INTERVIEW
Issue 66
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December 15, 2016
Distributed with Times of Malta
MEA director general Joe Farrugia argues for a structured approach to tackling wage inequalities, warning that raising the minimum wage is an emotional reaction that will have serious consequences. see pages 10 and 11 >
NEWS Malta ranked last in the EU for efficiency of its insolvency procedures, but Finance Minister Edward Scicluna believes that the new law will be in place by the first quarter of the year. see page 3 >
MEA accuses politicians of populism Vanessa Macdonald The Malta Employers’ Association director general Joe Farrugia has accused politicians of brazen populism, using the minimum wage as a way to gain voter appeal. “I believe that the main concern of our politicians is not the welfare of the poor at all: this is a vote-grabbing exercise and they are bidding for votes. If you were really faced with a problem then you would go about it in a scientific manner. You would quantify the extent of the problem and you would try to localise the vulnerable so you can find out how best to help them – rather than risk destablising the entire labour market. Our politicians are just shooting from the hip,” he said. Mr Farrugia was also adamant that raising the minimum wage was not the way to solve wage inequalities but that rather fiscal measures were the key. However, on this point, he was also less than complimentary about successive governments’ record: “Let me remind you that in Malta both parties agreed to make income tax less progressive. If you really want to address income inequalities, you do not make income tax less progressive as that is a contradiction,” he said.
He explained that the reduction in energy rates, ironically enough, could have affected the vulnerable negatively. “When the energy rates were reduced in 2013, many people on low incomes already benefited from subsidies. But with the reduction, the retail price index registered very low inflation and consequently the cost-of-living adjustment in the past few years has been very low – not only because of energy rates but also because internationally there was a deflation. We had COLA increases of just 58 cents and €1.16, in the past two years,” he said. The MEA has been accused of trying to protect its members’ interests by keeping the minimum wage as is, but Mr Farrugia was indignant at the suggestion: “Low wages mean low purchasing power and low purchasing power is bad for business. No one should get the impression that low wages are good news for employers. In many cases, they are not. “For example, employers are very concerned with the purchasing power of pensioners as we are going to have a growing segment of people out on retirement who have less money to spend, and this will affect domestic demand. Although many companies rely on exports and this would not be an issue for them, we need to
be aware that many companies’ livelihood depends on the purchasing power of the domestic market.” Economist Philip von Brockdorff in an opinion piece today expressed concern that the issue of the minimum wage might not be dealt with through the normal channels of social dialogue. This is an aspect that also worries Mr Farrugia, although the matter is officially being dealt with by the Malta Council for Economic and Social Development, which appointed two economists to come up with reports and recommendations. The economists – Lino Briguglio and Gordon Cordina – presented their reports yesterday morning to the MCESD members who gave only brief inconclusive reactions to the waiting media. The government is waiting for the outcome of the discussions at MCESD and clearly still hoping for a consensus, with the Prime Minister authorising Louis Grech to meet the social partners individually. But Mr Farrugia is worried that the issue has been confused, saying in an interview that “a number of things are being bundled and jumbled together as it is not clear what the real issues are. Raising the minimum wage is too blunt a tool. A blunt, populist tool.” See pages 10, 11 and 15.
NEWS e managing director of the Libya Africa Investment Portfolio, Ahmed Kashadah, is frustrated by the lack of political progress in Libya and called on his co-nationals to take a stand against “the mess”. see page 5 >
OPINION Economist Philip von Brockdorff worries that raising the minimum wage without going through the normal channels of social dialogue could have disturbing implications. see page 15 >
e Business OBSERVER
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December 15, 2016
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NEWS
Insolvency rules in Malta gather steam e European Commission launched its proposals for changes to insolvency law a few weeks ago, noting that Malta ranked last out of all the member states when it came to the efficiency of its procedures. e Finance Minister EDWARD SCICLUNA said the government had pre-empted the work of the Commission and decided to bolster the island’s insolvency legislative framework. What is Malta proposing as a timetable for these changes? We have been working on the concept of introduction of a second chance and on the improvement of our insolvency legislation since late last year. During this year, a working group was set up to come up with a draft Bill to introduce amendments to the existing legislation. Following consultation with representatives of all the stakeholders involved, a Bill was presented in Parliament this October. The debate on this Bill is scheduled for next month and it is envisaged that Parliament will enact the Bill by the first quarter of next year. What impact will these changes have and how long will it take for them to be felt? The amendments to the existing Companies Act will give such companies what is being termed as a “second chance” for them to continue as a viable going concern, and endeavour to avoid such companies having to proceed with the winding up procedure. The benefits of these amendments are: • Business which would otherwise have collapsed might have a successful second chance; • Jobs could be saved; • Complicated winding-up/liquidation court procedures may be avoided; • Creditors could obtain better and/or quicker recovery terms; • Banks could avoid accumulation of
non-performing-loans on their balance sheet. It is hoped that the positive impact of these changes will be felt in the short term period after their introduction. Does Malta have the resources to administer these changes, in terms of IT, qualified insolvency practitioners etc.? The Malta Financial Services Authority’s Official Receiver will be drawing up a list of experienced persons to act as special controllers. The list will be made available to the Registrar of Courts for the courts to appoint the appropriate special controller depending on the business sector of the company to undergo the recovery procedure. There are courses covering topics related to the role of insolvency practitioners. The special controllers accepted by the Malta Financial Services Authority will be given all the necessary training to make sure that they will have the required skills to perform their new role. The proposals suggest that new financing will be protected for rescued companies. How would this be done? Will it be imposed on banks? As part of a company recovery procedure, the refinancing of the company could be part of the solution to make it a viable going concern. In such a situation, the courts could rank any such new financing as a priority in case of an eventual winding up of the company.
“As part of a company recovery procedure, the refinancing of the company could be part of the solution to make it a viable going concern”
e Business OBSERVER
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December 15, 2016
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NEWS
Ready for the rebuilding of Libya A seminar on Libya held in Malta last week degenerated into a heated exchange on the way forward, with Libyans in the panel and the audience clashing over the ability to make cross-border payments, salaries paid by the public sector, and restrictions on foreign investment. But the managing director of the Libya Africa Investment Portfolio, Ahmed Kashadah, raised most eyebrows when he gave a frank opinion of the solution if the country is to find prosperity again: “The problem is that we Libyans keep asking for help but it will not come if we just sit here and wait. We need to stand up against this mess,” he said, acknowledging that those who did stand up were paying the price for it. “It is tough, dangerous work but the movement is gaining strength.” Speaking later to The Business Observer, Mr Kashadah was, if anything, even more honest, saying that since Libya became independent in 1951, it was poor and struggling, “possibly in a worse position than it is now”. “History has shown us that the need to move on was what drove the tribes and cities to unite. There will be no country unless we sit and talk. There is no future for anyone unless we try to solve this problem. This is the main motivator for all the parties to get together…” he said. The seminar was the second in a series put into motion by the Libyan-Maltese Chamber of Commerce, which is seeking to leverage Malta’s unique position as a go-between for international companies seeking opportunities in Libya. It first brought down the LibyanGerman Business Council a few weeks ago, and subsequently the Libyan-British Business Council (LBBC), headed by the former British High Commissioner to Malta Vincent Fean, who subsequently served in Libya as ambassador for four years. The LAIP, one of the organisers of the conference, was established in 2006 and is owned by the Libyan Investment Authority. The LBBC has 70 members, 26 of whom came to Malta for the networking forum – companies which appreciate the fluidity of the situation but also realise that with high risk comes high returns. Sir Vincent said with the fluency of an experienced diplomat: “Libya needs what we can deliver. We stand by our friends when they need us.” However, the rewards are bilateral. Libyan journalist-in-exile Sami Zaptia noted that only three of the 18 hospitals in Tripoli are functioning. And a conference in London next month is expected to highlight the billions that need to be spent to rebuild the country’s infrastructure, ravaged by years of fighting.
PIPELINES AT THE ZUEITINA OIL TERMINAL IN ZUEITINA, WEST OF BENGHAZI, LIBYA. PHOTO: ESAM OMRAN AL-FETORI/REUTERS
Panel member Ehabi Bukhdair, the managing director of a leading group of companies in North Africa, was optimistic, admitting that there was a shortage of foreign currency which made it hard to buy foreign goods, but that “Libya is open and there are many business opportunities”. “Many operators pulled out but that created space for newcomers who want to penetrate the market,” he said. As Mr Kashadah said, there are security risks but companies would be able to “hit the ground running”. “What you do not want is to come into a market where everyone else is. Everyone has their hearts and minds in the right place and they are here to identify the right partners, the right sectors, the right approach. This is when you have to start the work: when you can afford to do a proper analysis. Usually, we don’t have enough time to make the right decisions.” There was considerable debate on the role of the private sector, particularly since public
sector salaries increased dramatically after 2011, luring thousands away from the private sector. Unfortunately, these jobs were quickly seen as a generous ‘trough’, and Mr Kashadah said that action had to be taken, with an 82 per cent reduction in costs after a campaign started just over a year ago to ensure people put in their hours – a campaign which generated a violent backlash of threats and strikes. “Public entities are struggling because of the political instability. Many entities within the public sector cannot pay salaries because they were not planned well, and cannot make any money. The State is not helping these companies any more. “The private sector has so far been doing an amazing job in such difficult times, ensuring that the rate of unemployment is driven down. It is also making sure that Libyans can find products and services.” The aim of the seminar was to highlight Malta’s role through its long-established ties with Libya which would benefit foreign investors. Mr Kashadah added that many
“e private sector has so far been doing an amazing job in such difficult times, ensuring that the rate of unemployment is driven down”
Libyan companies found Malta to be an effective base for operations in Libya, “just an hour from Tripoli – even closer than Tunis”. But in spite of all the speeches about collaboration and future investment, there are still major headaches. Pierre Mifsud, of local law firm EMD, said one of these was cross-border financial transactions. “We need a financial institution in Malta – not necessarily a bank – operating under the EU regime which would basically have people knowledgeable on the way business is done, to bridge the gap between practices in Europe and those in North Africa. An institution like that would bring businessmen in both regions closer together, he told The Business Observer. “This would not necessarily be Islamic finance – although that could be part of it. At this stage, I would limit it to an institution which seeks to facilitate business transactions, which knows the parties and can carry out due diligence on them, having the trust of both sides of transactions. That is the missing link at present. It is very easy to get lost in translation. “Banks nowadays are very restricted so possibly another type of financial institution would be more amendable to the needs of the business partners. I think it has to be a joint effort: the policies have to be set and the regulator has to tweak legislation where necessary. It needs to be an initiative by public institutions but incorporating the private sector,” he said.
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e Business OBSERVER
| December 15, 2016
NEWS
Capital markets priority during Maltese presidency Developing the capital markets of the EU would be a priority during Malta’s presidency of the EU between January and June – but discussions on Brexit were bound to complicate this process, Finance Minister Edward Scicluna said. Speaking at the launch of Chetcuti Cauchi Advocates’ new corporate advisory arm – Prospecta – he said that he was getting positive feedback from his ministerial counterparts and Commissioners that Malta could deliver on what he described as “an enormous workload”. He expressed confidence that two major directives on securitisation and prospectuses would be closed under the Slovakian presidency before the end of the year. “Compromise will be the key,” he said, adding that this would also apply when Malta has to try to nudge along controversial issues on taxation and the relaunched Common Consolidated Corporate Tax Base. Another tricky project will be the Banking Union, with controversy raging over risk reduction and risk sharing, with Germany lobbying for overall risk to be reduced before responsibility starts to be shouldered. Prof. Scicluna also stressed that other issues had to be tackled, such as venture capital and social entrepreneurship. He was given a handover on the current state of play during an extended Ecofin meeting some days ago. Chetcuti Cauchi launched Prospecta Corporate Finance after the firm was approved as a corporate advisor for the Malta Stock Exchange’s Prospects, aimed at enabling small to medium enterprises seeking to raise between €1 million and €5 million in risk capital by issuing bonds, new shares, or existing
shares to investors beyond their own family and business partners. Maria Chetcuti Cauchi, chairwoman of Chetcuti Cauchi and head of the capital markets team, said that SMEs’ success would depend on having a sound business plan, which would be facilitated by their corporate adviser: “A high level of corporate governance will be instilled in such companies.”
“Two major directives on securitisation and prospectuses would be closed under the Slovakian presidency before the end of the year”
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e Business OBSERVER
| December 15, 2016
INDUSTRY FOCUS
Desperately seeking Susan(s) Unemployment in October was just 3,166 – yet another drop from the previous month. With the labour market getting tighter and demand for skilled workers drawing in foreigners, what impact is all this having on the market. e Business Observer spoke to a recruitment company and to a real estate agency. Konnekt
Hazel Refalo Head of Operations In recent years there has been a gradual shift in the state of Malta’s human resources. In July 2016, Malta ranked as having the second lowest unemployment rate among EU countries. This is mostly positive for a country’s economy. Despite there potentially being a slight increase in unemployment rate, in certain sectors such as financial services, legal, IT, healthcare and engineering, demand, for the most part, still exceeds supply of skills. We are also experiencing increased candidate attraction as a country, and many international candidates are looking at Malta as a relocation option. The latter helps to address the lack of technical skills or
qualifications that exist locally as required in the aforementioned industries. Foreign workers’ positive contribution to the local GDP has been on the increase since 2010. Ultimately, this means that for employers, the key to attracting the right candidates still remains good employee branding, engagement and retention strategies. It also means that employers have to adapt to the job seeker’s motivations when searching for persons to join their company.
RE/MAX Malta
Jeff Buttigieg Chief operating officer Hiring the right human resources is always a difficult but not because of the lack of available people on the market. One
hundred per cent of our associates are selfemployed and are business people in their own right. We are very specific about the people we recruit as we look for individuals with the right energy, stamina and those that follow our value set. Thankfully, over the years our reputation has continued to grow while more candidates become available from all walks of life. The fact that we provide complete support in terms of marketing, training and technology, we recruit agents with secondary and tertiary education while we also recruit agents from within the industry.
As the industry is becoming more professional we are seeing an increase from those that have a tertiary education. At RE/MAX we consider our agents as our own customers and so we support them with education, marketing and technology as well as mentorship. This rubs off on how they treat their customers and so on and so forth. Our main objective is creating a foundation for our agents to become successful and this comes with providing the best management to mentor the agents as well as the tools for them to be most productive.
e Business OBSERVER
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December 15, 2016
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APPOINTMENTS
New CEO for accountants The Malta Institute of Accountants has appointed Maria Cauchi Delia – its financial controller – as its new chief executive officer. Prior to her role within the MIA, she held senior positions with APS Consult Ltd (a subsidiary of APS bank), the Medicines Authority, the National Audit Office and at Ernst & Young, both in Malta and Italy. “With these credentials and a wealth of experience in project management, consultancy and financial audits, she was the perfect choice to take the helm of this influential organisation,” the MIA said in a statement. Her wish is to focus on repositioning and rebranding the MIA, with engagement and relationship building with new stakeholders at the forefront of her vision. She said that the accountancy profession was going through an exciting time, where being proficient in the financial aspects was definitely not enough to succeed: “Having a multidisciplinary approach in a complex, ever-changing work environment is essential. To remain effective and competitive on the market, clients’ demands need to be anticipated. True professionals have to be proficient in managing risk assessment, tax and legal matters, human resources and information management,’’ she said.
Chief commercial officer leaving Air Malta Ursula Silling, Air Malta’s chief commercial officer, is leaving the airline, having spent 18 months trying to transform its commercial development. She joined Air Malta in February 2015 for a definite period until March 2016 but her contract was extended to ensure the realisation of a number of key projects. The airline said that Ms Silling would continue supporting the airline in the interim period and with future projects. During her tenure, she spearheaded the digital transformation of the airline and directed customer-focused investments in new technology. She was also responsible for tweaking the route network to reduce costs. The process to recruit a new chief commercial officer has started, with acting CEO Joseph Galea overseeing the running of the Commercial Division in the interim period.
Sammut back to GO role Christian Sammut will be returning to a chief officer post at GO, in charge of business, as from January 1. He will be retaining his current role as CEO of BMIT Ltd, which is a fully owned subsidiary within the GO Group. Ing. Sammut has more than 25 years of industry experience and joined GO in 2001, working in different areas within the group in executive management positions. Over the past years, Ing. Sammut played a crucial role in growing the data centre and cloud business.
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e Business OBSERVER
| December 15, 2016
INTERVIEW
Defining the living wage e Malta Employers’ Association is aghast at the prospect of an increase in the minimum wage, fearing a plethora of consequences, some of them possibly unintended. But it appreciates the rising wage inequalities which prompted the discussion in the first place. Director general JOE FARRUGIA guided Vanessa Macdonald through some of the issues. How many people are we talking about? The discussion was prompted in part by a Caritas report on poverty last May which found that a family consisting of two parents and two children needed €11,446 a year to live a decently life (€9,197 for a single parent with two children). However, families surviving on one minimum wage (who also receive inwork benefits and other allowances) would only get €9,353. But how many actually earn that little? The MEA estimates that the number of full-timers earning a minimum wage is between 3,000 and 4,000. However, they believe that many of those actually have a higher take-home pay, such as sales people who get commission on sales, or security workers who get a guaranteed number of overtime hours. The MEA believes that the starting point for any policy decisions should be data: “We all know that it is difficult to make ends meet – practically impossible – on a minimum wage. But on the other hand, if you have both parents working – and in the unlikely chance that they are both on the minimum wage – then they would be able to afford to live somewhat comfortably,” he said, adding that the discussion had been prompted by more awareness of people living at risk of poverty – rather than specifically those on minimum wage. “We are also dealing with pensioners, a growing segment, many of whom earn even less than the minimum wage, and are therefore very much at risk of poverty.” Which sectors employ workers on minimum wage – and why? The MEA believes that more than 95 per cent of employers in Malta do not have anyone on the minimum wage. So who are the five per cent who do? The association believes that many are involved in basic services in the cleaning, security and catering sectors. “There is an explanation for this. If companies win contracts in the private sector for a rate of €5-7 an hour then they cannot pay more than €4.20 an hour as once you deduct
One in every six employees in the EU is considered to be a low-wage earner, i.e. with an income which is two-thirds or less than the national median. In Malta, 15.1 per cent are considered to be low-wage earners, with the low-wage threshold considered to be €5.70 an hour – at €228 a week, considerably more than the €168 minimum wage. Mr Farrugia explained that if you separate out the top economies in Europe, after France, Malta had the highest minimum wage in the Mediterranean. This figure excludes bonuses, which would bring the island on par with Slovenia. The MEA argues that the minimum wage also has to be seen in the context of GDP per capita – Malta’s is in the region of €24,000 per annum, while Germany’s is over €46,000 – and you would clearly expect Germany’s minimum wage to be higher.
PHOTO: CHRIS SANT FOURNIER
“A number of things are being bundled and jumbled together as it is not clear what the real issues are” the cost of sick leave, administration, national insurance, bonuses etc., you would barely cover the cost of the minimum wage. “The government has addressed this by saying that security workers and cleaners engaged for public sector departments must be paid comparable rates to employees in the public sector – but this means government is now paying €8.22 an hour as a tender rate. That just covers the cost of employment of a
person on government scale 18, which is higher than minimum wage. “But if those companies were to charge that much in the private sector, the demand for their services would drop considerably and the result would be unemployment,” he warned. How does the minimum wage in Malta stack up against other member states?
Why doesn’t the minimum wage keep up with other salaries? The minimum wage is adjusted by the retail price index so it has increased from €98 in 1996 – when the cost-of-living-adjustment was introduced – to €168 in 2016. One concern for employers is that the issue of the minimum wage is being tied in with the COLA mechanism: “A number of things are being bundled and jumbled together as it is not clear what the real issues are,” Mr Farrugia said. Another thing being highlighted is that the general feeling is that those on the minimum wage or low wages have experienced a fall in their purchasing power. In theory, if you are adjusting the wages by the RPI, then the purchasing power should remain the same. However, the last Household Budgetary Survey was conducted in 2008 (and published in 2010) and should have been repeated in 2013 – but Mr Farrugia complained that both administrations “neglected” to do so. The survey has since been conducted and the results are being analysed by the National Statistics Office – supposedly with initial data ready for release before the year end.
e Business OBSERVER
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December 15, 2016
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INTERVIEW
There is no doubt that inequalities might be increasing, however, since new sectors in the economy, like gambling and financial services, have a much higher gross value added traditional sectors and an employee there could easily earn €50,000. “We are seeing a situation of rising wage inequality in Malta but I insist that this is necessary. The wage is partly determined by gross value added: imagine if these sectors were producing a lot more but were paying the same as other sectors. Now that would be heartless!” What alternatives are there to raising the minimum wage? Mr Farrugia is adamant on one point: that the alternatives can only be defined through a very structured approach “rather than going about it in a completely emotional manner, which is, unfortunately, what is happening”. For example, there are 33 wage regulation orders in force which establish working conditions and a minimum wage for various sectors (albeit one higher than the minimum wage) and the MEA believes that it would be better to focus on sectors where there is a concentration of low wage earners by addressing wage regulation orders – rather than by raising the minimum wage nationwide. The association also wants to know how long people remain on the minimum wage as it is one thing to have someone with no education or experience entering the job market being offered a minimum wage for a short time, quite another matter if you have people who have been working for 10 years still on minimum wage. “That is not really likely and the information we get from our members is that the likelihood is that, after a few years, they progress to a higher level of wage, even if they are still doing an unskilled basic job,” he stressed. The MEA, Chamber and GRTU’s proposal is for the minimum wage to be retained as an entry point into the market for vulnerable people who might otherwise not find work. However, through legislation, the
employees would receive increases in their second and third year with the same employer. “You safeguard the entry level and it will not distort the relativities,” he said, The MEA believes that it would be in the employers’ interest to train an employee to improve his value added – rather than tofire them after the first year: “It would be crazy to let someone go and incur the cost of recruiting someone new just to save a few euros per week, especially after an employee has completed his probation and proven his worth.” The MEA is not oblivious to the consequences of living on a low wage, especially for those who do not own their home. It would like to see more attention paid to the aspect of rents that are out of their reach. “We tend to think of high rents only for properties in Sliema and St Julian’s but we have a wide spectrum of foreign workers at every level all over the island. You could have a flat in Marsa being shared by four foreigners paying €600 a month. And there are around 1,500 Filipino carers on minimum wage (as that is what pensioners can afford to pay them). In many cases, they share a flat between three or four, paying €150 each. But a Maltese family with only one person working would not be able to find anywhere to live if they were earning the minimum wage!” He was clearly incensed by the social housing system which is supposed to help such families: “Are there families with a family income of €40,000 who are living in government properties? I believe that there are – and quite a lot of them. The culture here is that once you move into social housing, you stay there. It is not seen to be a social service but a social right. This is what needs to be addressed to help out those who are really in need.” What could be the consequences of raising the minimum wage? One of the MEA’s main arguments is that raising the minimum wage could actually end up driving more people into unemployment, if their gross value added did not justify the higher wage.
Low-wage earners in the EU
SOURCE: EC.EUROPA.EU/EUROSTAT
“And the higher the entry point into the market, the higher the likelihood of people working in the black economy. That is also a situation that we want to avoid,” he added. Another consequence would be the destabilisation of the entire wage structure. Mr Farrugia does not see this as being an over-dramatisation: “If you raise the minimum wage, the labour market would have to re-establish relativities. All wages will have to go up, especially if – as is being pro-
posed – it is raised by a percentage, as this would become a benchmark for collective agreements and other wage increases. The resulting wage inflation could cause a lot of problems in many sectors of the economy.” Traditionally wage determination in Malta has been the result of legislation, collective bargaining and labour market forces but the MEA frets that this new element – pressure from civil society on the political parties outside the consultative
social dialogue structures – will imperil collective bargaining. “Employers can forecast their wage bill by having a known figure from the collective agreement, and the COLA – a question mark that depends on the RPI, but which most manufacturing companies can work around. If you are going to push up all wages, it could be a destabilising factor with very serious repercussions on competitiveness of our enterprises.”
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e Business OBSERVER
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CASE STUDY
Only an e-mail away Harold Rösch – Melita’s CEO – is convinced that customer care at the telecommunications company has improved by leaps and bounds since he took six months ago, so convinced that he has put his own e-mail down on the leaflet outlining its customer care charter. One of the four cusomter service promises rolled out by the company earlier this week states that anyone who is not satisfied with the way in which their complaint was handled can refer it to management, and the CEO wanted to send a signal that the company is taking such instances very seriously indeed. “The complaints procedure and my e-mail address are not intended to replace customer care procedures but to serve as an additional communications channel, if and when customers feel that they are not being served well by our customer representatives,” he reassured. He is confident that this should not be necessry in most cases, as the service promises and procedures were designed to minimise the need to submit formal complaints to the CEO. “I found what I expected when I got here: a company which is fundamentally doing very well, with a very nice growth track in terms of customers and revenues. But I also found a number of problems – especially that our reputation in the market was less positive compared to our competitors. So my first focus was improving this situation,” he said, in his first interview since he took over the company following its acquisition by private equity companies Apax Partners (France) and Fortino Capital (Belgium). Melita has spent the past seven months reviewing the cause of complaints to eliminate or reduce them, as well as reviewing
the call centre that handles queries and problems, with a ‘clock’ on its website now showing how long it takes for calls to be answered – with one minute established as the target call waiting time. Most of the changes were effected by looking at processes, rather than just throwing more people at the problem, as well as improving the products. There are other promises relating to speed, repairs and new service installations, but the message is clear and consistent: Melita is aiming for high customer satisfaction. Fixed telephone is not attracting much investment by telecommunications companies anywhere in the world, and Malta is no excep-
tion, but Melita is actually seeing its greatest growth in customers in its mobile segment. “Our customer base has been growing over the last years, and there was never a situation where it was flat. People are a bit surprised when we mention mobile as we usually associate growth with internet. Melita is growing its customer base in both.” One thing which will change over the coming years is the technology platform. Melita had opted to invest in Wi-Fi and 3G but delayed investing in 4G but Mr Rösch said that in the future, the technologies would converge. “Our view is that the difference between Wi-Fi and 5G will be almost non-perceptible as there will
“Fortunately we have our own cable links but as we speak, we plan to ‘light up’ additional connectivity to Italy which will double what we have today”
only be a difference in protocol which will not be visible to the user. So what we built for Wi-Fi today will tomorrow be used for 5G,” he said. “In 2017, we will start with an evolution of 4G which means our
mobile internet will become faster everywhere. And we are also investing in technology which can provide one gigabit speed over our fixed internet infrastructure.”
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CASE STUDY
“There are more people using wireless internet and the people who have it are using it more. MelitaWiFi has been a great success and customers’ usage pattern is better than that of Vodafone or GO’s customers: they use on average 6.6 gigabytes, about what users in Finland would use on 4G, one of the highest consumption rates in Europe!” he said, noting that revenue and Ebitda were expected to grow between six and eight per cent in 2016. He is well aware that aside from corporate use, much of the demand for fixed and wireless internet is for streaming – and that this is not always done through legal channels. He expressed regret that viewers were sometimes left with no option: “You cannot broadcast all the channels in the world – and these channels are not available in Malta so we could not buy the rights to broadcast them even if we wanted to. However, if the Maltese institutions do not intervene, then we have to learn to live with a situation where illegal operators make their customers pay to access content illegally,” he said. Providing this bandwidth is demanding as every time a Maltese customer wants to watch, say, a Champions League game, Melita has to open a channel from Malta all the way to Milan and on from there.
“If you did this on a cable network, there would be no additional load on the network. When you add up all these users, it makes a huge difference. We see considerable peaks in the network when there are football games,” he said. Providing bandwidth is not only a headache when it comes to football fans but also for corporates, who also have a seemingly insatiable demand. “The issue with delivering internet is that you need to go to one of the big internet exchange points. The closest big one is Milan, alternatively you could go to Paris, but you need to get there via an undersea cable. “This particular situation of Malta being an island was a challenge for us. We basically depended on some companies in Europe to deliver bandwidth and the quality was controlled by them, more or less. “Fortunately we have our own cable links but as we speak, we plan to ‘light up’ additional connectivity to Italy which will double what we have today,” he revealed, adding that this would place Melita well ahead of any other operator in Malta in terms of international broadband capacity. Corporate business has also meant that demand at the data centre in Madliena increased by 100 per cent between June 2015 and June 2016.
One of the other changes brought about by the new shareholders is more international partnerships, with the first positive move to come from the TV segment. The shareholders also own an operator in Portugal which is to embark on a TV project with Melita – although he declined to give away any details at this stage. Chairman Duco Sickinghe, who took over from the founder Joe Gasan after the acquisition, is very well known in the world of telecoms. He was the CEO of Telenet, the biggest Belgian cable operator, and is currently also the chairman of KPN, a telecoms company in the Netherlands. “We have enough contacts in the telecoms world through our owners to be able to understand where the market is going and what we should do,” Mr Rösch said. Private equity firms are perhaps even more sensitive than most to perceptions of being motivated by profit, and as a result tend to dedicate considerable resources to corporate social responsibility. For Melita, the focus is on energy as telecommunications has a significant carbon footprint. Organisation IEEE: Advancing Technology for Humanity calculates that in 2007, ICT’s global carbon dioxide footprint accounted for two per
ILLEGAL FOOTPRINT STREAMING REQUIRES CONSIDERABLE INTERNATIONAL BANDWIDTH.
cent of all emissions, comparable to the aviation industry, and that this would double by 2020. The company is therefore going to invest in as many solar panels at Madliena as it can get permits for, hoping to be able to generate enough renewable energy to cover its consumption. Private equity always has an investment time frame – the average is between five and seven years – but Mr Rösch is confident that much can be achieved in that time, because the vision is more long term: “The value that you can create by slashing costs is so low that it does not really interest private equity investors, except in exceptional situations. In Malta, we are
not only looking at profits but also at our customer base and our employment opportunities.” In contrast to GO and Vodafone Malta, who pay large dividends to foreign shareholders, profits generated by Melita are reinvested innetwork structure improvements, as has been the case over the past 10 years. “We are increasing investments to improve every aspect of the company, not only in terms of service but also the products that people are using, which cost money to provide. There is also the quality focus as we believe that the success of the company and its sustainability can only be ensured if we become one of the best brands in Malta,” he said.
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e Business Observer is Malta’s leading business newspaper distributed with Times of Malta every fortnight. Editorial Vanessa Macdonald, Assistant editor, Times of Malta.
EDITORIAL
Pouring cold water The most unpopular people are those naysayers who pour cold water on to the most positive of news. Whether looking for the outlier in statistics or the extrapolation of all the downside risks, it is easy to look for the proverbial fly in the ointment. However, there is a link between “everything looking rosy” and “wearing rose-coloured” spectacles. It is precisely when things are booming that you need to ensure that there are no cracks appearing. The economic boom of the past few years is undeniable and it is not only the government’s coffers which have been filled to overflowing. Over 20,000 foreigners living here is the equivalent of around a million extra tourists. That is an awful lot of restaurant tabs, hire cars, mobile phone usage, cleaners, taxi rides and theatre patrons, not to mention the furniture bought for rental properties and equipment for their offices. The feel-good factor is like a heavy Christmas lunch, inducing a drowsiness that makes you forget about the next month’s credit card bill. Who would want to talk about the lack of correspondent banks when local banks are still profitable? Who would want to talk about groaning traffic infrastructure when the Kappara Junction is finally taking shape? Who would want to fret about Actavis shedding workers when there is a new printing factory opening up? The harsh reality is that no country can keep up that pace for ever. The Central Bank forecast is that real GDP growth for this year is projected to be 4.3 per cent, slowing down to 4.1 per cent in 2017. And it would go down even further after that: to 3.7 per cent in 2018, and 3.3 per cent in 2019.
The CBM saw no major risks to this growth, saying that economic activity in Malta should remain strong, supported by both demand and supply factors. But there are, nevertheless, cracks. The unemployment rate of 4.9 per cent in 2016 is expected to start picking up to 5.3 per cent by 2019, for a start, and there are fears that the tight labour market might drive up wages and affect competitivity. How are the main sectors doing? Clearly the competitive edge of the pharma industry, which rolled over from the Bolar exemption days, might be losing its sharpness. Financial services and the gaming industry are waiting with bated breath to see whether Malta’s taxation rates have to be raised as a compromise to prevent more onerous impositions. The Freeport is facing a major headache until it learns at the end of March whether the new Ocean Alliance – formed by the merger of Cosco Container Lines and China Shipping Container Lines – will keep its Malta activity, in the meantime crossing its fingers that the Iranian Shipping line Irisl will re-materialise. Travel agents will be waiting to see the possible impact of Air Malta’s routes being whittled away and taken up by low-cost airlines with online reservations, while the national airline’s 1,000 employees will be waiting to see whether they still have a job after next June. All those who have invested in property will be hoping that the plethora of new applications do not destabilise the market – and a huge swathe of those who live or work in Paceville will be hoping that their properties are not wiped out with a stroke of the pen. Let us remember that Nero probably started to fiddle oblivious to the lit candle which fell over on a windy night in Rome sparking a fire that raged for six days. The time to be vigilant is now.
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BUSINESS OPINION
Time to increase the minimum wage?
Philip von Brockdorff Attempts to raise the minimum wage have long been coming. It now appears that the wait is finally over. The expected, however, has raised two major issues: by how much it ought to increase, and the role of MCESD (or social partners) as the appropriate forum for debating the social and economic implications of doing so.
The Caritas report It is my understanding that the latest debate on the minimum wage was triggered by the Caritas report published earlier this year. This established a minimum essential budget which can be used to set an absolute poverty threshold. The yearly budget for a household of two adults and two children is estimated by Caritas at €11,447. This, however, is far lower than the National Statistics Office benchmark for estimating the poverty threshold for Malta. From my calculations, based on NSO’s Statistics on Income and Living Conditions (2015), a household with two adults and two children
requires a minimum budget of at least €17,002 per annum. This is significantly higher than the Caritas estimate and begs the question whether the minimum wage, as recommended by Caritas, can be relied upon to make any material difference to minimum wage earners. The Caritas report also stops short of referring to any possible consequences arising from an increase in the minimum wage. One likely consequence is the effect on negotiated wage relativities. The argument here is that despite Caritas proposing a minimum wage that could have little or no bearing on the living conditions of a household of two adults and two children, trade union members will seek to retain current relativities, especially if their representatives are not signatories to an agreement on raising the minimum wage.
Broad agreement If there is to be an agreement, this can only be brought about if social partners do not feel they are being pushed into a corner. Their concerns cannot be ignored. Reaching consensus on a matter such as raising the minimum wage is after all an underlying principle of social dialogue. Yes, it’s government that finally decides but government cannot ride roughshod on an issue where social partners should and can play a proactive role within MCESD. And social partners do have legitimate concerns about raising the minimum wage. Whereas nobody is
questioning the role of NGOs such as Caritas in raising awareness on poverty, be it absolute or relative, as well as its lobbying for raising the minimum wage, the appropriate forum for reaching consensus remains the MCESD.
Expectations On their part, NGOs would do well not to raise expectations as to the effect on poverty of raising the minimum wage. Addressing poverty, be it absolute or relative, requires targeted measures aimed at households that are falling behind the rest of the population. Such measures would leave a mark in the medium and long term but it’s worth the wait. This is not to say that short-term measures should be deemed irrelevant. Nevertheless, and realistically, workers’ income and living conditions can only improve through professional retraining, other targeted policy measures and by being members of a trade union. Of course, social partners may agree to propose regular adjustments to the minimum wage but I doubt if employers would be willing to sign up to that.
Risks The risks of regularly adjusting the minimum wage cannot be understated. Malta’s labour market has
changed significantly since EU accession, especially in the last four or five years with an unprecedented number of nonMaltese seeking employment in our still growing economy. We are slowly but surely becoming the victims of our success with wage pressures being kept to a minimum, at least in the categories where there is no shortage of labour supply. As long as the economy grows, the number of non-Maltese seeking employment opportunities in Malta will continue to rise. An increase in the minimum wage is likely to attract more foreign workers for low-paying jobs in the catering and social care sectors. The pull of a higher minimum wage cannot be ignored, particularly when one considers that Malta is among the countries with the lowest wage discrepancies across the EU. Also, our existing minimum wage is not
among the lowest in the EU by any means. I don’t subscribe to the view that when the economy slows down, employers will cut their losses by firing foreign workers. Employers are more likely to retain workers, foreign or otherwise, who have no choice but to accept a relatively low wage. This is precisely why, in setting a new level for the minimum wage, any adjustment and the method used to reach it needs to be thought out carefully and in full recognition of the role social partners play as members of the MCESD. Philip von Brockdorff is the head of economics at the Faculty of Economics, Management and Accountancy of the University of Malta. see also pages 1, 10 and 11
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NEWS
CBM forecasts 4.1% growth for 2017 Real GDP growth for this year is projected to be 4.3 per cent, slowing down to 4.1 per cent in 2017, according to the Central Bank of Malta forecasts. It also said that real GDP growth would be 3.7 per cent in 2018, and 3.3 per cent in 2019. The bank said that economic activity in Malta was expected to remain robust over the projection horizon, supported by both demand and supply factors. “In particular, the energy reforms that have taken place in recent years, new investment projects, increased labour market participation and robust services exports are the primary drivers supporting the economic expansion. “As a result, the labour market is projected to remain tight, with the unemployment rate falling further to 4.9 per cent in 2016, before picking up slightly to 5.3 per cent by 2019,” it said. Downward international price pressures are expected to contribute towards a further easing of consumer price inflation this year. Annual inflation, based on the Harmonised Index of Consumer Prices, should ease from 1.2 per cent in 2015 to 0.9 per cent this year, but is then projected to trend up to 1.9 per cent by 2019, reflecting a pick-up in international commodity prices and domestic cost pressures. In terms of public finances, restraint in key expenditure variables is expected to contribute towards a decline in the general government deficit, with government finances set to become broadly in balance by 2019. https://www.centralbankmalta.o rg/economic-projections.
“Economic activity in Malta was expected to remain robust over the projection horizon, supported by both demand and supply factors”
PHOTO: MATTHEW MIRABELLI
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STOCK MARKET REVIEW
Volatility following ECB’s monetary policy decision THE EUROPEAN CENTRAL BANK HEADQUARTERS IN FRANKFURT. PHOTO: RALPH ORLOWSKI/REUTERS
Edward Rizzo The importance of the European Central Bank’s meeting last Thursday had been well-documented in the international financial media and also in some of my articles over the past few weeks. While in Malta the market was closed due to the public holiday celebrating the Immaculate Conception on Thursday December 8, the ECB announced that as from April 2017, the size of the quantitative easing programme would drop back to €60 billion per month but would be extended until December 2017. The previous change to the QE programme took place in March 2016, when the ECB decided that between September 2016 and March 2017 the bond buying programme was to be expanded from the original €60 billion per month to €80 billion per month. Many analysts had been expecting the size of the monthly programme to be maintained at €80 billion but the term was anticipated to be extended only for a further six months until September 2017 and not until December 2017. The ECB also decided to change the parameters of its bond-buying
programme by allowing the purchases of bonds which yield less than the current deposit rate of -0.4 per cent and also by buying one-year bonds if necessary compared to the current restriction of a minimum of two-year bonds. The surprising announcement by the ECB led to intense volatility across European stockmarkets last Thursday afternoon as analysts initially seemed confused at
the implications of the various measures taken. Immediately as the decision was announced, the euro jumped up by one per cent to a four-week intra-day high against the US dollar of $1.0872 but after a short period of time, the euro dropped back to $1.0605 representing a drop of 1.3 per cent on the day. Similarly, the prices of longdated eurozone government bonds
declined rapidly as the yield on the 10-year German bund raced up to 0.453 per cent – the highest since January 2016. Similar to the reaction in the currency markets, the 10-year benchmark yield quickly eased back to 0.38 per cent – a sharp downturn from the highs of the day but still above the level prior to the ECB announcement. The renewed decline in the value of the euro late on Thursday
afternoon and the partial drop in government bond yields following the initial rally were in reaction to the comments made by the ECB president Mario Draghi during the customary press conference following the meeting. As the ECB decision was communicated to the market early Thursday afternoon, the reaction by the main economists around Europe was that the
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STOCK MARKET REVIEW
reduction in the monthly bond purchases to €60 billion per month reflected a ‘tapering’ programme by the ECB. This term was originally coined by the former chairman of the US Federal Reserve Ben Bernanke to describe the reduction in purchases of US Treasuries by the central bank in 2013. However, Mr Draghi insisted that the reduction in the monthly programme does not signal that the ECB is preparing to exit from QE. In fact, he stated that ‘tapering’ implies “a policy whereby purchases would gradually go to zero”. The president of the ECB was equivocal that such a policy was not even discussed and the Central Bank remained ready to increase asset purchases again should financial conditions become inconsistent with bringing the inflation rate back to target. Last Thursday the ECB also presented the updated quarterly economists’ forecasts which, for the first time, included the projections for eurozone growth and inflation in 2019. The eurozone economy is expected to grow by 1.7 per cent in 2016 and 2017 and by 1.6 per cent in 2018 and 2019 while inflation is projected to rise to 1.7 per cent by 2019 from 1.3 per cent in 2017. Mr Draghi said the ECB wanted to send the message that it would have a “sustained presence in the market” and he attributed the reduction in purchases from next year to the fact that deflation risks had “largely disappeared”. Indeed, in view of the fact that the level of inflation was still below the targeted level, Mr Draghi also noted that in the future the ECB was more likely to increase QE back to €80 billion a month rather than wind down the programme completely. Despite such messages from the President of the ECB, the eurozone bond markets continued to remain wary of whether the decision indicates the beginning of the end of the ultra-loose monetary policy or whether the
bond buying programme will extend well into 2018. In fact, by the end of last week, although sovereign bond yields had eased from the spike following the immediate decision by the ECB, they remained higher than the levels prior to the meeting. This was also reflected in the prices of Malta Government Stocks on Friday when the Central Bank of Malta revised downwards the indicative bid prices twice in reaction to international developments. On the other hand, the prices of some short and medium-term MGSs (those maturing between 2019 and 2023) improved in another sign that MGS prices largely mirror movements across the eurozone bond market. In fact, medium term eurozone bond prices improved following the ECB decision to also consider buying bonds that may yield less than 0.4 per cent. On Monday morning, the prices of all MGSs (especially those maturing from 2028 onwards) were priced sharply lower as a result of a continued upturn in yields across the eurozone.
Significant increase in QE trades in November at a time when MGS prices declined rapidly from record levels clearly indicates the increased nervousness among investors The downturn in MGS prices last Friday and Monday signalled the end of a rather negative month for holders of sovereign debt in Malta and also across the eurozone. Since the surprising result of the US election, bond prices declined significantly across the world in anticipation of higher rates of inflation. This also seems to have had a profound impact on the momentum of activity in the QE market in Malta. Statistics published by the ECB last week show that a total of €99 million worth of MGS QE trades took place in Malta during November. This is a record amount of monthly purchases of MGS conducted by the Central Bank of
Malta under this programme and exceeds the previous record of €85 million registered in May 2015. The significant increase in QE trades during the month of November at a time when MGS prices declined rapidly from their record levels reached the previous month clearly indicates the increased nervousness among investors holding MGS. The elections in France, Netherlands and Germany next year will play a determining role in movements across global capital markets in 2017. Moreover, the problems across the Italian banking sector will also continue to play a central role in the weeks and months ahead. Following
Rizzo, Farrugia & Co. (Stockbrokers) Ltd (RFC) 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. RFC, its directors, the author of this report, other employees or RFC 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 RFC, 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. © 2016 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved
last week’s decision by the ECB not to allow further time for the rescue of Monte dei Paschi di Siena by a group of private investors, up to 40,000 bondholders of one of the world’s oldest banks may be forced to convert their subordinated bonds into shares in the coming months. In view of these serious challenges and their wide-ranging impact across equity, currency and also bond markets, it is evident that 2017 is also very likely to be a difficult year for the thousands of Maltese investors mainly exposed to the sovereign bond market. Edward Rizzo is a director at Rizzo, Farrugia & Co (Stockbrokers) Ltd.
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BUSINESS UPDATES
FIMBank welcomes Fitch Ratings upgrade
His heart stopped! Will you save him? Sudden cardiac arrest (SCA) is the most common cause of death from heart disease, accounting for more than 63 per cent of all cardiac deaths. In SCA, the heart suddenly stops beating normally. Without a blood supply, oxygen-starved organs are irreversibly damaged and will quickly fail... within a few minutes. The only effective treatment for SCA is defibrillation. External defibrillation provides a brief, effective therapeutic electric shock through the person’s chest to the heart, restoring the heart’s normal rhythm. While people with heart problems are at high risk of death from SCA, it can strike anyone, anywhere, at any time without warning, and in some cases is the victim’s only symptom. Even young people who appear to be healthy, extremely fit athletes and people with no history of heart problems can be victims of this silent killer. The definitive survival treatment for an SCA victim is a defibrillation shock. Cardio Pulmonary Resuscitation (CPR) or ‘chest compressions’ and ‘mouth-to-mouth’ breaths only temporarily circu-
Fitch Ratings has upgraded Maltabased FIMBank’s Long-Term Issuer Default Rating (IDR) to BB, from BB-, and its Support Rating to 3 from 5. In its report, the rating agency also confirms the outlook for the bank as being stable. The agency’s report highlights the fact that the upgrade takes into account the demonstrated record of capital and funding support provided to FIMBank by Kuwaiti-based Burgan Bank, and its sister bank, Bahrain-based United Gulf Bank, as well as the increased management and operational integration of FIMBank with Burgan Bank. Commenting on the news of FIMBank’s upgrade by Fitch Ratings, Group CEO Murali Subramanian explained, “strong and demonstrated parental support as required, for the funding and capitalisation of FIMBank, is the main reason Fitch have cited for this ratings upgrade. While we welcome this decision, we believe the best is yet to come. We have unrelenting focus on delivering the kind of performance
which is expected to progressively render ever stronger returns to our shareholders. It vindicates our strategy based on a series of organisational restructuring, operational review, and cost control measures, which we have been implementing over the past 18 months.” He went on to add, “as a result of this strategy, 2016 has been a turnaround year for the group, and this is also reflected in the improved profitability of our operations. Moreover, legacy misadventures of prior years are being dealt with firmly, and will be fully behind us in 2017”. Noting the dynamic process of transformation being undertaken at FIMBank, and its anticipated positive effect on the bank’s profitability, the Fitch Ratings report concludes by stating that “a successful restructuring of FIMBank and a strong recovery in its financial metrics could result in FIMBank’s VR being upgraded.” For more information about FIMBank plc, visit www.fimbank.com.
late blood to vital organs, and on their own do not restore a patient’s heart into a healthy rhythm – a shock is needed… and fast! The average national response time for the arrival of emergency personnel equipped with defibrillators is usually greater than 10 to 15 minutes – this is too late! This is why immediate access to defibrillators on-site is extremely important. Each minute of delay in delivering a defibrillation shock to a cardiac arrest victim reduces the chances of survival by 10 per cent, meaning that, if a casualty is not shocked within five minutes of collapse, he/she will have less than 50 per cent chance of survival! When a sudden cardiac arrest (SCA) strikes, the first few minutes are critical to survival. In the chaos and confusion , it can be challenging for the average rescuer with only minimal training in CPR and AED use to remember and follow the correct procedures. It’s during these critical minutes that the Powerheart AED G5 becomes priceless. For further details about the Powerheart contact Technoline Ltd on tel. 2134 4345.
e Banker names HSBC Bank Malta Bank of the Year 2016 HSBC Bank Malta has been named Bank of the Year in Malta for 2016 as part of the Financial Times’s prestigious The Banker magazine awards. The award recognises that HSBC Malta has been successful in rapidly adapting its business model to thrive within a changed operating environment for banks, characterised by more demanding regulatory and compliance obligations while continuing to support growth in the economy in a responsible way. The award was presented to HSBC Bank Malta CEO Andrew Beane and chairman Sonny Portelli at a ceremony in London, accompanied by a group of outstanding employees from across the bank’s business. “This award is a testament to the hard work, professionalism and dedication of all my colleagues and I dedicate the award to them,” said Mr Beane. “We set out a new strategy for the bank at the beginning of 2016 and I am delighted that the progress we have made in a short period has been recognised in this way. Banking will always be about serving customers through long-term relationships built on trust, but today this can only be achieved where demanding regulatory and compliance standards are also met.”
HSBC BANK MALTA CEO ANDREW BEANE, CHAIRMAN SONNY PORTELLI AND A GROUP OF HSBC MALTA COLLEAGUES WITH THE PRESTIGIOUS ‘BEST BANK OF THE YEAR’ IN MALTA 2016 AWARD DURING THE FT THE BANKER CEREMONY IN LONDON.
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BUSINESS UPDATES
Express Logigroup’s international freight service Within today’s booming marketplace, companies must be adaptable and specialised. As a logistics company based in Malta, we at Express Logigroup use innovative strategies to achieve specific goals and this is why we are unrivalled and unparalleled in our international services. Each of our services is designed independently, finetuned to perfection and presented to the customer to meet individual demands, guaranteeing efficiency and strengthening our legacy among customers and companies alike. Even our name, Express Logigroup, was developed through a dynamic process. Express Logigroup offers custom-made solutions even to the most remote locations and our coordinated methods ensure that your logistical needs are met professionally. We have dedicated our time and listened to our customers’ needs to create innovative and practical service pillars which altogether encompass a 360-degree service offering. Through integrated logistics solutions and innova-
tive outsourcing concepts we relieve our customers of peripheral tasks and enable them to concentrate on their core business. The customer benefit – cost savings and improved quality – is always in the foreground of our company’s ethos. We therefore continuously monitor and optimise procedures and processes, and thus permanently improve the efficiency of our services. Express Logigroup cooperates throughout Europe with highly efficient and privately operated companies that like us, act independently of large corporations and are flexible and much more customer centric. Service-oriented company philosophies and highly efficient procedures place the customer at the centre of our attention. In addition to our regular part and full loads services, Express Logigroup offers courier, trade fair logistics, professional packing, home-to-home removal services and professional logistical consultancy service. For more information visit www.expresslogigroup.com