MONEY ISSUE 78

BUSINESS

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LIFEST YLE

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DESIGN

THE BUSINESS EDITION ISSUE 78

Alan Cuschieri / 22 COVER STORY

MONEYBASE BUSINESS REVOLUTIONISES FINANCIAL MANAGEMENT

Mariella Camilleri / Katrina Cuschieri / Leonie Baldacchino / Giselle Borg Olivier / 18

VIEW THROUGH THE GLASS CEILING

Joseph Zammit Tabona / 14

WHEN ACTION SPEAKS LOUDER THAN WORDS

Marco Santini / Simon Debono / Steve Mercieca / 26

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WELCOME

Editor’s note — As we delve into the heart of

Dayna questions Malta's stance on e-scooters

this edition, the pulse of business beats louder

and its potential to pioneer micro-mobility in

than ever. Six months have passed since the

the EU.

Malta Financial Services Advisory Council unveiled its strategy. In an exclusive interview,

The pages of this edition are also graced with

Vanessa Macdonald sits down with the council's

insights from EY Malta's attractiveness survey,

chairman, Joseph Zammit Tabona, to reveal the

offering a comprehensive look at what makes

progress and impact of this strategic move.

Malta an attractive location for foreign direct investment, along with areas earmarked for

Shifting gears, Vanessa Macdonald investigates

improvement.

a remarkable societal shift over the past two decades. According to the National Statistics

In the ever-evolving post-crisis landscape, JP

Office, the number of employed women in Malta

Fabri parallels Darwin's principles, underscoring

has soared from just over 45,000 to almost

the urgency for Malta to diversify and fortify

124,000. This seismic change begs the question:

its economy. From sectors and resilience

What factors have fueled this unprecedented

to ecosystems, public sector reform, brand

increase, and how is it reverberating throughout

development, and educational enhancements,

the hierarchical structure of our workforce?

Fabri emphasises that adaptability is critical to Malta's economic survival.

Our cover story highlights Moneybase Business,

Jordan Portelli looks closer at the delicate

a game-changing solution revolutionising

balance between achieving desirable inflation

business financial management. Moneybase

levels and preventing economic shocks.

CEO Alan Cushieri provides exclusive insights

Despite global challenges, pockets of economic

into this cutting-edge platform, offering a

resilience offer hope amid uncertainty.

glimpse into its sparked economic revolution, from streamlined access to essential services

Finally, Ed Muscat Azzopardi explores the role of

to innovative investments and unparalleled

company leadership in shaping and nurturing

security.

a brand that resonates with employees and customers. Highlighting the vital contribution

In a world knit together by globalisation, local

to sustainable growth and brand equity, he

companies are increasingly reaching beyond

underscores the significance of leadership in

borders for expansion. Lyndsey Grima explores

the intricate dance of values, behaviour, and

the journeys of three dynamic leaders who have

customer experience.

successfully steered their Maltese businesses onto the international stage. Their stories serve

As you immerse yourself in the diverse

as beacons of inspiration for those navigating

narratives of this edition, we invite you to

the complex landscape of global business

contemplate the ever-changing landscape of

expansion.

business, finance, and the economy, where innovation, resilience, and adaptability reign supreme.

Turning our attention to the streets, Dayna Camilleri Clarke delves into the contentious issue of electric scooter rentals. Unveiling contrasting views from operators and residents,

E D I T O R Anthony P. Bernard

D E S I G N Be.Communications

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material submitted for consideration.

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ISSUE 78

MONEY

Pros in tech.

Leaders in solutions.

CONTENTS

14

26

36

When action speaks louder than words

Charting new horizons

EY Malta's 19th Malta Attractiveness Survey The findings from EY Malta’s attractiveness survey—the 19th edition of an annual study conducted among existing FDI companies in Malta—were launched today, with investors providing their views on what makes Malta an attractive location to invest in or the areas for improvement.

Over six months have passed since the Malta Financial Services Advisory Council launched its strategy. Vanessa Macdonald caught up with its chairman, Joseph Zammit Tabona, to see what has happened since then.

18 View through the glass ceiling According to the National Statistics Office, just over 45,000 women were employed two decades ago. This year, there were almost 124,000. Vanessa Macdonald tried to determine what led to the staggering increase and whether the results are being felt up the hierarchy.

22

COVER STORY

Moneybase Business revolutionises financial management for businesses

Lyndsey Grima dives deep into the journeys of three dynamic leaders who have successfully steered their Maltese businesses onto the international stage.

32

Malta 2.0

The rise and fall of e-scooters in Malta Dayna Camilleri Clarke examines the reasons behind banning electric scooter rentals, the missed potential for sustainable transportation and improved last-mile connectivity, and highlights contrasting views from operators and residents.

Ultimately, she questions Malta's stance on e-scooters and its potential to pioneer micro-mobility in the EU.

34 Pitch Black Competition shines at Malta Start-up Festival 2023

In this exclusive interview with MONEY, Moneybase CEO Alan Cushieri offers insights on this game-changing solution that explores the financial revolution that Moneybase Business has brought about.

40

The Malta Start-up Festival 2023 marked its third edition as a vital gathering for entrepreneurs, investors, and service providers in the island’s growing startup ecosystem. With the festival’s most notable attraction being the Pitch Black competition, Jessica Camilleri and Paul Grech shared their perspectives on its unique vocal pitch format.

JP Fabri explores the imperative of transformation in a post-crisis world.

Drawing parallels to Darwin’s principles, Fabri delves into sectors, resilience, ecosystems, public sector reform, brand development, and educational enhancements, emphasising that adaptability is critical to Malta’s economic survival.

42 Navigating Malta’s business landscape Paul Rostkowski unravels asset managers’ challenges, from navigating complex regulatory frameworks to grappling with limitations in banking services and depositary options and sheds light on the anticipated impact of AIFMD II.

CONTENTS

44 Sticky inflation Jordan Portelli analyses the delicate balance between achieving desirable inflation levels and preventing economic shocks. Despite these challenges, pockets of economic resilience exist globally, offering hope amid uncertainty.

48 EU regulatory riddles unveiled Entering the European market is often a daunting prospect due to the labyrinthine structure of EU directives and regulations.

Stephen Mallia delves deeper into each step of achieving compliance, providing a comprehensive roadmap for navigating EU regulatory frameworks.

52 Catalysing the AI Revolution Jake Aquilina looks into the challenges and opportunities and suggests rules for using AI in small and medium-sized businesses, giving them information that could help them have a successful digital future.

56 Is your most powerful asset in the wrong hands?

Dayna, a former newspaper editor and journalist, is a wordsmith extraordinaire.

With a knack for crafting impeccable marketing text and brand manifestos, she

Lyndsey is a freelance writer and social

effortlessly balances grammar and brand

media marketeer. When she’s not typing away,

voice. Throughout her varied career, Dayna

you will find her focusing on her training at

has shaped narratives and inspired both

the gym.

colleagues and clients alike to lead global brands.

Paul is the COO for a local Alternative Investment Fund Manager (AIFM) and

Ed was born in 1977 and is, to the

recognized Fund Administrator in Malta. An

disappointment of many, still not dead.

MBA educated professional, Paul has extensive

He tells stories for a living, engages in a host

experience in asset servicing operations,

of activities that don’t involve actual physical

both locally (Malta) and internationally

activity, and likes food, film, travel,

(Luxembourg) focusing on UCITS and

and cameras.

alternative investment fund operations and administration.

Jake is a journalist and an MA English graduate who is interested in the digital shift the world is going through.

Ed Muscat Azzopardi emphasises company leadership's crucial role in shaping and nurturing a brand that resonates with employees and customers, highlighting its vital contribution to sustainable growth and brand equity.

JP is a founding partner at Seed, a multi-disciplinary advisory practice.

Stephen is a freelance product regulatory compliance expert and mechanical engineer with over 13 years of experience in the field,

Jordan is an economist and CIO /

providing practical client-focused advice.

portfolio manager for a local financial services company.

Vanessa had every intention of retiring but so far has been caught up by exciting freelance projects and voluntary work.

GOVERNANCE

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GOVERNANCE

WHEN ACTION SPEAKS LOUDER THAN WORDS Over six months have passed since the Malta Financial Services Advisory Council launched its strategy. Vanessa Macdonald caught up with its chairman, Joseph Zammit Tabona, to see what has happened since then.

When the Malta Financial Services Advisory

complete all the action points that fall under

that would need to take each action. As a

Council launched its national strategy for

their remit, as it will otherwise be disjointed.”

strategy, it focuses on two core aspects: addressing the underlying foundations that

financial services at the end of March, many in the audience raised their eyebrows. It had

The long-term strategy, eventually unveiled

make for a solid and trusted jurisdiction while

identified 175 action points. How on earth

to the public this March, identified the main

concurrently seeking out areas of opportunity

could this be done? And, more importantly,

bottlenecks and opportunities and the entities

where Malta can build a sustainable competitive advantage. The idea is to get Malta

how long would it take?

into the top quartile rankings in key industry indicators.

Even at that early stage, there were many indicators that this was not an exercise destined to gather dust on some shelf. The Council, which the government set up in January 2021, is chaired by Joseph Zammit Tabona, whose long experience in business, diplomacy and government-run entities made him an inspired choice for the role.

He immediately embarked on a sectorwide consultation that involved over 100 professionals in the sector—not only the regulators but also private providers and government entities, among others.

“Because of my age, I have complete respect for the concept of time, and I want to see this materialise!” he smiled, commenting on why the approach had to be based on such a wide consultation.

We want to ensure that all aspects of these niche areas we’re creating are addressed – otherwise, the work is incomplete.

The MFSAC, at its meeting of 21st June 2023, set up a Program Management Office (PMO) to manage the process, run by Pier Massa, ably assisted by Dr Bernice Buttigieg of FinanceMalta. An overarching master plan covering some 600 action points has been developed to ensure no opportunities for change are missed or inadvertently discarded.

In addition, the Council has the full support of the four financial regulators, namely: Joseph Caruana, commissioner for Malta Tax and Customs Administration (MTCA); Kenneth Farrugia, CEO of the Malta Financial Services Authority (MFSA); Alfred Zammit as the director of the Financial Intelligence Analysis Unit (FIAU); and Dr Geraldine Spiteri Lucas as the CEO of the Malta Business Registry

“We needed to get everyone aligned behind the

(MBR). Each of them has aligned their internal

strategy, and we need to keep them aligned.

strategies with that of the MFSAC and has

Everyone must be engaged in this process to

their project masterplans with extensive →

MONEY

THE BUSINESS EDITION

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GOVERNANCE

changes that they are managing internally.

underway project, and the Companies Act’s

Beyond simply changes to legislation,

Moreover, Hon Clyde Caruana, Minister for

rewrite has also been initiated. In addition,

the process needs to consider how these

Finance & Employment and the Permanent

changes to Sustainable Finance and Real

niche areas would be developed, who

Secretary from the same Ministry has been

Estate Investment Trusts (REITs) are nearly

would be targeted, how the offers would be

actively engaged in the process – ensuring

completed and will positively impact capital

communicated and how the legislation itself

that the government allocates funds for the

markets. The recent Green Bond launch was

would be implemented and enforced.

required changes.

a solid and positive reinforcement that these

Since the launch, plenty of activity has

changes can have a material impact on the

“We want to ensure that all aspects of these

market.

niche areas we’re creating are addressed –

occurred, mainly outside the public eye. One

otherwise, the work is incomplete. So, for

of the primary objectives was to take the

Family Offices, for example, what quick wins

strategy from a high-level statement of intent

enable us to bring more business to Malta?

to an actual plan of action. Sorting through

Well, we have so many superyachts registered

and putting a structured implementation plan

in Malta, often owned by large family interests.

around the initiatives was a significant effort.

So, this is clearly an area that we should be

Given the vast scope of the strategy and

looking to expand. But there are many more –

the fact that it is long-term, the immediate

and the strategy will ensure that there is fertile

objective was to set clear priorities and

ground where these ideas can grow,” he said.

a commitment to the deliverables and Beyond that, the regulators themselves are

milestones.

undergoing significant changes to address Mr Zammit Tabona was enthusiastic about

issues around efficiency and eliminating

the last meeting on 29th September: “These

bureaucracy. The MFSA has tabled an

meetings are intense. At our June meeting,

extensive change agenda, whereas the

we had 19 presentations over 10 hours! We

MTCA is undergoing an overhaul of the tax

intended to identify which of the 175 action

administration process to make it more

plans can be completed within 18 months.

efficient and effective. Examples include

At the last meeting, we agreed on 25 priority

the launch of the MBR’s online platform

projects that, as a Council and the regulators,

this month, which directly addresses the

we intend to complete by 31st December

simplification and speed aspects highlighted

2024,” he confirmed.

in the strategy. While this was not a project developed due to the strategy, it is clearly

“That does not mean that the remaining

one that demonstrates the level of alignment

initiatives are excluded - just what we must

across the regulators with the strategy itself

focus on regarding legislation. The others

and the fact that they, too, are putting their

will continue at their own pace for the time

investments to support these objectives.

being and will be accelerated once the priority The Council keeps a respectful distance but

initiatives are completed.

monitors progress to maintain momentum and provides support and encouragement

“High on this agenda is the possibility of setting up a National Payment Hub, which Fabio Axisa is leading as chair of the Banking & Payments Working Group and myself.

This takes up much of my time, but it will likely happen. We are continually discussing directly with the big six local banks to agree on a way forward with this initiative. Both the government and the Central Bank of Malta are keen that the private sector take over this initiative.”

The target initiatives address significant changes in wealth management, the foundations to set up a strong Family Offices

Because of my age, I have complete respect for the concept of time, and I want to see this materialise!

throughout the process. There is also a clear warning: many of these changes rely on multiple stakeholders and, in the words of Mr Zammit Tabona: “The strategy was drafted by many of the professionals from the financial sector, and all need to do their bit to keep up the momentum. This is the sensitive part, and it’s easy to fall back to self-interest when changes are required that come close to home.

So, we have to keep everyone engaged.

“We all know this will be difficult – especially coordinating across many entities. Ultimately, however, I am convinced that if the profession

offering for Malta and the initiative to unlock

worked in unity, we could probably move faster

opportunities in aircraft leasing and fintech.

and that there should be sufficient work for all

Centralised Identity Management is a well-

to gain from the strategy’s success.”

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WOMEN IN BUSINESS

VIEW THROUGH

THE GLASS CEILING According to the National Statistics Office, just over 45,000 women were employed two decades ago. This year, there were almost 124,000. Vanessa Macdonald tried to determine what led to the staggering increase and whether the results are being felt up the hierarchy.

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WOMEN IN BUSINESS

There are more women at the helm of Maltese companies than ever before. Why, you may ask? The answer is very simple: they are good at it.

Mariella Camilleri, the BPW (Valletta) Malta president, was clear about what contributed to the increase. “Success! I think that especially in family-owned businesses, more female siblings are taking up senior management roles and are quite successful at it.”

She explained that over the last decade, some reached the top role from within due to internal promotion. Still, others got there by opening their businesses, which are increasingly achieving success through innovation and sustainable growth.

“We are seeing that publicly traded companies led by women are at times much more successful than entities in the same sector that men lead. These successes pave the way for women to be chosen as leaders in other companies, where previously the preferred candidate was or was nearly always male,” she said.

Katrina Cushieri, the policy consultant at the Ministry for the Environment, Energy and Enterprise, who carefully monitors ESG factors, welcomed the trend.

“I think over the past decade, we have normalised having females in the workforce, but also females in management. I don’t believe that ten Katrina Cuschieri

years ago, I would have been able to enter a boardroom or a workplace and find a substantial number of women in the room.

“However, there are still several improvements that we need to make.

According to our ESG data, the trend is clear: while a substantial number of women are in the workforce—some even pass the 50% mark—the number of females in management is lacking. This shows that while the concept of having women in the workforce has been well received, there is still some type of artificial barrier as to why these women don’t make it to management level or even board level at times,” she explained.

On average, 43% of companies’ workforce is comprised of women, but the average number of females in management dwindles to 38% and further dwindles to 29% for females at the board level.

Not all is doom and gloom, however. As the Ministry found, the quoted companies have made significant improvements within one year: a 7% increase in women in the workforce, a 6% increase in women in management, and a 5% increase at the board level.

Cushieri attributes several factors to this improvement in female participation and representation, not the least of which was COVID-19, which made flexible hours much more ingrained in the workplace and accepted without negative consequences. There were also policy changes over the past decades, such as parental and flexible maternal leave and the introduction of childcare centres.

“I would say it’s been a mentality change because, in the past ten Mariella Camilleri

years, most women don’t just stay at home while their husbands go to work but have a career themselves,” she said. →

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WOMEN IN BUSINESS

Giselle Borg Olivier, a former JCI president and JAYE mentor who is passionate about entrepreneurship, delved even further into the point about flexible working conditions, noting that although mothers are still seen as the default primary parent, flexibility is essential for both to contribute to parenting equity.

Borg Olivier is also optimistic about the future and believes that the only way is up: “By empowering women to take on decision-making roles and leadership positions, this should lead to C-suite positions too. There have been, and are, women at the C-suite level who have consistently delivered and have contributed to their company’s growth. There should definitely be more women on boards taking those important decisions!”

Another positive trend is the reduction in the gender pay gap, which unfortunately remains very prevalent in several companies.

“You would think that this culture is practically non-existent in Malta, but it’s quite prominent, according to our 2021 data. However, this is improving bit by bit—in fact, in just one year, it improved by over 2%,” Cuschieri said.

How can we improve that number even further? Cuschieri believes it is essential to understand why more women are getting a university education without this result being reflected in the workplace.

“I think it’s more of a mentality change we see than anything else— women can’t do more than they’re already doing. We have so many successful women out there who have full-time jobs, take care of their Giselle Borg Olivier

children, and are excellent multi-taskers. It’s a mentality change that is being pushed and directed towards a greater good, and I would say the figures show this mentality changing to an extent.

“For example, we launched the first Green Bond on the market. As part of the Green Bond Framework, one requirement is that the board of directors had to be split equally according to gender. This meant that 50% had to be female. Pushing these green bonds (not just by women) can lead to more well-deserved and competent women at the board level!”

What will push the boundaries even further? Borg Olivier pointed out the positive impact of leading by example: “At present, the younger generation recognise that leadership is not aligned to gender, and they actively see women being elected or promoted to senior roles.

Representation is very important for people to believe that they too can achieve that role.

“The traditional household roles of the man being the breadwinner and the woman being the homemaker are largely obsolete nowadays (within our society), and younger people are being raised in a more co-ed community where both boys and girls are being given equal opportunities to develop on a personal and professional level. This Leonie Baldacchino

allows them to explore different areas of interest without being forced into a gender structure.

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WOMEN IN BUSINESS

Chart 1 — Employment by age group and sex

Source: National Statistics Office, Labour Force Survey Q2/2023

Employed persons / Age group

Female

Male

50,000

40,000

30,000

20,000

10,000

0 15 - 24

25 - 34

35 - 44

45 - 54

55 +

“Representation is definitely a contributing factor. When the Lionesses

example, as part of a worldwide initiative, the US Embassy in Malta

won the UEFA Women’s Championship, there was a huge increase in

launched the Academy for Women Entrepreneurs to help train those

female football viewership and girls signing up for the sport. Seeing

starting their journey. The academy provides a training programme led

females succeed is empowering, especially in an area considered male

by The Malta Chamber, in which two people with the best idea pitches

territory (such as football).”

receive seed money.

Mariella Camilleri explained that, first and foremost, women need to be

It has a proven track record, operating in over 100 countries worldwide.

more assertive and take on the opportunities presented.

A 2021 evaluation of the program showed that 74% of women who complete the AWE program increase their business earnings, and 29% hire more staff.

“Women act very differently when presented with growth opportunities. Unlike most men, we think longer before applying for a position. We think thoroughly about whether we can fulfil the role; we

Women in business also have more associations than ever to provide

think longer about whether we have time for the job. We think longer

networking – such as BPW (Valletta) – and in 2018, HSBC Bank

about whether we can keep doing all the other things we need to do

launched the “Malta Businesswoman of the Year Awards” to help

while doing this new job,” she said.

promote and recognise the excellence of women who have achieved significant success in business.

“Women also tend to hold back when it comes to preparing information and making presentations to potential investors/financiers,” she

The final point should come from Prof. Leonie Baldacchino of the

added, noting that it was essential to be well-prepared and confident.

Edward de Bono Institute for Creative Thinking and Innovation.

During a recent interview with fellow academic Danielle Farrugia, she

When it comes to becoming an entrepreneur, her advice was the

pointed out that the key to success was creativity – whether it was the

same advice she would give to anyone contemplating a new venture,

traditional view of entrepreneurship as opening your own business or in

whether male or female: “We must accept that we do not know it all!

the greater sense of branching out into something new.

Entrepreneurs should recognise where they excel and where they need “What is needed is creativity and 21st century skills… The world is

to bring expertise from other fields.”

changing so fast, and we must be able to change and adapt…”

Camilleri’s advice: surround yourself with a support team, “whether it is a family member who offers to assist, whether taking on the

Unfortunately, creativity is seen as something that people are born

opportunities for support in our day-to-day lives or asking our partners

with as an innate talent, but the institute is working hard to promote

to contribute more to allow us to grow professionally.

the idea that these skills can be learned. A recently published academic paper – by Prof. Baldacchino and others – found a strong correlation

“Last but not least, we need to support each other. Women in higher

between studying science, technology, engineering and maths and

positions should be willing to mentor other women in reaching these

adopting creative thinking approaches.

roles while giving opportunities to bring other capable women into the Women have more support than ever before, and the increasing

Executive or C Suite level, who can provide equity in the mix.”

representation feeding up along all levels of business is certainly cause Some of this support is already being seen at a systemic level. For

MONEY

for celebration.

THE BUSINESS EDITION

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COVER STORY

MONEYBASE BUSINESS REVOLUTIONISES FINANCIAL MANAGEMENT FOR BUSINESSES In this exclusive interview with MONEY, Moneybase CEO Alan Cushieri offers insights on this gamechanging solution that explores the financial revolution that Moneybase Business has brought about.

Discover how this cutting-edge platform simplifies business financial management, providing swift access to essential services, innovative investments, and unparalleled security.

Moneybase, a leading name in payments

latest embodiment of that commitment,” said

financial services industry way back in 1971.

and financial services, proudly announced

Alan Cushieri, CEO at Moneybase.

We support our clients across four branches, and we offer ISO-certified customer support

the official launch of Moneybase Business at the Finance Malta 2023 event. Moneybase

What sets Moneybase apart from other

Business is a powerful, fast, and cost-

platforms for business in the industry?

effective solution designed to streamline

Moneybase is genuinely revolutionary in

We are genuinely proud to be able to help

financial management for both local and

several ways. First, Moneybase Business

businesses manage their money easily

international businesses.

solves the long-standing issue for many

and allow them to focus on growing their

local businesses that find it hard, expensive

business.

seven days a week.

Using the same award-winning technology

and very time-consuming to open and run a

that has made Moneybase a household name,

business account and who want support from

A core function of Moneybase is the ability

Moneybase Business combines cutting-edge

a locally regulated and established firm that

for businesses to send and receive payments

innovation with expert insights to address

has real substance in Malta.

seamlessly. An advantage that Moneybase brings in this respect is that businesses can

the complex challenges business owners face We promise to open an account within just

create multiple wallets with different IBANs

48 hours of a complete application being

to suit their needs; for example, they can

“At Moneybase, we believe managing finances

submitted, and our fees start at just €9.99 a

set up a proprietary wallet, a payroll wallet

should be simple and accessible for everyone.

month. Moneybase is licenced and regulated

and a supplier wallet and assign additional

Our mission is continually improving our

by the MFSA and is part of the Calamata

permissions to staff as required. Payment

offerings, and Moneybase Business is the

Cuschieri Group, which pioneered the local

approval flows can also be set for each wallet.

when managing their finances.

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COVER STORY

Another key advantage is that Moneybase

or cold, which many businesses experience

Moneybase Business is available across the

provides business owners, CFOs and finance

with legacy banks today. Moneybase is here to

EU, with a particular focus on helping Maltese

managers with a convenient way to optimise

provide a friendly, efficient, and cost-effective

businesses. We cater for an extensive range of

their company’s cash positions by using

experience to our business customers so that

sectors, from shipping and aviation to the local

Treasury bills to earn interest. Of course, they

they can focus on growing and scaling their

boutique, toyshop, or freelancer. Our mission

can also access the international bond market

businesses.

is to be as inclusive as possible, and therefore, our coverage of sectors is already extensive.

or new local IPOs on the Malta Stock Exchange, as well as 40 global markets across bonds,

What types of businesses and industries does

equity, ETFs, and funds.

Moneybase primarily cater to, and are there

In the realm of financial technology, what

plans to expand into new sectors?

trends or innovations do you see shaping

Moneybase is available on both mobile and

the future of business transactions and

desktop and is unique in its proposition of

payments? How does Moneybase adapt to

offering businesses extensive payment capabilities combined with a wide range of investment options.

How does Moneybase support the growth and scalability of businesses within the B2B ecosystem?

Our mission is for our customer experience to be second to none, not only from a technological perspective but also from a

Security and data privacy are areas where we leave no stone unturned.

these changes?

Business leaders today are expecting the same convenience they have become accustomed to on their personal accounts; this means providing complete control and customisation in an easy-to-use platform.

This is precisely what we have worked on and will continue to work on.

In the coming months, we will be launching

customer journey perspective. Managing

more innovative functionality; I encourage all

business finances should not be complicated

businesses to open an account and to get →

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23

COVER STORY

Moneybase Business is available across the EU, with a particular focus on helping Maltese businesses. involved in our community so that together, we can continue to shape the future of managing business finances today.

Security and data privacy are paramount in any transaction. How does Moneybase •

Dedicated Support: Moneybase offers

ensure the security of sensitive financial data

Bonds, Funds, ETFs, and Treasury bills

for its clients?

across 40 exchanges.

24/7 support from an ISO-certified human

Multi-Currency Capabilities: Customers

customer service team through phone

undergoes regular rigorous security testing

benefit from multi-currency accounts,

or live chat, ensuring customers have

and is PCI compliant. This is an area which we

seamless bank transfers, direct access to

assistance when needed.

dedicate continuous attention to and which

the live currency market and competitive

always takes priority over anything else.

currency rates without unnecessary

“With Moneybase Business, managing

Security and data privacy are areas where we

charges.

your business finances has never been

Customised Financial Control: Moneybase

simpler,” added Alan. For more information

Business allows users to create multiple

on Moneybase Business and to apply for an

Moneybase Business offers a user-friendly

wallets with varying access levels, enabling

account, visit www.moneybase.com.

mobile and web platform that allows

tailored financial management for different

Security is our highest priority; our platform

leave no stone unturned.

•

•

stakeholders.

businesses to consolidate all their financial activities, including investments and

•

approval flows to enhance financial control.

Key features and benefits include: • •

platform.

open a account within 48 hours, ensuring •

Earn Interest on Treasury Bills: Invest and earn interest on treasury bills through the

Efficient Account Setup: Businesses can swift access to essential financial services.

Global Payment Capability: Easily make international payments and establish

payments, into a single, streamlined solution.

•

Real-Time Reporting: Comprehensive

Access to Investments: Moneybase

income statements and other real-time

provides direct access to a wide range of

reporting tools help businesses save time,

financial instruments, including Stocks,

allowing them to focus on core operations.

Moneybase is a multi-award-winning finance platform known for its commitment to simplifying financial management. With a reputation for innovation and a dedication to customer satisfaction, Moneybase offers a range of solutions designed to empower individuals and businesses to achieve their financial goals, from daily card and bank payments to global investments across 40 markets. Moneybase is part of Calamatta Cuschieri Finance Group, founded in 1971, which pioneered the local financial services industry and manages and administers over 2.3 billion in assets. Moneybase is home to a team of seasoned professionals with decades of experience across multiple disciplines within the financial world. Moneybase is trusted by over 40,000 customers and process millions of transactions annually.

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ISSUE 78

MONEY

INVESTING TOGETHER

Great investment opportunities for a sweeter future. Act now, choose wisely.

t s e Inv .

y a d to

Visit your nearest branch for more information.

SCAN HERE

The value of investments may go down as well as up and may be affected by changes in currency exchange rates. Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, Il-Belt Valletta VLT 1130. Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and licensed to carry out the business of investment in terms of the Investment Services Act (Cap. 370 of the Laws of Malta).

BUSINESS

CHARTING NEW HORIZONS Local Companies Making Their Mark Worldwide

In an era of rapid globalisation and interconnected economies, local companies increasingly look beyond their home turf for expansion opportunities. Lyndsey Grima dives deep into the journeys of three dynamic leaders who have successfully steered their Maltese businesses onto the international stage.

Meet Marco Santini, the co-founder and chief marketing officer of Eeetwell, Simon Debono, chief marketing officer of eCabs, and Steve Mercieca, co-founder and CEO of Quicklets and Zanzi Homes, as they share their insights, experiences, and strategies for taking their companies global. These individuals represent a diverse range of industries, and their stories provide a compelling glimpse into the challenges and triumphs of local businesses as they navigate the complexities of international expansion.

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BUSINESS

In which countries or regions have you extended your

be essential players in shaping the ride-hailing landscape

international presence, or where do you intend to expand

in their respective jurisdictions, providing seamless online

internationally?

solutions for riders and safe and flexible work for drivers.

Marco Santini: We started our journey in Malta but were

Steve Mercieca: Our dream was always to expand and

always dreamers. Now, we’re in hotspots like Antwerp,

breathe our culture, vision and purpose all over the globe.

London, Dubai, Avignon, Turin, Wijnegem and Hasselt. We’ve

We started first with Cyprus, just before the pandemic

spread our wings to six countries with 27 stores in recent

hit, which made it much more complicated than we

years. Our mission is strong, and we’re not stopping here.

thought. Today, the branch is finally beginning to thrive,

There’s a whole world out there we want to reach with our

and the team there is happy and reaping the values of our

hearty bowls and fresh juices. Within the next few months,

operation.

we will be opening in Libya and Milan, and we plan to hit the We have now spread from Limassol to Barcelona, Madrid,

US in early 2024.

Valencia, Malaga, Alicante, and Lisbon. We always launch different products, mainly tech-based, but remain in the real estate field.

What is driving your decision to explore international markets?

MS: We’re on a mission to change how people think about food, and we believe this conversation is global. Venturing into international markets isn’t just about spreading our Simon Debono: The partnership model which eCabs

wings; it’s about sharing our passion for fresh, wholesome

Technologies has developed means that rather than

food and showing how it can be a force of change and good.

extend the eCabs brand beyond Malta’s shores, it is instead

Every new place we go, we find more people who share our

working with partners to launch new distinct brands in

enthusiasm for a healthier, more conscious way of eating,

new jurisdictions. Two new ride-hailing brands have been

and it’s this shared vision that drives us to explore beyond

successfully deployed beyond Malta, utilising eCabs

our home turf.

Technologies’ ride-hailing technology as their backbone, SD: 14 years ago, eCabs was born from the belief that

with other jurisdictions also in the pipeline.

the transport industry needed a thorough shake-up. The

MONEY

In September, the Greek taxi company Intelligent Mobility

company set out to challenge the status quo from its

App S.A. launched the taxi.gr ride-hailing app in Athens.

inception - providing a more professional, reliable, and

Meanwhile, Autonom Drive, the largest mobility operator in

consumer-friendly mobility service. We then began a digital

the Romanian market, has selected eCabs Technologies to

transformation - transitioning from a traditional dial-a-cab

help launch Blue, a new ride-hailing service in Bucharest,

operation to an app-based ride-hailing solution, building its

Romania. Both taxi.gr and Blue are fully equipped and set to

technology from scratch. →

THE BUSINESS EDITION

27

BUSINESS

After years of perfecting our product at home, eCabs announced this year that it is leaving the sandbox and taking the eCabs Technologies’ platform to several major cities in Europe and beyond. We remain driven by the same desire - to be an essential player in the international ridehailing scene today and beyond.

SM: The urge to learn more about different cultures and industries. I also feel that Malta is sometimes too small for our ambitions in the real estate world.

What is your competitive advantage in the target market?

MS: Our canvas is the community, and every meal we serve is a brushstroke contributing to a larger picture. This artistic approach and our commitment to sustainability and transparency create a unique space for Eeetwell. It’s less about competition and more about offering a fresh perspective on the global food scene.

SD: The eCabs Technologies offering is not just an offthe-shelf product - it is a blend of invaluable industry operational expertise and a robust technology stack already successfully competing with the world’s largest

Apart from that, eCabs’ technology is continuously

brands. What distinguishes eCabs from competing

improved by a team of product owners, developers and

white-label technology operators is its 14 years of 24/7

engineers, in direct daily contact with our central tenant

operational, marketing, and business acumen, which is part

in Malta as it crosses its sword in this highly competitive

of a product offering that delivers more than just robust

market featuring Bolt and, more recently, Uber.

technology.

SM: Tech, tech, tech...top people and a clear and focused vision that is hard to come by nowadays!

How will you adapt your product or service to meet the specific needs of the target market?

MS: Every place is unique with its own food love story, and we get that. That’s why we give a local twist, which totals up to 40% of our menu, in every new place we expand.

We create unique items that vibe with the local taste and consider what’s fresh in that country or city. True to our local sourcing values, we adapt the 40% based on what Mother Nature offers us in that market. It’s about being a part of the community, not just present.

SD: eCabs Technologies’ platform is, by and large, a complete platform. However, different markets may have additional requirements, and the eCabs Technology team can adapt to these needs. Any new developments implemented for one market are also available for all other markets we deploy, further enriching the platform. One example is taximeter pricing, which was developed for the first tenant in Greece but is now available for any new country that may require this feature.

SM: This has been our biggest struggle. Besides the obvious language barriers, there are licensing and cultural issues; of course, our EU counterpart markets are

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BUSINESS

MS: Our values are rooted within everything we do, from sourcing local produce to engaging with our community.

The brand experience remains the same across all our markets. It’s all about partnering with like-minded people across the globe who share our vision and passion for food and community. We firmly believe that when the ‘why’ is clear, the ‘how’ naturally follows.

The uniformity in our offerings comes from a blend of standardised recipes, rigorous quality control, and a sprinkle of local flavour. Our product development team collaborates closely with the local operations’ chief executives, ensuring that every dish we serve and how

Houzit team, Barcelona

Houzit office, Portugal

incredibly mature. We don’t seem to realise most of the EU has been thriving since the Romans. Malta only began to flourish after our independence, and even then, we still had never dealt with the problems that our EU counterparts have been facing for a long time, such as overpopulation.

To overcome this, we studied markets well, recruited top talent and adapted our technology to have a competitive edge.

What are the potential pitfalls or risks you anticipate?

MS: It’s not always a smooth sail, especially when navigating different rules and cultures. We’re all about

Quicklets in Limassol, Cyprus

learning and growing from those bumps on the road, making our story richer and our bowls tastier. we serve it resonates with our standards and values.

SD: In the face of population growth and global warming,

This collaborative approach helps us navigate the

the transport sector faces ever-increasing challenges.

diverse culinary landscapes while keeping the essence of

Likewise, the gig economy, which ride-hailing often forms

Eeetwell intact, offering a familiar warmth and quality in

part of, has triggered debate and varying reactions across

every corner of the world we touch.

the globe.

SD: The partnership model which eCabs Technologies

MONEY

SM: Legislation change is constantly pulling our tale, but

has developed means that rather than extend the eCabs

the value of estate agents will stay for another 40 years.

brand beyond Malta’s shores, it is instead working

Generations must be outgrown before tech takes you from

with partners to launch new distinct brands in new

A to Z in every transaction.

jurisdictions.

How will you maintain consistency in your company’s

SM: Many visits to all the cities, weekly meetings, reviews,

values, culture, and quality standards across

ratings, surveys, coaching available to the team and

international locations?

always having a finger on the pulse!

THE BUSINESS EDITION

29

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ISSUE 31

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Winter edition out in December Read on bemags.com

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PROMO

EMPOWERING ENTREPRENEURS MONEY speaks with Giselle Borg Olivier, the foundation manager of FPEI and Zaar Crowdfunding Malta, about FPEI Enterprise, Malta’s new go-to service directory for start-ups, businesses, and entrepreneurs.

Can you start by telling us more about FPEI

information, services, resources, logo, and

Enterprise and its mission?

contact details. You can also enhance your

FPEI Enterprise is Malta’s leading service

knowledge and skills through discounted

directory designed to assist start-ups,

or complimentary access to expert-led

businesses, and entrepreneurs in their journey

workshops and training sessions. Our

to success. Our mission is to bridge the gap

mentorship programs and blog also provide

many entrepreneurs and organisations face

opportunities to share experiences and

when seeking the service providers they need

expertise.

to support their businesses.

It sounds like an all-encompassing support Navigating the start-up landscape can

system for entrepreneurs. What about

be challenging. How does FPEI Enterprise

industry-specific insights?

address this issue?

Staying ahead of industry trends and insights

Whether you’re a seasoned entrepreneur or

is crucial in today’s fast-paced business

just starting, building a network of trusted

landscape. FPEI Enterprise provides its

contacts takes time. In the interim, you still

members with industry-specific knowledge,

need professional assistance in various

trends, and market insights through

areas like legal, financial, co-working spaces,

newsletters to keep them well-informed about

education, recruitment, and digital services.

their sectors.

can apply online, and the annual membership fee is just €175 (excluding VAT), renewable

FPEI Enterprise acts as the connective tissue, helping entrepreneurs quickly and confidently

You mentioned sponsorship and funding

every 365 days, making it easy and affordable

find the right service providers while allowing

opportunities. Can you elaborate on how

to become a part of our community.

businesses and service providers in Malta to

FPEI Enterprise facilitates these?

connect with entrepreneurs.

We have a unique initiative called Zaar,

Finally, Giselle, what is the vision of FPEI

Malta’s only reward- and donation-based

Enterprise for the entrepreneurial and

Please tell us more about the FPEI

crowdfunding platform. It’s the go-to resource

start-up industry in Malta?

Enterprise Membership Club and its

for assistance in crowdfunding. Through

We firmly believe in the growth potential of

benefits.

FPEI Enterprise, you can support your

the entrepreneurial and start-up industries in

The FPEI Enterprise Membership Club is our

organisation’s Corporate Social Responsibility

Malta. We aim to empower founders, pioneers,

latest initiative, and it serves as a vital bridge

(CSR) efforts through our ‘Matchfund’

entrepreneurs, and innovators like you to

between entrepreneurs, businesses, entities,

feature, which allows companies to match the

take their next steps towards entrepreneurial

and collaborators. We’ve created a range of

amount raised by a voluntary organisation

success. FPEI Enterprise provides the

valuable benefits for members to address their

through crowdfunding, fostering meaningful

resources and support to turn those visions

needs.

relationships.

into reality. For those interested in joining the

As a member, you can fast-track your network-

Joining FPEI Enterprise sounds promising.

building through our networking activities, and

Can you tell us about the membership

each listing in the FPEI Enterprise Membership

process and cost?

I look forward to welcoming new members to

Directory provides space for your company

Joining FPEI Enterprise is straightforward. You

our community.

FPEI Enterprise Membership Directory, visit

MONEY

THE BUSINESS EDITION

https://fpei.mt/membership/.

31

MOBILIT Y

THE RISE AND FALL OF E-SCOOTERS IN MALTA A missed opportunity

Dayna Camilleri Clarke examines the reasons behind banning electric scooter rentals, the missed potential for sustainable transportation and improved last-mile connectivity, and highlights contrasting views from operators and residents. Ultimately, she questions Malta's stance on e-scooters and its potential to pioneer micro-mobility in the EU.

E-scooters, the compact and convenient

Sustainable Transportation

Reducing Traffic Congestion

electric-powered two-wheelers, took the world

One of the primary reasons rental e-scooters

Malta’s roads are often clogged with cars,

by storm as a new mode of transportation in

made sense in Malta was their potential to

especially in densely populated areas like

urban areas. Malta was no exception to this

promote sustainable transportation. With

Valletta, Sliema, and St. Julian’s. E-scooters

trend. The introduction of e-scooters in Malta

its small size and limited parking space,

offer a solution to this problem by providing a

was met with great enthusiasm, offering a

Malta faced growing traffic congestion

convenient means of transportation for short

breath of fresh air on an island accustomed

and air pollution, a story we know all too

trips. Commuters and tourists could easily hop

to traditional modes of transport and in the

well. E-scooters provided an eco-friendly

on e-scooters, reducing the number of cars

face of extreme traffic. However, the recent

alternative that could help reduce greenhouse

on the road during peak hours and making the

announcement of a ban on rental e-scooters

gas emissions and alleviate the pressure on

traffic flow smoother.

in Malta is cause for concern, as it represents

the island’s infrastructure. By introducing

a missed opportunity for the island to embrace

several fleets of electric scooters, Malta took a

Boosting Tourism

modern mobility solutions.

step towards a greener and more sustainable

Tourism is a vital part of Malta’s economy,

future.

and rental e-scooters present a unique

Now, let’s take a closer look at why rental

opportunity to enhance the experience of

e-scooters were a good idea for Malta, and just

tourists. Visitors could explore the beautiful

to set the record straight, private e-scooters

island at their own pace, discovering hidden

will still be allowed, with incentives introduced

gems and scenic spots. E-scooters were a

to encourage people to buy their own. “This

fun and efficient way for tourists to navigate

initiative aims to promote responsible e-kick

the narrow streets and enjoy Malta’s stunning

scooter usage and reduce inconvenience

views, contributing to a positive tourism

for communities and people,” the Ministry

experience and increasing revenue.

of Transport said in an official statement.

Some may already argue that using the word

Last-Mile Connectivity

“inconvenience” doesn’t bear much hope for

E-scooters were a perfect solution for the

future things.

“last mile” problem, helping commuters bridge

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MOBILIT Y

the gap between public transportation and their final destination. This convenience encouraged more people to use buses or ferries, knowing they could easily continue their journey with an e-scooter. It also made it easier for residents to work, shop, or attend events without owning a car, reducing the island’s overall carbon footprint.

E-Scooter Regulations Despite the many advantages of e-scooters in Malta, the recent ban points to the need for stricter regulations and better enforcement.

Bolt parking bays abroad

For a while, the government has expressed dissatisfaction with rental e-scooter companies like Bolt and Bird, citing concerns

e-scooter parking can be attributed to the

Bolt said it had yet to receive a response from

that riders frequently endanger bystanders

government’s failure to provide necessary

the transport minister’s team for their meeting

and obstruct walkways with their parking.

infrastructure, such as designated parking

request. Similarly, Seven Group, the company

Safety concerns, including reckless riding and

bays.

that operates Bird scooters, said: “The operators are looking to meet the minister in

accidents, were cited as reasons for the ban.

To address these issues, Malta could have

person to understand the reasons behind this

Just a few weeks ago, the Home Affairs

implemented mandatory helmet use, lower

extreme decision.”

Minister, Byron Camilleri, informed parliament

speed limits, designated parking zones,

that 10,943 fines had been handed out to

and more thorough education for e-scooter

What next?

e-scooter riders by the police and the Land

riders from the get-go. Did we move too far

The introduction of e-scooters in Malta was

Transport Authority.

forward with any lack of insight here? Where

indeed a good idea, as they offered a range of

was the long-term vision? How can we expect

benefits that could have improved the island’s

While the news of the upcoming ban may

e-scooter companies to park properly if no

transportation and environment. However,

disappoint e-scooter operators and users,

such designated hubs are designed?

the recent ban on e-scooters is a setback for Malta’s potential to embrace modern

who have seen their service become one of the few thriving transportation options in the

The Operators

mobility solutions. Instead of an outright

country, it is likely to be met with approval

Bolt has ruled out legal action against the

ban, the government should have worked to

from residents and pedestrians who have been

government over its decision to ban rental

create sensible regulations to address safety

dealing with the problem of poorly parked

e-scooters in Malta from March. Instead,

concerns while preserving the convenience

scooters.

Bolt and its main competitor, the operator of

and environmental benefits of e-scooters.

Bird scooters, are seeking to meet transport Sliema Mayor John Pillow warmly embraced

minister Aaron Farrugia and find a “balanced

Malta needs to reassess its stance on

the announcement, noting that he had already

solution” (as of October 26). “Court is not

e-scooters and consider a more balanced

begun receiving messages from delighted

the answer to the problem; building parking

approach that allows these electric wonders

residents expressing their happiness with the

infrastructure across Malta, working together

to flourish once again, transforming the way

news.

with authorities, and implementing a new

people move around the beautiful Maltese

parking regulation is the solution to this

archipelago.

He emphasised that the core issue lay in how

problem,” a Bolt spokesperson told the Times

e-scooters were initially introduced, with a

of Malta.

After all, how can it be that one of the EU’s tiniest nations is the first to outlaw rental

glaring absence of rules and regulations from the very start. He clarified that he wasn’t

“As an international company operating in

e-scooters? This contradicts the very

against e-scooters, as he used them, but he

more than 250 cities and 25 countries, we have

essence of promoting micro-mobility

stressed that responsible usage could only be

been collaborating with cities everywhere,

and conveys an unfortunate message.

ensured if individuals owned their e-scooters

and we believe that only by working together

Malta should be a pioneer in the field of

rather than renting them. He stated, “The real

can we find a more balanced solution,” the

micromobility, leveraging the unique

problem was the misuse of e-scooters.”

spokesperson told the Times.

advantage of our compact size. We often

On the other hand, operators argue that

“We are also looking forward to meeting

kilometres in length, with the national average

e-scooters represent one of the few

the minister in person to understand the

daily travel distance hovering around 5

successful alternative transportation

reasons behind this extreme decision, which,

kilometres. Nonetheless, we continue to invest

solutions in a country heavily reliant on cars.

unfortunately, has only been shared with us

in oversized intersections and overly extensive

They contend that the problem of haphazard

through the media.”

roads to accommodate more cars.

overlook the fact that Malta is just 27

MONEY

THE BUSINESS EDITION

33

S TA R T- U P S

PITCH BLACK COMPETITION SHINES AT MALTA START-UP FESTIVAL 2023 The Malta Start-up Festival 2023 marked its third edition as a vital gathering for entrepreneurs, investors, and service providers in the island’s growing start-up ecosystem. With the festival’s most notable attraction being the Pitch Black competition, Jessica Camilleri and Paul Grech shared their perspectives on its unique vocal pitch format. Beyond Pitch Black, they discussed the festival’s growth and practical concerns, highlighting its role in fostering innovation and meaningful connections for start-ups and investors.

The third edition of the Malta Start-up Festival cemented the event’s

either. But to my surprise, all ten finalists slayed their pitch,” Camilleri

status as the most critical gathering of entrepreneurs, investors, and

exclaims. This unconventional format challenges participants to truly

service providers in the island’s nascent start-up ecosystem. That

master the art of pitching and communicate their ideas with confidence.

reputation is supported by the physical growth of a festival that has

“I also liked that the judges were among the audience, but not so much

rapidly outgrown previous hosting venues, with the most recent edition

the preplanned questions and how the questions were being posed to

being held at the MFCC. The event’s undoubted highlight was Pitch-Black, which featured ten competing founders looking to win over the judges in a novel setup.

“I was super curious about the Pitch Black competition,” Jessica Camilleri, head of business advisory at Bajada Lyons Group, notes, sharing her initial doubts about this distinctive event. The competition places participants in an unusual scenario where they must present their start-up ideas based solely on their vocal pitch without the aid of traditional pitch decks or presentation screens. However, her scepticism quickly transformed into admiration as she witnessed all ten finalists deliver compelling pitches.

“I was sceptical at first, given that the competition is based on your vocal pitch with no assistance from a pitch deck and no comfort screens

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Having the ability to succinctly convey their ideas is an invaluable skill that will greatly aid start-ups on their entrepreneurial journey.

— Jessica Camilleri MONEY

S TA R T- U P S

direct the answer,” Camilleri remarks about the Q&A session following the pitches. While the idea of judges mingling with the audience adds a unique element to the competition, the preplanned questions raised concerns about their potential to influence the answers.

Paul Grech, head of investments at GO Ventures, echoes her thoughts.

“Pitch Black was hyped up by the organisers before the end, but ultimately it delivered. It energised the big audience that came to listen to the pitches and created a lot of buzz. I’m not sure I would follow up on a start-up purely based on what I saw at Pitch Black, but it was great entertainment.”

“I spoke to a couple of participants afterwards, and they seem to have enjoyed the experience. All had been worried about the absence of any backing slides, but being forced to do without them made them focus more on what they’re trying to achieve.” so on, was poor.” Navigating the festival was not as straightforward as “Having the ability to succinctly convey their ideas is an invaluable

she had hoped, and she had to rely on asking for directions.

skill that will greatly aid start-ups on their entrepreneurial journey.

Regrettably, many start-ups become so engrossed in their pursuits

Furthermore, she highlights the intricacies of scheduling and managing

that they often overlook the importance of effectively communicating

her time at the festival. “The DealRoom app is great for keeping track of

their concepts to external parties. Nonetheless, if you aspire to attract

what’s happening on the main stage against your pre-booked meeting

investors to your venture, you must be capable of articulating your

at the DealRoom,” Jessica shares. However, integrating workshops into

thoughts in a straightforward and understandable manner.”

the schedule could have been more seamless. This created challenges for attendees to balance their agendas and take advantage of valuable

Beyond Pitch Black, Grech praised the Malta Start-up Festival,

content.

highlighting the organisers’ ability to listen to and address feedback from previous years. “Whilst last year’s setting at Villa Bighi was quite

“I wanted to listen in to at least one workshop a day; however, my

scenic, it all felt a bit cramped, particularly when students were among

slots at the DealRoom took over my agenda completely,” she reveals,

the attendees.”

shedding light on the scheduling complexities.

“The move into the venue was welcome, extending some hosting areas

Ultimately, the idea of potential investors struggling for free slots

to outside venues. What was lacking this year was proper signage, which

is a nice problem to have. Indeed, despite the logistical challenges,

made it hard to appreciate all that was going on. I was also surprised

Camilleri highlighted the tremendous networking opportunities the

to hear that workshops were happening because I had not seen any

festival offered. “Our team of 3 individuals managed to have 52 separate

promotion.”

meetings,” she mentions. The festival became a fertile ground for forging connections and exploring potential collaborations.

Camilleri also points out these practical concerns during the festival: “Signage for the various rooms, be it the DealRoom, workshop area, and

“Let’s say 16 to 18 of them look promising, as we now pass on to the next stage of understanding their business models, forecasts or having demos of their products,” Jessica states, underscoring the tangible

There was a marked improvement in the quality of start-ups at the festival.

There were three with whom we will definitely continue our discussions over possible investment.

— Paul Grech MONEY

outcomes of their participation.

“There was a marked improvement in the quality of start-ups at the festival,” Grech confirmed. “There were three with whom we will definitely continue our discussions over possible investments, as well as many more with whom we will keep following their progress.”

“This is a healthy sign, as is the public consultation announced during the event aiming to identify improvements that can be made to the local infrastructure.”

For Jessica Camilleri and Paul Grech, the Malta Start-up Festival remains a must on their yearly calendar. While they both identified areas for improvement, their overall experiences reflect the festival’s capacity to facilitate meaningful connections, foster innovation, and create opportunities for start-ups and investors alike.

THE BUSINESS EDITION

35

SURVEY

EY Malta’s

19th MALTA ATTRACTIVENESS SURVEY What current investors think about Malta during the Future Realised Conference

The findings from EY Malta’s attractiveness survey—the 19th edition of an annual study conducted among existing FDI companies in Malta—were launched today, with investors providing their views on what makes Malta an attractive location to invest in or the areas for improvement.

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MONEY

SURVEY

telecommunications infrastructure have decreased by 8% and 6%,

Attractiveness index

respectively, when compared with the results of 2022.

The flexibility of labour legislation, which ranked sixth last year, can

87%

now be found in fourth place on the attractiveness scoreboard. The

79%

59%

attractiveness of labour costs (37%) increased slightly from 2022 (35%), whereas the attractiveness of local labour skills level decreased by 5% (from 40% to 35%), and flexibility of labour legislation (44%) increased by 3%.

37% 15%

11% 17%

2014

13%

2017

2020

2023

No

Source: all 2014-23 respondents

Only one-fifth of respondents find transport and logistics infrastructure favourable. This is a further deterioration of 10 points when compared with 2022. Despite a minor improvement over last year’s result, Malta’s R&D and innovation environment (25%) remains on the lower end of the

Yes

Don’t know

Attractiveness Index In the wake of global economic shifts, Malta’s allure as a hub for FDI

attractiveness scoreboard.

Biggest risks

holds steadfast. Fifty-nine percent of existing FDI investors affirm

(vs 2022)

OECD/EU tax reform

Malta’s investment appeal, which remains unchanged from 2022,

61%

Skills shortages

48%

marking a notable upswing from the post-COVID-19 era in 2021.

Reputational concerns

37%

However, despite this upward trajectory, the current FDI attractiveness

Cost competitiveness

35%

ratings have yet to regain the exceptional confidence levels observed in

Banking challenges

the years before 2019.

Environmental concerns

significant increases in population and tourism, presents a challenging

Ease of doing business challenges

situation. This has led to escalating pressures on various aspects,

36% 38%

24%

Physical national infrastructure

Investors claim that Malta’s ongoing economic growth, along with

54% 36%

32%

Quality of life factors

58%

11%

15%

N/A

15%

14%

9%

13%

Limited innovation capacity

6%

Lack of financing

6%

5%

Logistics and supply chain challenges

5%

18%

Evolution of European legislative framework on digital services and markets

4%

8%

War in Ukraine

2%

5%

notably the cost of living and labour supply.

4%

Attractiveness combined Corporate taxation

73%

71%

62%

Telecommunications infrastructure Stability of social climate

61%

69%

Flexibility of labour legislation

44%

Potential productivity increase for your company

42%

Level of protection of intellectual property rights

42%

Labour costs

37%

35%

Local labour skills level

35%

40%

Domestic or regional market

33%

Stability and transparency of political, legal and regulatory environment

30%

R&D and innovation environment

25%

Transport and logistics infrastructure

41%

43%

35%

58%

The most significant risks facing Malta’s FDI attractiveness

45%

54%

With corporate taxation ranked as Malta’s most robust FDI parameter,

44%

the changes brought about by international tax policy developments are considered by 61% of respondents to be Malta’s most significant

29%

FDI-related risk for the next three years. The other substantial risks

47%

that respondents have highlighted are skills shortages (down from 54%

50%

in 2022), reputational concerns, cost competitiveness, and banking

27%

challenges.

31% 24% 30%

Source: all 23 respondents

67% 64%

68%

The most significant changes compared with last year’s results are, on the one hand, an increased importance being placed on quality of

28%

life factors (from 11% in 2022 to 24% in 2023) and a decrease in the 2023

2022

2021

Source: all 2021-23 respondents

perceived risk of logistics and supply chain challenges (from 18% in 2022 to only 5% in 2023).

FDI Attractiveness Scoreboard

Presence in Malta in 10 years

As in previous years, corporate taxation (73%) is viewed as the

Forecasting a decade into the future presents a substantial challenge

parameter that makes Malta attractive as an investment destination.

for investors in today’s dynamic economic and geopolitical context.

This is followed by its telecommunications infrastructure (62%),

Despite this, most (68%) of the surveyed FDI companies affirm their

slightly surpassing Malta’s social environment stability (61%). From an

commitment to maintaining their operations in Malta. This number has

attractiveness standpoint, the stability of the social climate and the

seen a gentle decline, down from a high of 80% in 2019. →

MONEY

THE BUSINESS EDITION

37

SURVEY

They recognise the vital role of broad development, including

Presence in Malta in 10 years time 80%

infrastructure and skills enhancement alongside sectoral expansion, in reinforcing Malta’s position in a continually changing global

77%

environment.

68%

23%

18%

15%

Malta’s progress in sustainability-related factors

8%

2%

Private sector incentives for green infrastructure

2020

2019

Yes

Don’t know

2021

No

2022

2023

52%

Clear targets and progress tracking in sustainable finance

41%

Use of green bonds and sustainable investment tools

Source: all 2019-23 respondents

20%

in the coming year. At 36%, this is close to the expansion plans reported during the COVID-19 pandemic (at 39% in 2021) but 10 points less than

Business engagement and commitment to sustainability

47%

Advanced Leading

22%

Not present Don’t know

12% 18%

12%

21%

46%

Developing Progressing

the 46% that indicated expansion plans in 2022, a year buoyed by a

41%

Consumer awareness and support for sustainable practices

10%

24% 27%

52%

Availability of green infrastructure projects for private sector investment

More than one-third of Malta’s investors plan to expand their operations

19%

45%

Policies and incentives to support sustainable investments and business transformation

Expansion Plans

16%

22% 26%

12%

16% 17%

32%

9%

10%

Source: all 2023 respondents

post-COVID-19 recovery.

Malta’s progress on sustainability-related factors Expansion plans Source: all 2023 respondents

The respondents’ perception of Malta’s rank across several

(vs 2022) 36%

Yes

37%

No Can’t Say

sustainability factors shows that all factors listed are developing.

46%

27%

The sustainability factor with the highest favourable ranking overall

30%

is business engagement and commitment to sustainability, followed

24%

by policies and incentives to support sustainable investments and business transformation. The lowest ranking is given to the use of green Priorities

Rank 2023

bonds and sustainable investment tools, followed by clear targets and

(vs Rank 2022)

progress tracking in sustainable finance.

1

Develop new economic sectors

1

Infrastructure, transportation and planning

2

2

Education and skills

2

3

Environmental, social and governance matters

4

4

Reputation and brand

5

5

Ease of doing business

6

6

Long-term economic planning

7

7

Strengthen institutions and enforcement

8

8

Fiscal incentives to attract specialised individuals

8

Changing existing tax framework

10

9

Support for established sectors

11

10

Stimuli to boost R&D and innovation

12

11

Shift to low carbon economy

13

12

Tech-related attractiveness compared

(vs 2022) Much more attractive

0%

2%

More attractive

15%

13%

As attractive

Source: all 2023 respondents

Don’t know

41%

41%

Less attractive Much less attractive

26%

28%

5%

3% 14%

13%

Technology-related factors attractiveness compared to other European countries Notwithstanding Malta’s small size, 41% believe Malta is as attractive as

Source: all 2021-23 respondents

other European countries in terms of technology-related factors that influence investment. Twenty-six percent say it is less attractive, and Priorities to remain globally competitive

only 5% said it is much less attractive, while on the other hand, 13% of

Investors emphasise the importance of developing new economic

respondents think it is more attractive.

sectors as a top priority for maintaining global competitiveness. This year, it has moved to first place, highlighting the need for a renewed

Planned infrastructure for population growth

focus on diversifying Malta’s economic landscape. The push toward

Eighty-eight percent of respondents consider Malta’s planning and

new sector development is accompanied by a clear need for improved

preparedness for population growth in infrastructure development

infrastructure, including transportation and planning, which have

inadequate. This is split between 50% of respondents who believe this

moved up to hold joint second place. Meanwhile, while still deemed

to be very inadequate and 38% who find it inadequate. Only 6% are

crucial, education and skills have moved to joint second place after

positive about this parameter and find it adequate.

ranking first last year. This shift highlights a balanced approach, where investors see the need for Malta to advance in multiple areas

Skills challenges

simultaneously.

Companies’ ability to retain specialised personnel has remained high

38

ISSUE 78

MONEY

SURVEY

and in line with the previous year and pre-pandemic levels. Still, challenges to find the required technical skills persist. For several years, Malta’s skill supply has been unable to keep up with the increasing demand for specialised (and other) skills. Sixty-nine percent of this year’s cohort reported being unable to find the required technical skills in the local labour market. This is slightly higher than the previous year’s survey results (66%).

19% No

69% No

31% Yes

Finding the Required Specialised Skills

Retaining Specialised Personnel

Source: all 2023 respondents

81% Yes

Ronald Attard EY Malta’s view In his opening address during the Malta Future Realised Conference, Ronald Attard, EY Malta Country Managing Partner, stated: “59% of FDI investors affirm the island’s appeal, very much consistent with the level in the previous year. While it is good to see that most investors perceive Malta to be attractive, the immediate question is why the numbers are not as high as those of a few years back.”

Looking at Malta’s most attractive feature for FDI, he underlined external factors which may soon come into play: “Beyond the

[...] the immediate question is why the numbers are not as high as those of a few years back.

immediate, investors express concerns about the implications of international tax policy changes, skill shortages in the longer term, and the island’s reputation. These concerns emphasise the critical need for strategic and timely action, especially when the country’s tax regime

As infrastructure enters the national debate, he commented on the

continues to be a significant draw for many investors.”

delicate balance between economic growth and labour challenges: “The existing strain on Malta’s infrastructure, intensified by continual economic, workforce, and tourism growth, is immediately apparent.

2% Don’t know

2% Very adequate 4% adequate 7% Neither inadequate nor adequate

Concurrently, challenges in the labour market, marked by a demand for specialised talent amid low unemployment and increasing labour costs, further dent the island’s current attractiveness.”

He posed several questions on this: “Is it time to profoundly re-evaluate our investment incentivisation strategy? Is it time for a radical overhaul of the education system? Should we stop talking about creating more jobs and start targeting more jobs in specific sectors? Can we leverage

Planned Infrastructure for Malta’s Population Growth

our existing skills base – both homegrown and imported – in industries such as gaming and pharma to establish Malta as a small European centre of excellence in AI, biotech and more?”

Attard commented on the growing push towards sustainability: “We need to ensure that sustainability is at the forefront of our planning to preserve our environment, culture and industries. Both public and 37% Inadequate

49% Very inadequate

private sectors have an important role in accelerating the sustainability agenda. As a nation, we must ensure we have the right tools and talent

Source: all 2023 respondents

to face sustainability challenges. Reaching net zero should not only be a compliance goal but a value goal.”

MONEY

THE BUSINESS EDITION

39

ECONOMY

MALTA 2.0 Crafting a Unified Brand for Global Success

JP Fabri explores the imperative of transformation in a post-crisis world. Drawing parallels to Darwin’s principles, Fabri underscores Malta’s past successes and the urgency to diversify and fortify its economy.

He delves into sectors, resilience, ecosystems, public sector reform, brand development, and educational enhancements, emphasising that adaptability is critical to Malta’s economic survival.

40

ISSUE 78

MONEY

ECONOMY

Economies and societies depend significantly

sectors. As a country, we must explore

predominant; however, this crisis has shown

on their adaptability, just like Darwin asserted

niche industries within existing sectors. For

us that any economy is an intertwined web

for living organisms. To prosper and thrive

example, in financial services, we need to

of actors, agents and different elements. For

in the long run, economies must evolve

review our regulatory frameworks to start

sectors and industries to thrive, we must

and remain future-proof by transforming

tapping into the sustainable finance industry,

have well-functioning ecosystems with no

themselves. Transformation is necessary but

which has been exhibiting growth globally.

broken links between market and institutional

becomes even more critical in a post-crisis

Therefore, it is imperative that, on a national

participants. Therefore, focus needs to be

environment.

level, we embark on a sectoral and industry

given to ensuring that all elements within an

transformation mapping exercise that needs

ecosystem are aligned and can support the

Over the years, Malta’s agility and skill have

to identify and target new growth areas within

respective sector. This includes the local talent

been vital determinants in transforming its

existing sectors.

pool, educational institutions, and access to finance and banking.

economy. Today, we are a diversified economy with solid sectors, including maritime,

Second, businesses must embark on and

aviation, financial services, remote gaming,

embrace resilience-building practices within

Fourth, we need to transform the public

life sciences and manufacturing. As a

sector, designed to deliver and be digital to the

country, we have developed robust regulatory

core. Although this is part of a broader digital

frameworks, innovative legislation, attractive

transformation, we need to ensure that before

incentive and support packages, invested in

going digital, a deep business re-engineering

robust telecommunications and technology

process of government services and delivery

infrastructure, and built an educational

of such services must be undertaken to

system capable of training the required human resources. Although we have achieved a lot, complacency is not an option. Even more so, given that all global economies have been paused, individual recovery plans are being drawn up, making the need for transformation even more critical. This is even more the case when the economic forecasts for Malta are analysed.

The forecasts presented by the government project further increases in unit labour costs, which, together with the expected higher inflation, could negatively influence Malta’s competitive position. Concomitantly, some of the critical services sectors in the economy

A unified brand for Malta, encompassing tourism, investment, culture, and lifestyle, is urgently needed.

reduce costs, increase efficiencies and start instilling a culture of excellence throughout the country.

Fifth, it is time that we develop the brand Malta. Unfortunately, there is a lack of a coherent brand for the country. At a time when competitiveness between countries is going to be cutthroat, it is essential to focus on our image, reputation and way of promoting ourselves. The need for a unified brand that ties together all the elements, including tourism, investment attractiveness, culture and lifestyle, has never been so urgent.

Sixth, to transform the economy, we must

may be reaching market saturation. The

ensure that the fundamentals work. Here, we

potential impact of introducing global tax

must thoroughly review and re-assess our

harmonisation on multinational regimes also

educational system. International studies

constitutes a possible further risk factor for

such as PISA clearly show that Malta needs to

export growth. Furthermore, growth primarily

progress in crucial areas, including attainment,

emanates from increases in domestic demand,

soft or critical skills, and science-related subjects. Access to baking and finance is

mainly from private consumption expenditure.

For growth to be sustainable, it ideally needs

their organisations. COVID-19 and the other

another essential area that needs to be

to be export-led, and this strengthens the

global crises we have lived through these past

addressed, whereby Maltese SMEs are faced

need to improve competitiveness through

two years have reaffirmed that we live in a

with higher interest rates when compared to

labour productivity increases.

volatile, uncertain, complex and ambiguous

their European peers.

environment. Business leaders need to shore As a country and economy, we need to embark

up organisational resilience to ensure a

I believe transformation is one of the critical

on a transformation process that is wide-

risk-based approach to identify, assess and

pillars that any economic recovery and vision

ranging and on various levels.

manage business risks and have business

must embrace. It is a process that takes time

continuity plans in place. Businesses must be

and that requires critical thinking, courage

First, on an economic level, we need to

better prepared and provide a reserve level as

to reform and determination. More than

continue focusing on further diversifying our

a buffer for unexpected events.

two thousand years ago, Heraclitus said that the only constant is change. Failure to

economy. Although we need to try attracting new economic sectors, we need to now focus

Third, we need to adopt a cluster and

continuously transform ourselves will be a

more on diversifying existing economic

ecosystem mindset. Silo-thinking has been

threat to our survival.

MONEY

THE BUSINESS EDITION

41

FINANCE

NAVIGATING MALTA’S BUSINESS LANDSCAPE Asset Management Perspective

Paul Rostkowski unravels asset managers’ challenges, from navigating complex regulatory frameworks to grappling with limitations in banking services and depositary options and sheds light on the anticipated impact of AIFMD II. It proposes collective initiatives to fortify Malta’s asset management ecosystem, emphasising the need for expertise, innovation, regulatory clarity, and technological integration to propel the asset management industry forward.

The beautiful archipelago of

Alternative Investment Fund

Malta is a reliable and strategic

ambiguous regulations and

Malta, tucked away among the

Managers Directive (AIFMD) in

choice for asset managers

lengthy approval processes,

crystal-clear waters of the

2013 marked a pivotal move

seeking a regulatory advantage

hindering their ability to respond

Mediterranean, has become a

towards standardising regulations

within the European Union.

swiftly to market opportunities.

land of opportunity for asset

across the European Union.

Despite these challenges, Malta’s

managers looking for a favourable

However, such regulatory

regulatory framework stands

regulatory framework, attractive

In recent years, the asset

measures implemented by

as a crucial foundation for the

tax structures, and a skilled

management industry in

the MFSA, though designed

success of its asset management

workforce. Malta has become a

Malta has witnessed a notable

to safeguard the industry,

landscape.

financial services hub, especially

evolution, significantly influenced

sometimes present complexities

in the asset management

by the regulator. In a recent article

for asset managers navigating

Malta’s Asset Management

industry, thanks to its strategic

in the Finance Malta newsletter, I

its intricacies. While providing

Ecosystem: A Critical Analysis

location at the crossroads of

explored the factors making Malta

stability, it can also impede

Europe, Africa, and the Middle

a compelling business jurisdiction.

innovation and agility, particularly

While Malta has emerged as

East.

From an asset management

for smaller asset managers

a prominent hub for asset

standpoint, Malta stands out not

lacking extensive resources.

management, the Maltese asset management ecosystem faces

Malta’s Regulatory Framework:

just for its strategic location,

A Double-Edged Sword for Asset

regulatory strength, and EU

The MFSA’s approach, aiming

critical challenges that sometimes

Managers

market access but mainly for

to balance fostering innovation

hinder its continuous growth and

its agility as a responsive and

and safeguarding investor

potential.

Malta’s asset management sector

adaptable asset management

interests, can sometimes lean

functions under the regulatory

jurisdiction. Malta’s distinctive

towards the latter, discouraging

The critical challenge the asset

oversight of the Malta Financial

strength is the regulator’s

asset managers from exploring

management sector in Malta

Services Authority (MFSA), a

foresight, which guides the

potentially beneficial, albeit

faces is the need for robust

regulatory body recognised for

ongoing evolution of regulatory

riskier, investment strategies.

banking solutions. The limited

its emphasis on safeguarding

solutions. This adaptability

investors and ensuring market

enables market players to identify

Criticism is not absent, with

services, such as prime brokerage

stability. In asset management,

the most suitable channels for

Malta’s regulatory framework

and custody solutions, poses

the shift from an unregulated

offering services, fostering

facing scrutiny for its complexity

a significant hurdle for asset

environment to the regulatory

an environment conducive to

and occasional lack of clarity.

managers operating in Malta. This

framework introduced by the

innovation and sustained growth.

Asset managers often navigate

deficiency sometimes requires

42

availability of specialised banking

ISSUE 78

MONEY

FINANCE

asset managers to rely on foreign

development of specialised

the industry’s landscape. With

emerging trends and maintain

banks, leading to inefficiencies

banking services tailored to

its innovative technologies,

its competitive edge, Malta’s

due to increasing costs and

the needs of asset managers,

fintech is revolutionising

asset management industry

operational complexities.

such as prime brokerage and

asset management practises,

must address several critical

custody solutions.

enhancing efficiency and

areas:

Attract Depositaries:

reducing costs. Sustainability

management ecosystem lacks

Implement measures to attract

is also gaining traction, with

sufficient qualified depositaries.

more depositaries to Malta,

asset managers increasingly

workforce will be able to meet

Depositaries play a crucial

such as offering tax incentives

incorporating ESG (environmental,

the changing demands of the

role in safeguarding investor

and a supportive regulatory

social, and governance)

asset management sector if it

assets and ensuring compliance

environment.

considerations into their

shifts from a quantity-based

Promote Collaboration:

investment strategies.

to a quality-based industry

Furthermore, Malta’s asset

with regulatory requirements

•

•

•

Fostering Expertise: Malta’s

that encourages the natural

for several investment fund

Foster collaboration between

structures. The limited availability

the Maltese government,

While these trends present

development of specialised

of depositaries in Malta constrains

banks, asset managers, and

exciting opportunities for

skills and expertise in the fields of AIFs, fintech, and ESG

the choices for asset managers,

investing.

potentially causing delays in •

fund launches and increased

Promoting Innovation: Create an environment that fosters

operational costs.

innovation and encourages The anticipated introduction of AIFMD II will bring some relief to Malta’s asset management industry. Part of the main changes proposed by the European Commission in AIFMD II aims to harmonise depositary rules across the European Union, allowing depositaries in one EU member state to passport their services to other member states, adhering to specific criteria.

This will increase the availability of depositary services in Malta and provide asset managers with more options. However, the

By collectively addressing these challenges and proactively adapting to emerging trends, Malta’s asset management industry can redefine itself...

collaboration between asset managers, fintech companies, and academic institutions to develop cutting-edge solutions for the industry.

•

Enhancing Regulatory Clarity: Continue to work with the regulator to provide clear and consistent regulatory guidance for AIFs, fintech, and ESG investing, ensuring that asset managers can confidently navigate the regulatory landscape.

•

Embracing Technology: Positioning Malta as a

implementation is still in progress,

technology-driven asset

and its full impact on Malta’s asset

management hub involves

management ecosystem remains

embracing cutting-edge technologies such as

to be seen. In the meantime, asset managers operating in Malta

depositaries to identify and

asset managers, they also pose

blockchain and artificial

must continue to navigate the

address industry-specific

challenges that require careful

intelligence, aligning

challenges of a limited banking

challenges.

consideration and adaptation.

the industry with the

The increasing complexity of

advancements of the

Malta’s Asset Management

investment strategies, driven

digital era.

Landscape: Navigating

by the growth of AIFs and the

While discussions on this matter

Emerging Trends and Adapting

adoption of fintech solutions,

By collectively addressing these

have been extensive locally, we

to Challenges

demands a higher level of

challenges and proactively

expertise and skill from asset

adapting to emerging trends,

infrastructure and a scarcity of depositaries.

must confront these pressing matters. Taking collective action

Malta’s asset management

managers. Additionally, the

Malta’s asset management

is essential to strengthen Malta’s

industry is poised for continued

growing focus on sustainability

industry can redefine itself as

asset management ecosystem

growth, driven by several key

necessitates a deeper

an innovative hub for asset

and address its challenges. Such

trends reshaping its future.

understanding of ESG factors

managers. This involves

initiatives could include:

The growth of the AIF sector,

and their impact on investment

attracting and retaining talent,

fuelled by investor demand

decisions.

fostering innovation, and driving

•

Enhancing our local banking

for diversified investment

infrastructure: Encourage the

opportunities, is transforming

MONEY

growth in this dynamic and To successfully navigate these

THE BUSINESS EDITION

continually evolving sector.

43

ECONOMY

STICKY INFLATION Economic resilience at risk on the back of higher rates for longer

Jordan Portelli analyses the delicate balance between achieving desirable inflation levels and preventing economic shocks. Despite these challenges, pockets of economic resilience exist globally, offering hope amid uncertainty.

The repercussions of the COVID-19 pandemic and other unprecedented

emerged as a year in which unpredictability on the path of inflation re-

circumstances, namely geopolitical tensions, continue to weigh on

emerged, which caused uncertainty about the levels of interest rates

inflation despite the actions taken by major central banks to hike

going forward.

interest rates.

The ache of high inflation levels continues to pressure economic Inevitably, high inflation levels were warranted, while its extent and

sustainability. Simply put, disposable income will decrease as prices

duration were, and still are, difficult to predict. The actions taken by

increase, and consumers will inevitably change their spending

both monetary politicians in terms of rate cuts, remarkable liquidity

patterns. Indeed, historically, in times of inflation pressures,

injections through quantitative easing, and notable efforts by many

consumers cut back on discretionary spending as they are faced with

governments to combat a stagnant global economy due to the

higher prices for basic needs and other uncertainties that instantly

pandemic were a plausible cause for expected inflation. However, 2022

push household savings higher.

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ISSUE 78

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ECONOMY

Expectedly, central banks have raised rates to combat the high inflation

costs are at historic highs as the as-yet-low participation rate

levels and achieve their 2% inflation target. However, the monetary

continues to pile pressure on wages. Likewise, a similar situation is

tightening action of excessively higher rates threatens economic

experienced in the euro area, with a rate of 6.7%, a historically low

growth over the short to medium term.

level.

Contrary to expectations, inflation remained sticky, with major central

Reading through inflation in the U.S., unsurprisingly, core inflation

banks pursuing their efforts to tame inflation by increasing rates. This

has upheld its downward trend over the past readings, which kicked

scenario was not the base case in January this year. At this stage, the

off in June 2022 and should be sustained, given the elevated rates.

question is whether these higher and longer rates will push inflation

However, lower core inflation in Europe is slower than expected, with

towards desirable levels without causing economic shocks.

the ECB remarking that this sustained level is a cause for concern.

In theory, higher rates will reduce consumption, implicitly pushing

As said, prolonged inflation will continue to pose severe implications

inflation lower. However, in practice, a mismatch between reality

for economic sustainability. Undesirably, if inflation remains sticky,

and expectations is one of the major concerns today. Achieving

central banks will retain these high rates or consider increases,

lower inflation, with the significant implications of slower growth, is

which will inevitably cause hardship to the global economy.

acceptable at this juncture. The real risk is a situation in which the desirable inflation levels are achieved through a challenging landing

Locally, inevitably, we have also experienced high levels of inflation.

scenario.

However, recent inflation figures showed that we are aligned with

Chart 1 — US Unemployment rate

Chart 2 — Core Inflation

Unemployment rate (%) / Time

Core inflation (%) / Time

16

7

14

6

12

Eurozone

US

5

10 4 8 3 6 3.8%

4

2 1

2 0

0 Jan-20

Apr-21

Jun-22

Sep-23

Jan-18

Jan-21

Jul-23

I do not think this is the base-case scenario. From a regional point of

our peers in experiencing an easing inflation path. Nonetheless,

view, we continue to see economic resilience in selective geographical

what is frustrating locally is the still elevated prices consumers are

areas, and thus, this augurs well for the entire global economy.

charged for selective goods. For instance, the excuse was the high freight rate, which, realistically, impacted transportation costs.

Realistically speaking, a soft landing or a slower growth scenario is the

However, today, we are back to 2019 levels, a notable depreciation of

base case at this juncture.

80% from the highs reached in January 2022. So last year’s excuse is irrelevant today, and the as-charged higher prices are an unfair and

In reality, we have seen a clear trend of inflation easing. However, as

self-centred approach to local consumers.

of now, it could be more satisfactory in terms of its pace. Thus, higher rates for longer are the most plausible in the current environment.

In conclusion, the short-to-medium view is that current interest rates are here to stay for longer. In reality, we have to accept that

At this juncture, despite selective economic data points having

we are entering a new normal versus what we were accustomed

softened, namely leading indicators such as purchasing manager

to over the past decade—a scenario of an ultra-low interest rate

indices, others are still emerging as a notable threat to abating inflation,

environment. Despite resolving short-term issues, the latter has also

including the strong labour market that continues to hinge on inflation.

posed negative long-term repercussions, namely the excess levels

This is a long-term repercussion of the pandemic.

of debt, which now need refinancing at today’s higher rates. Thus, let’s be optimistic but tread with caution. Unfortunately, the recent

Practically speaking, in the U.S., the unemployment rate currently

geopolitical tensions are another pinch on much-needed stability.

stands at 3.8%, a rate last seen c.50 years ago, while unit labour

Let’s hope that common sense prevails.

MONEY

THE BUSINESS EDITION

45

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iconic SUV not only represents luxury and

Range Rover identity with a modern and

performance but also takes a significant leap

dynamic aesthetic. Its exterior features taut

towards electrification. With a striking design,

surfacing, a dynamic stance, and instantly

cutting-edge technology, and a range of

recognisable profiles. Signature elements

potent powertrains, the Range Rover Sport

like short overhangs and an assertive

elements, including satin grey alloy wheels,

promises an unrivalled driving experience.

front end convey a solid and commanding

satin burnished copper finishes, a matte

road presence, emphasising power and

graphite Atlas front grille, and Range Rover

performance.

lettering. It provides the most dramatic

Diverse Powertrain Selection

interpretation of the Range Rover Sport

The core of the Range Rover Sport boasts a diverse range of powertrains that cater to

The exterior has exquisite finishes, including

various preferences.

a stealth-like front grille and digital LED

formula.

lighting. These sleek designs, the slimmest

Luxurious Interior

From those who seek efficiency to those

ever fitted to a Land Rover, rest above a

Stepping inside reveals an equally stunning

desiring sheer power, the lineup includes:

sculpted lower bumper, incorporating a

interior. The cockpit-like cabin is designed

1. Six-cylinder extended-range electric

bisecting body-colour element that enhances

to enhance the dynamic driving experience

visual width.

while ensuring excellent visibility. Innovative

hybrids;

and sustainable materials, such as

2. A powerful V8; and The rear showcases a sculpted tailgate with

Ultrafabrics™ premium textiles, are finished

uninterrupted LED light graphics, a first for

in attractive dual-tone colourways. Options

Land Rover production vehicles. The longest

include luxurious-grained Windsor or soft

Excitingly, pure-electric propulsion is set

Range Rover spoiler to date and lower fender

semi-aniline leather.

to debut in 2024, marking Land Rover’s

details highlight the vehicle’s distinctive

continued electrification journey.

shoulder line, which runs the entire length.

3. Mild hybrid six-cylinder petrol and diesel Ingenium engines.

These tactile materials seamlessly blend with new moonlight chrome interior

Beautifully executed flush glazing, door

finishers, creating a clean, modern aesthetic.

handles, a hidden waist rail finisher, and a

Integrated audio speakers, developed with

laser-welded roof enhance the vehicle’s clean

Meridian and hidden behind the textile of

lines. These design enhancements not only

the rear doors, contribute to the crisp and

improve aesthetics but also contribute to

contemporary look.

excellent aerodynamic performance, with a drag coefficient of just 0.29.

Engaging Performance The Range Rover Sport introduces advanced

46

For those who seek a sportier appearance,

chassis technologies that elevate the

the Dynamic model offers unique design

driving experience. The flexible mixed-metal

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architecture (MLA-Flex) provides superior

the Air (SOTA) ensures the vehicle remains

system output of 510 PS. It can achieve 0-100

torsional stiffness, and the Integrated Chassis

at the cutting edge of innovation, modern

km/h in just 5.4 seconds, an electric driving

Control system governs systems specially

technology, and services.

range of up to 113km, and CO2 emissions of just 18 g/km.

tuned for the vehicle.

The award-winning Pivi Pro infotainment Dynamic Response Pro, working with Dynamic

system features a high-resolution floating

A P440e Electric Hybrid is also available,

Air Suspension, provides ultimate roll

13.1-inch curved touchscreen at the centre

producing 440 PS and offering a similar all-

control, ensuring a confident and composed

of the modernist dashboard. Amazon

electric driving range and low CO2 emissions.

driving experience. Dynamic Air Suspension

Alexa integration allows for natural voice

For those seeking power, the V8 Twin Turbo

optimises suspension responses based on

commands, keeping drivers focused on the

churns out 530 PS and can go from 0-100

eHorizon navigation data to prepare for

road.

km/h in just 4.5 seconds.

upcoming bends.

Electrified Performance

Peerless Capability

The Active Twin Valve Dampers are

The Range Rover Sport offers a

The Range Rover Sport is not just about

constantly controlled by Adaptive Dynamics

comprehensive lineup of electrified

luxury and performance; it also excels

2 technology to stop the body from moving

powertrains. The P510e Electric Hybrid

off-road. Intelligent All-Wheel Drive (iAWD)

in ways that are not wanted. This gives you

combines a 3.0-litre six-cylinder Ingenium

integrates with all-terrain innovations like

precise and stable driving dynamics.

petrol engine with a powerful electric motor

Adaptive Off-Road Cruise Control and Terrain

and a 38.2kWh battery, producing a total

Response 2® to ensure outstanding off-road performance.

Adding all-wheel steering, torque vectoring by braking, and the electronic active differential takes cornering agility to a new

In conclusion, the Range Rover Sport

level, enhancing stability at high speeds and

represents more than an SUV; it embodies

manoeuvrability at low speeds.

luxury, performance, and innovation. With its diverse powertrain options, striking design,

Seamless Technology

luxurious interior, and advanced technology,

The Range Rover Sport embraces Land

it’s ready to redefine how we experience the

Rover’s powerful Electrical Vehicle

road. Whether pursuing electrification or

Architecture (EVA 2.0), offering seamlessly

seeking the ultimate driving experience, the

connected technologies. Software Over

Range Rover Sport has you covered.

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R E G U L AT O R Y

EU REGULATORY RIDDLES UNVEILED A Guide for Manufacturers and Importers

As globalisation links economies, manufacturers and importers increasingly seek to expand into international markets. The European Union, with its robust economic power, is a prime destination for business expansion. However, entering the European market is often a daunting prospect due to the labyrinthine structure of EU directives and regulations.

These laws safeguard consumers and uphold the integrity of the European market, making compliance a non-negotiable factor for businesses.

Stephen Mallia delves deeper into each step of achieving compliance, providing a comprehensive roadmap for navigating EU regulatory frameworks.

Before plunging into the intricate nuances of compliance,

underestimated. Beyond the immediate financial penalties

it’s crucial to grasp its profound significance in the modern

and potential forced withdrawal from the market, the

business landscape. Compliance isn’t merely a legal

damage inflicted on a brand’s reputation can have long-

obligation; it’s an integral element in the architecture

lasting ramifications, necessitating years, if not decades,

of brand equity. In a marketplace where consumers are

to fully recover.

increasingly discerning, the assurance that a product meets stringent safety and quality standards becomes

While both directives and regulations aim to harmonise

a powerful asset. This assurance cultivates trust, which

laws across the EU, they function differently. Directives

fosters brand loyalty and encourages repeat patronage,

are guidelines that outline objectives, but it’s up to

critical ingredients for sustained business success.

individual member states to enact laws that achieve these

Conversely, the costs of non-compliance are not to be

objectives. This can lead to nuances in how a directive is

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implemented across countries. For instance, the EnergyRelated Products (ErP) Directive 2009/125/EC sets eco-design requirements but allows each member state to enforce these rules as they see fit.

Regulations, such as the General Data Protection Regulation (GDPR), are universally binding and take effect without requiring national legislation. The immediate applicability of regulations can both simplify and complicate matters. On the one hand, their universal enforcement simplifies compliance by providing a single, unified set of rules. However, this can be a double-edged sword: the standards set by regulations are often elevated

The complex framework of EU directives and regulations serves a dual purpose: protecting the consumer and ensuring a fair marketplace.

and call for meticulous compliance protocols. The absence of local variation means businesses must meet these high standards uniformly, irrespective of where they operate within the European Union.

It might seem elementary, but accurately defining your product’s intended use is crucial and often requires more detail than one might initially think. A more explicit definition is needed instead of a broad categorisation such as ‘Electronic temperature measurement device’. For example, ‘An electronic device powered via 230V mains supply will measure the surrounding temperature within indoor spaces and send the measured information over WiFi. This will be used only by adults to monitor household ambient temperatures and is not intended for industrial or commercial applications’. Specific identification of the application not only delineates the market scope but also sets the stage for identifying the particular compliance requirements your product must meet.

Moreover, these functional markers and limitations should be communicated to potential clients before purchasing,

covering general machines or the Low Voltage Directive

eliminating ambiguities and setting appropriate

for “electrical equipment designed for use with a voltage

expectations from the shop window.

rating of between 50 and 1,000V for alternating current and between 75 and 1,500V for direct current” – of which

Typically, a document covers a range of essential factors

general household and industrial electric goods are

to ensure complete transparency and comprehensive

considered.

understanding. These include, but aren’t limited to, the economic operator classification, the product designation

For one product, multiple directives or regulations are

and intended use within the specified application area,

often relevant, making it crucial to grasp the scope

foreseeable misuse, scope of delivery, workplaces to be

and specifics of each fully. For instance, due to its

used, the possible operating modes, the intended service

communication functionality, the Radio Equipment

lifetime, disposal requirements and other pointers.

Directive would likely be the primary point of reference with the aforementioned electronic temperature-

Identifying the relevant directives and regulations

measuring device. Navigating this intricate mesh of

is indispensable before putting pen to paper on your

regulations can be significantly simplified by consulting

product’s initial design. While generic criteria apply to

with legal experts and professionals in your industry. Their

multiple product types, specialised regulations often

insights can help identify which harmonised standard

exist for niche industries. A typical generic directive can

titles are relevant to your product, ensuring it aligns with

be easily identified, such as the Machinery Directive,

all pertinent criteria and smoothing the path through the

when considering “an assembly, fitted with or intended to

EU’s complex regulatory environment.

be fitted with a drive system other than directly applied human or animal effort, consisting of linked parts or

Moving forward, a preliminary risk assessment is a crucial

components, at least one of which moves, and which

next step. This can vary in format but should encompass

are joined together for a specific application” – thus

critical elements such as defining the scope and →

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devices. This directive restricts the incorporation of specific hazardous materials in electrical and electronic devices. Any design modifications should undergo rigorous

Firms that master this regulatory maze unlock the doors to a financially rewarding market and secure a treasured asset: consumer trust.

testing and documentation to mitigate risks.

Once your product has been fine-tuned and has cleared all internal tests, the next milestone is undergoing formal conformity assessments. Your product’s nature heavily influences the intricacy of this stage. For instance, machinery mandates a multifaceted evaluation encompassing various fields, such as mechanical and perhaps electrical assessments. These products often require validation from a Notified Body due to the higher inherent risks. In contrast, items like children’s toys might necessitate fewer layers of third-party evaluation but are still held to rigorous safety criteria.

The choice between accredited and non-accredited labs for evaluations presents a balancing act between

intended use, identifying hazards, and estimating

credibility and cost. Accredited labs come with a stamp of

and evaluating risks. The assessment should include

quality assurance and global recognition, earned through

recommended hazard mitigation and control methods

stringent evaluations by accrediting organisations.

to manage these identified risks. Finally, any proposed

Regulatory bodies widely accept their findings, offering

solutions should be verified and validated to ensure their

businesses more confidence. Although generally more

effectiveness.

budget-friendly, non-accredited labs need this formal oversight, making their results less universally accepted.

The recommended risk mitigation measures may not

They may be suitable for preliminary assessments but

eliminate all risks. In such instances, the process is

come with an implicit risk due to the absence of rigorous

reevaluated and refined until the residual risks reach

scrutiny.

an acceptable safety threshold. This iterative riskassessment cycle should be applied across all lifecycle

Looking back at our electronic temperature monitoring

stages, from initial production to eventual disposal.

device, one of the critical milestones is placing the CE

Rigorous documentation of each step is crucial, as it

mark. This marking, while simple in appearance, holds

facilitates ongoing improvements and serves as a valuable

considerable weight. It signifies that the product has

record for compliance and future reference.

undergone rigorous testing and evaluation covered by

Conducted in the initial stages, risk assessments often rely on theoretical analyses guided by existing standards rather than evaluations of the actual product. As such, revisiting these assessments once prototypes are available is advisable. This allows for identifying and incorporating any unforeseen anomalies that may have emerged during the development phase, thereby ensuring a more accurate and comprehensive risk profile.

A subsequent review often incorporates simulated testing conditions, in-house trials, and third-party evaluations. Compliance with the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) Regulation may be necessary for products involving chemical substances or those that maintain constant user contact. This involves a thorough investigation and documentation of the chemical properties and their potential impacts aimed at mitigating the risk of harmful chemical transmissions.

Adherence to the Restriction of Hazardous Substances (RoHS) Directive is crucial in manufacturing our electronic

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the related standards and complies with all relevant

any product modifications throughout its lifecycle, often

directives. Acquiring these attestation certificates is

extending up to a decade following the sale of the last

often a lengthy process that requires you to engage

unit. This archival diligence ensures you’re well-prepared

with various stakeholders, including certification bodies,

for any regulatory or safety inquiries that may arise.

material suppliers, and sometimes even end users, that help you provide valuable insight into the information your

Once your product enters the market, compliance remains

prospective clients require.

an ongoing responsibility. Post-market surveillance entails continuous data collection and analysis of your

The ultimate goal is to assemble a comprehensive

product’s safety and performance. Adhering to numerous

technical file based on the processes we’ve explored.

EU directives and regulations, this phase is not optional

This file is a repository for crucial information beyond

but mandatory. If your product becomes involved in any

what we’ve already discussed. It should include the user

incidents, prompt reporting to relevant authorities is

manual, the corresponding declaration of conformity

essential, and corrective measures, ranging from product

to affirm that the product meets requisite standards,

recalls to design adjustments, as the request entails.

technical drawings and schematics to provide a detailed view of its design, and clearly defined manufacturing and

Having an organised and current technical file simplifies

assembly procedures. Additionally, datasheets of critical

this process, enabling you to share pertinent data with

components used in the product should be present, as

market surveillance bodies promptly. Conversely, an

well as safety and operational stickers and markings to

incomplete or outdated file can turn a manageable

ensure proper usage. Including these elements should be

situation into a crisis, leaving you scrambling for essential

part of the file, offering a complete picture of the product’s

information, documents, or test reports when time

compliance and specifications.

is of the essence. Keeping your compliance records meticulously updated prepares you to act quickly and

After compiling all the necessary documentation and

responsibly, ensuring safety remains at the forefront of

securing compliance marks like the CE mark for the

your business operations.

product, you can confidently assert that your product meets local and European regulatory standards. This

Indeed, some may argue that as importers or distributors

assurance isn’t just a formality; it offers manufacturers

rather than manufacturers, the onus of compliance should

invaluable peace of mind that their product is compliant

stay on them. However, in the legal landscape, importers

and safe for both the intended users and bystanders.

and distributors bear responsibility for the products they

To sustain this level of assurance, it’s vital to implement

introduce to local markets. As such, they may be called

rigorous documentation control procedures. Coupled

upon to furnish safety-related documentation at anytime.

with a robust quality management system, such as the To safeguard their operations and uphold product quality,

attestation to ISO9001, it allows for meticulous tracking of

these stakeholders should establish strong relationships with their European and especially non-European suppliers. Proactively requesting essential documentation well before any issues arise serves a dual purpose: it not only prepares them for any regulatory scrutiny but also gives them, and by extension, their customers, the assurance that the products meet requisite safety standards. By taking these steps, importers and distributors elevate the quality marker of their offerings and instil a more profound sense of responsibility within their business framework.

The complex framework of EU directives and regulations serves a dual purpose: protecting the consumer and ensuring a fair marketplace. While the process is intricate and often challenging, the payoff is significant. Firms that master this regulatory maze unlock the doors to a financially rewarding market and secure a treasured asset: consumer trust. Given the rapidly evolving landscape of international trade and legislation, continuous learning and adaptation are essential. With the right resources and meticulous approach, navigating the EU directives and regulations maze is feasible and rewarding.

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AI

CATALYSING

THE AI REVOLUTION Empowering SMEs for a Digital Future

The dawn of AI technology has ushered in a new epoch in contemporary business settings, with its potential to transform operations, amplify customer engagement, and propel competitive advantage. For SMEs, embracing AI could be a linchpin for attaining operational efficacy and a competitive edge in the rapidly morphing market arena. Jake Aquilina looks into the challenges and opportunities and suggests rules for using AI in small and medium-sized businesses, giving them information that could help them have a successful digital future.

Small and medium-sized enterprises (SMEs)

Based on the research that was published

be robotic. Accuracy of information is also still

are the backbone of the global economy,

recently by Harvard Business School,

a worrying factor*, as well as questionable

constituting a significant portion of the

‘Navigating the Jagged Technological

trawling and data-hoarding.

business landscape. On the other hand,

Frontier: Field Experimental Evidence of

artificial intelligence (AI) represents the

the Effects of AI on Knowledge Worker

Many emerging AI business solutions are

zenith of technological innovation, unveiling

Productivity and Quality’, employees utilising

budding, allowing businesses and employees

various solutions for the business sector.

ChatGPT significantly outperformed those

to decrease the time needed to complete

Good or bad, it’s here to stay, and companies

who did not (25.1% increase in speed, over

specific tasks. But challenges remain.

and employees might need to adapt.

40% improvement in output quality, and 12.2% more tasks completed).

Barriers to AI adoption in SMEs

AI and productivity: What the data tells us AI also demonstrated a skill-leveling effect,

Financial Constraints: The financial outlay

The odyssey of AI adoption in the business

where lower-performing consultants

for procuring and deploying AI technology

realm traces its roots back to the evolution of

experienced a 43% performance boost,

can significantly impede SMEs. Unlike their

machine learning algorithms, which are the

diminishing the performance gap between

larger counterparts, SMEs often grapple with

bedrock of modern AI technologies. Numerous

top and bottom consultants. Navigating AI

restricted financial resources, rendering

studies have delved into AI adoption in SMEs,

involved two approaches: ‘Centaur Behavior’,

the upfront investment in AI technology

shedding light on these enterprises’ potential

which splits tasks between humans and AI

daunting. Usually, there are pricing solutions

boons and challenges. The current wave of AI

based on strengths, and ‘Cyborg Behavior’

provided by SaaS companies, with monthly

technology, encompassing machine learning,

for an intertwined human-AI collaboration.

subscriptions or free trials, which could help

natural language processing, and robotics,

However, on the negative side, overreliance

businesses test the specific AI solution and

holds substantial promise for SMEs, unlocking

on AI can diminish vigilance and lead to less

see if it is the right solution for their business

a treasure trove of opportunities.

diverse and individualistic output, which can

before paying.

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Technical and Skill Barriers: Another towering hurdle is the need for more specialised expertise for implementing and managing AI solutions. Training and development quandaries further aggravate the technical barriers as SMEs need help to upskill their workforce to meet the demands of AI technology.

Data Privacy and Security Concerns: Adhering to data protection laws and managing the risks tied to data handling are pivotal concerns for

AI’s potential to personalize customer experiences can enhance satisfaction and loyalty.

can liberate precious time and resources,

programs and certifications could offer an

paving the way for enhanced operational

accessible and cost-effective platform for

efficiency. Moreover, AI-powered data

skill augmentation, preparing SMEs for the

analytics can significantly bolster decision-

digital transformation journey.

making processes, providing actionable insights that drive operational efficiency.

Data Protection Policies: Strengthening data privacy laws and propagating awareness

Customer Engagement: AI can engineer

and education on data security is paramount

personalized customer experiences, nurturing

for safe AI adoption. Robust data protection

stronger relationships and loyalty. AI-powered

frameworks can instil confidence among

chatbots, for instance, can revolutionize

SMEs, encouraging them to embrace AI

customer support, delivering prompt and

technologies with minimised risks.

efficient service, which could enhance customer satisfaction and loyalty.

Encouraging a Culture of Innovation: A positive attitude towards technological

SMEs delving into AI. The potential misuse or mishandling of sensitive data looms as a

Competitive Advantage: Real-time market

change is crucial for overcoming resistance

substantial risk, necessitating robust data

analysis facilitated by AI can give SMEs a

and fostering innovation. Incentives for early

security measures.

crucial advantage in a fiercely competitive

AI adopters among SMEs could catalyse

market. Furthermore, innovative product or

widespread AI adoption, promoting a culture

Resistance to Change: The ingrained

service offerings propelled by AI technology

of innovation and continuous improvement.

organizational culture and employee

can position SMEs as frontrunners in their

resistance can thwart the seamless adoption

respective domains.

of traditional operational practices is

As the digital dawn unfolds, small and medium-sized enterprises stand on

of AI technology. Surmounting the inertia Policy Recommendations

the cusp of a transformative era fueled by artificial intelligence. The road to AI

indispensable for a successful transition to AI-enabled operations. Some employees also

Financial Support: Government grants and

adoption is punctuated with challenges

think that AI might take their jobs, and indeed,

subsidies could ease the financial strain on

and opportunities, each forming an integral

people need to be more flexible and adaptive

SMEs, making AI technology more accessible.

part of the learning curve. The harmonious

and will need to upskill and reskill themselves

Public-private partnerships (PPPs) can also

melding of human ingenuity with AI’s

more consistently. It is the result of such fast-

cultivate a conducive milieu for AI adoption

computational prowess heralds a new

paced advancements, which could result in a

in SMEs, pooling resources and expertise to

paradigm, one where the ‘jagged frontier’ of

heightened Neo-Luddist aura.

mitigate financial and technical barriers.

AI is navigated with prudence and strategic

Opportunities for AI adoption in SMEs

Skill Development and Training: Both

foresight. governmental and private sector initiatives

*www.theguardian.com/technology/2023/sep/06/

Process Optimisation: Automating

are vital for fostering the requisite skills

chatgpt-cant-be-trusted-the-guardian-is-right-

monotonous and routine chores through AI

among the workforce. Online training

to-block-its-web-crawler

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PROMO

CHARTING THE COURSE MONEY speaks to Ruben Caruana, the dynamic chief sales officer at Intercomp Pro. With a knack for driving revenue growth and a vision for global market expansion, Caruana shares insights on leading Intercomp Pro’s sales strategies, navigating rebranding, and ensuring the team’s agility in a rapidly evolving tech landscape.

Congratulations on your new

this by looking at the specific

the purpose of this rebranding

To align our sales strategies with

role as head of business sales

business problems and tailoring

is to drive business growth.

the broader company goals and

at Intercomp. Can you tell us

customised solutions to address

Intercomp Pro’s rebranding

long-term objectives, I plan to

about your key responsibilities

those requirements.

efforts were anchored in strategic

implement the following strategic

in this position and how your

initiatives:

background and experience

Intercomp recently underwent

have prepared you for it?

a branding exercise. Can you

Market Expansion: Identify

share the driving forces behind

and capitalise on new market

Thank you for the warm

this rebranding effort, and

opportunities, domestically and

congratulations! As the newly

what do you believe are the

internationally, by conducting

appointed chief sales officer at

key elements that will help

comprehensive market research

Intercomp Pro, I am thrilled to

the company stand out in the

and establishing strategic

take on this pivotal role. I will be

competitive market?

partnerships to facilitate market

responsible for shaping the overall

entry.

sales strategy, setting ambitious

Intercomp Pro, in its recent

targets, and ensuring alignment

branding endeavour, embarked on

Customer-Centric Approach:

with the company’s vision. I

a journey that extends beyond a

Prioritise understanding our

will focus on driving revenue

mere moment of transformation.

customers’ evolving needs and

growth, expanding market

Successful brand revitalisation

preferences through regular

share, and fostering long-term

is not a sprint; it’s a marathon

feedback mechanisms and data

client relationships. Together

of strategic, creative, and

analysis, enabling us to tailor our

with my team, we will identify

operational decisions. Let’s

new opportunities and secure

delve into the driving forces

decisions to enhance market

strategic partnerships. Retaining

behind this rebranding effort and

share, revenue, and profitability.

existing clients is equally vital,

the key elements that will set

This long-term perspective

Product Diversification: Work

and I’ll work closely with my team

Intercomp Pro apart in the fiercely

ensured sustained success.

closely with the product

to ensure exceptional service

competitive market. Intercomp

delivery.

Pro recognised the need to

As the head of business sales,

new and enhanced offerings that

transform the company structure

what is your vision for the

align with market demands and

After starting my profession

to accommodate technological

future of Intercomp? How do

technological advancements,

working for various companies,

advancements and evolving

you align your sales strategies

catering to a broader customer

my career evolved into business

consumer behaviours. The heart

with the broader company goals

base and solidifying our position

development and sales

of any brand lies in its connection

and long-term objectives?

as an industry innovator.

enablement. I also worked with

with consumers. Intercomp Pro

Microsoft, helping business

sought to create emotional bonds

As the head of business sales at

Sales Team Empowerment: Invest

customers locally with their

by delivering exceptional value,

Intercomp Pro, my vision for the

in the training and development

digital needs. I love working with

personalised experiences, and

company’s future is centred on

of our sales team, equipping

customers and guiding them on

meaningful interactions. This love

sustainable growth, customer-

them with the necessary skills

how to use today’s technology

for the brand would translate into

centric innovation, and global

and resources to effectively

to achieve their objectives. I do

loyalty and advocacy. Ultimately,

market expansion.

communicate the value of our

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solutions to meet their specific requirements effectively.

development team to introduce

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products and build long-term

that not only imparts in-depth

access new markets and expand

for the core values and principles

relationships with clients.

knowledge of our evolving service

our service portfolio to cater to a

that have contributed to

offerings but also equips the

broader client base.

the company’s success. By integrating these foundational

Strategic Alliances: Forge

sales team with the necessary

partnerships with complementary

skills to navigate complex client

Customer-Centric Communication

strengths with a forward-

businesses and industry leaders

requirements and effectively

Channels: Implement personalised

thinking approach, we aim to

to enhance our market presence,

communicate the benefits of our

and interactive communication

balance preserving the essence

broaden our reach, and leverage

tailored services.

channels, such as dedicated client

of our legacy and propelling the

portals and regular feedback

company towards innovative

mutual strengths to create a comprehensive and competitive

Market Intelligence Integration:

sessions, to foster open dialogue

horizons. This entails encouraging

value proposition for our

Implement advanced market

with clients. This approach will not

a culture of continuous innovation

customers.

intelligence tools and processes

only strengthen our relationships

that builds upon our traditional

to give the team real-time

with customers but also enable

expertise while embracing

Sustainable Growth: Emphasise

insights into emerging industry

us to swiftly adapt our services

modern technologies and

sustainable and ethical business

trends, customer preferences,

to meet their evolving needs and

methodologies that align with our

practises throughout the sales

and competitive landscapes.

expectations.

core competencies. Additionally,

process, fostering long-term

This data-driven approach will

relationships built on trust,

enable our team to make informed

We hope to keep the Intercomp

partnerships and collaborations,

transparency, and reliability.

decisions and swiftly adapt to

Pro business sales team flexible,

enabling us to combine our

I intend to foster strategic

market changes.

We aim to achieve sustainable growth while maintaining our

Dynamic Service Customization:

commitment to delivering

Foster a culture of dynamic

exceptional customer value. This

service customisation by

approach will not only align our

encouraging the sales team

sales efforts with the broader

to collaborate closely with

company goals but also position

clients, understand their unique

Intercomp Pro as a trusted and

challenges, and tailor our services

forward-thinking industry leader

to meet their specific needs.

in the global marketplace.

This client-centric approach will

Innovation isn’t just a buzzword; it’s the heartbeat of Intercomp Pro’s sales strategy.

reinforce our reputation as a In a rapidly evolving technology

provider of flexible and adaptable

landscape, what strategies

solutions.

and initiatives do you plan to implement to ensure

Rapid Prototyping and Innovation:

quick to respond to changes in

established strengths with the

Intercomp’s business sales

Establish a dedicated cross-

the market and agile. This will help

insights and resources of other

team remains agile and

functional team focused on rapid

us continue to grow and solidify

industry leaders. Through this

adaptable to market changes

prototyping and innovation. This

our reputation as a reliable source

integrative approach, we strive

while driving growth?

enables us to swiftly develop

of customised and cutting-

to not only uphold our esteemed

and test new service concepts

edge services in the constantly

reputation but also solidify

In the face of a rapidly evolving

in response to market demands.

changing world of technology.

Intercomp Pro’s position as a

technology landscape, ensuring

This approach will ensure we stay

the agility and adaptability

at the forefront of technological

Intercomp has a rich history

way in shaping the future of our

of Intercomp Pro’s business

advancements, offering cutting-

and reputation in the industry.

industry.

sales team is critical to driving

edge solutions that address

Can you share some insights

sustainable growth and

emerging industry challenges.

into how you plan to leverage

In wrapping up our conversation,

the company’s strengths and

Caruana leaves us with a vision

Strategic Partnerships and

heritage while innovating for

of dynamic growth, customer-

We will focus on implementing

Alliances: Forge strategic

the future in your new role?

centric innovation, and a

the following tailored strategies

partnerships and alliances with

and initiatives, emphasising the

key technology providers and

Indeed, in my current role, my

forefront of the ever-evolving

unique value proposition of our

industry leaders, leveraging

strategy involves harnessing

tech landscape. His blend of

services:

their expertise and resources to

the valuable heritage and robust

experience, strategic foresight,

enhance our service offerings

reputation that Intercomp Pro has

and passion for customer

Continuous Training and

and remain at the forefront of

cultivated within the industry. I

success promises an exciting

Development: Establish a

technological innovation. These

plan to leverage this rich history

journey for Intercomp Pro in the

comprehensive training program

partnerships will enable us to

by fostering a deep appreciation

days ahead.

maintaining a competitive edge.

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pioneering force, leading the

commitment to staying at the

THE BUSINESS EDITION

55

BRAND

IS YOUR MOST POWERFUL ASSET in the wrong hands?

Branding encompasses an organisation’s core values, behaviour, and customer experience.

Ed Muscat Azzopardi emphasises company leadership's crucial role in shaping and nurturing a brand that resonates with employees and customers, highlighting its vital contribution to sustainable growth and brand equity.

We inherit the wisdom of those who came before us. It is then up to us to

However, a brand is much more than a visual expression. Brand is

challenge this and add to it, intending to leave something more valuable

behavioural. It is the total of the behaviours of every individual who

for the ones who will take on our wisdom.

works for the company (or product). That, along with the product/ service itself, makes up the totality of the brand.

This does not happen half as often as it should.

While this might sound like a very inclusive definition - it is. In reality, Take the word ‘brand’ itself. We have inherited this word from the farmer,

brand also resides in the hearts and minds of its audiences. It is what

who thought that using a red-hot piece of metal to mark his cattle was a

‘they say’ it is. They perceive the brand as a result of their experiences

good way of keeping tabs on his property. It was a barbaric practice, but

with the product and the humans they interact with along the journey

we carry on using the word regardless.

from demand to purchase to post-purchase.

It is also a slightly useless word. To some, it means ‘logo’. To others, it

Brand has an aspect that is handled by marketing, but it is a small part

means ‘the very fundamentals upon which a company’s reputation is

of what the term represents. We can trace all the elements a brand

built’. Until we have a single definition that we can all abide by, it remains

comprises and determine which parts should reside with the marketing

too broad for comfort.

people.

Brand is not marketing

It starts in the boardroom

Today, we will start with another myth about branding - that the

Working from the inside out, the brand makes its way to marketing

responsibility for the brand resides with the marketing department. In

this way:

the beginning, brand was lumped with marketing because it included

•

and trickles outwards from there.

weird enough to enjoy that stuff - and there it stuck. In time, the words ‘brand’ and ‘logo’ were used interchangeably.

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Every team member is motivated by the reason for the company’s existence - brand purpose. Brand purpose starts in the boardroom

a logo and a colour palette - traditionally, the marketing people were •

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Every team member behaves according to the brand’s core values or

MONEY

BRAND

principles. This, too, must be lived by the board and executive branch

a brand and a model that I felt would be the best ‘fit’, as it were, for

of the company.

the purpose. She said she’d never purchase a shoe of that brand

•

Products and services are designed to fulfil the brand’s purpose.

locally and that she either orders them online or buys the brand

•

Products and services are aligned with the brand’s values.

when she’s abroad. I was intrigued and asked for a detailed reason

•

Communication is designed and produced by the brand’s values,

why. It turned out that the brand is represented by a chain of sports

personality, and tone of voice.

stores that ran a body shaming campaign about five years ago. In

Communication is finally given the brand identity treatment - its

her memory, the campaign said something like, ‘Your ass looks big in

colours, logo, fonts, and all other aspects of its expression are

those shorts’.

•

prepared by the brand guidelines.

This account shows that clients view marketing as the final Using this journey from the boardroom to the billboard, we can see

expression of how a company thinks and behaves. The campaign tells

that it’s the last two steps in the journey that are the responsibility of

us that the boardroom is okay with this kind of thinking.

the marketers. If your boardroom does not get brand, there is a strong chance that your organisation is not growing, at least at the pace of the

Someone thought about this campaign; someone approved the

market. In many cases, this is equivalent to a slow slide backwards.

production and the budget; someone saw it in the wild and was okay with it. The company needed to be aligned with the values of its

The boardroom is also solely responsible for the growth of brand equity.

audience. And now, to win a client back, it has to work at least twice

Trying to pawn this enormous burden onto the marketing department is

as hard to change their mind.

tantamount to abdication.

Truth be told I was chatting with a friend, and running shoes came up. I suggested

The brand starts in the boardroom. It is an honest manifestation

Brand is behavioural.

of the core beliefs of the organisation’s leadership. Whether the executive arm of the company is aware of it or not, they are responsible for how every person at every touchpoint conveys the spirit of the organisation. It is indeed a significant burden, and the biggest brands in the world are the ones where this awareness drives every decision.

From the boardroom, the principles and the ethos work steadily and deliberately in marketing. The reverse direction is a recipe for eventual dilution of brand equity, which is a best-case scenario.

At worst, it can spell disaster for a brand - and when it does spell disaster, reparations will, once again, start in the boardroom and then make their way to marketing.

We should indeed update the wisdom we’ve inherited. The sooner we shift the brand’s responsibility from anywhere in the company onto the boardroom table, the sooner that organisation can see a steady and sustainable growth in brand equity.

And we know that brand equity counts. While it falls under the appalling misnomer of ‘intangibles’ in accounting terms, it accounts for the most significant proportion of the value of the most influential companies on earth.

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THE BUSINESS EDITION

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DOUBLE Photographer

Model

Stylist

Marvin Grech

Marcus @ Models M

Peter Carbonaro

[All items by Armani Exchange at Tigné Point and Mercury Towers. Shot on location around the Ballutta promenade and Balluta Buildings.]

DENIM MONEY

THE BUSINESS EDITION

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[All items by Armani Exchange at Tigné Point and Mercury Towers.]

[All items by Armani Exchange at Tigné Point and Mercury Towers.]

FA SHION

AUTUMN APPAREL MONEY welcomes the new season with a show of delectable fashion pieces.

[All items available from mrporter.com, unless otherwise specified]

BRUNELLO CUCINELLI

ANDY WARHOL

Winter Escape full-grain

1976 signed 2-dollar bill

leather duffle bag

€12,000 / elcol.com

€4,500

BALMAIN Logo-jacquard padded canvas hooded jacket €3,590

VEJA V-90 suede and leather sneakers €165

FA SHION

GUCCI (Must-have) Horsebit 1953 leather loafers €750

CELINE HOMME

BMW

Slim-fit cashmere

Bucket hat arc

rollneck sweater

€84 / info@mml.mizzi.com.mt

€1,290 BMW Motorsport car graphic Puma t-shirt €75 / info@mml.mizzi.com.mt

POLO RALPH LAUREN Embroidered intarsia cotton and cashmereblend sweater €550

DRKSHDW

BY RICK OWENS Mastodon slim-fit tapered cotton-jersey sweatpants

ROLEX

€655

Datejust, Oyster, 31 mm, Oystersteel and white gold €10,050 / elcol.com

NEWS

Malta’s tech leaders reborn and expand: The future of tech in Malta, Saudi Arabia, and beyond 9H Digital heralds a new era in Maltese tech

Malta’s first WooExperts and HubSpot partner,

and digital marketing, symbolising rebirth and

ensuring quality and streamlined solutions.

collective growth. In early 2023, executive

CEO Benji Borg expressed pride in sharing

directors James Abela, Zak Borg, Matthew

this milestone and rebirth, representing the

Sammut, and Benji Borg, now CEO of the 9H

culmination of the company’s 15-year journey,

Group of Companies, took the helm at 9H

emphasising a team of over 70 dedicated

Capital plc (formerly Anchovy Studios plc and

individuals committed to innovation and client

NIU). The board welcomed Joseph Sultana as

success.

non-executive director and chairman, along with non-executive directors Chris Mifsud and

Notably, 9H Digital expanded its footprint

Etienne Borg Cardona.

in Saudi Arabia by acquiring a 50% stake in The Studio Upstairs, now rebranded as Tayb

9H Digital, operating under the finance holding

and led by founder and CEO Tala Saleh. This

company 9H Capital plc, has emerged as

strategic move amplifies the company’s global

the premier digital solutions agency. As an

influence and underscores its commitment to

ISO-certified entity, it is distinguished as

pioneering digital excellence.

Mercury’s shopping district opens Mercury, a groundbreaking retail destination,

The shopping district operates from Monday

opened its doors on November 10, 2023,

to Sunday, 10:00 a.m. to 10:00 p.m., offering

introducing a unique shopping experience in

complimentary parking with purchases over

St Julian’s with over 80 fashion and lifestyle

€50. Mercury boasts a diverse selection of

brands. The contemporary design-led spaces

fashion, including exclusive limited-edition

create an immersive atmosphere, and the

drops and capsule collections. The food and

central square, spanning 4,000 square metres,

beverage options include Malta’s first Illy café,

becomes the vibrant heart of St Julian’s,

Italo salumeria, Café Pascucci, Amorino ice

featuring artistic installations and providing a

cream parlour, and Peperino, a Neapolitan-

year-round platform for performances.

style pizzeria.

As Mercury opens, it sets the stage for future developments, evolving into a downtown oasis with entertainment for all ages. It features 17 bars, restaurants, bistros, and the luxury ME Malta by Melia Hotel. Completing the final phase establishes Mercury as Malta’s premier lifestyle destination, revitalising Paceville as an inclusive hub for all generations.

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