Team earlier this year.
acquisitions for more mature enterprises.
Aside from the work ethic and how the
Within this context, our strength is twofold:
team operates, he feels privileged to have
experience and the ability to source local
found a very experienced team to work with.
and foreign finance providers. We also enjoy
“At NOUV and
considerable deal flow relating to the
N Capital, I found a team
who is determined to grow and evolve in
MONEY
mergers and acquisitions sector.”
THE FINANCE EDITION
N Capital,” concluded Luke.
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DEFI
A REVOLUTION IN FINANCE or
A MERE CRAZE? One of the buzzwords in cyberspace that is increasingly gaining traction is decentralised finance, better known as DeFi. The notion promises to challenge the way traditional finance has been done for the past decades and could shake up financial intermediaries should it be a successor of traditional finance as we know it. But what, exactly, is DeFi? Moreover, what is it looking to trump? Jake Aquilina asks. »
MONEY
THE FINANCE EDITION
DEFI
The traditional finance industry includes
week. However, some DeFi applications have
On the other hand, crypto traders can pair
companies that deal with investing, credit,
cemented themselves in the blockchain world
cryptocurrencies and stake them in ‘farms’ as
debt, money markets, lending, insurance,
and have become a popular alternative to
pairs to receive ‘harvest’ periodically. Farming
and anything related to managing money.
traditional finance.
involves placing LP tokens on a ‘farm.’ Staking
Traditionally, finance systems are known to
on a ‘farm’ is equivalent to executing a smart
be highly centralised and are usually run by
One of these applications is decentralised
contract to allow your tokens to be kept by
for-profit firms.
exchanges, better known as DEXs. Such
the ‘farm.’ As a reward, one would typically
online exchanges allow users to exchange
receive another token that is striving for
One of DeFi’s central points is that no single
currencies, both FIAT and cryptocurrencies.
popularity in exchange for your’ farm.’
and central authority controls currencies, as
DEXs are peer-to-peer markets where crypto
several entities within the blockchain world
traders conduct transactions directly. In
The future of finance?
would hold a copy of a history of transactions.
a way, they fulfil a core function of crypto,
In addition, those in favour of a blockchain
providing a platform for financial transactions
As indicated, DeFi is still a growing field, with
transition argue that DeFi enables more
not mediated by banks, brokers, or other third
many other innovative approaches to finance
speedy transactions as the intermediary would
parties.
being taken, and at times, adapted from
be removed from the equation of transactions,
the traditionally understood way of finance
thus allowing swifter transactions to be
There are also Automated Market Makers
management.
made. Finally, blockchain enthusiasts note
(AMMs). Using liquidity pools instead of
that this notion of DeFi allows for more open
traditional markets of buyers and sellers,
DeFi apps are gaining popularity, leading to
DeFi, trust arises from the open-source code in the smart contract, which runs with transparency, openness and immutability
transaction recording than privatised ones
digital assets can be traded without
a significant shift from traditional finance
through intermediaries.
permission and automatically. These types of
to this decentralised form of financial
applications have proven to be very popular
monitoring. In fact, in the space of a year, the
We must also note that DeFi is different from
among cryptocurrency users, with apps such
value of USD locked within DeFi stood at five
simple peer-to-peer transactions but allows
as Uniswap on the Ethereum blockchain and
times more by the end of November
for more complex transactions. This is where
PancakeSwap on the Binance blockchain
as from over $
smart contracts come in, which are programs
boasting over a combined $
stored within a blockchain and operate only
cap by the end of November
when predetermined conditions are met.
Executions of such contracts, therefore, are
As is always within the blockchain world,
Traditional finance versus DeFi, therefore,
made automatically. Cryptocurrencies such as
new terms get tabled in DeFi – which are
puts in place the questions of trust placed
Ethereum and Solana, two of the most popular
sometimes borrowed from traditional
by peers. By depositing money into a bank
cryptocurrencies, allow this to happen through
finance – to express certain functions of
as it is traditionally done, one trusts that
their platform.
smart contracts within the sphere. Such DeFi
the money will remain there. Governments
glossary includes phrases such as ‘liquidity
support this trust with laws, so laws will be
Types of DeFi applications
pools’ (LP) and ‘farming’. The former refers
enforced if the financial institution is in the
to a pool of coins locked in a smart contract
wrong. On the other hand, when it comes
Most DeFi applications are at conception.
that allows investors to receive a return on
to DeFi, trust arises from the open-source
The space is still yet blossoming, with more
their investments while facilitating an efficient
code in the smart contract, which runs with
innovative applications being created week on
asset trading system.
transparency, openness and immutability.
ISSUE
billion market .
,
billion locked in November
, it grew to over $
billion at the
current time of writing.
MONEY
SOFT POWER
MALTA’S SOFT POWER POTENTIAL (Part )
THE DIPLOMATIC FRONTIER Ray de Bono met with Minister Evarist Bartolo, Malta’s Minister for Foreign and European Affairs, in his spectacular office at Palazzo Parisio, adjacent to Castille Place, in Valletta. Frescoes and fine art adorn the office rooms, and its prestigious location, right next to the prime minister’s office building, is not a trivial detail here. So, what better way to learn about Malta’s diplomatic vision than the chance to have a frank chat with the man in charge of our foreign affairs?
Since the dawn of civilisation, nations have
has a long history as a means of promoting
diplomacy.” - Joseph S. Nye Jr. “Soft Power
been trying to win affection or favour from
a country’s soft power, and soft power was
and the Public Diplomacy Revisited. The
fellow states. Soft power is the ability to win
essential in winning the Cold War. Smart
Hague Journal of Diplomacy 14 (April 2019).
favour with one’s charms instead of coercion.
public diplomacy requires an understanding
Hard Power is when states use their military
of the roles of credibility, self-criticism
What are the criteria for determining a
or financial assets to reach their aims.
and civil society in generating soft power.
nation’s soft power credentials? Analysts
As authoritarian states today use new
consider many attributes, apart from
“A country’s soft power rests on its
cyber technologies and other means to
a country’s perceived identity in the
resources of culture, values and policies. A
disrupt political processes in democracies.
world’s eyes, ease of doing business, eco-
smart-power strategy combines hard- and
Questions arise about the boundaries of soft
friendliness, and the quality of the public
soft-power resources. Public diplomacy
power and the appropriate policies for public
service. They also focus on its citizens’
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Malta can only boost its soft power; it’s all that we’ve got — Evarist Bartolo
trustworthiness, friendliness, digital
growth. Finally, we discussed Malta’s
our foreign affairs handled well is paramount
readiness education, and global diplomatic
environment and tried to unravel why it was
if we are to one day be listed (let alone rank
stance, which is precisely the topic which we
in such a bad state. These were not random
high) on Global Soft Power indexes such as
are tackling this month.
themes. They constitute the essential
those of Monocle magazine or Portland.
metrics when defining our country’s soft We have analysed Malta’s soft power
power. Next in line in our series of articles
Diplomacy is our official voice on a global
potential from various perspectives in
about Malta’s soft power is diplomacy’s role
scale – alongside our world-renowned opera
previous articles. First, we discussed Malta’s
in shaping the country’s identity.
singer Joseph Calleja, or the voice of the late
architectural woes, its cultural and artistic
inventor of Lateral Thinking, Edward de Bono.
paradigms. We debated business and issues
In defining a country’s soft power prowess,
of fiscal integrity, corruption and economic
diplomacy is the cherry on the cake. Getting
MONEY
THE FINANCE EDITION
We may not have top international fashion »
SOFT POWER
brands like the Italians or the French, nor can
rule, to the Italians’ drive (and their age-old
from saying it as it is, and, with decades of
we speak about home-grown mechanical
affinity with the Maltese) for their country’s
political experience, his viewpoints are worth
engineering industries like they do in
unification. Way up to the recent British era in
their salt. So, we delved into how soft power
Germany or Japan. Still, we have our ancient
modern times.
is critical for the Maltese and the rest of the
history, rich archaeological assets and our
world.
political commitment to serve as a beacon
This
th-century building in Merchant’s
for peace - in a world that is increasingly
Street has seen it all. It radiates an
“Malta can only boost its soft power; it’s all
becoming more hostile.
international aura. Suffice to say that
that we’ve got”, opined Minister Bartolo.
Minister’s Bartolo’s office lies in the very The encyclopaedia Britannia defines
place wherein June
diplomacy as “the established method of
Bonaparte himself resided after he took
, Napoleon
we are experiencing new global political
influencing the decisions and behaviour of
possession of Malta from the Knights of St.
shifts and rifts. While neutral and
foreign governments and peoples through
John. If that detail isn’t impressive enough, I
sovereign, Malta is ‘committed to the
dialogue, negotiation, and other measures
don’t know what else is.
EU’s Common Security and Defence
short of war or violence.” The definition is most apt in Malta’s case.
In a post 9. , post-Arab Spring world,
Policy (CSDP)’ and adheres to the EU’s On a much more personal note, Evarist
foreign policies. How do you see neutrality
Bartolo taught me journalism at University,
helping or retaining its relevance in the
If his office could talk, it would reveal the
so, since we knew each other on a first-
foreseeable future?
most startling information about Malta’s
name basis, we both felt at ease, and the
past centuries, from the Knights’ period
discussion flowed naturally. The minister
“Malta needs peace for it to succeed. It is
to a seminal couple of years under French
is a frank talker. He does not shy away
in our best interest that all nations act as per the statutes of the United Nations and stick to their international commitments for peace and disarmament. Peace in the Mediterranean, for instance, is in our best interest. Despite its size, Malta needs to play its role to promote the peaceful resolution of conflicts both near and far.” I could join the dots in the minister’s narrative; all this talk about peace and preserving our neutrality was not a cliché. Our island has a long-standing reputation as a peace broker. “It was almost exactly
years ago, one
cold and rainy day, back in December
,
when we hosted the historic Malta Summit between US President George H. W. Bush and Soviet General Secretary Mikhail Gorbachev. This was a dramatic time in Europe, just a few weeks after the fall of the Berlin Wall. The two superpowers could have held this meeting anywhere globally, but instead, they sat down for peace here in Valletta, sealing the end of the Cold War.” Napoleon’s quarters at the Palazzo Pariso, Valletta
Suffice to say that Minister’s Bartolo’s office lies in the very place where in June 1798, Napoleon Bonaparte himself resided after he took possession of Malta from the Knights of St. John ISSUE 69
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“For a non-Maltese person, all this talk about
“We should go for a positive agenda. The
the extraordinary role of an island with less
European Union and African Union must
that’s barely
together patiently and with perseverance
miles long sounds pretty
presumptuous. Indeed, some would say we
engage with Libyan authorities to
have allusions of grandeur; however, Malta
recognise the status of UNHCR and IOM and
does stand out geo-politically.”
involve them in the running of migration reception centres. But first, we need to
“There are over
islands in the
build trust between the EU and Libya and
Mediterranean, and many of these are
reset our relations with them. The EU’s
much larger than Malta. Take Sicily, for
self-righteousness and its demonising
instance; it has over five million inhabitants and a surface area of ,
square km.
Nonetheless, despite its minute geographical
Libyan authorities dealing with migration Malta’s foreign minister addressing
while stopping cooperation with Libyan
Glasgow Conference
coastguards will be counterproductive and
footprint and the small population of less
worsen the situation. It is in the interest
than half a million, Malta is a sovereign nation
Colonisers have come and gone, but their
of Libya to be made safe for Libyans and
and UN and EU member state.”
footsteps are visible today. We still live
migrants in Libya, and we must all assist
with the remainder of colonial times. We
Libya in becoming so.”
Are we the mouse that roars? I jokingly asked
have not woken up from our post-colonial
the minister: “We do not roar – and we do
hangover yet. We still feel superior to our
Returning to the broader notion of soft
not want to be a mouse neither,” he replied
neighbours and lecture them at the slightest
power, I quizzed the minister further.
smiling.
opportunity. We talk to them but do not listen to them, so we try to impose our priorities
Malta’s reputation and, indeed, its soft
“Residents in small islands often think of
and agenda. We must sit down as equal
power prowess have these last few years
themselves as the centre of the world. We
partners and explore common ground and a
been dented. How do you see your role
can try to influence the rest of the world, but
common agenda. We must have a frank and
at the helm of Malta’s foreign affairs
the rest is constantly influencing us through
open relationship to build trust. The political
ministry, making a difference and bringing
global political shifts that affect economies,
process of atonement is indispensable to
about a change, in this regard?
peace, and peoples’ flow. So, despite our best
overcome the current stalemate and reset
efforts, there is always a limit to what we can
the relationship between the two shores and
“The whole world is going through a difficult
do.”
become equal partners.”
time. But, unfortunately, hard power »
“Diplomacy offers Malta the podium to voice its concerns at par with any larger nation. We are conscious of our limitations but do not shy away from saying it as it is.” When I spoke to him, Minister Bartolo had just returned from the Mediterranean Dialogues event in Rome. This event is an annual high-level initiative promoted by the Italian Government and ISPI (Italian Institute for International Political Studies); it brings together participants from all Mediterranean nations, Europe, North Africa and the Middle East. In his intervention, Malta’s Foreign Minister lived up to his creed as a flag bearer for peace in the Euro-Med area. Asked about overcoming the current stalemate and ‘revitalising partnerships’ across the two shores, with an accent on the turbulent realities afflicting Libya, this was his reply. “As Europeans, we must change how we think and talk and behave towards
Russian Foreign Minister Sergey Lavrov greets Minister Evarist Bartolo in Sochi, Russia.
our neighbours on the Southern shores.
31 May 2021
MONEY
THE FINANCE EDITION
SOFT POWER
appears to be taking the precedent, and for a nation like ours, this is never good news. Unfortunately, Malta did suffer a blow to its reputation and, while ensuring that the country seeks justice and addresses shortcomings, the nation must continue to draw help from its best assets, particularly its people, to help it overcome present challenges.” “From down under in Melbourne to Washington, and from Ghana to Tokyo, Malta has over
diplomatic missions or
representative offices around the globe. However, these offices alone can only do so much.” “We have thousands of its citizens and their relatives living worldwide, and the number of these people overseas would almost double our island’s population. The Maltese diaspora is an asset that we must work with to help promote our national identity, the immense history of our people, our common good and
Chinese Foreign Minister Wang Yi welcomes Minister Bartolo in Chengdou, China. 23 July 2021
our potential.” people, one finds nurses, doctors, surgeons,
do you see the Foreign Affairs Ministry
“Mistakes made by the very few should
scientists and engineers– all of them are a
helping make climate change more
not be allowed to mark the hard work and
living testimony to our national potential.
than just a fancy policy but a working
goodwill of the rest of our nation.”
We should work together and think of how
document with concrete results that one
to celebrate the image of Malta in the rest
can see and feel in action even here in
“We all have a role to play to help promote a
of the world, celebrate the best of what we
Malta?
better Malta; this is not just the ministers’
have to offer as people.”
responsibility. You find Maltese and Gozitan
“As a small island state with limited natural
religious missionaries across Latin America,
Malta was the first country to formally
resources, an ever-growing economy,
Africa and the Far East. These hard-working
table the issue of climate change as a
and high population density, the concept
people devote their lives to helping the
political agenda in the 43rd session of
of sustainable development must be at
poor through education and healthcare.
the UN General assembly; this was a
the heart of Malta’s economic, social and
There are thousands of Maltese in Australia,
significant milestone and a feather in
environmental development. Accordingly,
Canada, the US and the UK. Amongst these
our diplomatic hat. But, realistically, how
Malta recognises the
Agenda as the
most comprehensive global development plan thus far, and its value lies in its universal
Our nation has made tremendous economic, social and political strives since it gained its sovereignty. Our active neutrality as a nation devoted to peace and stability is an asset that has served us well and must be cherished and protected ISSUE 69
and transformative nature.” “The
Sustainable Development Goals
(SDG) and accompanying targets offer a blueprint for a better future, preserving what we have today whilst working towards a better tomorrow.” “Speaking about results - in the Index, Malta was ranked
SDG
nd out of
countries regarding SDG implementation. This is a strong signal of Malta’s commitment to achieving the goals, as Malta strives to improve on such progress.” “Yet, while Malta continues to play its part
MONEY
SOFT POWER
Soft power is less about propaganda and more about what people believe, what they see, how they behave and the quality of their lives locally and overseas, given the current
since its independence, our island has always
levels of globalisation and interconnectivity,
played its UN cards well and, according to our
no single nation-state can advance
minister, is highly respected in this regard.
sustainably without the collective support of other states, be it close or far. Malta
In
acknowledges that reaching the goals by
elected President of the United Nations
is a challenge for all, and the journey
, the late Prof. Guido de Marco was
General Assembly (
th Session). He
is long and requires the collective efforts
undertook several diplomatic initiatives
of all stakeholders within the international
leading to his visit to the refugee camps
community.”
in the Occupied Territories and Jordan to Ethiopia and Albania.
“Our country remains committed to continuing on this journey of sustainability
Wrapping up my interview, I asked the
and stands ready to work in partnership with
minister to recommend his viewpoints on
other States and stakeholders in this regard.”
boosting Malta’s soft power potentials.
The opportunity of Malta sitting on the
“When strategic arms limitation talks are at
United Nations (UN) Security Council seat
a standstill and conflicts are on the increase,
is a positive development and will help
the world inches ever closer to the risk of
Malta’s international image, including its
war. Hard Power, sadly is making a comeback.
much-needed soft power credentials.
Our nation has made tremendous economic,
However, following our island’s experience
social and political strives since it gained
on the UN Security Council seat in 98 ,
sovereignty. Our active neutrality as a
what are the prospects of this prestigious
nation devoted to peace and stability is an
position being granted again soon?
asset that has served us well and must be cherished and protected.” Next Month
“Malta stands a good chance of sitting in the “Malta should continue to strengthen
its reputation as a peace-builder”, and
The next focus in our series exploring
Malta is a candidate for one of the two non-
according to the minister, this will be “a
Malta’s soft power potential is tourism.
permanent seats up for grabs in the Western
feather in our hat, upping our soft power
This industry brings millions of
European and Other Regions group for
-
credentials over time. Soft power is less
people to our island each year, making
. The vote at the UN takes place in June
about propaganda and more about what
it an essential source of income for
, and so far, only Malta and Switzerland
people believe, what they see, how they
the country and offering us a huge
behave and the quality of their lives.”
opportunity to reach out to the rest
United Nations Security Council (UNSC).”
have put forward their bids for the two
of Europe and the world. Moreover,
vacancies. The Security Council consists of “While holding international titles or hosting
each visitor is gaining a first-hand
China, France, the Russian Federation, the
important international events is great
experience of Malta and the Maltese,
United Kingdom, and the United States of
at drawing media attention, one should
so it is apt that we ask how, despite
America.
remember that soft power needs a long time
the many challenges of the early 21st
to bear fruit. So, despite the challenges on
century, we can strengthen tourism as a
This will be an important and relatively
finds along the way, we should be humble
means of boosting our national identity
influential post, yet not the first of its kind.
enough to learn from past mistakes, focus on
worldwide.
Malta has already served as a member of
our progress and work towards reaching our
the UNSC from
goals,” concluded Minister Bartolo.
members, of which five are permanent:
MONEY
to
. It appears that
THE FINANCE EDITION
Until then, see you in 2022. All the best!
GREEN FINANCE
FINANCING GREEN & GREENING FINANCE AN OPPORTUNITY FOR MALTA As countries recover from the Coronavirus pandemic, we must take the historic opportunity to tackle climate change simultaneously – to build back better and greener. We can deliver green recoveries across the globe that create good jobs, trillions in investment and ground-breaking new technology. And we must. JP Fabri explains.
COP-
has come and gone. It has achieved less than hoped for.
the country focuses on getting off the greylist, effort needs to be made
Despite this, there remain global objectives that all countries should
to find niches in which Malta can deliver a specific and novel service
strive for. First, although no formal agreement has been reached,
offering. Green finance should be one. Not only is it a fast-growing
countries should still secure global net-zero by mid-century and keep
sub-sector of the financial services sector, but given its positive tinge,
global warming . degrees within reach. To deliver on this, countries
it can also support Malta in relaunching its status as a regional financial
will need to accelerate the phaseout of coal, encourage investment in
hub. Malta can further leverage its small island status by focusing on
renewables, curtail deforestation and speed up the switch to electric
the international financing of such islands, especially concerning blue
vehicles. Secondly, there is a need to adapt to protect communities
bonds. The opportunities are immense. However, for Malta to succeed in
and natural habitats. Finally, countries need to work together to enable
this area, a dedicated strategy is needed, which in my opinion needs to
and encourage countries affected by climate change to protect and
be built around three main pillars: greening finance, financing green, and
restore ecosystems, build defences, put warning systems in place
capturing the opportunity.
and make infrastructure and agriculture more resilient to avoid loss of homes, livelihoods, and lives. To realise the first two goals, international
Greening Finance
financial institutions must play their part. All parties must work towards unleashing the trillions in private and public sector finance required to
The transition to a green financial system means fundamental changes
secure global net zero.
to the way decisions are made across the economy. To achieve the goals of the Paris Agreement and our broader environmental ambitions, all
The reallocation of capital towards green investment offers the
finance will need to incorporate the financial risks and opportunities
potential to reshape cities, energy systems and land use worldwide.
presented by climate change and other environmental challenges. In
Moreover, the nature of this investment over the coming decades
addition, there is increasing international recognition of the need to
will determine the future of our climate, the natural world, and the
integrate climate and environmental factors into mainstream financial
resilience of our communities. It also presents a substantial commercial
decision-making.
opportunity for countries with green finance at the centre of their financial sector strategy.
Momentum to green the financial system has grown significantly in recent years. There is now widespread support for the Task Force on
Malta needs to embrace this for several reasons. There is no doubt that
Climate-related Financial Disclosures (TCFD) recommendations and
Malta’s financial services sector has faced several challenges over the
an increasing number of high-profile global initiatives, such as the
past few years, including greylisting. Due to several specific jurisdiction-
Sustainable Insurance Forum and the Central Banks’ and Supervisors’
related challenges and a lack of innovation in devising new regimes or
Network for Greening the Financial System (NGFS), have been
frameworks, the sector has lost its international competitiveness. As
established. However, this transformation must accelerate and increase
ISSUE 69
MONEY
GREEN FINANCE
to match the scale of the challenge faced, particularly as we move to a net-zero economy. Considering the financial risks and opportunities from climate and environmental factors needs to move beyond ‘corporate social responsibility’ to become a financial and strategic imperative and normalised as good business. Clear and consistent frameworks, such as green definitions and standards, will be essential to ensure confidence in the effective functioning of green financial markets. The government should be acting through matching the ambition of the objectives of the EU’s Sustainable Finance Action Plan, creating Sustainable Finance standards and working with the respective institutions to truly create a regional green finance hub. Financing Green A strategy to green the financial system needs to be combined with specific actions to mobilise and accelerate private finance flows into key clean growth and environmental sectors at home and abroad. The government has already launched several plans that should lead to the decarbonisation of Malta by
. This now needs to be matched
by initiatives that will support the required investment. Malta will be benefitting from a significant European Resilience and Recovery Fund package that has been dubbed by Ursula van Leyden as one of the greenest funding packages and which will undoubtedly support the transition. In addition, the Malta Stock Exchange has launched the framework for the launch of Malta’s first green bonds by local players, and the Malta Development Bank is also playing a pivotal role in securing finance for such projects. However, the government needs
clear role for government to act as a cornerstone investor, it is equally
to continue working on this pillar by establishing robust, long-term
essential that green projects can develop new revenue streams that
policy frameworks, improving access to finance for green investment,
provide rewards for the environmental benefits they deliver.
addressing market barriers and building capability, and developing innovative approaches and new ways of working. Whilst there is a
Capturing the commercial opportunity, Green Finance brings together many areas where the opportunity lies, not just in financial services but also in encouraging innovation, analytics, and low carbon technology. Malta needs to start seeing itself as a potential regional hub to test
As the country focuses on getting off the greylist, effort needs to be made to find niches in which Malta can deliver a specific and novel service offering. Green finance should be one.
innovative technologies. Demand for green finance from consumers, investors, and governments is expected to grow substantially over the coming decades. Malta should start working to capture a fraction of this market especially given its strategic positioning and its long-time pioneering approach in climate change, especially at United Nations level. To this end, Malta needs to seriously consider developing its green finance centre whilst developing its resources in the area. The National Employment Policy has also focused on this area by supporting investments in capabilities and skill-building in the green economy. I believe that green finance offers a unique opportunity for Malta on several levels. Malta needs to seriously consider this growing niche and should also see it as a means to relaunch its financial services sector whilst also supporting the growth of other economic sectors. The transition to a net-zero economy requires a significant reallocation of resources, and having an attractive regime in this area can genuinely position Malta as a regional hub. The future is now and entirely in our hands.
MONEY
THE FINANCE EDITION
ECONOMY
THE PANDEMIC SAGA and ITS SOCIO-ECONOMIC IMPLICATIONS The fourth wave of coronavirus infections is raging across continental Europe, forcing governments, once more, to take drastic actions to mitigate the spread of the virus and stop from hospitals being overwhelmed. Jordan Portelli explains.
ISSUE 69
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ECONOMY
Austria, Germany, and the Netherlands
with low vaccination coverage. Thus far,
have experienced Western Europe’s fastest
Austria’s vaccination rollout covering
increase in cases since the start of the
of the population remained susceptible to
month. Although aware of the economic
many political forces, vaccine sceptics, and
As expected, a rise in cases was inevitable.
repercussions set to pan out, governments
spreaders of fake news. Also, a mid-summer
However, the fear of the emergence of new
responded. Amongst all, Austria’s government
declaration that the pandemic has been
variants continues to weigh the most on
have thus far taken the most stringent
“mastered” with a vaccination campaign,
investors’ sentiment. Indeed, the unknown
actions recently, imposing a three-week
far from being complete, did not help. In
severity of the variant and its implications
national lockdown and making vaccinations
Eastern Europe, the situation is far worse
in terms of restrictions will undoubtedly
compulsory as of February ,
amid a notably lower vaccine uptake. Bulgaria,
condition the economy.
. In
an essential role in underestimating the yet %
dangerous pandemic threat.
addition, Germany restricts access to public
Europe’s worst in terms of vaccine coverage,
places for the unvaccinated, while the
saw the death rate surging, reaching an all-
On a positive note, undoubtedly, as opposed
Netherlands is shutting restaurants and bars
time high in recent weeks. Although we have
to
early.
seen a push in Europe, many countries still
how a rise in cases, as we are experiencing
, we are now more knowledgeable on
lag. Despite better vaccination programmes,
now, should be tackled. In addition, we have
Indeed, the countries suffering the most
herd immunity levels in many countries
scientific evidence that vaccines are doing
from a rise in infections and thus reacting
remained way below the desired levels.
their bit to mitigate the pandemic. Therefore, if
strongly against the virus’s threat were those
Unfortunately, politics once again has played
hospitalisations are kept at bay, we should »
Today, ‘technocratism’ ideology might be the more plausible solution to overcome the various socio and economic challenges. MONEY
THE FINANCE EDITION
ECONOMY
manage to navigate the rise in cases.
Critical macro-economic data trackers
We now see low levels of
Nonetheless, economic recovery might be still
that financial politicians use for monetary
level since
a shot in the dark despite some encouraging
decisions show that the economic picture
psychological impact.
signs.
is unconvincing. Case in point, looking at
. %, the lowest
, possibly given the pandemic’s
‘capacity utilisation’, a company’s potential
Indeed, delving deeper into the underlying
Interestingly to analyse from an economic
output in simple terms, is still weak compared
dynamics of this critical economic metric, it
perspective at this point, the current inflation
to pre-pandemic levels. There is a clear
is visible that the spike in employment during
levels are supply-driven rather than demand-
dispersion in the U.S. between the ability
the pandemic has pushed many to rethink
driven. Supply bottlenecks, the key source of
to increase output and the current levels.
their position within the labour force. For
inflationary pressures, is a phenomenon we’ve
Possibly this could be twofold - the current
example, many people who lost their job in
been witnessing in
supply disruptions and/or still weak consumer
the age group between
by a second coronavirus wave, a blockage in
demand, with the latter being a substantial
for early retirement. In contrast, the younger
the Suez Canal earlier in March, port closures,
long term concern as it shows that consumers
generation within the labour force has
and capacity limitations have over the year
remain vigilant following the pandemic shock.
deliberately opted to move out of employment
. Disruptions worsened
seemingly persisted.
-
have opted
and improve their quality of life. The recent In Europe, despite it varies across
increase in quits in the U.S. poses a severe
Unfortunately, the recent rise in coronavirus
countries, we have seen a strong pick-up
economic risk in the future.
infections may worsen an already tense
following the lows of March
situation. Thus, we may once more envisage
capacity utilisation in the euro area
the shift of retail consumption in favour of
averaged 8 . % from 98 until
goods rather than services. That said, supply
reaching an all-time high of 8 . % in the
has brought about drastic, irreversible
chains, thus far proving vulnerable – even
fourth quarter of 989 and a record low
changes. Businesses had to take difficult
if caused by excess demand, may further
of 9.
decisions to survive, with many believing that
experience disruptions. A practical example,
Thus, we have more encouraging levels as
this might have been a blessing in disguise in
seaports, should lockdowns continue to be
opposed to our peers.
identifying unnecessary costs which can now
. Thus,
% in the third quarter of
As said, the structural implications are ,
9.
reinstated, may face limitations in terms
inevitable. We must accept that the pandemic
do without over the long term. In contrast,
of container handling, inevitably impacting
What is certain is the clear linkage between
we individuals might have taken a different
loading and further increasing supplier
capacity utilisation and inflation, with
approach to our day-to-day challenges.
delivery times – a key barometer of supply
the latter hinging on monetary decisions.
delays.
Moreover, in an augmented economic
Indeed, the changes brought about by
argument, unemployment is another crucial
the pandemic have had positive long-
On the contrary, services that rely on contact
factor within the equation, with the latter
term implications, possibly more from a
amid the pandemic’s first and second waves
and capacity utilisation, economically,
sociocultural perspective. However, these
were harshly impacted as governments
complementing inflation. Put simply, if
positive attributions will inevitably have also
and health authorities imposed mitigation
unemployment remains elevated. Capacity
negative long-term economic implications.
measures to reduce the spread of the virus.
utilisation levels will remain subdued on the
Thus, the way forward is bumpy. The
However, as expected, we’ve experienced
assumption that demand is weak, which will
economic dynamics have become way more
a strong rebound in mid-
also condition inflation. This is one of the many
complicated, and thus finding a balance
interesting is that we have seen sustained
chain arguments we discuss daily to try and
in this ever-evolving complicated world is
high levels over the past
analyse different economic scenarios and their
undoubtedly an uneasy challenge. Political
impact.
nonsense, as we have been experiencing
. What’s more years and above
historical averages. This bodes well going forward to mitigate the possible softness
over the past years globally and domestically,
in manufacturing activity due to possibly
Moreover, unfortunately, the scars triggered
is undesirable at this point. At these difficult
prolonged periods of supply disruptions.
by the pandemic will eventually be more
times, ‘technocratism’ ideology might be
Indeed, with supply shortages worsening,
visible, and long-term structural implications
the more plausible solution to overcome
manufacturing growth is likely to remain
are inevitable. A fascinating example is the
the various socio and economic challenges.
subdued for some time to come, leaving the
current U.S. labour participation rate, i.e.
Being highly rational in our decision making
economy reliant on the service sector to drive
the percentage of all working-age people
should command the plan now more than
growth.
employed or actively seeking employment.
ever going forward.
In Europe, despite it varies across countries, we have seen a strong pick-up following the lows of March 2020. ISSUE 69
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Vilhena Malta Bond Fund
2.12%*
*Current income yield as at 31/10/2021. Talk to us | 2131 2020 | bovassetmanagement.com Past performance is not necessarily a guide to future performance. The value of the investment may fall as well as rise and currency fluctuations may also affect the value of the investment. Any initial charges that may apply may lower the amount invested and the amount received upon redemptions. Investments should be based on the full details of the Vilhena Funds Prospectus, Offering Supplements and the Key Investor Information Document, which may be obtained from BOV Asset Management Limited, Bank of Valletta p.l.c., Branches and Investment Centres and other licensed financial intermediaries. The investments underlying these financial products do not take into account the EU criteria for environmentally sustainable economic activities. BOV Asset Management Limited is licensed to provide investment services in Malta by the Malta Financial Services Authority. The Vilhena Funds SICAV p.l.c. is licensed by the Malta Financial Services Authority and qualifies as UCITS. Issued by BOV Asset Management Limited, 58, Triq San Żakkarija, Il-Belt Valletta, VLT 1130, Malta. Tel: 2122 7311, Fax: 2275 5661, Email: infoassetmanagement@bov.com, Website: www.bovassetmanagement.com. Source: BOV Asset Management Limited.
FINANCE
INVESTMENT ALTERNATIVES UNDERSTANDING THE RISK
How do you gauge the risks involved for the different options available if you seek to invest your money? The Malta Financial Services Authority explains.
People invest their money for various reasons,
Return on investment risk
not the least believing that it is safer to do
amount invested. The risk of losing your capital depends very much on which investment you
so than to leave it as cash under a mattress.
Some investments bear more of a link than
choose. If you are after capital protection,
However, overcoming the risk of theft (which is
others to how the economy is performing. For
you may choose to put your money into a
ever-present even with investments) does not
example, in general terms, money deposited
bank, as you are covered by the depositor
mean that other investment opportunities are
into a commercial bank and fixed-income
compensation scheme administered by the
entirely risk-free.
bonds offer an interest rate that should not
MFSA, which protects you against default for
fluctuate. This means that you can plan ahead
up to €
Perhaps it would be opportune to explain
to calculate how much return you would get on
bank account, so your money is protected up
what is meant – in this context – by risk. In an
your savings.
to this threshold.
of the outcome not being what you expected.
Given that bank deposits are generally less
With bonds, the situation depends on various
However, that implies that what you expected
risky, you can expect lower returns compared
factors, including whether the bond is
was based on
to an investment in bonds or shares. However,
secured or guaranteed or both. First, one
case. Since investor protection and education
you must consider that if interest rates are low
must distinguish between guarantee and
of consumers in financial literacy are essential
and your money is tied up for years in deposit
security. A guarantee is a ‘promise’ by another
remits of the Malta Financial Services
accounts, inflation can reduce the value of
person – usually, an operating company within
Authority (MFSA), we have put together a
your savings over time.
the same group as the issuer – to honour
,
of the sum invested for each
ideal world, the risk would be the possibility
/
vision, which is rarely the
guide to some of the main risks and how to
the payment of bond interest and principal,
assess them. Inadequate information about
When it comes to bonds and shares, the
should the issuer fail to pay the bondholders.
financial instruments and trading venues can
economy’s poor performance or the company
In the case of a guarantor, one must analyse
result in consumers investing in an unsuitable
itself might result in the issuer being unable
the financial soundness of the guarantor. One
or inappropriate product. Therefore, investors
to pay interest in the case of the former or
crucial question is whether the guarantor and
need to understand the possible outcomes
dividends in the case of the latter. Again,
the company issuing the bonds are dependent
and how these ties into their particular
this might be difficult to gauge at the time of
on each other. If yes, does the guarantor add
circumstances. Thus, they must make
the investment, mainly if it is one with a long
any value?
informed decisions about their investments
duration, as things can change considerably
and weigh higher risks against the need for
over time. However, it is nonetheless
On the other hand, security takes the form
higher returns.
something to bear in mind when comparing
of issuer’s assets which are segregated from
investment categories. It is also vital to know
the rest of its assets and held by a third party,
All forms of investment carry some degree of
all there is to know about a product and the
usually a security trustee, to be sold or used
risk. A few aspects one should consider are:
entity before investing in it!
to the benefit of the bondholders, should the
»
The original sum invested.
»
The return on that investment.
»
The liquidity– in other words, being able to
»
issuer fail to pay bond interest and/or the Risk of capital loss
principal. Therefore, in the case of a secured bond, one must analyse the value of the
get your money back when you need it.
Some investments carry the risk of capital
security and the risks associated with that
The time horizon.
loss, meaning that you can lose part or all the
security.
ISSUE 69
MONEY
FINANCE
With an unsecured bond, if the company that issued the bond fails for any reason, then the investor could lose all the money they put into it. Because the risk is, therefore, higher for such bonds, the issuer may offer a higher interest (coupon) rate to attract investors. If a bond offers a higher return than other bonds, it is often a sign that the investment in that bond or company is riskier. Therefore, investors need to seek professional advice to help them assess whether the product is suitable for them and if they can afford to absorb the worst-case scenario of losing all the investment. The fact that there have never been any defaults in Malta should not lure investors into believing that this is not a possibility – no matter how remote. However, investors – and their financial advisers – should scrutinise the associated prospectus to understand the company they are entrusting their money to and understand that no one has a crystal ball to see into the future. Whereas with a bond, investors are essentially financing a company, with equities, they are buying part of it, so if something happens to the company – it stops trading or goes bankrupt – then they need to understand that they may not take precedence when it comes to recouping their investment and lose their capital. The features of a security can impact the ranking of the investors in the case of a default. Investors must understand the ranking of their investment before investing. Investors need to consider that only if they invest in authorised firms will they receive the protection of the Investor Compensation Scheme, which covers certain types of
investor’s timeline: a young couple investing
with the bond or equity is in high demand
investments through licensed investment
for their retirement in a few decades will have
and possible to sell. With shares, the investor
firms. Failures by authorised firms qualify for
a different risk appetite to a retired couple
also must bear in mind that the share price
compensation under the Investment Services
wanting to have enough money at short notice
fluctuates and – since these are considered to
Act, but the cover per person is limited to
for their golden years.
be long-term investments, the time when they
€
,
.
might want their money might not be the most Fixed deposits at a bank may not allow early
Investment horizon considerations
auspicious time to sell their shares.
withdrawal unless in specified circumstances, and evidence of these is provided. Still, most
Concerning bonds, it should be considered
Investors need to consider whether they
savings accounts allow the account holder to
that fluctuations in interest rates can affect
might need to liquidate their investment at
withdraw some or all their savings on short
the market value of the bonds if you want to
short notice. Say there is another investment
notice.
sell them. The bottom line is that investors
they are considering, or an unexpected
must seek information on their investments
expenditure such as sickness crops up: how
With bonds, the moment when the investor
from a reliable source such as the prospectus,
long would it be before you could recoup your
might want the funds back by selling the
company announcements, and advice from a
capital? This will vary greatly depending on the
financial instruments might not coincide
regulated investment adviser.
MONEY
THE FINANCE EDITION
MARKETING
SLOW STEADY WINS THE RACE AND
There are very few things in life that frustrate Richard Muscat Azzopardi more than a panicked approach to marketing that seems to believe that the role of the discipline is to save a business when it’s doing poorly. But, convearsely, these businesses seem to think that, in a classic Schrodinger’s cat logic example, you should cut down on marketing the minute business starts looking bad.
I want to address why both statements
you should scale back on advertising, even
are flawed in their nature, especially when
if not necessarily on brand and marketing
it comes to marketing businesses that do
communications. If you’re a tourism company
work with other businesses. I’m separating
in the middle of a pandemic, for example,
these today because of the nuances I’ll be
spending money on trying to fill bed nights is
discussing; however, this applies to every
a bit of a fool’s errand. However, these cases
business we’ve worked with in broad strokes.
are extreme and serve as the exception, not the rule.
I also want to make one thing clear before I proceed any further. There are times when
MONEY
THE FINANCE EDITION
So, let’s get cracking. »
MARKETING
Simple. Start looking at marketing for your
We don’t perform magic for them; we help them articulate what they already know.
B B business like something you can’t work without. You don’t file your taxes or work on your accounting only if something or other happens to your business. You always pay the rent on time. You always pay your employees, and I’m sure you don’t consider your electricity bills optional, to be paid only when the business is doing well or when you need a boost at the end of your quarter.
Maintaining (or increasing) marketing spend when business is bad
Marketing should be the same. It’s something that should be on every one of your agendas.
Why is it a bad idea to stop marketing when
You should constantly consider leaving any
business is bad? Because by doing that, you’re
marketing opportunities on the table. It should
only stopping the inevitable. Suppose you
be a central part of your annual strategy. It
think that you should stop marketing when
should have a budget tied to performance,
your business is failing (unless it’s because of
and it should have a practitioner who owns the
an external factor such as the pandemic, I’ll
function from top to bottom.
reiterate). In that case, you either have your marketing function working exceptionally
With long-term marketing efforts, you should
badly, or you’re running a business on highly
also see a dramatic increase in the return on
conservative and, quite frankly, flawed ideas.
investment you get from marketing to other businesses because the buying cycle for B B
The purpose of marketing is to generate
purchases tends to be much longer than the
business, so if you are doing poorly, it should
cycle for B C. You might decide to buy a €
be the first thing to get more budget, not less.
phone cover on a whim, but you’re not going
Sometimes, if your marketing function has
to choose your next audit firm because you
been failing you, you might need to invest
saw a single ad that promises
money in figuring out why marketing is failing
Black Friday.
% off for
you. However, there are very few scenarios where you need to stop getting business to
B B buyers expect to buy from a brand
save a business. This is especially true with
that they can trust, and you can only build
B B businesses since, with B B marketing,
this trust by putting effort into long-term
you can usually measure the success of your
marketing efforts that establish your brand
marketing efforts with even more certainty.
(or your key executives) as people who are worthy of trust.
Trying to save a business with Marketing Most B B businesses we work with tend to be Just like it’s a silly idea to kill your marketing
excellent at what they do. They would have
when your business is passing through bad
grown organically by word of mouth, adding
times, it’s a false expectation to think that
clients on as people move jobs or as their
marketing can save your business if it’s not
clients recommend them to other businesses.
doing well. Of course, marketing can be the
But overall, we see that they don’t have the
cornerstone of a successful business. It can be
knowledge to create a repeatable process to
a vital part of a turnaround strategy. But very
build a proper relationship with audiences at
few times have we been in a situation where
scale.
a burst of marketing (alone) would have been enough to solve the problems of a business
We don’t perform magic for them; we help
in trouble. B B marketing takes time, and
them articulate what they already know,
decision-makers are rarely ready to decide
bringing their knowledge to the front in a
in a few minutes or a few days. Thus, the
way that allows them to shine in their clients’
processes behind most B B transactions are
minds. By looking at marketing efforts as a
much longer.
long-term process, they win over the hearts and minds of their audiences, ensuring that
What should I do for long term B B
they’re the first port of call when services or
marketing ROI?
products in their area are needed next.
ISSUE 69
MONEY
bloom@bloomcreative.com.mt
We build remarkable brands. To view a selection of our best work, visit bloomcreative.com.mt
ESG
ISSUE 69
MONEY
ESG
INITIATING “ESG” THROUGH SUSTAINABLE INVESTMENT The demand for transparency on sustainable and socially responsible practices is rising, mainly since millennials, naturally more environmentally conscious, are slowly taking over in business. Over the last decade, ESG (Environmental, Social and Governance) has replaced CSR as companies are becoming more and more accountable to their various stakeholders like investors, customers, employees, and non-governmental organisations that want to evaluate a company’s impact on the world. Michael Psaila Debono explains.
What is ESG?
Governance refers to establishing a set of
A BoF & McKinsey report estimated
rules or principles defining rights, structure,
global millennials are willing to spend more on
ESG stands for Environment, Social and
responsibilities and expectations between
brands with a CSR commitment.
Governance, essentially a framework to
different stakeholders in the governance of
analyse companies and assess how well
corporations. Active corporate governance is
A
they compare to their peers in terms of
essential for the development of companies
questions to consumers to understand the
performance against these metrics:
and provides long-term benefits for
perception of these big companies and how
shareholders, employees and society.
they are performing in terms of keeping in
Environmental factors look at the
% of
global PWC survey put forward
line with ESG tactics. The consensus is that
contributions a company or government
When one puts all these together, you’re
consumers (especially millennials) want to see
makes to climate change through greenhouse
looking at how you can assess a company
businesses play an even more significant role
emissions, along with waste management
without looking at its balance sheet but
in accelerating progress on ESG concerns.
and energy efficiency and looking after the
instead, look at how it impacts the broader
They want businesses to invest in making
environment around them.
society at large.
sustainable improvements to the environment
and society, not just comply with regulation,
Social factors include:
Consumers have spoken
and they’re prepared to reward (or penalise)
»
Employee rights and wellbeing
»
Labour measures in the supply chain
According to Morgan Stanley,
»
More routine issues such as adherence to
millennials are interested in sustainable
Building your brand through ESG practices
workplace health and safety
investing, and a sustainable brands survey
found millennial investors are more likely to
In a world of social media and
Establishing and encouraging a diverse
integrate sustainability into their consumer
companies are under constant scrutiny
workplace culture that integrates positively
behaviour. As millennials become employees,
by investors and customers alike, from
with its local community is fast becoming a
buyers, and investors, they note positive
their investment selection process to their
requisite among younger consumers.
corporate action and reward them with loyalty.
employees’ health and wellness benefits. »
MONEY
brands accordingly. % of
THE FINANCE EDITION
-hour news,
ESG
While the idea of sustainability isn’t new,
be perceived? To reach that perception, what
employees and establishing the “ambassador”
incorporating ESG efforts, strategies,
is the brand story going to be? The proper
approach. Sharing success stories and helping
and reporting into a core business model
narration takes a novel to the next level.
employees take ownership of ESG efforts
is becoming increasingly important to
This is no different in marketing your brand.
promotes success through a decentralised
companies. Centring your marketing efforts
Consider all media and elements within your
management approach.
around the company’s sustainability strategies
brand as they can help as you develop your
and telling that story effectively will increase
sustainability narrative.
brand loyalty and value.
As millennials become employees, buyers, and investors, they take note of positive corporate action and reward them with loyalty
Results-driven stories As mentioned in the introduction, ESG
Consistent communications approach
initiatives skip away from consumers checking
What is your unique company point in terms of
the balance sheet. While this is all true, a
ESG? Have you identified it? If you have, then
company remains a company at the end of
how are you communicating it? First, make
the day. Trustworthiness cannot exist solely
sure that your communications approach
through ESG efforts, but consumers do
consistently aligns with your mission, values
consider its performance and the products/
and goals. The consistency must prevail across
services it must offer. All this, combined with
investors, employees, and consumers to
ESG efforts, will undoubtedly be the most
ensure a unified message.
effective. Consider pushing out success stories and enabling partnership programs
Focused content marketing
with other companies and consumers.
We live in an era of constant communication. Being top of mind is the most crucial yet
How to track your ESG progress
challenging aspect in today’s marketing world.
Once your ESG strategy has been implemented
As consumers, we are drenched with so much
from both an operational aspect and a
content coming from all angles that if content
marketing point-of-view, as a company owner,
push-out is paused, even for a little while, you
the final thing needed is to track the progress
would be risking losing consumer interest as
and analyse whether all the ESG investment
a company. To stay authentic, you should not
was worthwhile. If not, it is essential to see
address every nationwide issue, nor do you
how to optimise the ESG strategy to make it
have to! Be focused and narrow it down to
worth the investment.
issues that integrate well within your company identity, values and mission. Promote success
How can one track ESG progress?
stories, use educational ESG infographics,
Since we are considering brand identity and
share employee/consumer testimonials, push
brand perception here - the best way to track
out brilliant articles, and always push out
your ESG progress would be to go directly
informational and not promotional content.
to the consumer and potential consumer. The best way to do so is by pushing out
Clever public relations
pulse surveys which, depending on your
The media plays a crucial role in shaping public
business, could set a benchmark against your
perception. Consider developing a public
competition and get real-time knowledge on
relations strategy that gets the word out
where your brand stands. Like that, you would
about your company’s ESG efforts through
analyse whether you are on the right track
appropriate media channels. However, this
with your ESG strategy.
includes riding an excellent line. Companies who go down the PR injection route must
Pulse surveys are short, concise and flexible.
be wary that the brand narrative is being
They can be targeted to specific demographics
presented consistently and, most importantly
and are the perfect way to collect real-time
There are several ways a company can achieve
- not overdo it. Hence the adjective “clever”
feedback that you can then work on for
this and gain a competitive edge in the
in the subtitle. Consumers can check out
optimisation in whatever the feedback is
process, primarily if marketing efforts focus on
companies that try too hard to look good and
as they inform and enable more thoughtful
communicating proactive and integrated ESG
get on consumers’ good books. In the eyes
decisions.
policies.
of the average Joe, this can compromise the genuineness behind the brand story.
With passions in writing, football (not soccer), music, and the culinary arts, Michael, a
Marketing your ESG efforts Beyond PR
business development executive at Anchovy,
Analysing your ESG story
A company’s ESG marketing efforts must
has formed a character that appreciates the
Your brand, your brand, your brand. How is
extend beyond blogs and public relations to
understanding of creativity being all around
your brand perceived vs how do you want it to
ensure your story is authentic. Empowering
us - no matter how mundane.
ISSUE 69
MONEY
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WINTER EDITION JANUARY 2022 Follow us on
PROMO
GO FURTHER FASTER IN 2022!
Frank Borg and Gordon Attard
Perseverance is at the heart of every success
acts as though time is of the essence because
History records that King Solomon was one
story because it is the driving force that
he is energised by a deep sense of desire to
of the wisest and wealthiest men to have
empowers individuals with the motivation to
see his goal translate into reality. This strong
lived. He wrote, “Whatsoever your hand
keep ongoing. Synonyms for “perseverance”
desire ensures resolve, otherwise the slightest
finds to do, do it with your might…”. These
are “insistence, urgency, firmness, resolve,
difficulty (or fear of failure) that surfaces will
powerful words are designed to be a source of
determination”. These words accurately
bring one’s journey to a grinding halt.
encouragement. They admonish us to forge
characterise “perseverance” and perfectly
ahead with sheer focus, diligence, enthusiasm
emphasise the attributes needed to reach
Perseverance means that you act with passion
and energy. The intent of his words
any worthwhile goal. There is no doubt that
and purpose to follow a dream. It resists giving
communicates that one must hunger and
to reach any level of success, a sense of
up or slowing down because it understands
thirst after goals to the point where it becomes
urgency and insistence must inspire one. A
that failure isn’t an option. Successful people
an obsession. This obsession for success will
successful person allows nothing to get in
are on a mission; that mission is to see their
guarantee that no stone is left unturned in
the way of reaching his goals and decisively
goal materialise.
reaching the next level.
ISSUE 69
MONEY
PROMO
Perseverance is a state of mind. It can be
lead you to over-perform and obtain what
for everything to be perfect before you
developed and nurtured by implementing
you desire because you don’t doubt yourself
start on your path. Success is reaped when
five easy steps, which we’re going to outline
and your abilities. As we always say, self-
you “go for it”. Use initiative and take the
for you in this piece. You’ve got to, first of
confidence is a superpower; you will see the
first step. When you come to any level of a
all, have and set the right goal! Simply wanting
magic happen when you believe in yourself.
roadblock, break the barrier by researching,
something isn’t enough. You must have a deep,
It is the one attribute that will help you strive
asking questions and figuring out a creative
burning desire for your goal; this can only
unceasingly to surpass your expectations and
way to proceed. There is always a solution to
come if you fix the right goal.
the expectations of others.
every problem; it’s just a matter of finding it.
Leave no stone unturned in moving forward
You then need to have a good plan to reach
Fourthly, you’ve got to ensure single-
to achieving and reaching the next level.
your goal. This is the second point. A good plan
mindedness! Focus and concentrate all your
Forget naysayers; run from them. If you allow
lays out the steps that you need to implement
energy on your goal and how to get there. Let
your goal to become an obsession, you will
Whatsoever your hand finds to do, do it with your might... to reach your goal. It will also prepare you for
nothing blur your vision or distract you from
automatically be proactive and determined
what needs to get done next in your journey.
where you are headed. Let your goal be your
to reach it.
Finally, a well thought out plan will keep you
overriding purpose. Immerse yourself in it and
motivated and will ensure that you persevere,
allow it to become an obsession, as this will
These five steps will help you develop and
especially as you see progress and mini-
keep your focus where it needs to be to reach
intensify the perseverance you need to
milestones being reached along the way.
your desired end. Be steadfast and unwavering
practice to reach your goals. Keep in mind
by focusing your attention and energy on
that perseverance is the driving force that
Self-confidence is the third important step in
reaching your goal. Single-mindedness will
empowers motivation. So jump out of bed
ensuring perseverance; this means that you
help maintain your perseverance.
every morning and hit the ground running.
believe in yourself and the results that you
Go for it! Your dream cannot wait. Use these
can achieve. Self-confidence will give you the
Finally, the fifth step is to be proactive! Get
five steps to break out of the ‘average’ cycle.
courage and energy to keep trying even in
up, look in the mirror, and tell yourself you
Persevere for a better life where you are living
the face of adversity or setbacks; it can also
are ready. Don’t tiptoe through life, waiting
your true potential!
With shared interests and goals, Frank Borg and Gordon Attard have, over the years, built a formidable work relationship that has extended to a solid friendship. Their families have travelled together. They often talk about sales, goals, motivation, family, life’s hurdles, mistakes, lessons learnt and much more. In line with their work ideals, which revolve around commercial operations and human resources, they have a strong desire to reach out to the largest audience possible by offering tools, tips and strategies to help others reach their goals as quickly and as efficiently as possible. Aside from giving talks, training and coaching, they regularly release episodes of their increasingly popular ‘Frank and Gordon Show’, aired on their YouTube channel. Consider subscribing at youtube.com/FrankGordonShow to keep up with this dynamic duo and, importantly, to obtain a regular dose of motivation that will help you to ‘Go Further Faster!
MONEY
THE FINANCE EDITION
FIERCE Photography Marvin Grech
Styling Peter Carbonaro
Model Christian @ Models M
Hair Adrian @ Barnuz
FASHION
Shirt, jeans by Charles & Ron
Pants by Charles & Ron
Shirt by Charles & Ron
Roll neck top by Dan John, necklace model’s own
Scarf by Charles & Ron
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FA SHION
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BALENCIAGA Tool . XL north-south logo-debossed full-grain leather tote bag € ,
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ISSUE 69
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GIFTS
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THE NORTH FACE Borealis ripstop-trimmed camouflage-print nylon backpack €
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