The Malta Business Observer, 30th August 2018

NEWS

Issue 89

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Distributed with Times of Malta

August 30, 2018

Employer bodies said that the recently-introduced legal notices on employee leave need to allow for flexibility while respecting workers’ rights. see page 5 >

NEWS e Central Bank downplayed the impact of Standard and Poor’s banking sector downgrade on the local banking industry. see page 6 >

Maltese restaurateurs despair at lack of personnel, quality of recruits Martina Said In recent years, restaurateurs in Malta have been blessed with good fortune in the form of high demand, a growing economy, and a population with disposable income and increasingly adventurous palates. However, with each blessing comes a curse, and there are many other industry-wide challenges to contend with, including the dearth of Maltese people willing to work in the demanding food and beverages (F&B) industry, as well as the negative perceptions that still surround this line of work; challenges which are leaving many restaurant owners at their wits’ end.

“Competition has inherently increased, forcing the existing establishments to focus their energy on improving the quality of their product and, even more, the quality of their service,” said Claudienne Harb, council member representing the restaurants sector of the Malta Hotels and Restaurants Association (MHRA), and Finance and Operations Manager of Middle East Catering Limited (AliBaba Catering).

“Improving the product constitutes a continuous struggle with existing suppliers and the search for better prices in line with maximising profits. Improving service is a nightmare, and keeping the existing standard is a daily difficulty. Chefs are scarce. No one wants to work longer hours, and this job necessitates

the passion and willingness to give more than the ‘8 to 5’ job.”

Ms Harb added that, seeing as talent has gone missing, it has become easier to open common establishments that don’t require a maximum level of talent, automatically lowering the industry’s standard considerably. “To add to the staff matter, locals are no longer available to join the catering industry for the same reasons aforementioned. The front of house has to be equipped with foreign individuals that require constant training – a culture shock indeed for local diners to accept foreign languages during their dining experience,” she asserted. “In sumContinued on page 3

ANALYSIS Addiction experts are at odds on the effectiveness of a programme allowing compulsive gamblers to ‘self-bar’. see pages 9, 13 >

STOCK MARKET REVIEW Apple, which surpassed USD1 trillion in market value this August, is an outstanding case study of value creation. see pages 22, 23 >

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NEWS

Running costs for restaurants “a constant battle” Continued from page 1 mary, even though in general business is good, owners have to tackle each department with extreme caution on a daily basis. Even though recruitment agencies have sprouted all over the island to meet the industry’s requirements, the quality leaves much to be desired.”

An increased presence of foreign nationals in local catering establishments shows a shift in the country’s status once again, said Ms Harb, as they’re not only filling the gaps of employers and their respective staff requirements, but also opening their own establishments and therefore creating their own recruitment necessities. “We often hear locals complain that foreign nationals are taking their jobs. As employers, we are aware from experience that, at interview stage, local candidates are shocked at the idea of working on weekends and public holidays. The goal of foreign nationals is to work and make money, possibly even to send it all to their family in their home country. Therefore, they offer their service throughout the week.”

With only one accredited, locallybased institution aimed at preparing prospective employees in this field, ITS, Ms Harb stated that the issue of a lack of talent is problematic at source, as younger generations are not attracted to the F&B industry for all the reasons stated.

This, in turn, doesn’t make it any easier for the institution to produce a good number of local, talented individuals that can satisfy the evergrowing and dynamic catering industry, which is also the soul of Malta’s tourism industry.

“The struggles that owners are facing are pushing them towards common mistakes, such as offering beginners of diploma/degree

courses an attractive salary that cannot be refused. This interrupts their studies and the chance of a brighter future for them and establishment owners. It has become necessary for the same restaurant owners to become an institution for themselves. They must employ non-talented people that are desperately seeking a job out of necessity and offer continuous in-house training to sustain their business.”

Owner and Chef Patron at Giuseppi’s Restaurant in Salina, previously in Mellieha, Michael Diacono, said that since he started out in the industry some 25 years ago, Malta’s dining scene has changed dramatically. He stated that while it cannot be denied that, currently, the industry is stable and working well, sourcing talent and soaring costs are the greatest challenges he has to contend with as a restaurant owner. “Tackling human resources is such a headache. Whilst locals do not find the catering trade so attractive anymore, with the added expectations of our clients, we cannot afford to hire untrained personnel, which is why we now literally have an international workforce. They are all experienced in their trade and that comes at a cost. As for running costs, it’s a constant battle to contain them as much as possible.”

Marvin Gauci, owner of five successful eateries including Tarragon and Dinner in the Sky Malta, said the local restaurant industry is changing at a much faster rate than ever before. He added that current growth in the restaurant industry has contributed to new concepts and a higher level of product and service. “It has also offered an ideal platform for young local talent to experiment with new concepts and, moreover, to a better appreci-

ation of local produce. The current scenario has offered my business healthy competition which keeps us on our toes, so as to offer a food experience which makes us stand out from the crowd.”

The current pervasive challenge of a shortage of talent is a natural consequence of the industry’s own success, he stated, as an increase in eateries across the island has inevitably led to a wider demand and supply gap, thus hindering restaurateurs’ plans for further growth.

“The current talent crisis is partially being curbed by the availability of foreign workers, yet as a long-term solution, Government needs to invest further in education so as to ensure a better flow of local talent,” said Mr Gauci. “Education must be tightly linked to an outreach campaign in schools which explains and emphasises why students should pursue a career in the F&B industry. There are further margins for growth, but unless we attract more skilled workers, the industry may face serious challenges in the near future.”

Kris Fenech Soler, Managing Director at Trabuxu Bistro in Valletta, said he believes that Malta’s booming restaurant scene has changed for the better, with a larger variety of cuisines and concepts available.

However, he added, “I do agree that unfortunately, we are facing difficulty in sourcing talent and a huge shortage of Maltese workers willing to work in this industry. A few options that I believe would help this problem are making it easier for third-country nationals to get permits to move to Malta for work, offering better wages, and involving the staff in decision-making while showing appreciation for what they do – working as a team and a family, and not just a number.”

While Mr Fenech Soler agreed that economic growth has impacted the industry in a positive way, and that the future of the industry looks positive overall, he added “what I do wish to see is more restaurants giving a better product and service; taking more pride in what they do, as opposed to just seeing the financial side to

“e waiter in a restaurant today can be the general manager in an established five-star hotel in Malta or even abroad tomorrow – a prestigious career line indeed.”

– Claudienne Harb, MHRA

it. As establishment owners, we are also representing Malta and not just our individual restaurants, and this is our chance to prove ourselves.”

Innovation within the industry will help to sustain its longevity, but what can be done locally to encourage innovation in the first place? “Locally, the industry needs a shock at its roots,” Ms Harb stated. “Educating the younger generation in schools and possibly offering subject choices that allow the individuals to explore their own potential in cooking as well as in offering a service would be a start in the right direction. The notion that a waiter is a job for the less educated has to be eradicated. The waiter in a restaurant today can be the general manager in an established five-star hotel in Malta or even abroad tomorrow – a prestigious career line indeed.”

Ms Harb added that the MHRA also condemns any illegality in relation to overtime payments or overworking of employees. “These practices still exist and are a deterrent to anyone who may remotely be attracted to working in our industry. Therefore, we need to regularise these incidents and minimise them further.”

“Another practice that our local institution should consider adopting is placing students immediately in local and well-established restaurants. It is our duty to ensure that they are trained in the field immediately and it will present them with the knowledge and experience required,” she asserted.

“Restaurant owners should be the mentors and nurture students’ passion with the mind-set that they are the future. The best of teams will be a clear reflection of the restaurant itself. Innovation will follow automatically.”

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Legal notices need to allow for flexibility without infringing on workers’ rights, employer bodies state Marie-Claire Grima The employer organisations which protested against the stealth introduction of four legal notices by Government on the on the eve of Santa Marija – the 14th August, a period typically associated with business shutdowns – and successfully lobbied to place the same notices on hold, are keen to resume discussions on the subject – and find a resolution that is beneficial to workers without tightening the noose around employers’ necks – as quickly as possible.

“The fact that no consultation was carried out at the Employment Relations Board (ERB) meant that employers were faced with a fait accompli without any right of reply,” said Frank V. Farrugia, President of the Malta Chamber of Commerce, Enterprise and Industry. “As employer bodies, we have taken this issue very seriously, and while we remain willing to discuss and negotiate, we can never accept this sort of treatment.”

“The manner in which the legal notices were introduced sets a dangerous precedent and should be of great concern to all social partners,” said Joseph Farrugia, the Malta Employers’ Association’s (MEA) representative within the ERB. “The normal procedural approach of discussing such legal notices at the ERB was purposely bypassed and these laws came into effect by stealth during a time when most people are taking a break during the summer. This is utterly unacceptable to employers. I believe that there was a realisation within Government ranks that something went astray when these legal notices were issued, whether it is by design or genuine omission. This in itself is positive and we sincerely hope that discussions are re-directed on the proper track. Structures such as the ERB

are certainly not talking shops.

They exist for a very specific and constructive reason. The social partners help in the design of legal notices because they can foresee possible pitfalls through their practice and interaction with their publics. We are now also faced with an anomalous situation because, in reality, a law cannot be put ‘on hold’. Unless it is repealed, it is still valid. This is the quicksand that we now have to work together to get out of.”

“These new regulations come at a time when Malta is experiencing an acute shortage of labour supply, and these new regulations will accentuate existing problems in the labour market in no small way,” said Tony Zahra, President of the Malta Hotels and Restaurants Association (MHRA). “In the current scenario, regulations need to allow a degree of flexibility without diminishing the rights of the workers, and not introduce rigid conditions that will compound the problems which employers are faced with on a daily basis. It seems that the new regulations were drafted without eval-

“In the current scenario, regulations need to allow a degree of flexibility without diminishing the rights of the workers, and not introduce rigid conditions that will compound the problems which employers are faced with on a daily basis.”

– Tony Zahra, President, MHRA uating the huge impact these will have across all industries and the challenges these will pose for all employers. Discussions need to lead to a process that evaluates the new regulations against the current realities and challenges in the labour market. Whilst the regulations are intended to benefit workers, we also need to ensure that Malta’s competitiveness is not eroded, as everyone stands to lose if this happens.”

While affecting the broad spectrum of Maltese business, the legal notices are particularly relevant to the hospitality industry. The revised system allowed annual leave allotment to continue to accrue even when employees were on maternity, sickness or injury leave and even when on unpaid leave.

Moreover, the new regulations stated that, once granted, leave could not be revoked under any circumstances whatsoever. Fur-

thermore, employers could only utilise up to 12 working days from the annual leave entitlement for the shutdown period.

“The vacation leave measures can be particularly detrimental to the hotel industry,” affirmed MEA’s Mr Farrugia. “The regulations provide numerous rights to employees to avail themselves of vacation leave, but absolutely no balancing measures to protect employers’ interests. How can we be expected to accept that once approved, vacation leave cannot be stopped under any circumstances, for example?

The measures related to equal pay for work of equal value are nebulous and will lead to complicated scenarios in circumstances of triangular working relationships. If Government wants to destroy the outsourcing sector, it should just say so.”

“Because of the nature of the tourism and hospitality sector, leave entitlement is already very high and replacing absent employees during certain days of the week and hours of the day is a constant challenge for employers in our sector,” MHRA’s Mr Zahra concurred. “The new regulation related to accrued leave is certainly one of the main concerns.

Equally of concern is the issue of the utilisation of leave entitlement by employees, which would risk putting employers in a position where they are unable to manage their own workforce.”

All employer bodies which spoke to this newspaper expressed hope that a fair resolution would be found that would benefit all stakeholders. “The Malta Chamber looks forward to discussions to resume, in order to find a solution which is equitable and balanced for both the needs of Malta’s employers and workers alike, within the context of a competitive economic scenario,” concluded the Malta Chamber’s Mr Farrugia.

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e Malta Business OBSERVER | August 30, 2018

NEWS

Banks with ‘negligible links’ to Malta’s economy pose no threat to financial stability – Central Bank Marie-Claire Grima The Central Bank of Malta has stated that it does not have any indication that the banking downgrade issued by credit rating agency Standard and Poor’s at the beginning of August, which moved Malta’s banking sector’s risk score two notches up on its 10-point scale, has had any material impact on the Maltese banking industry.

Standard and Poor’s highlighted increased reputational and operational risks for Malta’s banking sector, noting allegations of money laundering against Pilatus Bank and its “perception of poor transparency at some banks” on the island. The credit rating agency’s anchor for banks operating primarily in Malta now sits at BBB-, rather than BBB. “While allegations of money laundering against a particular small bank may adversely affect the perception of the overall banking industry’s reputation, nevertheless, such kind of small banks with negligible links to the domestic economy do not pose any systemic risk on domestic financial stability,” a spokesman for the Central Bank told this newspaper.

The Central Bank reiterated what it had said in the press release issued following the publication of the S&P Banking In-

dustry Risk Score, saying that “such score is essentially based on the rating of Bank of Valletta, which was lowered to ‘BBB’ from ‘BBB+’.”

The Central Bank also insisted that Malta’s banking sector, with specific focus on core domestic banks, “has already been undergoing a rigorous de-risking process, which is set to continue and hence mitigate further any perceived reputational risk.”

“According to the S&P report, the increased reputational and operational risks for the Maltese banking sector, mainly stemming from allegations of money laundering against a small bank, was one of the reasons that affected BOV’s rating, together with legacy litigation risks to which BOV is exposed.”

“As stated in the CBM’s press release referred to earlier, the financial fundamentals of the banking sector, including those of BOV, remain sound. Domestic banks have shown to be resilient given their adequate capital levels, ample liquidity, high asset quality, with NPL ratios at historic lows, and strong profit performance."

Despite S&P’s banking downgrade, other credit rating agencies, including DBRS and Fitch, have maintained Malta’s positive ratings, which the Central Bank acknowledged as proof that its confidence in Malta’s banking

“e financial fundamentals of the banking sector, including those of BOV, remain sound.”

sector was warranted. “In its report, S&P highlighted that Maltese banks operate in a steady environment that continues to support their profitability. They also highlight that the expanding economy will help banks reduce non-performing loans (NPLs) and that potential weaknesses in small Maltabased, internationally-oriented banks do not pose direct risks to financial stability.”

“This assessment is consistent with that of other credit rating agencies, which continued to rate the Sovereign at A (high) or A+, and the view of the Central Bank of Malta that the Maltese banking industry is sound, resilient and profitable.”

The Central Bank also commented on the link between Malta’s introduction of important cryptocurrency and DLT legislation and the establishment of the Malta Digital Innovation Authority, and its traditional banking sector. “This legal framework should ensure consumer protection, market integrity and financial stability for companies engaging in blockchain and virtual financial assets.”

“The traditional banking sector is regulated under a separate legal framework but banks can also benefit from the newly-established legal framework should they wish to venture into such business without compromising their traditional business model.

With effective regulation and supervision, the promotion of such activities should create opportunities for the whole financial services sector.”

Most local banks, including BOV, contacted by this newspaper preferred not to comment. Meanwhile, a spokesman for HSBC Bank Malta stated that the bank did not comment on reports from individual rating agencies, reiterating simply, “HSBC’s unwavering commitment to sustain the highest global standards for compliance. Effective and ongoing compliance with all relevant standards is an essential pillar for the country’s financial system to thrive over the long-term.”

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ANALYSIS

Gambling addiction experts divided on effectiveness of selfbarring programme Rebecca Anastasi Addiction experts are at odds on the effectiveness of a programme allowing compulsive gamblers to voluntarily request to be denied access to all land-based facilities for a definite period of time, as laid out in the Self-Barring Directive of 2011.

This follows the publication of figures by the Malta Gaming Authority (MGA), whose annual report covering up until the end of 2017 states the number of self-exclusion requests in the land-based gambling sector – covering casinos, bingo operators and betting shops - has grown by 9 per cent, from 1,277 in 2016 to 1,393 in 2017 – an average of nearly four people every day. Most (52 per cent) chose to self-bar for a period of six months, with the rest opting to deny themselves access for one full year, though the report also claims one instance of self-barring for an indefinite period.

Speaking to this newspaper, Priscilla Muscat, a psychologist and the general manager for the Responsible Gaming Foundation (RGF), stated that self-barring is “a very useful tool as it can help in preventing relapse” in those who are in the process of quitting. “This process requires resilience and determination, whereby gamblers go from a point of not wanting to quit, to contemplating quitting, to eventually trying to stop, to successfully quitting."

RGF was set up in 2014 to create an awareness of the consequences of gambling in Malta, utilising funds donated or collected from the Maltese gaming sector. Compulsive gamblers are usually more likely to self-bar, according to Ms Muscat, when they “experience a big loss” and “hit rock bottom.”

It is then that “they get the courage and determination to change,” she said. She encouraged those seeking help to contact the RGF on 1777.

Yet, Joseph Cauchi, the coordinator of support group Gamblers Anonymous, under the auspices of Caritas Malta, expressed doubt on the effectiveness of the self-barring programme. Mr Cauchi, who has over 30 years’ experience overseeing the recovery programme for compulsive gamblers, pointed out that following the self-barring period, an individual had to reapply to continue to be denied access. “Do the authorities follow up to check if the same person keeps barring themselves? I’ve had people who bar themselves for one whole year, and as soon as the barring ends, spend all their money. It’s as if they’ve been waiting a whole year to gamble!” he said, pointing out that “a compulsive gambler is not responsible by his or her very nature.”

Mr Cauchi was also sceptical of the claim made by the MGA report, that the increase in self-barring could be the result of the effectiveness of outreach gambling awareness programmes. While not dismissing the importance of such programmes, he said the rise in exclusion cases could be “because gambling is on the increase.” He highlighted that self-barring requests only applied to those who gamble in casinos or outlets. “They can still participate in online gambling. Compulsive gamblers will find a way, whatever. They cannot be in an environment where gambling is prevalent. And the word is not gaming, it’s gambling, and it makes me angry that a different word is used,” he said.

Indeed, he blamed environmental factors, such as the ubiquitous nature of the gambling industry locally and its presence in the media, for an increased acceptability of the sector which, he said, could result in an increase in the number of people trying out the game. “The environment of gaming today is dangerous. It is everywhere you look.

People are making money from broken families, but this gets hidden because it’s a

“is process requires resilience and determination, whereby gamblers go from a point of not wanting to quit, to contemplating quitting, to eventually trying to stop, to successfully quitting." – Priscilla Muscat, Responsible Gaming Foundation stigma. Gaming is so normalised and a gambling addiction can start very fast.” He pointed out that those who have addictive personalities only need to try it “once or twice” before they become addicted and descend into a spiral of self-destruction.

This was corroborated by Pierre Scicluna, a fully-qualified, accredited and

warranted counsellor, CBT therapist and psychotherapist who works both locally and abroad, and has worked in addiction in London. “Environmental factors do play a role and the promotion of the gaming industry is not banned, so this could lead to an increase in gambling addicts.” He underlined the link between a “high tolerance of discomfort” and an addictive personality. From a psychological point of view, “bringing up young children to be tolerant and to face uncomfortable situations is the key for more resilient people,” he stressed, but he warned that “parents are not teaching their kids how to tolerate discomfort, but they are being very accommodating.”

Environmental factors were also noted by Ms Muscat, who said that, while there are a broad range of reasons why someone would take up gambling, “attitudes towards gambling are positively related to availability and cultural acceptability.” While quoting the MGA’s report in underlining that, overall, people who engage in paid gaming activities “are most likely to be aged 45 and over, have a secondary level of education and are not active in the labour market,” she attributed take-up to “extrinsic factors such as football leagues or an upcoming election.”

However, the RGF website also states that “youths are five times more exposed to Continued on page 13

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e Malta Business Observer is Malta’s leading business newspaper distributed with Times of Malta every month.

Managing Editor Marie-Claire Grima

EDITORIAL

Publishers Allied Newspapers Ltd. Content House Group Ltd.

e importance of dialogue The recently-introduced legal notices, which were announced on the eve of Santa Marija, and promptly put ‘on ice’ after strong exhortation from employer bodies, dealt with amendments in the case of business transfers, temporary agency workers, and new regulations on itemised payslips and annual leave. The employer social partners which protested the introduction of these legal notices, and successfully petitioned Government to put them on hold, stated that they felt that without the necessary consultation, the four legal notices would give rise to severe disruptions in the labour market. They also protested the very way the legal notices were introduced, with all employer bodies agreeing that the fact that the discussion had been bypassed at the Employment Relations Board (ERB) defied the very spirit of social dialogue.

The revised legislation allowed annual leave allotment to continue to accrue even when employees were on maternity, sickness, or injury leave, and even when on unpaid leave. Representatives of employment bodies who spoke to this newspaper on the subject for our story on page 5 pointed out that in Malta it is common practice to keep employees who are suffering from long-term sickness on the company’s books when their sick leave is exhausted, as a measure of corporate social responsibility. They argued that the fact that, under the new legal notices, an employee can return to work after, say, six months unpaid leave, and be entitled to another 12 days paid vacation leave, would work against employees’ interests, as companies will now be less inclined to extend sick leave or unpaid leave.

They also protested the legal notice that stated that leave could not be revoked under any circumstances whatsoever, once it had been granted, as well as the regulation forbidding employers from using more than 12 working days from the annual leave entitlement for the shutdown period, remarking that the new regulations seemed to have been drafted without evaluating the substantial impact they would

have. And while many industries would be affected by the newly-introduced regulations, most agreed that the sector that would be most acutely affected is one that is facing considerable challenges of its own – the hospitality sector.

In this issue’s cover story, we spoke to a number of restaurateurs who lamented the fact that, while there is high demand for dining out in Malta, with a growing clientele that has more money to spend, and is more willing to try out new things, very few Maltese people want to work in the industry, for a number of reasons. For instance, there’s no question that hospitality is a tough line of work, but it’s even further compounded by the fact that many – incorrectly – see it as a dead-end job. And with that in mind, is it any wonder that the local hospitality industry employs so many foreigners, who are often the only ones willing to put up with the demanding environment of the industry, only to be subjected to grousing from Maltese patrons who wonder where all the Maltese waiters and baristas have gone? Considering all the other running costs and overheads that make life a daily nightmare for restaurateurs, it’s really no surprise that the legal notices were met with such a loud outcry.

Government can and should do more for Malta’s hospitality industry, which employs so many people, and is broadly responsible for ensuring that Malta’s crucially important tourism industry remains healthy, and that its record-breaking tourism figures remain high. These include subsidies and incentives for restaurateurs, further investment in education to encourage young Maltese people to join the workforce, and measures to make it easier for third-country nationals to move to Malta for work.

But even if none of that is feasible at the moment, the very least that can be done is to involve stakeholders when making important decisions related to industry personnel. After all, the very last thing the industry needs right now is any more HR hurdles.

Advertising Enquiries Tel: 2132 0713 Email: info@contenthouse.com.mt Advertising Sales Matthew Spiteri Director of Sales & Business Development Jean Mark Meli Senior Brand Sales Executive Estelle Duca Brand Sales Executive Director of Sales & Operations Lindsey Napier Printer Progress Press Ltd.

BUSINESS OPINION

Data security and the gaming sector in Malta

Alan Craig Over the last decade, remote gaming has seen the introduction of new internet-based business models, content digitalisation, and the need to enable content to be used on different platforms. This technological evolution has exposed businesses to cybercrime, as cyber-criminals find new and innovative ways to defeat security measures.

Data security has emerged as a major challenge, particularly in view of the very real threat which loss of data can represent to the continuity of a company’s operations and the long-term effect on its reputation.

However, it seems that cyber risks do not always seem to feature on the agenda of Boards of Directors, or as part of the risk management function. In most cases, cybersecurity is sidelined or omitted from firms’ enterprise risk management systems, simply because management cannot figure out where it can fit in their firms’ traditional structures. Such a myopic perspective is dangerous, because the truth is that cybersecurity risks can have grave,

and sometimes fatal, repercussions on businesses. There should be no doubt as to the direct connection between technological risk and business risk.

Reducing exposure to cybercrime requires both technical and operational investments, and the formulation of efficient and effective defence strategies addressing the numerous information technology risks to which gaming companies are exposed, is a critical first step. The mapping of information technology risks and the allocation of the necessary resources to address each major risk should be at the top of the list.

At the same time, management, including the company’s Board of Directors and its Audit Committee, must be made aware of cybersecurity risks, and each of these should understand their respective roles and responsibilities. This would normally include an assessment of the legal implications linked to an attack, and how such an attack might affect the reputation of the organi-

sation. One should also analyse and evaluate the implementation of regular and effective communication between the various management entities, which would be critical in such circumstances. A typical checklist should also take into consideration the allocation of the appropriate human and financial resources, and the implementation of performance indicators for the cybersecurity programme. Finally, it is the responsibility of management to ensure there is a change of culture in order to take into account the impact of these new risks on the organisation.

The importance of personnel training is also critical and so is the integration of security in all company projects. Because of the technical nature of the risks involved, IT management must have in-depth knowledge of best practices, especially those established by the ISO 27001 standard on information security management systems, NIST (National Institutes of Standards

and Technology), ISACA (Information Systems Audit and Control Association) and the SANS Institute.

Regular testing of existing capabilities and procedures will enhance the quality of the protection and its durability over time. This should be complemented by social engineering tests such as email phishing and phone pretexting to ensure users are able to detect a manoeuvre or any process aimed at extracting information from them that might facilitate an attack. Meanwhile, depending on the type of data the company holds and its reputation, it may be subject to hundreds of attacks per day. If a breach appears, the implementation of a proper response plan may make the difference between a mere incident and a complete disaster.

Because of their potential vulnerability, the integration of security in applications or online games (security by design) requires strong awareness and professionalism on the part of

“Regular testing of existing capabilities and procedures will enhance the quality of the protection and its durability over time.”

organisations, particularly in terms of Information Systems Management. In this scenario, it is comforting to note that companies operating in the gaming sector are subject to robust regulation as far as security issues are concerned. In fact, the Malta Gaming Authority (MGA) requires applicants for remote gaming licences to implement an information security policy which safeguards data, applications, equipment and network, as well as a strict system access control policy. Compliance with these cybersecurity policies is one of the requirements for remote gaming applicants to be issued a licence to operate their business from Malta.

Nevertheless, and despite the stringent regulatory framework outlined above, the fact remains that cybersecurity remains a major strategic risk for exposed companies, and that the nature of cybercrime is to constantly seek out and exploit vulnerabilities. Eliminating threats is impossible, so protecting against them without disrupting business innovation and growth is a top management issue. The big question mark therefore remains linked to the staying power of management to keep pace with the increasing sophistication and complexity of cyberattacks and cybercrime in general, and to protect itself against these effectively.

Alan Craig is Business Advisory Partner and iGaming sector leader at Mazars Malta.

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ANALYSIS

Every day, nearly four gamblers choose to self-bar Continued from page 9 addiction than adults.” Indeed, the MGA’s report, published earlier this year and covering the year up to the end of 2017, explicitly states that players within the 25-34 age group constitute the largest number of remote gaming players, “accounting for 39.5 per cent of all customers playing on the websites regulated by the MGA in 2017.” It also noted an increase in the number of visits to gaming parlours by people in the same age bracket. This runs parallel to an increase in the number of gaming licences issued – 165 in 2017, compared to 91 in 2016, amounting to a total of 287 issued to date. The report also confirmed a slight increase in gaming parlours, with four more opening their doors in 2017.

These figures seem to echo Mr Cauchi’s personal experience and his statement that over the past six years, he has seen a substantial number of compulsive gamblers, still in their 20s, come through the door. He called for a ban on the broadcast of television and radio advertisements promoting gambling before a certain time of the day, similar to the restrictions on alcohol advertising, and increased enforcement of the current rules. Echoing this statement, Mr Scicluna also stated that restrictions on advertising could work, but also advocated an increase in the promotion of “more adventurous and stimulating sports.” Indeed,

Compulsive gamblers are usually more likely to self-bar when they “experience a big loss” and “hit rock bottom.”

Mr Scicluna noted that this could help since “gambling can be an escape from pressure,” and such activities could allow those with a tendency to be compulsive gamblers to escape from the pressures they are experiencing.

Ms Muscat also referred to the cases seen at the Foundation of “children and adolescents, who even though are still young, already spend an incredible amount of time on gaming, to the detriment of their schooling, sports and well-being.” She insisted on the need for education and awareness to start from a young age and to

form part of the educational curriculum. “It is for this reason that RGF has embarked on an ongoing educational campaign in schools whereby our team visits schools and organises informative and interactive talks for children,” she said.

Moreover, she stressed that coordination between Government and NGOs was “pivotal” on various fronts: “developing and allocating further resources to training professionals working in the sector; enhancing institutional collaboration; increasing general public awareness of the risks of irresponsible gaming behaviour;

and strengthening prevention, treatment and rehabilitation in a focused and personalised manner.”

Indeed, Mr Cauchi also concluded by emphasising the importance of the 12-step recovery programme at Gamblers Anonymous, which together with psychological treatment, could aid sufferers.

“The former coordinator of Gamblers Anonymous, Mario Dix, used to start his sessions with ‘My name is Mario and I am an alcoholic and a compulsive gambler.’ He used to say ‘am’ not ‘was’,” Mr Cauchi pointed out, highlighting the necessity of sharing. “Before they come here [to Caritas] they go through terrifying experiences, but slowly they start to joke again and share more,” he said, concluding that it is “not just a course of a year or two,” but a lifetime commitment, requiring honesty, humility and willingness to cope with living with the disease, both as an afflicted individual and family member.

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e Malta Business OBSERVER | August 30, 2018

CASE STUDY

€15 million investment to increase Enemed fuel storage capacity Jo Caruana Fuel is one of those things that is easy to take for granted. But from the petrol in our cars, to the petroleum needed to fly us to and from those international business meetings, fuel is a major industry and, locally, Enemed is at the very centre of that.

Enemed, which launched in 2014, is the main importer, distributor and reseller of fuels in Malta. It was actually formed following the split of the then-Enemalta Corporation – at which point the Electricity Division was transformed into Enemalta plc, while the Petroleum Division became Enemed Co Ltd. To this day, Enemed is 100 per cent owned by Government, but operates on a completely commercial basis and does not receive any Government subsidies or subventions. It’s an entity that’s vital to the local fuel industry – and new investment is set to underline that.

“Our team is fantastic and, thanks to them, no plane in Malta has ever been delayed because it wasn’t refuelled on time.”

Explaining how the organisation works and the services it provides, Ing. Allan Micallef, Executive Head of the company’s Aviation Division, said that Enemed provides fuels for both the inland market and its aviation sector. “In that respect, we provide the best-quality diesel and petrol for vehicles and vessels, while also catering for Malta’s aviation needs,” he said.

“In addition, Enemed offers storage facilities to third-party companies which mainly operate in the marine sector.”

However, rather than merely providing a service, Ing. Micallef explained that the company is ded-

icated to offering an ‘experience’ to its end users. “When it comes to the inland market – in other words, fuel stations – we recently launched our franchise product, whereby chosen stations follow strict procedures when selling our products to clients, and the quality checks carried out on our fuels are second to none. In fact, Enemed has invested in a new laboratory to guarantee top-quality consistency.

This means our clients are assured that our products are the best on the local market, and also know they have the backing of scientific investigations should any issues with our products occur.”

Focusing specifically on the aviation market, Enemed works directly with the various airlines that fly to Malta, as well as the international companies that use its services when they have private flights that travel through Malta International Airport (MIA). “Enemed’s Aviation Division is actually divided in two,” Ing. Micallef continued. “One handles the storage and distribution of aviation fuel, and the other is focused on into-plane operations.”

One of the major projects the company is currently working on is the upgrading of its storage facilities, so as to eliminate Birzeb-

buga and Wied Dalam from the aviation fuel route. Upon completion, this €15 million investment will increase the amount of storage available, and incorporate the functions which are currently carried out in Birzebbuga and Wied Dalam. “This means that aviation fuel will be pumped directly from Has-Saptan – the ocean terminal where vessels discharge their fuel – to MIA, where new tanks will be used to dry and settle fuel before it is certified for delivery to aircraft,” Ing. Micallef said.

Meanwhile, the into-plane fuelling operations are run by a dedicated team of 40, which operates

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CASE STUDY

round the clock every day of the year. “Aircraft refuelling is carried out using dedicated aircraft refuelling bowsers,” Ing. Micallef continued. “These bowsers drive up to the aircraft and deliver fuel through a final filtration stage to guarantee that the fuel uplifted to aircraft is completely free of any water content. The amount of fuel uplifted is, ultimately, based on the captain’s decision, and is usually determined by the load on the aircraft, the flight distance, the weather conditions, and whether the aircraft also needs to cater for the return flight.”

On top of that, a dedicated maintenance team takes care of the preventive and emergency maintenance on both the refuelling vehicles and the plant equipment. “All of our operations and maintenance activities are regulated by international standards as required by the industry,” Ing. Micallef said. “In our case, we base our activities on the Joint Inspection Group (JIG) standard, and are audited annually by international experts working to this standard. These yearly audits give our international customers peace of mind that our services and products are reliable and safe.”

And those products and services are certainly in demand – not least because of the increasing air

“Aviation fuel will be pumped directly from Has-Saptan to MIA, where new tanks will be used to dry and settle fuel before it is certified for delivery to aircraft.”

ING. ALLAN MICALLEF, EXECUTIVE HEAD, AVIATION DIVISION.

traffic through MIA. “Growing numbers reflect our workload,” Ing. Micallef said. “Most aircraft refuel every time they take off from Malta and, in the summer months, planes depart one after another. Fortunately our team is fantastic and, thanks to them, no plane in Malta has ever been delayed because it wasn’t refuelled on time.”

Now, beyond the infrastructure works already underway to modernise its storage facilities,

automate some of its operations and, crucially, introduce environmental protection measures, Enemed is investing in its operational infrastructure. “In the case of the Aviation Division, this primarily involves the replacement of our fleet of aircraft refuellers – which currently stands at 10 refuellers for JetA1 fuel, and one for Avgas 100LL. This year saw the arrival of three brand-new refuellers that were purchased through a call for tenders on cus-

tom specifications. These refuellers replaced three of the old ones, and our plan now is to replace the entire fleet by 2020, at a cost of €400,000 each.”

Finally, there is also a firm focus on quality and training.

“Our Aviation Division was already ISO 9001:2015-certified and, this year, we extended that certification to all activities across all the divisions. Next, we plan to obtain our ISO 14001 certification in environmental management

company-wide,” Ing. Micallef said. “Then, last but not least, we have embarked on an employee development programme to raise the level of our employees, both when it comes to technical ability, as well as customer care, quality management and continuous improvement. Together we believe these elements will underline the company vision to make Enemed ‘the preferred choice for our customers, shareholders and team’.”

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e Malta Business OBSERVER | August 30, 2018

LOGISTICS

e sophisticated world of food transportation In the 17th and 18th century, those who were well-off used to pay to have ice transported all the way from Sicily to Malta.

Today, modes of transport have become very sophisticated, not just for those who want to make good impressions, but because of the stringent regulations in place to make sure that the food that reaches our table is healthy.

Express Trailers has been transporting food for many years. Today, it has a fleet of around 80 reefer trailers, dedicated solely to the importation of food to Malta. With its food transport service operating over 60 weekly export and import departures, Express Trailers ensures timely deliveries and collections from all depots, together with customs clearances, NSO declarations, domestic deliveries and lifting services.

“Our service proposition is built on three key features, namely the quality of our vehicles, our GPS tracking system, and our adherence to international guidelines.”

“We understand that food transportation is a very delicate business, not only because of the time factor, but also because this depends on transport in the right temperature conditions. In fact, our service proposition is built on three key features, namely the quality of our vehicles, our GPS tracking system, and our adherence to international guidelines that help us provide a food transportation service of the highest level,” explained Franco Azzopardi, Chairman and CEO at Express Trailers.

“We service over 20 consolidated depots across Europe, located in Spain, France, Italy, UK, Belgium, Netherlands and Germany, amongst others. We work with established partners who like us, adhere to the strictest controls, and have invested in the right equipment and temperature-controlled hubs,” added Mr Azzopardi.

FAR FROM A STRAIGHTFORWARD ACTIVITY Mr Azzopardi explained how the handling of food, as with other perishables and fragile cargo, does not only boil down to having the right equipment or adhering to strict regulations.

THE IT FACTOR Express Trailers’ investment in this sector goes beyond vehicles and equipment. Today, IT is playing a very important role in shaping the way operators like Express Trailers manage the huge food deliveries and consignments.

“Our GPS system is constantly monitoring the temperature inside our reefer trailers, and temperatures are measured every fifteen minutes. In case of any sudden change in temperature, the person managing the delivery receives an instant notification to be able to look into the matter and through an automated system, make the necessary adjustments. Upon arrival and consignment, the client is given a log of all the temperature readings throughout the whole trip from pick-up to final delivery.“ “All this would never be possible without the huge investment we have been putting into this GPS tracking system,” added Mr Azzopardi.

FRANCO AZZOPARDI, CHAIRMAN AND CEO EXPRESS TRAILERS.

“Handling food is far from a simple process or a straightforward task. It also requires insight that only logistics managers like us, who are responsible for the smooth flow of goods, from order and storage to transport and distribution, can handle. They are the ones who manage the entire supply chain cycle to ensure sustainability and customer satisfaction.”

“Today, through our proven track record, we service the main food importers and distributors on the island with the transport of dry and refrigerated food, full or part-load shipments, as well as groupage services for both palletised or non-palletised cargoes,” he added. Express Trailers’ reefer trailers are fully-monitored, temperature-con-

trolled and operated according to the EU’s strict Good Distribution Practice guidelines, to meet all of its customers’ requirements in terms of regulation, security, quality and handling of food transport.

“Being well-equipped allows you to be flexible enough to adapt to specific requirements. In fact, we also support those companies which require a groupage service.

When handling food, time is the most crucial aspect and this is where our GPS tracking system comes in handy, because this gives us visibility of each and every trailer on its way to Malta. This enables us to provide clients with timed collections and deliveries, especially when time is of utmost priority.”

MANAGING THE RISK FACTOR OF FRAGILE CARGO Express Trailers have recently launched their latest campaign promoting its service of food transportation and how this, just like the transport of other fragile and sensitive cargo such as personal effects, antiques, fine art and pharmaceutical products, requires skill and precise operating procedures, best offered by companies with acquired experience and proven expertise.

“We can deliver anything because we are equipped to handle any type of load. In fact, we have also acquired a lot of experience with the handling and transportation of delicate cargo, especially when it comes to industrial relocations and the transportation of heavy plant and machinery. The handling of special transportation projects involves a lot of underlying risks, risks which can only be foreseen by people with long years of experience in such projects. Ultimately, it’s all about

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LOGISTICS

being capable to manage the risks involved, and giving peace of mind to the client who is investing in your acquired expertise,” Mr Azzopardi added.

In fact, Express Trailers was recently entrusted by Busy Bee Ltd with the shipping to Malta of new industrial ovens for the company’s new factory in Mrieħel, which is currently close to completion.

“Together with the client, we go through all stages of the operation, and we plan security routes and delivery schedules to make sure that on the day, everything goes smoothly and according to plan. The successful delivery of these industrial ovens to Busy Bee, notwithstanding the fact that the site was not yet easily accessible, was yet another job that confirms our undisputed reputation, thanks to specialised equipment and the professional logistics foresight of our people on site,” concluded Mr Azzopardi.

“e handling of special transportation projects involves a lot of underlying risks, risks which can only be foreseen by people with long years of experience in such projects.”

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e Malta Business OBSERVER | August 30, 2018

IGAMING

Minimising bureaucracy in iGaming without compromising on quality and security Malta’s remote gaming legislation worked well for several years, and helped make Malta one of the hubs of the online gaming world, but a new Gaming Act was sorely needed in order to accommodate the constantly-changing industry, as well as operators’ and clients’ demands, according to e-Volve Consultancy Malta Ltd. “Remote gaming legislation served Malta well for more than a decade,” said Director Michael Spiteri Bailey. “Industry giants flocked to and flourished in Malta side by side with a multitude of start-ups, making Malta the Vegas of cyberspace and contributing heavily to its GDP. But as the technology evolved and new intermediaries, aggregators, payment methods, and other service providers hit the scene, the legislative framework became restrictive.”

“The Malta Gaming Authority (MGA) always used any leeway which the law gave it in favour of accommodating the changing realities. Over time, a patchwork of written and unwritten rulings, guidelines and creative practices developed. However, stakeholders could sense the need for not of a complete revamp of the legislative framework which was bursting at the seams. Earlier on this summer, the long-awaited new gaming regime came into effect.”

Mr Spiteri Bailey outlined the ways that the new Gaming Act would revolutionise the industry, starting with B2C operators. “In their quest to acquire and retain players, B2C operators strive to offer a varied portfolio of gaming experiences. As any visit to the industry’s annual exhibitions will show you, the offerings have multiplied over the past decade, and while operators would traditionally develop their own software or take on one or two game providers, nowadays they integrate the games of multiple software houses on their websites. And yet, the regulatory process to add on the next games provider was cumbersome and archaic. In essence, a casino operator had to apply for a fresh, full, one-on-four gaming licence for every content provider which it would contract with. This process obviously cost money, and, more importantly time. As a consequence, many operators licensed in Malta would resort to maintaining parallel Curacao or unlicensed operations elsewhere for their secondary offerings.”

Mr Spiteri Bailey said that the new gaming regime has done away with the various classes of licences, making instead one general distinction between B2B operators and B2C operators. “Once a B2C operator satisfies the MGA that it is fit and has a robust business plan and the required processes and procedures in place, it would be licenced as a B2C operator. With this licence in hand, it can look around and contract with licensed B2B operators to take on their content.” The need to apply for a new licence per game provider has also been eliminated. “As from the 1st of August 2018, the addition of games provided by different game creators will only require a mere notification to the MGA, as long as the games provider holds an MGA B2B licence covering the games it is offering.”

Under the new legislation, the B2C licence is called a Gaming Service licence, which authorises the licensee to offer or carry out a gaming service to online players.

“The B2B licence is referred to as a Critical Gaming Supply licence, which authorises the licensee to provide or carry out a critical gaming supply. This is defined as ‘a material supply which is (a) indispensable in determining the outcome of game or games forming part of the gaming service, and, or (b) an indispensable component in the processing and, or management of essential regulatory data’.”

Another innovation introduced by the new Gaming Act is the Material Supply Certificate, explained Mr Spiteri Bailey. “A person in possession of a B2C licence or a B2B licence who wishes to make use of a mate-

rial gaming supply provided by a third party will have an obligation to ensure that the supplier is either in possession of a material gaming supply certificate, or have the material gaming supply approved by the MGA on a case-by-case basis, subject to a riskbased approach. In the event that the supplier is not authorised to supply such service, the licensee will assume the full regulatory responsibility for such supplies.

Thus, it will be in the licensee’s interest to ensure that the supplier is approved in terms of the regulations, especially given the fact that the supplier will not be bound to apply for such an approval.”

Mr Spiteri Bailey added that the new remote gaming regime has extended the duration of licences issued by the MGA from five to 10 years, giving a longer breathing

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MICHAEL SPITERI BAILEY, DIRECTOR.

“Under the new regime, the Maltese legislator has departed from the international trend of structuring gaming taxes on the ‘point of supply’ principle.”

space to operators who want to focus on their business operations, rather than the regulatory bureaucracy of submitting a fresh licence application every five years.

“Under the new regime, the Maltese legislator has departed from the international trend of structuring gaming taxes on the ‘point of supply’ principle. Licence fees are based on company revenue. Undoubtedly, this may have a negative impact on some operators, particularly smaller start-ups which will have to make new calculations and adjust their budgets, especially in cases of shifts from a fixed point of supply tax (e.g. casino operators) and a relatively low gaming licence fee of €8,500, to a fixed licence fee of €25,000. The introduction of exemptions for start-up undertakings partially addresses this.” An additional measure that aids in making the proposed new Maltese licence regime attractive is the introduction of a cap on the variable licence fee.

Apart from facilitating and streamlining the licensing processes, the new regime also aims to reinforce consumer protection standards, responsible gaming measures, reporting of suspicious sports betting transactions in the fight against the manipulation of sports competitions and objective-orientated standards to encourage innovation and development. “Whilst under the previous regime, the MGA already had the role of receiving and processing complaints, the new law seeks to formalise this role and enhance the functions by creating a specific Player Support Unit, with alternative dispute resolution powers to facilitate an amicable settlement

of the dispute between the consumer/player and the licensed game provider. Additionally, in order to further protect players, the MGA is in the process of launching a unified self-exclusion system for remote gaming operators, which was already introduced for land-based operators. The inclusion of such system is still currently being discussed; however, there is a push for such system to be created on distributed ledger technology systems – in other words, using blockchain,” Mr Spiteri Bailey said. “The scope of the functions and powers of the MGA has widened and now encompasses not only the supervision of licensed operators, but also of those entities offering ancillary services which are material to gaming operations. The MGA now also has the power to suspend any authorisation on the grounds of a breach of antimoney laundering and funding of terrorism regulations applicable to it. To counter-balance the marked extension of powers of the MGA, the new law formalises the operator’s right of appeal from the decisions of the MGA to the Administrative Review Tribunal.”

Mr Spiteri Bailey concluded by stating that the MGA should be lauded for spearheading the new regime. “In doing so it built upon the experiences garnered over the first 15 years of the remote gaming industry in Malta and took on board the industry’s concerns and suggestions. The new legislation promises to be an important move in the right direction. It seeks to minimise bureaucracy without compromising on quality and security standards.”

WHAT ARE MATERIAL GAMING SUPPLIERS? A person in possession of a B2C licence or a B2B licence who wishes to make use of a material gaming supply provided by a third party will have an obligation to ensure that the supplier is either in possession of a material gaming supply certificate, or have the material gaming supply approved by the MGA on a case-by-case basis, subject to a risk-based approach. Material gaming suppliers include entities which are: • Manufacturing, assembling, placing on the market, distributing, supplying, selling, leasing, or transferring a gaming device; • Providing risk management services for the operation of a licensable game; • Providing event and odds management systems, including content provision for betting; • Providing fraud management services for the operation of a licensable game; • Holding or managing player funds; • Providing services relating to customer due diligence; • Providing services related to player identity verification; • Providing colocation services and other managed information technology services; • Providing back-up and disaster recovery services.

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e Malta Business OBSERVER | August 30, 2018

IGAMING

New Gaming Act to futureproof industry, add value to Maltese jurisdiction – Camilleri Preziosi The new Gaming Act which was introduced this year and implemented early in August constitutes a complete sea-change in Malta’s existing iGaming and land-based gaming laws, futureproofing the iGaming industry whilst adding significant value to Malta’s positioning as the jurisdiction of choice for the industry in Europe, according to law firm Camilleri Preziosi.

Camilleri Preziosi has been representing land-based gambling operators in Malta since its early days. The firm was founded in 1966 by Dr Louis Camilleri Preziosi, the foremost local commercial lawyer whose name the firm still carries, and who pioneered the concept of a specialised commercial law practice serving a local and international premier clientele. In the runup to Malta’s EU accession in 2004, the firm geared itself up towards servicing the expected influx of iGaming operators seeking to have their operations licensed by the then Lotteries and Gaming Authority, currently the Malta Gaming Authority (MGA).

“Over the past five decades or so, the firm has grown into a respected full-service firm of around 50 practitioners driven to provide clients with technical excellence, quality of service and a solution-driven approach,” said Partner Malcolm Falzon. “Nowadays, a team of four lawyers services operators on licensing, compliance and regulatory matters, whereas members of the firm’s other practice areas are roped in on specific matters requiring bespoke legal assistance in structuring, corporate, financing, transactional, dispute resolution, tax, IP, IT, data protection, blockchain, employment and other matters, to provide a seamless and comprehensive service offering.”

Dr Falzon said that the new Gaming Act which was introduced this year “constitutes an overhaul of our existing iGaming laws,” and outlined the most pertinent changes.

“We consider the most visible change to be the adoption of a horizontal regulatory approach, replacing the previous multi-licensing system with a licensing framework which provides for two types of licences irrespective of the gaming vertical: a Critical Gaming Supply Licence (B2B) and a Gaming Services Licence (B2C). Furthermore, the new Gaming Act introduced voluntary certification of

LEFT TO RIGHT: MALCOLM FALZON, PARTNER; MIGUEL CAMILLERI, ASSOCIATE; TERENCE CASSAR, ASSOCIATE.

e Act will allow technology convergence across different channels of game distribution, while providing legal certainty in the spheres of DLT, blockchain and cryptocurrencies. material gaming supplies for non-critical gaming supplies, permitting suppliers of such services to obtain certification for gaming purposes, and replaced licence fees with ‘compliance contributions’. Under the new Gaming Act, licencees can award prizes in cryptocurrencies, accept cryptocurrencies for the placing of bets and use blockchain and DLT in their operations.”

“Additionally, the previous Key Official role has been divided into various key functions, all of which require authorisation

from the MGA. The MGA’s supervisory and enforcement functions have been expanded, enabling the MGA to better achieve its regulatory objectives, while an administrative review procedure allows operators to challenge MGA decisions.”

Associate Terence Cassar added that the new Gaming Act is aimed at futureproofing Malta’s already very successful iGaming industry, and underlined how particular elements of the overhaul will add significant value to Malta’s positioning as the jurisdic-

tion of choice for the iGaming industry in Europe. “The new licensing system will lessen the administrative burdens to be borne by licencees, for instance, by enabling them to add different game-types without further licensing, and limiting the need for the MGA’s prior approval to only significant changes, such as when a new vertical changes the riskprofile of the operation. The new licensing system is also expected to increase the efficiency of the MGA, both in terms of granting of licences and subsequent compliance oversight, particularly in terms of associated audits. Reduction in administrative burdens associated with licence renewals is also expected, given the increase in duration of an iGaming license term to 10 years.”

Associate Miguel Camilleri added that “the new Act also introduced the concept of a corporate group licence for a person established in the EU/EEA, as well as a partial moratorium for compliance contributions due by start-ups, thereby incentivising a start-up’s entry into the in-

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IGAMING

dustry. Meanwhile, the exemption of B2B licencees from gaming tax enhances Malta’s competitiveness for B2B service providers, while the shift to a risk-based approach will see the MGA adopt a flexible approach towards different – especially new – forms of game-types, depending on the risk posed to consumers. Additionally, the streamlining of the gaming taxation model into one calculated at 5 per cent of gross gaming revenue (GGR) generated from Maltese customers, eliminates any gaming tax previously payable as a fixed fee, and signifies a shift to a point of consumption model.”

Dr Falzon added that the Act will allow technology convergence across different channels of game distribution, while providing legal certainty in the spheres of DLT, blockchain and cryptocurrencies. And the firm is well-equipped to deal with the changes that these new technologies will inevitably lead to. “Camilleri Preziosi has studied the implications of the potential increased use and application of DLT, including cryptocurrencies. To this end, it has established its own blockchain taskforce, which brings together a multi-disciplinary team of lawyers that draws upon a wealth of experience across various practice areas.

Our taskforce seeks to unravel the implications of innovative technologies, such as DLTs, artificial intelligence, automation, biometrics and the Internet of Things (IoT), with a view to championing the opportunities that abound, whilst appreciating and seeking to mitigate the risks and challenges associated therewith,” he explained.

“The iGaming industry has always been inherently receptive towards innovation, and one would expect the industry to look towards wagering bets or winning prizes in crypto becoming commonplace in the near future. However, we would expect the most significant transformation to materialise from the technology underlying cryptocurrencies, rather than from the increased use of cryptocurrencies themselves. An increase in fairness and transparency, more automation and less administrative effort and costs are expected from the rolling out of such technologies.”

In Camilleri Preziosi’s view, blockchain and DLTs will also be crucial tools for the legal sector to keep abreast with market exigencies, not simply as a speciality for service offering purposes, but also for the legal sector itself to simplify data storage and client management processes, increase cybersecurity, and reduce administrative efforts. “Add to that the developments in AI and IoT and one would come to the conclusion that novel tech will not just be a valuable tool for the future, but a requirement to remain competitive,” Dr Camilleri added.

Naturally, any significant regulatory change is bound to give rise to challenges for operators, which have to adjust their business model to fit the new dynamics of the ecosystem within which they operate.

“Preparation, therefore, is key in ensuring a smooth transition,” Dr Falzon said. “One particular aspect we expect to prove challenging unless adequate preparations have been put in place relates to the new key function roles to be implemented at various

In Camilleri Preziosi’s view, blockchain and DLTs will also be crucial tools for the legal sector to keep abreast with market exigencies, not simply as a speciality for service offering purposes, but also for the legal sector itself. levels of the operation – training and sourcing the right skill pool are the obvious solutions to this particular challenge.”

Over the coming years the firm expects technology convergence and innovation to take up an increasingly prominent role. In this respect, Dr Cassar highlighted that “Mobile gaming has matured, and next we expect DLT, virtual reality and IoT to take centre stage. A trend of increasing regulation, which may be particularly strenuous on start-ups, can be seen to be developing.

Finally, market consolidation resulting from increased mergers and acquisitions

(M&A) activity, is another significant trend that seems to be materialising. It is in part attributable to the additional regulatory burdens which have developed in recent years, and do not seem to be relenting.”

With the world of iGaming constantly changing and evolving, is there anything that could pose a threat to Malta as a highlyrespected international iGaming hub? “It is arguable that the threats to Malta as an iGaming hub principally derive from the very success Malta achieved from iGaming regulation,” stated Dr Falzon. “The country must safeguard the good reputation it has built over the years in this sector, and be seen to be a place in which businesses can be run efficiently, safely and subject to the right level of regulatory scrutiny. From a functionality perspective, we must recognise the fact that a strain on Malta’s physical infrastructure and human capital has materialised as a result of the influx of iGaming (and soon DLT-focussed) companies, which requires careful management and foresight to contain. The increase in licencees, in tandem with disruptive technologies, means that the MGA is likely to require more manpower and increased technology automation to be able to adequately supervise existing operations and properly assess new ones seeking to join this leading base for iGaming operators. The regulatory overhaul’s aim to futureproof the industry and various initiatives designed to address concerns such as those we’ve identified are testament to the fact that Malta is aware of the risks it is susceptible to, and is actively seeking to address them.”

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STOCK MARKET REVIEW

A trilliondollar apple

Josef Cutajar On various occasions in recent weeks, Apple Inc. grabbed the major international headlines across financial markets. On 31st July, it reported strong quarterly revenues and profits that exceeded expectations. The following day, the company’s share price surged by nearly 6 per cent to close at the USD201.50 level after briefly recording a new all-time high of USD201.76. Then, on 2nd August, Apple finally managed to surpass the USD1 trillion in market value – a feat that no other publicly-listed company in the world had ever managed to achieve. Since then, Apple’s share price continued to advance, with the equity momentarily trading at a new record high of USD219.18 on 20th August.

Apple’s journey to the USD1 trillion valuation has been nothing short of spectacular. Indeed, it is worth noting that at the start of the current bull market in US equities in March 2009, Apple’s market capitalisation stood at just under USD77 billion. The surge to today’s levels represents a compound annual growth rate of 36 per cent. In comparison, although all three major indices in the US registered remarkable growth over the past nine and a half years, their gains were relatively more modest, as

both the S&P 500 and the Dow Jones Industrial Average added circa 16 per cent per annum since 9th March 2009, whilst the surge in the tech-heavy Nasdaq 100 translates into an increase of 23 per cent per annum.

Amid this background, however, it is also worth highlighting that as such, a trillion-dollar market valuation may not mean anything to the investment merits of any company. For instance, the potential flotation of Saudi Aramco could well value the Saudi Arabian national petroleum and gas company at over USD1 trillion if this were to happen. Although the level of capital growth registered by Apple’s equity in the past few years is indeed extraordinary, what is more important is the identification of the traits that made Apple so unique and valuable today.

When Apple was founded in April 1976, the technology sector already had its undisputed leaders.

Just as today we have the group of companies that are collectively referred to by the acronym FAANG (namely Facebook, Apple, Amazon, Netflix, and Google), at the time, Microsoft, IBM, Xerox, Commodore and Atari were regarded as the dominating tech giants. However, Apple’s founders, namely Steve Jobs, Steve Wozniak and Ronald Wayne, believed that they could offer something intrinsically different, innovative, creative and desirable, while still generating lucrative margins. The Apple I and Apple II personal computers were introduced within a span of two years between 1976 and 1977, followed by the overpriced and underpowered Apple Lisa in early 1983, which came with floppy drives and a graphical user interface, but was not well received by the market.

As the world was entering the age of the ‘PC revolution’, Steve Jobs persisted in his belief that despite the disappointing sales of Apple Lisa, the company had further inroads to make. For this reason, in April 1983, he engaged PepsiCo President John Sculley as CEO of Apple in order to improve the company’s mass-marketability. Under his reign, Apple went from strength to strength for the rest of the decade. This achievement came on the back of the popularity of the various Macintosh products, despite an internal rift between Mr Jobs and the rest of the company’s Board of Directors, including the CEO, which ultimately forced him to leave Apple in September 1985.

The 1990s were particularly challenging for Apple as the competi-

tive landscape became much tougher. Dell, HP and Epson took on substantial market share on the back of their respective edge on product pricing, compared to Apple. Meanwhile, Apple launched PowerBook in October 1991 which was one of the first portable computers to resemble today’s laptop.

However, subsequent products such as Newton (a personal digital assistant) and Pippin (a gaming console) simply did not take off.

Multiple product offerings had the opposite effect, confusing customers rather than generating profitable sales, which triggered the replacement of John Sculley as CEO in June 1993.

As Apple’s profitability continued to suffer, in December 1996 the company decided to acquire NeXT – a company owned by Steve

Jobs. This move proved to be decisive for Apple’s future prospects.

However, despite having Mr Jobs back within Apple, the company had a more pressing challenge – that of averting bankruptcy. This was only prevented through a lifeline investment of USD150 million

by Microsoft in Apple, which took place in August 1997. As Mr Jobs became CEO in September 1997, he drove the company towards simplifying its product line-up and also rolled out a strategy suitable for the ‘Internet age’. The latter also included the sale of Apple products online.

In May 1998, Apple unveiled its first ‘i’ product – the iMac. This revolutionary internet-connected desktop computer positioned the company as a true consumer technology giant, paving the way for the

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introduction of several other generational products – namely the iBook (July 1999), the iPod (October 2001), the iTunes Music Store (April 2003), the iPhone (January 2007) and the iPad (January 2010). In the interim, and despite his various health complications, Steve Jobs strengthened Apple’s status by opening several retail stores across the world, and concluding a number of key acquisitions of software companies.

In June 2011, Steve Jobs made his last product announcement – the iCloud – which essentially allowed various Apple products to sync with each other. It welcomed the new age of ‘the Internet of Things’, positioning Apple more towards technology-related services and artificial intelligence, rather than mainly manufacturing hardware. The company also had to adapt to the demise of its longtime leader and mentor Steve Jobs on 5th October 2011, as well as repair the severe reputational damage done by the embarrassing launch of Apple Maps that forced its new CEO Tim Cook to issue a letter of apology to customers in September 2012.

Apple also faced other considerable challenges in recent years, mainly growing competition from the likes of Samsung, Huawei and HTC in the all-important mobile

SOURCE: THOMSON REUTERS EIKON. NET PROFIT FOR 2018 REPRESENTS CONSENSUS ESTIMATE.

segment, as well as from Google and Amazon in the field of artificial intelligence. Furthermore, on various occasions, Apple had to deal with major supply-chain disruptions (the company assembles most of its products in China), implement an overhaul of its stores globally, and come out with post-Jobs innovations like Apple Pay (September 2014), the Apple Watch (April 2015) and Apple Music (June 2015).

Although today’s USD1 trillion market valuation is indeed extraordinary, more importantly,

one has to analyse the valuation multiples. One of the most commonly-used valuation multiples in finance is the price-to-earnings (P/E) ratio. This compares a company’s share price with the profitability generated by every share in issue (namely the earnings per share). In this respect, even if Apple’s current P/E ratio of around 19 times is not low, it is below that of the Nasdaq 100 at 25 times and of the next three largest US tech giants by market capitalisation – namely Amazon (over 170 times), Alphabet (Google’s parent com-

pany with a P/E of 33 times) and Microsoft (28 times).

Apple’s historic achievement is a reflection of its unique characteristics and revolutionary concepts.

The company’s profitability is indeed unparalleled (Apple posted a net profit of over USD48 billion in 2017, followed by Berkshire Hathaway Inc. at nearly USD45 billion) and it has an extraordinary cashrich balance sheet (the company’s cash pile stood at almost USD71 billion as at 30th June 2018).

Moreover, the company has a distinctive approach to doing business that is highly disciplined, its blockbuster products and services are upheld by the world’s most recognisable logo, whilst its customers are endlessly loyal.

Although nobody can predict what lies ahead for Apple, it is pretty safe to say today that it is likely that the company will continue dominating headlines for years to come.

While the USD1 trillion market valuation may be considered to be merely an important milestone, Apple is, most importantly, an outstanding case study in value creation for all companies to mirror.

Josef Cutajar is a Research Analyst at Rizzo, Farrugia & Co (Stockbrokers) Limited.

Rizzo, Farrugia & Co. (Stockbrokers) Ltd, “Rizzo Farrugia”, is a member of the Malta Stock Exchange and licensed by the Malta Financial Services Authority. This report has been prepared in accordance with legal requirements. It has not been disclosed to the company/s herein mentioned before its publication. It is based on public information only and is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The author and other relevant persons may not trade in the securities to which this report relates (other than executing unsolicited client orders) until such time as the recipients of this report have had a reasonable opportunity to act thereon. Rizzo Farrugia, its directors, the author of this report, other employees or Rizzo Farrugia on behalf of its clients, have holdings in the securities herein mentioned and may at any time make purchases and/or sales in them as principal or agent, and may also have other business relationships with the company/s. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Neither Rizzo Farrugia, nor any of its directors or employees accept any liability for any loss or damage arising out of the use of all or any part thereof and no representation or warranty is provided in respect of the reliability of the information contained in this report. © 2018 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved

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Ozone & Grenke launch a unique leasing model aimed at the hospitality industry Ozone is offering hotels in Malta a comprehensive and accessible communications package featuring all the perks that one would expect, and a little more. The package includes smart hospitality TVs, state-ofthe-art telephone systems, high-speed Internet access, Wi-Fi analytics, and e-marketing tools.

The communications package offered

by Ozone for the hospitality market combines seamless technology with an innovative pricing scheme. In hotels, communication tools are held up to high scrutiny. Guests, after all, are there for a restful experience, and the last thing that anyone wants when relaxing is to face tech problems when checking out the in-room entertainment.

To match the advanced functionality of the technology found in its hospitality package, Ozone has gone a step further by developing an innovative per-room daily rate for its services. By partnering up with Grenke, this unique payment scheme allows hoteliers to avoid an initial burdensome investment. Instead, they have the option to pay for all the services, equipment, and installation fees through a daily rate starting from €1.50 per room.

With one cost-effective daily rate, totalled by the number of rooms that a hotel provides, they will benefit from the complete hospitality package offered by Ozone. This includes Samsung Hospitality TVs for every room, Hotel TV info page and promotion features, IP headend and middleware, state-of-the-art PBX and IP phones in all guest rooms and administration areas, high-speed broadband Internet, Wi-Fi access throughout the hotel, Wi-Fi analytics and e-marketing tools, unlimited calls to local fixed and mobile numbers, and lowcost international telephony.

Although the tech is new, the professionals at Ozone have been entrusted with both large and smaller projects in Malta and Gozo for over five years. The highlyexperienced Ozone team has developed a keen understanding of the needs and sensibilities of hoteliers, as they strive to balance luxury with cost and turn complex projects into smart and simple solutions for hoteliers.

If you would like to learn more about what the state-of-the-art and cost-effective hospitality services at Ozone can do for your business, you can reach them on 2010 1000 or hospitality@ozone.com.mt

OZONE CHIEF COMMERCIAL OFFICER ADRIAN SILLATO AND GRENKE MALTA SALES MANAGER MASSIMO PAPPALARDO

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e fight against food waste – prevent and reduce When it comes to food waste, the numbers in Malta are still staggering. Almost six million kilos of food are thrown away every single year. That’s a huge amount of lost edible food and wasted money.

Around 88 million tonnes of food are wasted in the EU every year – the equivalent of 173 kilos per person. Given the amount of natural resources that go into producing and distributing food, there’s no justification for this kind of waste which is a strain on our landfill and also contributes to climate change.

Food industry managers, chefs, and the hospitality industry at large can play an active part in reducing food waste. All that it takes is some thorough thinking, proper planning and a creative and innovative mindset. Here are some easy to implement suggestions that would work in any hotel, restaurant or other entertainment and hospitality outlet.

First off, appoint a food waste champion within your organisation who will log your waste in order to fully understand where the waste occurs and how to reduce it. From there, it will be easier to manage waste more efficiently, and ensure that all waste streams to dispose are put to good use.

Look into the possibility of donating extra food and liaise with charitable organisations such as the food bank in Valletta which is always looking to replenish its shelves.

Rethink your menu and analyse what generates the most waste and how to reduce that, either by reducing portion sizes, or even by replacing items in the menu with more cost-effective recipes.

Keep a close eye on perishables and enlist the chef’s expertise to lengthen their shelf life. Newer cooking methods such as dehydrating food or simply freezing it will do that quite easily. Also, storage areas can be planned in a way that perishable goods are more visible; that way there’s less chance of waste.

Knowing what you’ve got in stock and what’s almost expired is an excellent way

to reduce waste. Shopping for good inventory software will help you track what’s consumed on a daily basis and what items often sit before being used.

Putting together a composting programme is one of the quickest ways to reduce your restaurant waste. Find out how to separate everything into the proper categories and get the right containers to compost what’s biodegradable.

The Don’t Waste Waste national campaign has been raising awareness on the need for everyone to do their bit in the fight against waste. Useful tips and more information can be found on www.dontwastewaste.gov.mt

“Food industry managers, chefs, and the hospitality industry at large can play an active part in reducing food waste.

All that it takes is some thorough thinking, proper planning and a creative and innovative mindset.”

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e complete ERP solution for a multi-brand distribution business Direct Store Delivery (DSD) refers to an essential distribution method that includes route and truck load planning, route sales and delivery, merchandising, mobile intelligence, inventory control, and route accounting.

DSD is essential for companies which distribute Fast Moving Consumer Goods (FMCG) to other businesses.

The key to growth and sustainability for distributors is to provide better customer satisfaction through speedy and effective route management, without increasing costs. They need to optimise resources, improve their invoice-to-cash cycle, and at the same time reduce operating costs per route.

The optimal Enterprise Resource Planning (ERP) solution can help companies reduce errors, payment disputes, and administrative costs.

Expected benefits include increased revenue, larger orders, faster and more accurate delivery, accelerated cash flow, smarter inventory management, improved customer loyalty, better performing sales and delivery reps, and reduced administrative costs.

MANAGE THE QUOTE-TO-CASH CYCLE WITH A MODERN ERP SYSTEM Distributors of any size face many of the same challenges, including rapidly changing customer demands, complex product inventories, and fluctuations in the supply chain.

To overcome these issues, forward-looking companies are implementing a single ERP solution that integrates and automates the entire quote-to-cash cycle.

A modern ERP system for distributors provides tools to help manage sales ordering, pricing, shipping, sourcing,

and billing – letting you streamline your business processes so all your information is in one secure location. With accurate, real-time information available, situations requiring attention can be identified early and addressed quickly.

DRIVE COMPETITIVE ADVANTAGE WITH A FLEXIBLE FIELD SALES PLATFORM Integrate your field sales, distribution logistics, inventory management, invoicing, and payment collection. Enable your sales reps with access to relevant information quickly and efficiently – eliminate the errors that come with pen-and-paper order entry or legacy software.

Provide your field staff with mobile access to all customer, product, and sales information while on the road.

Allow your field reps to use any Android or iOS device – including offline functionality – so that they can access data and information from any location.

Drive even more sales by providing your sales reps with account-specific pricing for individual customers, based on what you know about customer preferences and order history. You can also give discounts and cross-sell and upsell promotions for different customers. Even when making a delivery, your field reps will be prepared to make a sale from anywhere, at any time.

For more information on how Computime Software can help you optimise your distribution operation, increase customer satisfaction, and unearth new sales opportunities for route staff, visit www.computime software.com/acumatica-erp or email info@computime software.com

HSBC Premier re-launched with attractive new benefits HSBC Malta has re-launched HSBC Premier, introducing new entry criteria for customers wishing to join. Customers with a salary of €50,000 net which is directly credited into the HSBC Premier account will be eligible to benefit from the entire suite of added value services offered by the bank. The new threshold for joint-income is €75,000 net.

HSBC Premier is HSBC Malta’s most prestigious account type and brings a number of benefits, including free Contactless World Mastercard, exclusive loyalty rewards, travel insurance, free worldwide cash withdrawal using HSBC ATMs, free supplementary cards, discount on the Malta International Airport’s La Valette Lounge, dedicated 24-hour customer service centre, and more.

“Our customers live in a world characterised by added responsibilities and dreams to fulfil, and HSBC Premier is geared at helping manage the unexpected and ensuring the prosperity of our customers’ families and their future,” said Dan Robinson, HSBC Malta’s Head of Retail Banking and Wealth Management.

“Over the last five years, salaries in Malta have been growing at a rate of 5 per cent per annum. If the economy continues to sustain this, more people will experience personal economic growth. HSBC Premier is well-positioned to provide solutions to customers’ increased lifestyle expectations and financial management needs.”

More details about HSBC Premier benefits, terms and conditions, and up-to-date information can be found on the dedicated website www.hsbc.com.mt/1/2/mt/premier or by contacting the bank on 2148 9100.

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Locally manufactured LED sports lighting Lighting design plays a key role in the functionality of sporting facilities.

As well as providing illumination for players, officials and spectators, sports lighting must also fulfil various characteristics to optimise the quality of indoor and outdoor sports and recreation spaces.

LED lighting is ideal for sports applications due to high light outputto-power ratios, long lifetime and low maintenance requirements. Altern Ltd, a company based in Malta which specialises in sustainable energy, has been working on the development of LED sports lighting through INNOVLED, a project funded by MCST through the FUSION: R&I Technology Development Programme.

The aim of the project was to develop LED floodlights specifically designed for sports applications. In order to better understand the required characteristics of the product, Altern worked with Sport Malta and analysed a number of local sports facilities to gain an insight into the lighting needs, as well as the current challenges faced.

Over the past months, Altern designed, built and installed prototypes at selected sports facilities and carried out in-depth monitoring to ensure that INNOVLED luminaires meet all required characteristics and provide high quality lighting while reducing energy consumption. It brought in its extensive expertise and experience within the sustainability and lighting industry, and today offers a range of LED lights that have been made in Malta.

Altern offers complete custom design and manufacturing of LED luminaires for different applications, with in-house expertise on digital lighting design and lighting manufacturing. For further information visit www.altern.com.mt, email info@altern.com.mt, or call 2099 6465.

FIMBank announces halfyearly profit of USD6.1 million The FIMBank Group has announced an after-tax profit of USD6.1 million for the first six months of 2018, an increase of 47 per cent on the USD4.1 million registered during the same period in 2017. FIMBank’s interim financial statements for 2018 were approved at a meeting of its Board of Directors on 14th August 2018.

Net operating results more than tripled, from USD2.7 million to USD9.8 million, improving revenues by USD4.4 million and reducing costs by USD2.7 million.

FIMBank’s equity at 30th June stood at USD274 million, with the CET1 ratio at 16.7 per cent. At the end of the reporting period, Total Consolidated Assets stood at USD1.95 billion, an increase of 19 percent over the USD1.64 billion reported at end2017, while Total Consolidated Liabilities

stood at USD1.67 billion, or 14 percent more than the USD1.47 billion reported at end 2017.

“The Group has been successful in turning its business around, generating profitability and providing a platform for growth over the last twelve quarters,” said CEO Murali Subramanian. Chairman Dr John C. Grech added that, “FIMBank’s positive performance, which has now extended into its third year, is the direct consequence of a strategic shift in focus successfully tuned to changing market conditions.”

FIMBank’s Board of Directors will not be recommending an interim dividend for the period under review.

For more information about FIMBank plc, visit www.fimbank.com

Quality products for commercial catering needs OK Hospitality provides quality products for complete commercial catering needs in Malta, distributing them directly to individuals and local businesses. The items range from the smallest items such as textiles, cutlery and glassware, to larger and more complex items, including indoor and outdoor furniture, pergolas, awnings, gazebos and parasols. The company forms part of OK Group, a leading Maltese importer and retailer which was established in 1976.

“We deliver in a timely manner and ensure efficient service,” said Deputy Head Roderick Spiteri. “Our goal is to achieve customer satisfaction through excellence in quality and design.”

OK Hospitality represents a number of highly-respected international commercial catering brands, including Bormioli Rocco SPA, Gaber SRL, and Balliu Export S.A, amongst many others. These brands are synonymous with style, practicality and comfort, at affordable prices.

The company’s experienced staff, extensive range of products in stock, and access to suppliers allows it to offer best value to its clients at competitive prices. “Our excellent service, innovation and foresight have kept OK Hospitality as a reputable provider in hotel and restaurant supplies for many years, and we plan to maintain this position for many more,” said Mr Spiteri.

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International estate agent Cluttons announces expansion to Malta International real estate agent Cluttons has announced that it will be expanding its network to Malta, to offer its clients access to the booming Maltese property market. Cluttons has a head office in the UK, and provides a range of property services, including residential sales and leasing, commercial agency, asset management, valuation, corporate services, telecoms and consultancy.

In Malta, Cluttons has chosen Dhalia Real Estate Services as their local partner. Dhalia has been chosen for their expertise in the local market and decades of experience. As an associated partner, Dhalia will offer Cluttons’ clients direct local knowledge of the Maltese property market, whether they are buying for holiday, retirement, investment or residency purposes.

Cluttons has a network of offices in London and overseas, including Barbados, Marbella, Barcelona, Lisbon, and the French Alps. Demand for property in Malta is increasing from clients in these locations, and especially from the UK. “We constantly strive to offer our clients the latest real estate investment opportunities,” said Joanna Leverett, head of international residential at Cluttons. “Malta is currently one of the fastest-growing property markets in the world and we look forward to offering our clients access to this important market and all the opportunities it has to offer, in association with our partners at Dhalia.”

Equiom launches new private office service International professional services provider Equiom has announced the launch of a new premium service for private and corporate clients. Equiom Private Office is a dedicated team of senior practitioners specialising in areas including wealth structuring and succession planning.

“Equiom has been serving multigenerational families and corporations for decades and we have seen some dramatic changes to client behaviours over the years,” Richard Tribe, Head of Equiom Private Office, explained. “As well as the continuing focus on wealth protection for future generations, we have begun to see more immediate, material desires. This, together with the dispersion of wealthy families located across the globe, creates the need for family offices with a true multi-jurisdictional reach.”

“According to Knight Frank’s Global Wealth Report, the UK and the US are still home to many of the world’s wealthy. The United States has the highest number of ultrahigh-net-worth (UHNW) individuals with Europe second, followed closely by Asia. However, more and more countries have adopted the materialistic way of life and the world is more liberalised today, with further wealth being generated in countries such as China and India. More growth is predicted in the UHNW market, which means there is greater need for service providers to cater to the discerning client with global wealth interests.

For families, individuals and corporates, every circumstance is unique, resulting in a need for more complex wealth structuring with an increasingly global reach.”

“That is why we developed Equiom Private Office – to provide a bespoke, premium service for private and corporate clients, commit-

RICHARD TRIBE, HEAD OF EQUIOM PRIVATE OFFICE

ted to meeting the needs of UHNWIs, wealthy families and international corporations. It was founded on the three pillars of wealth management that our clients value asset protection, succession planning and confidentiality.”

“This is a very interesting time for Europe,” added Chris Cini, Legal Director at Equiom Malta and member of the Private Office team.

“With the onset of Brexit, more individuals will be seeking out opportunities in European jurisdictions in order to maintain links with the region. Malta in particular, has always been a friendly jurisdiction for the registration of luxury assets such as yachts and aircraft. I think that with Equiom Private Office, our ability to cater to each individual situation and client will set us apart from the rest.”

For more information, visit www.equiomgroup.com/privateoffice Equiom (Malta) Limited is authorised to act as a trustee and fiduciary services provider by the Malta Financial Services Authority.