The Malta Business Observer, 30th May 2019

NEWS

Issue 98

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Distributed with Times of Malta

May 30, 2019

If not managed, success can lead to ruin – Finance Minister

Travel industry leaders and contractors are at odds over Malta’s ability to attract luxury tourists, questioning the sustainability of the ongoing construction boom. see pags 5, 6 >

Helena Grech NEWS Finance Minister Edward Scicluna has reiterated the importance of managing success, be it personal or national, as failure to do so may lead to ruin, he said in comments to The Malta Business Observer. “As a country, we must face this reality. This drives at the core of what sustainable development is all about,” he underlined.

Questions were sent to the Minister in reaction to remarks he made last month, when he said that Malta was not ready for the rapid economic growth it has experienced over the past few years.

Indeed, while the Government has been heavily praised for its successes in creating job opportunities, historically low unemployment, a national Budget surplus and attracting investment, it has also been criticised for failing to address the growing pains associated with this level of growth.

“As a Government, we always believed that our formula for economic growth would work. What perhaps we were less prepared for was that this success would feed on itself and produce a consistent year-in year-out stellar performance,” the Minister said, while explaining that the principal challenges facing the island included its finite resources, particularly land, and the effects of growth on public finance. “Physical resources, especially land, are a very scarce resource and they should be tackled head-on. The conflicting uses for a small parcel of land are mind boggling and the

e Malta Digital Innovation Authority (MDIA) will shortly be publishing the details of three new approved systems auditors. see pages 9, 13 >

BUSINESS OPINION Claudette Pace, BOV’s Market Intelligence Unit Manager, outlines the benefits of providing simpler and faster payment systems to drive the Maltese into the digital payment world. see page 11 >

pressure from potential users is overwhelming,” he continued.

Moreover, the Minister made reference to the Government’s initiatives to tackle the corollaries resulting from Malta’s steep economic growth, such as traffic, the increasing strain on Malta’s schools, roads and other vital services, as well as the significant price inContinued on page 3

“As a Government, we always believed that our formula for economic growth would work. What perhaps we were less prepared for was that this success would feed on itself.”

– Minister Edward Scicluna

CASE STUDY Heritage Malta rolls out a series of new exhibitions, events and audience development strategies to consolidate the gains achieved over recent years. see pags 14, 15 >

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Malta’s economic success not consistent across all sectors, Malta Chamber says Continued from page 1 creases in the rental and property market. “Indeed, we allocated €700 million for a sevenyear road works project, where the envisaged investments are being planned, overseen, and implemented by a newly-established Government agency, Infrastructure Malta. Further investment will also be made in the waste management sector, especially the waste-toenergy plant and the water distribution and sewerage network,” he explained.

With regards to property, the Minister spoke of implementing measures to ensure affordable housing through the first-time and second-time buyer, and the equity sharing schemes, underlining that “we have also invested in social housing with the aim of increasing the social housing stock by 1,700 units.” He also made reference to the high costs in rent, saying that the Government was “addressing challenges through the necessary legislation to properly regularise the rental market and the affordable housing benefit,” though he did not expound.

Due to the investment required, the Minister also acknowledged that further Government expenditure was necessary to address the pressures associated with growth. “But, so long as expenditure growth is in line with economic growth, then there is no cause for concern. Indeed, when looking at the share of Government expenditure, as a percentage of GDP, one notes that the share has actually decreased from 42.7 per cent in 2012 to 36.8 per cent in 2018,” he underlined.

The importance of attending to the challenges brought on by Malta’s economic growth was also stressed by David Xuereb, President of the Malta Chamber of Commerce, Industry and Enterprise, who remarked that now is “the time to capitalise on the present economic resilience to invest in the necessary infrastructure and safeguard long-term fiscal and economic sustainability.” He said that while the Malta Chamber welcomed such progress, there was a definite need for “a holistic plan that would ensure sustainability, and the futureproofing of the country’s economy.”

He noted that the successes experienced by the economy have not been consistent

“Not all sectors and industries are growing at the same pace and specific sectors are experiencing very real challenges.” – David Xuereb, President, Malta Chamber

across all sectors, highlighting that “not all sectors and industries are growing at the same pace and specific sectors are experiencing very real challenges.” He went on to say that the Chamber has consistently called on Government to ensure it takes advantage of Malta’s strong position through long-term planning and also referred to the risks posed by the “volatile” international situation, stressing that Malta “must remain nimble and efficient” to respond to internal and external shocks.

“This has been the Chamber’s mantra for a number of years now, and it is more relevant than it ever was before. We need to sit down and take stock of the current situation, while it is favourable, and analyse the strengths and areas for improvement that are characterising our economy. We also need to map out a long-term plan of where we want to take our country in the next five to 10 years,” he underlined.

To this end, he said, Malta Chamber had been busy laying out its “blueprint” for the island’s economy, including business’ ambitions for the Malta of tomorrow. This document, which he described as a “pro-active stance”, is a “second Economic Vision for

Malta”, being designed together with several of Malta’s foremost entrepreneurs and business leaders.

“The Chamber is proud of Malta’s achievements. Indeed, these achievements are the result of meticulous planning and the hard work of our entrepreneurs, our workers as well as our political leaders. But we must not take these successes for granted. These successes were achieved because we provided the right conditions for them to materialise – and we must continue to do so,” he said.

Echoing many of these thoughts, Gordon Cordina, economist and Executive Director of E-cubed Consultants, commented that sustainable economic growth necessitates a balancing act between demand and the supply capabilities of the economy. “Demand arises from a number of sources, be they tourism, new economy services, domestic consumption, and to a lesser but interesting extent, manufacturing. Supply entails human capital and productive capital, but also environmental, social and institutional aspects. Economic policy must balance all these issues to ensure sustainable growth, that is furthermore resilient in the face of shocks,” he asserted.

He remarked on Malta’s economic policy over the past few years, which has focused on increasing demand, though stated that the upcoming challenge will be to see supply shortfalls addressed. Resolving this issue, he noted, required “investment in all aspects of capital”, including the environmental, social and institutional aspects. “This will be crucial to ensure that the Maltese economy remains attractive to demand in the long term, but this may also require a period of slower demand growth for the supply side to catch up.”

Asked whether he would recommend actually slowing down the fast pace of growth, Dr Cordina was quick to say that it “is not wise to advocate a slowdown in business investment, but possibly a more selective approach, which focuses on higher value-added activities, that are best suited to the characteristics and need of the country, is warranted.”

Furthermore, there is also the need to safeguard “Malta’s fundamental unique selling proposition,” namely, its land, climate, as well as its natural and historical heritage, he said. Indeed, “whatever the line of business, economic activity can in good part continue to be attracted to Malta only if the country remains and is valorised as an ideal place to live, work, learn, heal, enjoy recreation and engage in creativity,” he said, while underlining that mentalities need to change to “embrace the changes that are required to develop the true potential of our economy.”

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Construction boom risks making Malta less attractive to luxury tourists Jo Caruana Travel industry leaders and contractors are at odds over Malta’s ability to attract luxury tourists, long term, with juxtaposing opinions about how sustainable the ongoing construction boom will turn out to be.

Reacting to a recent interview given by Malta Hotels and Restaurants Association President Tony Zahra, in which he claimed the island was failing to attract high spenders, Malta Business Bureau President and hotelier Simon De Cesare told The Malta Business Observer, he is greatly concerned about the impression we are giving to tourists across Malta.

“This economic boom is indeed resulting in more and more construction and investment. However, this is not a short-term problem. It is quite the opposite in fact, as large-scale projects that are being proposed at the moment will be completed in five years or more, so I don’t see a situation in which this level of construction will abate any time soon,” Mr De Cesare said. However, in contrast to the MHRA President, he doesn’t believe that this, for the time being, will “detract higher-end tourists from

coming here,” though he said, “it will certainly limit the chances that they might return.”

Despite this, he noted that he was “ever surprised by the compliments that I receive from tourists to our hotels. They still see some of the charm we, Maltese, feel we have lost. Nevertheless, I don’t believe it is sustainable. Just from a tourism perspective, I believe the number of hotel beds available in the next two-to-three years will double, due to new developments. Do we really think that we can afford to double the number of tourists coming here? I don’t,” he underlined.

Instead, what will end up happening, he said, is that tourism figures “will squeeze rates and occupancy down, and businesses will reduce profitability and close.” The problem is being exacerbated by “the massive number” of apartments on online channels, such as Airbnb, and this will also, in the future, “lead to difficulties” for people who have purchased at high rates and are living off the proceeds. “I think this will, unfortunately, be a turning point for the economy – it’s not going to be pretty, and sadly what has been developed now cannot be undeveloped,” he asserted.

On the flip side of that, though, Sandro Chetcuti – President of the Malta Developers’ Association – said that it is also the hotels themselves that are causing much of the construction at the moment. That said, he hopes development will begin to be better regulated and highlights the recent launch of the new scheme for ‘considerate’ developers, which incentivises developers and contractors to work in a more conscientious way.

“This new scheme requires contractors to go beyond their call of duty – and those that do will benefit from it,” he said.

“Overseas, construction sites are barely visible, they contain their dust and they stay on top of any noise pollution. We agree that, with all the road works and the construction ongoing, things do need to be more organised and better planned.”

In fact, Mr Chetcuti sees better planning – and specifically better forward planning – as key to better results. “If we plan properly, we will achieve better results, but it will take effort and the contractors

“Do we really think that we can afford to double the number of tourists coming here?” – Simon De Cesare, President, Malta Business Bureau need to play a huge part in that,” he stressed.

Mr De Cesare was very much in agreement that planning has a crucial role to play in the sustainable future of how the construction and the tourism industries can work together. “If we don’t adopt a planning-centric mentality right now, as a country, then we will never achieve a good final product and it will soon be too late,” he stressed.

“For example, the Planning Authority should be planning and not solely regulating. Tourism associations should be analysing and pushing for the type of accommodation that the country needs 10 years into the future. It was great to see a master plan pro-

posed for Paceville and St Julian’s; though there were shortcomings in the delivery and some of the crucial suggestions stopped short,” he continued.

Furthermore, while he believed it was heartening to hear recent Government initiatives aimed at increasing open space for the Maltese to enjoy, Mr De Cesare said he was not upbeat about the outlook of what we will leave behind for future generations in Malta.

“Yes, we are becoming more cosmopolitan and we will need to build higher and might need to reclaim land in certain scenarios.

However, we are already almost at bursting point. I cannot imagContinued on page 6

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NEWS

“Things do need to be more organised and better planned” Sandro Chetcuti Continued from page 5 ine how much more populated and developed we can become. There is a serious cost in quality of life to becoming more cosmopolitan, and we need to think about it very seriously,” he concluded.

Meanwhile, Malta Chamber of Commerce President Perit David Xuereb explained that the Chamber has always advocated a sustainable approach to all economic sector growth, in such a way that one sector must not develop and flourish to the detriment of another.

“As the economy grows – and with it the number of people who live and work in Malta – it is only natural that pressure for new accommodation and infrastructure increases,” he said. “Within this context, however, we urge the authorities to be mindful of the sustainability of such a growth in development. Every infrastructural project, big or small, must take place in full respect of the very best practices of work, in such a way that the nuisance to its surroundings are minimised,” he explained.

He decried the situation “wherein one can spot upward of 15 tower cranes from

any vantage point in Malta,” saying that though it may imply a vibrant and very active economy, it “may also send the unwanted message of disruption and

disturbance to any – especially high-end – destination leisure or business travellers.”

Moreover, he emphasised that a high standard of living should accompany de-

velopment and, in this regard, referenced the Malta Chamber’s recent recommendation for Government authorities, such as the Planning Authority, to “take on a more proactive role and guide the development sector in terms of what is really needed for the sustainable growth of the country.”

From Mr Chetcuti’s perspective, he now believes the future of the marriage between development and touristic appeal will depend very much on the ‘feel good factor’ and the demand for better quality.

“We need to understand all the stakeholders,” he noted. “A strong economy can help us look after the environment and invest in better planning. If the investors stop investing, then everyone will have a problem as, without financial back-up, we cannot move forward. We need to marry the two – the environment and construction – and work together. That is something I have been repeating for the last 10 years: we need advice from planners, from people who are knowledgeable about air quality, and people who appreciate nature. Everything has to work in synergy,” he claimed.

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MDIA will announce three new approved DLT systems auditors this week Jillian Mallia Over the next few days, the Malta Digital Innovation Authority (MDIA) will be publishing the details of three new approved systems auditors working in the field of Distributed Ledger Technologies.

CEO Stephen McCarthy has told The Malta Business Observer that the authority, which is Malta’s serving regulatory body for new emergent technologies, had also received interest from another five potential systems auditors, who will be vetted over the coming months.

The MDIA, however, is not responsible for the approval of VFA agents, under the Virtual Financial Assets (VFA) Act, as this falls under the Malta Financial Services Authority’s (MFSA) remit.

There are currently 11 VFA agents officially registered with the MFSA, with rolling confirmations announced on their website as applications are approved.

The new approved systems auditors have met “the requirements set by the MFSA, as documented in the guidelines on the definition of ‘in or from Malta’,” according to Mr McCarthy, who also noted that the decision rested on the applicants’ education, experience and their performance in an interview.

He underlined the MDIA’s commitment to “undertaking due diligence and scrutiny to ensure that the approved systems auditors can provide the required levels of assurances when it comes to providing a systems audit on innovative technology arrangements.”

Indeed, systems auditors are responsible for carrying out thorough inspections of exchanges, ICOs, STOs, or any other entity using DLT technologies as they proceed to apply for initial certification from the MFSA, in accor-

dance with the legislative framework enacted towards the end of last year. The Innovative Technology Arrangements and Services (ITAS) Act and the VFA Act, together with the guidelines issued by the MDIA, have also placed emphasis on yearly audits to verify the firms’ continued security and transparency, with regular monitoring to scrutinise the integrity of their operations and IT set-up.

Mr McCarthy stressed that although this systems audit framework is a voluntary one, it was still Continued on page 13

SYSTEMS AUDITORS’ AND VFA AGENTS’ ROLES An accredited systems auditor is a service provider under the ITAS Act who carries out system reviews and issues an opinion on the management, security and functional correctness to ITAs seeking a voluntary certification under the MDIA certification process.

The systems auditor must abide by the guidelines and control objectives which are published by the MDIA. It is through such certification by MDIA – which although is not mandatory on the applicant – that a new service to operators is being provided, giving them the additional peace of mind and a certificate

from a legislatively recognised European central authority.

VFA agents, on the other hand, assist issuers and service providers under the Virtual Financial Assets Act, and put forward applications to the MFSA on their behalf. VFAs agent have to perform a thorough due diligence and KYC on their clients and are required to support the MFSA in its supervisory function by providing the necessary information during post-registration supervision. The role is akin to that of a gatekeeper – a first line of defence which ensures that only persons who are fit and proper enter the financial system.

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

Acting Managing Editor Rebecca Anastasi

EDITORIAL

Publishers Allied Newspapers Ltd. Content House Group Ltd.

Facing reality In this edition’s cover story, Finance Minister Edward Scicluna reasserts the need for sustainable development, admitting that the Government may not have been prepared for the steep rate of growth the country has experienced. And, as he has done in other recent interviews, the Minister also underlines the value of managing success and notes that Malta’s scarcity of resources – particularly land – poses a challenge in an economy which continually strives to keep up the rate of development, with multiple players scrambling for a little piece of the action.

While the Minister’s candid comments are welcomed, the fallout from the island’s drive to move full speed ahead has been felt for some time now. Bumper-to-bumper traffic; cranes blocking main and subsidiary thoroughfares; the high cost in rent and property prices; and the unmanageable production of waste are all reaching breaking point. Quality of life on the island is being affected – and not positively – with many decrying the loss of unique Maltese townscapes, and the concomitant sense of alienation and helplessness being experienced by residents, with many tarnishing all businesses with the same negative brush.

Indeed, there is a concern that businesses that go by the book will end up being those which suffer the most, losing credibility and the ability to truly prosper. In light of this, while Sandro Chetcuti, the President of the Malta Developers’ Association, has also, in this edition, pointed to the launch of a new scheme to incentivise ‘considerate’ developers, this feels like the tip of the iceberg. For there seems to be an element of short-termism in the decisions being made, with little, to

no, thought when it comes to sustainable planning, the environment, Malta’s cost of living and residents’ quality of life.

It would also be disingenuous of us to believe that Malta’s tourism product could not be affected by these issues. As Simon De Cesare also points out in the article on page 5, the amount of construction – driven by the island’s economic ambitions – is not sustainable in the long term. Indeed, the projected increase in the number of hotel beds, as a result of large-scale developments, may ultimately result in reduced profitability for local businesses, he says, as Malta struggles to maintain, or increase, its current figures in tourist arrivals.

In his comments, the Minister even goes so far as to say that unmanaged success can lead to ruin, stating that “we must face this reality.”

But, despite the Minister’s frank statements, they do not seem to be shared by many in positions of power to affect actual change. Perhaps it is the Minister’s renowned – and respected – experience as an economist which has prompted him to make the remarks, though it would be beneficial if these sentiments cascaded down to his colleagues across all levels of Government.

For, ultimately, Minister Scicluna’s comments should prompt decision-makers to stop and think. It should not be assumed that unbridled, incessant growth is required to keep the economy afloat, at the cost of an increasing sense of division, the rupturing of our social fabric and risks to the sustainability of businesses operating in a variety of sectors. Rather, supporting an economic model based on feasible prosperity – for all – may be the panacea the country needs.

Advertising Enquiries Tel: 2132 0713 Email: info@contenthouse.com.mt Advertising Sales Matthew Spiteri Director of Sales and Business Development Jean Mark Meli Senior Brand Sales Executive Lindsey Napier Director of Sales and Operations Sue Ann Pisani Advertising Coordinator

Printer Progress Press Ltd.

BUSINESS OPINION

Cashless payments on an island of traditionalists Claudette Pace In an age when speed has become the new mantra, and paper an expensive commodity, financial institutions are playing an instrumental role in pushing consumers towards a digital payment experience. Throughout the years, we have seen a fast shift towards a paperless payment world, with the key drivers being banks, FinTech companies, disruptive technology, ever higher customer expectations and regulation.

According to the World Payments Report 2018, the volume of non-cash payments globally has been growing steadily. It is estimated that non-cash transactions will accelerate at 12.7 per cent through to 2021, with emerging Asia taking the lead with a whopping 21.6 per cent growth. E-wallet transactions and non-cash payments via payment apps are also growing steadily with BigTech firms such as Google, Amazon, Facebook and Apple, providing the opportunity for collaboration in payment systems. Mature, open banking countries, such as Sweden, the UK and the Netherlands, have the highest cashless instrument usage, indicating a high level of participation from all payment industry stakeholders, including governments.

Although globally we have witnessed a steep decline in traditional payment systems, Malta struggles to catch up with this digital payment world. While financial institutions and other key players continue to implement new solutions that promise faster payment methods, cash and cheques still reign on the island. This well-known fact was recently confirmed by the Central Bank of Malta’s (CBM) report on payment habits of the Maltese.

The reasons for using cash and cheques over digital payment systems are the result of habit, especially with older people; perceived

convenience and security concerns; payment control; the appealing physical nature of cash, when used for gifts or donations; and the need for large one-off payments. Whilst consumers may question the security and safety of digital payments, more often than not, they forget that cash is exposed to a high risk of theft and counterfeiting, whereas cheques are inefficient due to long clearing cycles and come with the risk of payment not being honoured.

In Malta, as delineated in the CBM’s analysis, consumers consider convenience first, followed by efficiency and security when opting for a particular payment instrument. These provide a wide-open door to industry players interested in changing the Maltese payment scene.

There are a multitude of benefits that come with switching to electronic payments. These include increased cost savings (cash management can be expensive in terms of security and retention, and the costs and chasing ef-

forts associated with dishonoured cheques are eliminated); improved cash flow management, as electronic payments give control over when payments are made or received; faster reconciliation; the elimination of physical storage space; the acquisition of spending pattern insights; better budgeting; and insurance protection through card payments.

So, what is one of the largest financial institutions in Malta doing for the cashless world?

Bank of Valletta provides a wide array of digital payment options to both individuals and companies, meeting the need for convenience, efficiency and safety. Utility bills, which are still paid in cash by the majority of local households, can easily be paid through BOV Internet Banking or the BOV mobile app. These systems are very easy to use, lowcost and provide consumers with the ability to take control over their finances. The wide range of ATMs found across the islands provide services such as real-time deposits of

cash and cheques, bill payment facilities and mobile top-ups. BOV credit and debit cards can be used locally, abroad and online.

BOV’s Cashlink suite of cards are free of charge and offer customers who prefer debit cards the flexibility to use them on their travels. Contactless cards have also made small purchases using cards viable for retailers and customers. Loyalty schemes for usage of premium cards provide further incentives for customers to use bank cards over cash. Fast and secure payment solutions for corporate entities and SMEs include wireless card payment terminals, cash register integration to card payment terminal, online payments, mobile payments, direct debits, electronic credit transfers, e-commerce and automated wages system.

Exciting times certainly lie ahead with innovative technologies such as instant payments, distributed ledger technologies, artificial intelligence, the internet of things, blockchain and application programming interfaces. It is up to the industry players to harness these opportunities and provide simpler and faster payment systems that will drive the Maltese into the digital payment world. This, together with the attitude of younger generations which have a greater predisposition for non-cash payment methods, augurs well for a future where digital might one day be king.

And, who knows maybe, like the Swedes, we might even start giving our Sunday mass donations through our mobile banking app!

For more information on payment options and how you can be part of the cashless society, visit any BOV Branch or drop an e-mail at customerservicecentre@bov.com Claudette Pace is a communications graduate, holds a Masters in Business Administration and works at Bank of Valletta’s Market Intelligence Unit.

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Content House Group to release Blockchain Island publication next month Continued from page 9 needed in order to help strengthen confidence in the underlying technology, and to combat concerns over weaknesses within the system. These have been exacerbated following the hacking of the world’s largest cryptocurrency exchange, Malta-registered Binance, which moved operations to Malta in 2018 and was robbed of more than €35 million worth of Bitcoin.

Moreover, this may go some way to assuage the fears of some banks, that have been hesitant to open accounts for operators in the field, and that have declined business with blockchain operators, claiming that it was outside their “risk appetite”, with concerns that it would spook their banking relationships with foreign institutions.

“The MDIA’s systems audit framework aims to raise the levels of assurances on the underlying technology,” Mr McCarthy emphasised. “This is achieved by undertaking due diligence on approved systems auditors, and scrutiny on subject matter experts,” assured Mr McCarthy. “The sector is a

“e sector is a fast-paced one, but the MDIA is attempting to remain as diligent as possible, allowing itself to keep up with the fast-paced sector.” Stephen McCarthy, CEO, MDIA fast-paced one, but the MDIA is attempting to remain as diligent as possible, allowing itself to keep up with the fast-paced sector.”

The rapid developments in the DLT sphere, are, indeed, the focus of a new, high-profile, local publication, to be released next month, published

by Content House Group. Published twice a year, Blockchain Island will be the most comprehensive guide on Malta’s initiatives in the field, featuring insight from the sector’s leaders.

The publication will focus on the latest local industry developments related to new technologies, crypto currencies, AI and Esports. It will also highlight the efforts being undertaken

by various international companies to set up shop in Malta, and track the momentum gained by various industries on the island, such as legal firms, auditors, accountancy firms, banks, consultancy firms and real estate agencies, to assist and play a crucial role in the industry’s development.

The first edition will also include an interview with Mr McCarthy from the MDIA; an analysis of the current state of play in the local innovative technology industry; an in-depth look at how Artificial Intelligence is revolutionising the Esports industry; and a round-up of the crypto and tech companies setting up in Malta to watch.

Moreover, it will put a spotlight on the next big disruptions in the local tech space.

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CASE STUDY

Heritage Malta rolls out initiatives to consolidate momentum Vanessa Conneely Heritage Malta is currently in the process of launching new exhibitions, events and audience development strategies, to consolidate the gains achieved over recent years. As a result, attendance at Heritage Malta’s attractions is expected to increase, surpassing last year’s record number of 1.6 million tourists, which gave the entity a profit margin of €459,758, Noel Zammit, the acting CEO of the entity, said.

To this end, and amongst the new inititiatves, the entity is in the process of launching campaigns involving events and exhibitions which showcase local cultural traditions. The aim, Mr Zammit explained, was to reach out “to the public by using every asset at our disposal. We have trained and dedicated people running our social media accounts. There are also assigned individuals at each site who run social media specifically from their location.”

One such social media campaign focuses on Fort St Angelo in Birgu in which the public is being given insight to what happenned in this military building during its occupation by the Royal Navy through an intriguing temporary exhibition entitled ‘Behind Closed Doors: Fort St Angelo & the Royal Navy 1906-1979’.

Spread over five different areas in Fort St Angelo, the exhibition unfolds around the history and use of this military building and the architectural modifications to address the necessities of the time.

Yet its core focuses on the personal memories of those who worked at the fort during its occupation by the Royal Navy. At the time, this military site was strictly prohibited to civilians (except on the 7th and 8th September), and had clearly defined spaces where Maltese and British servicemen were allowed to enter according to their work and rank. Indeed, during the Royal Navy occupation, only a few individuals had ever visited all the areas of the fort.

“Right from its opening, on 31st March 2019, this exhibition was very well received by the public, especially by those Maltese and British servicemen who used to work at this fort. This is evident by the spike in visitor figures and by the number of donations which are coming in, mostly consisting of uniforms and other memorabilia,” explained Mr Zammit.

Heritage Malta has also managed to increase visitor figures through its Passport programme for students attending primary and secondary schools in Malta and Gozo, giving them free and unlimited access to the agency’s attractions. This scheme also covers two accompanying adults to enter all

“We are working towards improving the Maltese Islands as a prime deepwater historical wreck diving destination.” sites (excluding the Ħal Saflieni Hypogeum and the Closed Sites), free of charge.“We received a very enthusiastic response for the Heritage Malta student Passport,” continued Mr Zammit. “Tilll now, we had around 60,000 users and the feedback we received was overwhelmingly positive.”

The initiative has been such a success that Heritage Malta has now extended the programme to include senior citizens. “People who are over 60 years can go to their Local Council to apply for their Heritage Malta Passport which will then be posted to them by the agency. Our hope is that, just like the students who brought their parents with them to Heritage Malta’s attractions, the seniors will now bring their children and grandchildren with them to

enjoy our interesting museums and sites.”

Before Heritage Malta rolled out the passport programme last year, some were skeptical about whether it would work or not, Mr Zammit stated. “We questioned its feasibility. But, while tickets sales at the door decrease, the revenue

in our shops and cafés increases, especially when children come along.”

Moreover, attention is being given to constantly innovate and augment the experienced across its sites, the acting CEO said. Indeed, to keep abreast with what other heritage organisations overseas are

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CASE STUDY

PHOTO: ALAN CARVILLE

doing, and, thus, gaining inspiration for what can be done locally, Heritage Malta visits, museums and participates regularly in exhibitions abroad. “Every year, we visit the Museums and Heritage Shows in London and elsewhere, so that we can stay up-to-date on the latest global technologies, methodoligies

and trends. Lately, we have also visited the Van Gogh Exhibition at the Tate in London,” Mr Zammit noted.

Mr Zammit has also recently visited the Royal Navy Museum in Portsmouth, as well as the HMS Victory, and has plans to travel to Istanbul to promote Heritage

Malta’s TasteHistory brand, with the aim of boosting incoming cultural tourism on the island. Indeed, this is in line with the entity’s upcoming investment of €2 million in the renovation of the Malta Maritime Museum in Birgu.

“We received funding from the European Union for this project:

we plan to allocate around €1.2 million to the restoration of some of the parts of the museum which were never open to the public, the rest will be used to digitise exhibits and create digital experiences, and that will start this year.”

This year has also seen the launch of Heritage Malta’s Underwater Cultural Heritage Unit (UCHU), set up to manage and protect underwater cultural assets. “Our islands are very rich in underwater cultural heritage.

That is why Heritage Malta is also dedicating resources to focus on what lies beneath the sea. The main aim of UCHU is to identify a number of underwater sites so that these may be accessed by divers in a controlled and managed manner. These include, among others, a 2,700-year-old Phoenician shipwreck which is the oldest in the central Mediterranean, dozens of aircraft crash sites, modern shipwrecks, as well as wrecks of battleships from World Wars I and II,” he revealed.

There are numerous shipwrecks which are well-known to the public, Mr Zammit continued. However, Heritage Malta is aware of much more. “We are working towards improving the Maltese Islands as a prime deep-water historical wreck diving destination. The setting up of underwater archaeological parks will bring a number of benefits, primarily the protection of Malta’s unequalled and precious underwater cultural resource. This is in line with

“Heritage Malta is committed to ensuring that the cultural sites which are entrusted to it are protected and made accessible to the public.” local heritage legislation and with international conventions.”

Heritage Malta is also promoting several other cultural events and exhibitions around the country related to the island’s history.

“On 7th June, we are launching the exhibition ‘Culhat al Belt: Sette Giugno 1919-2019’ in commemoration of the centenary from the events of the Sette Giugno. This commemoration is very meaningful to locals. The exhibition aims to investigate the circumstances which led to the Maltese uprising against the British colonial government, and its consequences.

Up to 31st August 2019, the exhibition will be held at the Parliament House in Valletta. Then, it will move to the National Museum of Archaeology in Valletta,” Mr Zammit explained.

Furthermore, last year saw the introduction of a medieval section at the National Museum of Archaeology, the opening of the prehistoric site of Borġ in-Nadur, and the grand launch of the national-community art museum MUŻA.“Heritage Malta is committed to ensuring that the cultural sites which are entrusted to it are protected and made accessible to the public. This year, we are working on a number of new sites, including the Main Guard Building and the underground cisterns in Valletta, to enhance the added value experience of our visitors,” Mr Zammit concluded.

For more information about Heritage Malta’s exhibitions and events, visit www.heritagemalta.org

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TRANSPORT

Malta’s historic aqueduct, built in 1615, deli to feature in its latest advertising campaign parallel that like the aqueduct, Express Tra “It was thanks to the aqueduct that Valletta and its growing population could thrive. Through the services that Express Trailers has been offering since the post-war years, our business clients and customers could keep growing and thriving, pretty much the same way the aqueduct served Valletta and its growing population. This is the raison d’être of our chosen visuals for this year,” explained Franco Azzopardi, Chairman and CEO of Express Trailers.

“When we started exploring the imagery of the aqueduct and how this could translate the messages which we wanted to communicate, we started seeing a lot of parallel aspects. The first parallel was between the aqueduct as an innovation. It is our culture at Express Trailers to be innovative, to think outside the box, to be inventive of processes that are implementable. The aqueduct is

also a structure, engineered to deliver water and our company, too, is engineered to deliver goods and commodities. Just as the aqueduct delivered the most important and essential element needed for the city of Valletta to grow and thrive, so is Express Trailers engineered to deliver the many essential things we need in our daily life,” the Chairman and CEO continued.

“We see in the aqueduct a strong symbol for all that is representative of our identity as an established logistics operator. The Express Group’s formal operations started in the late 1940s, and therefore, there’s a strong historical element in our story too.

Today, the company has built a legacy based on a set of qualities which are encapsulated in three main values: excellence, experience and expertise. The aqueduct was designed by knowledgeable people

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Express Trailers’ Legacy of Delivering

ivered the most essential resource – water – to Valletta. Now, the aqueduct has been chosen by Express Trailers . e new visuals feature the unmistakable orange trailer driven next to the aqueduct, reflecting the irrefutable ilers too has been engineered to deliver our essential everyday life commodities. who had the expertise, and passed it onto others, regaling the country with a structure which, till today, is regarded as a feat and a pure example of engineering excellence,” Mr Azzopardi said.

This latest campaign was also a thorough exercise in reinterpreting the way Express Trailers is currently perceived by those outside of the company. In fact, a lot of attention is being given to how others look at Express Trailers and those values they see in the company, which wouldmake them want to work with it.

“The values we are trying to communicate in these new visuals reflect a lot of the image that our customers have of us as a prestigious company with a long history and experience, making it a leader in the sector,” added Mr Azzopardi.

This campaign also saw Express Trailers collaborating again with

renowned photographer Rene Rossignaud with whom the company had already worked in the past when he took images of a new fleet of trucks and trailers,with Mdina as a backdrop.

BEYOND THE LEGACY Beyond its history and legacy, Mr Azzopardi singles out technology as Express Trailers’ current focus and explains how the company is investing in this aspect of the enterprise as it foresees increased business.

“Express Trailers has always harboured a lot of respect for the past and its roots but has always remained faithful to a future of further growth through investment and the application of technologies to better manage its operations. We have been pioneering our own logistics and transport management system

for the past 30 years and, currently, we are about to start actioning a completely new IT system developed specifically for us to optimize on resources and time. This new software - the culmination of a three-year project - went live last month for our full load shipments,” the Chairman and CEO explained.

This is part of Express Trailers’ commitment to innovation, he continued, which is essential as the world continues to evolve and embrace disruptive technologies, such as blockchain and AI. “Even if at Express Trailers we have been using legacy bespoke software for the last 30 years, this project is huge, both in terms of cost and the retraining of people.

The outcome of this project is expected to hit a triple bottom-line: operational efficiencies, business intelligence and customer engage-

ment. We are talking about technologies that give first attempt solutions. In logistics, we speak of explicit knowledge and tacit knowledge; there’s the knowledge acquired through transmission and training, but, then there is the acquired experience that goes beyond automatable processes, such as managing risks. Technology and software can take over the repetitive aspects of logistics but then there is the experience that can never be transposed into code.

This is where Express Trailers’ uniqueness comes into play,” he continued.

Franco Azzopardi’s conviction is that, in 2019, Express Trailers should not only be about transport and logistics but about keeping pace with new developments.

“We were looking at innovation when we developed ShipLowCost.

com to address the emerging challenges of online shopping to Malta. We sought innovation when we decided to work with DataByte who helped us introduce the concept of Managed Warehousing and when we invested in the building of a cloud-based Warehouse Management System to be able to offer innovative thirdparty logistics solutions,” he said.

“Moreover, the very idea of WeAreOrange was, in itself, an innovation too, as we blended our image with the values that best represent our company culture and we managed to make this our people’s motto. What followed was a new way of communicating both within and beyond the company. It is our way of imprinting and forging our brand among our people, and in the wider marketplace,” concluded Mr Azzopardi.

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CASE STUDY

Leading teambuilding company introduces technology to its gameplay Vanessa Conneely Outdoor Living, one of Malta’s leading teambuilding companies, has launched a new portfolio of games which harness the potential of digital technology to boost employee communication, collaboration and analytical thinking.

“A lot of research has been done which shows that people learn more when they do something they enjoy,” said founder Danica Fava. “At Outdoor Living we mix training and playing. By using simulation games, we are basically tricking the brain into learning new skills. Whether the focus is customer service, problem solving, communication, or the acquisition of leadership skills, we design a fun team event to meet each client’s requirements,” she explained.

The decision to introduce hightech into the company’s offering underlines its commitment to adapt to the market’s evolving needs, Ms Fava explained. “This is the future of teambuilding.

Technology has impacted every aspect of our lives and techbased activities offer a more engaging, interactive and dynamic experience for employees. When we first started Outdoor Living, teambuilding events were very new, and many people had not even heard of them. Back then, they were purely looked at as fun days out which included basic treasure hunts using maps and clue books, and simple beach team games. But, nowadays, teambuilding events have been taken to another level. Companies are looking for more than just a fun event. They want an experience that will, at the same

“Technology has impacted every aspect of our lives and tech-based activities offer a more engaging, interactive and dynamic experience for employees.”

time, provide an excellent return on investment. Teambuilding events also have to represent the culture and values of the company and, hence, organisations are now looking for events that match these,” Ms Fava said.

It is this ability to cater to the evolving needs of the market which has consolidated Outdoor Living’s success, ever since its launch in 2004 by Ms Fava, and her business partner, Mark Vella, as part of Synergix Group. The firm, today, has amassed a portfolio of over 100 different activities, and has invested heavily in staff training, by sending team members abroad to learn of the latest developments in the field and to “ensure excellence in each

aspect of every event we run,” Ms Fava explained. These efforts have not been in vain and, in 2016, it won a Catalyst Award from Catalyst Global, the originators of corporate teambuilding, while, in 2017, the firm was acknowledged as the Top European Sellers of Go Team Events.

And, the new activities launched are evidence of this attention to detail, placing heavy emphasis on innovative strategies in game play. The names also appeal to clients who are looking for new challenges, such as Escape the Maze, which encourages teams to navigate a ‘real world’ adventure trail to escape a virtual world mirrored on their tablet interface. “The game

is designed to test team dynamics and challenge participants’ ability to communicate effectively while on the run,” Ms Fava said. Another novelty is Quickfire, in which teams must work together to determine a series of decisions based on risks or rewards. “Here, players complete a variety of activities that have various themes and levels, which get more difficult, the higher up you go,” Ms Fava described.

The firm has also launched several apocalyptic games, such as Outbreak – Escape the Virus, in which teams decipher codes to discover a vaccination and save the world; as well as activities based on cutting-edge science.

These include Robot Revolution,

in which teams “pretend to be a group of research scientists, who have been asked to build and programme a robot that will act as a COBOT, a type of collaborative robot that physically interacts with humans in a shared work space,” Ms Fava explained.

The firm has also managed to create Malta’s first-ever Virtual Reality teambuilding activity.

“This is called The Infinite Loop and the objective is to create healthy competition between coworkers. As they play, their results are shown on a main screen. The session is fun and very fast-paced, as well as being highly competitive, so we feel it’s a great new addition to what we can offer,” Ms Fava continued.

These initiatives are all geared towards pulling people out of their comfort zone and getting their adrenaline pumping, Ms Fava asserted. “We specialise in fun and innovative teambuilding experiences that are effective and

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impart lasting values to the people and businesses who come here. This leaves workers feeling more motivated and connected to their colleagues and company,” she stated.

The games are, also, designed for both local and foreign clients, Ms Fava explained, adding that, while firms based on the island use the activities “as a fun day out or as part of their training programme,” those coming to Malta will usually book the sessions as part of a series of business activities. “We have clients who come to Malta for a conference or incentive and use our services to enhance their experience while they are visiting in order to do something different – an activity which brings all delegates together, but, at the same time, lets them explore and experience the local culture,” she said, emphasising that the teambuilding firm’s activities “are designed to be inclusive for all, irrespective of their age, physical or mental abilities.”

To this end, some of their activities feed into the company’s Corporate and Social Responsibility ethos. In Building A Dream for example, teams are asking to construct a bicycle and race. Afterwards, all the completed bikes are donated to needy children.

In another game called Horses

for Causes, people are asked to build a cardboard horse and compete against each other to cross the finish line, while their co-workers bet on who will win.

All the proceeds of the race are then donated to charity.

In another activity, known as Toy Factory, teams are given a bag of mixed wooden parts and asked to build and decorate the materials, making them into toys, which are later given to needy children.

But, in this increasingly competitive environment, Ms Fava said the entire team is aware they need to constantly push the envelope, though she is confident in the product Outdoor Living offers. “What makes us stand out from the competition is our selection of truly unmatched activities that promise to create unforgettable memories, along with our passion for our job, and this is echoed in the feedback we receive from clients after the events. We pride ourselves on being fun and creative, whilst upholding standards of excellence and professionalism.

At Outdoor Living we look forward to delivering not just events but shared experiences, to help build and maintain a strong and highly effective team,” Ms Fava concluded.

“We have clients who come to Malta for a conference or incentive and use our services to enhance their experience while they are visiting in order to do something different.”

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CASE STUDY

Local Government reform to be implemented once local councillors take office on 1st July Jillian Mallia The new Local Government Reform of Local and Regional Councils, which was published as a White Paper in October 2018, is set to be officially implemented as soon as the island’s newly-elected councillors take office on the 1st July, following last weekend’s Local Council elections.

As a result of the reform, legislative, administrative and operational changes in the way local authorites (Local and Regional Councils) are run are set to take effect. A public consultation process lasting six weeks was launched by means of a White Paper. Waste management, the Regional Councils, sports activities and amenities, as well as the responsibilities of local councillors are among the areas which have been updated.

“During the public consultation, meetings were held with all the entities that engage with the Local Councils, in some way or other, as well as with the Opposition, and citizens who live in various parts of Malta and Gozo, so that, as much as possible, this reform will be truly one for the people,” Parliamentary Secretary for Local Government and Communities Silvio Parnis said. “Meetings were also held with Alternattiva Demokratika, environmental activists, Bishop Charles J Scicluna, other ministries as well as with specific organisations, such as those dealing with youths.”

The reform will bring about the dissolution of the traditional Regional Committees and the setting up, instead, of Regional Councils, which will have more authority and take on a number of responsibilities from central government. “This reform wasn’t done for the sake of it but because there was a real need for it. The last reform was carried out way back in 2009, when the

then-Regional Committees were still about to be set up. The new Regional Councils have been given concrete responsibility and financial aid, which they had never had before,” Mr Parnis continued.

To this end, the number of Regional Councils will also, eventually, be affected. “Currently, there are five regions taking care of 68 councils, each containing about 14 councils each, with Gozo being the fifth region. During the reform discussions, a suggestion was put for-

ward to extend to six councils but, for logistical reasons, it was decided that, for now, they will remain as five. However, by 2022 there will be six regions,” Mr Parnis explained.

This will allow Regional Councils to focus all of their attention and efforts on aiding the Local Councils which fall under their remit. In the future, adding a sixth region will ensure a more efficient distribution among the councils, and a more evenly distributed workload, Mr Parnis asserted.

The reform was instituted to address the lacunae in the previous system whereby, effectively, the regions had no real authority, having no budget or financing, the Parliamentary Secretary explained.

“Now, €3.1 million is being given to Regional Councils to enable them to function more efficiently.” Moreover, as a result of the reform, councils have an increased chance of gaining access to approved EU funding since the “Regional Council can be a stronger and a more coor-

dinated ‘face’ for the project; as a result, it will stand a better chance of getting that funding approved, as opposed to a single Local Council,” Mr Parnis stated.

This additional funding will go towards helping the Regional Councils implement their portfolio of increased responsibilities which shall include establishing closer contact with the Police and the Local Enforcement System Agency (LESA) to increase security within the localities; coordinating tenders

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CASE STUDY

for waste management in order to ensure better communication among the different Local Councils within that region; and coordinating schools’ after hours, establishing which can remain open and used for extra-curricular activities. With regard to the latter, Mr Parnis stated further that “the Regional Councils will now be able to coordinate increased access to facilities within schools. For example, if a student needs a quiet place to study, they can make use of the classrooms after school hours, or the school can be used for sporting activities, and make its pitches available to third parties,” Mr Parnis said.

Housing is another sector which shall fall under the Regional Councils’ jurisdiction. “Coordination with the housing authorities will allow the Regional Councils to gain insight into which apartments within housing estates are empty. This initiative will help to address the housing problem,” the Parliamentary Secretary explained, before going on to underline the positive ramifications of this change which is aimed at catering for the needs of the residents of each locality.

The new Local Government Reform also permits 16-year-olds to contest Local Eelections, as has been widely reported. “As a Government, we wholeheartedly believe in youth participation and in their opinions, and we believe they can contribute a lot to society. We believe that society will benefit from youths’ ideas and what they have to offer. There’s a place for everyone in the councils: the ideas of both the more mature and the younger members are essential. Together, they can help the locality become one of excellence that benefits everyone,” the Parliamentary Secretary asserted.

The advantages of having Regional Councils in place are countless, according to Mr Parnis, and will “bring about improvements in the quality of life for everyone.” This will also come as a result of a process of accountability, across the board. “Every councillor will be responsible for their own sector and will need to account for all action taken within that sector and report on the improvement registered.

Studies will also be conducted in each region to determine the action needed. The ultimate aim is for each citizen to benefit,” he stressed.

Continued progress is reliant on constructive feedback, the Parliamentary Secretary continued. In fact, residents will also be able to put forward any ideas and suggestions for the council to tackle during their five-year period. Moreover, during these preliminary months, a meeting will be held so that residents can give their feedback on the improvements they would like to see in their locality, the Parliamentary Secretary underlined. Furthermore, the Local Government Reform will also work towards offering an improved customer care service which will allow citizens to call a different number if the Local Council lines are busy.

Despite these changes, Local Councils will retain their importance and autonomy. This was an essential consideration, according to Mr Parnis. In fact, the reform does not, for instance, dictate a set number of employees to be recruited by the individual councils

since the number of staff depends on the particular requirements of each council.

Local councils will be given additional support through increased funding and the introduction of contract managers, whose responsibility “will be to ensure that the projects and contracts are being honoured to the full and that they are

“Now, €3.1 million is being given to Regional Councils to enable them to function more efficiently.”

being run smoothly once in place,” Mr Parnis explained. “Funding is also being given to Local Councils, following the completion of major governmental projects, for them to be able to maintain the finished product. For example, the renovation of the main square in Paola was a governmental project. Now, the Local Council of Paola has been given the responsibility and funding to maintain the square to the best of its abilities,” he continued.

Ultimately, townscapes and citizens’ lives will change for the better, the Parliamentary Secretary stressed. “The aim of this reform, which includes strengthening both Local and Regional Councils, is that the localities shall be cleaner, more environmentally pleasant, and safer. All this work will lead to stronger localities, a better quality of life and improved collaboration between citizens and councillors.

By means of this reform, while acknowledging that there is a need to deliver more in certain sectors, the Government will continue building on past achievements and, above all, will continue making a real difference in the lives of residents,” concluded Mr Parnis.

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STOCK MARKET REVIEW

Timing of ďŹ nancial results announcements Edward Rizzo

Most companies in Malta have their financial year ending in December and, according to the Listing Rules published by the Listing Authority, issuers of financial instruments must publish their Annual Financial Report by not later than four months after the end of each financial year.

Since the majority of companies had until the end of April to comply with this requirement, a large amount of company announcements were issued during the last few days of April, informing the market that their Annual Reports were published.

The timing of the financial results announcements varied from mid-morning until very late at night.

The Listing Rules also stipulate that companies must publish an announcement to inform the market of the date scheduled for any board meeting at which any financial report is to be approved.

The market is therefore aware of the date of the board meeting and investors anxiously await the financial results to gauge the finan-

cial performance and learn about the extent of any dividend payments. Although, in most instances, companies publish their financial statements on the same day of approval by the board of directors, some announcements were delayed.

This prompted a number of investors to question whether rules should be put into place in Malta

to regulate the timing of financial results announcements.

Although there are no such formal rules in place in the UK and the US regulating the exact timing of financial results announcements, it is general practice by all companies to either publish their financial statements prior to the opening of the market or after the close of the trading session. This

would be stated well in advance by each of the companies and many financial portals publish a financial calendar every week detailing when companies will be publishing their financial statements.

In the UK, most financial results announcements are published at 7am, an hour before the market opens at 8am. This

allows investors and financial analysts some time to review the main highlights in order to make any investment decisions that may be required by the time the market opens.

In the US, there are companies that prefer to publish prior to the market opening while several others opt to publish as soon as the market closes. On certain days,

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several companies publish simultaneously as soon as the market closes with many of the wellknown news portals providing live coverage of the main highlights of the larger companies such as Apple Inc, Amazon.com, McDonald’s, etc.

Warren Buffett’s investment vehicle Berkshire Hathaway Inc has its own policy of publishing its financials. In fact, Berkshire issues its financial statements either after the market closure on a Friday afternoon or on Saturday mornings. In the words of CEO Warren Buffet, it will allow “maximum time for analysis and give investment professionals the opportunity to deliver informed commentary before markets open on Monday.”

It is generally accepted across international financial markets that market participants require time to digest the information contained within financial statements and therefore companies adhere to their strict timing before the market opens or ‘after hours’.

Many commentators argue that this ensures a level playing field for market participants with varying degrees of access to information as opposed to reporting during market hours. Moreover, some financial commentators believe that reporting after trad-

ing hours helps companies obtain increased attention from the financial media and analysts, who might otherwise be more concerned with other developments taking place during the trading session.

Since financial statements contain price-sensitive information, the publication of periodic financials creates volatility across equity markets and many companies opt to publish after the market closure so as to have their customary conference call with financial analysts later in the day and allow sufficient time ahead of the market open on the following day.

In Malta, only HSBC Bank Malta plc adopts a strategy of timely reporting prior to the opening of the stock exchange trading session. In recent years, HSBC Malta has published its financial statements at 9am on the stipulated date.

On the other hand, many companies publish their financial results at erratic times after the market closes at 3.30pm (some also well into the night) and other companies also publish their results when the market is open between 9.30am and 3.30pm. This can lead to quick trades by some investors upon receiving the news which may cause a certain degree of volatility and also catch some of

the more passive investors unaware that an announcement had been issued.

In view of the different timing strategies in Malta compared to the more organised approach adopted overseas, it could be worth exploring whether companies listed on the Malta Stock Exchange could commit to a more structured manner of the publication of financial results announcements. This could help in providing greater visibility to the investing public and also limit the stress that this may place upon some investors when such important announcements are published during market hours.

It could also be worth exploring whether there should be deadlines in place for the issuance of the announcements related to the date of the board meetings for the discussion and publication of financial statements. The companies listed on the main international stock markets issue their financial calendar of all statutory financial results announcements many months in advance and this is also important information for the investing public. In Malta, while some companies issue such statements several weeks in advance, unfortunately, many companies only announce the date a few days prior to the ac-

tual publication. This may also prove problematic in view of other restrictions in place when it comes to market abuse. In fact, the Listing Rules of the Listing Authority state that “during the period of thirty (30) days immediately preceding any publication of the Issuer’s annual results, or the half-yearly results or the quarterly basis reports, a Restricted Person shall not purchase any Securities of the Issuer nor shall he sell any such Securities.”

In view of the fact that the ‘closed period’ or ‘black-out period’ commences 30 days prior to the publication of the financial statements, it would therefore be best practice for all companies to announce the date of the publication of the periodic financial statements, at least 30 days in advance.

This would help both restricted persons and also financial intermediaries to ensure they are aware of the correct dates when ‘closed periods’ or ‘black-out periods’ commence.

Companies in Malta must emulate international best practice standards to further enhance the development of the Maltese capital market.

Edward Rizzo is a director at Rizzo, Farrugia & Co (Stockbrokers) Ltd.

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. © 2019 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved

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BUSINESS UPDATES

John Bonello appointed new HSBC Malta Chairman John Bonello has been appointed as the new Chairman of HSBC Bank Malta p.l.c., succeeding Sonny Portelli who announced his decision to step down after 12 years of service, during the AGM held in April. Sonny Portelli will be retiring as Chairman and Director of the Bank upon regulatory approval of the new Chairman.

John Bonello was appointed as Non-Executive Director of HSBC Malta in July 2013 and is presently Chairman of the bank’s Audit Committee and Member of the bank’s Risk Committee. Mr Bonello is a Chartered Accountant and a Certified Public Accountant, and was formerly the Chairman and Senior Partner of PwC in Malta, retiring from this post in December 2009.

Andrew Beane, Executive Director and Chief Executive Officer of HSBC Malta, said: “I would like to pay tribute to our Chairman Sonny Portelli after 12 years of service. Sonny has chaired our bank with distinction through a period of unprecedented change in the financial services industry. He leaves with our thanks and admiration, and we wish him and his family well for the future.”

Mr Bonello also added: “I would like to extend my best wishes and thanks to my colleague and friend Sonny. He has been an exceptional Chairman of our Board during a period of great change in our bank. His experience and personal qualities have enabled him to lead the Board with unwavering courage and integrity.”

JOHN BONELLO (LEFT) AND SONNY PORTELLI

Call for applications for the Malta International Business Awards The Malta International Business Awards (MIBA) celebrates the achievements of Malta-based businesses in international markets. It is an opportunity for businesses to showcase their products and services, and to celebrate the capabilities and ingenuity of their leaders and teams. After the resounding success of the 2017 awards, this event is now set to become a regular feature on the national calendar of major business events. The awards are conducted with the utmost

professionalism, transparency and diligence, and while this may prove a challenge for some, it is a great opportunity for ambitious companies to benchmark themselves and their internationalisation efforts against those of other companies.

The companies which commit to participate in this competition will find the experience one which improves the company’s image, while strengthening team spirit.

HSBC Malta are the strategic partners of the second edition of MIBA. Furthermore,

the awards are endorsed by the Ministry for Foreign Affairs and Trade Promotion and the Malta Chamber of Commerce, Enterprise and Industry.

MIBA is being organised in partnership with Grant Thornton, Big Exhibits and BPC International Ltd. Find out more at www.trademalta .org/miba-2019. The TradeMalta team is ready to assist with any questions you may have.

Contact TradeMalta at info@trademalta.org

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BUSINESS UPDATES

GO lowers call and text rates to the EU GO customers can stay connected in the EU with lowered rates on international fixed and mobile call rates, as well as SMSs, ensuring peace of mind.

International EU call rates have now been standardised, so rates are the same, irrespective of whether calls are made from a traditional fixed line, or from a mobile.

New lower rates also apply on SMSs sent to EU countries. This follows the coming into force of a new EU regulation which applies to all operators in the bloc.

“These regulations that came into force apply to standard call and SMS rates. However, at GO, we proactively

focus on the value added to our customers. We are proud of the fact that we are the first and only operator on the market that offers such benefits as we fully appreciate the importance of staying connected with peace of mind,” said Antonio Ivankovic, Chief Commercial Officer at GO. The EU regulation stipulates a capping of €0.22 (including VAT) for fixed and mobile calls, and €0.07 (including VAT) for SMSs to EU countries. “We are continuously reviewing our mobile plans to seek new ways of adding value to our customers” concluded Ivankovic.

Turkish Airlines passengers discover Istanbul with Touristanbul project Flying to 124 countries around the world, with its base at the intersection of Asia and Europe, Turkish Airlines continues to introduce Istanbul to its passengers with exceptional services. Touristanbul, the complimentary city tour of the flag carrier for its international transit passengers, offers a wonderful Istanbul experience for those who use Istanbul as the transfer location.

Thanks to the complimentary city tours of Turkish Airlines for those passengers with six to 24 hours of connection time, travellers have the chance to become familiar with Istanbul’s history and cultural values. Picked up at the Istanbul Airport by the Touristan-

bul vehicle, passengers are returned to the airport for their flights after the tour of the city which is accompanied by a guide.

With six different programmes every day, 365 days of the year, 67,416 transit passengers have already discovered different parts of Istanbul during 2018.

The goal for 2019 is to cater for 80,000 passengers.

PALACES AND MUSEUMS DRAW GREAT INTEREST Flying to most countries in the world, Turkish Airlines prepares its Touristanbul programme with its flight plan in mind. With six different tours organized

every day, passengers can attend the one most suited to their flights. Cultural landmarks, such as the Blue Mosque, Hagia Sophia, Topkapı Palace and Caferaa Medresseh, draw great interest from passengers.

EVENING TOURS AT BOSPORUS BEGAN ON MAY 1ST Within the Touristanbul project, Turkish Airlines started its evening tours at Bosporus on the 1st May 2019 for those passengers with flights late at night.

Taking place from 6pm-11pm, local time, tours will take the passengers to a journey between the continents of Asia and Europe.

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BUSINESS UPDATES

It’s the “Maria Grazia Onorato” – the bridge between Italy and Malta VALLETTA 19th of May 2019 - The M/V Maria Grazia Onorato arrived at the port of Valletta on her maiden voyage, looking to become the ‘bridge’ between Malta and Italy, providing strong foundations upon which to build stronger synergies between the two economies.

The M/V Maria Grazia Onorato, which is the flagship of the Onorato Group, comprising the Tirrenia and Moby fleets, is the largest operating ro-ro type of vessel, the greenest within its category, equipped with the latest generation scrubbers. Built in the German drydocks of Flensburg, the vessel is destined to create a real revolution on the most important route of the Motorways of the Seas, that connecting the ports of Genoa, Livorno, Catania and Valletta. Her garage decks have a capacity of 4,200 linear metres of cargo, an exceptional loading capacity for trailer operators and Maltese businesses.

With the M/V Maria Grazia Onorato, which will join the other vessels already operating on the same route, Tirrenia will strongly increase its product-offering. “Tirrenia, with this ship”, stated Alessandro Onorato, Vice President and Commercial Director of the Group, “will provide the best service for the country, in terms of service offering, reliability and punctuality”.

The ceremony for the maiden voyage and the exchange of crests was attended by various representatives of the Maltese Government, including the Deputy Prime Minister, Dr. Chris Fearne, the Minister of Transport, Dr. Ian Borg, the Minister of Tourism, Dr. Konrad Mizzi, as well as members of the Onorato family, who are currently focusing on huge investment plans to include new ships within both the ro-ro cargo and ferry-passengers sectors. “Our relationship with Malta keeps growing stronger day-by-day thanks to a long-standing tradition of reliability, efficiency and, most importantly, friendship. Together with our Maltese partners, we will continue striving to remain market leaders in the years to come,” concluded Alessandro Onorato. Since the 1960s, Tirrenia has been proudly represented locally by S. Mifsud & Sons Ltd (SMS), who are the main point of reference for local clients’ requirements.

Argus Acquires FirstUnited Insurance Brokers in Malta The Argus Group has just announced its intention to acquire FirstUnited Insurance Brokers Limited (“FirstUnited”), an insurance brokerage firm that provides professional insurance broking services to individuals and businesses in Malta. The transaction is subject to receipt of all regulatory approvals.

For many years The Argus Group has successfully operated independent brokerage and insurance companies in Bermuda, Gibraltar and most recently in Malta, inclusive of Argus Insurance Agencies Limited and Island Insurance Brokers Limited. This latest acquisition is very much part of Argus’ strategic intent to diversify and expand its global business operations outside of Bermuda. Adding FirstUnited to the Argus Group strengthens its international presence and expands its existing broking capabilities in the Maltese market.

Alison Hill, Chief Executive Officer, The Argus Group, said: “I’m delighted to announce that Argus is acquiring FirstUnited to help broaden our global footprint. The market leading reputation of FirstUnited’s client-centric culture, technical and employee benefits expertise and service excellence align very strongly to the Argus brand, making FirstUnited a very natural fit with the Argus Group.”

Ms. Hill also noted, “The Argus Group Management and Board recognise that Malta has a proven track record of strong economic development, has exciting market growth potential and many commonalities with the other jurisdictions in which we operate. We are excited and committed to growing our presence in Malta, where we have operated since 2010 and the acquisition of FirstUnited is a significant step in that direction.”

Salvino Mifsud Bonnici, Chairman of FirstUnited, said: “Joining the Argus Group is a positive step for our company.

The size of Argus means that FirstUnited will benefit from access to global financial services professionals, technology and resources, including a strong regulatory, governance and compliance regime, enhanced internal business processes and best practice procedures that will improve our client offerings.”

Under the terms of the acquisition, FirstUnited will retain its name and continue to operate independently from other Malta-based businesses within the Argus Group. FirstUnited senior management will continue to lead the company, operate from their existing office location, and retain the FirstUnited brand. FirstUnited employs 25 people and there are no planned redundancies as a result of the acquisition.

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e Malta Business OBSERVER

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May 30, 2019

BUSINESS UPDATES

AML transaction monitoring – 3 best practices for your business In order to counter the risks of money laundering and terrorist financing, businesses must have in place a proper system for transaction monitoring. It should give you the confidence that you are in control to make the right AML risk decisions.

The responsibility of reporting suspicious transactions was emphasised after the first AML Directive was introduced in 1991, and as the years go by, this obligation becomes even more critical. Here are three best practices to incorporate into your AML transaction monitoring process.

1. Proper risk analysis at client level The better your KYC procedures are, the easier it is to identify discrepancies between a customer’s risk profile and a given transaction. Fully integrated KYC and transaction monitoring tools

mean that the information collected at client on-boarding can be used to update the parameters of the transaction profile.

Compared to operating two separate systems, this saves time, increases efficiency, and prevents the potential loss of important information.

2. Comprehensive and current transaction profiles Profiles should be kept up-todate with all account details and beneficiaries noted, payment amounts, and their frequency established. The information should be clear and easy to understand, with relevant supporting documents provided and the profile saved as part of the client acceptance file. The identification and monitoring of these transactions can be automated by establishing key parameters such as regularity, amount, and frequency of payments.

3. Reassessment of previous and related transactions Should an unusual transaction be flagged, you should go back and review previous and related transactions. This process can provide insight to any possible patterns of unusual activity, followed by a review of the client’s transaction profile. The 4th AML Directive even recommends that the effectiveness of a company’s transaction monitoring process be reviewed on a regular basis to allow a trend analysis to be carried out. Therefore, full access to past data is crucial.

Enhance your AML Transaction Monitoring with AXON AXON AML Transaction Monitoring enables organisations to detect suspicious behaviour quickly and effectively. It optimises transaction monitoring by automating processes in order to minimise unnecessary alerts,

while also offering real-time notifications and reporting. With AXON, compliance teams become more accurate and efficient in their monitoring of potentially suspicious transac-

tions. Visit www.computimesoftware.com or email info@computimesoftware.com to learn more about AXON and how it can help your business fulfil its regulatory requirements.