The Malta Business Observer, 23rd September 2020

NEWS Issue 114

| September 24, 2020

Distributed with Times of Malta

Budget 2021: continued COVID assistance top priority for companies

A European Union Digital Services Act will establish a truly level playing field on the internet marketplace, which will benefit both companies and consumers, says MEP Alex Agius Saliba see pages 6, 7 >

Rebecca Anastasi Ahead of next month’s Budget 2021, private sector companies, across a spate of industries, have insisted on the necessity for further measures to mitigate the financial fallout from the COVID-19 pandemic.

Speaking to The Malta Business Observer, these firms and SMEs – which operate across various sectors, including retail, food and beverage, financial services, legal, and travel – have said the unprecedented situation requires additional aid for companies to digitise or to, simply, survive the challenges which lie ahead in 2021.

“Let’s face it, we are in the middle of a financial crisis caused by a pandemic. We have never been here before, in recent history,” Dr Joseph F. Borg, Partner at legal firm WH Partners said, adding that “it is safe to say that it will get worse until it gets better.”

As a result, he felt it would be “presumptuous” to expect small businesses to have enough liquidity to digitise – despite the increasing necessity of doing so in a highly-volatile situation brought on by the pandemic. For the legal and tech expert, the Government

BUSINESS OPINION

Jeanette Borg, the Founder of Malta Youth in Agriculture Foundation (MaYA), outlines the current status quo in the agricultural sector, and calls for action to ensure economic growth in this area. see page 13 >

should help businesses adapt to a new environment.

“This pandemic has taught us how important it is for businesses to go online. In fact, I believe it was a lifeline for those that were already equipped. Government should intervene financially and encourage small and medium sized businesses to digitise,” he insisted.

He added that Government should also implement measures assisting businesses to look beyond Malta’s borders, with incentives tied to the exportation of products and services, while also encouraging the private sector to capitalise on the advantages of going digital. Thus, he underscored, “incentives and measures should also encourage

automation and the use of technology to replace manual processes that render businesses slow and uncompetitive.”

He also asserted that he believed in “the principle of leading by example” and, as such, the authorities “should pledge to improve its online services and continued on page 3

CASE STUDY

Carm Cachia, the Chief Administrator, eSkills Malta Foundation, underscores the necessity of continuous education, across all levels, for Maltese businesses to reap the rewards of a technologyliterate society. see pages 14, 15 >

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Businesses worried about VAT and SS postponed payments due 2021 continued from page 1 partially phase out their physical services for people under the age of 60,” adding that, “in 2020, there is no excuse for people under the age of 60 not to learn how to use technology in their day to day life.”

Moreover, help, in more direct forms, through the continuation of the Wage Supplement Scheme and incentives on VAT and social security contributions, is also necessary, insisted Abigail Mamo, the Chief Executive Officer of the Chamber of SMEs. “If I had to explain the focus of businesses at the moment, it would be of getting through COVID and coming out of COVID stronger.

That is what our members are asking from us,” she explained, adding that, using the feedback from members, the Chamber has formulated 19 Budget proposals.

“COVID-19 has had a widespread effect on all businesses and, therefore, in our proposals there is something for all businesses. There are many sectors, however, that have been hit worse and a number that have been hit very badly, and our proposals are reflective of this reality,” she asserted.

To this end, the Chamber of SMEs’ proposals include maintaining the Wage Supplement till March 2021 “so that businesses can have their mind at rest that

they will be able to retain their precious employees for the coming six months”; lower income tax levels to encourage more investment and to help businesses “get back on their feet”; as well as lower VAT rates to make goods and services cheaper and encourage spending in view of current uncertainty and lower affordability.

These proposals, she said, “focus on keeping more money in businesses’ and people’s pockets” and “by implementing these proposals we want the Government to help businesses and the general public to start making up for all the COVID losses and rebuilding trust in the market,” she explained.

She also pointed to the preBudget document’s emphasis on digitisation and sustainability, saying these have been at the

forefront of business owners’ minds in the wake of the pandemic. “Businesses are using these hard times to think about how to re-model their business to be more competitive and ready more than ever for future challenges. Planning is one thing, investing during such challenging and uncertain times is another.

The SME Chamber is therefore calling on bold schemes that will invest heavily in businesses taking decisions in the right direction,” she stressed.

And, taking the long-term view, the CEO said that while these proposals – as well as others like them – might seem to put “a heavy burden” on state finances, in reality, they will ensure that “state finances will return back to health with businesses surviving and strengthening. Everyone stands to gain with

businesses getting through this crisis and coming out stronger.

Likewise, everyone stands to lose if they don’t,” she underlined.

These comments were corroborated by small businesses on the ground. Indeed, one of the main concerns, according to Julian Galea, the owner of Kantina Café in Valletta, is the upcoming VAT and social security payments, due in spring 2021, after having been pushed back as a result of COVID-19. “These have been postponed, so eventually they will need to be repaid,” he said, worried.

“We’re going to have to pay all the VAT and social security contributions for this year and for the first three months of 2021 at one go. So, next year, there is going to be a cashflow problem.

This is our biggest concern,” he asserted, going on to explain that

businesses in Valletta have been hit particularly badly.

“Usually January, February and March are loss-making for businesses in the capital. And we tend to recover any losses from May onwards. But, this didn’t happen this year since many clients flocked to sea-side spots instead.” Part of the issue, he continued, is the proliferation of restaurants in Valletta – “there are too many for the limited numbers in Malta and for the rate of tourism we’re seeing,” he said.

He insisted the virus numbers need to be controlled and advocated for mandatory testing at the airport to encourage consumer confidence. “We need to get our numbers down”, he said.

In the meantime, however, and ahead of next year’s Budget, he called for subsidies on VAT and social security to be introduced.

“We need a clear direction on VAT, particularly. Perhaps, a scheme could be introduced to help businesses deal with any penalties they might incur, or a good repayment system can be implemented with no interest.

This goes for social security too,” he said.

These sentiments were also echoed by a retailer, with various outlets across the island. “The Government’s assistance to date has been helpful if not crucial in keeping many retailers and businesses afloat and thus safeguarding continued on page 5

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Set up Ministerial internal control units reporting to Brussels, financial services firm says continued from page 3 many jobs. Unfortunately, it appears that this pandemic is here to stay for the foreseeable future and thus state assistance must continue,” he said, asking to remain anonymous.

“Crucial” Government measures for Budget 2021, in his view, were to extend the COVID Wage Supplement assistance beyond October; to distribute new Government vouchers for businesses including retail with an expiry date of 31st January 2021; to continue rent/electricity subsidies for as long as the funds become quickly available; and to introduce VAT reduction on small companies with a turnover of up to €1 million.

“Obviously if the bracket was increased [for VAT] it would also be welcome. By reducing VAT, retailers can maintain the previous price levels, thus increasing margins and profitability which will compensate for the reduction in sales to some degree,” he explained. Moreover, elaborating on the extension of the voucher system, he insisted that the end date should depend on when they are issued and circulated, with a four-month expiry date recommended and adding that “a 40-60 split will be more helpful to retailers” as opposed to the 8020 split of the last set.

Echoing the comments of Dr Borg, the retailer also said that companies in his sector must “develop an Omni channel business”,

since the loss in turnover can only be compensated by a strong online presence. “It is in the Government’s interest to incentivise online trade as otherwise less VAT and corporate tax will be collected locally. Unemployment will also rise further, impacting the Government’s finances. Therefore, schemes that contribute financially towards the set-up of an online business, which are easily accessible, would be most welcome,” he said.

Speaking from the perspective of an operator within the travel sector, the Chief Executive Officer of ROCS Group, Colin Nicholas Aquilina said that business opportunity in 2020, and even in 2021, has been “wiped out” with an equivalent depletion of any revenue generated in 2019.

“In our opinion, the upcoming Budget should focus on protecting the business community which has been very badly affected and re-establishing confidence in the market. From travel to insurance to retail to jobs, we noticed a drop in business in all divisions ranging from 100 per cent to 65 per cent,” he specified.

He attributed this, in part, to Malta’s small size and internal market which meant that “the minute tourism drops and internal consumption declines in view of a loss in confidence, business in general suffers, creating a domino effect on cash flow, loss of jobs and so on.” In light of this, the forthcoming Budget, in his view, “should address our sector by pro-

tecting local businesses from collapse” as a result of the pandemic, as well as work on “restabilising confidence in the local market by injecting funds in the local economy and introducing particular initiatives to guarantee market performance.”

Asked to comment on the preBudget’s focus on the improvement of infrastructure and sustainability, Mr Aquilina said these “should be high on the agenda”, though he didn’t believe the former was Malta’s biggest issue. In his view, long-term sustainability was the more difficult challenge. Moreover, new technology sectors should be of priority, though he emphasised that “apart from the support within the Budget framework”, the respective regulatory bodies should be “open for new concepts”, thinking outside the box to ease the transition to new technologies.

However, COVID-19 is just one issue at the forefront of concerns in the private sector. In a markedly different industry – that of financial services – one firm has said that “without any doubt” the most pressing priority for Budget 2021 was good governance, transparency and the fight against financial crime.

NOUV’s Managing Partner, Mark Aquilina, commenting together with Andrew Naudi, NOUV’s Technology Partner, said that the Government must “continue investing in, or increase the budget and contribution of the respective authorities – the MFSA,

“If I had to explain the focus of businesses at the moment, it would be of getting through COVID and coming out of COVID stronger.” – Abigail Mamo, Chamber of SMEs CEO FIAU and Economics Crime Unit – by engaging more experienced personnel”. Along the same lines, it should “finance a study on the introduction of an anti-Corruption court or an economic crime tribunal” as well as, perhaps more controversially, “set up internal control units within the Ministries that report directly to Brussels.”

Other measures which, in their opinion, should be announced in Budget 2021 are heavy investment in modernising business processes, including digitisation within the public service; schemes to educate the public service on anti-corruption; the financing of a study on how to revamp the remuneration system for MPs, Ministers and the PM including pension schemes; and – looking more broadly, from an economic perspective – financing research into how to reinvent our services sector and introduce new industries.

“We believe that the Budget should show a clear and effective commitment from Government towards the promotion and im-

plementation of good governance across all entities, public or private, in Malta,” they said, going on to reflect on recent political events and on their connections to the wider economy. “We would like to see politicians leading by example. Ideally, all those who contributed to this situation must be brought to justice. Only then, will the country be taken seriously and seen taking concrete action.

Change must start from the very top. Over and above everything else, we need a culture shift.”

To achieve this, “Government must start by showing its commitment by investing funds and resources in the setting up of proper committees and boards to combat corruption; provide leadership in creating transparency standards; actively assist organisations in the implementation of transparency and accountability efforts; support and assist forums on anti-corruption; and educate civil service in anti-corruption matters,” they said, insisting that the authorities must “look within and fix within.”

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EU’s Digital Services Act would be giant step ahead, says MEP, but fears remain Ray Bugeja While those pushing for the proposed Digital Services Act package consider it a giant step ahead, even to ensure a level playing field on the internet marketplace, there are fears, amongst stakeholders, of the move leading to over-regulation in the field, according to comments received by The Malta Business Observer.

As Rapporteur of the European Parliament’s Committee on the Internal Market and Consumer Protection (IMCO), MEP Alex Agius Saliba knows the proposals contained in the Digital Services Act Package like the back of his hand.

This package, which was open to a public consultation until recently, aims to supersede the EU’s e-Commerce Directive (ratified in the year 2000), updating it for the challenges being presented by increasing development and activity in the digital sphere. Among other things, it aims to present “a modern legal framework to ensure the safety of users online and to allow innovative digital businesses to grow, while respecting the basic principles underpinning the current legal framework of the e-Commerce Directive,” according to the European Commission.

“What is being proposed is a comprehensive reform of the eCommerce Directive and the possibility to include this in the scope and content of the future Digital Services Act”, Dr Agius Saliba explained. The objective, he continued, is “to address the current shortcoming and make the e-commerce sector more resilient in the future.” He acknowledged there is no silver bullet to solve all the problems but then, discussions must start from somewhere.

Elaborating, he noted that the COVID-19 pandemic is showing the resilience of the e-commerce sector and its potential as a driver for relaunching the European economy in the post-crisis world.

“E-commerce will definitely be part of the solution,” he said. However, he pointed out, the pandemic has also shown how vulnerable EU consumers are to misleading trading practices; to the selling of fake or illegal products online that are not compliant with EU safety rules; and the imposition of unjustified and abusive price increases; as well as other unfair conditions.

Thus, the new rules “should cover all digital services, including those that are not established within the EU itself but provide

their services to EU consumers,” the Labour MEP said, adding that the proposed package should guarantee a high level of consumer protection, users’ safety and respect the broad framework of fundamental European rights.

Online and offline economic activities should be treated equally and economic operators, especially micro, small, and mediumsized enterprises, would have the legal certainty and transparency they need and deserve, he added.

The package, Dr Agius Saliba went on, should put forward a proposal for ex-ante rules to ensure that the systemic role of specific online platforms will not endanger the internal market by unfairly excluding innovative new entrants, including SMEs and start-ups.

The package is still being formulated, however. IMCO is one of three European Parliament committees that have submitted their own initiative reports on the proposed package. The other two are the Legal Affairs Committee (JURI) and the Civil Liberties, Justice and Home Affairs Committee (LIBE).

All three reports are expected to be debated in a plenary session at the beginning of November, with the European Commission likely to publish a so-called legislative initiative some time in December.

That would set the ball rolling for the proposals to become law, something that can take anything from a few months to a couple of years, though delays of up to five years are not unheard of.

Commenting on the progress being made, the MEP agreed that Europe is lacking the edge in its ambitions to become a digital

“e bottom line is raising the bar, even on a global level.”

– Alex Agius Saliba, MEP force. Thus, legislating in this regard is a very urgent matter. “Although there is agreement that strict standards are a must, the real problem lies in dealing with online marketplaces,” he added. Latest studies show that about 40 per cent of purchases within the EU are done online, 60 per cent of which from third-country sellers, he explained.

As things stand now, he continued, European producers and distributors are disadvantaged and consumers are not as protected as they should be.

The forward-looking plan, aimed at covering the next two decades, will revolutionise the internet and digital sector, the Rapporteur asserted. “It will tackle all the issues related to competition, privacy, safety and fundamental rights. It will boost user confidence but also ensure a level playing field, also laying down that what is illegal offline is illegal online,” he added.

The proposed package will not address the issue of harmful content because the EU is planning to take another initiative in that direction, he said.

More transparency is a must, Dr Agius Saliba noted, explaining there are inherent dangers that most users do not even realise.

For example, through vertical integrated applications, big companies are able to condition

consumers’ decisions when making online searches. Through such systems, the first 10 products offered to consumers are not usually what they want or exactly within their price range but, rather, items or services the company has an interest in marketing or retailing.

When searching online, according to studies, there is an 80 per cent probability that the buyer will choose one of the first eight items or services listed, he asserted.

Giving some insight on the discussions happening at EU-level, Dr Agius Saliba said that IMCO is proposing a total ban on vertical integration in cases where the platform is identified as being a systematic operator having a gatekeeping role. This, the MEP explained, should result in the removal of any “hidden agendas”, meaning searches will be more transparent and better meet the user’s requirements.

The proposed provisions, Dr Agius Saliba argued, will lead to a safer use of the internet as well as more detailed information and visibility, apart from determining who will shoulder responsibility if something goes wrong.

“The bottom line is raising the bar, even on a global level,” he asserted, adding that higher European standards are likely to lead other contents to follow suit.

It was felt that it would be better to have European-wide standards and control because leaving the matter up to individual members states risks becoming a race to the bottom, the Rapporteur said.

Indeed, his report pushes for a central regulatory authority responsible for oversight and compliance with supplementary powers to tackle cross-border issues and which is also empowered to investigate and enforce the rules.

Technology expert Alex Grech feels that, at face value, the primary objective of the Digital Services Act Package is to replace the current framework established by the eCommerce Directive and create a regulatory framework for digital services with revised rules for the Single Market for Digital Services.

In practice, however, he considers the proposed law as another European attempt at addressing the challenges associated with illegal and damaging forms of online content, primarily shared over large social media platforms owned by operators in Silicon Valley, China and Russia.

“This new European threat of regulation has inevitably opened another can of worms with implications not just for Facebook and Google but also citizens concerned about individuals’ rights to freedom of expression and privacy,” Dr Grech, a University of Malta lecturer and Executive Director of the Commonwealth Centre for Connected Learning, insisted.

In attempting to secure jurisdiction over and harmonise platforms’ content policies, he continued, the EU is trying to mitigate many socio-economic and political risks associated with the operations of privately-owned, unregulated social media platforms with millions of users whose content and interactions are considered as proprietary data by the same platforms’ algorithms to fuel business models dependent on targeted advertising.

The consequences, the consultant, educator and strategist pointed out, are now that phenomena that have become mainstream in our vernacular: fake news, surveillance capitalism, election hacks, Snapchat dysmorphia, trolls, cyber-bullying, attention deficits, echo chambers, polarisation, and hyper-partisanship.

“There are many who believe that we now live in a post-truth society. Just watch The Great Hack or The Social Dilemma, currently streaming on Netflix, for a quick immersion in the associated

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harms for society, public discourse and democracy associated with the dominance of digital platforms such as Facebook, Google and Amazon,” he observed.

COVID-19 made us even more reliant on social media to remain ‘connected’ in times of social distancing, Dr Grech noted, adding that the network effects and a closed proprietary environment resulted in digital markets with platforms operating as gatekeepers to data that was never produced by them in the first place.

He explained that the EU is not just concerned with the issue of barriers to new competitors trying to enter the same market because its concern is also about the user rules of the privately-owned platforms. None of us, he pointed out, ever has the time to read the terms and conditions of the social media we use daily, every minute of our day, and access through our ‘always-on’ mobile devices.

Such platforms are used for free for the most basic forms of private communications and exchanges including to access ‘news’ from mainstream providers and alternative sources as well as to buy

and sell stuff online. In practice, there was never any free lunch and most do not care about what happens to their data, the university lecturer said. “We are the product. It is just part of the way things work with social media.

Until it is too late,” he added.

In his view, many of the associated risks with the implementation of the Digital Services Act Package are related to concerns about draconian internet governance as more regulation inevitably means less freedom.

“How can we mitigate against the worst excesses of powerful, unregulated platforms and their unsolicited use and distribution of AI-informed data, developed by others, while ensuring freedom of expression and speech which are the cornerstones of media regulation in member states?”, he asks.

“The new responsibilities associated with filtering, detecting or removing vaguely defined forms of legal, but harmful, online content mean that regulators and operators have to disentangle relationships and interactions that are at the core of the business models of the majority of online

platform providers. The backlash includes claims that, in its attempt to regulate a ‘healthy’ digital ecosystem, the European Commission is bundling all platform owners in the same pot,” Dr Grech asserted.

Size does matter online and while Facebook, for example, has a history of facilitating the worst excesses of online abuse, it is vital that smaller platforms are not obstructed in imagining alternative models that are more transparent in a truly competitive environment, he further noted.

There are similar concerns, Dr Grech continued, that the European Commission needs to propose clear rules on the responsibilities of large platforms focusing on media content and news. He explained that Brussels is working on various projects to promote interoperability across member states through technologies such as blockchain. He thinks it could start by introducing interoperability requirements for large platforms as opposed to serving a one-size-fits-all solution.

The corollary is that it is not in the interest of the dominant

“e Digital Services Act Package is unlikely to have a quick ride.”

– Alex Grech social media platform providers, or Google, to untangle the web of relationships or divulge the workings of their algorithms, for the matter, the technology expert noted.

“So, the Digital Services Act Package is unlikely to have a quick ride. Although the consultation process is closed, no timeline has been set for when the European Commission will respond to the feedback from the consultation,” he said.

Earlier this month, Dr Grech asked Joe Toscano, a former Google Experience Designer and one of the technologists portrayed in The Social Dilemma, if he thought regulation such as the proposed package was the answer to curb the ever-increasing power of proprietary social media platforms.

He deemed the answer he was given as eloquent: “We do not need regulation as much as we need digital literacy. Yes, we need better, more ethical technology than what we have now, where power is vested in 30-year-old software developers working for a small number of huge, private companies operating as gatekeepers of truths,” he said.

“I think we will get there in the years to come, particularly as we lose our dependence on coders to code. But, first, we need citizens to understand the scale of what is happening now and how we need to respond. That demands a change in our behaviour. If we are the product in social media, we have to change what we do, how we think, who we are online. We need to get informed. That demands better education, even if it comes in the form of movies like ours.”

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PROPERTY

Property market “in buoyant mood”, yet challenges persist Ray Bugeja Despite a degree of buoyancy in the property market, there is some concern, felt by local agencies, over the prospects for the months ahead.

Michael Bonello, Chief Executive Officer of Alliance, a newly formed real estate agency, considers the relaxation of the COVID-19 containment measures over summer as being “a very small window of opportunity” to launch the new brand. He added that notwithstanding the current scenario, the launch was successful and staff and property advisors on the ground have been following all the guidelines and taking all the necessary precautions to ensure they protect themselves, their clients and the contacts they meet every day.

The CEO, however, acknowledged that, at times, there was some apprehension when it comes to home viewings, which, he said was “very understandable”, with every case being dealt with as necessary to ensure everyone is kept safe and comfortable.

As to the performance of the market itself, Mr Bonello pointed out that some revenue streams, such as speculative investments, buy-to-let and rental market properties in general, have been very seriously hit by

COVID-19 and it remains to be seen how these will recover in the longer term.

He reported there was a substantial, albeit temporary, increase in sales demand for property during July and August, as the agency started catching up with the backlog of transactions that had stalled during the partial lockdown period, when notaries and banks were not operating as usual.

The lowered property tax introduced as part of Malta’s economic stimulus package had the desired effect of motivating buyers to conclude purchases sooner rather than later, thus also increasing demand, he continued.

“Right now, our property advisers are seeing a more buoyant mood among both buyers and sellers, with the general feeling being that we have been through the worst shocks of the pandemic crisis and, from now onwards, things are bound to continue getting better. Having said that, the increasing numbers of COVID-19 cases are now of some concern and we cannot really forecast where demand will go in the future,” the CEO asserted.

One major change being noticed, he went on, is that the agency is getting many more requests for properly considered professional appraisals.

Whereas, before, some owners would determine prices based on

their own hunches and then ‘bump them up’ a bit more to make some room for negotiation, now more and more owners are opting for services such as the agency’s Alliance Selected Package, in which a dedicated think tank of experienced agents appraises properties based on upto-the-day research and reliable knowledge of similar units, location, and so on, he explained.

At the same time, the agency is also noticing price reductions on properties that have been on the market for far too long.

“So there definitely is some visible market correction going on, especially where demand is lower than in other areas or where owner expectations were raised to unrealistic heights. The effects of the Wage Supplement aid packages and bank moratoria, tapering off in the coming weeks and months, remain to be seen. Motivated sellers may then be forced to reconsider their prices or accept lower offers – more so than before,” Mr Bonello pointed out.

He was quick to acknowledge that the sector never experienced anything like this before, meaning there are, still, many question marks about the reliability of any forecasts and assumptions.

What is certain, the CEO observed, is that, by now, many within the industry consider this new reality as a new way of life –

one they just have to get used to.

He noted that, as a company, Alliance is very fortunate to have launched its new brand at this time because the partial lockdown up to June gave it more time to focus and develop its brand with a built-in post-COVID19 mindset.

He mentioned examples to illustrate his point: prop-tech solutions, such as 360° scanning of properties and 3D viewing technology, enabling clients to tour properties remotely, are now standard procedure. The agency continued on page 10

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Property prices expected to remain stable, leading agent says continued from page 9 has also built a very powerful database system and online presence, which it is constantly updating and enhancing, to be able to serve clients more effectively through digital media.

In the CEO’s view, the biggest challenge for all is overcoming their own fears of the unknown.

It is natural that all are concerned with the rising number of cases of infection, especially those who have vulnerable people in their families, Mr Bonello remarked.

Similar trends, he pointed out, are prevalent in many other countries around the world. “By now, we must be resigned to the fact that this is the situation we are living in and the only very limited control one can have is to protect ourselves and those around us,” he advised.

Asked whether Government incentives are adequate or whether they need modifications, Mr Bonello replied: “Very substantial and effective incen-

tives have been announced by the Government and it would be presumptuous of us to try and evaluate their adequacy for society at large.”

He pointed out that, since many of the people working in the industry are self-employed taxpayers, estate agents did not receive any wage supplements or direct support of any kind.

The property tax incentives pushed forward by the Malta Developers’ Association and adopted by the Government, did offer some respite because the market flourished, at least up till now, he continued, noting that, considering how badly some industries were hit, this is relatively good news for those working in real estate.

However, some people lost their livelihoods, some owners were forced to close down businesses and many are facing a very uncertain future, he pointed out. “Eventually, the ripple effects of this economic fallout are bound to effect other industries, perhaps even

ours. So, from that standpoint, we can claim that nothing is really adequate but, realistically, we do have so much to be grateful for,” Mr Bonello concluded.

In the meantime, Douglas Salt, Director, Frank Salt (Real Estate) Ltd, noted that there was an instant reaction once the market was able to open up again. A percentage, he explained, was pent up demand as a result of people having to put their purchase plans on hold due to their inability to visit properties as owners were fearful of strangers visiting their homes, adding that the Government measures helped stimulate further and kill off any possible procrastination.

First time buyers “were strong” and holiday homes in Gozo as well as properties with outdoor space and villas selling under €1.2 million did well, the Director reported.

Prices remain stable, Mr Salt pointed out, adding he envisaged a “straight line in pricing” for the next few months.

“ere definitely is some visible market correction going on.” – Michael Bonello, Alliance CEO “The industry will, undoubtedly, face many challenges dealing with the rollercoaster of emotions surrounding COVID-19 and the uncertainty of what is next, but, as is happening elsewhere, in times of uncertainty an investment in property is considered one of the best options, in terms of long-term stability,” he asserted.

Keith Galdies, CTO at Djar, a real estate online listings platform, noted that the measures introduced by the Government acted as an incentive to drive sales and confirm existing promise of sale agreements.

Data collected by his company has shown that these measures have kept property prices afloat

across the second quarter of this year and the increased sales in July are a consequence of little-to-no sales recorded in the previous months.

Some categories performed better than others. In fact, Mr Galdies pointed out, there was a slight increase in the price of both terraced houses and villas over the last quarter.

“Overall, the current picture still shows a standstill in prices with very minimal negative growth rates in most regions.

The challenges faced by the property market in the next few months will come down to whether it will be able to sustain the prolonged pressures brought about by COVID-19,” he said.

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EDITORIAL

Collective responsibility At the beginning of this month, the Minister for Finance and Financial Services, Prof.

Edward Scicluna, presented his pre-Budget 2021 document, entitled Towards a Sustainable Economy. In it, he laid out the priorities of the Government for the upcoming year, amongst which are: sustaining Malta’s economic sectors – particularly in the wake of COVID-19; strengthening new technology sectors; protecting the environment; social welfare; education; upgrading infrastructure; enhancing economic growth in Gozo; as well as good governance and the fight against financial crime.

It’s a roll-call of steep ambitions, particularly in light of recent events. The coronavirus pandemic has not only scuppered any chances of solid profits for this year, but, for many businesses, it has also decimated 2019’s revenue. As can be seen in our cover story for this month’s edition, the priority for many local companies is to get public help well into 2021, since the financial fallout from COVID-19 is expected to last well into next year. Indeed, the concerns raised by these enterprises – which span a gamut of sectors, from retail, to F&B, tourism and legal – have been recently compounded since, with virus infections fluctuating dramatically, there seems to be no end in sight to the economic, social and health dangers brought about by the pandemic.

“Yet, like much else, the solution to getting the situation under control is our own collective behaviour.”

Yet, like much else, the solution to getting the situation under control is our own collective behaviour, for the infection rate can only be stabilised if we all follow the directives being issued by the Health Department – and no one else. And our collective behaviour can also produce results in fighting another virus which seems to be endemic on this island – that of corruption, and the silence which shrouds the shameful and undemocratic behaviour of our political class and their associates.

This week saw the arrest of Keith Schembri, following the conclusion of the magisterial inquiry into passport kickbacks, initiated by the former leader of the opposition, Simon Busuttil. Though Mr Schembri was let out on bail 20 hours later – with the situation still evolving – there is some relief that the stranglehold he once seemed to hold over this country might, finally, be ebbing, though, of course, it’s too early to

say that justice will be served. It’s only when all those implicated in the rot which has captured this country – from whatever side of the fence they sit on, in whatever position they hold – have been held to account, that we can say progress is being made.

But we need to go further. For, the upheaval of the past few years would not have been possible without the silence of the majority, who, fearful of political repercussions on their businesses, or their livelihoods, preferred to stay quiet rather than stick their neck out for the sake of a democratic country. Conscientious free expression – not defined as a ‘free-for-all’, where everyone can say what they please, without regard to social solidarity – needs to be the cornerstone of how we operate from now onwards, with it being incumbent on every single one of us to raise those red flags, and speak out. Without this, we leave a hollow, soulless country to future generations – passing the buck, in an act of profound selfishness.

And, with Moneyval round the corner, and an increasing awareness on-theground of the necessity to reform this broken culture, our institutions, and to encourage critical thinking, we need to come together as a community to put our house in order. It’s about time, too. Failure to do so will leave the business community struggling for many years to come.

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

Executive Editor Rebecca Anastasi

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BUSINESS OPINION

Ensuring the economic sustainability of the agriculture sector

Jeanette Borg In the recently published preBudget document, outlining the priorities for 2021, the Ministry for Finance and Financial Services underlined the necessity of ensuring the sustainability of the agriculture sector. It, rightly, pointed out that the sector has experienced substantial changes over the years, with the situation continuing to evolve.

And, while no details are outlined, the document states that, in the forthcoming announcement in October, “emphasis will be made on increasing the competitiveness of active farmers and fish-

ermen by focusing on quality and encouraging diversification, facilitating young entrants into the sector and fostering sustainability of farming and fishing activities.”

Young entrants, it continues, “can bring new skills, energy, new and modern professional management to the farming and fishing sectors. Furthermore, initiatives aimed at promoting local products, which over the years have reached superior qualities, will continue being implemented.”

At face value, this promises to deliver positive action to stakeholders who continue to struggle.

We already have a formalised policy – National Agricultural Policy 2018-2028 – that gives a clear direction and includes measures to address current challenges. This vision aims to deliver on four key targets: increasing the competitiveness of active farmers and livestock breeders by focusing on quality and embracing diversification; facilitating the entry of young farmers by creating a cost-effective agri-business sector; fostering sustainability of farming activities by adapting to the

local geo-climatic conditions; and ensuring that farmland is managed by genuine farmers for agricultural purposes and related activities.

In the meantime, Rural Development Programmes, as well as funds through the Common Agricultural Policy, have provided financial aid for the agricultural sector since Malta joined the EU. One of the measures instituted by the current programme fell under ‘Farm & Business Development’. This provided start-up aid for young farmers (Measure 6.1) and aimed to incentivise new entries to set up and develop sustainable agricultural holdings, thus fostering a younger farming population. It is positive to note that all the funds allocated for Measure 6.1 have been allocated. However, we are now exiting the 2014-2020 programme and currently the strategy and plan for the next seven years are being discussed.

It remains undeniable that the GDP remains low for the agriculture sector, and, indeed, stands at much less than

Malta’s other industries. According to figures released by the National Statistics Office (NSO), Gross Value Added (GVA) for agriculture – together with foresting and fisheries – for Q4 in 2018 was €107,805,000, decreasing to €105,677,000 in Q4, 2019.

In contrast, and to quote a couple of examples, the GVA for wholesale and retail trade stood at €2,445,413,000 for Q4, 2019; while that for real estate stood at €551,619,000. Also, according to Eurostat, non-salaried work in agriculture is still high, leading to an under-representation of workers in agriculture, farming and fisheries.

But the reality presents us with more than just numbers and a close examination of the issues can help point to possible solutions. There is a failure in food chain management which may result in food fraud; we also have an increased number of subsistence and part time farmers; and non-remunerated labour is resulting in figures which are non-representative towards the actual workforce.

There are various actions that can be undertaken to stimulate economic growth. These include: improving production methods; innovation and diversification; adding value to agricultural products through further processing; shortening local food supply chains; increasing the use of technology; and, fundamentally, research.

Having said this, any type of investment and improvement cannot bear its fruits unless action is undertaken by the relevant authorities to address pressing issues such as food fraud, bureaucracy and ensuring the enforcement of current legislation. And time is of the essence. For, many farmers have invested heavily, and are still investing heavily.

However if their profits keep dwindling, we cannot ensure growth of the sector.

Jeanette Borg is the Founder of Malta Youth in Agriculture Foundation (MaYA) and has been at the forefront of revising the agri-business sector for young practitioners.

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e Malta Business OBSERVER

| September 24, 2020

CASE STUDY

Upskilling in the New Norm Carm Cachia Since its launch in 2014, the eSkills Malta Foundation has understood its important, challenging role. The skilling, upskilling and reskilling of various factions in the digital economy have been a major challenge. During these years, the information technology scenario has changed. Although we have known technology to change its pace over time, over the last six years, the future has become clearer, and the potential for technology to disrupt society, commerce, and education has become evident. The advancement of technologies such as Artificial Intelligence, Distributed Ledger Technologies, the Internet of Things, data management and its visualisation, together with quantum computing, and high-performance computing, to mention just a few, has given us the understanding that many oppor-

tunities and benefits can become a reality – and very soon.

Technological advancement has created a ripple effect on all sectors, including commerce, health, government, manufacturing, finance, marketing, banking, energy, agriculture, entertainment, among others.

There is hardly a sector which technology will not disrupt.

This wave of change has been long coming, and the European Commission has urged EU member states that, should they want to remain competitive on the global market, they must prepare for this digital disruption. Countries need to prepare society for the implications and to encourage a digital transformation in their businesses and government.

The other continents have been doing the same. Although these compete with each other, in effect all continents have realised that this is one world and cooperation is key for the success and failure of this technol-

ogy. But industrial competition will always be there, and the European Commission successfully implemented the single market economy, treating the EU as one territory without any internal borders or other regulatory obstacles to the free movement of goods and services. The digital single market, a part of this strategy, aims to open up digital opportunities for people and business and, therefore, improve Europe’s position as a world leader in the digital sector.

With the digital single market, problems in one country are likely to be seen as problems in the other member states. Then, through the European Commission, member states collectively seek common solutions. Technological disruption has augmented the issues in the digital skills gap in society, SMEs and the digital sector. The collective efforts between member states are the best approach to tackle this.

This disruption also has a pro-

“Artificial Intelligence (AI) is like electricity. It will affect our lives in many ways; we are just now imagining what the future could hold in this regard.” found effect on the skills and competences required by all the stakeholders and actors. Organisations like the eSkills Malta Foundation has been in the thick of things to reduce the sudden impact of the digital skills gap.

However, COVID-19 has somewhat complicated the implementation of solutions to tackle these persisting issues. Many organisations have had to adapt to the situation, and the Foundation has turned this to its advantage by focusing further in skilling, upskilling and reskilling using the online virtual environ-

ment. Career guidance training has already started to be catered for in this way, as have summer bootcamps and other events.

Additional to the various online courses already promoted on the Foundation’s website, the eSkills Malta Foundation is currently working with technology and education partners to help in achieving its aims. These leaders in the field have realised the profound effect the Foundation has and can have on inskilling and upskilling. In this article, we have chosen to mention two such initiatives that we will be introducing in the last quarter of 2020.

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CASE STUDY

Elements of AI Artificial Intelligence (AI) is like electricity. It will affect our lives in many ways; we are just now imagining what the future could hold in this regard. What’s certain is that it should not be left in the hands of a few elite coders. In spring 2018, technology company Reaktor and the University of Helsinki came together to democratise AI. This is an example of best-practice where industry and education collaborate for the benefit of society. Together, these two organisations built a free online course available to anyone, anywhere, at any time, to teach the basics of AI to people from a wide range of backgrounds. The course is dubbed Elements of AI. As a gift marking the end of Finland’s Presidency of the Council of the European Union, Finland will extend free access to the Elements of AI course in all EU languages in 2020 and 2021.

Their ambitious goal is to educate 1 per cent of European citizens by 2021.

The course explains the implications of AI in everyday situations with interactive exercises so thats tudents can make informed decisions as workers, voters, media and product consumers.

The Elements of AI course has been prominently featured in over 500 global media outlets, won multiple international awards, and global acclaim.

Now, with over 400,000 students and best user ratings around the world, Elements is a benchmark for making complex issues easily understandable and fun to learn. This course is an introduction to AI with no complicated math or programming required. Age, profession or country make no difference in this course. The six chapters of the course are estimated to take 25 hours for those interested. After following the course, individuals can understand some of the major implications of AI, think critically about AI news and claims, define and discuss what AI is, and explain the methods that make AI possible.

Reaktor and Helsinki University have realised the importance of the eSkills Malta Foundation and the University of Malta, and has reached an agreement to actively introduce this in Malta.

The University of Malta will manage the implementation of this course in the academic community in all disciplines. Non-AI literate academics coming from whatever field now have the opportunity to learn more about Artificial Intelligence. The eSkills Malta Foundation, possessing

government and private sector connections, as well as marketing know-how, will handle the rest. In other words, we plan to have a wide outreach in society, education, and to SMEs. In collaboration with the Ministry for Financial Services and Digital Economy, this important course will be launched officially by the Parliamentary Secretary Hon. Clayton Bartolo, through a short online event on 8th October. We hope to attract individuals coming from all walks of life.

AMAZON Web Services (AWS) We cannot say that cloud computing is something new. However, its presence has been in the mainstream and many organisations have put their trust in leading cloud services providers to manage their data and information on the cloud. AWS is the leader in the world on Infrastructure as a Service (IaaS) and is one of the most comprehensive cloud platforms.

Since its inception, the eSkills Malta Foundation has been at the core in the contribution towards the increase of digital skills and the development of the ICT profession in Malta. Individuals looking for job opportunities, in particular school

leavers, must have the relevant in-demand industry skills to compete in the marketplace.

Following consultation between AWS and the eSkills Malta Foundation, several study programmes were selected to be provided in Malta using ICE Malta as their preferred training provider. These include AWS Cloud Practitioner Essentials, Architecting on AWS and AWS Business Essentials. The first two courses are designed for youth, whether prospective students, employees or the unemployed. Both of these courses come with the opportunity to sit for an official exam to get a widely-recognised industry certification at the end of the classes.

The first course, AWS Cloud Practitioner Essentials, is an entry-level programme leading participants to become cloud professionals. The idea is to recruit, train and certify 50 people, to raise their employability level and digital skills, and also to start creating a critical mass of cloud professionals.

The second course, Architecting on AWS, an associate level programme gives participants highly sought-after skills and competencies about cloud technology. The idea here is to (a) either funnel and allow only the 15 best participants of the entry-level course to continue to

“The Foundation believes that industry certifications are a mark of quality and are of specific importance to the industry sector.” this advanced level or (b) engage young IT professionals to acquire this certification, allowing them to look for quality jobs after obtaining the certification.

It also aims to certify participants with previous experience on the subject.

The third course, AWS Business Essentials, is designed to help business leaders, executives, and non-technical staff, understand the advantages of cloud computing and build a cloud strategy to meet business goals. The course will review the business and financial benefits of cloud computing and the fundamentals of AWS. In this course, participants will also learn about the cloud adoption framework to help design a strategy to deploy a cloud platform within their business successfully.

All these courses have been made possible through funding by the Melita Foundation.

The Melita Foundation was launched as a charitable founda-

tion with initial funding of €500,000, to be used to finance a range of projects focused primarily on the development of digital skills and creativity among young people in Malta, as well as the conservation of Malta’s heritage and environment. Melita Foundation recognised the important role that the eSkills Malta Foundation plays in Malta, and both foundations are working together.

These are just a few of the initiatives that the eSkills Malta Foundation have been working on. The Foundation believes that industry certifications are a mark of quality and are of specific importance to the industry sector.

Other agreements with technology leaders are expected in the near future. This will provide further development for existing ICT professionals, and allow new practitioners to be fostered.

Carm Cachia is the Chief Administrator, eSkills Malta Foundation.

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e Malta Business OBSERVER

| September 24, 2020

CASE STUDY

Budget 2021 “should include measures” to further help family businesses Ray Bugeja Family Business Regulator, Joseph Gerada, is hopeful the Budget for 2021 will include measures and incentives that will further help family enterprises, which are the backbone of the economy, adding that, despite the impact left by the pandemic, no business registered with his office has officially declared it had to close down due to COVID-19.

Although the Family Business Office (FBO) does not have local statistics on the effect that the COVID-19 pandemic had on Maltese family businesses, it has been monitoring statistics provided by foreign firms and institutions. A recent survey carried out by Banyan Global on family businesses, across the world, shows that 82 per cent had seen a negative impact on their business from the coronavirus outbreak and about half of those said the impact has been significant.

“New incentives will be launched on 1st January 2021.”

“However, I believe that our family businesses are well-positioned to survive this business shock. In Malta, I can gladly say that we have had no de-registrations to date due to business closure since the COVID-19 pandemic hit our islands. This, in itself, is very encouraging and a sign that our family businesses are resilient and prepared to withstand the tests and obstacles faced during a crisis such as the one we are currently experiencing,” Dr Gerada remarked.

The FBO has been informed of family businesses that have had to make drastic changes to the way they were used to doing business. Dr Gerada sees nothing wrong with that. On the contrary, he considers such “nimbleness, agility and the ability to adapt to the current market situations as elements that can put a business ahead of its competition.”

He pointed out that family businesses experience a certain pressure not to fail, also due to the reputation and legacy they would have established over the

years and this makes them hardy and able to take tough decisions so they can adapt and survive. In fact, the Regulator explains, family businesses differ from other companies in that their form of ownership gives them the ability to take critical actions that could help them through difficult times such as the ones the country and the world are going through right now.

More than ever before, it is in times like these that one must think out of the box and look at ways of adapting so that one’s business would be able to survive and cope with the difficult times ahead, Dr Gerada said, adding that this was something that a number of family businesses had to do and rightly so.

Some businesses, he continued, have managed to take ac-

tion on their own while others require the assistance or the support of others to help them adapt their business model in order to deal with the ever-changing circumstances and demands.

He noted that, thanks to various support measures, including the Investment Aid for COVID-19 Products and the Business Re-engineering Consultancy incentives administered by Malta Enter-

prise, together with the Business Advisory incentive offered to registered family businesses, local enterprises can get the help and guidance they require to make the right decisions for their business to adapt and survive.

Dr Gerada explained that a number of local companies have been proactive and adapted some lines of business with agility; for example a number of

e Malta Business OBSERVER |

September 24, 2020

CASE STUDY

clothing companies have switched to the production of masks and other protective equipment, chemical manufacturing companies are producing sanitisers and hand sanitising products, taxi companies have switched to delivery services, and restaurants and retail outlets have introduced e-commerce sites to be able to maintain a minimum level of sales and keep their businesses and workforce going.

On the more creative side, he added, printing companies switched to 3D printing and are making face shields. One such company, he pointed out, also managed to export its product during these difficult times, thus entering the export market.

The FBO head recalled that when, during the last quarter of 2019, his office was planning its strategy for this year, one of the main objectives was to focus more on reaching out to family businesses and business organisations, service providers and other constituted bodies to provide information on the role and function of the Family Business Office, the incentives it offers to family businesses and how it can be of support.

Presentations were made and one-to-one meetings held in January and February. A number of other conferences and seminars were being planned for the rest of this year. However, all those plans had to be stopped due to the COVID-19 crisis and meetings had to be held online.

Still, the FBO plans to hold a conference during this year’s SME week in November, although it will probably take the form of a webinar.

The FBO is also collaborating with a new TV programme, which will be aired on the national TV channel as from the 30th of September, with a focus on sharing experiences of family businesses, as well as providing information on good practices, legacy issues and generational renewal. “We are very excited about this project and I am sure it will help disseminate information that family businesses will find both helpful as well as positively motivating,” Dr Gerada said.

Another area the FBO is working on is the launch of new incentives to be introduced on 1st January 2021. By looking at what we have already been offering and the take-up on these incentives, the office is looking into ways of improving the incentives in place and creating new ones to cater for areas where family businesses require most support, the Regulator explained.

Given the importance of the internet and remote access to

Government services, the FBO is also focusing a lot of energy on its website, which will be revamped throughout 2021, he added. The plans in this regard are to help reduce bureaucracy and to give family enterprises, which are very busy with the day-to-day management of their business, better access to the office’s services, he explained.

Moving on, and as the presentation of the Budget for 2021 approaches, Dr Gerada said the FBO “definitely” hopes to see the renewal of the incentives being offered to support the transfer inter vivos of family businesses.

These incentives, offered by the Ministry of Finance, have come a long way in promoting the family business succession planning and generational renewal, he pointed out.

Thanks to the tax exemptions and incentives, he went on, the Government helped reduce the obstacles faced by family businesses when it comes to making the tough decisions on how and when to pass the business to the next generation.

The FBO would also like to see more investment in training, education and reskilling. “We are working very closely with Malta Enterprise and other entities on the development of training incentives and I am sure the Government will see the importance of further investing in this. Apart from the importance of receiving training in areas that will help the business grow further, we also need to train our family businesses to think out of the box and explore new revenue streams so they can spread their risk further and are better prepared for rainy days,” Dr Gerada asserted.

Stressing that family businesses are the backbone of the economy, the Regulator said it is, therefore, crucial that the authorities would focus on their needs and continue investing in them. He pointed out that, over the past months, many businesses realised the importance of the internet, pointing to ecommerce as the way forward.

However, the Regulator cautioned, Maltese businesses are at a disadvantage when it comes to competing with other businesses within Europe due to Malta’s insularity, the reliance on limited connectivity – including internet connectivity – as well as higher transportation, export and postage costs. He feels the Government needs to explore ways of building a case so that Malta’s insularity is further given recognition, with the economy getting the assistance and subsidies it requires so that businesses can truly compete on a level playing field across Europe.

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e Malta Business OBSERVER

| September 24, 2020

BUSINESS UPDATES

Don’t gamble with your regulatory responsibilities Enemed, Fuelling Awareness Supporting local Motorsport and providing a wide range of opportunities to its employees are not the only factors that make Enemed the strong and supportive brand it is, but its CSR initiatives are also as powerful!

Enemed have always used their platform to bring awareness to several local initiatives and organisations, including promoting blood donations and donating funds to several local entities, but, for the past few years, Enemed has also been supporting Pride month, and joining the awareness campaigns of Pink October and Movember.

Throughout the upcoming months you will notice that the Enemed fuel bowsers roaming the streets will all be colourfully branded with various visuals showcasing social inclusivity and acceptance of the LGBTQ community, while also highlighting the importance of medical checks to prevent or detect early breast, prostate and testicular cancer.

Don’t compromise on your business connectivity Reliable, stable connectivity is vital to business operations, both during the current crisis and beyond it.

Many businesses may think they get this reliable connectivity with their current mobile provider. But looking closely at the contract fine print can tell a very different story.

Some mobile carriers may intentionally limit data speeds to avoid overloading their network infrastructure. This process, known as ‘throttling’, can happen throughout the day, or only during peak times. But when it does happen, it can have a significant impact on data-heavy services like video conferencing, or media streaming.

At GO Business, we think digital services should be available to

Is problem gambling becoming something of a public health emergency? This is the question on everyone’s mind in the iGaming industry, and, to be completely frank, we need to take it seriously. Improved player protection measures and quicker, more effective detection of addictive behaviour patterns are at the very top of the priority list, with tighter regulation surrounding antimoney laundering measures also at the centre of the discussion, globally.

The biggest industry names are sitting up and paying attention to these new regulatory demands, investing significant resources and budget in a bid to, not only meet these challenges head-on, but surpass expectations to boot. The issue remains, however, that changes to gaming regulations are coming hard and fast, with most industry players struggling to keep up.

FINDING THE BALANCE BETWEEN COMPLIANCE AND CUSTOMER EXPERIENCE

everyone. That means your connectivity should never be compromised. We aim to be totally transparent about our services, so with our plans what you see is truly what you get.

Find out more about how GO Business can help you stay connected at www.gobusiness.com.mt.

So, the real question is, are your systems robust yet agile enough to keep up with these regulatory changes? How will this impact your most loyal customers and VIPs? Industry leaders do place a premium on compliance, but they also must meet and anticipate changes without compromising on customer experience. iGaming companies need to maintain a compliant, frictionless, efficient experience for their gen-

uine players, but actually getting there using a manual approach or legacy system in this dynamic regulatory environment is becoming more difficult every day. Future-proofing your business is more important than ever before, so try and invest in the latest technology early on in the game.

First, up the ante and identify at-risk players ASAP with behavioural monitoring. You’ll be able to provide support earlier on, and, when it comes to antimoney laundering measures, it’ll allow you to detect suspicious behavioural patterns at a granular level. Next, look at ways to effectively leverage technology to drive transformation and meet the everchanging industry demands.

You may need to overhaul your legacy systems first, but there are a whole host of modern solutions available to keep you ahead of the game.

WORK SMARTER WITH AUTOMATED TRANSACTION MONITORING ComplyRadar utilises a full riskbased approach to eliminate disruption to genuine customers, detect potential criminal or problematic behaviour, and demonstrate full ongoing compliance. It sends you notifications on the transactions that matter and enables you to automatically apply a full-pattern analysis to instantly see suspicious transactions in real time. You can then manage flagged transactions through a comprehensive, fully audited review process leading to the closing of a case. For more information on how ComplyRadar can help you maintain the right balance between stringent regulation and excellent customer experience, visit www.comply-radar.com or email info@computimesoftware.com.

HSBC Bank Malta connects business to Europe and beyond HSBC Bank Malta has been supporting AquaBioTech Group since its inception, nearly 25 years ago. Over the past quarter of a century, the international aquaculture, fisheries and aquatic environmental consulting, testing and development company has grown into a multinational organisation serving clients in more than fifty countries across all continents.

In supporting AquaBioTech Group’s growth, the bank provided the business with access to its unique trade finance solutions, delivering financial support in a structured manner. HSBC’s Global Trade and Receivables Finance team developed a bespoke funding solution specifically adapted to AquaBioTech Group’s trade requirements, with a focus on import/export financing and project financing. The bank also provided a

receivables finance facility which improved liquidity and credit protection giving the company the ability to conduct business anywhere whilst guarding against the impact of late payments and bad debts.

Stefan Bonello, HSBC’s Relationship Manager for AquaBioTech Group commented: “The company had great potential right from the start but needed to build up its equity and asset base. In this scenario, it was clear that traditional financing did not meet the customer’s requirements and so we used HSBC’s trade finance solutions to map a way forward together. These solutions enabled our client to capture new opportunities and we were able to support the group’s ambitious growth strategy.”

Shane Hunter, founder and CEO at AquaBioTech Group, said: “Growing an in-

ternational business is, of course, extremely challenging. Over the years we built capacity and experience, as well as a strong brand, to enable us to tender for global aquaculture projects. But our greatest challenge came when we started winning multiple contracts

and that’s when the financial support from HSBC was extremely useful.”

AquaBioTech Group is now a strong and globally recognised brand within its industry. Currently, the company’s largest division offers design and engineering capabilities for the construction and management of high-tech land-based fish farms all over the world. However, it is still looking to develop new markets and anticipates continued strong growth in the coming years as it continues to build capacity.

Malta based companies who wish to learn more about how HSBC Malta can support their international growth through the bank’s international presence are invited to contact their Relationship Manager to discuss the range of trade finance solutions available or visit www.business.hsbc.com.mt