The Malta Business Observer, 26th September 2019

NEWS

Issue 102

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September 26, 2019

Distributed with Times of Malta

Budget 2020 should consolidate successes, business stakeholders say

Stakeholders in the property sector state the market has now stabilised following a period of rising prices, stressing this will help safeguard future sustainability. see pages 7, 8 >

Helena Grech Leading business and industry stakeholders have stressed the need for consolidating the successes Malta has achieved over the last few years rather than focusing on the drive for rapid growth, with paths diverging on recommendations on how to achieve this.

This was in response to questions sent by The Malta Business Observer to the Malta Chamber of Commerce, Enterprise and Industry (Malta Chamber), the Malta Chamber of SMEs (GRTU), and the Malta Developers Association (MDA) to gauge their reaction on the Government’s pre-Budget document which is themed ‘Sustaining Inclusive Growth’.

While this latter document, recently released by the Government, does not enter into a high level of detail, it identifies priority policy areas which will be given special attention in the Budget.

Among other notable points, Finance Minister Edward Scicluna has said that the State is even considering the possibility of requesting thriving sectors, such as financial services, construction and tourism, to contribute extra funds to the authorities which will be dedicated to pensioners and the housing sector.

And, indeed, reflecting the concerns raised, Malta Chamber President Perit David Xuereb said that this year, the Chamber had chosen to go for a focused approach, dedicating its attention to six main issues – pain-points in the business environment – which warranted the Government’s immediate attention, as they were deemed to be of crucial importance to Maltese

BUSINESS OPINION Economist Gordon Cordina looks ahead to Budget 2020, asserting that it needs to place emphasis on social issues and encourage balance between diverse investments to ensure sustainable development. see page 11 >

CASE STUDY

PHOTO: REUBEN PISCOPO/DOI

businesses and all economic operators in the country.

In relation to this, and through an official statement, the Malta Chamber, proposed that the Government carries out a wage-inflat i o n- v i s- à- v i s- p r o d u c t i v i t y analysis within the context of stabilised growth. On the issue of rising labour costs, as well as shortages, it called on the Government to carry out a “manpower” exercise to determine under- and over-employment in various public departments and agencies.

Concurrently, and highlighting the Government’s fiscal success, the GRTU remarked that Government has “never been in a better position to be less reliant on tax

revenue”. Observing that this would lend itself to providing a fairer economic playing field for local companies, the GRTU would like to see Government – in the next Budget – retract excise taxes imposed during the last few years; reduce the corporate tax to 20 per cent; and decrease the transfer tax on shares or business property from parents to siblings inter vivos, payable on a long-term plan.

The GRTU also shed light on its aspiration to make progress in the national debate about a mass transportation system, while also lamenting the challenges local businesses face as a result of “limitations” in Malta’s banking sector.

Furthermore, the MDA also acknowledged the substantial economic buoyancy Malta has enjoyed over the past few years – with 2018 registering 6.6 per cent GDP growth according to the National Statistics Office (NSO) – yet the entity said there was a missed opportunity for better quality development. Indeed, it called for the implementation of the “right policies” to ensure superior designs, which would make “localities more aesthetically pleasing”.

Moreover, the MDA called for recognition and incentives to be given “to the companies and players who are making an effort and who surpass amateurs in the field”.

For the full analysis, see pages 3, 5

e Family Business Office, launched in 2017, will be entering its second phase of development, focusing on outreach to help family businesses understand the benefits of incentives being offered through various institutions, the new regulator, Dr Joseph Gerada says. see pages 18, 19 >

STOCK MARKET REVIEW e Head of Corporate Advisory at Rizzo, Farrugia & Co (Stockbrokers) Ltd, Doreanne Caruana, describes the three most typical investor profiles and traces their level of tolerance to risk. see pages 23, 24 >

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ANALYSIS

Budget 2020: Priority should be lowering employment costs - Malta Chamber President Helena Grech Come 14th October, the Labour Government will have announced its sixth national Budget. The past few years have been characterised

by Budgets that did not evoke feelings of great shock or surprise by Malta’s various stakeholders, with no major new taxes or costs being announced.

Following the publication of the Government’s pre-Budget document a few weeks ago, The Malta Business Observer turned to stakeholders – the Malta Chamber of Commerce, Enterprise and Industry (Malta Chamber), the Malta Chamber of SMEs (GRTU), and the Malta Developers Association (MDA) – to gauge their reaction, and to ask which issues they would like to see addressed within the upcoming Budget.

Budget 2020 has been themed ‘Sustaining Inclusive Growth’, a nod towards the unprecedented economic growth which Malta has experienced during the last five years, and which has also had a series of negative consequences such as the strain on Malta’s housing system and infrastructure. In an effort to mitigate some of these consequences, Government has included a total of 18 priority areas in its pre-Budget document.

These include, among other initiatives, reforms in the justice system; the strengthening of institutions and regulatory authorities; a focus on innovative technology; continued investment in social justice and social cohesion; continued investment to maintain a high quality in the standards of health; improvement of the road infrastructure and the creation of public spaces; as well as sustainability in a num-

ber of areas, such as tourism and the environment.

In comments to this newspaper David Xuereb, President of the Malta Chamber, said that the Chamber would like priority to be given to tackling the ever-increasing employment costs and the subsequent effect on the country’s competitiveness. In this regard, Perit Xuereb said that, although the country had come a long way in the past years and had registered unprecedented growth, Government needs to address certain issues since these risk impacting on other sectors, to the detriment of the entire economy.

Indeed, in an official statement entitled Proposals and Recommendations by the Malta Chamber for the 2020 Budget, the Malta Chamber, as an entity, said that

the rising employment costs are the result of the “continuous extension” of leave allowances; increased labour mobility; the shortage of labour in terms of skills and numbers; an increase in public sector employment; and an increase in rental costs. All these factors, it argued, contribute negatively to labour costs in Malta.

The Malta Chamber lamented their negative impact on Malta’s competitiveness, particularly for companies that are operating in the international sphere.

As a long-term measure, the Malta Chamber recommended carrying out a “thorough analysis of wage-inflation-vis-à-vis-productivity”. It remarked that productivity data is “still lacking” and that the “NSO, EPD and the newly formed Productivity Forum, within

MCESD, should come up with proper indices to estimate sectoral productivity in the country.”

In addition to proposing the introduction of educational measures, the Malta Chamber made recommendations aimed at the private sector, such as “urgently” calling on the Government to “conduct a manpower survey in order to identify areas of over- or under-employment across all public entities and departments.”

It also called for the introduction of “fiscal incentives for employers who engage public servants in shifting back to the private sector in order to mitigate the serious labour shortages being faced across the board.”

Moreover, the Malta Chamber called for Identity Malta to be given more resources to process the in-

creased volume of permits for foreign nationals to work in Malta and recommended the introduction of a tracking system “accessible to all applicants to seek the status of their permit application”.

Moving on, the Malta Chamber President argued that there was “a dire need for a creative approach towards providing alternative modes of transport”, as the country needed to look away from the one-car-one-driver model which is the main contributor to the country’s traffic congestion across its transport network.

Reflecting this, the entity’s official statement also stressed that “the single largest issue straining businesses and society at present is the inefficiency of Malta’s transportation infrastructure and the severe traffic congestion at virtually all hours of the day.” On this point, it recommended the provision of fiscal incentives to companies that offer collective transport to employees as well as extending the “car cash allowance to collective and shared mobility systems used by employees by offering more generous fringe benefits.”

The much-needed reforms in the rental market and the construction industry were also highlighted by the Malta Chamber, together with the need for the financial services sector to restore its reputation, with Perit Xuereb reiterating the need to significantly improve the country’s standing when it comes to investment in Research, Development and Innovation (RDI) across all sectors.

Reflecting some of these thoughts, Abigail Mamo, CEO of the Chamber of SMEs (GRTU), highlighted the need for “a clear commitment towards the improvement of existing procedures in emcontinued on page 5

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ANALYSIS

GRTU laments “limitations” in banking sector as biggest challenge continued from page 3 ploying third country nationals”.

She highlighted the scenario that has developed over the last few years where “employers are faced with grave labour shortages issues” and described the process of seeking to employ third country nationals as “painful, disheartening and costly.” Ms Mamo stated emphatically that “drastic improvement is necessary in this area.”

Indeed, to address the issue employers face when registering prospective employees from overseas, the Government’s pre-Budget document stated that “one of the agency’s [Identity Malta] key measures is to continue to reduce bureaucracy when companies apply for the necessary work and residence permits on behalf of their prospective employees who are still abroad.”

On a positive note, Ms Mamo highlighted the focus the pre-Budget document placed on strengthening regulatory and supervisory institutions, and on the policies to enable Malta to become a hub for innovative technology, as well as Government’s intent to raise “the quality of Malta’s tourism product offer.” She also praised the document’s emphasis on creating a sustainable retirement strategy and on fostering innovation through greater investment in research and development.

“These are areas that we have repeatedly focused on, but, clearly, more aggressive strategies are necessary in order to reach the desired goals. The Government should set out its Key Performance Indicators in each of these areas to focus on a resultoriented approach and not measures that yield little to no return,” she said.

However, Ms Mamo also emphasised the importance of resolving issues related to the island’s banking sector due to the way it is limiting local businesses. She lamented that the greatest challenges to Malta’s business community are, indeed, the “limitations” of the local banking sector and argued that they should be addressed in the forthcoming Budget.

“Foreign and local enterprises are finding great difficulties in opening their bank accounts and making use of banking facilities,” she explained. This problem has, indeed, been highlighted by various professionals and private entities, so much so that, in 2016, the Malta Financial Services Authority issued a legal notice obliging banks with five or more branches in Malta to offer a payment account with basic features.

Despite this measure, the business community, in particular start-ups and companies working in the digital space, are still encountering problems when seeking to open a bank account. Further underscoring these difficulties, Ms Mamo remarked that “it is clear that Malta’s banking market is stagnating.” Yet, the Government’s preBudget document, she argued, makes no mention of measures to address this issue. “Malta’s banking sector lacks competitive players, players with different risk appetites and innovative and technology-driven solutions in the sector. As the biggest problem facing businesses today, it is worrying that this aspect appears to have been left out.”

Turning to the issue of transportation, Ms Mamo also stated that “whilst the investments being made in infrastructure are welcome, GRTU is keen to learn of plans related to a mass transportation system.” In this regard,

the pre-Budget document outlines the Government’s commitment to continue investing in Infrastructure Malta, the state agency entrusted to manage Malta’s road network. The document highlights the proposed tunnel between Malta and Gozo, as well as investment in alternative modes of transport such as cycling and walking. However, no mention is made of plans for a mass transportation system.

On this point, Ms Mamo argued that “whilst the current upgrades help in the short-term, a mediumto long-term solution is necessary and plans in this sense should have also been mentioned in the pre-Budget document. Traffic is a major concern for anyone living, working and doing business in our country,” and the current situation is “a dent to our standard of living.”

When asked about other measures which the GRTU hopes will be included in the official Budget, Ms Mamo observed that the Government “has never been in a better position to afford being less reliant on tax revenue”. As a result, she said, “this creates an opportunity for Government to foster a fairer level playing field and for Maltese businesses to be less harmed by incentives that favour foreign investment or by foreign goods coming into the market and avoid our tax structures.”

To address this, the “GRTU would like to see the Government retracting the excise taxes imposed during the last few years, reduce corporate tax to 20 per cent and decrease the transfer tax on shares or business property from parents to siblings inter vivos, payable on a long-term plan,” she continued.

Taking a positive viewpoint, a spokesperson for the Malta De-

velopers Association (MDA) said that the organisation is “very proud that the pre-Budget document reflects the result of hard work which our [MDA] members have contributed to within the construction industry,” while adding that it is “about time that the normal citizen, including middle-income earners, harvest the fruit of the hard work. We fully agree with the Government strategy to create work and direct revenue to assist citizens.”

The MDA spokesperson described the pre-Budget document as “certainly in the right direction.

However, it all boils down to implementation, and it is crucial that what needs to be implemented is doable.”

He concluded by arguing that “the media needs to appreciate and give recognition to our association’s great efforts to deal with such a controversial industry.

The MDA does not support anyone who bypasses the law and will never defend any amateurism.”

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Property prices have “stabilised”, industry stakeholders say Jo Caruana While speculation has been rife that a bubble in the property sector is about to burst, stakeholders within the sector say that is unlikely – although they admit the market has now stabilised following a period of rising prices.

“It is true that we have reached the peak of an increasing boom over the past five years,” said Malta Developers Association (MDA) president Sandro Chetcuti. “However, property is still considered the best investment possible so far.”

Meanwhile, David Pace, partner and head of advisory at KPMG Malta, explained the recent, buoyant market has presented two sides of the same coin. “On the one hand, we have had double digit price growth enjoyed by those who participated in the market in this period (albeit with signs of a slowdown in price growth in 2018 over 2017).

Then, on the other hand, there has been increasing stresses on affordability, along with the risk of cost-push inflation on the economy as a result of demands for higher wages just to meet higher property costs.”

In fact, in a recent article on the Times of Malta, the Central Bank said that higher home loans were being granted by banks to cover increasing property prices. In the piece, the CBM warned that this could spiral to unsustainable levels and may even lead to a financial crisis followed by a recession, even though it emphasised there was no ‘imminent danger’.

“The Central Bank has introduced prudential measures,” Mr Pace continued, when asked

“Every now and then there needs to be a correction in the market. And we’re going through that right now.” – Jeff Buttigieg, RE/MAX Malta COO

whether a financial crisis could be looming. “They are measures similar to those already existing in other jurisdictions, and they will help to mitigate risks that may present themselves under scenarios of rising indebtedness to finance property purchases,” he noted.

He pointed to the fact that, “as indicated by the CBM”, banks today already have their own credit management parameters.

“So, the new measures being implemented are, generally speaking, not expected to present a major financing constraint across the board. They are, instead, intended to address areas that are believed to be more vulnerable, including the buy-to-let market where the CBM is encouraging

more contained and resilient levels of exposures for this segment.

It is, after all, a segment towards which families and individuals may, on the back of recent property returns, be herding into but which, like any other market, has its own level of volatility.”

Asked for his thoughts on the market, RE/MAX Malta COO Jeff Buttigieg said that it does seem to be stabilising – although he also argued that there is no bubble about to burst. “Every now and then there needs to be a correction in the market,” he stated.

“And we’re going through that right now.”

He also said that the agency has not seen a major decrease in sales, although it has noticed that banks are in the process of increasing de-

posits. “However I can assure you that, just like in the 2008 crisis, our local banks are being very cautious when it comes to who they loan to.

Through due diligence, they are careful enough to know that they cannot over extend themselves,” he stressed.

As a result, RE/MAX have decided to “focus on improving our own customer service and giving our clients the best-possible experience when it comes to buying in Malta. To us, that is what the future of real estate locally is all about,” he said.

Meanwhile, Ian Casolani, managing director of Belair Property, does think that there are cases where buyers over stretch themselves and commit to higher home loans to cover a property they want.

“In some cases, they can afford to cover their commitments long term but, in others, they unfortunately can’t,” he said.

“Now, though, with the recent Malta Financial Services Authority and CBM changes to home loans and property borrowing, this situation is being addressed and conditions are being significantly tightened. And, although many see this as a negative move, it is probably important that this is done so as to maintain a healthy market going forward,” he continued.

Moreover, he expressed his belief that it is “very important for the market to level out as it is doing now, because it was fast becoming unsustainable,” he also added that he hopes “this will help to safeguard the longer-term view and the bigger picture.”

In fact, looking to the months ahead, Mr Chetcuti believes that the property sector will definitely continue to “cleanse and stabilise”, continued on page 8

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Property sector “will lead us into a buyers’ market” - MDA President continued from page 7 which “will lead us into a buyers’ market,” he said, thus “making it the right time for solid, professional investors to purchase. After all, we have to admit that overspeculation is never healthy for the country.”

He also stated that a slowdown of the property market will lead to less revenue for the country overall.

“The property industry remains the island’s biggest motor and wealth generator, and has been since the 60s. Things will change but we also see it as an opportunity for the Government to implement new laws with regards to the upkeep of property façades, especially within our towns and villages. We would also like to see more architects presenting better designs, and being proud of their work,” he said.

Mr Pace, meanwhile, suggested keeping a trained eye on the nature of the supply hitting the market in the short-to-medium term, as this

“In the long run, the long-standing ask for increased levels of planning appears to be echoing more than ever throughout the system and that could be a game changer.” – David Pace, KPMG Malta, Head of Advisory could impact market dynamics significantly. “Barring any changes in key demand drivers, I actually think this could be even more impactful than the demand side of things,” he said. “In the long run, the longstanding ask for increased levels of planning appears to be echoing more than ever throughout the system and that could be a game changer. For instance, its effects on our quality of life could indirectly impact the economy by altering the

attractiveness of the jurisdiction for the talent pool, as well as when it comes to foreign direct investment.”

Indeed, Mr Pace stressed that the way the property market has evolved in recent years has placed greater onus of responsibility on the various stakeholders to be truly appreciative of the multiple dimensions that the market displays (and could display), plus how their actions could impact this sector and beyond.

“This stakeholder group is a particularly diverse one, including the Government, financiers, developers, construction and real estate industry participants, investors (including individuals buying a home), as well as

society at large and its lobby groups.

As a result, we at KPMG have been very supportive of initiatives to raise the level of debate and awareness around this market, and will continue to do so,” he concluded.

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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

Budget 2020 – will it sustain inclusive growth?

On the evening of the 14th October, all eyes will be on Finance Minister, Edward Scicluna, as he walks into Parliament to present next year’s Government Budget. Indeed, the pre-Budget document – issued last month and titled ‘Sustaining Inclusive Growth’ – has already laid out certain key priority areas, which have been formulated on the back of Malta’s “unprecedented economic growth” which, the document states, has sustained the island’s “position amongst the best economic performers in the EU.” And, Minister Scicluna’s promise – stated plainly in that document – to ensure “that this success is well-managed so that it continues to be enjoyed by all” reflects much of what he has been saying in the public sphere for a few months now – that, in the context of Malta’s economic buoyancy, effort should be placed on safeguarding the resources we have available, whether these are environmental, reputational or demographic. The Minister had even reiterated these sentiments in comments to The Malta Business Observer last May, going so far as to say that failure to manage success can lead to ruin.

In this regard, and as we outline in the analysis article on pages 3 and 5, the pre-Budget document does attempt to mitigate some of the corollaries resulting from the spike in economic growth, including traffic and infrastructure-related problems, pressures on the island’s natural assets and strengthening the island’s institutions and regulatory authorities.

However, as the President of the Malta Chamber of Commerce, Enterprise and Industry, Perit David Xuereb says, more attention needs to be given to rising labour costs which are having an impact on the island’s competitiveness. Indeed, these have only exacerbated the human resources challenges faced by myriad companies across all sectors, which might affect the level of investment which flows to the country and their competitiveness in the international sphere.

And he is not wrong. However, it is also the increase in Malta’s cost of living which is making it difficult for businesses to attract, and re-

tain, key staff, both in terms of recruitment from abroad and, in some cases, when it comes to employing Maltese people whose financial commitments have ballooned, even when it comes to the day-to-day.

This, coupled with the difficulty of acquiring the necessary work and residency permits for third country nationals, – as Abigail Mamo, CEO of the Chamber of SMEs (GRTU) points out in this edition’s feature – is creating bottlenecks which are not easily resolved. In this regard, tackling Malta’s shortage of workers and the growing demand for foreign workers to plug the gap, the pre-Budget document underlined that Identity Malta is revisiting its existing procedures “to increase its efficiency in the delivery of the relative services without compromising due diligence checks”. Will this be enough?

Moreover, also of vital importance, as Ms Mamo, also rightly notes, is addressing the challenges in the local banking sector, which have created innumerable difficulties for local businesses, even those simply attempting to open bank accounts, with both the larger and smaller banks requiring weeks to months of background checks. Even operating on a basic level has become a feat for some firms, including those which are not in high-risk industries. Whether these hurdles have arisen from updated anti-money laundering regulations, a conservative risk appetite or international pressure – or, indeed, from all three – the fact remains that the situation is not sustainable.

Ultimately, as the pre-Budget document has outlined, the country cannot rest on its laurels, and it must be prepared to weather any instability which may arise in the future. Will 2020 prove to be a fruitful year, in terms of the country’s economy? Will local businesses, and those based in Malta, continue to sow the seeds of productivity – albeit with an eye towards sustainability? That is yet to be determined. However, there is no doubt that change is needed to protect Malta’s assets and future. It is within our power – and it is our responsibility to the coming generations – to rise to this challenge.

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BUSINESS OPINION

A Budget which needs to promote human well-being

Gordon Cordina The question of what is the appropriate role of the Government’s Budget in Malta, within the context of an economy which is registering growth rates in activity and employment – deemed among the best throughout the European Union – is key.

Traditional economic wisdom teaches that a Government Budget should make good for any harm caused by private economic activity and exploit opportunities where these are not sufficiently taken advantage of by the private business sector. This, of course, presumes that the Government possesses tools and instruments necessary to adequately perform these activities. In more practical terms, a Government Budget is expected to stimulate demand for goods and services – when these

are falling below that needed to guarantee sufficient employment levels – provide public goods and services, and create a more balanced and equitable distribution of income and wealth.

In the context of Malta’s current economic performance, the Budget is clearly not needed to stimulate demand. Rather, I would expect budgetary measures to adequately prepare the economy and make it more resilient to face a potential slowdown in export demand in the coming years.

As we all know, the international economic scene has recently taken a turn for the worse in response to a number of events, not least trade disputes and the apparent weakness of the European Union in maintaining a cohesive economic bloc. Safeguarding the structural fiscal surplus and maintaining a continued decline in public debt levels to GDP will be crucial in this regard, to ensure that the country retains a buffer of resources to be tapped into should the need arise.

Sustaining the underlying fundamental competitiveness of the sectors which are generating the ongoing growth is another essential requirement. This will enable them to withstand eventual downturns in the economic cycle. This is equally true for tourism – where we need to up-

grade our game through the better skilling of our human resources in the sector, among other things – as it is in financial services where better regulation is called for to ensure future sustainability and reputation. It is especially also relevant for the construction sector where the ongoing boom in demand needs to sustain a significant upgrade in the quality of the product being delivered to ensure the international marketability of the real estate available in Malta and consequently its ability to attract skilled human resources which the economy needs in order to continue to grow.

Let us make no mistake. It is very easy for any economy to get addicted to growth and become dependent upon it in order to sustain the expectations and aspirations of its population. On the other hand, there is absolutely no guarantee that growth will continue to take place unless we remain committed to sustaining the underlying economic activities which at the end of the day would produce it.

It is in this sense that the Budget must continue to sow the seeds for the growth of new sectors of activity in order to ensure the buoyancy of our economy on a longer term cyclical basis with a three- to 10-year outlook. These

sectors must be fundamentally grounded in the competitiveness which our economy can offer on the international plane, as a Mediterranean small island and, equally, as a member of the Euro area. We need to promote innovative activities as well as transform our country into a hub where the global community can work, relax, learn, heal, and engage in creative activities.

In terms of promoting equality and fairness, the Budget needs to, of course, continue placing emphasis on the social dimension to reduce as much as possible absolute and relative poverty which are often inevitable consequences of periods of rapid economic growth. Equally, if not more importantly, the Budget should aim at engendering desirable balances between the various dimensions of investment which our country needs to promote in order to ensure sustainable development.

These relate to the fundamental pillars of residential attractiveness of any territory including economic, human, infrastructural, social, environmental, and institutional capital. I look forward to a time when we will be able to measure our economic success by considering progress in each of these aspects of investment.

And this, of course, leads us to the consideration that the econ-

omy and economic growth are never ends in themselves but means towards promoting fundamental human well-being. In this respect, the country is being called to make sacrifices, which should result in longer-term benefits for society. However, the Budget needs to be especially mindful of measures required to sustain health in every facet within a rapidly evolving and aging demographic profile, and to continue recognising investment in effective education as the key to social wealth.

I think that our country is now ready, on the basis of the growth and development of the past few years, to be more discerning in terms of the investment programmes on which it embarks, which should serve us in good stead over the years to come.

I, especially, expect the forthcoming Budget to continue giving strong signals in this direction.

Dr Gordon Cordina is the Executive Director of E-Cubed Consultants.

He has served as Director General of the National Statistics Office of Malta, as Economic Advisor to the Malta Council for Economic and Social Development, as Head of the Research Department of the Central Bank of Malta and as Head of the Economics Department of the University of Malta.

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Cab industry reform will “ensure a level playing field” – Transport Minister Helena Grech Reform of the public service garage sector – encompassing chauffeurdriven services, vehicles for hire or lease, and operators under the Public Service Garage (PSG) permit system, but not white taxis – is intended to “better reflect our times, while ensuring a level playing field for operators,” Transport Minister Ian Borg said in comments to The Malta Business Observer, as the term for the public consultation on proposed changes closed yesterday.

The public consultation was launched on 5th September, motivated by the need to address the challenges of “fast changing trends, coupled by a lack of clear, consistent and enforceable rules,” according to the announcement by the Authority for Transport in Malta, under the auspices of the Ministry for Transport, Infrastructure and Capital Projects. These have “left the Authority unable to properly regulate this sector in the best interest of passengers and operators alike,” it stated in its online public consultation space.

One of the main proposed changes is to split up the regulations governing light passenger transport (chauffeur-driven) services and those governing vehicle rental and leasing (self-drive), thus eliminating the PSG permit system.

Furthermore, drivers would need to conform to harmonised good conduct requirements applicable to all taxi drivers. They would also have to attend a specialised training course involving both a theory and practical examination, and would be required to undergo periodic training, as and when required by the Authority.

Moreover, the proposals state that digital platform owners must acquire an operator’s licence under the new regime and abide by all licensing conditions. Otherwise, they may serve only as an intermediary booking service platform on behalf of operators.

According to Minister Borg, these recommendations were put forward to kick-start the process for necessary changes in the industry,

since the “public service garage sector has long been due for an update.” Moreover, in addition to resulting in “a boost in service quality and safety for consumers,” Minister Borg believes that “this reform will also make space for better competition while enhancing accessibility of such services for those who wish to use them.”

He concluded by saying that the Government “want[s] to ensure

that the market has a clear framework to follow and we believe that this is a very positive step forward.”

Asked to comment about the upcoming reform, operators who spoke to The Malta Business Observer, underlined their participation in the consultation process and stressed their commitment to the regulations, once finalised.

Reflecting this, Ecabs cofounder Matthew Bezzina agreed

that alterations to the status quo were necessary, remarking that the industry has “evolved into a veritable jungle”. He criticised the current state-of-play – pointing out its dangers – by focusing on the operations of some digital platforms which “are marketing and offering their services to a new breed of self-employed drivcontinued on page 15

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Consultation period for PSG sector closed yesterday continued from page 13 ers who have no employment or contractual relationship either with the platform itself or with the operators under whose permit the vehicles used are licensed.”

Echoing what the Minister said, Mr Bezzina also pointed towards how such set-ups result in “unfair competitive advantage over legitimate operators like ourselves, who unlike such platforms, are legally obliged to abide by a myriad of fiscal and employment rules.”

He added that “the fact that these platforms openly claim to have no responsibility over drivers and vehicles used for such services is a matter of serious concern

from a passenger safety standpoint.” Indeed, he also noted that while this claim “is aimed to exonerate them from any obligation towards their passengers or responsibility for the service provided, it puts at risk the safety of passengers and hinders effective regulatory control.”

Mr Bezzina maintained that customer safety has always been a priority for eCabs, “to the extent that we will soon be rolling out a Passenger Charter and an Emergency Assist button on our [eCabs’] app, complemented by a call centre and a control team manning and monitoring the operation 24/7.”

Mr Bezzina also emphasised the importance of competition

within the sector, stressing that it keeps all stakeholders alert and helps to eliminate underperforming players but argued that competition can “never thrive if there isn’t a level playing field.”

Also asked about the upcoming changes, a spokesperson from chauffeured-vehicle operator, Bolt, said, the company is “currently participating in the consultation phase of the reform of the

ride-hailing regulatory framework as offered by Transport Malta and will, of course, abide by new regulations once they are in place.”

However, the company declined to give more details and to provide figures on the number of drivers and vehicles registered under Bolt.

According to National Statistics Office figures, the total number of passenger-carrying vehicles for car hire, under the public service

garage categorisation, stood at 2,011 in 2018.

When contacted, Transport Malta also stated that “there are 3,020 registered light passengercarrying vehicles of the category M1” – with eight passenger seats or less – while there are 14,475 registered cab drivers, under the PSG. This is in contrast to 250 white taxis licensed in Malta, 50 in Gozo, and 967 white taxi driver tags.”

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CASE STUDY

Family Business Office enters its second phase, focus is on outreach Emma Mattei Over the next year, the Family Business Office, launched in 2017, will be further focusing on outreach, helping family businesses understand the benefits of incentives being offered through various Government and private institutions, the new regulator, Dr Joseph Gerada said.

Following the publication of the Family Business Act in 2017, it became apparent to the authorities that a large number of family businesses had long awaited such a development in the legislation, which supported succession, that is family business transfer from one generation to the next, Dr Gerada explained. As a result, by the end of 2018, more than 1,000 transfers within family businesses had taken place.

The first year was a testing period, the regulator continued, and the success of the Act relied on the promotion of the Family Business Office with family businesses themselves. Much was done to educate and spread the word that

a new legislation had been enacted, and that a number of advantages and incentives were available for those who registered.

“This was the first step to ensuring family business continuity and the survival of those business units considered to be the backbone of our economy,” said Dr Gerada. “To date, 140 family businesses have registered under the Act, 36 of which were registered in 2019 and we still receive applications for registration on a weekly basis.”

However, their work does not stop here, having now entered into the second phase of this longterm ‘project’. “This requires us to assist and support family businesses through incentives, education, knowledge and professional advisory; to ensure that the new generation gets all the help it requires to step into the shoes of the previous generation. This is not an easy task and sometimes it requires the involvement of third parties, not being family members, within the business structure,” explained Dr Gerada, who stressed that his “intention now is to focus on outreach.”

“Whether it’s the crown, the baton or the family business, passing it on smoothly is the key to assuring that the next generation are not put off tackling succession and the takeover of the family business.”

This drive is in line with the importance of family businesses to the Maltese economy. “According to statistics, 85 per cent of all businesses in Europe are family businesses,” said Dr Gerada, “these are responsible for 60 per cent of all jobs in the private sector. Family businesses, have, therefore, contributed immensely to economic growth, social development, reduction in unemployment, and in the investment in human resources.”

Dr Gerada is picking up where his predecessor, Dr Nadine Lia, left off, pursuing the creation of

new, backed-up incentives for the benefit of family businesses, in cooperation with other institutions and Government entities, to further assist the creation, development and continuation of family businesses, an important element of the Maltese economic ecosystem.

A lawyer by profession, mainly specialising in areas of corporate and commercial law, between 2015 and 2016, Dr Gerada, as consultant to the Minister for the economy, Dr Chris Cardona, was given the responsibility to assist

Dr Lia as Regulator of the Family Business Office, in her work on the drafting of the Family Business Act. “This provided me with clear insight into the objectives of the legislator, and what the law intended to achieve. When I was offered the opportunity to follow in the footsteps of my predecessor – although I was aware it would be a challenging task – I was excited to take up the reins to lead the Family Business Office into its next phase,” said Dr Gerada.

“In today’s world, the word ‘family’ means different things to different people, and rightly so,” explained Dr Gerada. “It is estimated that there exist approximately 93 different definitions of a family business among the EU member states, depending on the variations within the family businesses themselves. Family businesses require a specific understanding of how mixing business with family results in unique characteristics.” Therefore, the definition in the local Act needed to respect all of this and to ensure that it is inclusive, whilst,

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at the same time, ensuring it leaves no space for abuse, thus enabling the survival of the businesses in the future.

“Whether it’s the crown, the baton or the family business, passing it on smoothly is the key to assuring that the next generation are not put off tackling succession and the takeover of the family business,” said Dr Gerada.

“For better or for worse, many times the next generation find themselves trapped in the generational shadow. Whilst this may be seen as a privilege – with the new generation putting on the mantle of a legacy to be proud of – at times, in the wrong context, it can be seen as a burden and a hindrance for it may be a struggle for them to develop their own identity and be judged on their own merit and vision.”

Fear of failure and growing up in the shadow of strong, driven personalities can be a turn-off for young people, who shy away from developing ideas and taking risks, for fear of not living up to the enormous success of previous generations. “As time passes, the excitement and creative momentum built up in the early years can give way to mindsets more preoccupied with safeguarding what’s been achieved, rather than exploring new risk-taking opportunities,”

continued Dr Gerada, who also added that “this can inevitably become a shadow that the next generation must live under.”

“Spreading the word is always a challenge, especially in today’s world where we are bombarded by marketing and advertising.

People who are managing a business have little time to search for information,” explained Dr Gerada. “It is also important to focus on outreach and having one-toone meetings with individuals. Although I am available for meetings with interested family businesses at my office, in collaboration with other stakeholders and business organisations, such as the Chamber of Commerce, the Malta Employers Association (MEA) and GRTU, we also organise seminars, conferences and outreach programmes as often as we can.”

Indeed, over the next year, the entity is planning to improve the website, making it more userfriendly and to integrate various tools to “make it easier for registered family businesses to access their information and to apply for renewals and incentives,” concluded Dr Gerada.

To access information, as well as the application form to register as a family business, visit the website www.familybusiness.org.mt.

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GoTo’s new car sharing business plans launched to provide ‘win-win’ solutions Jo Caruana With the knowledge that the business community has very particular transportation needs when compared to that of individual car drivers, GoTo has launched its new, dedicated business plans, chief marketing officer Johnny Tominaga said.

“Using our new B1, B2, and B3 plans, our business clients can

purchase bundles of minutes, so entire teams can benefit from sharing them from a single account,” Mr Tominga explained in comments to The Malta Business Observer. “This makes it easier for employees to gain access to our service. It is also more transparent for employers to track the usage among their employees, so they can get a comprehensive picture of their transportation habits.”

As the island’s only car sharing solution, GoTo has been leading the way in this area. The company launched in 2018, and has witnessed a surge in popularity since then, with 10,000 users now registered and its fleet now making an average of 670 trips per day across both its One-Way and Roundtrip solutions. And, while the majority of its users are individuals, GoTo has witnessed a marked rise in its business users in the past few

months, with more and more companies keen to consider how a shared mobility model could help to provide an effective transport solution.

“In the past, many companies found it effective to own their own fleet of cars and for their employees to use that fleet,” the chief marketing officer explained. “But, today, costs are rising and business owners realise that the landscape has changed. They understand that it

doesn’t make sense for their cars to be parked idly for so much of the day when they could be, effectively, sharing their fleet across more team members through car sharing, or even with other organisations. The upshot is that this is both a cost-effective solution, and one that helps them to improve their corporate social responsibility from an environmental perspective.”

Traffic and congestion is, indeed, a huge inconvenience to individual drivers on the road, but it can be completely debilitating for businesses. In fact, stalled commutes, tardy team members, and the increasing cost of fleet ownership have encouraged business owners around the world to consider their options when it comes to their staff’s mobility.

In the US, for example, Zipcar – the world’s largest car sharing and car club service – has reported that 20 per cent of its customers

“We believe this is a great way for companies to incentivise shared mobility, and benefit their employees at a considerably low cost.”

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are now business users, and that percentage is growing. Of that group, about one-fifth of them claim to have sold a vehicle in favour of car sharing, while another fifth have postponed purchasing a car to join the service.

This has corresponded to approximately 33,000 total vehicles removed thanks to Zipcar.

In Finland, City Car Club – a car sharing company based in Helsinki – also reported that onefifth of its customers are now business users. Meanwhile, BMW’s 2018 decision to acquire car sharing company DriveNow is a huge testament to the importance of shared mobility solutions for the future of transportation.

That service is now helping its corporate clients reduce the total cost of mobility by up to 30 per cent, while also contributing to traffic reduction with a shared vehicle replacing up to 15 cars on the roads.

In line with developments away from Malta’s shores, GoTo has also created a service which makes mobility incredibly cost efficient, Mr Tominga said. This is because companies don’t need to pay for licensing, gas, the spare time cars sit parked, or have team members waste precious time waiting for a taxi. In addition to that, GoTo’s reserved parking saves precious time

“Trends make clear just how effective car sharing can be for business, and Maltese companies are ready to reap the benefits from this as well.” when team members are heading out or returning to the office. “If you multiply this by what each employee could produce, the savings at the end of any given period are tremendous,” Mr Tominga asserted.

Beyond that, businesses can now also offer GoTo as an employee benefit with the company’s E1, E2 and E3 Plans. For as little as €99 per month, teams of up to 15 employees can get minutes to use GoTo on their own personal accounts. Alternatively, for only €249, teams with up to 100 employees can start using the service with initial funding being granted

by their companies. “We believe this is a great way for companies to incentivise shared mobility, and benefit their employees at a considerably low cost,” he continued.

“It’s win-win – very cost-effective and, with each of these plans, businesses contribute to the environment and generate tons of savings in CO2 emissions.”

Mr Tominga also underlined the point that GoTo knows each business is different, and that every single company has its own needs, which is exactly why the company’s packages are so flexible. “Trends make clear just how effective car sharing can be for business, and Maltese companies are ready to reap the benefits from this as well,” he said.

He also outlined the ease at which businesses can sign up.

“Businesses can create an account by simply visiting http://join.goto.com.mt and filling in the quick sign-up form.

We’ll then contact them to validate the account, present plans and pricing options, and discuss which would suit them best. Once we agree upon the best option, the selected plan will be assigned to their account, and their team can jump behind the wheel of a GoTo car at their convenience. It really is business mobility made simple,” he concluded.

CHIEF MARKETING OFFICER JOHNNY TOMINAGA

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STOCK MARKET REVIEW

Investor profiles and expectations in the context of investment risk

Doreanne Caruana

What does a rational investor consider when assessing an investment opportunity? We are likely to receive different answers from different people if we had to ask this question randomly to a crosssection of potential investors. This is a perfectly acceptable and understandable outcome that clearly reflects the fact that investors are likely to assess investment opportunities differently, depending on various factors, part of which reflect individual circumstances.

There are typically three types of investors – aggressive, conservative and balanced. The titles already indicate what an investor fitting that profile will seek to attain in executing his or her investment decisions. The aggressive investor is typically not after regular income but would seek to capitalise on the potential growth in the assets chosen, therefore primarily seeking capital growth over time. In this respect, the risk appetite of this kind of investor is usually high and we see that such investors would typically opt for a portfolio which is based on equity securities (or equity-linked indices), particularly in companies that are expected to generate

higher growth in terms of future profitability and returns. These companies may be, but not necessarily, usually associated with sectors or industries that are either emerging or may have not reached a certain level of maturity.

At the other end of the scale, the conservative investor would typically have little to no preference towards investments which are theoretically susceptible to higher volatility and, as such, the securities that one would typi-

cally go for are either fixed-income (bonds), bond funds and/or equities providing a sustainable and visible dividend flow typically as a result of ownership of assets that are either mature and/or provide visible and stable revenue streams.

A balanced profile, on the other hand, will seek to construct a portfolio of investments that provides a balance between the two objectives outlined above, where steady income flows (via

interests and dividends) sit alongside securities that aim to predominantly achieve capital growth over time.

In assessing risk, each of the above investors would have different ways or criteria for assessing and quantifying risks, such that each would expect a return for the risk undertaken that is most likely to be different. The assessment criteria vary but, typically, every investor, irrespective of tolerance levels, should, as a minimum,

consider characteristics such as: the shareholding structure and board composition; industry; sector and project cycle; track record and profitability; strategy; execution risks; and, finally, the financing ability to execute the business plan. All of these factors should, in some form or other, weigh on the assessment every investor should make prior to investing. Naturally, an investor’s profile would then regulate the degree or extent to which the weights attached to these characteristics differ among these variables. For example, while in my opinion every investor should consider the extent of execution risk in every project, an aggressive growth-oriented investor looking at specific sectors would likely be prepared to accept higher levels of execution risk compared to a cautious investor whose primary objective is regular income and, therefore, prefers a no-to-very-low execution risk, with the company’s projects or plans ideally, not only be completed, but also tested over time (through to its mature phase).

In the case of a debt instrument, such as a bond, the assessment of all these risks (or lack of) should then provide investors (principally the cautious ones in this case) with sufficient information in order to determine (subjectively) whether the instrument’s ‘price’ (in this case the coupon, or annual interest rate) adequately reflects the risks assessed. Naturally there are other factors that impact this ‘price’. In the case of a bond, duration is also a key variable.

Typically, the longer the duration (maturity date), the higher the coupon. continued on page 24

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Level of risk tolerance dependent on the investor’s circumstances continued from page 23 Furthermore, when it comes to a debt instrument, because of the finite element attached to the bond, one needs to assess and price also the repayment risk. In so doing, it is important to assess whether the cash generation of the business of the company would be sufficient to build up a reserve that will enable the issuer to repay the debt at the end of the term. In order to partly mitigate this risk, some issuers offer a security for the benefit of the debt holders which essentially allows the investors to liquidate the asset ringfenced as security for the repayment of the debt if the issuer is unable to meet the repayment upon maturity from its operations, cash flows or other means.

While keeping to the same example of a cautious investor assessing bonds, it is, therefore, crucial for them not to be condi-

tioned solely by the ‘price’. For a higher coupon may not necessarily translate into a better deal. In fact, often, it doesn’t. Quite the contrary, a higher price is usually paid for higher risk! Likewise, in the case of aggressive investors, ‘cheap’ does not necessarily mean attractive. This is where the tradeoff between risk and return becomes indispensable.

The concept of the risk-return tradeoff states that the possibility of an increase in return rises because there is an increased level of risk.

As such, while the return possibilities are high, if an investor can tolerate high risks, there is also the downside to that – losses.

Taking on high risk may lead to higher losses and, as such, the risk tolerance of an investor takes on a primary role in assessing which investment opportunities one should go for. The pricing of instruments does not necessarily always take into account all the factors discussed above, or may

take into account other factors not discussed but attributable to the specific issuer, and the acceptance of investors of that pricing should take place only after the proper assessment of the investment opportunity.

Furthermore, an investor needs to be comfortable with the investment vis-à-vis his investment horizon. In other words, given any possible future liquidity needs or alternative investment requirements, will the investor achieve their desired results while maintaining this investment throughout its life (in the case of a bonds specifically) or for a sufficiently long period (as recommended especially in the case of equities), while also coping with any future needs perhaps unforeseen at the time of making the investment decision?

In the context of the instrument’s ability to be easily disposed of on the market, this is also a very important point to consider.

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

All investments carry some form of risk. The level of tolerance to that risk is dependent on the circumstances of the investor, as we have seen. It is paramount that investors appreciate whether they consider themselves to be compensated suf-

ficiently for these risks compared to the price they are being asked to pay for the investment.

Doreanne Caruana is the Head of Corporate Advisory at Rizzo, Farrugia & Co (Stockbrokers) Limited

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BUSINESS UPDATES

Using AI and machine learning to fight money laundering Fighting money laundering is a massive, costly mission that needs to be perpetually in motion. For context, anti-money laundering (AML) measures cost European banks roughly €18 billion each year, with their US counterparts shelling out approximately €22 billion annually.

Banks all over the globe need to have their fingers firmly on the pulse of the FinTech ecosystem, and that means paying close attention to their transaction monitoring standards. Failure to do so could leave banks with a hefty fine. The last 10 years have seen a whopping 90 per cent of Europe’s banks slapped with fines for failing to take the required AML measures – that’s €23 billion on fines alone.

Changes in the tech landscape Staying at the forefront of tech is crucial for any organisation hoping to remain relevant in a highly com-

vised learning, what happens is that raw, uncategorised data is introduced to the system, making it start from scratch. By interacting with that data, the system starts to identify patterns indicative of money laundering activities while also creating new ways to sort and analyse data.

petitive industry. AI and machine learning are developing at breakneck speed, with the biggest cloud providers in the industry making them a clear priority over the last few years.

This tech has the potential to completely revolutionise the front and back-end operations of financial bodies across the globe, boost-

ing risk management efforts, maximising efficiency, and reinforcing the effectiveness of financial crime investigations across the board.

Embracing this new tech can also minimise costs by helping financial institutions meet regulations more efficiently, which frees up human resources that can be assigned to other vital areas of the business.

Types of AI and machine learning There are two types of AI and machine learning – supervised and unsupervised – each with its own set of pros and cons. Supervised learning involves a model, trained using data that has already been categorised, to raise a red flag on any transaction that seems suspicious. In unsuper-

ComplyRadar to the rescue ComplyRadar monitors transactions relating to individuals, accounts, and entities to detect suspicious activity, quickly and effectively. Its machine learning transaction filter provides an additional probabilistic layer on top of the standard rules engine.

This not only drastically reduces false positives but also provides a deeper level of data analysis which is not being captured by simple rules. For more information visit www.complyradar.com or email info@computimesoftware.com

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BUSINESS UPDATES

Turkish Airlines named 2020 Five Star Global Airline at APEX Awards

HSBC Malta launches €250m International Business Fund As part of its growth strategy, HSBC Bank Malta p.l.c. has launched a €250 million HSBC International Business Fund (HIBF) to support ambitious companies looking to steer their business to new horizons.

HSBC Malta Executive Director and Head of Business Development, Michel Cordina, said: “The €250 million fund enables investors, traders and businesses to embark on new journeys by connecting them to international opportunities. With offices in 53 countries and territories, and more than 5,000 relationship managers, HSBC is in a unique position to connect potential customers in new markets. This Fund is also available to assist international businesses who want to invest in Malta to continue assisting the local economy to grow.”

HSBC’s global reach and expertise help approximately 1.5 million business customers – from small businesses to multinationals – unlock their potential. HSBC’s relationship managers are supported by specialists in four fields: Global Trade and

(FROM LEFT) HSBC MALTA CEO ANDREW BEANE, JOYCE GRECH AND MICHEL CORDINA AT THE LAUNCH OF THE HSBC INTERNATIONAL BUSINESS FUND (HIBF)

Receivables Finance; Global Liquidity and Cash Management; Global Banking; and Insurance and Investments.

HSBC Malta’s Head of Commercial Banking Joyce Grech said: “Today’s economy is global and interconnected and, at HSBC, we are able to connect Maltese businesses to fast-growing markets around the world. With the launch of our quarter of a billion euro International Business Fund, my team and I are looking forward to assisting companies in using HSBC’s capabilities to their best advantage.”

More information is available on www.business.hsbc.com.mt

Offering the privilege of discovering 126 countries around the world to its passengers, Turkish Airlines was named a 2020 Five Star Global Airline by APEX (Airline Passenger Experience Association), one of the world’s most trusted and prominent aviation organizations. Thus, Turkish Airlines’ commitment to passenger satisfaction, and to providing top class service above the clouds, were ratified by APEX. Travel industry experts met at the Los Angeles Convention Centre on 9th September for the APEX/IFSA Awards where the APEX Official Airline Ratings™ were announced. Passengers rated over a million flights of almost 600 airlines around the world between July 2018 and June 2019. Categories were rated on a five star scale in five sub categories: seat comfort, cabin service, food and beverage, entertainment, and Wi-Fi. After the feedback was reviewed, the flag carrier was awarded a five star average for the third successive time.

Turkish Airlines Chairman of the Board and the Executive Committee, M. İlker Aycı said: “As Turkish Airlines, we are aiming to offer perfection to our guests in every aspect of their travels. The renewed Business Class on our new Dreamliner, and the launch of an elevated means of travelling, departing from Istanbul Airport, our new home – which has also enabled us to provide exceptional services above the clouds – are evidence of the changes the airline is undergoing. We are happy to see our passengers award that change with five stars. We express our thanks to APEX and to all of our passengers for acknowledging our efforts while offering us this exceptional award for the third successive time.”

APEX distinguishes itself as a first-rate programme that solely relies on passenger feedback on subcategories such as service, entertainment, seat comfort and Wi-Fi during its review process.

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BUSINESS UPDATES

Property valuations just got smarter Dhalia is launching an online valuation tool which uses artificial intelligence to provide a property valuation estimate. Owners can visit propertymalta.mt, enter their property details, and, instantly, find out the estimated value of their property.

How does it work?

The technology works by applying an artificial intelligence model to Dhalia’s large database of property values and other local market data. The algorithm scans all data and applies filters to generate an

approximate valuation. This valuation is based on various factors including similar properties in the locality and takes into consideration the size of the property and the number of bedrooms.

Complementary technology Dhalia’s artificial intelligence tool works hand-in-hand with human knowledge. The data behind the system has been built upon decades of human expertise.

Especially in the case of one-of-akind properties, an automatically generated valuation will not suf-

fice. At all times, a property agent is just one step away, making this a hybrid system.

The future Dhalia’s vision for the future is one where human beings and artificial intelligence work side by side to improve daily life. After bringing 3D property scanning to the Maltese Islands almost a decade ago, Dhalia is once again at the forefront of integrating property and technology.

Try it yourself – visit www.propertymalta.mt

New vPBX solution keeps your business always online Since your team, suppliers and clients are always on the move, your business should be too. You never want to miss any important calls and updates, so a smooth connection is essential, wherever you are.

That’s where GO’s Virtual PBX comes in.

GO Business vPBX benefits If you have a GO vPBX and an internet connection, you have full access to your office. Not only is this reliable,

but it’s also on the Cloud. This means that no hardware is necessary, and with a ‘pay per seat’ subscription, you get the flexibility to add/remove lines as your business changes or grows.

Meanwhile you will avoid time and costs associated with additional setups - thus freeing up resources to let your business grow.

Get that professional edge with extensive features like call forwarding, hunt-

ing groups, auto attendant and free internal calls between colleagues. You can easily get a cost-effective, personalised vPBX Solution, which is especially handy if you’re an organisation looking to scale up operations or even just starting out.

Interested? Get in touch for more information about GO’s vPBX solutions! Email us on info@gobusiness.com.mt or visit www.go.com.mt/business/vpbx