Business Agenda: December 2013 - February 2014 Issue by Content House

THIS ISSUE

Issue 17 | december 2013 – FEBRUARY 2014

TOURISM The English language teaching sector is consistently growing, with students on average spending more per capita than other tourists.

page 7

business agenda

NEWSPAPER POST BUSINESS Basic Dos and Don’ts for Start-ups.

page 35

THE Official Business publication of the Malta business Bureau

30 NEW FDI PROJECTS INTERVIEW British High Commissioner Rob Luke discusses the potential for furthering the presence of British businesses in Malta and partnerships to tap third world markets.

page 14

EU POLICY Restaurants and catering establishments could face additional costs for food inspection controls should a European Commission proposal to improve food fraud prevention go through.

page 24

ENVIRONMENT A paper recently published by the MBB’s EU Life+ Investing in Water Project concluded that hotel operators can reduce water consumption by up to 37 per cent.

page 46

TO BE APPROVED BY END 2013 Eight months after the general election, Business Agenda interviews Minister Chris Cardona to explore what a change in Government brought to the economy, foreign investment and support to local SMEs. Minister Cardona reveals that by the end of 2013, 30 new foreign direct investment projects would have been approved. He attributes most of this success to the focus and work of the new management of Malta Enterprise; claiming that the number of FDI projects under this administration

over the past few months exceeds that approved over the last few years. In this respect, a special coordinated effort is being made with Malta’s foreign embassies and representatives in order to maximise the efficient use of all resources in the promotion of foreign investment. The sectors showing the highest potential influx of investment to Malta hail from the engineering, life sciences, digital game production and general ICT sectors. See full story on page 11.

GREEN JOBS

ON THE AGENDA Green Jobs is a broad term that may mean different things to different people. With the increasing consciousness of the environment and the need to put environmental sustainability at the centre of policy, green jobs can be interpreted with a twofold approach: jobs for the betterment of the environment and jobs created as a result of measures in favour of the environment. A public consultation was recently launched in Malta entitled ‘Green

economy – Towards a strategy and action plan’. This has clearly put green jobs on the agenda and merits a thorough discussion by all stakeholders to come up with a concrete action plan that will improve the understanding of the meaning of green jobs and identify which sectors can be active to promote and create green jobs.

See full story on page 4.

FINANCIAL SERVICES:

AIMING HIGHER Financial services in Malta have come a long way. The industry has blossomed over a short span of time. This is mostly due to a vision that was pursued persistently and thanks to the maturity shown by legislators who have sought consensus in Parliament. Having come this far, many question whether there is further room for growth. The flexibility of introducing domestic rules and regulations within the framework of an EU-

compliant regime is an important factor to sustain future ambitions. Nevertheless, Malta has to be wary of future EU legislation, particularly relating to calls for the harmonisation of certain tax conventions, which could have a negative impact on the sector. Three experts discuss the subject with Business Agenda.

See full story on page 16.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

editorial

2014 – A year to look forward to 2013 has come and gone, and with it further hope and challenges to be tackled. Confidence in the euro is slowly returning, while the euro-zone has returned to growth for the first time in two years, with a 0.3 per cent GDP growth in Q2 2013. This growth has been attributed to a surge in industrial production in June, as well as an increase in exports. Malta has also performed well; we are forecast to finish the year strongly with 1.8 per cent growth, up from 0.8 per cent last year. However, this is not the time to be complacent. Olli Rehn, European Commissioner for Economic and Monetary Affairs said so by stating, “self-congratulatory statements suggesting that the crisis is over are not for today”. Such success presents us with one challenge after another. Firstly, the current momentum must be maintained. Secondly, we must improve upon this momentum. The pace of such improvement is imperative. We cannot allow the economic ‘periphery’ to lag behind, while the EU’s bigger economies sustain their (slow but) steady growth. For this reason it is critical that priority is given to the European Semes-

ter and the Europe 2020 targets. These targets were agreed upon by all the member states in an effort to bring efficient and sustainable growth in a competitive environment to the EU by the year 2020. Targets include goals in job creation, attainment of tertiary education, investment in innovation, as well as investment in renewable energy sources. It is these objectives that will be the keystone in ensuring that the EU returns to steady growth. To achieve these targets, the next programming period of the Multi-annual Financial Framework (MFF), running from 2014 to 2020, is absolutely crucial. The MFF programmes are designed to support the achievement of priorities under the Europe 2020 strategy. In order for this holistic objective to be successful, priority must be given to the timely implementation of the new generation of investment programmes supported by the MFF. The appropriate legislative framework and operational priorities must be put in place at both a European and national level to be able to kickstart projects on the ground as soon as possible.

With that settled, let us turn our attention quickly to one of the defining grievances that businesses have been experiencing since accession into the EU; excessive bureaucracy. While operating in the EU brings massive benefits, it requires the full attention of business to get it right. Operating within the legislative parameters of the Union and the Single Market has become a bureaucratic nightmare. In this respect, it is extremely promising to see the European Commission finally coming to terms with its own shortcoming. A recent Communication sets out the results of a Regulatory Fitness and Performance Programme (REFIT), which is an exercise analysing legislation and its reform. More action following up on the results should be seen in 2014. Such an effort by the Commission to reduce the burden of EU regulation on businesses is highly commendable. This is because business flourishes if it is operated within the parameters of well-designed legislation. The Commission has a key role to play, so long as it does not over-do it.

By Joe Tanti, Chief Executive Officer, MBB For our part, the Malta Business Bureau will remain committed to following up on the Commission’s efforts, while maintaining our lobbying efforts with respect to the betterment of the business environment, both locally and at an EU level. On a lighter note, we are certainly looking forward to the fresh beginning that the New

Year brings about. Next year is an important one for the EU with the European Parliament elections taking place and subsequently the appointment of a new college of Commissioners for the following five years. For the time being, I take this opportunity to wish our readers a Merry Christmas and a prosperous New Year.

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Business Agenda is the quarterly publication of the Malta Business Bureau. It is distributed to all members of the Malta Chamber of Commerce, Enterprise and Industry, all the members of the Malta Hotels and Restaurants Association, and to all other leading businesses by Mailbox Distribution Services, part of Mailbox Group. Business Agenda is also distributed by the Malta Business Bureau to leading European and business institutions in Brussels.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

cover story

Green jobs

on the agenda Green seems to be the current buzz word for business and the economy, with emphasis on a switch to sustainable practices high on the European agenda. In the face of the stranded assets debate and high levels of unemployment in the euro-zone, the way forward seems to be promoting a green economy and creating sustainable jobs. SARAH MICALLEF looks into the relatively young but rapidly evolving concept of green jobs and their local potential.

Economist Clyde Caruana breaks down the concept of green jobs, citing the European Commission’s definition of green jobs as “jobs that depend on the environment or are created, substituted or redefined in the transition process toward a greener economy.” Nonetheless, he asserts that it is difficult to quantify the number of green jobs given the lack of comprehensive and comparable data in the European Union. EU LIFE+ Investing in Water Project Manager Joe Tanti, meanwhile, defines green jobs as those “emanating directly or indirectly from the several and disparate economic activities that can

be broadly linked to industries focusing on environmentally sustainable products or services.” Nathan Goode, of Grant Thornton International, who was also keynote speaker at a recent public consultation on Green Economy that explains “green jobs mean different things to different people. The UK looks at green jobs as jobs that are generated in the renewable energy sector, waste and recycling sectors, the building efficiency area and environmental consultancy.” He describes their effect on the economy as ripples in a pond. “When you look at the impact

from a jobs perspective of a green initiative, you not only look at the immediate jobs that come out of that activity, but also the supply chain, as well as new jobs that are created because of the economic activity that results from the green investment.” Mr Tanti is in agreement, maintaining, “green job opportunities vary from country to country, depending on natural resources, infrastructure, worker knowledge base and economic formulation in general. The added value of green jobs is both an environmental improvement as well as the new employment openings generating from environmentally-friendly

economic activities.” Critically, as Mr Tanti highlights, it is one of the sectors achieving encouraging levels of growth in the EU. “Tapping into it would allow Malta to meet domestic and international economic opportunities – opportunities which are only expected to increase over the coming years.” Indeed, green jobs bring unique value to the economy, Mr Caruana asserts. “The production of goods and services necessitates the use of environmental resources that are finite. Hence, the more economies grow, the faster the pace of depletion and environmental degradation. Green growth seeks to address

this shortcoming by ensuring sustainable growth with minimal impact on the environment.” Bringing a European perspective to the issue, Mr Goode draws attention to the matter of stranded assets, explaining that such assets, while generating revenue now, run the risk of not generating revenue in the future, due to climate change or depletion of resources, thus becoming stranded before the end of their useful economic life. “There are certain sectors which in a few years’ time will be under threat, so a transformation needs to be made – this is why green jobs make for such an attractive concept.” On a local level, Mr Tanti

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

cover story “Significant job creation opportunities lie in the area of sales as well as the maintenance and repair of PV installations and micro-wind turbines.” – Joe Tanti

“There is a lot to do in the recycling, gas and water management sectors. The renewable sector is also an option, by using Malta as a service base.” – Nathan Goode stresses that the biggest benefit of green jobs is the addition of a new employment stream beyond the traditional sources of job creation from the manufacturing, hospitality and services industries, which currently form the backbone of the Maltese economy. “Given that Malta has scarce natural resources and one of the highest population densities in the world, the benefits generated through a green economy could lead to an improved environment and increased economic activity.” From an EU standpoint, Mr Goode believes that much green jobs activity is, in terms of strategic approaches, happening at country level. He elaborates, “there are a number of programmes that are EU-funded but are driven by individual countries. What the EU tries to do is create ways of learning lessons from one place and transferring them to other countries.” He goes on, “the EU strategy has been to focus on high level targets such as the percentage of power generated from renewables, CO2 reduction levels, 20-20-20 targets and single market issues. Part of the problem with renewable energy is that you may have too much of it in one place and not enough of it in another, so you would need to balance it out across the grid. That is where the EU comes in.” In Malta, the Government launched a public consultation aimed at producing a green economy strategy last month. The consultation was launched by both the Ministry for Sustainable Development, the Environment and Climate Change, as well as the Ministry for Education and Employment. The date for submissions has been set for 2nd December 2013 and the strategy is expected to be in place by next year. While a concrete strategy is yet to be defined, there is potential for green jobs across a variety of sectors locally, according to Mr Goode. “I think there are some interesting opportunities for green jobs in Malta. There is a lot to do in the recycling, gas and water management sectors. The renewable sector is also an option, by using Malta as a service base.” He refers to the recent announcement that Shanghai Electric Power, an energy company owned by the Chinese government, will invest around €200 million in Enemalta, stating, “I think the Chinese invest-

ment in the state power company is interesting because that says that they see Malta as strategically interesting from a Mediterranean perspective.” He goes on to mention the adaptation of ports to help with the growing offshore wind sector as another possible scenario. Mr Tanti agrees that the potential for green jobs in Malta is significant as long as there are public support mechanisms in place to entice FDI from established leading renewable industries. He says, “significant job

creation opportunities lie in the area of sales as well as the maintenance and repair of PV installations and micro-wind turbines. Furthermore, there is potential with the right fiscal incentive framework to support new business start-ups in the renewables sector. Other areas of interest include energy and water efficiency, as well as waste management.” Mr Caruana is in agreement on the importance of an action plan and support mechanisms, stating “notwithstanding Malta’s limited econo-

mies of scale that favour green growth, the domestic economy has the potential to create green jobs. The transition to a greener economy is dependent on having the right skills available.” Because of this, he believes it is imperative that an action plan on skills needs be designed. Moreover, the provision of formal and informal learning opportunities through a lifelong learning approach is seen as a critical factor in supporting the labour market restructuring which is associated with this transition.

“The transition to a greener economy is dependent on having the right skills available.” – Clyde Caruana

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

tourism

English Language Schools

attracting 80,000 foreign students to Malta each year

According to FELTOM, it is simply a popular myth that foreign students who visit Malta spend little money during their stay. Figures indicate that, on average, foreign students spend more money – per capita – than other tourists. MARTINA SAID reports. It’s difficult to miss the flocks of foreign students, better known as EFL (English as a Foreign Language) students that reach our shores each year. Particularly during the summer months, beaches, nightclubs, cultural attractions and heritage sites are brimming with young, enthusiastic tourists primarily here to learn English, while having fun in the process.

“Members of the University of Malta’s Faculty of English teamed up with the University Student Council to offer the first English language courses to foreigners,” Ms Abela explains. “Teaching English as a foreign language was still in its infancy and Malta was one of the first countries to establish itself as a destination.”

“During the last ten years – 2002 to 2012 – this segment grew by an average annual rate of 4.3 per cent.” – Alexandra Abela The industry has been growing and gaining momentum for years, and is now considered to be a significant contributor to our tourism sector. The record year of 2007 saw a total of 83,952 students arriving to our island, followed by similar substantial figures between 2008 and 2012. Alexandra Valletta, who heads the EFL and Diving Segment of the Malta Tourism Authority (MTA), says the success of Malta’s tourism industry, which is one of the key pillars of our economy, is partly the result of the development of key niches such as the EFL sector. “It is an important niche within our tourism product offer, attracting 80,000 students annually. During the last ten years – 2002 to 2012 – this segment grew by an average annual rate of 4.3 per cent.” In 2012, Ms Valletta explains, EFL students accounted for almost six per cent of all tourist arrivals to the Maltese islands. “More importantly these students have a higher than average length of stay of 2.8 weeks and the sector registers a total number of 226,360 student weeks.” The Federation of English Language Teaching Organisations in Malta (FELTOM), which is the national accrediting body representing national English language schools, was set up in 1989 by a group of such schools that saw the need to introduce quality assurance standards in the industry. FELTOM’s Chief Executive Officer, Genevieve Abela, says the sector traces back to when Malta was still a British colony.

The industry has continued to grow consistently over the last number of years – a combined result of increased teaching standards and better accessibility to the island. This growth is being registered in both the number of students visiting as well as the money they spend, says Ms Abela. On the last point, however, there appears to be a common belief that in spite of the large number of visiting students, their spending remains relatively low, contributing less

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

tourism School photos supplied by FELTOM

“If we look at the 2012 figures, students on average spent more per capita than normal tourists.” – Genevieve Abela foreign students to our island. Accessibility, she says, is key to the industry’s success. “We need to ensure easy and affordable access to our islands from as many destinations as possible. We know from the feedback we receive that every time we open a new destination we are also opening a new source market.”

“This industry has by far not reached a saturation stage.” – Mark Ransley than an average visitor to the economy. Is this the case? “Unfortunately this is a popular myth,” says Ms Abela. “If we look at the 2012 figures, students on average spent more per capita than other tourists. As a matter of fact, students on average spend more nights in Malta than an average tourist. However, when analysing the effects of tourists in our country, one needs to adopt a broader analysis that goes beyond the expenditure amounts and also look at, for instance, the multiplier effect, which is quite high for students due to the nature of their visit.” With little time left until the end of the year, the industry is already beginning to get hints of how business fared this year. Ms Abela says soft data indicates an increase in numbers – “however there are still a couple of months to go before one can safely say there has been a sustained general increase. First indications point that the source of growth came from the adult market.” Students hailing from European countries continue to be the main driving force, particularly from Italy and Germany, although Russia is also considered to be an important source. I ask Ms Valletta what measures the MTA intends to maintain in order to continue attracting

Mark Ransley, Director of EEC Language Centre, which has been in operation since 1999, says that one reason why EFL tourism has become an effective niche market within the tourism industry is due to the fact that “students’ motivation to study English in Malta is highly influenced by the holiday aspect of the trip – consequently they might be interested in the country’s culture, entertainment and all the other facilities that Malta has to offer.” At present, there are a total of 42 schools on the island. As an

operator in the industry, I ask Mr Ransley whether there are too many or too few schools to meet demands. “It is a relatively large number in proportion to the size of the country. Nevertheless, Malta does not have many big schools in comparison to other countries,” he says. He adds that as long as there aren’t too many big schools, there is no problem with retaining the current number of schools. The main problem, he says, lies with handling an increased number of students in the coming years during high season, between July and mid-September. “Many EFL schools cope with this huge inflow of students by looking for alternative classroom space, such as hiring government schools during the summer months and also by offering lessons both during the morning and the afternoon since most of the courses are of three hours’ duration per day.”

In spite of this, however, Mr Ransley notes there is certainly room for growth. While the investment made by the Government of setting up the EFL monitoring board and of rolling out advertising and promotion campaigns conducted by the MTA has proven to have a great impact on the continuous growth of TEFL in Malta, “this industry has by far not reached a saturation stage.” “Malta is now being considered as a centre of excellence in English language teaching thanks

to the high quality of our EFL schools. Due to the increase in adult students in the last few years, many EFL schools are acknowledging the importance of attracting high-end consumers by creating special programmes for business clients and English for specific purposes,” Mr Ransley explains. “This will increase inflow of students during the shoulder months. This sector has the potential to fill many classrooms during the low season.”

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

interview

‘30 new FDI projects to be approved by end of 2013’ – Minister Chris Cardona

By the end of 2013, Malta is expected to have attracted around 30 new projects that would involve foreign direct investment – with the majority of projects originating from the UK, Spain, Italy, Netherlands, France, Iceland and Israel. MARTINA SAID interviews CHRIS CARDONA, the Minister in charge of the economy, investment and small business, on the work being undertaken within his vast portfolio. Around 30 new projects that will create 500 new jobs and which will involve new foreign direct investment (FDI) in Malta are expected to have been approved by Malta Enterprise by the end of 2013, Minister Cardona reveals.

ing great strides in attracting and securing investment, and the number of FDI projects approved by the new board of directors in the last six months or so exceeds the number of such projects approved over the last few years.

In an interview with Business Agenda, Dr Cardona explains that under new management, Malta Enterprise has been mak-

Focus, he adds, is what’s driving Malta Enterprise forward – which helps attract investment from specific companies

in the right sectors from the right countries. “By the end of 2013, the number of new FDI projects in Malta approved this year should be of around 30, originating mainly from the UK, Spain, Italy, Germany, Netherlands, France, Iceland and Israel. A conservative estimate of employment generated by this new FDI within three years is not less than 500 new jobs,”

says Dr Cardona. “A further 200 jobs have already been generated by five major expansion projects that have a presence here.” One of these projects, Minister Cardona expands, was the result of initiatives undertaken before the change in government, but the rest are the fruit of intense investment promotion work undertaken by Malta Enterprise under this administration. Such intense investment promotion is also carried out abroad. In fact, Dr Cardona’s Ministry is working closely with Maltese embassies and foreign representatives to use all resources to promote foreign investment, with the aim of relaying the work done here beyond our shores. Which sectors are such foreign companies hailing from? “We’re succeeding mainly in the engi-

neering, life sciences, digital game production and ICT sectors in general. We should be on stream within the next two years at the most.” Dr Cardona says that work is also being carried out to promote Maltese direct investment, with a total of 35 additional new projects approved this year, together with three expansions, which will see small factories increasing their workforce by two or three employees and larger companies by 20 or more. I ask Dr Cardona whether the downsizing of large companies such as Baxter and Actavis earlier this year could ward off future investors rather than attract them. “No, not at all – it has actually had the inverse effect,” he asserts. “Investors see this as a chance to have more access to qualified human resources.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

interview Photo by Elisa Von Brockdorff

“We also received lots of complaints during the preceding administration and, of course, we signalled our position on the matter. We electorally pledged to reduce bureaucracy and are working strongly on it.”

The management of such companies can confirm that we have been working closely with them to smooth out the process.” Dr Cardona adds that focus on small businesses and SMEs will also form part of the EU 20142020 budget for Malta, through various schemes and financial help. “SMEs constitute more than 90 per cent of our business enterprises in Malta so we focused on financial help for this sector. We are also aiming to reduce government-induced costs and we have pledged a 25 per cent decrease in utility bills by March 2015, but in my opinion we need to help businesses earlier and send a strong message that we are here to make businesses flourish and be more competitive.” The same ethos applies to Malta’s manufacturing industry. Dr Cardona says that over the years, Malta naturally migrated away from the traditional focus of manufacturing, typically textile and labour-intensive work, to more sophisticated industries such as ICT and digital game production. “It was a natural progression, made due to our geographical location and a highly skilled labour force. Being very close to North Africa, the textile industry migrated there because labour costs are lower so it is more feasible.” But, he argues, the manufacturing industry is going through a ‘re-industrialisation phase’. “There was a time,” he continues, “when it was taboo to speak about the manufacturing industry but now countries are doing their utmost to help it, realising that you cannot have a strong economy without a strong manufacturing base. We have always advocated this fact, and so it is our responsibility to keep up the levels of competitiveness.”

In spite of the changes the industry is experiencing, it continues to be a stable one, he says. “There are always going to be emerging markets that could make life easier in financial terms, but we have to be firm on this.” As 2013 begins to near its end, what are the Ministry’s priorities for 2014? “To start reaping what we’ve been working on in the last eight months,” says Dr Cardona, “namely the real creation of employment and new jobs in the FDI projects we’re finalising, helping industry to be more competitive and participating more actively in EU structures.”

Another important issue being addressed by the Ministry, Dr Cardona explains, is the reduction of administrative burdens for enterprises operating in Malta: “administrative procedures are imposed on businesses irrespective of their size and their experience. We have to make it possible for enterprises to carry on with their business without unnecessary administrative hurdles. We’re not referring to illegal obstacles, but unnecessary burdens imposed on the sector.” He offers an example – “in the case of public procurement for unspecialised services, you cannot always impose a minimum expe-

rience of five years, because this would, in essence, be depriving enterprise.” Dr Cardona claims that it became clear through people’s complaints that something needed to be done to alleviate such administrative burdens for businesses. “We also received lots of complaints during the preceding administration and, of course, we signalled our position on the matter. We electorally pledged to reduce bureaucracy and are working strongly on it.” In concrete terms, he continues, Government, together with the Director of Contracts, revised the way tenders are issued and to this effect the requirement for certain per-

formance bonds as well as bank guarantees has been removed. How does such simplification really benefit the business community? Dr Cardona affirms that it presents the opportunity for many to participate more directly in domestic business activity. “It helps in granting the possibility to many more enterprises to participate in the tendering process rather than having just a handful of contractors who permanently receive the same tenders over and over again. Fragmenting the market doesn’t mean making it vulnerable; it means helping enterprise grow.”

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

interview

Malta & the UK: Seizing Bilateral Opportunities As the UK economy gains ground for the first time since the financial crisis, Jo Caruana meets British High Commissioner to Malta Rob Luke to discuss our islands’ unique relationship, as well as to discover the plethora of economic opportunities that could lie ahead if both countries work in tandem. The British economy is turning a corner: the International Monetary Fund recently upgraded its forecast of UK GDP growth to 1.4 per cent for 2013 and 1.9 per cent for 2014, while unemployment fell to 7.7 per cent in August. From its peak, the deficit is also down by a third as a percentage of the GDP. “The UK economy has happily returned to growth,” states British High Commissioner to Malta Rob Luke. “But the recovery is in its early stages and risks do remain.” “Our Chancellor of the Exchequer George Osborne has been clear that there is a long road ahead; we should not be complacent but work hard to kick-start growth, create jobs, boost competitiveness and recognise that we have to keep a close hand on public spending. We also have to create the best-possible business environment for our firms, whether locally or at an EU and international level.” In keeping with this, Mr Luke is also eager to see the results of the removal of outstanding EU barriers to trade in services, which could deliver a boost to the EU economy of 1.8 per cent of EU GDP. Additionally, there is the Transatlantic Trade and Investment Partnership to think about, which would be worth €120 billion annually and is currently in the early stages of negotiations. “The work we do at the High Commission is very much in two

Photo by Lionel Galea

“I would like to see more British business present here, as well as partnerships with local companies to target third world markets.” components. We strive to support British businesses in the Maltese market, as well as those that are looking to join the market – that is vital. However, at a political level, we also encourage multilateral and bilateral agreements that stand to benefit the economy at large,” he says.

Asked about Britain’s commercial relationship with Malta, Mr Luke, who joined the diplomatic service 13 years ago, states that it is substantial – with bilateral trade of €500 million per year. “It’s growing,” he says. “But, in my view, we should aim to do even better. I would like to see more British

business present here, as well as partnerships with local companies to target third world markets, perhaps in Libya or countries in the Middle East.” Already, and for many years, there has been a very diverse range of British companies choosing to base some or all of their operations in Malta, including financial services, professional services (such as legal companies), manufacturing, telecoms, education, creative industries and digital services. “These strong connections share

such an important history, which is why it doesn’t surprise me that Malta and Britain’s relationship is still so strong and varied, almost irrespective of geography. “Within the High Commission, I believe that our role lies in continuing to update this relationship, to ensure that our presence here isn’t ‘historic’, but active in making new business happen. I feel strongly that the local business environment is excellent for British firms – they feel comfortable here, just like British tourists do – so I am very keen to encour-

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

interview at the same time, I wouldn’t want to neglect traditional bilateral strengths, such as the financial services.” Asked about whether he believes there are any sensitive issues that need to be tackled by the Maltese Government, Mr Luke states that he doesn’t think our local issues are any more sensitive than those in the majority of EU member states. “Obviously there are unique challenges that the islands face,” he says. “These include the sustainability of our energy

the future, Mr Luke, who will be spending the next three years in his local role, believes that seizing prospects will really set the island up for success. “There are so many opportunities for Malta and its business partners in terms of trade with North Africa for instance, as well as with regards to Malta’s status as a transhipment hub for both maritime and aviation. This is an area of great potential in my opinion, and I do hope we can work closely together for its development and success.”

“Our presence here isn’t ‘historic’, but active in making new business happen.” and encouraging more women into the workforce, for instance, but I do believe the Government is committed to tackling both of those. It makes sense to take logical steps that will ensure long-term economic growth. Photo by Lionel Galea

age more business people to come over to experience it for themselves, and to take advantage of the benefits.” Mr Luke explains there is a range of factors that ensures British companies feel comfortable here,

including the highly-educated and English-speaking workforce, and the clear-but-simple regulatory environment. “I am eager to see all sorts of sectors develop, in line with Malta’s clear plus-points. We need to

look at emerging opportunities, relating to the digital economy, for instance. Malta has certainly carved a niche for itself in this area, as well as with regards to the creative industries, and we do need to focus on them. But,

“In terms of bilateral trade, I would certainly applaud the Prime Minister’s openness to meet with business leaders, including those from the UK. I think that is something our respective prime ministers share – a desire to see what deals can be done and what opportunities seized.” Looking to

Speaking personally, Mr Luke is also looking forward to his next three years here, along with his wife and young family. “This has been a busy first year for us but I think we’ve only just scratched the surface of what to expect from our time here, as well as what I would like to achieve. The ‘Maltese island experience’ has been wonderful so far and we feel very privileged to be here. I intend to make it as successful as possible, for all involved.”

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

finance

Financial Services:

Aiming Higher

Malta’s financial services sector has certainly proved its worth within the economy over the past couple of decades – but can that growth be sustained and even built further? Jo Caruana talks to three locals experts to find out more.

“The financial services sector has blossomed from a vision to a pillar in our economy.” – John A. Huber

Looking back a couple of decades it may then have seemed impossible for Malta to have a strong financial services sector. However, fast forward a few years and that sector is now one of the strongest within the economy, with a far reaching remit that services international clients and creates vast numbers of local jobs. So, how exactly has this oncebudding sector transformed itself into a successful industry? Explaining his sentiments on the subject, John A. Huber, Managing Consultant at John Huber & Associates, believes that the financial services sector in Malta has performed brilliantly, “especially when taking into consideration that ours is a young country in this area,” he says. “It has blossomed from a vision to a pillar in our economy. The factors behind this success are

different but complementary; the maturity of our legislators when consensus was sought in Parliament on the enactment of the various acts of legislation, the regulator – strong but approachable, the communications infrastructure, the high quality of human resources and, I would also add, the relative simplicity of the tax regime where an investor needs not be a tax professor to understand it. Not to mention the use of English language here, which is always an advantage.” Agreeing that the performance of the financial services sector in Malta is generally good and of a relatively high quality, Jesmond Pace, Managing Director of the FACT Group, explains his thoughts. “Personnel here are highly qualified and well trained, which is extremely important. That said, I also believe our jurisdiction is not one of the cheapest and we have to do our best to remain attractive in efficiency,

products and fees.” Bearing in mind the undisputed fact that the financial services sector has exploded in the last two decades, can we look forward to more growth in the future? According to Dr Nicole’ Saliba, an associate within the Financial Services Department of MamoTCV Advocates, it is the local financial services regulator that has largely contributed to Malta’s success story in this area. “Since Malta’s accession into the European Union, our legal and regulatory framework has developed and transformed into an EU-compliant regime, while still retaining flexibility in the development of domestic rules and regulations,” she explains. “The flexibility afforded to promoters in structuring operational setups in Malta has led to the Professional Investor Fund regime being a success, which has in turn attracted substantial, diver-

sified business to the country, subsequently highlighting Malta as an ideal domicile of choice for the setting up of alternative investment funds. “Nonetheless,” she adds, “there is still room for growth in other sectors of the local financial services industry. I believe the regulator should continue to promote and enhance the beneficial features which give Malta its competitive edge over other jurisdictions. This will help to penetrate new potential markets and attract more business in other areas of investment services, such as the pension funds industry, banking, retail funds industry and the payment services sector.” Asked whether joining the EU helped to build the local financial services sector, Mr Huber explains that he certainly thinks so, believing that EU membership was crucial for Malta to

“EU membership has certainly enhanced Malta’s brand in the financial services sector.” – Dr Nicole’ Saliba

“Personnel here are highly qualified and well trained, which is extremely important.” – Jesmond Pace

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

finance establish itself in this area. “We were also extremely diligent in being the first to adopt EU Directives on financial regulation,” he says. “We surpassed scrutiny when it came to both Code of Conduct and State Aid Monitoring, and this gave us added impetus as it made us a well-regulated centre. The fact that we are in the EU, and have agreed with the EU on our fiscal regime, are also both determining factors in our success.” Now, looking to the coming years and whether future EU legislation could have a negative impact on

this sector, Mr Pace explains that there is an increased number of international laws that are aimed at limiting sophisticated structures that add no value. “These are seen as schemes and will be attacked,” he says. “Malta must not be used for such schemes. “Plus, as competition by other jurisdictions increases we must be ready and quick to adjust for these new entrants. Additionally, the international harmonisation of certain tax conventions will doubtlessly affect Malta's position and we must not take things for granted.”

Mr Pace, meanwhile, believes we have reached certain maturity and saturation when it comes to certain financial products, but explains that he thinks we can do more to reach new markets, in particular in the case of countries where Malta has not become known. “Government policies, bilateral treaties and collaborative activities and marketing will all help,” he says. “In this respect, Malta needs to continue its growth by allowing itself to be innovative in creating its products. But, more importantly, Malta's products must not harm the most essential attributes that this industry already has, namely quality, credibility, reliability and a stable jurisdiction. We must safeguard the respect we have gained to date within the international field. Growth will be both certain and gradual as long as our good reputation remains solid. I also believe in the importance of all our political parties uniting on this matter, every single time we launch or discuss our jurisdiction.” Mr Huber is cautious too, stating that we do need to be careful when we make future moves within the sector. “There are countries that envy our success,” he says knowledgably. “And when I state 'we' I do mean everyone – the Government, practitioners, regulator and anyone that has even the most remote contact with the investors.” Finally, Dr Saliba also gives her opinion on how Malta’s financial sector has been influenced by our EU membership. “EU membership has certainly enhanced Malta’s brand in the financial services sector, and this is confirmed by fund promoters and other non-EU investment service providers that have opted for Malta in view of the fact that it is well-regulated in compliance with EU law whilst still being a competitive jurisdiction. “While the implementation of EU legislation into the domestic legal framework has, over time, reduced certain flexibilities that were previously afforded in the setting up and operations of collective investment schemes and other investment services firms, the quid pro quo is that operators inside and outside the EU have been successfully targeting Malta. They have come to see us as the centre of their operations to service clients throughout the EU by exercising their freedom of establishment rights through a pan-EU passport afforded under a harmonised EU financial services framework. The fact that this could be done without them incurring additional costs in seeking authorisations from other host states but through simplified regulator-to-regulator notification procedures, has definitely been positive and augurs well,” she adds.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

business

The EU Framework Programme 2014-2020: Horizon 2020 and COSME As the EU’s Competitiveness and Innovation Framework Programme (CIP) instrument is coming to an end, new programmes will be commencing as of January 2014. This article provides an overview of Horizon 2020 and COSME, the new EU funding instruments for SMEs that will run for the next seven years.

Horizon 2020 Running with a budget of just over €70 billion, the EU’s new programme for research and innovation, Horizon 2020, is part of the drive to create new growth and jobs in Europe. Horizon 2020 is the financial instrument implementing the Innovation Union, a Europe 2020 flagship initiative aimed at securing Europe's global competitiveness. International cooperation will be an important cross-cutting priority of Horizon 2020. In addition to being fully open to international participation, targeted actions with key partner countries and regions will focus on the EU’s strategic priorities. Through a new strategy, a coherent approach to international cooperation will be ensured.

What are the novelties in Horizon 2020 compared to the previous FP7 programme? Horizon 2020 will be made up of a new structure consisting of three pillars with similar rules for the entire programme. These three pillars are: excellent science, industrial leadership and societal changes. A major novelty of Horizon 2020 will be the simplification of rules for participation, particularly with regards to the funding model where all types of participants receive similar funding rates in accordance with the activities undertaken. Horizon 2020 will place stronger emphasis on industry, innovation, linking research to deployment, market application and impact.

Horizon 2020 will combine all research and innovation funding that was previously provided through FP7, CIP and the European Institute of Innovation and Technology (EIT). The aim is to facilitate a smoother transition from strategic and applied research to deployment and application. How does Horizon 2020 support the former CIP programme activities? Horizon 2020 will combine all research and innovation funding that was previously provided through FP7, CIP and the European Institute of Innovation and Technology (EIT). The aim is to facilitate a smoother transition from strategic and applied research to deployment and application.

The former CIP activities are expected to be implemented through the industrial leadership pillar and partly through the societal challenges. The industrial leadership includes commercially oriented activities such as risk finance/access to less risk-adverse loans and a sub-programme dedicated to research-intensive SMEs. Under the societal challenges, close-

to-market activities will be implemented through prototyping, testing, piloting, demonstration and large-scale product validation, and market replication. Support to pre-commercial public procurement and public procurement of innovative solutions are also included.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

Business transnational issues so that through economies of scale it can be more effective at the European level. Who can benefit from these funds? Small businesses and entrepreneurs requiring easier access to funding for development, consolidation and growth of their business as well as future entrepreneurs requiring assistance in setting up their own business can benefit from the COSME programme. National, regional and local authorities are also able to ben-

COSME will aim to encourage an entrepreneurial culture in Europe that stresses competitiveness, risk-taking and creativity. It will also seek to increase the sustainable competitiveness of EU companies as well as to help small businesses operate cross-border and to improve their access to markets. COSME (Competitiveness of Enterprises and SMEs) COSME is the new Programme for the competitiveness of enterprises and SMEs, which will run with a planned budget of €2.3 billion. The objectives of COSME will be to facilitate access to finance for SMEs and to create an environment that is favourable to business creation and growth. COSME will aim to encourage an entrepreneurial culture in Europe that stresses competitiveness, risk-taking and creativity. It will also seek to increase the sustainable competitiveness of EU companies as well as to help small businesses operate cross-border and to improve their access to markets. Just like Horizon 2020, COSME will ensure continuity with initiatives and actions already undertaken under the Entrepreneurship and Innovation Programme (EIP), such as the Enterprise Europe Network (EEN), and will build on results and lessons learnt. COSME will retain the many successful features of the EIP whilst also simplifying management of the programme in order to make it easier for entrepreneurs and small businesses to benefit. Furthermore the COSME programme will specifically tackle

efit from the COSME programme with tools that effectively can reform policy; for instance EU wide data and statistics, best practice tools for financial support to test, and scale up sustainable solutions for improving global competitiveness. How will these funds impact competitiveness of businesses? COSME is expected to contribute to an annual increase of €1.1 billion in the EU’s GDP. The EEN is expected to assist 40,000 companies with partnership agreements, resulting in 1,200

new business products, services or processes annually and €400 million annually in additional turnover for assisted companies. Access to finance will be made easier for entrepreneurs, in particular those willing to launch crossborder activities, resulting in an expected annual increase of €3.5 billion in additional lending and/or investment for EU companies. Source: European Commission DG Enterprise & Industry and DG Research & Innovation.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

business update

SmartCity Malta: SUPPORTING LOCAL ENTREPRENEURSHIP AND A STRONGER START-UP COMMUNITY

SmartCity Malta is a joint venture between the Republic of Malta and SmartCity Dubai, an international organisation that develops and manages a global network of self-sustained business parks dedicated to the knowledgedriven industries. Developing a state-of-the-art international work-play-live business park for knowledge-based companies, SmartCity Malta offers a blend of places for work and leisure – all designed following international sustainability standards. Business partners at SmartCity Malta also benefit from the expertise and resources acquired from the business clusters in Dubai, including Dubai Internet City and Dubai Media City. In today’s ICT-enabled knowledge economy context, SmartCity Malta offers the country’s most advanced and reliable ICT infrastructure able to meet the high technical requirements of mission-critical digital operations. As regards office space, full flexibility in terms of size is available, from large open plans of hundreds of square metres to fully fitted-out ready-to-occupy units reasonably sized for an up to six-seven person operation. These ‘Plug & Play’ units with pre-installed service connections, equipment and amenities, allow for prompt initiation of business operations with minimum effort and investment. Equipped, dedicated meeting, conferencing and networking facilities are also conveniently located in the same area as the Plug & Play

units. In this context, SmartCity Malta offers the ideal launch pad for international companies wanting to explore or service the European and/or North African market from Malta, as well as start-ups and small businesses. In line with its vision to provide as much support as possible to start-up ideas and see them flourish, last June, SmartCity Malta hosted the first Startup Weekend on the island, whilst in October, it partnered once again with the Startup Weekend community to organise the follow-up training and coaching programme, NEXT. The not-forprofit Startup Weekend event in June entailed a weekend-long, hands-on, fun experience where current and aspiring entrepreneurs had the opportunity to find out if their business ideas were viable, whilst getting the full start-up experience themselves. A jury assessed a number of pitched business ideas, with the top three being Crwd Gift, Dash Thru and Sa˙˙a. Following up and building upon this Startup Weekend event, NEXT is a five-week ‘preaccelerator’ programme for early start-ups, rooted in Steve Blank’s Customer Development methodology and driven by mentors and unique video content from successful start-up founders. The programme aims to teach local entrepreneurs how to challenge their business assumptions, understand customers and validate products. The NEXT

programme is therefore helping founders raise their Entrepreneurial Quotient and increase their opportunity for success with their start-up. It is turning out to be another successful event where start-up teams are learning how exactly to develop their business ideas thanks to excellent entrepreneurial education. One of the specific objectives of the NEXT programme is to get the teams ready to pitch for seed capital. This first Maltese edition of NEXT, one of the 23 worldwide editions this autumn (amongst the ones in Silicon Valley, Melbourne and London) has been open to all interested start-up teams, both those who formed during the June Startup Weekend and new ones. The seven participating teams are at different stages of developing their start-ups. Whereas one of the participating projects will launch its first, beta services in a couple of weeks, others have well-defined objectives based on

market research and financial analysis but joined NEXT in order to verify their assumptions and avoid possible mistakes which may be very costly during further development stages. The remaining teams are at a very early stage of development, still in the process of validating the market and defining the details of their offerings. The entire group is very wellbalanced in terms of professional skills and experience, as the attendees’ areas of expertise range from IT, programming, accounts, academic research and medicine. Some of the attendees also bring in their experience of past successes and failures in terms of start-up-related projects. These factors make the discussions during each session very interactive and interesting, with various points of view expressed and often backed up by concrete examples from each individual or team’s own experience. Mentors are also actively

involved in the discussions and provide several valuable inputs. NEXT at SmartCity Malta concluded on 16th November with a Final Presentations Day and Tech Open Coffee where prominent players from the local and international start-up scene, including Alex Kolpin, WestTech Ventures Partner and Hasan Haider, CEO of Bahrain’s first Business Angels company, were in attendance. This event was an excellent opportunity for startup teams and individuals to meet and network with peers and entrepreneurs, and build prospects for the future.

For further details, email info@ smartcitymalta.com.mt, follow www.facebook.com/pages/SmartCity-News or join www.facebook. com/groups/StartupSmartCity/

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

EU policy

Food Inspection Controls: New EU rules could mean new costs for hospitality businesses Omar Cutajar, Permanent Delegate, MBB Brussels Office, analyses the impact of the EU’s new proposals on food inspection. The cost of official food inspection controls could be borne by restaurateurs and catering food operators if a proposal, tabled by the European Commission, for a revision of the regulation on official controls in the food chain is approved. A new Commission proposal for a regulation on official controls in the food chain came in the wake of the horse meat scandal and is construed as the EU’s response to better prevent food frauds. The new regulation sets out new obligations for member states to perform regular controls to check the likelihood of food

frauds whilst ensuring that penalties for fraudsters outweigh the potential economic advantage that could be gained from any fraudulent activity. According to the existing regulation on official controls, there is no obligation for national control authorities to charge fees for food inspections in restaurants, which allows for the current situation, whereby, contrary to some other EU countries (like Sweden, Belgium and Finland), the Maltese Food Health Inspectorate does not levy charges for carrying out what is essentially a public service.

An exemption for microbusinesses... not enough! However, the Commission proposal for a new regulation abolishes the freedom granted to member states’ food health inspectorate authorities with regard to whether inspection fees should be charged or otherwise to restaurateurs. The proposed new regulation not only abolishes this freedom, in clear contravention of the subsidiarity principle, but it also provides that national authorities should have an obligation to collect fees from all food business operators in order to recover the costs of official controls. The

The MBB augurs that the co-legislative procedure will at least redress this grave shortcoming and provide the necessary deliberations on the critical issue of additional induced costs to food business operators as a result of mandatory food inspection fees.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

EU policy new regulation also provides for an exemption to micro-enterprises implying that several food and catering businesses would in any case be exempt from meeting the costs of the food hygiene inspection fees should the Commission proposal enter the statute books. Though, undoubtedly, microbusinesses do represent the vast majority of hospitality enterprises in the EU, which would therefore be automatically excluded from the scope of this new regulation on official food inspections, it is also pertinent to note that a number of restaurant businesses employ well over the 10-employee threshold used to classify a business into the micro-enterprise category. This is certainly the case in Malta where a significant number of restaurants and other food business operators would be severely affected should the inspection fees’ bill have to be footed by operators themselves. No to additional administrative costs! Consequently, Maltese business strongly opposes the Commission’s proposal since the introduction of a mandatory system of inspection fees will inevitably generate a new direct financial burden on the local hospitality industry at a time when all stakeholders should be focused on facilitating even further the buoyant performance of the sector. The potential introduction of mandatory food inspection fees would also generate an inflationary impact along the entire food supply chain since the additional costs will ultimately be also transmitted down the chain to suppliers of food products, thereby contributing to a higher retail bill for consumers. The obligation to collect fees also runs counter to the very notion that food inspectorate authorities are there to deliver a public service, which should be therefore primarily financed via general taxation schemes and not through an additional government revenue stream at the expense of food business operators. It is also hard to countenance the introduction of an obligation to collect fees when, across the EU, there is no evidence whatsoever that national food inspection authorities are facing abnormal financial difficulties. Moreover, there is little reason to believe that mandatory fees would somehow or other improve the effectiveness and quality of the food hygiene inspections carried out across the food supply chain. As argued by HOTREC (the umbrella association of hotels, restaurants and cafés in Europe) in its policy statement on the draft EC regulation, mandatory fees applicable to the entire food chain would serve if anything as an incentive for poor management.

No, to the violation of the principle of subsidiarity Besides the clear concern about the financial impact of mandatory fee inspections, Maltese business is once again being confronted by another EU initiative that runs counter to the principle of subsidiarity and critically to the much-vaunted Better Regulation Agenda. An EU-wide obligation to charge fees for food inspection in restaurants would contradict the principle of subsidiarity given that restaurants provide only local services with no impact whatsoever on EU cross-border trade. The fact that national authorities

in some member states charge inspection fees in restaurants, while authorities in other member states do not, has absolutely no bearing on the European single market. Equally regrettable is that the Commission proposal fails to identify the costs on hospitality business, fuelling further the feeling among local economic operators that the Better Regulation Agenda is nothing more than lip service. The MBB augurs that the co-legislative procedure will at least redress this serious shortcoming and provide the nec-

essary deliberations on the critical issue of additional induced costs to food business operators as a result of mandatory food inspection fees. The recommended outcome would therefore be the retention of similar flexibility arrangements afforded by the current regulation. From a Maltese hospitality business perspective, the desired legislative outcome is to allow member states to retain the option not to levy the inspection fees to food business operators solely providing local services, such as is clearly the case with

restaurants, cafeterias, bakeries and catering businesses. The rationale of the Commission proposal of mandating the cost recovery of food inspection should thus be limited, if at all, to those instances of cross-border trade in food products, which as recently demonstrated by the horse meat scandal, is the real weak link in the current food inspection and monitoring systems within the European Union.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

Business News MBB Update 2nd October –

10th October –

MBB CEO participates in a conference on MBB President the Implementation and Enforcement of participates in a EU Environment Legislation panel debate during MBB CEO Joe Tanti participated in a round-table conference entitled ‘Working together to improve and innovate’. It was aimed at providing information on the implementation and enforcement of EU environment legislation. The international conference took place in Malta between 1st and 4th October. The conference was organised by the European Commission, the European Network for the Implementa-

tion and Enforcement of Environmental Law (IMPEL) and MEPA.

Mr Tanti was invited to speak on the issue of ‘overcoming obstacles to the full implementation of EU environmental legislation’. The panel was moderated by John Seager, who is Chair of IMPEL. Other speakers included Karl Falkenberg – Director General DG-Environment European Commission,

Jeremy Wates – Secretary General European Environmental Bureau, Ed Mitchell – Director of Environment and Business, Environment Agency of England, and Giuseppe Montesano, Chairman of the Environment Working Group BUSINESSEUROPE.

a MEUSAC Business Breakfast

2nd to 5th October –

MBB Executive participates in One Young World Summit in Johannesburg, South Africa MBB President George Vella was invited to participate in a panel debate discussing Malta’s progress in industrial competitiveness. The Business Breakfast, entitled ‘Europe: from crisis to recovery’, targeted the business sector in Malta and participants were briefed about the European Commission’s Competitiveness Report for 2013. This seminar sought to identify opportunities to make European

industries, particularly those in the manufacturing sector, more competitive. Other panellists included Mr Gérald Petit – Policy Analyst, DG Enterprise & Industry European Commission, Mr Andre Fenech – Head of Policy Development of Malta Chamber, and Dr Mario Vella – Chairman of Malta Enterprise.

10th to 11th October –

Conference on ‘Skills needs in greening economies’ in Brussels

MBB Executive Mark Seychell was invited to participate in the annual summit organised by ‘One Young World’. This summit brought together 1,300 delegates from all over the world to debate and formulate solutions on the pressing issues that the world is facing. The topics discussed this year revolved around, among others,

global business, sustainable development, as well as youth unemployment. The discussions took place in plenary sessions as well as several workshops that provoked innovative thought and discussion. Leading speakers included founder of Virgin Group – Sir Richard Branson, CEO of Barclays Bank – Anthony Jenkins, Editor of The

Huffington Post – Arianna Huffington and Economist and Social Business exponent – Professor Muhammad Yunus. Mr Seychell’s visit was sponsored by One Young World.

MBB CEO Joe Tanti participated in a conference organised by BUSINESSEUROPE, the European Trades Union Council (ETUC), the European Association of Craft and SMEs (EURAPME), and the European Centre of Employers and Enterprises providing Public Services (CEEP). It aimed at providing information on skills in greening economies. The conference sought to enhance the exchange of experience between trade unions, public and private employers (including SMEs), and to foster discussion at both national and European levels between social partners on

lifelong learning development of competencies and qualifications in Europe, in the context of greening economies. The ‘Skills needs in greening economies’ project takes place within the context of the Integrated Programme of the EU Social Dialogue 2013-14. It serves to underline the important role played by trade unions, employers’ organisations and individual employers in supporting the Europe 2020 strategy’s goal of turning the EU into a smart, sustainable and inclusive economy capable of delivering high levels of employment, productivity and social cohesion.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

mbb update 15th October –

18th October –

BUSINESSEUROPE Working Group meeting

MBB participates in a public event in Gozo organised by the European Parliament Information Office

Topical issues on access to finance for SMEs, the proposal on a Banking Union and the current review of the EU solvency policy review were on the agenda of the most recent Financial Affairs Working Group of BUSINESSEUROPE. The meeting was attended by Teodora Suciu, who is currently assisting the Permanent Delegate at the MBB’s Brussels office. The working group meeting provided an update on EU develop-

17th October –

ments in financial matters. The topics discussed during the meeting were access to finance, as well as the EU’s initiative for a Banking Union which entails A Single Supervisory Mechanism. Another topic that was discussed during the meeting was the Single Resolution Mechanism, which the European Commission would be empowering itself to place a bank in resolution as well.

MBB CEO Joe Tanti participated in an event organised by the European Parliament Information Office in Malta. The event focused on the needs of Gozo and what is expected from the European Parliament in view of its particular status. During the event the areas of business and investment, fisheries and agriculture, and employment were discussed. Mr Tanti moderated the business and investment workshop. A number of prospective MEP candidates were present for a debate that focused on Gozitans’ expectations and perspectives of the EU and the European Parliament. The debate was moderated by Vanessa Macdonald, business editor for the Times of Malta.

MHRA CEO elected to HOTREC’s sectorial 19th October – social development MBB participates at the 2nd committee International Crowdcon in Berlin, Germany

MHRA CEO Andrew Agius Muscat was elected a member of the committee dealing with sectorial social development. This is a committee set up by the European organisation encompassing all the private sector hospitality industry associations within the European Union (HOTREC). Mr Agius Muscat said “it is a great honour for Malta and myself to be elected to this prestigious and dynamic committee, and I value this appointment as it enhances Malta’s presence within the EU hospitality industry.”

MBB Senior Executive Daniel Debono participated at the 2nd International Crowdcon in Berlin that was organised by the European Crowdfunding Network (ECN). Crowdfunding is an alternative financial model of raising finance that is growing rapidly throughout Europe. This is done through the collective effort of individuals who network and pool their resources

to support efforts initiated by other people or organisations, usually via or with the help of the internet. The conference brought together many exponents of crowdfunding platforms operating across Europe who shared their experience in using innovative means to support entrepreneurs (particularly startups) through donation, reward, lending and equity models.

The European Crowdfunding Network (ECN) promotes crowdfunding as a viable offering of job creation and social innovation, and a boost to entrepreneurship to the European public, policy makers and stakeholders. It also creates and influences the political discourse regarding crowdfunding within the European Union.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

mbb update 23rd October –

24th to 26th October –

John A. Huber elected MBB coordinates on the Eurochambres Portuguese business Budgetary Committee delegation visit to Malta during the 114th Plenary Assembly held in Istanbul John A. Huber, a former MBB President between 2010 and 2012, and now Council member of the Malta Chamber, was elected on the Eurochambres Budgetary Committee. The main role of the committee is to oversee the organisation’s overall finances and present them during plenary assemblies in which all the European Chambers are represented. Andre’ Fenech, Head of Policy Development at the Malta Chamber and Mr Omar Cutajar, the Permanent Delegate of the MBB in Brussels, also participated at the Eurochambres’ 114th plenary assembly that was held in Istanbul. They had the opportunity to meet and discuss bilateral cooperation with 46 other foreign delegations.

CEDEFOP NOMINATION MBB would also like to announce that John A. Huber was nominated on the CEDEFOP Governing Board. CEDEFOP is the European Centre for the Development of Vocational Training to support the development of European vocational education and training (VET) policies, and contributes to their implementation.

An employers’ delegation from CEVAL, a business confederation based in the Alto Minho region in Portugal visited Malta to explore

means of collaboration with various Maltese stakeholders. The delegation that was led by the President of CEVAL, Luis Ceia, had the

opportunity to meet and network with various government authorities as well as business associations; among others, the Malta

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

mbb update Tourism Authority, Malta Enterprise, Malta Chamber, MHRA and the recently set-up PortugueseMaltese Business Council within the Malta Chamber. A number of project initiatives were discussed for potential collaboration between Malta and the Alto Minho region. The possibility of offering technical assistance in the development of industries where the respective parties are considered to be best practices was agreed upon. For instance Alto Minho has much

to learn from the Maltese tourism industry, while Malta can benefit from the region’s expertise in the renewable energy industry. The delegation had the opportunity to meet the Minister for Tourism – Karmenu Vella and Parliamentary Secretary for Competitiveness and Economic Growth – Edward Zammit Lewis.

14 to 15th November –

MBB President invited to address a workshop on ‘Financial Instruments key to the future of SMEs’ held in Brussels MBB President George Vella was invited to address a workshop on the ‘Financial instruments key to the future of SMEs’ that was held in Brussels. The workshop was organised by Mediterranean Bank Network in collaboration with the Malta Business Bureau. The workshop sought to help raise aware-

ness about the opportunities and considerations involved in creating and utilising financial instruments to be launched for the EU Financial Perspective (2014-2020). The workshop also highlighted (EBRD) priorities in the Southern and Eastern Mediterranean (SEMED) region. The discussions raised during the

event shared the best practices among financial services players and EU institutional players on financial engineering instruments, risk sharing instruments and guarantee instruments.

19th November –

MBB CEO invited to participate in a CEDEFOP workshop in Thessaloniki, Greece MBB CEO Joe Tanti was invited to participate in a workshop on ‘The political and institutional landscape of work-based learning in CVET Europe’ in Thessaloniki, Greece. The event was organised by CEDEFOP. The workshop was targeted at European and national policy-makers, stakeholders, researchers and experts, who show a professional interest in work-based learning in continuing vocational education and training (CVET). The issues that were discussed during the workshop were the results of the first interim phase of the European study that CEDEFOP is currently carrying out on workbased learning approaches in CVET in Europe: policies and practices. The key questions and challenges arising from these initial results were addressed during the workshop together with suggestions to improve and adjust for the next phases of the study. Mr Tanti’s visit was supported by CEDEFOP.

21st November –

Business Seminar on ‘Tendering opportunities for SMEs’ as part of SME Week 2013 activities As part of this year's SME Week activities, a full day event was organised on ‘Tendering opportunities for SMEs’ with the support of the Ministry for the Economy, Investment and Small Business. The morning session, which was chaired by MBB CEO Joe Tanti, was coordinated by the Malta Business

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

mbb update Bureau and Malta Enterprise. It focused on ‘Participating in international tenders’ and was aimed at those companies that would like to direct their business development strategies towards international procurement. The participants were addressed by Toni Saraiva from the European Information Services Centre (EISC Ltd), who presented the latest procurement trends and the processes companies should undergo to identify and submit for international tenders. Nadia Costacurta, an official from DG Markt European Commission followed with a presentation on the legislative framework of EU procurement rules. A joint presentation was also given by Brigitte Tanti from the European Enterprise Network (EEN) and Klaus Pedersen from Malta Chamber’s Internationalisation Desk, on the potential of developing a business support service to support the access of procurement in the Euro-Med region. A panel debate then followed, showcasing the experience of a number of Maltese firms that successfully competed for international tenders. These included Ivan Bartolo – 6PM, Mark Attard – Orion, Anthony Diacono – Medserv and Mark Zahra, from James Catering Services. The discussion was moderated by Joe Schembri – Chief Officer for Trade, Investment and Enterprise Support at Malta

Enterprise. The morning session was also addresses by the Minister for the Economy, Chris Cardona.

upcoming events

Following a networking lunch, an afternoon session, coordinated by Malta Chamber and moderated by Head of Sectors Lino Mintoff, focused on ‘Facilitating public procurement procedures for SMEs’. An introduction was made by Malta Chamber’s SME and Family Business Committee Chairman, Frank V. Farrugia.

Business seminar on ‘Guide to cross-border credit and claims management within the EU’

The session was then addressed by the Department of Contracts Director, Anthony J. Cachia, who presented a brief outline of the recent measures launched by the Department to facilitate and simplify public procurement procedures. It was followed by three case studies, whereby operators coming from the ICT, health care and general supplies and services sectors, gave a hands-on perspective of the public procurement procedures in their own sectors. In conclusion, a panel discussion provided its reactions and comments to the seminar proceedings and how these procedures could be further fine-tuned. The closing remarks were delivered by the Permanent Secretary for the Ministry for the Economy, Paulanne Mamo.

16th January –

The Malta Business Bureau, in collaboration with the European Commission’s Directorate-General for Enterprise and Industry, will host a business seminar on the issue of cross-border credit and claims management within the EU. SMEs often find it too daunting, complicated or expensive (consulting fees, legal counsel, docu-

MBB executive team

ment translation, etc), to pursue legal action when needed, against companies or individuals in other member states. They are often also afraid that they will not get paid. The business seminar on crossborder credit claims management is one of a series of events that is being held in all EU member states. Its purpose is to help SMEs

The MBB would like to welcome Justine Cuschieri and Solange Vella who have joined the executive team as interim projects assistants. Solange Vella is a Masters graduate in MA Human Rights and Democratisation, and Justine Cuschieri is currently reading for a Masters degree in European Studies. The MBB also welcomes Teodora Suciu, who has been accepted as an interim stagiaire to assist the Permanent Delegate in Brussels.

to understand what options are available to them for successfully managing cross-border credit and for recovering cross-borders payments. This will also help increase their overall business efficiency and competitiveness. For more information contact the MBB on info@mbb.org.mt or 2125 1719.

Meanwhile, former MBB Executive Mariella Scicluna has recently moved to the European Union Programmes Agency (EUPA) as Head of Programmes. On behalf of the team, CEO Joe Tanti would like to thank Ms Scicluna for all her dedication and commitment throughout the years spent at the organisation. Mr Tanti congratulates Ms Scicluna for the new position and wishes her all the best for this new endeavour.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

business

Start-up companies

dos and don’ts

Starting up a business can be daunting, but knowing what to expect can make all the difference. Aside from passion and drive, there are a number of things you need to do before diving right in. SARAH MICALLEF looks into the dos and don’ts of start-ups.

Patrick Hall

DO Create a business plan A sound business plan is the key to starting off strong and staying that way. It will help you analyse whether there is a market for what you are doing and what the profit potential for the business is, and guide you in all your business decisions. Patrick Hall, from DF Business Advisory, believes that a good business plan is the secret to a start-up’s success. He explains, “coming up with a business plan can help you avoid sinking your time and money into starting a business that will not succeed by testing the feasibility of the business idea.” The process of formulating a business plan will require you to analyse the broad operational and financial objectives of your new business, as well as to budget and to draft a market plan. You can also utilise it to persuade bankers or investors to lend money. Mr Hall maintains, “you need both operating and start-up capital to start a new business, and have

no hope of getting money from banks, venture capitalists or business angel investors without a well-developed business plan. A presentation may pique their interest, but they'll need a well-written document they can study before they'll be prepared to make any investment.”

DO Analyse the market It is essential to do your homework on your target market, in order to ensure proper pricing and placement, making your company a powerful force in a competitive business landscape. To this end, conducting market research will provide information specific to your chosen sector and the consumers you hope to attract. According to Mr Hall, the importance of market research lies in the ability to identify what types of products or services would be profitable to introduce to the market. “Market research helps to identify opportunities and minimise risks. It will assist the company to collect

and analyse data about a particular target market, what the competition is and the environment it will be working in.”

DO Know the resources available A number of government and private resources are available for start-ups. Start-ups in their setting up stage require a mix of resources in order to survive and flourish. Mr Hall lists some of the services available to startup companies in Malta as business planning and forecasting, business processes engineering, business strategies, HR needs and planning, corporate structure planning and help with licenses and permits. Access to finance can come in the form of loans from banks to purchase property, fixed assets and other start-up costs; bank overdrafts for working capital, grants from EU funding, funding schemes like JEREMIE managed by BOV, tax credits, training aid for employees, venture capital, seed capital and

many other schemes from other entities and financial institutions.

DO Set realistic targets For a start-up to be successful, economic and personal goals that are both concrete and actionable need to be set. Mr Hall emphasises the importance of setting such targets, stating “targets affect just about everything you do as you plan, start and oper-

ate your business. They are not just the destination you're driving toward, but also the painted lines that keep you on track.” The targets you set will play a part in all business-related decisions, from structuring your business to getting employees and even marketing. Mr Hall’s advice for setting targets is to “be specific and realistic – you should not exaggerate with your targets but still do not set ones that are easily achievable.”

“You need both operating and start-up capital to start a new business, and have no hope of getting money from banks, venture capitalists or business angel investors without a welldeveloped business plan. A presentation may pique their interest, but they'll need a wellwritten document they can study before they'll be prepared to make any investment.” – Patrick Hall

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

business DON’T Fall into a trap Knowing common start-up mistakes could keep you from falling into the same traps. According to Mr Hall, one such error is attempting to go at it alone, although it can also be a case of too many cooks spoil the broth. He advises, “have a good team of consultants comprising experts and entrepreneurs who have already built successful companies within your industry. Get their advice on a regular basis but run the day-to-day yourself.”

Another error that could lead to a start-up’s failure is neglecting certain aspects of the business. If the start-up is a manufacturing company spending too much time on product development and not concentrating enough on other aspects like sales, Mr Hall explains, the business may end up having a great product but losing customers to a competitor with a stronger sales organisation. Not raising enough capital could also spell disaster. “While many start-ups assume that all they need is enough money to rent space, buy equipment, stock

inventory and drive customers through the door, what they often forget is that they also need capital to pay for salaries, utilities, insurance and other overhead expenses until their company starts turning a profit,” he asserts.

DON’T Let a saturated market stop you Sometimes, a saturated market can mean that there is no more room to absorb new entrants. Whereas this would often be the clincher for taking your business in another direction, there are times when a saturated market shouldn’t discourage you. Mr Hall maintains, “no matter how saturated the market may be, if you are determined, creative, hard-working and offer a great product or service, you will still get customers.”

Patrick’s top tips

• Do something you believe in. You are going to devote a lot of time and energy into starting a new business and building it into a successful company, so it’s important to enjoy what you do. • Don’t do it alone. Get professional advice. When you’re starting a business, experienced guidance is the best support system of all. If one qualifies, there are a number of support programmes for start-up businesses that will cover part or most of the costs. • Get clients or customers first. Don’t wait until you officially start the business to line these up, because a business won’t survive without customers. Make contacts and sell your ideas before you actually start. • Do the research. Know your product and service, and check who your competition is. Analyse what clients want. If you are starting a business you need to be an expert in your industry. • Get all legal and tax issues right the first time. Seek advice from the professionals on how to set up your corporate structure. Do you need any licences for what you are doing? Are the permits in hand?

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

business

Closing a deal

over a meal An office environment isn’t always the best of places to do business – it could be stiff and formal, and possibly less productive than an easy-going discussion over a meal and wine. Martina Said looks into the importance of business lunches and social events.

It’s safe to say that sharing experiences over food is a common occurrence in most cultures: be it a lavish dinner date, a quiet birthday lunch or even drinks and snacks with colleagues. With business lunches, the situation is no different, and attempting to create alliances over food could lead to successful and unpredicted outcomes in business. In tough economic times, personalising business meetings could make or break the outcome of a deal, which in turn could affect the success of a business at large. Anything is possible with technology nowadays, but there’s no denying that it cannot really take the place of human interaction, and treating

a client out to lunch could prove to be a particularly useful and advantageous way of closing in on a deal. Many involved in the business world might agree that securing an agreement in a social setting is sometimes easier – and often more successful – than attempting to do so in a formal office – for what reason? Gottfried Catania, assistant lecturer within the Department of Psychology at the University of Malta, says when people feel at ease, it is easier to concentrate on the more important aspects of the communication taking place. “In business, where communication is often about closing deals, making important contacts, meetings to

get things done, decisions and so on, being in a comfortable environment can help one focus on these more important aspects of the communication process, rather than be more focused on how uncomfortable one’s surroundings are.” “There are many factors which could make or deter a person from feeling at ease," he adds. The physical environment is in fact one of the most important factors to consider. “This includes how the space is arranged, how comfortable the chairs are and how uncluttered the office looks. Even such things as the colour of the walls and décor make a difference: you must remember that how you arrange the space

“In business, where communication is often about closing deals, making important contacts, meetings to get things done, decisions and so on, being in a comfortable environment can help one focus on these more important aspects of the communication process.” – Gottfried Catania around you sends others messages about you.” To this end, this is how a business lunch or dinner could change the way one feels in his or her surroundings. The setting is far less formal, which is not to suggest it is too laidback or casual either. It does, however, enable a person to feel somewhat less preoccupied and self-conscious of how he or she is coming across. Owner of Chez Philippe, Lisa Darmanin Demajo, who frequently handles customers visiting the restaurant for a

business lunch, says “any social interaction done properly can positively influence a business relationship – it is important for associates to break away from office routine and get to know each other on a personal level for business relationships to thrive.” Does she treat such clients any differently to those dining casually at the restaurant? “From a service perspective, when we have business clients we understand there are usually time constraints, and

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

business therefore try to cater to that need as well as providing service that is efficient and friendly but not intrusive, and allowing guests to get on with their meeting with little interruptions.” Mark Vassallo, Restaurant Manager of The Diningroom, situated at the Luna Holiday Complex in Mellieha, says business lunches and dinners are important for corporate networking, hammering out business details in a social setting and for meeting prospective clients. “The service has to be more formal and quicker, whereas with family meals you can afford to be a bit friendly and casual. At The Diningroom, we have the option of private dining as well as tailoring menus to fit clients’ needs.” Managing Director of Luna Holiday Complex, Kyle Borg, frequently organises business meals to entertain partners and stakeholders. As a customer, he expects orders to be taken and drinks topped up without much interference, allowing discussions to go on uninterrupted, as well as a swift service. He also tends to opt for meals that are straightforward to eat, not excessively heavy and always well-presented. “I also look for restaurants that aren’t very busy and where the general volume of the surroundings is not too loud, allowing you to talk,” Mr Borg explains. “I expect no mistakes on behalf of the restaurant as you’re ultimately trying to impress the people you are dining with.” Keeping business partners and clients happy is undeniably important. What’s also important though is ensuring the happiness and job satisfaction of the people that work for you – satisfaction within office quarters and beyond that too. Companies often find that team-building and networking events, which serve to be both fun and motivational, positively affect the productivity of individuals and of the company as a whole. When carried out well, says Mr Catania, team-building activities can be very useful in strengthening relationships between people who work together. “One becomes aware of one’s colleagues in a different context, and can notice characteristics of others, often positive ones, which are not usually seen in the routine workplace environment. These activities can also be used to train people in skills which they might not have acquired during their socialisation process, thus making it easier for them to work with others.” The types of activities or programmes that companies tend to opt for are ones which get employees to do fun things together, breaking the ice and in a way, presenting the opportunity to see workmates in a somewhat different light, through games, sports, or even volunteering to help out at an NGO for a day.

Do Maltese companies consider such events to be important or helpful? “Some companies, mostly larger ones, have introduced these activities and report positive outcomes,” explains Mr Catania. “As with anything else, it takes time for some companies to be convinced that the cost of organising such activities is justified as the benefits are sometimes difficult to quantify. However, more and more companies are jumping onto the bandwagon as time goes by.”

Inject some team-building into your Christmas staff event Team-building activities could be adapted to any time of year, although there is probably no better time to bond with colleagues than at a Christmas staff event over food and wine, when the festive spirit is high and the probability is that everyone is in the mood for a good party.

Kick off your staff do with a fun activity: something that will get you to see colleagues from a different, more laidback perspective: a few rounds of bowling, a gruelling session of paintball or perhaps even an afternoon on a golf course. The more traditional sit-down meal and ‘secret santa’ gift exchange could cer-

tainly follow suit, presenting the opportunity to get to know colleagues better, while enjoying delicious food and spreading the festive cheer.

BUSINESS AGENDA | december 2013 â&#x20AC;&#x201C; FEBRUARY 2014

doing business

business update

over lunch

In 1979 Lee Eisenberg wrote an article for Esquire describing a new lunch trend that had begun at the Four Seasons Hotel in Midtown Manhattan in New York City. He described a scene dominated by the top brass of New Yorkâ&#x20AC;&#x2122;s big hitters, who typically took long, boozy lunches at formal restaurants with table-side preparation and rich food. It was Alex Von Bitter, the managing partner at the Four Seasons restaurant, who came up with the brilliant concept of catering specifically for these sort of clients. The Four Seasons had the idea to create a meal that was conducive to doing business and the power lunch was born. The idea was simple. Food items were quick and easy to prepare, lots of grills and salads, healthy and light, and easy to eat. Wine could be ordered by the glass. Tables were set far apart so as to give dealmakers privacy. Eisenberg described it as revolutionary. You could have a satisfying, tasty meal in 60 min-

utes or less in a high end restaurant with no compromise on quality of food or service. This was a totally new kind of working lunch for people who had to go back to the office. Since then, the power lunch has lost some popularity and the more homely bistro-style establishments have replaced the formal dining rooms and grandeur of the Four Seasons. The business lunch is no longer reserved for the top tier of the company hierarchy but has trickled down the company ladder and across all businesses. The purpose of the business lunch remains the same â&#x20AC;&#x201C; to facilitate easy flowing conversation, to improve personal relationships and to discuss business matters. The holy grail of any restaurant is to deliver quality food and good service consistently. Picking the right restaurant for the occasion is crucial, and with restaurants sprouting up across the island, this is no longer a straightforward task.

If you're going to eat, eat well. Quality dishes are a result of individual attention by chefs who are not tied down by large, varied menus. By choosing a smaller, more intimate restaurant you are likely to be served food of a certain standard. Fresh ingredients, familiar flavours and innovative dishes allow you and your guest to enjoy your meal without it becoming the topic of conversation. Restaurants willing to cook specific dishes off the menu to cater for specific palates or dietary requirements are also very warmly received. An experienced restaurant understands that the business lunch is part of your work schedule and should provide light, satisfying dishes that encourage productivity. With good food you expect impeccable service. Part of the allure of a particular restaurant is the ability for the staff to provide quick and efficient service that is professional and friendly, yet discreet, allowing you to get on with your business with little inter-

ruptions. Choose a place that can cater to your individual needs and communicate them to the restaurant beforehand, whether it be time constraints, a special diet or a particular table you prefer to sit at. Service-oriented restaurants are used to special requests. The more information they have ahead of time, the better prepared they are to cater to your needs. More often than not you will be dining with people who you don't know very well. It is important to pick a place where you and your guest can feel comfortable. The ambience of a restaurant weighs heavily on the overall impression of your experience. Restaurants that do not cater for the masses have the advantage of a calmer setting but should be well equipped with background music for the quieter days. The ambience of a place should reflect the mood of the meeting by portraying elements of formal dining with the convenience of an informal setting.

At the end of the day, your aim is to impress your guest without looking like you're trying too hard. Jared Goralnick, founder and CEO of AwayFind, an e-mail productivity app said that "lunches are more about furthering the relationship than they are about furthering the deal. If I'm calling a lunch, I have a goal, but that goal is small, and it might be a five-minute thing. The rest of it is making them comfortable with that five-minute thing or making them comfortable just being around me." Chez Philippe is open for lunch every day from Monday to Sunday and for dinner on Friday and Saturday evenings. Reservations can be made on 2133 0755 or via the website www.chezphilippe.com.mt Now accepting bookings for Christmas staff parties. Set menus available on request.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

business update

Christmas at Cleland & Souchet From their iconic hampers to their vast range of exclusive brands of gifts, Cleland & Souchet is an unrivalled shopping destination in Malta, where you can find the perfect present for any occasion, especially in Christmas. With Christmas fast approaching, the choice of gifts includes the classic traditional festive fare such as delicious fine food and wine hampers. Each item within the hamper, including the custommade hamper box, is carefully chosen to offer clients genuine products at excellent value. None of the wines or fine foods can be found in any other shops or supermarkets

as each is selected and imported exclusively by the company to maintain the highest standard of quality and to also offer a finished gift that is special and unlike anything else on the market. Of course, you will also find a great selection of gifts from their range of simple and stylish everyday home accessories to their worldfamous luxury brands. Indeed it is thanks to their pioneering retail concept that one can find the market leading brands like Christofle, Baccarat, Bugatti and Riedel under the same roof as inexpensive candles, fragrances and dec-

orative pieces, without anything feeling out of place. This Christmas, their flagship shop in Portomaso is open every day from 1st December to Christmas Eve, from 9.30am to 8pm. For the first time, you can also pop into their newly opened wine café where you can enjoy the perfect cup of coffee or a glass of wine with a snack or healthy meal. The wine café offers an incredible 50 different wines by the glass to choose from so your next shopping visit to Cleland & Souchet will certainly get you into the best seasonal spirit.

Banif launches limited time offer Biz Flex Account Banif Bank has introduced the Biz Flex Account, a limited term deposit offer aimed at the bank’s corporate and business customers. The Biz Flex Term Deposit Account is available in three-, six- and 12-month terms, and allows full and partial withdrawals during the term, for added flexibility. Customers who avail themselves from the withdrawals prior to maturity can still earn interest on

both the amount withdrawn and on the remaining amount kept in the Biz Flex Account. The Biz Flex Account can be opened with a minimum balance of €100,000 at an advantageous rate on a 12-month term deposit denominated in euro. “What really differentiates this product from others is that it addresses the needs of companies and business people who might have extra funds for a limited time

period,” said Dirk Spiteri Lucas, Head of Product and Strategy Unit, Banif Bank (Malta) plc. “Clients need not worry about losing a good business opportunity since they have the peace of mind of using their funds if they need to, no questions asked! This flexibility, coupled with the rates associated with term deposits, makes this product unique in the market.”

A SUNDAY LUNCH THE WAY YOU LIKE IT

Terms and conditions apply. For more information clients may contact Banif’s Corporate and Business Banking Unit on 2260 1000. Customers are also welcome to visit our business offices at Level 1, 125-126, Main Street, St Julian’s or Level 1, 189, Naxxar Road, San Gwann.

The new Sunday lunch at Le Méridien St Julians Hotel & Spa offers indeed a new and more comprehensive perspective to your dining experience. Whatever your preferences or dietary requirements, the creative kitchen brigade at Le Méridien extends its menu to be able to better cater for everyone. With gluten-free options such as antipasti, soups, pasta, mains and desserts, it is a relief to finally see a catering establishment that goes further than just offering one fall-back dish to its gluten-intolerant clients. As a bonus, there are also vegetarian and sugarfree alternatives on display. It is – really – a Sunday lunch the way YOU like it.

This innovative Sunday lunch package is priced at €29.50 per person for food only with unlimited servings or €34 per person including free flowing wine. Your advantages don’t stop here. The formula also includes a nice welcome drink, live cooking stations (and a ‘DIY’ pasta corner for the pasta lovers), a surf and turf table with sumptuous meat and fish offerings, entertainment for children, live background music and free parking (subject to availability). Children up to 12 years old eat for free and teenagers up to 16 years old only pay €25 per person. So it is established: whatever suits your fancy or your dietary needs, you will not leave Scirocco restaurant on an empty stomach. The choice is unrivalled so far, the recipes on display are inspiring and the quantity is impressive. A private Sunday lunch experience in the gorgeous White Room can also be organised on request (an extra charge may apply). The new Méridien Sunday Lunch is definitely a great concept to experience throughout winter. Info and reservations: 2311 0000 or infolmsj@lemeridien.com Website: www.lemeridienmalta.com Facebook page: www.facebook.com/ maltalemeridien

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

business update

ECCO’s new Sculptured

75 collection This autumn/winter 2013, ECCO introduces the Sculptured 75 Collection. Higher. Thinner. More elegant. Yet still extremely comfortable. The new ECCO Sculptured 75 collection raises high heel comfort to a new level with its timeless, yet distinctly modern pieces. Combining traditional craftsmanship with the latest technologies, Sculptured 75 is created especially for women of style who want to feel elegant and well-dressed all day – without compromising on comfort in their busy lives.

Go for a pair of mid-cut ECCO Sculptured 75 booties with the simple, sophisticated wrap-around strap and buckle detailing on the ankle. With their beautiful dark bordeaux shade and feminine toe shape, these booties instantly create an edgy look with a lot of character. Match the ECCO Sculptured 75 with a stylish bag in the same shade to feel well-dressed and on-trend all day, no matter what the occasion.

Sculptured 75 is based on ECCO’s ground-breaking Sculptured Comfort Technology, which makes it possible to create a high heel shoe with an anatomical last, a very soft and comfortable sole and a soft, flexible heel that is now even thinner than that of the popular Sculptured 65 series ECCO launched last season. The Sculptured 75’s higher, slimmer heels elongate the legs just the right amount to heighten the elegance of any jean, skirt or dress based looks.

Visit www.ecco-shoes.com.mt to view the full collection. ECCO is exclusively available from King Shoe Shop in Valletta tel: 2122 4804; San Gwann tel: 2137 8433; Bay Street tel: 2372 0010; and Gozo tel: 2156 9423; and Tower Shoes in Sliema tel: 2133 3777.

Functional tests at SmartCity Malta’s

Laguna Walk fountain SmartCity Malta recently commenced the functional tests of the musical fountain at the lagoon which lies at the heart of the Laguna Walk. The Laguna Walk is the island’s only lagoon district and, together with four more buildings, will constitute Phase Two of the SmartCity Malta project. Two of the buildings, SCM02 and SCM03, are office blocks and the other two, SCM04 and SCM05 are devoted to retail. SCM02 and SCM03, located adjacent to the lagoon district, offer panoramic views of the Mediterranean sea and the lagoon – providing an unrivalled view of the grand dancing fountain. Designed as a multi-level, open-air esplanade, buildings SCM04 and

SCM05 will house food and beverage outlets, all of which are just a few steps away from the Lagoon. Lush, terraced rooftops create the ideal setting for dining and recreation activities. The Laguna Walk incorporates a magnificent boulevard, leading onto the grand steps and looking out onto the beautiful and expansive lagoon, adjacent to which will run the promenade. The highlight of the lagoon is one of the island’s largest animated fountains which powers light and music synchronised jets of water into the clear blue sky, thus typifying the innovation of this dynamic and fun-loving city to be enjoyed by families and individuals of all ages.

OzoSystem – Our business is cleaning yours Just imagine if your cleaning service were as professional as your business – efficient, reliable, trustworthy and 100 per cent focused on customer service. OzoSystem is renowned for offering an A to Z cleaning service, with unmatched levels of personal account management and attention to detail. But that is not the best bit.

You get all this, but pay no more than a regular cleaning service: • Tailored to your premises – individual cleaning checklists and 24/7 flexibility • Immaculate results – our cleaning teams are punctual and efficient • Single point of contact – your dedicated account manager coordinates everything for you

• Peace of mind – our professionals have a clean police conduct, are carefully selected and fully insured We will get on with the cleaning services so you can get on with your business. Our unique tailored quoting system and personalised cleaning allow us to match our services to your specific needs.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014

environment

Reducing water consumption

by 30 per cent

The most recent paper published by the MBB’s EU LIFE+ Investing in Water Project identifies how the hotel industry can reduce its water consumption by 37 per cent. Project Manager JOE TANTI reveals the details.

Grey-water treatment and flow regulation of showers and wash-hand basins could slash the hotel industry’s consumption by up to 37 per cent Images by the MBB

Imagine an entire industry being able to reduce its water consumption by over a third, using technology existing today with an attractive return on investment. The implications are tremendous. The reduction on operating costs alone could well increase the industry’s profitability significantly, making more financial resources available to reinvest and thus strengthening the product. From an environmental perspective, an entire industry reducing its footprint would be the good news story of the year. The latest paper published by the EU LIFE+ Investing in Water Project, titled ‘The hotel industry – a shift to greener and lower cost operations’, identifies how the hotel industry can reduce its water consumption by 37 per cent in the short to medium term. Ing. Marco Cremona, the project's water expert engaged by the MBB and main author of the paper, said “this is the first time that such extensive data on water consumption by hotels is available on a macro level. This information shows the most straightforward path for an industry-level shift to lower costs and increased sustainability.” The paper considers existing local best practice and quantifies savings that would arise if this best practice were widely adopted. Basing solutions on existing best practice ensures that the potential savings are not merely theoretically, but also economically and operationally feasible. A minimum of 15 per cent industry wide savings are achievable by regulating water flows in showers and wash hand basins. Up to 37 per cent savings could be achieved by also including greywater treatment – a waste water recycling process which treats shower and wash-hand basin water for re-use in flushing toilets

or landscaping. Commenting on what it would take for the industry to make the shift, MHRA President Tony Zahra said “with our partners the MBB and through the EU LIFE+ Investing in Water Project, the MHRA shall ensure that hotels are informed about these savings and how to realise them. However, for an industry-level evolution to lower consumption and costs, support from providers, authorities and Government is required.” Adjusting shower and wash-hand basin flows is a simple matter easily handled by the industry. Grey-water treatment requires a more widespread support from industry suppliers, specifically engineers and architects who need to plan appropriate plumbing. Current plumbing infrastructure in most hotels would

Using restrictors on showers and wash-hand basins could lead to 15 per cent water savings by the hotel industry need to be redone for grey-water treatment to be adopted. The MBB and MHRA are suggesting that Government and local authorities support the hotel industry to achieve this reduced water consumption vision, by streamlining existing and new funding schemes to give more priority to in-house grey-water treatment projects. An industry-level shift to lower water consumption would address two local problems: the local hotel industry’s high utility

costs compared to other European countries, Malta’s severe water scarcity and the extraction of around 59 per cent more groundwater than is sustainable. The paper’s conclusions are based on the analysis of water consumption data from 42 hotels, representing 30 per cent of the local industry. It is available on www.investinginwater. org/Downloadables

The MBB’s EU LIFE+ Investing in Water Project receives 50 per cent co-financing under the European Community’s LIFE funding programme, with the Ministry responsible for the environment as the main co-financier, and further co-financing and sponsorship from Easydry Malta, APS Bank, Island Hotels Group and MSV LIFE.

BUSINESS AGENDA | december 2013 – FEBRUARY 2014