FORTIFYING A LEGACY FOR THE FUTURE
Newly elected President of The Malta Chamber Chris Vassallo Cesareo speaks to Rebecca Anastasi about his priorities for the next two years, and how he plans to continue bolstering the entity’s 175-year heritage.
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ISLAND IN A STORM: CAN MALTA’S ECONOMY CONTINUE TO WITHSTAND GLOBAL CHALLENGES?
Central Bank Governor Prof. Edward Scicluna discusses the performance of Malta’s economy, inflation and rising interest rates with Sarah Muscat Azzopardi
‘THESE ARE EXCITING TIMES, BUT THE RATE OF CHANGE WILL NOT BE FOR THE FAINT-HEARTED’
16
Cover Story
MAKING MALTA HOME: MEET MALTA’S EXPAT BUSINESS LEADERS
Sarah Muscat Azzopardi meets five expat business leaders who
to make Malta home, discovering what it is about the island that attracted them – and what keeps them here.
Recently appointed MCESD Chairman David Xuereb shares his thoughts on Malta’s economy and plans at the helm of the advisory council with Sarah Muscat Azzopardi
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BREWING SUCCESS FOR A CENTURY
Dean Muscat sits down with Chairman Louis Farrugia to discover the captivating story of Farsons’ familial roots, its remarkable evolution, and the company’s relentless pursuit of quality.
MALTA’S INFLUX OF THIRD-COUNTRY NATIONALS: THE GOOD, THE BAD AND WHAT IT MEANS NOW
Rebecca Anastasi speaks to business stakeholders and economists to understand the complex ramifications the arrival of third-country nationals (TCNs) has had on the island.
DINING IN MALTA: LOCAL CHEF PATRONS SHARE THEIR THOUGHTS
Dean Muscat speaks with six of the island’s leading chef patrons to uncover their insights, challenges and hopes for fine dining in Malta
AN ENDURING FASCINATION WITH NATURE’S GLORY
Sarah Muscat Azzopardi discovers the work of Johan Siggesson, a wildlife photographer from Sweden who has made Malta his home.
AN ENTIRELY DIFFERENT WORLD, IN THE HEART OF GOZO
Daniel Cassar, Senior Interior Designer at DAAA Haus, takes Sarah Muscat Azzopardi through the multisensory journey of creating the enchanting interior of Trishna restaurant.
AS EVER, THIS YEAR’S EDITION OF BUSINESS NOW AIMS TO SHINE A LIGHT ON MALTA’S UNIQUE ECONOMIC LANDSCAPE, gathering insights from key figures and attempting to predict what lies ahead.
Recent research has revealed that today, more than one in five residents in Malta are of foreign origin. Delving into the island’s thriving expat scene in our Cover Story, we meet five expat business leaders who have chosen to invest in the island, and find out what it is about Malta that continues to attract them and their business.
Meanwhile, the growing number of foreign workers on the island is also due to an influx of third-country nationals in recent years. Later in this issue, we speak to business stakeholders and economists to explore the reasons behind this, and what it means for Malta moving forward.
We also sit down with recently appointed MCESD Chairman David Xuereb and newly elected President of The Malta Chamber Chris Vassallo Cesareo to discover their plans for the entities, and discuss the performance of Malta’s economy, inflation and rising interest rates with Central Bank Governor Prof. Edward Scicluna.
Elsewhere, we discover the captivating story of Farsons’ remarkable evolution to household name status, pick the brains of six of the island’s leading chef patrons on the fine dining scene in Malta, and track the fascinating design journey behind a recently opened restaurant in Gozo. Finally, we experience the work of another foreign national who has chosen to make Malta home – an award-winning wildlife photographer with an enduring fascination with nature’s glory.
Enjoy the issue, Sarah Muscat Azzopardi
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EDITOR
Sarah Muscat Azzopardi
HEAD OF SALES & BUSINESS DEVELOPMENT
Marie Claire Camilleri
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Sue Ann Pisani
CLIENT RELATIONSHIP & ADMINISTRATION EXECUTIVE
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Bernard Polidano - Shot on location at ION Harbour at Iniala Harbour House, Valletta
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Malta has long been a multicultural hub, with a thriving expat scene that continues to grow each year as a result of attractive career prospects coupled with a sunny climate and easy-going way of life. Meanwhile, building on already firm foundations including tourism, iGaming, manufacturing and financial services, Malta’s diversified economy and attractiveness as a business destination continue to draw foreign investment. Here, Sarah Muscat Azzopardi meets five expat business leaders who chose to make Malta home, discovering what it is about the island that attracted them – and what keeps them here.
Moving to Malta from his native Sweden in 2013, Lahcene Merzoug already had several successful businesses to his name before being appointed CEO of online gaming-focused PressEnter Group in 2021. In November last year, it was announced that PressEnter Group will undertake a management buyout, with Lahcene appointed Executive Chairman of the Board, marking a new and exciting chapter for the company and Lahcene alike.
It’s been 10 years since Lahcene, his fiancée and two friends settled in Malta, intent on a change in lifestyle. “I had just sold my company in Sweden, and we were looking for a place with a little more sunshine,” he smiles.
Since then, the climate has continued to factor into his love for the island, although it wasn’t until COVID-19 came along, he admits, that Lahcene really began to appreciate Malta’s distinct landscape. “There wasn’t much to do, and travel wasn’t an option, so I was out hiking every weekend. There are a few gems out there, and I discovered some fantastic spots, like Fomm ir-Rih, which is one of my favourites.”
From a business point of view, his experience has been similarly positive. Entering the gaming sector upon his move to Malta, Lahcene describes the local industry as a strong one. “We have a Regulator that talks to the industry, which isn’t the case in all countries; and we have what is arguably the biggest hub of talent in the world for our industry.”
On the flip side, Lahcene is also cognisant of the challenges that exist, particularly for smaller start-ups, including issues with paperwork and a lack of digitalisation, difficulties around opening business bank accounts, and housing. “Within our industry, one of the biggest challenges is housing for our staff. Housing is very expensive, particularly for junior staff,” he shares.
All things considered, however, Lahcene’s outlook for business and economic sentiment on the island is positive, and he considers it “a good investment climate at the moment.” Sharing his advice to fellow expats seeking to invest in Malta, he advises against speculative investments if you don’t have the right risk profile, but overall believes “it’s a good time to invest in the island.”
‘In Malta, we have what is arguably the biggest hub of talent in the world for our industry.’
Hailing from Kyiv, Ukraine, Alona Andruk is the CEO and Founder of Take Off and Bundlex, two successful start-ups focused on the circular economy and sustainability in the fashion sector, based in Malta and launched in April 2015. Aimed at redistributing unsold clothing from major Italian and European brands, Take Off has managed to distribute more than 25 million pieces of clothing and accessories over the years, and has grown to comprise almost 50 employees. Alona also has an interesting past as a professional cyclist, having competed in the 2012 London Olympics for the Ukrainian national team.
“Malta’s international environment is what drew me in initially,” Alona explains of her decision to move to the island, describing its attractive atmosphere for start-ups and the fact that it is very inviting toward hiring international teams, including those from outside the European community, which she deems crucial for global business development.
“The favourable location and weather, low bureaucracy and efficiency in the company set-up system were also significant factors. Malta is a country that believes in and invests in start-ups, making it an innovative hub. It serves as an international hub in the Mediterranean where English is spoken, which is very beneficial. Additionally, the small, human-scale size of the island allows for a work-life balance, another important factor in my decision to choose Malta,” she notes.
On a personal note, Alona is fond of the diverse natural beauty Malta offers. “In the summer, the beaches are my favourite spots, and I love the opportunity to hike in the countryside. Above all, my favourite activity is kayaking at St Thomas Bay. The blend of natural beauty and outdoor activities is what I enjoy most about the island.”
Having experienced substantial growth since starting out, Alona’s experience of running a business in Malta has been positive, with unique challenges and opportunities. The most impressive advantage she points out is Malta’s rapidly growing economy, as well as its advantageous geographic location. Moreover, Alona continues, Malta is developing into a dynamic tech hub, embracing start-ups and offering opportunities in areas such as artificial intelligence, blockchain and software solutions.
“The island’s support for businesses is demonstrated through various schemes, including several training courses we’re undergoing with the aid of JobPlus. And let’s not forget about the
access to grants via Malta Enterprise, which provides another level of support for businesses,” she affirms, pointing out that there are also challenges that need addressing. “One of the prominent issues is attracting and retaining high-level employees. While Malta is an attractive place for many, it’s often viewed as a short-term destination, leading to high employee turnover and knowledge retention issues.”
According to Alona, another challenge has been Malta’s inclusion on the grey list, which has adversely affected its reputation and made certain business operations more complex, such as opening bank accounts for the company’s international branches. Finally, she adds, the rising cost of living, especially soaring rent prices, can deter potential employees from moving here.
Sharing her outlook in relation to her sector, the CEO states that the fashion retail sector in Malta is experiencing significant growth, with new brands continually entering the Maltese market. “This expansion signals an active and dynamic local business environment, which is very encouraging,” Alona says, adding that, in broader terms, “Malta’s successful control over inflation, maintaining one of the lowest rates in Europe, is a positive indicator for the economy.”
Addressing fellow expats considering the possibility of investing in Malta, Alona’s advice is simple: “go for it!” Highlighting the fact that the island presents a diverse range of opportunities, particularly for start-ups and technology-driven businesses, she describes Malta as “a vibrant, welcoming place that’s rich in history, yet innovative and forward-thinking in business.” However, as with any investment, she emphasises, “it’s essential to do thorough research, understand the market dynamics and possibly find local partners who can provide guidance through Malta’s unique business landscape.”
‘Malta is a vibrant, welcoming place that’s rich in history, yet innovative and forwardthinking in business.’
Moving to the island from Denmark in his early 20s, Jacob Appel is the CEO of Binderr. Established in 2020, Binderr uses innovative software in technology in its drive to help corporate service providers digitalise their business and become more efficient. As an entrepreneur with a passion for founding and building technology start-ups, prior to Binderr, Jacob co-founded and led tech start-ups such as Time to Eat, Bolt and Bolt Food in Malta and internationally.
“I came to Malta as I was tired of studying and had an opportunity to join an iGaming start-up,” says Jacob, recalling how the company went on to close after a few years. “I was left with the decision of moving back to Denmark to continue my studies or finding something else to do in Malta. I decided on the latter after a friend of mine suggested building our own start-up, and shortly after, Time to Eat was born.”
Looking back, he smiles, “it was the opportunity of working for an interesting company on a sunny island that got me here. The good people and the opportunities are what made me stay.”
Besides spending a few years in Cyprus and Tunisia, Jacob’s home for the past 15 years has been Malta. “Although I sometimes miss the Scandinavian efficiency, I’m fortunate to live in such a kindhearted country and still, to this day, consider every day a holiday,” he reveals.
From a business perspective, Jacob’s experience has also been positive, although that’s not to say there isn’t room for improvement. “The digital infrastructure is not as technologically advanced as an entrepreneur would hope. Besides that, I often find it to be an advantage coming from Scandinavia. I’m never met with discrimination for being a foreigner, and have always found great support from the Maltese,” he says, adding that, if there is one thing he would change, it is the island’s ability to think bigger. “It feels like we are sometimes limited by our size, which in today’s world shouldn’t hinder us. There have been tech success stories, such as HotJar, Altaro and BMIT, but they are few, and I’m hoping we can change that over the coming years.”
Considering the main challenges and opportunities of Malta as a business destination, Jacob describes the negative repercussions of being on the grey list as a significant challenge for the island, making it a less attractive business hub. However, he attests that we have bounced back quickly.
In terms of opportunities, he continues, “digitisation and improved access to finance for start-ups are key areas that could enhance Malta’s attractiveness as a business hub. Simplifying the process of incorporating and administering companies online would promote greater entrepreneurship and make it easier for start-ups to establish themselves in Malta.”
Overall, the CEO’s outlook for local business and economic sentiment in Malta is generally positive. “The economy is growing well, and Malta has managed to maintain low inflation rates compared to other EU countries,” he notes, imparting a final word of advice for fellow expats who are exploring the possibility of investing in Malta.
“I can only recommend exploring and investing in Malta – to me, it’s the crown jewel of the Mediterranean. Embrace cultural integration; if you are investing in a foreign country like Malta, it’s important to understand cultural norms, build relationships, and establish trust with local partners and stakeholders. This will contribute to your long-term success here.”
‘The opportunity of working for an interesting company on a sunny island got me here. The good people and the opportunities made me stay.’
Originally from Manchester, Mark Weingard landed in Malta in 2012 via London, Singapore, Bangkok, Lugano and Barcelona. The British serial entrepreneur and philanthropist has been the force behind countless businesses worldwide. Today, he lives in Malta and oversees charitable foundation Inspirasia and luxury hotel brand Iniala, which includes boutique hotel Iniala Harbour House in Valletta.
“I first came to Malta as it seemed a wonderful place filled with opportunity and amazing weather,” recalls Mark, who describes his experience as an expat business leader on the island as a positive one overall. “I find the Maltese people very welcoming to foreigners, and they are very business-like. Doing business here is easy for an expat, although bureaucracy can be an issue. The central Government meets regularly with business leaders and is pro-business,” he maintains.
Expanding on the primary challenges and opportunities of the island as a business destination, Mark considers the main difficulties to be the bureaucratic issues facing development and the lack of strong local government, citing that the local councils have little power. Moreover, he continues, “the Government does not have a strategy for ensuring sustainable tourism living alongside residents.”
Homing in on the issues relating to running a business in Valletta, Mark maintains, “there needs to be a government body enabling the rapid development of a world-class capital city, however anybody should enable development and not stifle it with added layers of bureaucracy. We should be pairing up with other capital cities, ensuring the streets are clean and wellmaintained, and that there is not too much noise after 11pm.”
The opportunities, meanwhile, are many. “Valletta is still a hidden jewel that is full of character. The Maltese people are hard-working and caring. The capital city, if managed correctly, can be one of the nicest capital cities in the world,” he says.
Sharing his outlook on local business and economic sentiment, Mark focuses primarily on hospitality, stating, “there is too much three- and four-star hotel development in St Julian’s and other touristic areas of Malta, and too many Airbnbs, and this will lead to oversupply and overcrowding. We also are still lacking in schools for expats coming to the country. However, Malta is moving upmarket, with 200 new luxury rooms coming to the market in the next three to four years, and this will lead to the development of the luxury sector. We need to focus on quality and not quantity, for the benefit of those who live here and those who come here.”
Finally, his message to fellow expats who are exploring the possibility of investing in the island is an encouraging one:
“Come and invest. Malta is historic, beautiful and sunny, and the people are amazing.”
‘Valletta, if managed correctly, can be one of the nicest capital cities in the world.’
Originally from Istanbul, Turkey, Cenk Kahraman moved to Malta from Bahrain in 2005 upon being appointed CEO of National Bank of Greece (NBG) on the island. Six years ago, Cenk took on the role of CEO at Finance Incorporated Ltd, a company that delivers a full range of financial services and infrastructure solutions to corporate and individual clients.
“I love living in Malta and truly enjoy each part of it,” smiles Cenk, revealing his favourite things to do on the island. “I love lazy strolls along the Birgu waterfront, the golf club and the smell of freshly cut grass, clear sunsets in Dingli with a glass of wine, and walking aimlessly along the streets of Mdina and soaking in the almost mythical history. I also love visiting Gozo on weekdays, and the serenity it provides.”
Describing his experience at the helm of two businesses in Malta – first a bank and later a financial institution – Cenk begins in practical terms. “I can clearly state that the red tape for running a business in Malta is getting less and less every year, partly due to EU harmonisation, but mostly because of the digitalisation of the nation.”
Describing Malta’s main challenges and opportunities as a business destination, the CEO continues, “to attract new business, PR will always be our main challenge on the global stage, whereas for maintaining existing business, HR is our main challenge. When it comes to opportunities, beside Government-initiated incentives, Malta is a beautiful island where people want to live. We just have to make it attractive to the right crowd, so that they bring their business with them.”
Looking ahead, he adds, “Malta weathered COVID and the beginning of the inflationary era rather well. Obviously, inflation and its consequences have yet to be seen. Nevertheless, the measures taken were prompt and controlled.” Overall, the CEO considers Malta’s economy to be strong.
Offering a few words of advice to fellow expats who are exploring the possibility of investing in Malta, Cenk affirms that resource planning is a must. “We live on a tiny island nation that does not possess the variety of resources that continental countries have. Thus, regardless of the area being invested in, resources, especially Human Resources, must be well planned. If need be, discussions with peer companies and/or service providers must be held in this regard,” he maintains.
‘Malta is a beautiful island where people want to live. We just have to make it attractive to the right crowd, so that they bring their business with them.’
Chris Vassallo Cesareo was elected President of The Malta Chamber of Commerce, Enterprise and Industry at the end of March, after serving on its Council for 10 years. Here, he speaks to Rebecca Anastasi about his priorities for the next two years, and how he plans to continue bolstering the entity’s 175-year heritage.
IN ITS 175-YEAR HISTORY, THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY HAS GROWN TO BECOME THE BACKBONE OF PRIVATE-PUBLIC BUSINESS RELATIONS. Indeed, the organisation has proven instrumental in ensuring that the Maltese corporate community, as well as its strong industrial sectors – manufacturing, retailing and service providers – flourish, weathering the storms determined by the economy.
In March, businessman Chris Vassallo Cesareo, whose CV includes a 10-year stint on The Malta Chamber’s Council, and an established career as Managing Director at Domestica, one of Malta’s leading furniture establishments, was elected President for a two-year term.
“My background is in the small-to-medium business sector, with Domestica being a second-generation family business, possessing investments in retail, manufacturing and servicing, so I’m very aware and conscious of the challenges and opportunities facing similar businesses working within these economic pillars – which, actually, include most of The Malta Chamber members. The fact that I’ve also been working on the Council, and working closely with the entity’s former presidents, means that I can also follow in their good footsteps,” he smiles.
Indeed, his key priority is to more firmly entrench the deep roots already established by The Malta Chamber, which, Mr Vassallo Cesareo says, is fundamentally dependent on the work of those starting out their careers. “My intended focus is on
“The Malta Chamber can help create the future, bringing educational institutions in touch with local businesses so we open the doors of opportunity.”
the future generations of business leaders,” he continues, adding that he’s also the Chairman of JA Malta Foundation, which provides training and mentorship to entrepreneurial youths. “It’s our responsibility to give a platform and the space to future generations to excel in their respective areas,” he insists.
This is done through the commitment to The Malta Chamber’s five pillars: economic growth and resilience; environmental sustainability; digitalisation and infrastructure; human capital; and good governance. “We champion these foundations, to make sure we continue to leave a legacy,” he says, explaining that integral to these principles is education. “I don’t believe we can afford to separate education from industry. The Malta Chamber can help create the future, bringing educational institutions in touch with local businesses so we open the doors of opportunity, with youths being able to establish a career, and not simply look for a job. We are looking at things
holistically, and this is tied to a national vision for the country,” he says.
Good governance will be another of Mr Vassallo Cesareo’s core priorities during his tenure. “Once you have this in place, then you can be competitive. It comes naturally. We have written a document giving recommendations on how to strengthen Parliament, and another on how to establish better procedures for public procurement. Through these, what we’re saying is that we, as businesspeople, are also looking out to ensure the work is done correctly. For instance, if companies are not in line with the law, they shouldn’t be awarded public tenders.”
Trust is a two-way street, he says. “It’s our duty to raise these issues, since it creates a healthier economy which is more conducive to conducting correct business. To be more specific, if a tendering process has been launched and company A, that has done everything well, and paid all its dues, is competing with company B, that has not paid its taxes, then this is an unfair advantage, since the latter will have more cash flow, for a start.”
Concurrently, The Malta Chamber is also suggesting a lobby register – a proposal which has been put forward to Government over the past few years – in which meetings with public officials will be declared within 24 hours after the meeting is held, with the minutes uploaded on a public forum, so “they can be read and debated. They should be available to the public,” Mr Vassallo Cesareo says, pointing out that
“The proposals being made by The Malta Chamber are always tangible, structured and concrete recommendations.”
“the proposals being made by The Malta Chamber are always tangible, structured and concrete recommendations,” and therefore, workable.
This approach is crucial if The Malta Chamber is to fulfil its mission of championing the interests of the islands’ economic sectors and lobbying the authorities to ensure the best possible economic, social and political environment for businesses to flourish. “We are aligned to these five pillars, but we are also finding new priorities, new pillars. Our job never stops,” Mr Vassallo Cesareo attests.
Indeed, in the foreseeable future, The Malta Chamber will be focusing attention on the challenges associated with recruitment
and human resources; the ease of doing business in Malta; access to finance and cash flow; helping to resolve the kinks in the supply chain; and the issue of Government competing with the private sector.
Moreover, The Malta Chamber is keen to aid businesses capitalise on the opportunities offered by technology, including by partnering up with Tech.mt, a Government entity launched to help tech companies export their digital offerings. “With this partnership, we represent the private sector, and we encourage firms to internationalise their products and services,” he says, adding that all local enterprises should be cognisant of the opportunities inherent in using digital solutions to also do business away from Malta’s shores.
“We are involved in several projects such as DS4Air, which has now ended, but its goal was to help companies become more tech-oriented. And there are other such initiatives in the pipeline, through which we give free services to our members, in order to help them expand,” he continues,
Rising inflation has also been of concern to local businesses and, as a result, to The Malta Chamber. “At the moment, inflation is at a 3.61 per cent increase, averaging at 3.55 per cent, so this has been of major concern to private enterprises, irrespective of their size, turnover or sector. In fact, we’re being asked for clarity on how this will be resolved moving forward. We know, for instance, that Government has been absorbing the increasing costs of energy, but what’s going to happen when these subsidies stop?”
In his view, “Government must see how it is going to ease the way for local businesses in this regard, and I’m sure if we handle rising inflation correctly, we can navigate it. We don’t want the Government to be handing out money to everyone, for instance – but to those who really need it to survive. And once again, if a particular business has not paid its taxes, it should not be eligible for Government aid. Therefore, our solutions are very much linked to good governance and the associated competitiveness,” The Malta Chamber President says.
Looking ahead, Mr Vassallo Cesareo insists that the future is bright. “We’re celebrating 175 years of being in operation, and we still stand for the ethical voice of business in Malta. We champion policies and represent good business, and correct business. We have a strong stake, and there’s a firm direction, which can give the local business sector courage and strength to navigate what comes our way,” he concludes.
“We’re celebrating 175 years of being in operation, and we still stand for the ethical voice of business in Malta.”
Central Bank Governor Prof. Edward Scicluna discusses the performance of Malta’s economy, inflation and rising interest rates with Sarah Muscat Azzopardi
“MALTA WAS AMONG THE COUNTRIES HIT HARDEST BY THE PANDEMIC, due to its greater reliance on high contact-services like tourism. However, the recovery from that shock was also faster,” affirms Central Bank Governor Prof. Edward Scicluna, reflecting on the state of the island’s economy in today’s unique, post-pandemic scenario.
In part, the former Finance Minister believes that this reflects the swift rebound in services when economies re-opened, which was more beneficial for service-oriented economies like ours. Another important factor though, the Governor attests, was the extensive fiscal support that the Maltese Government deployed to preserve the economy’s productive structures and employment. The diversification of the economy and sound macroeconomic management in the years prior also helped.
According to Prof. Scicluna, many of these factors also explain why the Maltese economy continues to outperform the euro area even since the onset of the Russia-Ukraine war. “While
COVID-related support had largely faded, Government offered generous energy subsidies that sheltered households and businesses from soaring energy costs. Coupled with the significant liquidity that the private sector had accumulated, this provided extra support to demand,” he maintains, adding that one must also acknowledge Malta’s very limited direct links with Russia and Ukraine, and the fact that, unlike the pandemic, the war mostly affected energy-intensive industries that are less pervasive in Malta.
Reflecting on the principal trends relating to the Maltese economy in comparison to the Eurozone and the EU average, the Governor says that we are currently seeing a continuation of a well-established pattern in the data: both GDP and employment growth continue to exceed those in the euro area. Correspondingly, Malta has a much lower unemployment rate compared to the euro area, even though in both economies this rate is low from a historical perspective. In fact, he continues, labour market tightness – as measured by the ratio of the
vacancy rate to the unemployment rate – is among the highest in the euro area. This is confirmed by the incidence of labour shortages as a limiting factor for production in European Commission business surveys.
As in other euro area countries, Malta is also faced with high inflation and an urgent need to strengthen public finances. Here too, however, Prof. Scicluna points out several differences. “Take inflation. In the euro area, a key factor was energy costs. In Malta, energy prices did not increase, but high inflation instead reflects the indirect effects of energy costs on other input prices, coupled with domestic factors such as the swift rebound of tourism, robust domestic demand, imperfect competition and the limited passthrough of recent increases in ECB interest rates to the private sector,” he says.
Does the Governor believe the worst is over with regards to the effects of recent shocks? First off, he believes that supply bottlenecks are becoming less important globally. “For example,
the GEP Global Supply Chain Volatility Index suggests that in March, the level of stress on global supply chains was at its lowest since July 2020. Maltese firms that participate in the Bank’s Business Dialogue also signal improving supply conditions. This, and the recent decline in international energy prices, should eventually be reflected in a moderation in price pressures,” he maintains, admitting that despite this, the effects of past increases in input prices may still be transmitting to the economy.
Furthermore, wage pressures, which so far have been concentrated in certain areas, could become more broadbased after a prolonged period of labour shortages and high inflation, as employees try to regain purchasing power. “Labour shortages pre-date the pandemic and the war. They will remain with us unless the structural factors behind them are addressed. These factors could keep non-energy inflation in Malta high for a prolonged period,” he warns.
Moreover, despite some correction, natural gas prices remain high from a historical perspective, and could increase in case of renewed concerns about the adequacy of supplies, the Governor continues. “Consequently, upward pressures on public expenditure are likely to persist as long as our economies remain dependent on traditional sources of energy and geopolitical tensions persist. On the other hand, the deactivation of the general escape clause of the Stability and Growth Pact at the end of this year will likely increase pressure to frontload fiscal consolidation.”
Directing his attention to interest rates, which are gradually going up in Europe, I ask about the local situation. In Malta, we have seen some movements on the deposit front, but not yet on loans. Asked whether he is expecting interest rates on home loans and commercial loans to go up significantly this year in Malta, Prof. Scicluna attests that “both lending and deposit rates on new loans have started to increase in response to the ECB’s rate hikes, yet only a fraction of the cumulative change in ECB rates has been reflected in Maltese rates. There is, therefore, still room for local interest rates to increase further and that would be desirable from the perspective of taming inflation.”
However, he continues, “choices about retail interest rates and the size of any increases in them rest with commercial banks. In
“Labour shortages pre-date the pandemic and the RussiaUkraine war. They will remain with us unless the structural factors behind them are addressed.”PHOTO BY JONATHAN BORG
Malta, banks might feel less compelled to increase rates as they enter this tightening phase with rates that are above those in the euro area and they already enjoy a strong deposit base. That also means less pressure to raise lending rates to maintain margins. The situation could change if one or the other bank were to raise rates more aggressively than we have seen so far, as this could then prompt a reaction by other banks. Similarly, one might see a faster response in the lending rates if banks’ equity and debt funding costs were to increase.”
Going on to share his outlook for the local economy, Prof. Scicluna says that over the last two years, economic growth in Malta and abroad was very strong when seen from a historical perspective, as economies were still rebounding from the pandemic. Thus, in the coming two years, he expects economic growth in Malta to return to more normal rates of growth at slightly above 3.5 per cent. “These rates are well above those in the euro area and most advanced economies,” he points out.
“We expect growth to continue to be primarily driven by robust domestic demand, tourism and other services. On the other hand, the international environment is weakening, partly due to the prolonged impact of high inflation on costs and income, and the unprecedented monetary policy tightening intended at containing inflation. As a small open economy, we are directly and adversely affected by the global economic slowdown, especially in certain sectors such as manufacturing,” he affirms, adding that, although fiscal support has been fundamental in avoiding a spike in energy prices in Malta, it is expected that inflationary pressures will remain elevated for some time, as imported inflation continues to be passed on to consumer prices. “While this has a negative effect on households’ purchasing power, private consumption has been rather resilient given households’ accumulation of savings during the pandemic. We expect consumption to continue to be the main driver of growth in the next two years as people continue to run down these extraordinary savings.”
Moving forward, the Governor expects inflationary pressures to moderate somewhat from the second half of this year, as the normalisation of global supply chains, as well as monetary policy tightening, will start to contain inflation. However, he admits, “inflation numbers have continued to surprise on the upside,
which suggests that inflation persistence is much stronger than expected.”
In this regard, Prof. Scicluna feels it is important to emphasise that forecasts remain surrounded by a lot of uncertainty. In fact, he attests that “globally, we can observe that economic activity has largely been more resilient than expected and indeed the shortterm picture is not that bad. On the other hand, in the context of high labour shortages and generally strong internal demand, we might see second round effects in terms of higher wages and profit margins, which might prolong inflationary pressures. This would in turn induce more monetary policy tightening and a stronger contraction in global demand.”
Locally, I point out that whilst the domestic economic performance is stable and positive, we know that Government debt is rising significantly, partly due to the significant assistance it provided to employees and businesses, as well as to the ongoing subsidy on essential commodities, particularly on fuel and energy prices.
In response to this, the Governor states that the significant level of Government support in recent years was made possible thanks to the creation of fiscal space in the period preceding the pandemic. “In recent debt sustainability exercises conducted by the Central Bank, the IMF and the European Commission, the debt ratio is not expected to increase at an explosive rate in the coming 10 years. Nevertheless, the extent to which the increase in debt is halted and reversed hinges on the ability of Government to quickly reduce the budget shortfall. As much as
“Inflation numbers have continued to surprise on the upside, which suggests that inflation persistence is much stronger than expected.”PHOTO BY CNBC
possible, consolidation efforts should be frontloaded and carried out in a sustained manner,” he says.
Sharing his opinion on the current state of public finances and the level of public debt, he goes on to state that, “despite the support measures in place, we project the fiscal deficit to narrow over time, such that it stands at around three per cent of GDP by 2025. In its latest Article IV Report, the IMF also expects the deficit-to-GDP ratio to decline in 2023. In the coming years, the debt-to-GDP ratio is expected to remain below 60 per cent.”
However, he continues, “the current policy of subsidising exceptional increases in energy costs places a significant burden on public finances as it absorbs resources that could be used more productively.” In principle, the Governor affirms that public sector institutions should be able to operate without being dependent on Government subsidies. “Government should also rebuild its fiscal buffers, to be able to respond effectively once again to any future negative shocks. In this regard, the current level of support measures ought to be reviewed and an exit strategy ought to be implemented,” he adds.
Drawing his attention to a recent debate on the importance, in real terms, of the property/development industry in Malta, I ask for the Governor’s thoughts on the subject. In his view, given the fact that the Maltese economy has diversified a lot over the years, “the share of the construction and real estate sector has declined over the years as other new sectors have developed.” Despite this, he notes, a sector’s importance must also be seen in terms of its linkages with the rest of the economy.
“A recent box in the Bank’s Quarterly Review has shown that the construction sector has strong linkages with other sectors of the economy. In other words, it generates strong demand from other sectors and is an important intermediate supplier to other sectors. For example: to build a residential dwelling, one must purchase materials and contract the services of an architect. Meanwhile, that building can be used for tourism-related activities. These linkages exist in all sectors and any break in the chain can be very problematic,” he illustrates.
In view of these linkages, the Governor believes that its output multiplier is relatively high. On the other hand, he continues, “its valueadded multiplier, which in our view is a more meaningful indicator from an economic perspective, is not among the highest in the economy, mainly because of the sector’s high import content and its high share of intermediate inputs used to produce one unit of output.”
There are also other factors he considers. “From a sustainability point of view, the construction and real estate sector must be responsive to the demand being generated by the other sectors of the economy.
From a welfare and well-being perspective, environmental issues cannot be understated,” Prof. Scicluna states, affirming that, in this respect, the real issue is not construction but planning and enforcement. “Policy makers might have to make hard choices to balance the need to continue to generate growth opportunities that are environmentally sustainable.”
Going on to consider the main challenges that our local economy is facing in the longer term, the Governor believes that the primary concern is climate change. “This could lead to increased pressures on our energy infrastructure to produce water and mitigate heat stress, which, if unaddressed, could also affect food supplies. The gradual rise in sea water levels may also necessitate the reallocation of resources away from coastal areas. More importantly, to reach climate neutrality, firms and households will have to change their behaviour significantly and there will need to be considerable investment in new technologies. These create both challenges and opportunities for the Maltese economy,” he maintains.
Population ageing is another challenge. “This implies additional pressures on age-related spending, but also a shrinking labour pool, which increases the risk of wage pressures and a loss of competitiveness. Migration could help in the short-term but cannot be relied on indefinitely, and with the labour participation rate now above that in the euro area, additional gains are increasingly difficult,” Prof. Scicluna says, warning that a contracting working age population would force a re-allocation of resources away from people-based industries towards more capital-intensive ones, unless we leverage new technologies that can support existing sectors. Therein lies the issue, as he points out, “when it comes to innovation and research we are not among the best performers.”
Finally, a third concern Prof. Scicluna highlights is geo-economic fragmentation and de-globalisation tendencies, which seem to be gaining some traction because of recent shocks. “While a degree of self-sufficiency is desirable to avert the supply difficulties these entailed, inward looking policies hinder cross-border trade and investment, as well as the exchange of knowledge and technology, which could be particularly detrimental for small open economies,” he concludes.
“The current policy of subsidising exceptional increases in energy costs places a significant burden on public finances as it absorbs resources that could be used more productively.”PHOTO BY MELVIN BUGEJA
“HR shortages are not exceptional to Malta. The current experiences on human resources and the expectation for new skills should provide a guiding star on how we are to prioritise our actions in this regard.”
Recently appointed MCESD Chairman David Xuereb shares his thoughts on Malta’s economy and plans at the helm of the advisory council with Sarah Muscat Azzopardi.
“I THINK WE ALL RECOGNISE HOW IMPORTANT SOCIAL DIALOGUE IS IN CARVING OUT AND SUPPORTING NATIONAL PRIORITIES AND AMBITIONS,” begins David Xuereb, who was appointed Chairperson of the Malta Council for Economic and Social Development (MCESD) earlier this year.
MCESD is an advisory council that issues opinions and recommendations to the Maltese Government on matters of economic and social relevance. Since its inception and “many years of important contribution to society”, the new Chairman believes that the council is now mature for a reality check to ensure it remains society’s reliable melting pot of social dialogue, thus enabling action on what matters most for
the country. Hence, he notes, with a restructured MCESD set-up, proactive and accountable delivery of prioritized proposals and feedback is set to become a responsible expectation that befits a truly engaged and well-meaning society.
While Perit Xuereb has experienced MCESD as an active representative of a social partner for some years, in his role as Chairman, he now aims to help coordinate the transformation of all social partners’ strengths and ambitions into a coordinated orchestra of positions that drive common, inclusive and compelling goals based on objective and honest expectations. “I will demand the highest levels of professionality, ethics and research from all social partners to enable S.M.A.R.T. deliverables,” he asserts, noting that this alignment will provide Government
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with digested considerations to drive national ambitions more efficiently, more democratically and hence, more successfully.
Directing his attention to Malta’s economy, which still appears to be performing well despite the significant shocks it has sustained over the past years due to the pandemic, the Russia-Ukraine war, chronic supply chain issues, and huge global inflationary pressures, I ask what he makes of the situation, and the primary challenges and opportunities for social partners.
Interestingly, the Chairman feels that the pandemic and continental unrest have accelerated the realisation of what really matters most to the economic and social expectations of today’s society, affirming, “I think therefore that this, in itself, is not a bad development. We should take this time of reflection to ensure that we understand what is expected of a regenerative economy in which our society may thrive. ESG-driven values and risk management has already taken a life of its own and this is a
good thing. If we accelerate this transformation, we may seriously improve competitivity.”
Certainly, the pandemic and the war in Ukraine have brought about an unprecedented reality, and in this regard, Perit Xuereb believes that the world is still analysing the effects of what has happened over the last three years.
“It seems that the world economy has been more resilient than expected, however the conflict of trying to curb inflation (which is expected to be with us for some time) while promoting economic growth is not an easy one to resolve,” he attests, noting that this is probably because the world economy, and Malta’s too, has been measured solely based on GDP growth. “This may be the time to consider and realise that the value of intangibles, and growth that respects the planet, while supported with ever-evolving technologies and digitalisation, may become the foundations for a new regenerative economy that will address the shortcomings we have come to realise of late. HR shortages are not exceptional to Malta. The current experiences on human resources and the expectation for new skills should provide a guiding star on how we are to prioritise our actions in this regard.”
Speaking of the increase in the number of third-country nationals in Malta over the past few years, the Chairman affirms that Malta’s demographics imply an ageing population, and the sharp increase in economic activity over the past years has demanded human resources that Malta did not have.
“Third-country nationals resolved this situation for a time, but this has, in turn, placed pressures on Malta’s infrastructure that we all have come to be justifiably concerned with. I think we are now at a point where we cannot, and probably do not wish to, see economic development that is driven by the model we have adopted over the last years,” he maintains, stating that we now have to compellingly imagine the country we want in the medium to long term, and work back to design an economic model that ensures that all those living here are provided with a complete social foundation to live well and happily, while ensuring that the resources of the country are used responsibly and sustainably.
“Along with employers and civil society, trade unions are very important partners to a meaningful, responsible and objective social dialogue that helps a country prioritise its resources in an equitable and efficient manner.”
“Governance should ensure that this ambition is managed in its detail by remaining clearly focused on what we have set out to achieve. Such a mission will need to attract cross-party agreements and should always remain accountable to future generations. The current need to address our environmental shortcomings while detailing how we are to address the United Nations Sustainable Development Goals will help us steer in a more sustainable direction,” he says.
Speaking of the significance of trade unions against this backdrop, Perit Xuereb believes that such entities are essential to ensure that all economic developments and proceeds are people-centric and justly distributed. “Along with employers and civil society, trade unions are very important partners to a meaningful, responsible and objective social dialogue that helps a country prioritise its resources in an equitable and efficient manner. Given the new forms of work currently being experienced, evolving job markets, globalisation and challenges posed by technological developments, trade unions contribute strongly to support regulation and equitable management to assure a sustainable economy and society. In a rapidly changing world, trade unions serve as essential pillars for a just and equitable society in our country,” he adds.
As regards to MCESD, the Chairman argues that “MCESD is the most important and most relevant inclusive organisation wherein all sectors of society living in Malta are offered the opportunity to proactively influence, shape and propose all that matters most for the country.” Indeed, he continues, while it is the Cabinet of Ministers that is entrusted by the population to take the executive decisions and oversee implementation, MCESD is the closest one can get to influence and support every important national decision.
“Collaboration is key, and while MCESD organises the teamwork relationship with all social partners, its direct line to encourage policy makers to take the right decisions cannot be taken lightly and must be cherished as an opportunity to be a societal force for good.”
On a personal level, he concludes, as a parent of three children and a well-meaning citizen, he feels duty bound to collaborate with as many like-minded and well-intended individuals of influence to contribute to the responsible transformations that future generations expect.
“The MCESD is ideally placed to take on this responsibility, especially when such transitions are expected to cut across all sectors of our society and economic sectors. These are exciting times, but the rate of change will not be for the faint-hearted. I look forward to collaborating strongly with my MCESD council members and any other accountable organisation/individual to support the Government of the country to lead successfully.”
“I look forward to collaborating strongly with my MCESD council members and any other accountable organisation/individual to support the Government of the country to lead successfully.”
In less than two years from launch in October 2021, Welbee’s has already managed to cement itself as a household name with Maltese shoppers and families. Yet the journey has been far from plain sailing.
Jonathan Shaw, CEO at Retail Marketing Ltd, the company behind the supermarket chain, shares his thoughts on the challenges faced by the company and its exciting plans with Edward Bonello
‘On top of providing an extensive selection of brands at competitive prices, we make sure to show our customers how much we value them’
With 460 employees on its books, running nine supermarkets spread across the country, the brand brings together seven previously competing players, some of which have been in the business for several decades.
“This naturally presented its own series of challenges; however, the shareholders had a vision for the greater benefit. In fact, the entrepreneurs behind some of Malta’s best loved supermarkets had already been collaborating on several levels, among which to create economies of scale at importation points. Having identical goals, the merger was seen as the natural next step,” Jonathan explains.
The rebrand naturally brought about significant discussion on the direction to be taken, but ultimately the new name was chosen to emphasise the values of well-being and a distinct familiarity the group could build on. “We are happy to note that the public has already built an emotional connection with our brand, which we have invested in generously,” the CEO affirms.
In bringing together nine established supermarkets spread across Malta, Welbee’s created a cohesive brand that managed to communicate directly with shoppers in Malta, keeping the message simple and effective.
“Contrary to what might have been expected, we took a very understated approach towards the rebrand. We did, of course, change all the signage, uniforms, and merchandise overnight which was a gargantuan task in itself. However, we didn’t claim for a second that anything intrinsically central to our operation had changed. On the contrary, we emphasised the fact that though the name and colours had changed, the experience and, most importantly, the people would remain the same,” Jonathan reveals.
This proved to be an astute move that kept the regulars coming and developed new brand loyalty. “It would have been ill-advised for us to suggest that we were going to become instantly better because we would have changed the letters on the sign. Instead, we opted to stress how it was still the same staff behind each counter that would be helping the shoppers, the same people at the till – the only difference was
“Our values haven’t changed since our shareholders opened their shops decades ago, building hundreds of relationships with generations of shoppers and suppliers.”PHOTOS BY BERNARD POLIDANO
that greater coordination would result in greater benefits for customers.”
And it worked, as customers appreciated the honesty, and Welbee’s has set itself on a trajectory for growth. In fact, since the merger, the group has already opened a new supermarket at Campus Hub next door to the University of Malta, and will be opening a new outlet at Shoreline in Smart City in the near future.
The secret behind this success, according to Jonathan, is an unwavering commitment towards the communities Welbee’s services, underscoring their motto ‘We are family’, with every step they take.
“In the near future, we want to grow stronger on the tech side of the shopping experience, providing superior solutions for online shopping, both via app, as well as through our website.”
“Our values haven’t changed since our shareholders opened their shops decades ago, building hundreds of relationships with generations of shoppers and suppliers. We make it a point to remain sensitive to the needs of our customers. One way we do this is by making sure our shelves are well stocked with the products they love. In fact, at our supermarkets, we stock over 25,000 articles, providing a vast choice in each supermarket. For us, it would be easier to take a discount-store approach with fewer items on offer, but that goes completely counter to our vision,” Jonathan continues.
Welbee’s is also adamant that it works closely with local suppliers, sustaining a heathy relationship on the supply side as well. “We are proud to say that we do not engage in parallel trading. We feel we have a contribution to make within the context of the Maltese economy and it is not in our interest to disrupt the balance we have helped create over the years. Loyalty goes both ways, and is key, also in this regard, and we are grateful to continue collaborating closely with hundreds of professionals in this field.”
Finally, the central piece of the puzzle is the staff, who welcome customers to the Welbee’s shops every day, some of whom have been helping clients at the same shops for decades. “We are lucky to enjoy a very high level of employee retention, with most employees having been with us for the long-term. Though we have an international complement of staff representing some 36 nationalities, more than half of them are Maltese, maintaining a strong link to our roots. With the opening of new premises in the near future, we are looking at growing even further, taking our headcount to 500 by year’s end,” Jonathan adds.
The positive relationship Welbee’s has with its customers goes beyond securing the best prices on the market. It is also a matter of showing appreciation for their custom. “On top of providing an extensive selection of brands at competitive prices, we also make sure to show our customers how much we value them. In fact, our cash-back scheme refunds seven per cent of their bill with every €100 spent the following month, effectively further reducing shopping costs significantly.”
Looking ahead, Jonathan reveals that Welbee’s has exciting plans as it continues to strengthen its position, increasing range and market share.
“In the near future, we want to grow stronger on the tech side of the shopping experience, providing superior solutions for online shopping, both via app, as well as through our website. We want to be at the forefront in this field, as we strive to continue building strong relationships with more generations of customers well into the future,” Jonathan concludes.
Harvest Technology plc encompasses several leading businesses including PTL, APCO and ApcoPay, providing the Group with a prominent edge in technological solutions and expertise.
Julian Micallef Tagliaferro explores how this dynamic structure allows the companies to continue building on these synergies and look ahead to expand operations both locally and internationally.
‘No one can remain competitive in the technology sector without constantly renewing themselves’
HARVEST TECHNOLOGY WAS SET UP WITH THE AIM OF CONNECTING THE RESPECTIVE INITIATIVES BEING UNDERTAKEN BY THREE TECH-DRIVEN LEADING COMPANIES, to pave the way for increased sharing of expertise and solutions, and in so doing, enabling a better scaling up of operations.
With business requirements calling for solutions that are easily accessible to clients but which need to be powered by complex back-end operations to get the desired results, the importance of combined efforts is evident.
Harvest Technology plc is an investment company within the Hili Ventures Group, with the latter operating in 11 countries, engaging 11,000 employees and counting, and involved in sectors covering logistics, retail and property. The Group traces its history back to 1923, and this year celebrates its centenary.
“Harvest Technology supports its subsidiaries in several areas including marketing, human resources, finance, and legal matters, providing for more efficiency in these core activities.”
The three main operational holdings of Harvest Technology cover a wide range of sectors. Apcopay is an all-in-one payments gateway offering solutions to clients with demanding, complex operations such as airlines and gaming companies. Many end-users will have engaged with Apcopay solutions when booking flight tickets, for example. Today, it continues to invest heavily in upgrading the Payments Gateway to a cloud architecture and one can only expect more new features to continue being enabled in this regard.
PTL, meanwhile, provides IT solutions consultancy and systems integration, bringing with it the partnerships that it has long established with global names such as IBM, Microsoft, Cisco, NCR and others. PTL is a renowned name on the local market, having already been in operation for many decades before being acquired by Hili Ventures some 20 years ago.
The third main holding, Apco Ltd, specialises in industryspecific hardware, in sectors such as security, automation and self-service. Here too, countless end-users are using Apco products in their daily lives via self-service checkout systems at leading stores, or at charging stations for electric vehicles. Apco Ltd represents major brands like Thales, Gunnebo, Diebold Nixdorf and Keba.
Harvest Technology supports its subsidiaries in several areas including marketing, human resources, finance, and legal
matters, providing for more efficiency in these core activities. It also has a cross-group business development function that includes the Hili Ventures Group, allowing for support across the whole spectrum of this large group of companies and which underpins several operations.
Ensuring that all the moving parts work in symphony is Harvest Technology’s hallmark. An example of this is a soon-to-belaunched project involving an Unmanned Aerial Vehicle (UAV).
Providing services in both hardware and software, Apco Ltd has been recently tasked with providing a UAV to be utilised in both public and private economic sectors. Meanwhile, another holding, PTL, offers several IT solutions related to border security. These two companies, in synergy, can offer significant value to the client, ensuring that the hardware provided is supplemented with good software services and support in such a critical role. This same level of service and commercial synergy can be replicated in other scenarios and to other clients.
The emphasis is very much on supporting the companies’ clients. The Group, in fact, has established long-term relationships. And while the company is constantly evolving and looking out for new technologies, it never loses focus on the core basics. These core values, along with an emphasis on support, lead many customers to maintain the working relationship with Harvest Technologies, continuing to seek the Group for solutions.
A further advantage of forming part of a much larger group is the extent of diversity in people, experience and expertise that can be brought to any project. And to remain
competitive, the company is cognisant of the fact that no one can operate and remain competitive in the technology sector without constantly renewing themselves.
With this Group, internationalisation is a given. Harvest Technology is constantly looking for opportunities beyond Malta’s shores to offer its expertise in payments, health, security and banking across the globe, particularly in countries across the continents of Africa, Latin America and Europe – with the latter including the United Kingdom. Harvest is also continuously assessing and exploring new strategic acquisitions to support their holdings. All while ensuring that quality in the delivery remains throughout, both locally and internationally, and maintaining loyalty to clients. And as businesses everywhere seek to become ever more efficient, the company contends that the use of technology as a facilitator in this regard is expected to continue increasing. Harvest Technology, through its subsidiaries, is well-positioned to offer its expert services, leading to a significant contribution to its clients’ success. With the Group’s appetite for opportunities, one can be assured of being in the right company.
“Internationalisation is a given. Harvest Technology is constantly looking for opportunities beyond Malta’s shores to offer its expertise in payments, health, security and banking across the globe.”
BOV Business Development Executive Kenneth B. Micallef tells Robert Fenech how the bank’s commitment to sustainability is being actioned through its interest-free facility for businesses looking to green their operations.
UNTIL RECENTLY, SUSTAINABILITY WAS OFTEN UNDERSTOOD AS A MERE BUZZWORD. Now, it is a vital principle underpinning global and local plans for economic regeneration. That means that businesses are facing increasing pressure to factor in resource efficiency at every level of their work, as governments race to meet ambitious international targets to cut emissions.
The investments needed are substantial and capital intensive, but the journey to a green economy is not one that businesses will have to take on their own. Recognising that the effort required needs to be undertaken in a spirit of partnership if it is to be successful, both the European Union and Malta’s Government are stepping in to help economic actors do their bit.
Earlier this year, the leadership of Malta’s largest bank, BOV, stated that the bank’s roadmap is guided by environmental, social and governance (ESG) considerations. The products it has recently brought to market reflect this, with innovative credit products designed to make it easier than ever for businesses to undertake the investment needed to place sustainability at the heart of their operations.
BOV CEO Kenneth Farrugia has previously acknowledged the responsibility that lies upon banks’ shoulders during this period of transition to a greener economy, saying “it is up to us to develop
flexible financial solutions to incentivise market players to implement the required changes.”
Here, BOV Business Development Executive Kenneth B. Micallef elucidates the bank’s Business Energy Loan Package, one of the green initiatives being undertaken by BOV in line with its environmental commitment.
“The provision of energy efficient financing to the business community falls squarely within this strategy,” he says, explaining that the objective of the package is to support enterprises of all sizes in improving their energy efficiency and introducing renewable energy into their energy mix.
“What is most attractive about the Business Energy Loan Package,” he continues, “is the fact that this loan comes totally interest free.”
With global and European interest rates shooting up throughout 2022 and the first part of 2023, the prospect of interest-free loans may be met with incredulity. The attractive rate is supported by the Maltese Energy Efficiency (EE) and Renewable Energy (RE) fund of funds (EERE Malta), co-financed by the Maltese Government and the European Union under the European Regional Development Fund (ERDF).
The loan is actually granted at a fixed rate of 5.15 per cent, but through the co-financing agreement which governs the package, the customer is given a full rebate to cover all the interest accrued – thus making the loan totally interest neutral.
Unsurprisingly, the effective zero interest rate facility has proven popular among local entities interested in keeping heating, cooling and other energy costs down while putting themselves in pole position to comply with existing and incoming ESG requirements.
Aside from the headline-grabbing interest rate, the BOV Business Energy Loan boasts a number of other features and benefits which make it even more attractive.
For one, it carries no processing or other fees, and businesses may choose to settle it early at no cost. The only charge related to the facility is a commitment fee of 0.5 per cent per annum applied on undrawn loan balances after six months from the issuance of the sanction letter.
The package also comes with reduced security requirements: the bank will only ask for collateral to cover 25 per cent of the amount of the loan. Additionally, in
“Every request is considered on its own particular merits, with customers guided and supported throughout the entire application process.”
certain cases, it may also grant a moratorium on the repayment of capital for up to six months. Depending on the type of investment being made, the loan can be extended for a period of 10 years and will remain interest free for the entire period.
The maximum loan amount for businesses is €750,000, subject to the regular De Minimis state aid rules. This goes up to €3 million for non-state aid entities like regulated authorities, constituted bodies and NGOs.
Another benefit of the package is the long list of investments that qualify for financing, with Mr Micallef describing it as covering “all those items which will enable businesses to reduce their CO2 emissions.”
This includes investment in energy efficient building systems within the business premises which leads to better insulation, cooling and heating, ventilation, and lighting. On the energy generation side, the installation of photovoltaic panels remains a perennial favourite, as the technology progresses by leaps and bounds every year.
Mr Micallef notes that businesses are also increasingly looking at their vehicle fleet for energy and cost savings, saying that the upgrading of businesses’ vehicles to electric and hybrid motors is gaining momentum.
Turning to eligibility, the BOV executive explains that there is no minimum size for an entity to benefit from the package, and self-employed individuals can also apply. Small and medium enterprises (SMEs), corporate entities, regulatory authorities, constituted bodies, and non-governmental organisations (NGOs) are all eligible for financing under the BOV Business Energy Loan facility.
There are a few economic sectors, such as agriculture, fisheries, property development, and transport, which are excluded from the scheme due to EU state aid rules, but BOV does offer alternative solutions for entities involved in these sectors.
Asked for the typical profile of applicants for a business energy loan, Mr Micallef says that “interest is widespread, and applications are being received from all sectors of the economy.”
“We have applicants who are just starting their business and want to invest in a small business premises and perhaps an electric vehicle. But we also have large corporates that have plans to expand their business premises and others that intend on upgrading their entire vehicle fleet to go electric.”
He adds that “every request is considered on its own particular merits, with customers guided and supported throughout the entire application process.” This also entails confirming the eligible
costs in line with the scheme through the www.climalta.eu website. Those interested in availing themselves of this package can visit one of BOV’s branches or business centres, where they will find a member of staff to explain what the package can offer in direct relation to the individual investment plan.
Mr Micallef makes it clear that BOV is committed to supporting Malta’s transition to a low carbon economy and inducing environmentally conscious behaviour among its stakeholders, including its customers.
“This facility is in line with this commitment, and the final objective remains for BOV to be a leading supporter within a community which focuses on achieving a net-zero environmental impact to achieve local and international goals,” he concludes.
The financing provided benefits from support from funding by the European Union under the European Regional Development Fund (ERDF) via the Energy Efficiency and Renewable Energy Fund – Malta (EERE Malta). The objective of this fund and its first loss guarantee combined with an interest rate subsidy scheme is to support access to finance to final recipients for their investments in Energy Efficiency and Renewable Energy measures.
All loans are subject to normal bank lending criteria, credit approval by the Bank and a credit agreement. Further terms and conditions are available from www.bov.com. Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, Il-Belt Valletta VLT 1130. Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap. 371 of the Laws of Malta).
“What is most attractive about the Business Energy Loan Package, is the fact that this loan comes totally interest free.”
Business 1st CEO Marika Tonna tells Robert Fenech all about a new initiative to streamline and simplify access to Government services and incentives.
AS THE SHIFT TO A DIGITAL ECONOMY GATHERS PACE, more and more businesses are using online means as their primary mode of internal and external communication. By any measure, Malta’s eGovernment initiatives are a major success, with the country ranking in first place for the last two years in a row in the European Commission’s eGovernment Benchmark.
Although there is no question that businesses can access services online, their provision is conducted in a manner that mirrors the analogue process, with each Government department setting up independent systems.
“Attempts at integrating business-related procedures were very limited,” says Marika Tonna, CEO of Business 1st, a one-stop shop for businesses operated by Malta Enterprise. “And although access to Governmentrelated services had improved dramatically, we were still missing a highlevel business portal which brings all of them onto one platform.”
The new portal, she says, will change the way that businesses interact with Government, creating a “paradigm shift from the traditional approach where multiple services are accessed separately to one where multiple submissions are made from a single point.” Therefore, it will allow users to open and close a business, pay taxes, manage licences, and apply for incentives and other services from 38 different Government entities in a seamless manner.
Ms Tonna promises an experience that is “entirely different to the usual repeated filling of form after form that we are used to.” Instead, the portal will present an interactive and more efficient alternative. For example, when seeking to set up a business, the user will be asked whether they are Maltese, European, or a Third-Country National, and then whether the entity being established is a company, a partnership, or a self-employed person, as well as the line of work the new entity will be involved in. “If you want to open a restaurant, it will automatically inform you that a licence is
“The portal is built on the ‘once only’ principle, so that businesses do not need to waste time filling in lengthy forms asking for information which Government already holds in one or more departments.”
required from the Malta Tourism Authority,” she says, “but it will not request information that was already given.”
The bulk of many forms, in fact, is made up of the same questions, such as the name and address, that are asked over and over since there is currently no sharing of information between Government departments. The portal promises to change all that: “It is built on the ‘once only’ principle,” says Ms Tonna, “so that businesses do not need to waste time filling in lengthy forms asking for information which Government already holds in one or more departments.”
Additionally, information which Government does not already have on the business will be supplied only once to the public administration and will thereon, if it is not time bound, be shared, according to legal provisions, across different entities, on a needs-only basis. “This should result in drastically decreasing the administrative burden on the business community,” she notes.
Just as importantly, the new portal will serve as an intelligent guide to the myriad Government services and incentives available, enhancing business compliance with rules and regulations. It will also remind businesses when licences and permits are up for renewal or payments to Government are due, and notify them on new rules and regulations, incentives, and any other information relevant to their line of work.
“It is true that ignorance is no excuse to break the law,” says Ms Tonna, “but wouldn’t it be better if we can help business know, understand, and follow the rules by pointing them in the right direction?”
The new portal will be phased in slowly, in three stages. The first stage involves the launch of a Business Register, allowing for the creation and dissolution of businesses online and creating a constantly updated database of Malta’s active enterprises. Ms Tonna is quick to point out that this will not involve any extra steps for businesses, with the register being automatically updated when they register the business on the portal.
The second phase, currently in the works, will see the bulk of Government services introduced to the portal, including tax systems, licences and incentives. “In keeping with the Pareto principle (that 80 per cent of results arise from 20 per cent of the effort, and vice versa), we are focusing on the main factors affecting most businesses in Malta.”
Although phase two involves “a big chunk” of services, Ms Tonna explains that its introduction is actually a bit easier. “There was a tremendous amount of work to be done to get the register up and running,” she says. “We had to amalgamate a vast array of idiosyncratic systems often running on legacy software.” On the tech side, two studies funded by the European Union were undertaken to see whether it would even be technologically feasible to get all these different systems to feed into and receive information from the new portal. A solution was found using APIs, but the task did not stop there.
“Building the register has also been a challenge because different departments have different data, and we’re bringing it all together. Many people – and remember that this includes the self-employed – would perhaps register their business at their parents’ house, only to later rent or buy a premises, or move out themselves, without ever updating their records.” She notes that a lot of work has gone into cleaning up Government-held records to bring uniformity and coherence to the whole.
There was also the question of inducing a collaborative mindset in departments that had no history of working together: “We needed to understand that although each department has its own way of doing things, what matters for businesses is that things are done efficiently and effectively.”
This is a long-term project and the third and final phase is a way off, but will essentially include the long tail of services offered beyond the 38 entities involved in the initial phases. Ms Tonna brings up agricultural activities among those that will be eventually incorporated into the platform. “The way farms
“It is true that ignorance is no excuse to break the law, but wouldn’t it be better if we can help business know, understand, and follow the rules by pointing them in the right direction?”
are registered, the incentives available – they are completely different to other systems. So, in phase three, we will be including all the other business-related services that do not slot in so neatly into the first and second phases.”
Ms Tonna addresses the issue of the digital divide that may prevent older and less tech savvy business operators from engaging with the new platform, saying that Business 1st will be stepping up to assist clients who need help with accessing these services.
Asked to give a final comment, she says: “I used to ask myself why I was entrusted with managing this project, because the truth is that I am not that tech savvy. But, in essence, this
is a customer centricity and public administration efficiency exercise, both of which fall within my areas of expertise; the technological part, without minimising its importance, is a tool to achieve our aims. As milestone after milestone has been ticked off, I have understood that this is not primarily a tech initiative. It is a business reengineering project, looking at every service and the related forms and trying to understand, simplify and amalgamate the process, so that it becomes seamless – and the benefits can be enjoyed whatever the user’s ease with computers.”
As the ambitious project edges closer to launch, more information will become available to showcase the ways it can facilitate everyday business operations.
Since 1982, Dhalia, Malta’s largest privately owned real estate agency, has endeavoured to look ahead, moulding its operations and offerings to meet the needs of the shifting property market. Here, Chris Bonett, the firm’s Marketing Manager, speaks to Rebecca Anastasi about why the company has prioritised a socially responsible approach.
LAST APRIL, DHALIA REAL ESTATE, TOGETHER WITH ADVISORY FIRM GRANT THORNTON MALTA, published the third edition of The Malta Property Landscape, an analysis of the island’s real estate sector, in which current market trends were reviewed, and analysed, with a view to garner as accurate a picture as possible of the property industry.
Its findings, divided into three main sections – the current housing market, housing sustainability and the commercial office space market – highlighted one recurrent theme: the need to ensure a sustainable approach in growing and nurturing the real estate sector on the island. “This is both from the point of view of environmental sustainability, as well as from a business and commercial perspective,” Chris Bonett, Dhalia’s Marketing Manager says.
“The conclusions showed that we have a surplus of vacant commercial properties, and there is a glaring affordabilty issue in residential property,” he elaborates, adding that these trends are impacting the lower end categories of the market. Indeed, the report notes that from 2013 to 2020, the house price-to-income ratio (that is, the price of a typical property vis-à-vis the median or average income in Malta) increased by 48 per cent. In other words, the cost of housing on the islands has far outstripped the rise in people’s wages.
“We are looking ahead; we offer professionalism, innovation, commitment and prioritise sustainability and, in so doing, we distinguish ourselves from the competition.”
BY TONIO LOMBARDI
Mr Bonett, however, notes that as a result, there is an increasing trend of people choosing to renovate existing properties. He also credits recent Government grants for this trend. Indeed, through the VAT grant scheme – whereby property owners are given up to €54,000 in VAT refunds to restore certain types of old properties in specific Urban Conservation Areas (UCAs) – Dhalia has seen an increase in the number of people vying to revive tired, and, in some cases, heritage buildings. “In this way, buyers also get better value for what they are willing to spend. This has been of big interest, so we’re seeing some very nice old houses being turned into amazing homes,” he explains, adding that this has been particularly the case post-COVID, as more people have sought outside space.
Mr Bonett also refers to the €10,000 grant for first-time buyers, which, he says, might have an impact on the industry. “While this €10,000 grant is spread out over 10 years, it still helps,” Mr Bonett asserts. It’s still an uphill struggle for some, however, as the 2023 property report spelt out. For, while the maximum affordable house price for a two-adult household is €304,000 –approximately €40,000 more than the average price for a housing unit, which stands at €259,153 – many households earn less than the median of €40,212 a year. Indeed, for those on the minimum wage, their borrowing capacity only reaches around €145,000 – which is equivalent to only 55.8 per cent of the average property price, the report specifies, thus making property, today, unaffordable for a subsection of the population.
“Of course, this is not applicable to graduates falling within the 24–35-year-old demographic, who have already been working for a few years and, who, therefore, already have some income. For these, as Dhalia has seen, affordability is not a critical issue. They may still afford properties ranging in price from €350,000 to €450,000, with help from the bank, if they have stable jobs. But, for those on the lower end of the income scale, things may be more challenging.”
This is partly why the issue of social sustainability has become of prime concern at Dhalia. “We are looking ahead; we offer professionalism, innovation, commitment and prioritise sustainability and, in so doing, we distinguish ourselves from the competition,” Mr Bonett asserts. Indeed, the firm has also acquired accreditation from the Malta Further and Higher Education Authority (MFHEA) to train property consultants and offer the opportunity for promising individuals to earn their licences. “We have a strong reputation, and we’re a trusted choice locally; this is evident even from the investment we have made in building our human resources and our infrastructure,” he states.
Today, the company also operates under three different brands: Dhalia; DhaliaCRE, the firm’s commercial arm, trading business and office properties; and Luxury Living by Dhalia, launched 15 years ago, but recently rebranded, and catering to the foreign market. “With regards to the latter, we have a collaboration with Luxury Portfolio International, a global portal which highlights the
“We need to ensure better values permeate our sector, whether this is in terms of environmental consciousness, or affordability for the generations which follow.”
most beautiful properties across the world, featuring them in high-end magazines, such as Condé Nast, Country Life and the Wall Street Journal, as well as newspapers such as the Financial Times in New York.”
Such varied work requires specialists in diverse fields and, indeed, all the brands need Dhalia’s 110 agents to be specifically trained. “We provide educational programmes across the areas of specialisation since we want talents who are able to work within or across these lines of work,” Mr Bonett states, adding that it is quite a feat considering the vast network of 14 offices
in Malta and Gozo. “Our team of staff provide the premium level of service our clients expect of us, whether a client is looking to sell, buy or lease – and we take pride in these standards,” he continues.
This perspective is aligned with the firm’s philosophy of sustainability, Mr Bonett concludes, for “we need to ensure better values permeate throughout our sector, whether this is in terms of environmental consciousness, or affordability for the generations which follow.”
Pet Nutrition House has proven that size and location are no match for ambition, expertise, and a commitment to excellence. Dean Muscat speaks to Chief Operating Officer Sean Wismayer to discover how this local company has carved a niche in the global pet food industry, challenging conventions, and bringing a wave of change that is transforming the way we nourish our four-legged companions.
IN AN FMCG INDUSTRY DOMINATED BY MULTI-NATIONAL CONGLOMERATES THAT HAVE LONG ESTABLISHED THEIR DOMINANCE, it seems almost irrational to think that a small, family-run company on a tiny island in the Mediterranean could challenge the status quo. Yet, against all odds, Malta’s very own Pet Nutrition House has not only dared to compete but has emerged as a frontrunner in the battle against low-quality, cheaply produced pet foods.
In 2010, Pet Nutrition House made a bold decision to offer pet owners a higher quality alternative to the prevailing products flooding the international pet food market. Their unwavering commitment to delivering exceptional nutrition to our furry companions was initially met with scepticism and adversity. After all, how could a modest company from Malta hope to rival the industry giants that had established their reign decades ago?
But Pet Nutrition House has defied expectations. Their success stems from a tireless pursuit of excellence driven by meticulous research, a relentless quest for the finest ingredients and raw materials, and a promise to back their animal nutrition claims with scientific rigour. The result? A remarkable range of dog and cat food products, through their Prince and Princess brands, that have set new benchmarks in the pet food industry. In a mere span of 13 years, they have conquered the hearts (and palates) of discerning consumers, one loyal customer at a time. Bolstered by strategic partnerships with international distributors that share their ethos for a better standard of pet food, Pet Nutrition House has managed to expand its operations to an astounding 85 markets worldwide.
“As a family deeply passionate about our pets, we understand the desire of pet owners to provide only the very best for their beloved companions. That’s why we make substantial investments in research and development, ensuring that our products are not only nutritionally sound but also innovative in their formulation,” explains Sean Wismayer, who oversees operations at his family’s company.
In the pet industry, it is common for multinationals to prioritise palatability and cost reduction, often utilising ingredients like rice and grains as their primary component. However, dogs and cats lack the digestive capacity to derive proper nutrition from such ingredients. Wismayer explains that Pet Nutrition House instead places focus on its first ingredient being high-quality meat. The impact of this approach is evident in the pets themselves, whose improved coats, skin, behaviour, and overall well-being reflect the exceptional quality of the company’s offerings.
This year Pet Nutrition House is set to expand its range of pet food offerings with a new line of locally produced Prince and Princess Blue Fin Tuna Training Treats. This anticipated addition to their product line has been meticulously produced, undergoing an exhaustive 10-month journey from inception to market launch. Throughout the process, the team has conducted a comprehensive array of scientific studies and robust internal and external research to identify the finest raw materials for these treat products.
“Our extensive research led us to discover that tuna is not only highly palatable but also boasts an exceptional omega 3 and 6 content, making it an incredibly valuable raw material. While it is undoubtedly an expensive
choice, we firmly believe that its quality and benefits will appeal to consumers, who are increasingly turning to pet foods with a higher nutritional value. Also, by incorporating active local ingredients found within the Mediterranean diet, we are pushing the boundaries of what’s locally available to us. In fact, we are the only factory in the world currently utilising bluefin tuna as a raw material in pet food products,” Sean says with a genuine note of pride.
The new range features other locally available active ingredients, such as carob, olive leaf, prickly pear, and pomegranate. Scientific studies, conducted in collaboration with leading universities, validate the functional claims associated with these innovative formulations, which lead to a significant boost in pets’ immune responses, weight control, anti-inflammatory properties, and improved cardiovascular health, among other benefits.
When asked about how Pet Nutrition House ensures the freshness, naturalness, and transparency of its ingredients, Sean highlights their rigorous approach: “We conduct thorough background checks on all our suppliers to verify their sustainability practices for each of our ingredients. Quality is paramount, so we request samples to test before making purchases. For instance, with our bluefin tuna, we source it locally, ensuring the fisheries adhere to quotas, dolphin-safe certifications, and sustainable fishing processes. We also prioritise local suppliers because it enables us to reduce double handling and transportation, improving the sustainability of our products.”
All these efforts are paying off handsomely and the response to the new bluefin tuna treats has already been overwhelmingly positive. During market testing, international distributors have eagerly placed orders, hailing the treats for their unique properties and innovative nature. The reputation of bluefin tuna, particularly in Japan and the eastern region, adds to the treats’ allure.
This year, Pet Nutrition House has also celebrated the inauguration of a new factory plant in the San Gwann Industrial Estate Area. The company made a substantial investment in the plant and cutting-edge testing equipment to ensure that standards exceed the typical requirements for a feed plant.
“Our factory grants us a remarkable degree of freedom to focus on research and development. We want to continue to distinguish ourselves from our global competitors. That’s why we purposefully maintain a more modest production scale. This deliberate choice affords us greater control over the quality of our pet foods. With lower throughput, we can afford to discard any products that do not meet our standards without significant financial impact. Ultimately, this approach ensures the exceptional quality of Pet Nutrition House products, which really sets us apart in the industry.”
Looking ahead, Sean reveals that Pet Nutrition House is already planning to develop more exciting products and initiatives. They have their sights set on introducing a new range of dry food, as well as high-quality chewy snacks, which will position them uniquely in a market largely dominated by China. Moreover, the company remains steadfast in its commitment to educating consumers about the benefits their products offer, driven by their own deep affinity for pets.
“As a family deeply passionate about our pets, we understand the desire of pet owners to provide only the very best for their beloved companions.”
Thanks to their hard work and determination, together with a mission to incorporate Maltese-inspired designs into their packaging and marketing materials, Pet Nutrition House has triumphantly positioned Malta on the global pet food stage.
“We are extremely proud to be a Maltese company that has made a mark in the international scene. Now with our new factory, we hope to take this one step further by utilising even more untapped local resources. Through all that we do, we will strive to remain true to our roots as we continue to make a positive impact in the pet food industry, locally and beyond, with high-quality and sustainable products,” Sean concludes.
“We are extremely proud to be a Maltese company that has made a mark in the international scene.”
More than one in five residents in Malta are now of foreign origin, with an ever-increasing number originating from outside the European Union. Here, Rebecca Anastasi speaks to business stakeholders and economists to understand the complex ramifications the arrival of third-country nationals (TCNs) has had on the island.
ACCORDING TO THE NATIONAL STATISTICS OFFICE’S CENSUS OF POPULATION AND HOUSING 2021, in 2020, the latest year for which the NSO has data, 14,822 people immigrated to Malta, with more than half of these originating from outside the European Union, referred to as Third-Country Nationals (TCNs). While these 12 months are not fully representative of previous rates of movement – due to the impact of the COVID-19 pandemic – the Office underscored the fact that more than three times the number of people landed on our shores, to settle on the island permanently, than they had just nine years previously, in 2011.
“The increasing presence of foreign workers in our economy was expected given the rate of economic growth experienced in the last nine or 10 years,” economist Prof. Philip von Brockdorff explains, saying that these arrivals are, in fact, “a reflection of how our economy has grown, with the GDP doubling over the last 10 years. The labour market had to respond to this growth, but the supply of Maltese workers was clearly insufficient to meet demand, and this explains why we are now so dependent on foreign workers, especially TCNs, most of whom earn less than the median income,” he says.
“The most direct positive ramification is that labourintensive growth [in the services sectors] would have been severely limited without third-country nationals.”
Prof. Edward Scicluna, Governor, Central Bank of Malta
Without the boost accorded to the labour market because of these arrivals, “economic growth would have been stifled given that our economy is so reliant on sectors such as tourism, social care and other services,” the economist continues. Indeed, Government has also been able to increase revenues, in tandem with the increase in tax and social security contributions, allowing for an increased expenditure in the areas of health and education, Prof. Brockdorff asserts.
The resulting societal, political and economic shifts, however, did not come without their challenges. The influx of foreign workers has “delayed economic restructuring, with the economy still heavily reliant on sectors with low value added and productivity,” he attests. “Also, it is very evident that Malta’s infrastructure – from its airport to its roads – is under strain from the sheer weight of numbers. Coping with increasing numbers needs to be managed, and this will require massive investment at some stage.”
Looking ahead, Prof. von Brockdorff believes the island needs to “re-think our economic growth model given our EU commitments on sustainable economic growth, the European Green Deal and the transition towards a greener economy, as well as the change towards a more digital economy. This transition will no doubt require economic restructuring with more emphasis on more value added and productive jobs.”
This, however, will not be an easy task. “The transition will require bold and creative decisions. Whereas reliance on foreign workers will remain, increasingly the jobs filled by foreign workers will be more specialised and technical. That would be largely positive for the economy. As for the number of foreign workers, I do not expect the numbers to fall unless there is a substantial slowdown in our economy. However, our economy’s resilience to economic shocks has been quite impressive, and that should serve us well as we transit towards a more sustainable economic growth model.”
Lara Camilleri, Chief Operations Officer at recruitment agency Konnekt, also attests to many of these realities. “The need for TCNs over the past 10 years has steadily been on the rise and has been felt across industries from financial services to tech to manufacturing,” she says. This is because “the local market cannot keep up with the demand for talent, so the increase of TCNs in Malta was not just a ‘nice to have’ scenario, but an unavoidable one, if we wanted to ensure we’re on the map vis-àvis foreign direct investment and economic growth.”
The size of the island’s local population has played a substantial role in this regard. “Given that the talent pool locally is relatively small, having this injection of talent obviously supports businesses
“Coping with increasing numbers needs to be managed and this will require massive investment at some stage.”
Prof. Philip von Brockdorff, Economist
“Today, we’ve realised that retention is a big issue and the only way to retain is to invest in them, to future-proof, in other words.”
Chris Vassallo Cesareo, President, Malta Chamber
locally to continue to grow and maintain the smooth running of their operations.”
However, today, the “‘wait time’ to onboard TCNs can take anywhere from three to six months because of delays to get appointments and to process their paperwork. So, some employers are tentative about going down this route, even when they have urgent vacancies to fill,” she says. As a result, she continues, “we have a catch-22 situation: you have a recruitment need; you know you will struggle to source locally, but you also know that it will take an extraordinary amount of time to find, relocate and get a work permit for a TCN – so what are you left with?”
The COO insists that changes on a national level are necessary, “otherwise we are setting ourselves up for failure.” To prevent this, the island “will most certainly need to find a way to be significantly more efficient and completely revamp the way work permit applications and renewals are processed, to make it more practical and sustainable for businesses locally to maintain operations more seamlessly.”
Prof. Edward Scicluna, the Governor of the Central Bank of Malta and former Minister of Finance, agrees that “inward migration has been extremely important to fill vacancies that would have otherwise remained unfilled. The reliance on TCNs is also quite normal in European countries given the fact that other EU economies are themselves experiencing ageing populations and a shortage of labour.”
Hence, he continues, “the most direct positive ramification is that labour-intensive growth would have been severely
limited without third-country nationals. Also, as economic wealth rises, the readiness of nationals to engage in certain low-paying jobs tends to decline. TCNs are vital to keep such services ongoing.”
The Governor admits, however, that there have been challenges – and issues remain in this regard. “In some respect, the challenges brought about by TCNs also apply to foreign workers in general. A Central Bank of Malta study has shown that the length of stay of foreign workers is very low (almost half leave within one year). This implies that the cost of hiring for businesses is higher than normal, because much time is spent on the hiring process itself, as well as training.”
Moreover, “the reliance on TCNs is also very costly to administer. On the one hand, businesses often must face lengthy visa application processes. On the other, our institutions are faced with an ever-growing demand for applications, which puts them under pressure. Thus, while TCNs tend to reduce wage pressures, businesses and institutions must incur other non-wage costs.” And these demands are matched by others related to “infrastructure, demand for public services, as well as social integration,” with Prof. Scicluna predicting that the need for TCNs will remain “elevated in the next five years” and thus, these threats to growth might remain.
Chris Vassallo Cesareo, the President of The Malta Chamber of Commerce takes a more positive outlook, saying that, in his view, Malta has “matured” and has understood better which skillsets the diverse industries require – a realisation which impacts upon the nature of TCNs immigrating. “At
“Given that the talent pool locally is relatively small, having this injection of talent obviously supports businesses locally to continue to grow.”
Lara Camilleri, Chief Operations Officer, Konnekt
first, everyone was in a state of panic to fill vacancies; we needed manpower. Today, we’ve realised that retention is a big issue and the only way to retain is to invest in them, to future-proof, in other words,” he says, clarifying that the employer needs to train and offer a structure within which the individual can feel valued.
“You cannot just invest in someone for six or 10 months. Rather, it’s better for employers to understand who they really need – and usually this is more than a pair of hands – and start to pay for value. If you have the right match for the job, the investment is made, and sustained,” he explains. Moreover, The Malta Chamber President addresses the misnomer that TCNs are “taking Maltese jobs” which, he says, is “completely wrong, since the Maltese decided not to take on certain jobs.”
Mr Vassallo Cesareo also recognises the pressures placed on Malta’s infrastructure, and “these are seriously compromising our quality of life, so we need to address this. We are seeing a major rethink of how our economy functions.” Indeed, The Malta Chamber is currently preparing a report on the impact of TCNs on Maltese businesses and the economy, within which several recommendations will be put forward. “We don’t want TCNs to come get training in Malta, and then leave to go to Ireland, the UK and Scotland. We want them to remain here, so the bottom line is, how can we add value to our workforce and, therefore, to the entire value chain?” he asks.
The CEO of Farsons Group, Norman Aquilina, corroborates the importance of TCNs in filling skills shortages over the last few years, during which “we have seen a growingly tight labour market.” Within this context, and in “response to this situation, taking on TCNs was, and continues to be, a compelling consideration. Their engagement has undoubtedly helped many businesses effectively respond in addressing their employment needs,” he says.
Echoing The Malta Chamber, Mr Aquilina says that “it is highly pertinent to note that this notion of TCNs taking on the jobs of locals is broadly incorrect, as, in most instances, they are filling employment roles that locals are disinterested in or where there is insufficient availability to satisfy demand.” In addition, “engaging TCNs is first and foremost about satisfying employment demand and the notion that taking on TCNs is tantamount to cheap labour is an unfair generalisation. And even if there are some sectors that may take a different approach, there certainly are
many businesses out there that respect the principle of equal pay for equal work.”
Recruitment, however, continues to be time-consuming and costly. “Furthermore, employing different nationalities brings along with it various challenges, such as issues on integration and work ethics along with differences in culture. Of significance is also communication, and how this may impinge on productivity levels and in dealing with team building efforts, with language barriers sometimes affecting the quality of communication, with all its consequences,” he continues.
Looking ahead to the next five years, he sees a continued need for individuals outside the EU to make Malta their home. “What may change over time is the narrowing of the skills gap, which can be mitigated with the right strategic attention, but then again, this will certainly need time to be effectively addressed. Going forward, our economic growth and overall prosperity is very much conditional on having the right labour and employment policies that deliver the necessary skills and capacity levels.” Therefore, “the importance of aligning the needed skills with our economic ambitions needs particular attention. All this requires more of a holistic focus from both a short- and long-term perspective,” he concludes.
“Going forward, our economic growth and overall prosperity is very much conditional on having the right labour and employment policies that deliver the necessary skills and capacity levels.”
Norman Aquilina, CEO, Farsons
In the meantime, Jonathan Shaw and David Borg – the CEO and Head of People, Talent & Development, respectively, for Retail Marketing Ltd, the owners of Wellbee’s Supermarket – also acknowledge the vital contribution played by TCNs within their business.
“Our supermarkets have a team of over 500 employees, consisting of 60 per cent Maltese and 40 per cent foreign nationals hailing from 34 different countries. In the past two years, our group has experienced steady growth since our merger and rebranding. However, we’ve faced challenges in finding Maltese workers in this sector. The increase of third-country nationals coming to Malta has provided us with a larger pool of available employees, which is a positive factor for us,” they assert.
Fundamental to their positive outlook is the recognition that “each employee, regardless of their nationality or background, brings unique skills and perspectives to the team. While we do not wish to generalise any profile or nationality, we are proud to have a service-oriented approach among our employees, including those from the Nepalese and Indian communities.” This has created a culturally rich working environment and the “work dynamics that arise from such a diverse mix of employees bring a healthy mix to our offices and supermarkets.”
The team has worked on the frontlines of the challenges facing TCN recruitment and settlement, and this informs their view of
the challenges being faced. There are, they also attest, “delays and bureaucracy related to permits; timing issues and gaps between employment, paperwork processing, and employee payments; challenges related to wages, accommodation and cost of living; requirements to get driving licences; and language proficiency standards,” which may prove to be stumbling blocks to long-term adaptation.
“Despite these challenges, there are solutions that we are aware of and strive to implement to mitigate the issues,” they say. However, they stress, “it’s important to remember that moving to a new country can be challenging for anyone, regardless of nationality. There’s a cultural adjustment, uncertainty, and often the longing for friends and family. These challenges can add additional pressure to the individual, making the personal challenge even more difficult. As an employer, we are committed to being aware of these challenges and offering support to our employees where possible.”
And, while it’s difficult to predict what may happen over the next five years, Mr Shaw and Mr Borg call attention to the need for Government agencies “to understand the needs of the country and the challenges faced by the workforce. It’s also worth considering other EU countries, as they are also competing for the same employees. The challenges we face in attracting a specific type of worker are being experienced by other EU countries as well,” they conclude.
“It’s important to remember that moving to a new country can be challenging for anyone, regardless of nationality.”
Jonathan Shaw and David Borg, Retail Marketing LtdPHOTO BY BERNARD POLIDANO PHOTO BY TONIO LOMBARDI
BUILDING A WINNING CULTURE IS CRITICAL FOR A MOBILE CARRIER TO THRIVE IN THE FIERCELY COMPETITIVE TELECOMMUNICATIONS INDUSTRY, and is not without its challenges. In addition, mobile carriers must also navigate a rapidly evolving landscape that places a premium on customer satisfaction. When disruptions occur, it’s no easy feat to handle the fallout.
Despite the challenges, Epic’s dedication to superior customer service remains a guiding light, as is evident in the latest findings released by Malta Communications Authority (MCA), which confirm Epic’s reputation as placing its customers first with its prompt and efficient customer response, even when problems arise.
Here, Epic’s Director of Care Alessandra Verri outlines five best practices Epic embodies.
At the heart of Epic’s customer care strategy is a firm belief in a customer-first mindset. This approach doesn’t just pay lip service to the idea of customer satisfaction. It’s a deep-rooted philosophy that guides the company’s daily operations. Epic understands that its customers are not just consumers of their services, but also the key to their success, leveraging data and analytics to identify and anticipate customer pain points, ensuring their services are not just reactive, but also proactive. This commitment to understanding and serving their customers is a big part of what sets Epic apart.
2. Building a strong team
Epic understands that a company is only as good as its people, investing heavily in its team, ensuring that they have the tools and training they need to excel. Regular team huddles, competitions and coaching sessions are part of the fabric of Epic’s culture, fostering a sense of unity and camaraderie. Epic also recognises the expertise of their agents who are in daily contact with customers, valuing their insights and feedback. This focus on personal growth and development has created a team that is truly the backbone of Epic.
3. Harnessing the power of data
In the digital age, data is king – a fact which Epic has capitalised on, investing in a customer relationship management system which connects customer data across different departments and touchpoints, offering a complete view of each customer. This allows the team to not only track key indicators of customer satisfaction but also to anticipate potential issues and proactively intervene. By placing a premium on data analysis, Epic ensures that their responses to customer needs are not just fast, but smart and tailored.
4. Emphasising clear communication
In the complex world of telecommunications, clear and efficient communication is crucial. Epic has made this a priority at all levels of operation, from internal team communication to customer interactions. This includes establishing clear KPIs to measure performance and identify areas for improvement. The result? A streamlined, efficient operation that benefits both the company and its customers.
5. Turning challenges into opportunities
Every company faces challenges, and Epic is no exception. Service disruptions, internal communication issues and other obstacles are all part of their journey. But Epic has a knack for turning these challenges into opportunities. When things go wrong, the carrier uses a triage approach to quickly address the immediate concerns, and it doesn’t stop there. A deep dive into the data follows, allowing the Epic Care team to understand what went wrong and how they can prevent it from happening in the future. As a result, they’re constantly refining their services and improving their customer care.
Alessandra is unequivocal about customers being at the core of everything Epic does, no matter the challenges faced. This, together with Epic’s mission to offer a great network at great value to all, is at the forefront of everything, driving the Epic team. And success lies in meeting the challenges she and her team face, to honour that promise daily.
Epic Communications Ltd is one of the largest telecommunication providers in Malta and Cyprus. It provides integrated mobile and fixed telephony, internet, televisionservice,andspecialisedICTBusinesssolutions, aswellasservicesforthemaritimeindustry.
The company has invested €40 million to build the strongest mobile network with wider coverage, superfast speeds and technology which is generations ahead; ensuring a quantum leap into Malta’s digital future to help businesses and consumers unlock their full potential. This is further complemented with the launch of Malta’s Fastest Fibre network with download speeds reaching 2000Mbps.
EpicisamemberofadynamicEuropeantelecoms’family, which comprises telecom providers operating in France, Italy,Poland,Switzerland,Ireland,Monaco,andCyprus.
“Everyone does entrepreneurship differently,” says WFDM Founder and Managing Director Mantvydas Narusevicius. Robert Fenech picks his brains to discover how one of Malta’s fastest-growing companies developed into a multi-faceted business.
AGED JUST 32, MANTVYDAS NARUSEVICIUS HEADS A GROUP OF COMPANIES ENGAGED IN A DIZZYING ARRAY OF INDUSTRIES. Starting out in logistics and recruitment, WFDM’s rapid growth, and the founder’s indomitable entrepreneurial spirit, have allowed him to expand and set up partnerships embedded in Malta’s fast-growing economy.
Having worked in hospitality and construction as a teen, he later graduated in economics, finance and accounting, bringing to the table a wealth of knowledge about how business works. “I read a lot, and one thing I learned is that diversification is essential. That way, if one business goes south, you always have back-up to ensure you never get caught without cash flow.”
With the importance of diversification firmly in mind, Mr Narusevicius explains that many of WFDM’s lines of business came about from an evaluation of the group’s available resources and an assessment of how to use them most effectively.
“The cars and motorbikes we operate naturally require maintenance and repair from time to time,” he says, “and using third-party mechanics proved expensive and inefficient. I used to spend many long days tinkering in the garage myself, and eventually, WFDM Auto Moto Works was born.” Similarly, a drive to capitalise on its fleet of motorbikes led to the launch of WFDM Rentals, engaged in helping tourists explore the islands on two wheels.
So far, so linear, with auto repair and rental being textbook examples of vertical integration for a logistics firm. But as we dig a bit deeper into the WFDM constellation, other patterns emerge.
It was during a trip to India that a highly satisfying visit to a dhaba led to another spark. “A dhaba is a roadside kiosk serving up hot meals to truckers, drivers and other motorists,” explains Mr Narusevicius. With local experience as the former co-owner of Foam & Fork and Balance Bowl, he brought the idea with him back to Malta and set out to recreate the Indian staple in a very different environment.
He recounts: “We employed a driver who had previously worked as a chef, so I spoke to him and asked him to recreate his favourite dish from his mother’s
“I read a lot, and one thing I learned is that diversification is essential. That way, if one business goes south, you always have back-up to ensure you never get caught without cash flow.”
cooking.” The resulting butter chicken proved delicious, so a food truck was bought and Dhaba Malta was born. “Most of the clientele are foreign nationals from the Indian sub-continent,” says Mr Narusevicius, although locals and Europeans also love it, including one very important client: “My daughter’s obsessed with it!” he laughs.
It was another trip abroad that paved the way for Doup, an NFC-powered business card that promises to bring smart technology to a space that had not seen innovation in decades.
“We just could not find a business card solution that fit our needs,” says Mr Narusevicius. “People change, as do our offices, and what that means is that every time, you need to get a stack of expensive paper and throw it away.”
A better solution was finally discovered at the EuroLeague finals in Belgrade, where Mr Narusevicius was watching
his favourite team compete for the top prize in European basketball. While there he chanced upon an old friend, who mentioned that he was the founder of a smart business card. “He was pitching me as a client, but I was so impressed that I quickly changed hats from client to investor – and missed the rest of the game!”
After two rounds of investment, WFDM now has a controlling stake in Doup, which is scaling rapidly. “What Doup is giving, to us and other clients, is a cost-effective solution. There is no need to change the card when you change role, address or company – you just update what’s inside.”
A common thread running through the set-up of many of WFDM’s businesses is an acute awareness of market gaps and a willingness to step into the breach once it is deemed both useful and profitable. For example, when the company was looking for a PR agency to work with, it only found closed
doors – “everyone was already engaged by our competitors,” Mr Narusevicius explains. This led to the establishment of PR Effect, which will shortly launch “to help businesses convey their stories and connect with audiences in impactful ways.”
Meanwhile, he is also involved in a company developing innovative software solutions, primarily for financial services. MS Smart Software Solutions, he says, automises, digitises and streamlines business processes to make them more efficient. “The team is driven to shake up traditional workflows and offer cutting-edge technology solutions that help businesses operate smoothly – and it is poised to make a significant impact in the tech industry in Malta and beyond.”
Listening to Mr Narusevicius speak, one gets the impression that opportunity springs forth with every step, and he admits that business is a passion to which he dedicates countless hours (and his phone, a tool glued to his hand). However, important as drive may be, the secret sauce, in his telling, is a good dose of humanity. In fact, he puts a lot of his success down to his particular talent for reading people. “One thing I do – and this is crucial – I would say it is the most important thing I ever learned – is that I really listen to people and understand what they are really saying,” he says. “After all, it is your people who will make you successful.”
No discussion on entrepreneurship is complete without talk of failure, and Mr Narusevicius laughs when it is brought up. He grabs the webcam and points it to a graphic that sits above his desk, showing a series of Windows error messages. “I keep that there because it is a representation of me,” he says. “Sometimes you just keep getting error after error – and sometimes you just fail and fail.”
He believes that the framing of failure in all-or-nothing terms is “negative and unhelpful,” and says that he prefers to see every failure as a minor success. “If you fail, it’s because you’re doing something. That’s already a positive. You got up, prepared for something, and failed. So what? There’s always another day.”
In line with this perspective, he shares some principles he keeps in mind when confronted by failure. “It helps to treat everything as R&D,” he says. “It puts you in the right mind frame to analyse what went wrong and extract valuable information that can be used later on.” He also subscribes to the “fail fast” mindset beloved by Silicon Valley and start-ups: “The sooner you know something does not work, the more time you have to change and adapt. Whether an initiative works or not, there is always something to learn.”
Mr Narusevicius is keen to impress that failing fast does not mean rushing ahead with every half-baked idea, relating the story of his first two attempted business ventures as a teenager, neither of which still stands today. Likewise, experience has taught him that business takes time, and pushing ahead with a plan whose time has not yet come is a recipe for disappointment. “It’s easy to get excited and become lost in an idea and its potential,” he says. “It has taken a while, but I have learned to trust my gut now, and to be patient.”
“If you fail, it’s because you’re doing something. That’s already a positive. You got up, prepared for something, and failed. So what? There’s always another day.”
Malta’s restaurant scene has undergone a dramatic transformation in recent years with the arrival of Michelin raising the bar for fine-dining establishments across the island. But behind the scenes, the industry has been grappling with a new set of challenges – from the unforeseen difficulties of lockdown to staffing shortages, rising produce costs, and more. Dean Muscat speaks with six of the island’s leading Chef Patrons to uncover their insights, challenges and hopes for fine dining in Malta.
“We’ve always had great food in Malta, but over the last few years the culinary scene has improved drastically thanks to the arrival of Michelin on the island. With more diners now looking for good-quality food made with quality ingredients, we’re moving in the right direction. However, while our finedining scene has come a long way, we still have a way to go to catch up with top culinary destinations like London and
Risette
Paris. While I hope for a future where local diners are more open to experimental menus and cooking processes, such as a carte blanche dining experience, the reality is that many still gravitate towards traditional options like pasta and beef. It presents a challenge for us as chefs to strike a balance between offering new and exciting dining experiences while still catering to the tastes of our customers.
“The recent trend of no-shows is another challenge that we’re facing. It’s simply disrespectful. As a small restaurant, a single no-show can have a significant impact on our business. Despite these challenges, I try to remain optimistic about the future. Personally, I will continue to work towards my dream of Rebekah’s becoming the first Michelin-star restaurant in the north of Malta. But it’s not an easy job and requires a lot of hard work and sacrifice. I worry that the younger generation of chefs may be put off by these tough working conditions and lack of respect. That’s why we need to continue to inspire younger chefs to enter the industry to keep our local culinary scene alive and evolving.”
“My love for cooking is rooted in the most basic method of food preparation: cooking over an open flame. This idea inspired the concept behind my restaurant, Azar, which offers a different take on modern dining in Malta. We specialise in open-fire cooking, cold smoking and hot smoking, and draw from a mix of international influences. My passion for creating new dishes is inspired by the books I read but also the places I travel to. Whenever I travel, I love to meet people, learn about their unique food cultures, try different street food, and incorporate all these elements into my cooking.
“The introduction of Michelin to Malta has been a healthy challenge for all of us as it pushes us to be better. However, I believe that more needs to be done to support local producers to ensure that the quality and consistency of the ingredients we use in our restaurants are maintained at the highest level possible. Staffing also continues to be a problem. And while it’s important to attract talent from abroad to tackle the issue, it’s equally essential to ensure that foreign nationals possess a solid level of proficiency in the English language. Perhaps an English proficiency test could be incorporated into the visa application process to ensure that our service workers can provide a more enjoyable dining experience for visitors and locals alike.
“Despite the challenges posed by the pandemic and rising costs, I remain optimistic that the worst is behind us and that we’re starting to see an upward trend. As more tourists and diners return, I believe that the summer season will bring a further boost to the industry.”
Risette
Tartarun
Noni
“At Noni, our cooking style is primarily influenced by our Maltese and Mediterranean cultural traditions, with a touch of modern refinement. I like to take inspiration from the memories of my mother and grandmother’s home-cooked meals and give them a playful twist. Our aim is to make every guest feel welcome, as if they’ve just walked into a traditional Maltese home. When coming up with new dishes, I find inspiration in everything – nature, ingredients, seasons, memories, and even my travels.
Of course, running a restaurant is never easy, and we currently face many pressing challenges like staff shortages, escalating costs and high property rentals. But with a positive attitude and a willingness to find solutions, I believe you can overcome most obstacles. At the end of the day, being a
chef and restaurateur is all about passion, and without that drive to create something special for our customers, there would be no reason to open a restaurant at all.
Passion is crucial to succeeding in this industry. There will always be challenges, but if you fundamentally don’t have a love for food and how dining can impact people, there’s really no point in opening a restaurant at all. It’s also important to remain responsive to the current market and be proactive in addressing challenges. I remain optimistic about the future of the local culinary scene. By taking care of our customers and providing them with unique dining experiences, we can ensure an exciting future for restaurants and diners alike.”
Tartarun
Noni
Risette
“Our concept at The Golden Fork is to express Maltese traditional cooking in a contemporary and refined way. I use complex transformation techniques to create apparently simple dishes that are immediately recognisable but new at the same time. Our commitment to sustainability extends beyond our menu, as we promote local ingredients and dishes. The modern-day restaurant has evolved to become more than just a place to eat. It’s an immersive experience that encompasses not only the food but also the impact it has on the environment and community.
As many people know, restaurants the world over are facing extreme challenges, including news that legendary restaurant Noma is to close its doors. I believe this is worrying for the fine-dining scene. But we need to keep focused to manage our businesses efficiently to survive. In Malta, we face the additional challenge of fostering and retaining top talent amid fierce competition from other countries. At The Golden Fork, we strive to create a fun and attractive working environment, offering competitive salaries and guaranteed time off. I believe in investing in our youth and providing them with opportunities to gain valuable experiences locally.
In my opinion, dining is like high fashion for clothing or F1 racing for cars. It’s something that’s always going to be around. People don’t just go to restaurants to fill their stomachs; they go for the whole experience. That’s why it’s crucial for us to stay open-minded and find solutions even in tough times. It’s what sets fine-dining establishments apart, being able to differentiate ourselves and give our guests a unique experience they won’t forget.”
“I believe that a great restaurant is one that has a unique identity which sets it apart in the culinary world. At Briju, we strive to create dishes that offer diners a homely satisfaction and a welcoming experience that is quintessentially Briju. Inspiration for my cooking comes from various sources, be it the international culinary scene, new cookbooks, or even recipes I love to experiment with at home. But I also believe that creating a restaurant’s identity is a natural process that cannot be forced. It is important to recognise that every member of the kitchen and service team brings something unique to the table, and the restaurant needs to reflect that. I’m excited to see how Briju will continue to evolve in the coming years.
“Over the last few years, the local restaurant industry has had its share of ups and downs, with challenges such as rising costs, inflation and a lack of quality local produce due to the struggles farmers and producers are facing. However, as restaurant owners, I ultimately believe that it is our responsibility to find creative ways to make our own business models work. Government was helpful during the COVID-19 period, but we cannot rely on outside help indefinitely. It is my hope that local restaurants will continue to push forward and innovate, potentially attracting better quality talent from abroad, which will help solve our staff shortage problems while bringing new approaches to the industry.”
“Throughout my career, I’ve been fortunate to learn from some of the most talented chefs in Malta, including Victor Borg and Joe Vella. These chefs taught me the art of culinary creation, but also the hard realities of operating a fine-dining restaurant. The sacrifices and time required to establish my own restaurant, Scala, have taken a toll on my personal life, especially when important family occasions coincide with restaurant obligations.
While I believe Michelin has had a positive impact on the local culinary scene, achieving a star is only the beginning of the challenge. It’s essential to maintain consistency in delivering an exceptional dining experience that encompasses food, service and ambience to retain a Michelin status. Furthermore, I believe that Malta might have already reached its limit of Michelin-starred restaurants. This may come across as a controversial view, but I question whether fine dining is genuinely profitable in Malta. With the small size of the island, sustaining so many fine-dining restaurants may be difficult. And as a chef who aspires to offer diners a fine-dining experience, I am curious to see whether there is sufficient demand to keep such restaurants alive.
Knowing the many challenges and struggles of running a restaurant, I do worry about the future of the industry. I hope that institutions like ITS concentrate more on the local scene’s reality and provide students with the necessary tools and passion to enter the industry. Because running a restaurant is more than just a job, it’s a vocation.”
Julian Micallef Tagliaferro discusses the Malta Communications Authority’s role in ensuring that the Maltese jurisdiction remains at the forefront of the digital revolution and meets the ambitious targets of the EU’s Digital Decade 2030 strategy.
WITH ADVANCES INCREASINGLY UNDERPINNING THE WAY COMMUNICATION AND INFORMATION TECHNOLOGY EVOLVE, it would hardly be an overstatement to say that in this field, there is no limit that cannot be overcome.
Most continue to anticipate a wider roll-out of technology such as 5G and the so-called Internet of Things (IoT). Artificial intelligence is on everyone’s lips. And online marketplaces are also becoming more popular, without relying on the larger platforms. With these and other technologies, the expected impact on our daily lives and on the way we conduct business will undoubtedly continue to grow.
The mention of regulation in the same breath as the discussion on such major advancements may cause some perplexity. And yet, with new thresholds being reached with ever quicker regularity, it becomes progressively clear that some element of control is necessary. Concerns over cybersecurity, data privacy and consumer protection are also on the increase.
The Malta Communications Authority was set up more than 20 years ago, in the context of a transition that the country was experiencing as it moved on from the big monopolies of the time into a liberalised market, such as in the case of telephony. And the results that were achieved then, with a more competitive market and a level-playing field for operators, continue to be reaped today while being safeguarded and improved upon.
Now, with the emergence of new technologies, the role of the regulator becomes more critical. Innovators and first movers, while attaining the necessary capacity and technological edge, will also be looking at the positions adopted by various countries and economic blocs to better attune themselves to the rules of the game, so to speak. And a regulating authority needs to be proactive, ensuring that the benefits of new technology are not squandered but further encouraged, while ensuring that the necessary safeguards are in place.
The Malta Communications Authority is at the forefront of such developments locally, thanks to a highly specialised and dedicated multi-disciplinary workforce, as well as its ongoing participation in international bodies and fora of the European Union. The sector, particularly in relation to the telecommunications infrastructure of the country, remains important to attract and maintain economic investment and promote its growth. Competitiveness surveys indicate that it is a critical factor foreign direct investors take into account when considering doing business in Malta.
And to further attest to the Authority’s commitment to be at the heart of the discussions and negotiations taking place at the international level on this sector, its Chief Executive Officer, Jesmond Bugeja, also served as the Vice-Chair of the Body of European Regulators in Electronic Communications (BEREC), having been selected by EU counterparts.
BEREC is an EU organisation composed of the heads or nominated high-level representatives of the national regulatory authorities of the EU member states. One of its main aims is to assist the European Commission and the national regulatory authorities in the implementation of the EU regulatory framework concerning electronic communications.
Currently, the Malta Communications Authority is involved in almost 50 projects and activities in BEREC alone. These initiatives cover a wide spectrum of areas, from new legislative proposals such as the Gigabit Recommendation covering gigabit connectivity, to the publication of guidelines for regulated industries, besides the compilation of technical reports and market data collection and analysis.
The Malta Communications Authority considers that some sectors present a greater challenge than others, also in terms of viability, as new technology continues to take over. In this context, the Authority is working closely with industry operators, public authorities and other stakeholders to ensure that vital services remain sustainable.
The supervision of digital services forms part of the Authority’s strategic objectives for the period 2023-25. Forming part of this strategy, the Digital Services Act is a recently adopted piece of EU legislation which will become applicable as from 2024. It concerns providers of digital services and regulates online platforms such as social media networks, online marketplaces and search engines,
“Malta has consistently fared amongst the top EU countries in terms of digital progress.”
Jesmond Bugeja, CEO, Malta Communications Authority
BEREC Plenary MeetingPHOTO BY DANIEL KAPLAVKA
as well as other digital services, including cloud computing services and online advertising.
Indeed, the necessary arrangements for its implementation need to be put in place by 17th February 2024, with the Malta Communications Authority having been earmarked to serve as the Digital Services Coordinator for Malta. Preparations are now moving in earnest across the European bloc for the national authorities to be in a position to enforce these rules by the deadline.
The Authority has cultivated a level of experience in its enforcement role in relation to the eCommerce Directive introduced some decades back. While the regulatory landscape for digital services in the EU continues to develop, the Authority is also responsible for areas such as trust services, geo-blocking, cross-border portability of online content, and the accessibility of websites. On the latter aspect, the Authority has worked extensively together with several other partners to ensure that the websites of public entities are accessible.
Collaboration is key. And in this respect, the MCA has recently signed separate Memoranda of Understanding with the leading business representative bodies in Malta. The aims here are two-fold: supporting growth in digital
services and promoting regulatory compliance by the Maltese business community.
With more emerging technology potentially having a large impact on our lives and business practices, as well as on how we communicate, the future presents several opportunities and a number of challenges – some more easily evident than others. By being well-informed about these developments and actively involved in the negotiations even at an international level, as well as maintaining an open channel of communication between policy makers, regulators and stakeholders, the MCA seeks to ensure that its action allows for more technological advances to come into play while minimising negative impacts on end users.
The Authority’s CEO underlines the importance of being proactive and forward-thinking to capitalise on the prospects ahead. Mr Bugeja states, “Malta has consistently fared amongst the top EU countries in terms of digital progress.” And the Malta Communications Authority aims to continue to actively play its part in ensuring that the Maltese jurisdiction remains at the forefront of the digital revolution and meets the ambitious targets of the EU’s Digital Decade 2030 strategy, with a particular emphasis on connectivity.
“The necessary arrangements for the implementation of the Digital Services Act need to be put in place by 17th February 2024.”European Commission press conference on the transformation of the connectivity sector in the EU
Over the past five years, the Family Business Office has endeavoured to assist small and medium enterprises to survive and thrive as they get handed down from generation to generation. And, as Dr Joseph Gerada, the FBO Regulator, tells Rebecca Anastasi, this commitment will persist, as the entity continues to engage with the local business community.
“FAMILY BUSINESSES ARE THE HEART OF THE MALTESE ECONOMY,” insists Dr Joseph Gerada, the Regulator at the helm of the Family Business Office (FBO), who explains that these firms comprise up to 80 per cent of all companies on the island. Yet, he continues, they are often hampered by specific structural, financial – and emotional – challenges which only come when working with blood relations.
“These companies are very specific, in the sense that the intrinsic values through which they operate can work to their advantage or disadvantage. A business owner who works of their own accord –and does not run a family business – is able to make decisions on the basis of what is best for the company; they are able to ignore feelings or personal issues. However, when it comes to dealing with family businesses, the specific relationships within the unit can make or break it,” he explains.
For instance, he continues, “imagine my father is the family business owner; and, as his son, I respect that. However, if he expects to be the only decision maker, I will not propose good ideas I may have –and which might be more beneficial for the enterprise – if I suspect he might not agree with them,” Dr Gerada explains. This misplaced respect can often result in younger generations wasting their potential, constrained within the limits set by the founders or the parents, which prevents the business from “getting to the next level”.
Such control can also be seen in businesses which, on the surface, seem to be navigating succession well. The founder may, for instance, Dr Gerada says, entertain the chairman of the company board in
“We offer the Family Business Support Scheme… to assist companies planning and preparing a succession plan.”
order to continue asserting some sort of surreptitious say over the operations of the business. “There is also an issue of culture here in Malta, which insists on a glorified respect for the elder in the family, and this may inhibit the next generation from really expanding the business and reworking the governance structures to allow non-family members and professionals in, for the economic benefit of the firm,” he says.
Indeed, involving “outsiders” is key to surviving, Dr Gerada says. “You must look at the players in the business; see who is functioning in their positions or not – without taking into consideration any emotional or familial links – and deal with any issues which are identified, without worrying if people’s feelings are going to be hurt. I travel and meet foreign family businesses – some of which have grown to become multi-million euro companies – but in Malta we seem hesitant to grow, and to involve others in managerial or directorship positions.”
Doing so, Dr Gerada asserts, would allow for the family, and founders, to take more of a strategic role, rather than simply acting like an employee on the floor. “Once you establish the business, you have to take a step back, to see how to invest time and money, as well as how to diversify the portfolio. Family
business owners should not be limiting themselves to doing what they can get someone on a salary to do,” he insists.
He expresses surprise that “family businesses will invest in many things – such as machinery and new premises – but they will not invest in crucial human resources, since they think it’s not necessary. They think, for instance: why should I pay for an external advisor? The result is they don’t get the tools they need, and the guidance to work more efficiently. It’s time for family businesses to invest in people, to grow their networks and to expand their businesses.”
The local and international world of trade has changed substantially over the past decades and, therefore, family businesses who may be used to working in a certain way may have fallen out of lockstep with certain shifts. This makes it imperative that they “explore exporting their product, meet new customers and clients – and not spend time on the factory floor! Developing a company’s human resources is the best investment, particularly if there are no family members who want to take over the running of the company. So – and this I emphasise to the family business owners I meet – they need to focus on the future, rather than on the day-to-day operations of the enterprise.”
Bringing the next generation into the fold allows for a successful succession, and puts it on a steady road of survival, the Regulator explains, adding that the FBO has been attempting to safeguard the future of such companies. “I’ve been in my role for four years, and over that time, we’ve insisted on a key mission: to ensure family businesses survive. To do so, firstly, we protect them. Through the Family Business Act, we specify that such companies must have two family members who are directly involved in the ownership and decision-making processes of that business – this gives a degree of autonomy to the family itself.”
Indeed, the FBO, through the Act, ensures that “all shareholders have voting rights. We have encountered situations in which the shareholding has already been passed on to the next generation but, since there are classes of shares, the voting rights are reserved for the parents or founders, while the children have no say in how the company is run. This is not something we condone or promote, so, through the legislation, we ensure they cannot register with our office, and they cannot take advantage of our incentives.”
Indeed, Dr Gerada emphasises the importance of adequate planning, insisting that, by strategizing more effectively, the next generations would feel inspired to invest their futures in the business. “What happens, very often, is, when there are children who have a lot of potential, who are academically well-equipped, they step away from the family company since they fear they will be constrained. So, they end up working for someone else, somewhere where they, sadly, feel they belong more,” he attests.
“It’s time for family businesses to invest in people, to grow their networks and to expand their businesses.”
For, ultimately, for a business to survive, the structures of the company must be built robustly, and fairly. “We aim to ensure that these companies make the necessary changes which will ensure their survival and put their business on the right track.” To do so, the Office offers a number of incentives to those firms that are determined to do their utmost to solidify and cement their legacies.
“We offer the Family Business Support Scheme, administered by ourselves and Malta Enterprise, which also finances it. This is to assist companies planning and preparing a succession plan. We believe that for these transitions, the involvement of external professionals you can trust is needed, so we provide up to 50 per cent aid intensity against the invoices of mediators, auditors, lawyers, and so on – a benefit which can be used over three years and is capped at €15,000. This aid helps firms navigate the necessary changes.”
The FBO is also in discussions with the Mediation Centre to equip and train specialists in family business mediation and arbitration. “One aspect we realised after launching these schemes is that we don’t have enough expertise in this area, also because there is a general suspicion on behalf of family
businesses to get a mediator or arbitrator involved, as a result of a fear that there will be some sort of connection to a particular stakeholder. However, we need to be practical, and this is why we’re also working towards expanding the base of expertise.”
Over the next few months, the FBO will continue to drive home this point, as well as to expand its services to help more companies navigate tricky terrain. “We will be focusing on these mediation services, so family businesses can tap into the incentive; we are also going to work on outreach in Gozo, since there are many companies there that need our support, and we will be going physically to speak to them directly,” Dr Gerada says.
Moreover, Malta, as a member of Transeo, the family business transfer platform, will also be hosting its international summit this October. “One of the aims will be to discuss family business transfers, to explore how we can better help these enterprises, to ensure their continuity and their growth not only as ‘family businesses’, but as thriving businesses able to compete on the local and international markets,” Dr Gerada explains.
BY INIGO TAYLOR
ALAN TURING, WHO IS ATTRIBUTED TO HAVING INVENTED THE FIRST COMPUTING MACHINE, famously predicted that one day, humanity will reach a singularity point whereby it will be impossible to tell if one is communicating with a person or a machine. What appeared to be elusive for many decades, many are arguing is happening right now. We have reached that point, and the future is uncharted.
Artificial Intelligence has been with us for several years, but it is only recently that it has taken the world by storm. Freely accessible software such as Midjourney and ChatGPT, which manage tasks that were virtually impossible for a machine to successfully carry out until recently, have started to lift the curtain on the immense possibilities and remarkable power of AI.
Innovation has many faces. Thousands of years ago, our forefathers used tools that in their era, stood as a paragon of innovation, to build temples. Today, we develop complex algorithms and empower machines to learn to solve problems. With new tools and technology, it is only natural to be faced with a level of uncertainty and fear. But as the adage goes, with great power comes great responsibility, and the right person to expand on the subject is Gavril Flores, Chief Officer at the Malta Digital Innovation Authority (MDIA), the entity responsible for the regulation and promotion of innovation technology.
“We are in the business of balancing the desired effects or ‘benefits’ of innovative technology against its undesired effects or ‘risks’, and we do this by directing and facilitating the secure and optimal uptake of digital innovation through supervision, recognition and promotion. For example, in the field of AI, we are working on an EU-wide regulatory framework that protects users without stifling innovation,” says Mr Flores, who has a long career working in a number of the country’s regulatory structures, including the Medicines Authority and the MCCAA.
“We understand that new and powerful technologies such as AI can bring with them a host of misunderstandings, which are often fuelled by fiction rather than fact.”
AI has been at the centre of a pan-European debate, with MDIA participating on Malta’s behalf in the drafting of ground-breaking legislation to regulate the exciting new technology on a European level. The AI Act, which is expected to come into force by early 2024, is intended to provide clarity, and do away with misconceptions.
“We understand that new and powerful technologies such as AI can bring with them a host of misunderstandings, which are often fuelled by fiction rather than fact. It is our job to ensure that a solid framework is in place to explain clearly what the technology will be able to do and what it will be limited from doing, striking the right balance between risk and benefit,” Mr Flores explains.
All systems bring with them a level of risk, which can be mitigated through solid regulation, and the AI Act aims at identifying the areas that AI will be allowed to be used in, while clearly identifying the absolute no-go areas.
“For example, we are aware that in Asia, AI is used for social scoring. In Europe this is unacceptable and such an application of the technology will be prohibited. We are interested in identifying areas where AI can enhance the human experience, making us more productive and competitive in an ethical and transparent manner,” he continues. In fact, the AI Act is expected to provide a concrete structure against which the technology will operate in the European Union.
The Act will oblige operators to identify and recognise risk, even with the participation of independent conformity assessment bodies to ensure that it is thoroughly mitigated. Human oversight will be central in this process, whereby AI will need to be given strict and well-defined
protocols for its operation. In any case, the system will have clear parameters that it will not be able to go against, and there will be the possibility of human intervention at any given moment.
Users of AI systems that generate or manipulate image, audio or video content that appreciably resembles existing persons, objects, places or other entities or events and would falsely appear to a person to be authentic or truthful (‘deep fake’), must disclose that the content has been artificially generated or manipulated.
For the first time, the Act will also introduce the possibility for redress on the subject, which currently may not always be easily available. Citizens will be able to voice their concerns to especially set up authorities that will investigate each case on its own merits. The Act sees to the setting up of national supervisory authorities – a step that Malta is already well ahead of its European counterparts in, through the MDIA. A central AI office in Brussels will, in turn, ensure the required coordination and advice at European level.
“Furthermore, we truly believe in the opportunities that this new frontier is bringing with it as a human-centric tool. That is why the Act will see to the setting up of national AI sandboxes for safe innovation, that will encourage the development of AI, or its application within a sound environment. We already established an active technology sandbox, and our focus will be to extend it to cover the regulatory aspect once the framework is in place. We want to draw all the opportunities from AI, that will ultimately result in better distribution of wealth and improved skills for the economy based on a just transition for the benefit of all stakeholders,” Mr Flores concludes.
“We truly believe in the opportunities that this new frontier is bringing with it as a human-centric tool.”
OVER THE LAST YEARS, SUSTAINABILITY HAS TAKEN A SEEMINGLY UNSHAKEABLE POSITION IN BUSINESS DISCOURSE. Whether it is the quest for Net Zero emissions, the EU’s Fit for 55 package, environment, social and governance reporting criteria (ESG) – sustainability writ large seems to be a perennial topic of discussion in boardrooms, conferences and seminars across Malta and beyond.
For all the lip service paid to the concept however, real action has been slow. Targets are made and then ignored without sanction, while incentives to effect change for the better are often seemingly followed by initiatives that nullify their positive impact.
The reasons for the sluggish progress towards a greener economy are many. But one solution, says Isaac Gatt, does not require legislation, but simply greater awareness among businesses about the true impact of their actions.
After obtaining his academic education at the University of Malta and specialising in the topic of sustainable engineering, Mr Gatt identified a number of shortcomings in the local sustainability scene.
“I am motivated to contribute to tackling the global problem at hand, whilst increasing awareness on the implementation of true sustainable concepts,” he says.
“There is a clear market gap in the sustainability sphere with regards to technical assessments and analysis, and a large skills gap exists here. This is what Green Circle Engineering is attempting to target, as now more than ever, our world requires experts in life cycle assessments (LCA) to assist in the transition to a more sustainable model.”
He believes there is significant potential for environmental improvements when it comes to many local products and services, as well as the local building stock.
Mr Gatt’s area of specialisation revolves around the utilisation of sustainable engineering tools, primarily focusing on Life Cycle Assessments (LCA). He also holds credentials as an Energy Performance of Buildings (EPB) Assessor, an Energy Auditor and an LEED® Green Associate. He is also qualified in concepts of Environmental, Social and Corporate Governance (ESG).
Combining his entrepreneurial background with his academic learnings, he decided to establish a firm focus on providing sustainable engineering solutions to a wide range of industries. This led to the launch of Green Circle Engineering, a young, upcoming engineering firm providing technical guidance and sustainable solutions to a diverse range of clients.
“I am motivated to contribute to tackling the global problem at hand, whilst increasing awareness on the implementation of true sustainable concepts.”PHOTO BY DIEGO GENNAROUNSPLASH
“We strongly believe that you can’t improve what you don’t measure,” explains Mr Gatt. “Through the utilisation of a number of engineering tools, and the experience we possess in a wide range of industrial sectors, we can help businesses formulate the right strategy to do more with less.”
Green Circle Engineering does this by measuring what truly matters to develop true performance indicators – with the aim of empowering businesses with the knowledge they need to take data-driven decisions.
The firm’s service offering ranges from several varied environmental and energy audits and assessments, eco-design of products and processes, and consultation on green building developments.
“What we really bring to the table, in terms of innovation,” Mr Gatt continues, “is our core service revolving around the offering of detailed Life Cycle Assessments (LCA).”
This is an established science-based framework for assessing the environmental impacts of products, processes or services throughout their entire life cycle. LCAs are governed by the ISO 14040 and ISO 14044 family of standards, ensuring data transparency and reliability.
During an LCA, the assessor starts by analysing complex life cycles in a systematic approach, including by measuring the environmental impact of the product or service across all the life cycle stages. Then, the assessor identifies the hotspots in every link of the supply chain, from the extraction of raw materials to manufacturing, distribution, use, and end of life.
After assessing the entire life cycle, a business will know the environmental performance of its product or service, and the drivers for this impact. This insight would allow it to be able to identify which materials and emissions put the largest burden on the environment from a holistic life cycle perspective. Armed with this
information, the company can seek change in the respective area flagged as high impact.
“There are many benefits to commissioning an LCA, as the results obtained from such a study can help you improve your product’s sustainability efforts companywide,” says Mr Gatt. “For example, product designers can explore how their design choices affect the life cycle sustainability of the products, the marketing department can get factual data for sustainability communications and the purchasing department can learn which suppliers offer the most sustainable products.”
One industry ripe for change when it comes to environmental impact is undoubtedly construction. Buildings are responsible for 40 per cent of all energy consumption within the EU, which equates to 36 per cent of all greenhouse gas emissions (GHG) produced in the bloc. Moreover by 2030, all new buildings must operate at Net Zero if Europe hopes to meet its climate targets.
The message is clear: if the change won’t come from the bottom, it will have to be imposed from the top.
“Construction professionals need to take responsibility for the environmental impact of their projects and portfolios, and the implementation of LCAs directly supports the efforts of green building professionals to design and construct sustainable buildings.”
Mr Gatt points out that green building design is a fastgrowing field of research: “It is about using sustainable materials, designing buildings to be energy-efficient and incorporating renewable energy sources. This includes the use of materials, the installation of green roofs and living walls, and the development of smart building technologies that optimise energy use.”
Sustainability, of course, goes beyond energy. Water issues are particularly important in Malta, which has
“What we really bring to the table, in terms of innovation, is our core service revolving around the offering of detailed Life Cycle Assessments.”PHOTO BY INIGO TAYLOR
limited reserves of fresh water and is becoming drier by the year due to climate change. The remarkable population growth seen over the last decade has also placed greater stress on this precious resource.
This is why, Mr Gatt says, “engineers are working on developing new technologies to conserve water, such as lowflow showerheads and toilets, as well as new ways to capture and store rainwater.”
Coming back to Green Circle Engineering, he invites stakeholders in businesses of all kinds that want to become more sustainable, but may not know how to do so, to reach out.
“Green Circle Engineering is here to support such businesses and stakeholders to enable the transition towards a circular and sustainable future by utilising data and engineering tools,” Mr Gatt concludes.
Do you want to utilise the LCA methodology to achieve your environmental business targets, or are interested to see how such a tool can benefit your company? Learn more about Green Circle Engineering’s solutions at www.greencircle.engineering, or reach out on info@greencircle.engineering to discuss how it can help you become more sustainable.
Farsons, an enduring presence in Malta for nearly a century, has transcended the label of a mere local company to become an integral part of the nation’s identity. Dean Muscat sits down with Chairman Louis Farrugia to discover the captivating story of Farsons’ familial roots, its remarkable evolution, and the company’s relentless pursuit of quality.
AN AGE-OLD ADAGE HAS CONTINUED TO RING TRUE IN THE COMPETITIVE WORLD OF BUSINESS: EXCELLENCE, FAR FROM BEING OPTIONAL, IS AN ABSOLUTE NECESSITY. This principle has served as something of a guiding light for Farsons, charting their path to success right from the outset, when in 1928, the visionary Lewis V. Farrugia and his family embarked on a bold venture – establishing Malta’s first local brewery. At that time, with the British Armed Forces constituting the primary beer audience on the island, the Farrugias understood that quality would be the decisive factor in their battle to compete with well-established British beer imports that held sway over the market.
Straight out of the gate, Farsons launched its own Pale Ale, an exceptional brew that featured an arresting watercolour of Neptune on its label. It wasn’t long before the beer earned the endearing nickname ‘il-birratal-ġgant’. And a giant it was. It took the market by storm, captivating the taste buds of Maltese and British beer enthusiasts alike. Its rapid success even caught the attention of the H.G. Simonds brewery in Reading, which couldn’t resist the allure of a local brewery in British-controlled Malta. Just one year later, the two brewing
“My father, Lewis V. Farrugia, was a talented architect who played a pivotal role in the family business, designing the Farsons brewery, which is widely recognised as a gem of Art Deco architecture in Malta.”
powerhouses joined forces, giving rise to Simonds Farsons Ltd. The rest, as they say, is history, and a significant chapter of that history has been shaped by the leadership of Chairman Louis Farrugia, who has remained at the helm of the company for an impressive span of 45 years.
“My father, Lewis V. Farrugia, was a talented architect who played a pivotal role in the family business, designing the Farsons brewery, which is widely recognised as a gem of Art Deco architecture in Malta. Sadly, my father passed when I was just five years old, so I never had the opportunity to get to know him. Nevertheless, his achievements and contributions to Farsons were always embedded in my mind,” recounts Mr Farrugia.
After pursuing his education in the United Kingdom and becoming a chartered accountant, a young Louis Farrugia embarked on a career that kept him away from Malta for 12 years, during which he honed his professional skills in London and Italy. When the opportunity to join the family business finally presented itself, it was not a decision he made lightly. The early 1970s were a challenging period in Malta, marked by soaring inflation rates and governmentimposed price controls – an ecosystem that presented obstacles for private enterprise.
Upon joining the family business as an assistant accountant, Farrugia recognised that to propel Farsons towards greater success and evolution, he had to embrace a larger role in advocating for a lesscontrolled private sector that could strengthen Malta’s economy. “I was part of a local organisation that issued a manifesto called The Way To Economic Recovery, outlining how the private sector could contribute to a healthier economy. I’m pleased to say that over time, many of those ideas were adopted,” Mr Farrugia reveals. Later, Farsons also stood as an early proponent of Malta’s entry into the European Union (EU), at a time when the notion of an open market was unfashionable and local industries sought protection.
“Many cautioned us that joining the EU would result in losing our market share, and they were partially correct. We used to command 95 per cent of the market, a position we no longer hold. However, our decision was rooted in the belief that an open market would test us and spur improvement and competition, and we’ve been proven correct. Despite a slight dip in market share, our business has only continued to grow,” Mr Farrugia explains.
Farsons has since firmly established itself with a portfolio of renowned brands, including Cisk, Blue Label and Kinnie beverages, which have become household names across Malta. However, Farsons’ success lies not only in launching well-received brands and cruising on their popularity, but in their constant adaptation with the times.
What began as a single variation of Cisk lager beer has now blossomed into a range of successful spin-offs, including an acclaimed Excel version, a refreshing pilsner and a slightly
stronger Export variant. This expansion of choices has further solidified Cisk’s position as a leading beer in Malta, earning its rightful place as an icon in the country’s industrial narrative. As the market landscape opened up, Farsons left no competitive angle unexplored, transitioning from traditional beer bottles to a diverse range of cans, a strategic move that enabled the brewery to extend its reach beyond Maltese shores.
And just as the inaugural Farsons Pale Ale was a response to the dominance of British imported beers, Kinnie emerged in 1952 as a direct response to the rising global influence of Coca-Cola and Pepsi. Anthony Miceli-Farrugia, a family cousin and a key figure at the helm of the company during that era, envisioned a carbonated soft drink similar to Italy’s Chinotto. The result was Kinnie, a non-
alcoholic bittersweet aperitif with an anglicised name, which over the course of its 70-year history has seamlessly joined the ranks of cherished national cultural symbols such as pastizzi, il-luzzu (Maltese fishing boat) and its equally famous Farsons-produced cousin, Cisk.
Through strategic partnerships with globally recognised brands like Pizza Hut, KFC and Burger King, Farsons also ventured into the catering and food importation business, opening up new avenues for growth and expansion. Reflecting on the decision to enter the quick-service restaurant industry and collaborate with well-established franchises, the Chairman shares insights into how the move was driven by a desire to embrace a more diversified approach to ensure the company did not rely solely on the local market for sustained growth: “We were confident in our ability to handle large multinationals due to our prior experience. We possessed valuable skills that we could bring to the table, and as a result, our foray into this sector has been successful. It has been over 30 years since we embarked on this journey, and it has strengthened our business.”
Another key contributor to Farsons becoming so popular in Malta is the company’s belief in offering people enticing opportunities to engage with its brand through unique events and initiatives. One example is the annual Farsons Beer Festival, a beloved fixture on the local summer calendar since its modest beginnings in the
“Both our Beer Festival and The Brewhouse have enabled us to truly engage with people and become part of the social fabric of the nation.”Old Farsons brewhouse decommissioned in 2013
1980s which continues to attract thousands of locals and tourists who come together in a celebration of live music and beer culture.
The recently launched The Brewhouse, which has been hailed as a landmark redevelopment of the Farsons brewery site in Mrieħel, continues this legacy, welcoming the public into the Farsons world through a dedicated Cisk taproom (Cisk Tap), an immersive visitors’ centre, a brand store, and more.
The Chairman emphasises the importance of finding innovative ways to engage with consumers beyond traditional advertising, stating, “we have always believed that relying solely on conventional advertising is not enough to truly embed your brand in the hearts of people. To forge a lasting connection, you need to entice them through innovative approaches that go beyond product consumption. Both our Beer Festival and The Brewhouse have enabled us to truly engage with people and become part of the social fabric of the nation.”
Despite surpassing traditional retirement age, Mr Farrugia remains dedicated to securing Farsons’ future, and is currently in the process of ensuring a seamless succession plan for the business. His visionary leadership continues to shape the company’s trajectory. While he teases countless untold plans to steer the company towards greater successes, he hopes these will be realised by the capable hands of the next generation of Farsons leaders.
As for aspiring entrepreneurs and emerging companies seeking longevity akin to Farsons, Mr Farrugia emphasises the critical importance of building trust: “Trust is the foundation that underpins relationships with your customers, clients, suppliers, employees, and even Government. It’s not just about lip service, but about delivering consistent quality and practising good governance. When trust is established and nurtured, the returns are immense as it enhances the overall performance of the company. Building trust is not just an altruistic initiative; it also brings tangible benefits to the business.”
“Trust is the foundation that underpins relationships with your customers, clients, suppliers, employees, and even Government.”Farsons Foundation launched in 1995 Chairman attends the 1998 The Malta Chamber Council
ORIGINALLY FROM SWEDEN, AWARDWINNING NATURE AND WILDLIFE PHOTOGRAPHER JOHAN SIGGESSON’S RELATIONSHIP WITH THE MALTESE ISLANDS started over 20 years ago, when he came to Malta to study English. “I met a Maltese girl, who would eventually become my wife, and the rest is history,” he smiles, sharing his story from his home studio in Zurrieq.
His interest and passion for animals and the natural world goes back further still – to his childhood days in Sweden, where he would spend much of his time outside in nature when he wasn’t glued to the weekly nature programme on state television.
Reading for a bachelor’s degree in informatics, he studied graphic design, photography and 3D design before going on safari for the first time in 2012. “That’s when I really discovered wildlife photography,” he explains. Then, after being involved in the graphic design and travel sectors for a few years, he made the decision to pursue photography full time.
Since then, it’s taken him to some interesting places, though a soft spot for Africa, and the Savannah in particular, remains.
“I had long been fascinated by Africa, and since that first trip in 2012, I’ve been several times. Now, I go more regularly as a photography guide – so I get paid to go, which is great! This also has its limitations, because you can’t do exactly what you want, but it’s still a great position to be in,” he says, explaining that his passion lies in iconic animals like lions and elephants. “Photographing other animals, birds and insects is also nice, but that is where my true passion lies. My biggest source of income comes from selling my prints, and it is these iconic animals that garner the most interest – luckily, it matches what I want to do!”
Last year, his trips included Uganda, the Kalahari Desert and Japan, and this year, his next trip will be to Kenya, where he will go as a guide.
Speaking of his creative process, Johan explains that with wildlife photography, there are certain limitations, and you can’t set it up like you would a fashion shoot, for example. “You must do your research, and first figure out where to go, depending on what you want to photograph and how you want to photograph it. You must consider things like proximity to the animals, and the environment you’d like for the photos. Then, once you’re there, you can’t
instruct animals what to do! You must try to predict it, figure out where the light is, and maximise your chances of getting the shot you want,” he says.
Yet with travel being intrinsic to his process, when COVID-19 ground everything to a halt in 2020, Johan needed to pivot. From this, a fascinating project was born: Where Wild Orchids Grow, an extensive photographic project on Maltese wild orchids which led to a large-scale coffee-table book.
Revealing how this came to fruition, Johan recalls, “I had plans to go on three or four trips that year, and they were all cancelled or postponed. I had never really worked on a project locally, so I decided to do something here, but didn’t know what the focus would be.”
After some research, he discovered and became fascinated by the fact that several orchids’ species grow wild in Malta. “I had lived here for half of my life, but up until that point, I had never heard about them. I bought
a guidebook on the subject, and began to delve into it. Some of the orchids look very exotic, and I felt they would be great subject matter for a photography project,” he maintains, going on to learn that the first orchid of the season appears shortly after the first rains, but many are very rare and difficult to come by.
“I began reaching out to people on social media who could help guide me and point me in the right direction, and found a lot of help. I was even taken in person to specific sites where these orchids grow,” he recalls, admitting that it became somewhat of an obsession.
Speaking of the experience of photographing the flowers, and how it differed to his usual process, Johan reveals, “when I photograph animals, I generally do so out of a vehicle, so I set up and don’t move much. The animal is doing things, so I must catch that, but a flower doesn’t do anything, so I had to create different angles and make use of different equipment and lenses. I would go to the same plant on different days and times, in different light and weather conditions. In summer, when the sun is up early, I would be there at 4 or 5 o’clock in the morning, shoot for an hour or two until the light is too harsh, and then get home as the kids start to wake up! It was a very different experience.”
Finding some of the rarer orchids was also not an easy task. While many of them grow in several places across Malta, Pembroke, he says, is one of the best places to find orchids. “One of the most common ones, the Maltese Pyramidal Orchid, grows almost everywhere, in garigue areas. Some are extremely rare though, with only a few such plants across the islands, so you really need to know where to look.”
“I took photos of as many different orchids as I could during orchid season, which lasts from October till April or May. When I started, there were 36 known species of wild orchids, and another was rediscovered through this process, making up a total of 37,” he says.
“When I started, there were 36 known species of wild orchids, and another was rediscovered through this process, making up a total of 37.”
After taking thousands of photos, he toyed with the idea of putting on an exhibition, until he decided to put together a book. With his graphic design background, he designed the book himself, had it printed and displayed it at the Malta Book Fair shortly after – bringing the project, which took about a year to complete, to fruition.
Johan’s plan is for this to be the first book in a series he’s calling Marvellous Malta, which will focus on the natural beauty that is all around us. Asked what his next chosen subject will be, the photographer smiles and admits, “I don’t know yet! Putting together a book of this kind is quite an undertaking, and I wanted to give the orchids book its time in the spotlight before embarking on the next project. I’ve been mulling over several subjects though, like wild rabbits, local trees and even seaside subjects, though all have their challenges, and I haven’t settled on one yet.”
Tracing his photographic journey, I ask him about the highlights thus far. Johan humbly attests, “photography is an artform, and I have participated in several competitions, some of them quite prestigious. I’ve done well in these over the years, and that feels good. I think it’s common among creative people to doubt themselves, so when you receive some small recognition, it gives you a boost. But, I have to say that my biggest reward is when someone buys one of my prints to hang on their wall. That’s the ultimate recognition to me.”
Imparting some advice to aspiring photographers, Johan makes a case for giving it a go. “First off, people often think that you need to have very expensive equipment, which is not
necessarily true – it sometimes helps, but one of my favourite shots was taken with an entry level camera. It’s more about your way of thinking. Then, the more you practice, the more your talent grows.”
“Secondly, you don’t have to go to Africa or Southeast Asia or these exotic places… and that’s part of what I wanted to prove with the orchid book. You can create something good with wildlife and nature photography here in Malta too. So, you can be anywhere, you can have any type of gear, and the more into it you get, the more specialised you will become.”
As for what lies on the horizon for Johan, more solo trips will certainly be in his future. “I want to embark on more trips on my own so I can take unique pictures and focus on one thing for however long I want. In fact, my next trip to Kenya will be nine days dedicated solely to elephants,” he smiles, adding that he’s also looking forward to starting work on his second book, and continuing to showcase the natural beauty of the Maltese Islands.
“My biggest reward is when someone buys one of my prints to hang on their wall. That’s the ultimate recognition to me.”
Daniel Cassar, Senior Interior Designer at DAAA Haus, takes Sarah Muscat Azzopardi through the multisensory journey of creating the enchanting interior of Trishna restaurant in Gozo.
entirely different
FOR MANY OF US, THE ISLAND OF GOZO AND THE EXPERIENCE OF EATING AT AN INDIAN RESTAURANT HAVE ONE COMMON FEATURE: FAMILIARITY. That is, your expectations are such that you know what you’re going to get, and often, are left satisfied.
Still, there are exceptions, and the recently opened Trishna, in Gozo’s capital city of Rabat, is one of them – combining a modern twist on typical Indian fare with a distinctly forward-thinking interior design that’s anything but expected.
This is, of course, entirely intentional. “The place was designed in such a way that from the moment you step inside, you are transported into another dimension, forgetting that you are on an island in the middle of the Mediterranean Sea,” smiles Daniel Cassar, Senior Interior Designer at DAAA Haus, the creative studio behind the project design.
The concept, he says, was inspired by the diversity of Indian culture. Gaining insight from a research visit to India, Daniel explains, “India is home to heterogeneous interpretations and representations of patterns, symbols and colours which are associated with people’s emotions.” Another source of inspiration was Goa, found on the southwestern coast of India, which is well known for its white sandy beaches, flora and fauna, he adds, noting that “the element of nature was something we wanted to transmit in our design to bring a unique approach to an internal space, transforming the inside into an outdoor one.”
The result is an elegant, contemporary, modern, and colourful restaurant that represents the rich culture of such a beautiful country.
Looking back on the initial brief, Daniel describes the clients as very open, trusting the design team to create a fitting vision for the space. “The research we did, combined with discussions we had with them, helped us to create a concept which, in our opinion, is completely different from anything you’ll find in Malta or Gozo,” he says, crediting the owners’ passion and trust with helping to create an experience, rather than simply to design a restaurant.
DAAA Haus were responsible for all elements of the design, from the restaurant’s name and branding guidelines to uniform and menu design, enabling them to achieve a homogenous vision throughout.
Describing the design of the restaurant as maximalist, Daniel expands, “it is a design philosophy that is based on abundance, mixed patterns, saturated colours, and numerous accessories.” He also explains that an underlying theme was important to give the project purpose, and to create a cohesive design.
The main colour used in the restaurant is green, and it is no coincidence. “Green symbolises nature – and therefore is a manifestation of God himself – which plays an important role in Indian religion and goes perfectly with our idea of bringing the natural element to the design,” Daniel describes, highlighting the main feature in the middle of the space as a hanging green
forest aspect, incorporating light fittings created by local artisans, especially for this project. “The wicker material with its natural sand colour was chosen to represent the sandy beaches of Goa. Its texture and colour combined with the hanging artificial plants create a centrepiece to help separate the space into three different zones. The use of floral wallpaper, meanwhile, works perfectly with the theme of nature and is a backdrop to a big, bespoke library that stands on the right side of the restaurant, decorated with selected items that complement the maximalist style that we had in mind,” he says.
This maximalist style is evident throughout the space, with the use of patterned fabrics in the booths and tiles used at the entrance of the restaurant, combined with polished concrete flooring in the open dining space. With usage, Daniel explains that the concrete flooring will age nicely and add character to the design. Meanwhile, neutral colours and natural materials were used for soft furnishings and other aspects of the design to create balance and harmony. “Although there is such an abundance of colour and pattern, everything was carefully selected, including the monkey wall lamps, which transform clutter into a beautiful design that represents such a rich culture,” he maintains.
The time dedicated to researching Indian culture also comes across in the design, though not in a way that is obvious. “We wanted to create an authentic design which represents the diversity of the culture, such as the colours and patterns used, architecture, the nature found in certain parts of India, the religious aspect, and how meditation is important for the Indian population,” Daniel maintains,
“Although there is such an abundance of colour and pattern, everything was carefully selected, including the monkey wall lamps, which transform clutter into a beautiful design that represents such a rich culture.”
noting that the introduction of a water feature also adds a sound element to the experience.
The same importance was given to lighting, which is another aspect that is crucial in design, as this determines the way the customer perceives and connects with what is around them. “The bespoke pendants combined with the green ceiling feature plays particularly with shadows which is very representative of how the sun hits the trees. We wanted to play with multiple senses to emerge into a different world,” the interior designer adds.
Looking back on the process, the interior designer admits that, despite challenges and delays posed by the COVID-19 pandemic, the project ran smoothly, bolstered by good communication with the client. Despite being the owners’ second restaurant, Daniel says that for them, this was not just another restaurant, and it was evident in the process – and result. “The clients are very connected to Indian culture, and they are parents of two girls adopted from India. It was a pleasure to work with such a
passionate client, and a lot of attention was given to every detail, which in my view, makes it a beautiful space to dine.”
The fact that the design team were involved from the start, he adds, also helped a lot, as they could work on the actual division of the space with the architect, therefore making the most out of the particular shape the restaurant has.
Expanding on this, Daniel explains, “one of the biggest challenges while designing this project was the shape of the space, which is a bit narrow and very long, while lacking in natural light.”
To divide the space, the team chose to create a feature in the ceiling which would break the visual of the customer while not wasting any space which could be used for the dining experience. Another challenge, he notes, was balancing all of the different materials, textures, colours and patterns together, which the team did admirably. “During the design process and while working with the visuals, we experimented a lot to find the right
“We challenged ourselves to create something unique and different –it’s not your average Indian restaurant! Although the maximalist design is very busy, the place offers a harmonious experience where one can relax and enjoy the taste of India.”
balance. We challenged ourselves to create something unique and different – it’s not your average Indian restaurant! Although the maximalist design is very busy, the place offers a harmonious experience where one can relax and enjoy the taste of India.”
A main focus during the design process was quality, particularly in the materials being used and the choice of working with local artisans. “All the workmen were from Gozo, and all items were purchased from Gozo as well,” says Daniel, listing the primary
materials used as natural, raw materials such as wicker, wood, fabric, and concrete. “We tried to avoid plastic… actually the fabric used is made from recycled plastic! Apart from being recycled, the fabric has other properties – it doesn’t absorb any liquid, which makes it ideal for a restaurant for maintenance purposes.”
Other materials include recycled patterned tiles which were the client’s own, that add character and connect the two cultures. Meanwhile, most of the decorative items were purchased from flea markets in Gozo, and the plates hanging on the walls were created by local children as a school project. “Most of the work was done with purpose, and a lot of time was dedicated to creating a unique concept which transmits an extraordinary experience for diners.”
Looking at the space now, Daniel feels that Trishna has pushed the boundaries when it comes to combining a pleasant ambience with the unique characteristics reminiscent of the colourful Indian culture – a feat made considerably more challenging by the absence of natural light in the space. “We pushed material and conceptual boundaries by playing with different light to create effects that are visibly calming and emotionally engaging to the visitor without noticing the deficiency in natural light.”
Viewed together – all the carefully chosen elements from the lighting to the water feature and green ceiling reminiscent of the forests of India – all the senses are engaged to truly make you feel as if you’ve emerged into a different world.
“The bespoke pendants combined with the green ceiling feature plays particularly with shadows which is very representative of how the sun hits the trees.”
