MONEY ISSUE 62 by BE.COMMUNICATIONS

B US IN E SS

L IFESTY L E

D ESIGN

TH E B US I N ESS EDI T I ON I SS U E 6 2

COVER STO RY

Dario Silvestri

SETTING GOALS

16 Hon. Byron Camilleri

10 Sarah Woods & Mariella Camilleri

THE NEED FOR CHANGE

ON THE FRONT LINE

41 Emanuel Delia

COMING OUT INTO THE HEAT

Happy Festivities REGULAR SHOPPING HOURS MON - WED 08:00 to 20:00

THU - FRI 08:00 to 21:00

SAT 07:30 to 20:00

SUN 09:00 to 14:00

CHRISTMAS EXTENDED SHOPPING HOURS SUNDAYS (DEC) 08:00 to 18:00

TUE 8TH DEC 08:00 to 20:00

THU 24TH DEC 08:00 to 18:00

FRI 25TH DEC CLOSED

THU 31ST DEC 08:00 to 18:00

FRI 1ST JAN CLOSED

THU 2ND JAN 08:00 to 20:00

F R E E

Psaila Street, Santa Venera t. 2148 0807

C U S T O M E R

PA R K I N G

Gorg Borg Olivier Street, St Julian’s t. 2137 8520

www.myparktowers.com

Spinola Park, St Julian’s t. 2138 1055

4 · MONEY

Editor's note — We’re approaching the end of 2020— the annus horribilus, as most would describe it—and we’re still neck-deep in Covid-19 conversations and grumbles. It seems that there may be a sliver of light and hope on the horizon, however, with news of a vaccine making the headlines. A vaccine would help to alleviate many of the woes and worries that plague the world on this issue; however, one needs to keep in mind that the virus itself will still be around—even on the 1st January 2021. It’s only been 18 years since polio was ‘eradicated’ in Europe; in June 2002, all 53 countries in the WHO European Region were certified polio-free. Yet Africa is still fighting outbreaks of the virus. Covid-19 is at the centre of several articles in this issue, mainly because there wasn’t any sector that wasn’t affected by it. Most industries were negatively affected due to lockdowns, increased pressure on staff, and the decrease in people’s spending power. Despite that, anyone with an entrepreneurial spirit and a knack for crafting masks saw a gap in the market, and soon masks of varied designs were available to purchase—online, of course. The pharmaceutical industry also saw a spike in sales, especially with any products related

ISSUE 62

WELCOME

to sanitisation, which also helped to spin the idea that this virus was purposely leaked to boost the pharma sector. Whether one subscribes to this idea or not, there indeed were profits to be made.

COVER Dario Silvestri Setting goals Read the full story on page 14

Unfortunately, this wasn’t the case for the Arts sector with theatres and other places of entertainment having to close for much of the year—and then be allowed to open with socially distanced provisions in place. Fewer seats equate to less income. We’ve taken a more in-depth look at the situation in Malta and spoken to the people affected to understand what innovative measures they’re putting in place to keep their sector alive. Unlike Covid-19 which hit suddenly, women’s role in society is a talking point that has been around forever – and we’re still discussing it, especially women in business. The Gender Equality Index within the EU ranks Malta among one of the most improved countries with an increase of 10 points since 2010. This is a positive factor, but there is still more that can be done. Women in business in Malta still face a thick glass ceiling, a gender pay gap, and a general attitude of not being able to live up to their male counterparts. This inequality is also negatively affecting men; is it right that new fathers only get three days of paternal leave? Aren’t they entitled to bond with their child? When fathers are finally given the same leave rights as mothers, then the ‘maternity leave’ taboo mentality will be quashed. It’s not always about increasing benefits for women; equality works both ways. If one gender receives more than the other, inequality exists and that causes strife. The US elections have given the world another male, white president, but, for the first time, a female, black vice presidentelect. This is a win on two counts—gender and race. The women’s movement has come along in leaps and bounds over the years, and one can only hope that society will reach a stage in the near future where research like Gender Equality Indexes won’t be necessary.

CREDITS EDITOR

Anthony P. Bernard anthony@moneymag.me DESIGN

Bloom Creative bloomcreative.com.mt · (+356) 9938 9928 PRINTING

Print It

MONEY is hand-delivered to businesses in Malta, including all managers and directors of the TOP 300 companies; iGaming, yachting and boating businesses, marinas, all 5-star hotels and boutique guesthouses including their business centres, executive lounges and rooms (where allowed), embassies and Maltese embassies abroad (UK, Rome, Brussels and Moscow); all government ministries and entities. For information regarding promotion and advertising: Tel: (+356) 2134 2155 · Email: hello@moneymag.me

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

6 · MONEY

ISSUE 62

CONTENTS

WOMEN IN BUSINESS

THE NEED FOR CHANGE

With 62.5 out of 100 points, Malta ranks 15th in the EU on the Gender Equality Index 2019. Its score is 4.9 points lower than the EU's score. In recent years, women have made significant waves within the workplace, but inequality persists. Gender inequality remains a subject undergoing immense research which creates ongoing debate. Dayna Camilleri Clarke spoke to Sarah Woods, director at SHE: Social Hub Entrepreneurs, and Mariella Camilleri, President of BPW (Valletta) Malta, two leading professional entities for women.

FINANCE

WHERE MALTA SHOULD FOCUS: NOW, NEXT AND BEYOND

Simon Barberi, director and EU advisory services leader at EY Malta, gives a breakdown and analysis of this year’s EY Malta’s Attractiveness Survey.

30 COVER STORY

SETTING GOALS

BUDGET 2021

THE ROAD TO RECOVERY

Although the Government announced various policies, schemes, and strategies during the year, the budget is still seen as a central economic policy document which lays out the action points and work programme for the following fiscal year. JP Fabri discusses the need for Malta’s long-term strategy which will pave the way for a better and futureproof Malta.

Duncan Barry interviews Dario Silvestri, an entrepreneur and performance coach who has set his eyes on Malta and who believes our islands can easily become an education hub—and a College of Sciences project is in the offing from the looks of things.

MAKE OR BREAK

Business expansion is predominately highly dependent on macro-economic conditions, sectoral trends and idiosyncratic factors. However, nowadays more weight is given to other considerations with reputation playing an indispensable role in an ever-evolving competitive market. Jordan Portelli addresses the importance for Malta to regain its trust and reputation.

ECONOMY

C L I M AT E C H A N G E

COMING OUT INTO THE HEAT

Covid-19 brought about a change in more ways than one, but it also left a positive impact on our environment. But as we hope the pandemic fades, climate change is a problem which is here to stay. Emanuel Delia writes.

PROMO

INNOVATING FOR BUSINESS SUCCESS

Businesses run on relationships. We must forge a set of relationships with a host of different companies to run our businesses successfully. In most cases, our businesses depend on a series of moving parts, some of which are out of our control and depend entirely on third parties that we rely on to produce the results we expect, time and time again. Richard Muscat Azzopardi explains.

TOURISM

HOLIDAYS AT HOME

Domestic tourism has helped to a limited extent to fill the gaps left by the COVID-19 ban on international travel. Still, the Central Bank of Malta’s Quarterly Review shows that the decline in inbound tourism was considerable. Read the highlights of the findings.

SECURIT Y

ON THE FRONT LINE

COVID-19 has sent shock waves throughout the entire world, causing disruption to business and the economy—and providing some relief to the environment. Giselle Borg Olivier spoke to Hon. Byron Camilleri, Minister for Home Affairs, National Security and Law Enforcement, about the impact of the pandemic on Malta and the measures which are being taken to safeguard the country.

ARTS

LET'S RECOVER THE ARTS, NOW

The art industry was dealt a severe blow because of the pandemic and it needs to be saved immediately. Veronica Stivala speaks to those in the industry to find out how they have been hit as well as explores options for a muchneeded, immediate recovery plan before it is too late.

S T R AT E G Y

SELLING THROUGH COVID-19

FA S H I O N

THE FINER THINGS IN LIFE

MONEY can’t buy you everything. Actually, it can.

a springboard for local tech companies Tech.mag will be supporting Tech.mt in playing a vital role in taking the profile tech industry to another level, building on the strengths that it already enjoys and serving local tech companies to flourish by supporting their products and services beyond Maltaâ&#x20AC;&#x2122;s shores.

Interested in advertising? hello@bemags.com

READ ONLINE

>> OUT NOW

In association with

10 · MONE Y

ISSUE 62

WOMEN IN BUSINESS

Dayna is a senior speech therapist by day and feature writer by night. When she’s not busy fixing words, she is travelling the world to add to her fridge magnet collection.

THE NEED for CHANGE With 62.5 out of 100 points, Malta ranks 15th in the EU on the Gender Equality Index 2019. Its score is 4.9 points lower than the EU's score. In recent years, women have made significant waves within the workplace, but inequality persists. Gender inequality remains a subject undergoing immense research which creates ongoing debate. Dayna Camilleri Clarke spoke to Sarah Woods, director at SHE: Social Hub Entrepreneurs, and Mariella Camilleri, President of BPW (Valletta) Malta, two leading professional entities for women. Sarah Woods SHE: Social Hub Entrepreneurs

worked our way up to 300 ladies by 2019. With the start of the pandemic in 2020, we shifted our meetups and sessions to a digital platform and are currently developing an exclusive SHE online membership for the community to continue to thrive.

Graduating from the University of Malta with honours in B Communications, Sarah Wood's professional background is rooted in marketing and events, both in Malta and in Dubai. With the launch of SHE Malta, Sarah utilised her experience in marketing and event management to grow a community of women in business, and in November 2018 Sarah was awarded the JCI "Entrepreneurial Accomplishment" for SHE Malta. Sarah is currently sole acting Director of SHE: Social Hub Entrepreneurs.

The SHE online membership will be yearly. It will involve a series of workshop sessions, inspirational talks, pitch days, expert-led forums and monthly discussion groups led by both local and foreign female experts. The plan is to go live via our website www. shemalta.com this December with sessions starting in January 2021; this is an exciting time for SHE and all the community.

D Why are entities such as SHE: Social Hub Entrepreneurs required? S I believe that creating a safe space for like-minded women with shared experiences to network, support and learn from one another is the best way to allow community members to discuss and gain advice without judgement. This then gives women the confidence to go out into the world feeling supported to pursue any initiatives or opportunities that they may have otherwise

D If any, what challenges have you experienced as a woman in business during your overall career? been reluctant or hesitant to do so. D How are you received by the wider public? And do you have many members? S There has been a great response to the SHE community. We started with 50 ladies attending our event back in 2017 and have

S I’ve had the experience of being paid less based on my gender alone. This was kept very quiet and only came to my attention after I had left my position at the time. D Do you think Malta has an issue with gender misbalance within the workplace?

THE BUSINESS EDITION

S Malta seems to be lagging behind most other countries in Europe when it comes to women in positions of economic power, according to the European Institute for Gender Equality. Gender inequalities are most pronounced in the domain of power where Malta ranks 22nd out of 27 EU member states. Other areas that need improvement according to findings by the EIGE include; the gender gap in employment, where such a gap in Malta remains the largest in the EU and is much higher among couples with children (39%) and also the fact that gender inequalities in earnings persist, with women earning 15 % less than men in Malta. D What obstacles do they face? S As you can see, there is still work to be done, and the pandemic has certainly not been in our favour. The main obstacle is the current frame of mind in our society. A cultural paradigm shift must occur before we start to see any improvement. This is not to say that we do not already see signs of such a change, but there is a long road still to cover. This shift will happen gradually over time and accelerating it will be a challenge. D Why is gender balance and having a more diverse workforce important, especially in senior management teams? S For starters, it allows for tapping into a wider pool of talent and a variety of perspectives that can lead to more well-rounded and profitable ideas. Understandably, different groups have varied strengths, so it makes sense to have a more inclusive workforce which will, in turn, have a positive impact on the bottom line. Quite typically, women have a different approach in problem-solving and tend to rely on tact and diplomacy rather than outright force. These attributes are of vital importance in a top decision-making process. D What difference are you as SHE making locally? S We aim to empower women with the tools and the skills they need to be more confident to go out on their own, to get started or to further their careers. We have seen fruitful relationships forming and women evolving thanks to SHE, and this is what drives us.

WOMEN IN BUSINESS

D What one piece of advice would you give any aspiring female business leaders reading this? S Don’t underestimate the power of networking with other women in business. There’s something to be said about getting involved with other like-minded women who are building businesses of their own. Apart from feeling supported by liaising with women in similar situations, you may find new

MONEY · 11

Mariella served in many C-Level positions including CFO/COO of New Century Press LLC, CFO / CAO of Mediabound LLC and CFO / COO of Infinity Publishing Group. For many years, she formed part of an Investment Banking Team where they packaged companies for capital investment/sale/acquisition. In October 2013 Mariella moved back to Malta, and in June 2014 she joined BPW (Valletta) Malta. In January 2019 Mariella was elected President of BPW (Valletta) Malta. D For those not in the know, what is BPW?

WOMEN HAVE A DIFFERENT APPROACH IN PROBLEM-SOLVING AND TEND TO RELY ON TACT AND DIPLOMACY RATHER THAN OUTRIGHT FORCE clients, new business opportunities, sound advice, referrals, investors or just someone to brainstorm with. shemalta.com

Mariella Camilleri BPW (Valletta) Malta Mariella Camilleri started her career with Mid-Med Bank in 1976 and eight years later moved to New York City where she joined Banco di Napoli where eventually she was promoted to vice president relationship officer for Italian Multinationals. In 1997 she joined International Marketing Group as CFO/ general manager of the Italian company's global operations (New York, Brazil, Japan, Hong Kong and a production facility in China).

M BPW was formed on August 26, 1930, and is one of the oldest international organisations celebrating 90 years of history. The International Federation of Business and Professional Women (BPW International) has become one of the most influential global networks of business and professional women with affiliates in 100 countries in five continents. BPW (Valletta) Malta celebrated its 10th anniversary in 2020. During these 10 years, we have consistently empowered business and professional women of today and tomorrow, through our numerous conferences and educational events including our Careers' Day where form 4 students (mostly girls) attend to meet and speak with all-female mentors from every sector and career level allowing the students to aspire for a career of their dreams. →

12 · MONEY

D Why are entities such as BPW required? M Entities, especially those like BPW who enjoys consultative status with the UN and the EU Parliament, are needed because they are influential in the formation of the legislature which empowers women and creates strides towards achieving equality both in their everyday life as well as in their careers. We create awareness both for members and non-members alike as to what is changing that can improve their standing in society as well as what is going on, or what may be holding them back.

ISSUE 62

WOMEN IN BUSINESS

M I believe Malta has an issue with gender imbalance, and this needs to be addressed. We remain under-represented in decision making roles1, and we definitely need more women to sit around the table and to have a voice. In a recent study published by EIGE, the average percentage of women on corporate boards of listed companies stood at 29.2% for EU Member states while in Malta, it stood at 11%2. We need to start making a change by electing more female representation in Parliament, where we currently have 14.9% as opposed to the European average of 31.7% 3.

D Why is gender balance and having a more diverse workforce is important, especially in senior management teams? M When a company employs a more diverse workforce, they create an environment of understanding their customer base. Women are the higher number of consumers, so understanding and relating to your customer base is crucial to a sustainable business. It has also been evidenced, that when Women hold the position of CEO, the company's value grows by as much as 20% when compared to their male counterparts.

D What obstacles do they face? D How are you received by the wider public? And do you have many members? M I believe that for an organisation which is relatively young (at least here in Malta) we have managed to put ourselves quite at the forefront of women's empowerment. During my predecessors' presidency and now during mine, we have managed to take a seat at the table. We are one of the voices (NGO's) who form part of the CCWR and of Empower. This has allowed us to be heard in the name of our 50+ members and other women, who frequently attend our events here in Malta. We are recognised that we have a voice and an opinion that must be heard and included in the relevant discussions. We strive to give women (members and not) information that helps them achieve their goals. D If any, what challenges have you experienced as a woman in business during your overall career? M Like many other women with a career, I have had to work in a male-dominated business environment. It was never easy being the first female relationship officer in New York, where I would attend bankers' meetings, and I was the only woman in a sea of men. It was never easy discussing multinational business with powerful men who were brought up to believe that business, should be left to the men. But I made it a point to make sure that I never felt less than equal to each one of my counterparts. It may have taken more work, but in the end, I was accepted as their equal. D Do you think Malta has an issue with gender imbalance within the workplace?

D What difference are you making locally? M There are two main obstacles that I see here in Malta; one is penetrating the old boys club. We need regulations that limit terms on boards, whether they are public or parastatal

…WHEN WOMEN HOLD THE POSITION OF CEO, THE COMPANY'S VALUE GROWS BY AS MUCH AS 20% WHEN COMPARED TO THEIR MALE COUNTERPARTS entities, I am not much in favour of quotas but, if it helps get us to a point where more capable women are considered to fill these roles just like men are, then I'm all for it. The second obstacle is us. We tend to hesitate to put our names forward, and we must grab every opportunity available and take it. We need to establish a support system that allows us to relinquish this hesitation.

M I believe that one of the main differences that we have brought locally is our connectivity to a global force of powerful women, who have a say and impact in the international standards set by the UN and EU Parliament when it comes to empowering women. We are continually striving to bring visibility into local regulations, benefits and issues that directly affect women and girls for today and tomorrow's situations. D What one piece of advice would you give any aspiring female business leaders reading this? M The one piece of advice that I would give any aspiring leader is to get a mentor. No matter what level you are in your career, get someone whom you can talk through situations with and help you get to the next level. We all have it within us to get to where we want to be, but our self-doubt and hesitation could derail our journey. A mentor helps you discover the best path to your pinnacle. bpwmalta.com

https://eige.europa.eu/news/women-decisionmaking-why-it-matters

2 https://eige.europa.eu/gender-statistics/dgs/ indicator/wmidm_bus_bus__wmid_comp_compex/bar/ year:2020-B1/geo:EU28,EU27_2020,IPA,EEA,BE,BG,CZ, DK,DE,EE,IE,EL,ES,FR,HR,IT,CY,LV,LT,LU,HU,MT,NL,AT,PL,PT, RO,SI,SK,FI,SE,UK,IS,NO,ME,MK,RS,TR,BA/EGROUP:COMP/ sex:M,W/UNIT:PC/POSITION:EXEC/NACE:TOT

3 https://ec.europa.eu/eurostat/databrowser/view/ sdg_05_50/default/table?lang=en

IMPROVING AML COMPLIANCE WITH DYNAMIC CUSTOMER RISK PROFILING Flushing out the money launderers with better customer risk-rating models. Advanced risk-rating dramatically improves detection by applying machine learning and statistical analysis to better-quality data and dynamic customer profiles.

FEATURE HIGHLIGHTS Utilize a dynamic risk-scoring engine for customer risk profiling Apply controls on customers and their transaction activities based on their risk levels Design specific scenarios to monitor transactional activities of high-risk customers Trigger alerts on deviations or breaching of risk score thresholds Generate alerts on suspicious transactions that are risk-scored higher if the customer involved is a higher risk one Leverage machine learning algorithms for incorporating dynamic customer behavior data into the risk calculation engine Design an automated workflow for monitoring change of customer risk ratings Trigger event driven review for dynamic downgrade of customer risk rating Auto escalate and alert when a customer risk category moves from low or medium to high during dynamic risk scoring Update customer profile based on change in risk rating Refresh customer data residing in other systems for changed profiles in real-time

Learn More. Get in touch with us today. Drop us an email on sales@computimesoftware.com Give us a call on +356 2149 0700 or visit our website on comply-radar.com

14 · M O N E Y

COVER STORY

ISSUE 62

SETTING GOALS

DB Can you give us a brief about yourself, your line as a performance coach and any business ventures of yours? DS I am involved in developing innovative models in academic training, developing investments in this sector and health services. As a coach, I work with CEOs of large companies and multinationals, and with the top players in Serie A and Premier League football, as well as with other elite athletes. DB What is performance coaching? And which are the most successful stories you have been behind?

DS Performance coaching is a discipline, or better, a tool to understand how each of us functions, what are our goals and how to make the best use of our resources by unlocking the incredible potential that is in each of us. As this potential is often not used as much as it should. These could be outdated fears, dilemmas and predicaments, like moments in the past when we find the ability to be very critical of ourselves and turning them into real and concrete opportunities through significant decisions. There are many stories I could share but I need to respect the privacy and confidentiality of my clients. However, one client I think Malta could relate

to is Giorgio Chiellini, Juventus’s captain, who I meet from time to time. DB What drove you to come to Malta and try to push the island to become an education hub? DS Malta is a place with a great history, and I am sure it has a great future ahead. Thanks to its multicultural and geographical position, it is a strategic location that has grown its appeal to an international audience. For many characteristics and for the willingness to innovate, I am sure that it will become an important hub for international academic

THE BUSINESS EDITION

education and conferences. It will be a place where innovation processes will start and where thousands of people will converge in the coming years. DB How do you intend to prepare students for evolving markets, and which markets are you targeting in your training programme? Can you tell us more about your concept? DS Too often in the world, it happens that academic education is far removed from practical training, from what is necessary for a world where changes are accelerating and markets are developing trends in which it is required to be prepared. However, this preparation must be able to meet the highest academic requirements with the most practical ones and close to market needs. For this reason, we will develop degree programmes that prepare students effectively and solidly, giving them knowledge, concrete skills and sharing values with them. DB Are you working in conjunction with government or a local education/sport institution? DS Since I've landed in Malta, I have found a very dynamic environment and have gradually got to know this country that I like and to which I am always excited to return. The government institutions have been attentive and supportive. In fact, I must thank them for welcoming me to this beautiful island and for the support they have shown me since. It has made a real difference in many ways. DB Is it your intention to attract international students to come to Malta to participate in your training programme?

COVER STORY

DS Of course, the development of the project foresees Malta as a centre of many activities where international students will converge. An important aspect will also be the digital and blended education, that will allow those who have not yet achieved their full academic qualifications, due to work commitments, to reach the necessary skills and preparation, and by preparing them to work in a rapidly evolving market and their need for functional adaptation. DB Can you tell us about the ASOMI College of Sciences you founded? DS ASOMI College of Science (ACS) is a licensed higher education institution founded in Malta and born from experience gained by my group internationally. ACS aims to develop a wide range of educational fields in

My team and I are working with motivation and perseverance to have the project released to the public in spring 2021

MONEY · 15

Duncan has over two decades of experience in feature writing and journalism. He is also a freelance writer. In 2012, he was the national winner of the EU Health Prize for Journalists.

specific niche markets. Our goal is not only to promote innovation within the educational sector but to provide practical solutions to areas of the market, developing the concept of global education. DB Last October you received a prize from the Chamber of Deputies in Italy. Can you tell us what this prize is all about? DS I spent most of my professional career developing an international network, taking and building opportunities. The award I received at the Chamber of Deputies (Camera dei Deputati) was recognition from Italian institutions for the work done in the field of innovation and development of the concept of "change" as an opportunity and not as a difficulty. I wrote a book on this subject, "The Power of Change", which has become a bestseller in Italy and will soon be launched on the international market. DB When will official information on training programmes be released to the public? DS My team and I are working with motivation and perseverance to have the project released to the public in spring 2021. We are enthusiastic about the work we have undertaken, the future opportunities as well as the incredible collaborators we have had the chance to work with and for the concrete support of the institutions. I am sure we are writing the first chapter of a new book together.

About Dario Silvestri — Born in Parma, Italy, and has lived for several years in the UK and Scandinavia, Dario founded a group of prominent companies, developing meaningful collaborations and building innovative models, which have allowed him to efficiently achieve results of continuous growth for the past 15 years. Among his successful businesses, international academic education is one of the most distinguished of the lot. Dario shares and provides his knowledge and the most effective tools to enable thousands to change their lives by helping them to achieve their own goals. He works in the field of professional sports with elite players, dominant athletes, and entrepreneurs who daily support the development of performance and results. He worked with top players from the Italian Serie A, the English Premier League and elite athletes of other disciplines. Besides, he coaches top company CEOs, many of whom are featured in Forbes. Dario is the author of the best-selling book ‘The Power of Change’ (Il Potere del Cambimento) and ‘Prepare your Mind for Success’ (Prepara la tua Mente per il Successo). Dario’s headquarters are in Turin, and his work is mainly based in Europe and the US.

16 · MONE Y

ISSUE 62

SECURIT Y

Giselle is a marketing professional, and independent writer and proofreader. She runs Content for Success.

ON THE FRONT LINE COVID-19 has sent shock waves throughout the entire world, causing disruption to business and the economy—and providing some relief to the environment. Giselle Borg Olivier spoke to Hon. Byron Camilleri, Minister for Home Affairs, National Security and Law Enforcement, about the impact of the pandemic on Malta and the measures which are being taken to safeguard the country.

G Has COVID-19 affected the country’s security on a national level? Do you think that the opening of the airport and port in July put the island at a greater risk of the virus? B Governments around the world are currently dealing with the repercussions of a global pandemic which has forced countries to adapt to a new kind of normal. This ‘new normal’ has introduced different physical and online realities which demand

THE BUSINESS EDITION

the reconceptualisation of national security. To illustrate, due to lockdowns happening all over the globe, people are no longer free to enter physical spaces and are instead confined to online spaces. COVID-19 has further emphasised the critical role cybersecurity plays in today’s national security. Therefore, law enforcement must make a more significant effort to respond to the realities of the Coronavirus whilst also managing to deal with its usual workload.

SECURIT Y

Besides, one of our primary concerns was ensuring that law enforcement had the necessary contingency plans in place to keep working effectively in case many officers get infected. For this reason, we made sure that all disciplined forces have a contingency plan that allowed them to be well-prepared for any eventuality that might crop up. As a country, we cannot remain sealed off from the rest of the world. The opening of the airport, with strict protocols, signalled the

M O N E Y · 17

beginning of a new phase. We must adapt to this new reality and always remain vigilant. G What is being done to safeguard the country in terms of COVID-19? How many people are currently working on ensuring that the directives are being followed? B Law enforcement officials are working to enforce the protocols issued by the health authorities. From police officers to community officials, these inspections →

18 · MONEY

SECURIT Y

ISSUE 62

As Minister for Home Affairs, I have faith in the AFM’s internal procedures. G The migrant situation has escalated in terms of seriousness due to the virus, and quarantine on boats has been proposed as a safety measure. What measures are being taken to ensure that their human rights are safeguarded while ensuring safety?

have become part of their daily routine. We must keep in mind that officers are human too and are not immune to the virus. Nevertheless, law enforcement is not a private company which can shut down operations if several employees test positive for the virus. On the contrary, law enforcement must keep working and deal with crime alongside its efforts to combat the spread of the virus. Therefore, my appeal to readers is to do their part as well. Rest assured that as a government, our main objective is not to fine citizens; therefore, I encourage everyone to play their part and help keep each other safe.

lives, and without their input, the situation could have been fatal. They have saved thousands of lives over the years and work around the clock to protect the country.

G Earlier this year, the AFM came under a lot of scrutiny due to serious allegations of substance abuse during a time when the world is facing a pandemic. How can people trust that the AFM is working for the best intentions of the country? B I believe that the AFM has always made our country proud.

COVID-19: WE MUST TAKE THIS MOMENT AS AN OPPORTUNITY TO RE-INVENT OURSELVES AND CHANGE CERTAIN PRACTICES WHICH CAN IMPROVE OUR WORLD FOR THE BETTER

Apart from their usual duties, during the pandemic, our soldiers were distributing groceries to those who were most vulnerable. AFM also had a crucial role to play in maintaining security and ensuring that the quarantine regulations at Ħal Far Open Centre were correctly observed. Also, it is not the first time that the AFM was called in to save

As soon as these allegations surfaced, an internal inquiry was immediately launched to verify the circumstances of the case. In a statement, the AFM made it clear that the presence of illicit substances was not found as all tests were negative. When one of the soldiers refused to submit himself to a test, he was immediately discharged from duty.

B It is no secret that Malta has been facing extreme pressure on irregular migration. The problem is even more worrying in the context of our size and population density. As a Government, we are working hard to reduce the number of arrivals whilst also working on the relocation and return of those who are not eligible for asylum. Despite this, there would always be cases where the choice would be to either save people in Maltese waters or let them drown. In such cases, the government must act following its legal and international obligations. At this stage and if circumstances require so, as a government, we felt there should also be the option of setting up a base on board a ship to manage the situation in the best possible way, including by providing the necessary medical assistance and quarantine facilities to those who are infected by the virus. G Do you believe that there will be benefits for Malta post-COVID-19, and what would they be? B Right now, it’s challenging to think about any benefits related to COVID-19; however, we must always look at the silver lining. As expected, the pandemic will have a global economic impact, and the Maltese government intervened with fiscal measures to try and safeguard people’s jobs. Nevertheless, we must take this moment as an opportunity to re-invent ourselves and change certain practices which can improve our world for the better. For instance, before the outbreak of COVID-19 online meetings were not common practice. Now everyone has come to realise just how effective they can be. If I had to choose one positive element from this bleak situation, it would be that as a Maltese citizen, I have so much to be grateful for. Our healthcare workers, our disciplined forces, our community leaders have once again risen to the occasion and kept us safe. We are forever in their debt.

bloom@bloomcreative.com.mt

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

20 · MONEY

ISSUE 62

ARTS

Veronica is a freelance writer and editor. She won the IGM Award for her work on Ethical and Positive Disability in 2016.

LET’S RECOVER THE ARTS, NOW The art industry was dealt a severe blow because of the pandemic and it needs to be saved immediately. Veronica Stivala speaks to those in the industry to find out how they have been hit as well as explores options for a much-needed, immediate recovery plan before it is too late.

"Any business, be it artistic or not, needs to constantly rethink the way it operates and ride the wave of change. Be it environmental, social, cultural, economical, or a global pandemic, change is inevitable. The pandemic has disrupted the whole value chain of artistic production, and unprecedented measures have been taken globally to address the immediacy of the crisis." The words of Toni Attard, founder and director at Culture Venture, ring true to a worrying situation that is certainly not yet over. He is adamant to point out how while the arts have always responded and activated new ways of engagement, be they digital, physical or hybrid, the current situation

has exposed even further unfavourable conditions for artists and cultural professionals. These include ex precarious employment conditions, dependency on the gig economy (moving from one project to the other) and discrepancies in policies favouring subsidised culture over an entrepreneurial culture. The immediacy requires a significant financial stimulus in an arts recovery plan for all operators and sectors. He does not mince his words in stating that these are exceptional times calling for extraordinary action to save a sector that took decades to build. "We may talk about the needs for innovation, digitalisation and new business models for the arts but when you're in survival mode,

THE BUSINESS EDITION

appetite for risk and innovation is not as motivating as the need to pay your bills at the end of the month." Here, three individuals in the arts industry share their experiences and thoughts on the future.

Artistic management, funding support

MONEY · 21

ARTS

being there meant all interactions with clients had to be held virtually across different time zones. As a cultural strategist, the local cultural context and physical time spent in the country is crucial to gain first-hand knowledge about the task at hand. Culture Venture also created diverse contingency plans for the delivery of cultural management training and adopted a hybrid model shifting between online and face to face training.

been very tough, and the situation remains to be difficult. As pandemic fatigue hits in, there are moments where I find myself reflecting if the business is worth pursuing or not. However, I am determined to emerge from the start-up phase of Culture Venture with more growth opportunities."

The publishing world

Although work-related travel was utterly disrupted, Culture Venture was still present in virtual international conferences—from Tunisia to Iran, during which they shared their research on the impact of COVID 19 on artists in Malta. "We were very proud that this research was also adopted for Menorca and Malaysia," states Attard.

Toni Attard Founder and director, Culture Venture Since Culture Venture has a diverse portfolio of services, it had to adapt very quickly to minimise the impact. New artistic productions were cancelled or postponed indefinitely. The first weeks of March were mainly spent cancelling events and flights. In fact, on the morning when the first restrictions were announced, Culture Venture had just launched a new national creative business competition, which will now take place in 2021. Consultancy work remains the main business activity for Attard, and most clients agreed to shift all work to the virtual space, although this created new challenges. For example, devising strategies and research projects for countries in Asia without ever physically

Any business, be it artistic or not, needs to constantly rethink the way it operates and ride the wave of change

Looking ahead, next year maybe even more challenging for small creative enterprises like Culture Venture since new work, especially on an international level, will take significantly longer to secure. With business plans changing faster than the restrictions themselves, and the same restrictions conditioning how they work and for some, whether they can work or not, plans may be futile. Yet Attard remains determined: "agility, patience and resilience are what I try to keep on mastering to survive. Admittedly, it has

Chris Gruppetta Director of publishing, Merlin Publishers Merlin Publishers are mainly dependent on sales to bookshops and schools. The latter were closed throughout the lockdown, and even now practically all school libraries are closed; also, all schools have had drastically increased COVID-related expenses, so new book purchases have had to understandably take a backseat. While bookshops are now open, Gruppetta understands they are →

22 · MONEY

ARTS

Looking ahead, Gruppetta stresses that "online is here to stay". A positive result of the pandemic for them has been establishing a conversation with customers, recommending books and suggesting reads on various social channels. On another positive note, while eBooks have long been a bête noir for Maltese publishers, Merlin Publishers will finally be launching their eBooks by the end of the year. Of course, however, online is nowhere near bookshop sales in terms of quantity, so, he notes, "we still need bookshops, and we need them to recover".

The performing arts, ticketing company and quiz site struggling, possibly because people are still reluctant to go shopping just for the fun of browsing. Sales are still down dramatically compared to previous years, he notes, adding that, in turn, impacts them because they are reliant on bookshops to sell their books. While the publishers have been hit in terms of the above, they have fared better online. Having luckily revamped their website last year, the publishing house had a fullyequipped platform for online sales. "I'm extremely proud of our small team, that rose to the occasion, and within days we were delivering books all over Malta," comments Gruppetta. Their strong social media presence paid off, and they had several successful online events. They are planning more for this year's online book festival. They also tried to do their bit by distributing free audiobooks and creating—with author Clare Azzopardi—a 10-part Maltese podcast for children called "Xpatapumm!"

Wesley Ellul Serial Founder Wesley Ellul operates and works in, several businesses in the creative industries from online quiz game Quizando, to The Comedy Knights show, TAC Theatre to ticketing company Ticketline. He worked not just at making the industry financially sustainable but making businesses in these sectors a commercial success with growth projections aimed at 20-30%. 2020 was on plan no different. Plans included growing the Comedy Knights brand to cater to more sectors, with two new long-running shows designed to create almost year-round income. They were also planning on increasing the Comedy Knights Junior brand. Estimated losses in revenue are into the hundreds of thousands. With social distancing regulations, live events are not financially feasible. Essential calculations for any producer marks a breakeven around 60% capacity: the

ISSUE 62

maximum audience size is around 20-25%. Their one live event was only possible because they were commissioned and guaranteed the funds by a public cultural operator who didn't need to break even. Other businesses like ticketline.com.mt saw a significant blow with revenues down to 0% since March 2020. This business works with producers and understanding the significant losses they face; they didn't charge clients anything other than direct costs associated with bank charges. "We knew that if we wanted clients down the line, we needed to help these businesses who had faced major setbacks," comments Ellul. Meanwhile, the online quiz game Quizando thrived. It was in its launch period, so it saw a rapid increase in players, with over 25,000 players registered with tiny budgets. Obviously, it lent itself to lockdowns. The serial founder continues to try to thrive. He stresses the importance of a digital move for any arts organisation. The tricky bit is funding it. "The Comedy Knights have invested heavily in this as we see a future in digital arts productions and will be trialling this out with our work," he comments. They have been doing live stream shows for corporate clients who want to entertain their staff. The primary trick is how to monetise said performances. There is still resistance to paying for content online, not just in Malta but around the world. "Ad-supported Video On-demand (AVOD)—is not the strongest model to monetise on until you have a large audience, and sponsors and advertiser monies are tight. Subscription-based platforms could see a future, once the content of quality is created," he explains. On a positive note, Ellul has some very (too early to share) unique plans for this year's Christmas show to help engage audiences using digital mediums. Looking ahead, Ellul notes that one of the central questions which will be raised will be how much it will now cost to watch a live performance. He foresees a drastic increase in the cost of live entertainment and many smaller shows being put in place as well as a rise in mixed dinner/ entertainment events.

24 · MONE Y

ISSUE 62

FINANCE

Simon is director of EU Advisory Services at EY Malta.

Where Malta should focus:

NOW, NEXT AND BEYOND Simon Barberi, director and EU advisory services leader at EY Malta, gives a breakdown and analysis of this year’s EY Malta’s Attractiveness Survey.

The findings from EY Malta’s attractiveness survey – the 16th edition of the annual study conducted among existing FDI companies in Malta – was launched in October with investors sounding a note of caution on Malta’s attractiveness for foreign investment. The research assesses current investors’ sentiments on the overall attractiveness of the island, the impact of the COVID-19 crisis, Malta’s strengths, weaknesses, companies’ plans to retain a presence on the island and suggestions on where the country should focus looking forward. Although most respondents have stated that they find Malta to be an attractive destination for FDI, at 62%, this figure is the lowest the survey has ever registered. The number of investors who said Malta is not attractive now comprises a quarter of total respondents, up from 15% in 2019. Despite the sentiment on Malta’s overall attractiveness declining, 80% of the senior business leaders surveyed expect their company to still be present in Malta in 10 years, the same as 2019, while the number who do not increased by 6%. With COVID-19 dominating the business landscape, respondents were also asked how

Overall attractiveness

84%

79%

Source: all 2014–20 respondents

87% 78%

77%

74%

62%

25% 15%

11%

2014

2015

2016

15%

11%

10%

2017

2018

2019

11%

16%

13%

Yes

2020 No

Don't know

Presence in Malta in 10 years' time

12% Don't know

80%

Yes

attractive Malta would be in a post-COVID-19 world. Almost two-thirds expect the island to be equally attractive, 20% believe it will be less attractive, and 15% said more attractive. When comparing these results with the EY Europe Attractiveness Survey 2020, it seems FDI investors in Malta are more optimistic than their continental counterparts with half stating Europe would be less attractive postCOVID-19.

THE BUSINESS EDITION

Expansion plans in 2020 prior to Covid-19

Attractiveness in a post-Covid-19 world Malta respondents

53%

MONEY · 25

FINANCE

58%

53%

23%

36%

61%

65%

30%

20%

17%

20%

17%

19%

2016

2017

2018

2019

15%

65%

Europe respondents

20%

More attractive

43%

Equally attractive

Less attractive

Leading business sections in the next five years

10% 2020

2020

Business sector

% change 66%

Tourism and leisure Yes

49%

Can't say

56%

iGaming 41%

Aviation

Before COVID, 53% of companies surveyed had plans to expand their operations in Malta over the following year. However, following the outbreak, only two-thirds expected to see them through across this period, while 15% did not, and 19% were unsure. Notwithstanding the tourism-related crisis, respondents still believe tourism and leisure (66%) will be the leading business sector in the next five years. iGaming (56%), formerly first, is now in second place with a slight decline from the 2019 result. Sectors which have seen substantial investment across the last decade scored highly, with respondents selected aviation (41%), ICT and telecommunications (37%), pharmaceuticals and biotechnology (37%) also scoring highly, together with newer focal industries, digital media and games (37%), payments and FinTech (36%) and artificial intelligence (36%). Interestingly, blockchain (25%), which was in third place in 2019, has seen a sharp 25% decline. Real estate, infrastructure and construction (28%) has declined by 13%. FDI Attractiveness Scoreboard Corporate taxation comes out on top of the FDI attractiveness scoreboard yet again. While still favourable, the attractiveness of Malta’s stability of social climate decreased by 11% and is now in third place, with Malta’s telecommunications infrastructure in second place for the first time. On the other end of the scoreboard, the stability and transparency of the political, legal and regulatory environment, which was Malta’s second most attractive →

↑

10%

↓

-2%

↑

ICT and telecommunications

37%

↑

14%

Pharmaceuticals and biotechnology

37%

↑

21%

Digital media and games

37%

↓

-2%

Payments and FinTech

36%

↓

-2%

Artificial intelligence (AI)

36%

↑

11%

32%

Maritime Professional services

29%

↓

-5%

Real estate, infrastructure and construction

28%

↓

-13%

Blockchain

25%

↓

-25%

Other financial services

24%

High technology manufacturing

23%

↑

13%

Logistics

22%

↑

11%

Attractiveness scoreboard: Malta's FDI attractiveness

Corporate taxation

82%

11%

68%

Telecommunications infrastructure

23%

64%

Stability of social climate Potential productivity increase for your company

Flexibility of labour legislation

46%

Labour costs

44%

Level of protection of intellectual property rights

27%

28%

Domestic or regional market Transport and logistics

25%

R&D and innovation environment

24%

Stability and transparency of political, legal and regulatory environment

19%

Neither attractive nor unattractive

10%

40% 28% 21% 25% 34% 31%

3 5

25% 43%

39%

6 6

35%

48%

27%

56%

Local labour skills level

Very attractive and attractive

Source: all 2020 respondents

16% 4

30%

25%

26% 36%

18%

13% 25%

49%

Not attractive and not attractive at all

Not relevant

26 · MONEY

parameter 5 years ago, is now bottom. As in previous years, Malta’s R&D and innovation environment and its transport and logistics infrastructure continued to score poorly. Priorities to remain globally competitive Supporting what many highlighted as one of the main reasons for a decrease in Malta’s overall attractiveness index in 2020, FDI investors ranked a new inclusion, reputation and brand, as the number one priority for Malta to remain globally competitive. Malta’s long-standing priority, education and skills, is now in second place after several years ranking first. Another new inclusion, strengthening institutions, enforcement and monitoring, is in third place. Almost all FDI investors indicated that, as part of its COVID-19 reboot strategy, the Maltese government should prioritise environmentally sustainable practices (94%). View from EY on Malta’s attractiveness for FDI Ronald Attard, EY Malta managing partner, stated that foreign investors have clearly underlined the country’s need to prioritise tangible reforms that lead to increased trust based on good governance. “This year’s findings are crucial as we overcome the short-term COVID-19 challenges and begin our strategic quest to look beyond. Our weaknesses are not set in stone. If reputation and governance deficiencies are robustly addressed, the stability of our political, legal and regulatory environment can once again move up our attractiveness scoreboard.” He highlighted that investors still appreciate Malta’s social fabric, its robust telecoms infrastructure and talent pool and that COVID-19 has stressed that the island may be more connected—digitally—than ever before.

Priorities to remain globally competitive

Reputation and brand

1st

3rd

Develop new economic sectors

Education and skills

2nd

Strengthen institutions, enforcement and monitoring

by the strength of our talent pool, digital infrastructure, innovation, environment, quality of life and social fabric.” Attard went on to outline that COVID-19 has reshaped the global economic landscape, with many companies looking to bring back operations and production closer to home. He suggested that there may be an opportunity for Malta to act as a niche nearshoring hub for western Europe and that Malta should exploit the presence of a strong gaming hub to nurture innovative and an entrepreneurial spirit in other digital spheres, particularly health (MedTech), education (EdTech), e-commerce and digital logistics. At the same time, the blue (marine) economy could be a focal point for research activities, given that we are an island nation.

Infrastructure, transporation and planning

4th

Environmental, social and governance matters

carries out an annual study to provide public and private sector leaders with deeper insights into the thinking of Malta’s younger generations. Even amid a global pandemic, the younger generations are not losing sight of the need to look after the environment we live in. Overdevelopment (59%) and the environment (51%) rank as the first and third biggest challenges for Malta, along with COVID-19 (59%). Both Gen-Z (84%) and Millennials (86%) have indicated that they believe Malta’s environment is becoming worse.

EY Generate Survey In addition to surveying senior leaders of foreign-owned companies in Malta, EY also

There are diverging across both cohorts on whether their financial situation has improved over the last year, with roughly four on ten outlining it has remained the same. While the remaining replies were roughly split between those who said it declined and those who said it improved. Looking forward, while many are hopeful that they will be better off than today in 5 years’ times, a slightly

Financial situation compared to last year

Living better than today in 5 years’ time

30% 31%

He asked: “Is it time to reflect and consider a new economic model? One less based on numbers—not just GDP, which EY first raised two years back, but others too—number of cars, tourists, permits, or property sales. A model that focuses more on well-being and the quality of life of our residents. An economic model where the benefits of an attractive tax system are eclipsed

ISSUE 62

FINANCE

36% 39%

34%

30%

Yes

37%

40%

21% No 21%

Don't know Better

Same

39%

42%

Worse Gen-Z

Millennials

Gen-Z

Millennials

THE BUSINESS EDITION

MONEY · 27

FINANCE

Government's investment priorities

larger percentage of both cohorts are uncertain whether this will be the case.

Pollution and waste management

Gen-Z and Millennials were aligned on the top 3 investment priorities for government; with pollution and waste management topping the list, followed by public education and health spending.

Public education

Health

Gen-Z and Millennials are most worried about the impact of COVID-19 will have on the economy. This is followed by the effects of COVID-19 on their health and their employment, both of which are vital concerns.

Governance Roads and infrastructure

View from EY on Generate

Assistance for those in poverty

Scientific research and innovation

3rd

4th

6th

4th

5th

National security

Digital transformation

Gen-Z

encouraging to see that even as we battle the COVID-19 pandemic, the younger generations place the environment high on their list. Key issues such as overdevelopment dominate

Ronald Attard provided some insights into these results, stating: “It is

Gen-Z and Millennials’ concerns

Concerned by impact on health

Concerned by impact on the economy

3.3 1

3.1 5

3.5 5

Concerned by impact on employment or potential employment 3.3 1

4th

6th

7th

8th

9 th

8th

Millennials

All

their thoughts, and it would be unwise to not listen during this critical juncture. The country and the economy are still adjusting to the new realities brought about by the pandemic. While this may be a difficult time for many, we should take the opportunity to refocus Malta’s agenda, integrating the environment and the economy into a cohesive vision that creates long-term value for Malta’s future generations.”

3.8 5

Level of success in addressing public healthcare crisis 3.0

6th

2.8

2.9 5

Concern rating: 5 is most concerned, 1 is least concerned; Success rating: 5 is very successful; 1 is not very successful

Gen-Z

Malta’s environment is getting...

Millennials

Malta's biggest challenges

3% Better

Overdevelopment

59%

Covid-19

59%

Environment

4% 84%

86%

13% Same

29%

Education

27%

International image

21%

Inequality

17%

54%

51%

31%

Economy

61%

64%

51%

Traffic Worse

58%

52%

29%

33%

28%

31%

32%

21%

15%

27%

19%

14%

10% Gen-Z

Millennials

Gen-Z

Millennials

All

28 · MONEY

ISSUE 62

PROMO

TRIDENT PARK: REDEFINING OFFICE LIFESTYLE

Welcome to a unique office campus which amalgamates historic and contemporary architecture. The redevelopment of this listed industrial building, by internationally renowned Ian Ritchie Architects, has enhanced its heritage characteristics by juxtaposing vintage to modern, industrial to eco-friendliness, in a Situated in the newly emergent and soughtseamless, elegant and transparent manner. From after Central Business District in Mrieħel and having a comprehensive net internal area of a centre of excellent brews to a hub of excellent circa 15,000m2 spread over seven buildings services. This is Trident Park. and offices above the car park. Trident Park is inspired by the traditional character of Maltese palaces, specifically their gardens

THE BUSINESS EDITION

PROMO

MONEY · 29

and internal courtyards, which are reflected in the low-density and low-rise terraced office buildings that are intersected by landscaped gardens, providing the space and offices with an abundance of natural light and fresh air. The balconies on every level further provide the perfect breather for a change of scenery and a garden-fresh feel that is rarely found in other local industrial office spaces. Solar shading installed around the outside areas will not only provide further natural light, but an optimised thermal feel specifically on hot summer days. The cutting-edge building management technology utilised, further offers exceptional energy efficiency, and combined with the unique cooling technology, of using chilled water circulating in the ceiling slab for optimised comfort conditions, make the construction environmentally sustainable and prominently stamped with the BREEAM excellent certificate, the first local development to be certified with such a prestigious honour. However, Trident Park’s architectural and environmentally friendly features are not the only highlight of this state-of-the-art office space. The opportunities and experience it will provide are just as valuable and central to the charm and prestige of this development. The 700-space car park provides the comfort and peace of mind to the day-to-day commute, which is also an added bonus when organising events, workshops or conferences in the 170-seat conference facility, available on-site. Stress-free is a crucial word at Trident, as with the various facilities available on campus, event management becomes a breeze, and everyday office life grows into a bustling community. The restaurant, cafeteria, brewpub and sky bar not only provide a varied option for breakfasts, lunches and dinners but offer an excellent after-work networking opportunity and an alternative option for laid-back oneto-one meetings. Further on-site facilities include the well-equipped gym and wellness area, which promote a healthy lifestyle for mind, body and soul, whilst creating a fitter, happier and more productive workforce. Parents’ needs have also been taken into consideration at Trident as one will find an in-house childcare facility to save valuable

time and further peace of mind. These wellcatered for amenities provide the perfect working environment for business growth and employee wellbeing. A microbrewery, visitor’s attraction and brand store at the adjacent Farsons’ development takes us down memory lane and showcase the history and journey from an iconic brewery to an innovative landmark, which finely wraps Trident’s attractiveness. Whatever business industry you operate in, your company and employees can benefit from working, networking, and being entertained at Trident Park. With a fully serviced amenity portfolio and an innovative green office campus, you will be in the company of some 1,500 like-minded individuals and have the right space to meet and network. The in-house estate management team will see to all your business needs and offer an on-site dedicated team of specialist estate managers and

engineers ensuring continuity, quality of service, including communication on matters of general concern through specifically appointed committee/s with tenant representation. With flexible and inspiring office space, you get to choose the area that best suits your business needs and workforce, and an office that represents your brand and overall business style. The added on-site security, including but not limited to CCTV monitoring, intruder/fire alarm, multiple egress points in case of an emergency and a comprehensive access control system for entry and exit to the car park, offices and amenities, provides the extra safety blanket for any business, be it professional services sector, financial, technological or any other industry. The tech solutions offered at Trident Park are also up to excellent standards and targeted to those businesses seeking quality, prestige and uniqueness, with a setup that consists of world-class ICT Infrastructure and fibre optic technology to ensure the highest connection speeds in all areas and a fully accessible raised floor with flexible service infrastructure.

If you are interested in making your mark at Trident Park, kindly contact us at info@ tridentparkmalta.com or on +356 2381 4496, +356 9953 9007.

30 · MONEY

BUDGET 2021

ISSUE 62

JP is a founding partner at Seed, a boutique advisory practise. An economist by profession, he is also a visiting assistant lecturer at the University of Malta.

THE ROAD Although the Government announced various policies, schemes, and strategies during the year, the budget is still seen as a central economic policy document which lays out the action points and work programme for the following fiscal year. JP Fabri discusses the need for Malta’s long-term strategy which will pave the way for a better and future-proof Malta. It remains a critical financial document which outlines the way resources are being allocated especially if they are aimed at the short-term or more focused on addressing structural challenges or preparing for longrun goals. This year’s budget was no ordinary budget given the exceptional circumstances we are in. The pandemic has forced the Government to intervene substantially throughout the year through various support programmes and incentive packages. In fact, because of these support measures, the government balance swung from a surplus of 0.2% of GDP in Q2 of 2019 to a deficit of 11.2% at the end of Q2 of 2020. This budget must be seen within this context; an unprecedented pandemic affecting critical pillars of the Maltese economy; the need to stimulate the economy in the short-run and more importantly the need to focus on the long-run and address pressing challenges. This article is not meant to be an exhaustive analysis of the budget but to shed some light on these key dimensions. Response to the pandemic The pandemic continues to negatively impact several economic sectors, including accommodation and hospitality, and retail and distribution. Several companies are

facing daily struggles to keep their business afloat, and this budget included the extension of several support measures into Q1 of 2021. These include the wage support mechanism which is going to be tied to the decline in profitability of companies; the interest rate subsidy; moratoriums on loans and the government-guaranteed loan schemes. Also, a new round of vouchers will be issued to support the ailing hospitality, accommodation and retail sectors. Many of the schemes that the government had announced earlier this year are now being extended up to the end of March 2021. Stimulating the short run Apart from measures to support internal consumption through vouchers, the government-introduced several other actions that are aimed to stimulate the economy in the short run. These are mainly through investment channels; both public and private. On the private side; there is another concerted push to promote and support the construction sector through some measures that are aimed at helping property buyers in their purchases. Also, the Government will be launching several investment projects, primarily infrastructural developments in road

building, health infrastructure, educational and sports projects and industrial zones. These investments will add to the economic activity in the short run, thus also supporting employment. It is also interesting to note that a scheme was launched to support innovative projects for companies that employ less than 50 employees. The increase in the VAT exempt threshold to €30,000 is a positive introduction. Additionally, several social measures aimed at supporting the incomes of the vulnerable cohorts, including pensioners, is a welcome measure.

THE BUSINESS EDITION

BUDGET 2021

MONE Y · 31

TO RECOVERY Eyes on the long run Government is recognising the need for a longer-term vision for the Maltese Islands and although not much is said; the government said that it would be delivering on a 10-year vision focused on good governance, a greener economy, and, innovation and digitalisation. This is a good and a much-needed start; however, a comprehensive consultation process is needed to genuinely future-proof our economy. Mention was given on transforming our current industries and attracting new sectors. Whilst attracting start-ups is positive, and there is mention of a venture capital fund, this has been in the offing for quite some time. We believe that a focus on creating the right ecosystems through initiatives such as start-up visas and access to finance would have been welcome and needed. In terms of critical industries, including the digital economy and

THE COUNTRY NEEDS TO COME TOGETHER TO SET A REMEDIATION PLAN AND [...] TO BUILD A BRANDING PROJECT TO PROJECT THE COUNTRY IN A NEW AND RENEWED LIGHT

financial services, the measures are limited. One looks forward to the publication of the National Digital Strategy, which should set the roadmap for this sector to develop further.

Besides, we need to improve the number of students continuing tertiary education and graduating in science, technology, engineering, and maths.

Key challenges

This is directly related to Malta’s innovation ecosystem. Although the government is trying to stimulate the research and innovation sector, we need to develop an ecosystem whereby companies and academia truly collaborate in research and innovation projects.

Malta still has several challenges which it needs to address going forward. These include Malta’s reputation, which has been heavily challenged over the past few months. As indicated by the EY Investment Attractiveness Index for 2020, Malta’s reputation is at its lowest ever with many CEOs highlighting the issue of reputation and governance structures. This requires a concerted effort between the public and private sector to ensure that Malta’s reputation is restored and our governance structures; not only governmentstructures but also the private sector needs to up its game in terms of good governance. The country needs to come together to set a remediation plan and not only strengthen the country’s management and institutional sector but more importantly to build a branding project to project the country in a new and renewed light. Various reforms have started, and they are all steps in the right direction; however, we need to continue deepening the reform process. Education also remains an area that requires investment and improvement. We need to review our syllabus and curriculum to ensure that our educational system is preparing our students for tomorrow. We need to ensure that we start reducing our early school-leavers rate, which remains high when compared to European averages.

Here, it is essential to see an improvement in the access to finance, and the Malta Development Bank should play a key role together with the use of EU funds. The environment too remains a crucial challenge which requires a concerted and national focus to position it at the centre of our development model whereby it is not only conserved but regenerated to improve our quality of life. Although several incentives and measures were announced, it is now of utmost importance that these are rolled out and implemented swiftly and efficiently. Resources need to be redeployed accordingly to ensure that such measures genuinely stimulate the economy and see the light of day as otherwise, they will not have their intended effect. We are living in highly uncertain and volatile times. This budget provided a continuity exercise with the extension of numerous schemes and incentives. It continues to aim for the stabilisation of economic activity; however, the coming months will be critical for the government to launch the numerous strategies and vision documents it announced. The challenges facing our economy remain and are significant.

32 Â· MONEY

S T R AT E G Y

SELLING THROUGH COVID-19

ISSUE 62

THE BUSINESS EDITION

S T R AT E G Y

MONEY · 33

Robin is managing partner at 20/20 Strategy, a data-driven strategy consulting firm. He helps leading global brands and new emerging brands make better strategic choices.

The Covid-19 pandemic has had a profound impact on the way we live, the way we work, the way we buy and the way we think. New consumer attitudes, behaviours, purchasing habits and values are not only forming, but some of them are likely to remain post-pandemic. Robin Cleland explains. In terms of consumer behaviour, it is changing what brands, products and services consumers are buying, where they buy them from, how frequently they make purchases, how much they are willing to spend, what attributes they are seeking when choosing a brand, as well as their media consumption and how they engage with brands. Senior management needs to understand how consumer behaviour is changing in the categories in which their organisation and brands compete, and assess how these behaviours are likely to evolve going forward, to embrace the evolution and drive long-term performance proactively. Over the past several months, we have observed some critical shifts in consumer behaviour, which could change how brands compete. Acceleration in the shift to online shopping Social distancing and stay-at-home restrictions have accelerated the move towards online shopping. Online shopping was gradually increasing before the Covid-19 pandemic, but this shift has accelerated significantly, with e-commerce sales achieving several years of forecasted growth in just a few months. Online shopping has increased across many consumer categories, as new consumers migrate online. Examples of categories experiencing high growth in online sales include groceries, clothing, electronics, personal care, and fitness—this higher level of online shopping is likely to continue post-

outbreak, as consumers settle into this new behaviour. This accelerated shift to online shopping has also changed retail profit models, with several retailers reducing their physical retail network in favour of a more substantial online presence (e.g. Zara, Gap). This structural shift will continue to nurture online purchase behaviour and influence consumer expectations in the future. Increase in the demand for low-touch services In addition to online shopping, consumers are also seeking other contactless shopping and delivery options. This has driven an increase in demand for restaurant deliveries, drive-thru pick-up, and self-check-out options. The need to reduce contact is also leading to a reduction in shopping frequency, increased stocking behaviour for some categories, as well as an increase in purchases of products with longer shelf-life (e.g. increase in sales of long-life milk vs fresh milk). The preference for low-touch options has also impacted the demand for shared services, such as public transportation, ride-sharing,

Online shopping has achieved several years of forecasted growth in just a few months

air travel, and the avoidance of large events. Although the attitude towards shared services may improve once the pandemic is contained, it is likely to take time for some consumers to feel comfortable using these services again. Increase in ‘health and hygiene’ as a driver of brand choice The ongoing media spotlight on infection rates, death tolls, hospital admissions, and the ongoing restrictive measures to contain the spread of the virus, have contributed to greater awareness of health and hygiene issues. This has not only had a direct impact on demand for health and hygiene products (e.g., masks, detergents, soaps, cleaning equipment) but has also increased consumers’ sensitivity to hygiene signals when choosing a product or service. It is becoming increasingly important for retailers and restaurants to not only follow hygiene protocols but also to communicate and tangibly demonstrate the procedures in their customer experience. Besides, the heightened need for health and hygiene is making consumers more aware of the materials used in products and packaging formats. It is increasingly essential for brands to incorporate a ‘health strategy’ in their offering and customer experience. Increase in conscious consumption The global spread of Covid-19 has highlighted the interconnection between humans, and →

34 · MONEY

the interconnection with nature. Enforced lockdowns and the resulting reduction in human activity and travel have contributed to lower levels of pollution in many cities. There have been numerous examples of nature thriving during this period. This experience has contributed to greater awareness and appreciation of how people impact nature, and the desire for some behaviours to continue post-pandemic (e.g., remote working, reduced car usage). As consumption, has focussed on the most basic needs, it has not only prompted some consumers to question their desire to buy non-essential items, but it has progressively made consumers more mindful of what they are buying. Consumers are striving to limit food waste, shop more cost consciously, buy locally, and choose more sustainable options. The increase in conscious consumption is gaining momentum, particularly among younger generations, and likely to continue post-pandemic. Brands need to continue to reflect on, and rethink, all aspects of their operations from how they source ingredients and manufacture their products, to their marketing activities and product/service delivery. Increase in nesting behaviour and in-home consumption

A longer-term perspective is not only necessary to drive long-term success, but also critical because the duration of the COVID-19 pandemic is uncertain

ISSUE 62

S T R AT E G Y

People are spending more time at home with their families, due to stay-at-home restrictions, remote working and schooling. Usage of popular entertainment platforms has increased. Investment in home improvements and DIY have increased. Categories such as home cooking, restaurant delivery, and equipment purchases for at-

home fitness have all experienced a surge in demand. Furthermore, to manage social isolation, consumers are increasing their usage of social media and digital channels to connect, communicate, learn and play. For most people, ‘screen time’ has increased substantially. Consumers expect to continue spending more time on in-home activities, even as restrictions are gradually lifted. This in-home behaviour and media usage patterns will continue to influence how brands connect and engage with their target audience. This will drive organisations to shift more marketing activities (and budget) towards digital channels. Fluctuation in Brand Loyalty and Switching Behaviour The combination of lockdown restrictions, financial pressures, shop closures, and changing priorities, has pushed consumers to try different retailers and brands. This has contributed to higher levels of brand switching across many consumer categories. On the one hand, such disruption often benefits established trusted brands. Still, on the other hand, it has also benefited private label products, as consumers are increasingly seeking availability, convenience, and value. This volatility in brand choice and loyalty is placing pressure on brands to adjust their offering to adapt to the new norms, to attract consumers to choose their brand repeatedly.

The Covid-19 pandemic has contributed to fundamental shifts in consumer behaviour, creating both opportunities and risks. To navigate through this uncertainty, it is more important than ever for senior management to provide clear guidance, adopt a long-term perspective and act decisively despite the absence of reliable forecasts and the wide range of challenges. A longer-term perspective is not only necessary to drive long-term success, but also critical because the duration of the Covid-19 pandemic is uncertain. To act decisively in this new reality, organisations need to become more effective in tracking customer behaviour and identifying how the underlying shifts in behaviour are impacting the mechanics of performance. Furthermore, senior management needs to explore multiple future scenarios of how this behaviour and performance could evolve. This will provide the basis for building a shared understanding of the situation while increasing senior management’s readiness and reaction speed to take decisive action as events unfold.

BOV STUDIES PLUS+

#SUCCEED Take the plunge and invest in a rewarding career. Now you can further your studies in specialised local or international courses with the BOV Studies Plus+ loan. You can enjoy advantageous interest rates and other great benefits.

Talk to us | 2131 2020 | bov.com All loans are subject to normal bank lending criteria and final approval from the Bank. The term of the loan must not go beyond retirement age. Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap. 371 of the Laws of Malta). Issued by Bank of Valletta p.l.c., 58, Triq San Å»akkarija, Il-Belt Valletta VLT 1130.

MINISTRY FOR EUROPEAN AFFAIRS AND EQUALITY

COM 2153

PARLIAMENTARY SECRETARY FOR EUROPEAN FUNDS AND SOCIAL DIALOGUE

MINISTRY FOR EDUCATION AND EMPLOYMENT

Operational Programme II - European Structural and Investment Funds 2014 - 2020 Investing in human capital to create more opportunities and promote the wellbeing of society part-financed by the European Social Fund Co-financing rate: 80% European Union; 20% National Funds

THE DEFINITIVE BOATS AND YACHTING MAGAZINE

HAND DELIVERED DIRECT TO YOUR BOAT Informative and exclusive content, high profile interviews, sailing destinations and lifestyle. Available at all marinas, affiliated businesses, Embassies, 5-star boutique/hotels and sailing clubs. For more info call +356 2134 2155 or hello@skippermag.com

WINTER EDITION ROLEX MIDDLE SEA RACE SPECIAL

DECEMBER 2020 Follow us on

THE BUSINESS EDITION

MONEY · 37

PROMO

THE BENEFITS OF

PROFESSIONAL INVESTMENT DECISION-MAKING

In today’s volatile markets, the time and effort required to manage one’s wealth effectively have dramatically increased as business cycles have shortened, and the volatility associated with traditional asset classes has increased. Another challenge for investors is the sheer volume of investment options available today. Clients can now access a vast array of opportunities, at reasonable costs which means that they must navigate through a regular stream of information and noise continually. Therefore, a growing number of high net worth individuals are nowadays opting to delegate the decision-making process to experts in the field who can focus their effort on the strategic asset allocation and apply a disciplined and consistent investment approach throughout. A Discretionary Portfolio Management service (DPM) is generally the most viable option in these circumstances. It is specifically designed to provide investors with the peace of mind that their portfolio is being monitored regularly, and action is taken quickly and efficiently as investment and profit-taking opportunities arise. This relationship is generally governed by an Investment Mandate, which is an agreement that confirms a client’s financial goals, risk tolerance and investment objectives, and defines the boundaries on how the portfolio will be managed. The Portfolio Manager then creates a diversified portfolio of tailored-

made investments that reflects the client’s financial situation, and proactively makes portfolio management decisions on a day to day basis. The nature of the DPM means that a lot goes on behind the scenes. All the development, analysis and implementation is carried out internally, so the client does not see all the details, just the finished product. To promote the DPM as a viable option, wealth managers must show their clients that they can add value to their portfolio. This is generally done through a comparison of the portfolio’s performance with a representative benchmark which is agreed upon at the start of the relation. In this case, the investor would be looking for a consistent outperformance of the benchmark over time, net of all the fees involved. Fees can vary from one provider to another. Still, the most common are management fees which apply a percentage on the total value of the portfolio to cover the costs associated with managing the portfolio on a day-to-day basis. Regular meetings are held with the clients not only to explain the portfolio performance and ensure that the strategy is clearly and

regularly communicated but also to gain a deeper level of understanding of individual clients so that their expectations are expertly managed. The recent drive towards greater use of calls or apps has meant that clients are today much more engaged and continuously look for opportunities to receive real-time updates and analysis on their portfolio. If you don’t want to think about your portfolio every day or do not have the time and would instead let an expert deal with it, our Wealth Management service at Calamatta Cuschieri might be right for you. Please talk with us directly or visit our branches to find out more.

This article was issued by Stephen Borg, Head of Wealth & Fund Management at Calamatta Cuschieri. For more information, visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning investments or investment decisions, or tax or legal advice.

38 Âˇ MONEY

ISSUE 62

ECONOMY

Jordan is an economist and a portfolio manager for a local asset management company.

MAKE

BREAK

Business expansion is predominately highly dependent on macro-economic conditions, sectoral trends and idiosyncratic factors. However, nowadays more weight is given to other considerations with reputation playing an indispensable role in an ever-evolving competitive market.Â Jordan PortelliÂ addresses the importance for Malta to regain its trust and reputation.

Looking at the macro environment from a jurisdiction perspective, a government in power plays a vital role in paving the way for attracting business or instigate further expansion. Public policies are a substantial contributing factor, and over the years, important decisions on this front emerged crucial in triggering growth. Over the years, Malta shifted from a manufacturing country to a service-oriented country with significant exponential growth

THE BUSINESS EDITION

ECONOMY

in a diversity of sectors. Indisputably, the role of previous administrations in endorsing public policies and explore growing industries were crucial for the said shift. More specifically, looking more at the macro picture within the local sphere, the growth experienced domestically over the years should be attributed to the well-planned and implemented policies which attracted industries at their infancy. A case in point was the enacted law way back in 2004 which regulated the gaming industry in Malta. It was the first to do so within the European Union. This paved the way for Malta to become a gaming hub, as many prominent players within the industry have re-allocated to Malta, based on the license pass-porting proposition in other European jurisdictions. In this regard, Malta over the years held the first-mover advantage by having the necessary knowhow and infrastructure to continue and attract other players. Possibly more effective for foreign direct investment (FDI), were the changes in the tax regime. Our current tax regime for FDI is undoubtedly one of the most attractive avenues for companies to set up domestically. In straightforward terms, non-residents ultimate beneficiary owners end up paying five per cent on the distributed dividends. Indeed, the desirable tax regime has over the years became a criticism from other European counterparties which believe they are negatively impacted from an FDI influx perspective. More interestingly the beauty of wellplanned and workable policies is the positive or negative consequences they can have on other sectors. Domestically, it worked wonders as the exponential growth in the financial and gaming industries has also attracted other supporting businesses, already established local firms expanded further. At the same time, the increased demand encouraged the formation of new companies, even at a fast pace. This is what economists refer to as the multiplier effectan action that has consequences on others. For instance, domestically a convenient example is the rental market which emerged as a very attractive avenue of returns, following the spike in rental prices as demand

MONEY · 39

business with years of cash generation can expand through internally generated funds. Other companies might seek other sources of financing such as bank loans, the bond market or additional equity support through new shareholders’ injections. An interesting fact is that domestically over the years; many companies opted to tap the bond market for business expansion, as conditions were attractive while investors’ appetite was high.

soared. This economic ripple effect was reflected in the abnormal economic growth when compared to some of our European counterparties, an upward trend which was sustained for years. Sectorial trends which are conditioned by macro conditions are also another point of call for businesses. The macro-environment might be, at times, more benevolent to specific sectors than others. Thus, companies continuously analyse these trends to explore niches of opportunities in which they can invest and progress. On the micro front, specific risks also hold command on whether a business should expand and whether it retains the ability to do so. Indeed, the capacity and capability to invest are also conditioned through the support of financing. Usually, a strong

The uneasiness of existing foreign companies is a significant concern when one considers the possibility that these might consider re-allocating their business to other jurisdictions

However, nowadays, growth or the lack of is also conditioned by other factors, with a jurisdiction’s reputation playing an important role. Reputation risk in simple terms is a threat that a company or a jurisdiction may face a course of actions. Domestically, businesses may have been tangentially affected by the government mishandling of the recent corruption saga. Malta’s reputation has been inevitably tainted by the current series of events which are still being uncovered. The uneasiness of existing foreign companies is a significant concern when one considers the possibility that these might consider re-allocating their business to other jurisdictions. Moreover, the surrounding uncertainty might have conditioned businesses which had the intention to expand or possibly others who were planning to set up domestically. Such uncertainty, coupled with the everevolving pandemic saga might condition forward-looking business confidence. For clarities sake, without politicising, the current administration must continue to work hard in regaining the necessary trust and reputation that Malta managed to gather over the years. Reputation nowadays is a decisive factor for limiting or enhancing growth. Reputation needs to be groomed and taken care of. It’s a make or break for the economy to flourish.

KYC / Due Diligence Reports

FACILITATING ACCESS TO FINANCE since 2002

2,000

reports a day generated by our clients

Online system accessible

24/7

199, Eucharistic Congress Road, Mosta MST 9036 Malta 2131 2344 info@creditinfo.com.mt

THE BUSINESS EDITION

C L I M AT E C H A N G E

M O N E Y · 41

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

COMING OUT INTO THE HEAT Covid-19 brought about a change in more ways than one, but it also left a positive impact on our environment. But as we hope the pandemic fades, climate change is a problem which is here to stay. Emanuel Delia writes. Let’s be optimistic, shall we? If only for the sake of argument the worst of Covid-19 is a memory, and our economy and our way of life can emerge from self-isolation and extended quarantine. Now what?

in hotel rooms were not cancelled but moved online. A three-day commitment was fulfilled in an hour or two.

In the reflective mood of the dark cave we were in from March to June, we imagined having to make permanent changes to the way we live and work. We started with the surprising benefits of isolation. Milder office politics, more relaxed codes of appearance, more extended periods of invigorating silence, increased autonomy and more family time.

It was not all rosy, of course. Many businesses suffered the long wait and struggled to breathe the thinner air of depleted demand. But those businesses that could, transformed. Quickly. Many discovered that a lot that seemed immutable could be transferred online or remotely.

We found ourselves and our colleagues and staff producing more by working less. Cutting out the grind of daily commutes rewarded us with more me time and took away the stress of traffic jams. We let our hair down, our roots to show, our beards to grow. We woke up later and squeezed in a quick siesta. We paused to answer the kids’ math question, and we tossed up a healthy salad for lunch.

Perhaps despite ourselves, we found we could work and play without quite as much impact on our environment, with less congestion, cleaner air and carbon emissions. If we could adapt our way of living and work to a pandemic, we could change other environmental and contextual needs.

We could get used to this. We went out for walks on safer, emptier roads. The air was crisp and clean, and the vista from heights let you see farther than ever. Sicily, seen from Marsalforn, no longer needed imagination. Work conferences and client briefings that would have required us to fly, taxi and sleep

This can work.

This too, can work.

Closed as we were, somewhat fearful if not for ourselves, then for our parents and our vulnerable friends and family, we needed optimism to keep going. Perhaps that optimism was even enough to make us think we could make ourselves a beautiful home living like this. Some dared say it aloud. Perhaps, this is how we push back on global warming. This is how we reduce greenhouse gases. This is how we clean our air and our sea.

Consider Malta. The culprits of our carbon footprint are mainly five: aeroplanes, cruise ships, cars, electricity consumption and the over-stretched legs of our construction industry. While no one imagines we can last forever without flying, we have been forced to imagine flying less. Cruising is fun but do we need to have quite so many ships coming? We could work and study from home more often, get our shopping done online, travel less. Before the Covid-19 restrictions were lifted, people who would never consider changing any of their habits, entertained these notions happily and hopefully. And now? It seems that these notions are now perceived as loony fringe as they were before the pandemic hit. Now that the fear has subsided, the need for self-inflicted Pollyanna sprinkles has also diminished, and we are rushing back to our old self-harming ways. →

42 · MONE Y

C L I M AT E C H A N G E

WE ARE DEPENDENT ON THE HABITS THAT WE TOLD OURSELVES WE WERE HAPPY TO STAY WITHOUT FOR A SHORT WHILE No sooner had we been told that it’s OK to come out again that traffic jams emerged. The point here is that transportation and the reduction of congestion cannot be successfully managed by addressing supply. Even if it could, people who can avoid travelling by bus will now have another reason to do so. But the real question is the habit of demand. We want to travel by car because we want to get to where we’re going. Even if we could do away with the journey and find alternative ways of getting the job done while staying put. We did that when we had to. But we don’t want to anymore now we can go out. We don’t want to talk to our doctor over Skype. We want to go to the clinic. And we want to go there by car. And here’s the big one. We don’t want to work from home, even if we told ourselves how much we enjoyed doing it during the pandemic. We are addicted to the morning traffic jam. We want it. We need the aggravation, the rolling acid, the road rage and the water cooler stories of horrible

accidents, incompetent traffic wardens, and maddening road works on the daily odyssey from home to work. We are addicted to flying for three hours on the way to a two-hour meeting. We are addicted to low-cost flying weekend-breaks. We are dependent on the habits that we told ourselves we were happy to stay without for a short while. And we’re going back to them. And oh, the blessed relief. Within the walls of our own little castles, we live as kings. Buildings are supposed to last, to be the legacy of our time for future generations. And yet, the creature comforts of our today are indifferent to the climate consequences of our children’s tomorrow.

ISSUE 62

we’ll push back on with artificial climate control. That will push up carbon emissions that will accelerate climate change. That will make the country hotter and harder to bear. We will no longer see Sicily from Marsalforn. But that’s not the worst bit about deteriorating air quality. The invisible particles that cloud our visibility land on our eyes and penetrate deep into our lungs. You don’t live well, and you don’t live long with that even if you’re always wearing a mask. A hotter climate increases the range of disease-carrying insects for more of the year. We’ll have more than Covid-19 to worry about, including diseases thought long defeated except in the darkest of backwaters. That will overwhelm our health services and puncture their viability. It will also puncture the bubble of social solidarity. As more people depend on less until living together as a community no longer works, and our politics become crueller, and our compassion becomes the first luxury we can no longer afford.

I think that’s enough optimism for one day. Climate change is going to catch up with us. Our tourism industry, so pleased with the return of planes and cruise ships, will not survive that because this place will become too hot to bear. We’ll have long stretches of extreme heat with all the concomitant health problems that come with that. The human body will be overcome by that heat which

A hotter climate is not only made of glaring sunlight. It is made of vicious storms, hurricanes and floods. And perhaps for terrains somewhat more extensive than ours where we now go on holidays or for frequent work trips, an increase of water-borne diseases. As we mindlessly build palaces in which no one can afford to live, we forget that we’re bringing a very uncomfortable future ever nearer to our lives. We buy and sell property as if our corner of this world is a universe unto itself. A timeless view of our time will see us swapping little portions of an unliveable hell. I’m sorry. If you thought this story had a happy ending, you have not been paying attention. The simple fact is this is harder for us to adjust to because unlike Covid-19, the climate change challenge is not temporary. We do not sit tight at home, cutting our hair between two facing mirrors while we wait for the local barber to open again. This is it. Forever. And forever is just too long a time to think about it. So, let’s catch a plane to Tuscany while we still can. Our unborn grandchildren can fend for themselves.

We print

STATIONERY, BOOKLETS, FOLDERS, CALENDARS, ETC. Salander Group Co. Ltd. KW3, Corradino Industrial Estate, Poala, Malta +356 2189 4446/7 www.printit.com.mt

OFFSET

DIGITAL

PREPRESS DESIGN

44 · MONEY

PROMO

ISSUE 62

Richard is the CEO of Switch — Digital & Brand, a marketing agency that forms part of ICOM, the world's largest network of independent agencies. [richard@switch.com.mt]

INNOVATING for BUSINESS SUCCESS Businesses run on relationships. We must forge a set of relationships with a host of different companies to run our businesses successfully. In most cases, our businesses depend on a series of moving parts, some of which are out of our control and depend entirely on third parties that we rely on to produce the results we expect, time and time again. Richard Muscat Azzopardi explains.

THE BUSINESS EDITION

When so much relies on these partnerships, we tend to choose our partners based on a mixture of reputation, consistency, price, value and organisational match. But different periods bring about a different set of needs, or, to a certain extent, they shift around the priorities of what we’re after. And therefore, as business leaders, our responsibility is to take a long, hard look at our offering to try to spot all the areas in which we can help improve them. Price & Value In challenging situations like the one, we’re going through it might be tempting to look at our service offering and see what we can do to bring prices down. It will help, but it is a shortterm solution. Even if it does get more work in for a while, this is a route that will slowly but surely erode at your business model, making it very hard to come out of the spiral you will set yourself into when things start looking up again. Let’s take an example. If I’m a professional who can sell my time profitably, there’s no reason for me to take time off my job to paint my walls. I might not be proficient in plastering, but I can use a roller to paint my walls if I had to. The truth is, however, that it’s a much better use of my time to spend working with clients and to pay a turnkey company to both plaster and paint my walls. When there isn’t enough work for me, however, I’d be grateful if I could find an option for a plasterer who can do the work I’m not proficient at, leaving me to do the painting in my spare time. If I’m short of work, I probably have more time on my hands and less cash to spare. The alternative is the turnkey contractor coming to me and offering me to do the plastering and the paint job for the same price as the plastering job alone. They’d be compressing their margins stupidly. That is why we recommend looking at the areas in which you can deliver more value. To give more value, you need a set of offerings that are more useful in the times we’re living in, at a set of prices that make sense to the market we’re living in. Rather than merely looking at your rates to see where you can bring them down, look

PROMO

MONEY · 45

and see if there are smaller sets of services that you can offer to your clients. A very busy client will look for convenience over and above everything else. Still, a less busy client will be far more interested in only getting the essentials, even if it means that they will take on more of the more mundane responsibilities (like painting the walls).

studies (and testimonials) than any shortterm solutions you can offer.

Look at your product line and do your best to analyse which bits can be broken down into smaller pieces and try offering your clients more tailored options, options that give them choices to do some of the dirty work as you do the heavy lifting for them. Conversely, when shopping around for services, see if you can buy more modularly.

Innovation As with every other recommendation we’ve given over the past few months - this is the time to be innovating on every front. Sit back and look at your business with a fresh pair of eyes. Which parts can you dismantle and build back up again in a way that makes more sense for the times we’re working in?

Organisational Match As times get more challenging, most of your potential clients will be cutting down on costs internally, too. Therefore, they’ll be looking for external suppliers who can understand them. External suppliers who will allow them to run with fewer resources, at the pace that they need.

We ran a similar exercise internally and created a modular agency model that can run alongside our regular agency. In this version

A better organisational match might be more important to your clients than a cheaper rate, because by working with partners who get them, your potential clients will be saving time, potentially saving on having to grow their teams in times of uncertainty. By offering them the products and services they need, as and when they need them, you might be able to win business over a cheaper rival purely by being a better match to the client’s needs then. Reputation We can’t help with a short-term fix for this. Your reputation should have been built over the years, and there is very little that you can do at this point that will short-circuit a longterm effort on carefully curating your brand image as that of a trustworthy supplier. What you can do, however, is communicate in a manner that shows that you understand the peculiarities of the period we’re going through, both internally and externally. When sending off proposals, or when communicating with potential clients directly. It should be the time to help them see that you’re a reliable option, putting much more effort on showing stability and previous case

Whereas regularly we’d not push the fact that our agency is 16 years old, this is the time to push that fact, flaunting our age and the longstanding relationships we have with some major clients.

A better organisational match might be more important to your clients than a cheaper rate

of Switch, Lite Switch, clients can choose a modular service, only taking the bits and pieces that they need, when they need them. Their interactions with the agency allow them to work with us around the clock, relying only on asynchronous communication. It trims off the fat and will enable us to charge clients much less for the same level they’re used to expecting from Switch, while only giving them the specialisations we need to help them. In this way, we managed to challenge the price and value notion of our services, offer a new organisational match for our clients (with the same resources and values that our core brand is known and loved for) while borrowing the reputational strength of the primary agency. Contact me through the usual channels if you want to learn more about Lite Switch or if you want to have a little no-obligation chat about how you can look at your products to align them better with the current times.

46 · MONEY

TOURISM

ISSUE 62

HOLIDAYS

AT HOME Domestic tourism has helped to a limited extent to fill the gaps left by the COVID-19 ban on international travel. Still, the Central Bank of Malta’s Quarterly Review shows that the decline in inbound tourism was considerable. Read the highlights of the findings. The global economy has experienced substantial disruptions due to the COVID-19 pandemic. The tourism industry was hit particularly hard by this unprecedented shock as international travel was brought to a halt mainly during the second quarter of 2020, to contain the spread of the virus. The airport and seaport were closed toward the end of March and remained so through

April, May and June, with travel only resuming in July. By March, measures to restrict the spread of the pandemic had already started to have an impact on tourism: 75,157 tourists visited Malta, 56.5% fewer than in March of the previous year.

international terminal passengers at the MIA registered a year-on-year decline of 99.6%. During this period, only 8,747 passengers made use of the airport—mostly repatriations of foreign nationals, and residents returning to Malta.

The effect on the airport statistics was also dramatic. In the second quarter of 2020, the total number of departures and arrivals of

Following the easing of travel restrictions in July, activity in the tourism sector started to recover. However, as the infection rate

THE BUSINESS EDITION

in Malta and worldwide rose again, various containment measures by several countries were also imposed. An amber list was added to the red and green travel lists with effect from August 22, which meant that tourists travelling from the countries on the list must present a negative COVID-19 test result before boarding.

The average net use of bed-places during the second quarter stood at 6.5%, a substantial decline compared to the 73.5% recorded in 2019, with Malta seeing a more significant drop than Gozo and Comino. Indeed, while guests in Malta decreased by 97.5% over the second quarter of 2019, those in Gozo declined by 87.7%.

MIA data show that in July, passenger movements picked up sharply compared to June. There were 152,818 passenger movements, a substantial increase from just 3,345 movements in the previous month. Passenger movements continued to increase in August on a month-on-month basis, with 252,022 passenger movements recorded. On an annual basis, however, this still represents a 69.4% decline on August 2019. Furthermore, the announcement of several quarantine restrictions on travellers from Malta, as well as on other countries, and the introduction of the amber list locally put a brake on the recovery in the second half of August.

While the net occupancy rate in Malta fell to 5.9% from 74.9% in the same quarter last year, that for Gozo and Comino stood at 17.8%, down from 48.5% in the second quarter of 2019. Nevertheless, throughout the quarter, occupancy rates remained historically low across both regions.

National Statistics Office data show that the number of inbound tourists in July decreased by 84.0% relative to the corresponding period a year earlier. The performance of inbound tourism improved slightly in August, with inbound visitors falling by 66.0% in annual terms when compared to the drop recorded in July. Nevertheless, the gap relative to prepandemic levels remains sizeable. Impact on collective accommodation The drop-in tourist arrivals, as well as the associated containment measures, had a deep negative impact on the collective accommodation sector in Malta. Indeed, during the second quarter of 2020, the total number of guests in collective accommodation establishments dropped by 97.0% compared to the corresponding quarter of 2019. However, with flights suspended, most guests staying in collective accommodation establishments were Maltese residents, who made up 81.8% of total guests in such category of accommodation, substantially higher than the 7.1% share recorded a year earlier.

MONE Y · 47

TOURISM

Government support measures In response to the COVID-19 pandemic and the economic consequences of the related containment measures, the Maltese Government implemented several financial support measures aimed primarily to support affected business and preserve employment. Enterprises and employees engaged in tourism-related activity have benefitted from both broad support measures but also measures targeted explicitly for the tourism sector. In particular, businesses benefitted from a wage supplement scheme whereby the Government financed part of the salary of full-time employees for companies that were hardest hit by COVID-19. This wage supplement scheme was extended until the end of March 2021. Besides, firms benefitted from measures to support liquidity shortages. Firstly, a tax deferral scheme was announced as early as March, whereby dues related to provisional tax, VAT, and social security payments were deferred. This scheme was extended in

...it is becoming more likely that international tourism will remain subdued for a prolonged period

August. Also, enterprises facing liquidity shortages benefitted from a temporary moratorium on loan repayments, as well as a Malta Development Bank (MDB) COVID-19 Guarantee Scheme, whereby working capital loans were extended to businesses facing liquidity shortfalls. Other liquidity measures include a one-time grant of up to €2,500 to help in rent costs, as well as a 50% refund of their electricity bills for the third quarter of 2020, up to a maximum of €1,500. To stimulate domestic tourism, the Government also issued a €100 voucher to each person aged 16 years and over, whereby €20 could be spent at outlets which were forced to close temporarily at the beginning of the public health emergency. In contrast, the remaining €80 could be spent at restaurants, accommodation establishments and bars. These vouchers were initially set to be valid until the end of September but were eventually extended until the end of October 2020. These vouchers were mainly utilised in 4-star hotels, restaurants, and large retail groups. As outlined in the 2021 Budget, a further round of government vouchers will be issued at the beginning of 2021. Conclusion Overall, the lifting of containment measures and support measures offered by the authorities appear to have provided some relief to the sector. However, there is still a long way to go for a meaningful recovery. Given the sharp resurgence of the pandemic in Europe during the second half of October and re-instatement of containment measures across countries, it is becoming more likely that international tourism will remain subdued for a prolonged period and meaningful recovery is unlikely to occur any time before the rollout of vaccines. The global nature of travel restrictions— which are likely to persist for some time— and Malta’s dependence on air travel, with reduced flight capacity, and limited scope for domestic tourism suggest that the sector will return only very gradually to the levels of activity seen in 2019. To read the full report and the Quarterly Review, please visit www.centralbankmalta.org

48 Â· MONEY

PROMO

THE LAP OF LUXURY AWAITS

Every detail of the newly rebuilt Athenaeum Spa has been designed to offer guests tranquillity and impeccable service in a luxurious Mediterranean setting.

ISSUE 62

THE BUSINESS EDITION

PROMO

MONEY · 49

The reopening of the new-and-improved Athenaeum Spa at Corinthia Palace comes at an ideal time. Here is the perfect antidote to a year that seems keen on surprising us with less-than-pleasant news at every turn. Corinthia Palace’s renowned spa has been redesigned to create an atmosphere of calm and relaxation. Switch off your phone, lie back and let Athenaeum’s experienced staff take care of the rest. Alleviating every guest’s unique wellness and beauty concerns is the goal, so the spa has curated exclusive therapies using world-renowned skincare brand ESPA. Your journey begins in one of the seven treatment rooms—or perhaps the couple’s suite if you visit with a loved one. An excellent place to get your therapeutic relaxation started would be an ESPA Mindful Massage, Inner Calm Massage or Scalp Massage. If you prefer combining relaxation with the health benefits of heat, you could try the sauna, steam room, heated marble beds and Vitality Pool, which uses air and water massage jets to melt away tension. At Athenaeum, serious self-care is the order of the day. World-class aesthetic physician Dr Raina Rodrigues (née Zarb Adami) has merged her London Harley Street clinic, Aesthetic Virtue, with Athenaeum Spa. Her luxury boutique med-aesthetic clinics and expert staff combine high-quality services with medical standards to offer specialised facial

rejuvenation treatments, now exclusively available at Athenaeum. To tend to your face, you might try a chemical peel and micro-needling, or perhaps injectables, such as Botox and dermal fillers. Athenaeum also exclusively offers painless, permanent laser hair reduction. Quality alone time at Athenaeum is heavenly, but the spa is also ideal for couples, friends and family looking to reconnect away from daily distractions. For the quintessential five-star experience, you can also treat yourselves to an overnight stay at Corinthia Palace, an indulgent brunch or afternoon tea at Villa Corinthia and a Far Eastern dinner at Rickshaw.

A day at Corinthia Palace will recharge your batteries, leaving you refreshed and ready to take on anything life throws at you. It is safe to say that Athenaeum Spa is the perfect refuge.

For more information on Corinthia Palace or Athenaeum Spa, visit www.corinthia.com/ palace, @corinthiapalace on Twitter, @CorinthiaPalaceHotel and @athenaeumspamt on Facebook and @corinthiapalace and @athenaeum.spa on Instagram.

All items by Charles & Ron, The Point, Sliema

PHOTOGRAPHER Marvin Grech

STYLIST Peter Carbonaro

Blossoming in Style MODEL Alex @ Models M

Shot on location at Palazzo Consiglia

“If you let people tell you who you are supposed to be, you will never be happy.”

All items by Charles & Ron, The Point, Sliema

â&#x20AC;&#x153;Feeling comfortable in your skin is wonderful

â&#x20AC;&#x153;Living in denial is painful. But remember: the ones who love you will make your journey less painful.â&#x20AC;?

Outfit is model's own

56 · MONEY

ISSUE 62

FA S H I O N

Prada Logo-Detailed Cotton-Poplin Shirt €470

Gucci Aviator-Style Tortoiseshell Acetate Sunglasses €390

THE FINER THINGS IN LIFE MONEY can’t buy you everything. Actually, it can. All items available from mrporter.com

Alexander McQueen 5cm Striped Silk-Jacquard Tie €125

Canali Kei Slim-Fit Unstructured Herringbone Wool Blazer €1,325

Nike Blazer Mid '77 Suede-Trimmed Leather Sneakers €100

THE BUSINESS EDITION

MONEY · 57

FA S H I O N

Paul Smith Leather-Trimmed Canvas Backpack €450

Officine Creative Race Lux Leather Sneakers €430

Lock & Co Hatters Stafford Grosgrain-Trimmed Wool-Felt Fedora €535

Tom Ford 4cm Black and Dark-Brown Reversible Full-Grain Leather Belt €550

58 · MONEY

ISSUE 62

NEWS

How AML Transaction Monitoring Software Works AML transaction monitoring software looks at everything from deposits and withdrawals to international wire transfers, currency exchanges, credit extensions, or any payments in or out of accounts. By identifying patterns over time, the system learns to predict your customer’s actions, detect any unusual (potentially suspicious) behaviour, and send out immediate alerts to your compliance team for further investigation. Companies big and small use this technology to fight against all kinds of fraud and money laundering including structuring, double invoicing, and round-tripping – but that’s not all it does. A sophisticated transaction monitoring solution also plays a central role in sniffing out terrorism financing and any customers who might be trying to avoid international sanctions. The main benefits of AML transaction monitoring software include - comply with global regulations, protects your reputation, instils a positive customer experience, minimises risk exposure and avoids potential fines. ComplyRadar utilises a robust risk-based approach to eliminate disruption to genuine customers, detect potential criminal behaviour, and demonstrate full ongoing compliance. It sends you notifications on the transactions that matter and enables you to automatically apply a full-pattern analysis to see suspicious transactions in real-time instantly. You can then manage flagged transactions through a comprehensive investigation process leading to the filing of a SAR when required. For more information on how ComplyRadar can help you avoid reputational risk and potential fines, visit www.comply-radar.com or email info@computimesoftware.com.

Don't miss a day. Ever again. Malta welcomes Fitness Hire, the first fitness and action sports equipment rental marketplace. Fitness Hire enables gear owners (gyms, private owners, shops and retailers) to rent their gear, hence easing and promoting access to less expensive, safer and more diverse sports experiences. It allows gear owners to create additional revenue streams and renters to enjoy trying different types of equipment in the comfort of their homes as they safely join a community where members rate each other and build trust. "Many people were struggling to stay fit even before the pandemic. Issues such as overcrowding and body consciousness have often kept many away from gyms. Meanwhile, high costs of fitness and action sports gear have proven to be a deterrent to setting up a home gym and practising adrenaline sports. We have also noticed that equipment fatigue for privately owned goods is an off-putting factor. The COVID-19 outbreak brings about even further critical issues. For example, factors such as closed gyms, social distancing, and travel restrictions have made access to an active lifestyle harder for everyone. Establishing an inclusive rental marketplace where people can hire or make goods available is a solution for a healthier world." stated Alessandro Venè, Fitness Hire's CEO and founder. www.fitnesshire.net

brings cool back to the kitchen with engaging content, delicious recipes and a lifestyle flair.

E AT R E L I G I O U S LY Available from all Park Towers Supermarketsâ&#x20AC;&#x2122; check-out points and selected outlets.

MONEY ISSUE 62

Articles inside

SETTING GOALS