Business Now Summer 2022 by Content House

Business Now Summer 2022

In Depth How rising costs stand to impact local enterprises

30 Interview MHRA President Tony Zahra on Malta’s tourism recovery

46 Industry Greats Nazzareno Vassallo shares the inspiring story behind Vassallo Group

62 Malta’s Most Beautiful Businesses The unique design of the SAW Factory and Offices

Official Partners

Cover Story Financial experts assess the future of Malta’s economy

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con tents Focus

A SEISMIC SHOCK ON EUROPE’S DOORSTEP Rebecca Anastasi speaks to foreign policy and financial analysts on their views on the war in Ukraine, its consequences on Malta and what may lie ahead.

24 In Depth

CAN WE HANDLE THE SPIKE?

Rebecca Anastasi speaks to key business stakeholders to discuss the impact rising costs for manufacturers, retailers and consumers stands to have on local enterprises.

30 Interview

Cover Story

BLOW AFTER BLOW: CAN MALTA’S ECONOMY CONTINUE TO WITHSTAND THE SHOCKS?

Sarah Muscat Azzopardi consults leading financial experts, stockbrokers and economists on how the harsh realities brought about by the pandemic and the war in Ukraine stand to impact the local economy moving forward.

MALTA’S TOURISM RECOVERY AND THE DRIVE FOR QUALITY Malta Hotels and Restaurants Association President Tony Zahra speaks to Robert Louis Fenech about the factors that will determine the success of the tourism and hospitality sector in the coming years.

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Malta’s Most Beautiful Businesses A SPACE WHERE DESIGN AND INDUSTRY MEET

Architect Chris Briffa reveals what went into the unique design of the SAW Factory and Offices to Sarah Muscat Azzopardi, which earned it the award for Commercial and Public Buildings at the recent Malta Architecture and Spatial Planning (MASP) Awards.

Industry Greats

76 YEARS OF DIVERSIFICATION As he hands over the reins of the business to the next generation, seasoned entrepreneur and Founder of Vassallo Group Nazzareno Vassallo shares the inspiring story behind one of Malta’s leading groups of companies with Sarah Muscat Azzopardi.

62 Meet the Artist

SCULPTING THE DREAM

Artist Francesca Balzan speaks to Rebecca Anastasi about her creative impetus and journey.

Food & Drink

RE-IMAGINING LOCAL CULINARY TRADITIONS

Sarah Muscat Azzopardi takes a look at some reconstructed traditional dishes at Michelin-rated restaurants, and compares them to their original counterparts, which you can still find at traditional eateries in Malta and Gozo.

BusinessNow

Editorial

BusinessNow

Editorial

THE SUMMER EDITION OF BUSINESS NOW comes against an uncertain backdrop and unprecedented reality for local and international business. As Malta – and Europe – contends with a sharp increase in global energy prices, significant deterioration in public finances, high inflation, supply chain shortages and the serious dearth in human resources brought about by the pandemic and the war in Ukraine, we consult several key figures; from leading stockbrokers and economists to foreign policy and financial analysts, as well as a number of business stakeholders themselves, on how these harsh realities stand to impact the local economy. We also discuss the recovery and future of the tourism and hospitality sector with Malta Hotels and Restaurants Association President Tony Zahra, and take a look behind the scenes of one of the island’s leading groups of companies, Vassallo Group, in Industry Greats.

PUBLISHER Content House Group 3, Level 2, Mallia Buildings Triq in-Negozju, Zone 3, Central Business District, Birkirkara CBD 3010 Tel: 2132 0713 info@contenthouse.com.mt www.contenthouse.com.mt EDITOR Sarah Muscat Azzopardi HEAD OF SALES & BUSINESS DEVELOPMENT Marie Claire Camilleri SENIOR OPERATIONS & ACCOUNTS EXECUTIVE Sue Ann Pisani CREATIVE DIRECTOR & DESIGN Nicholas Cutajar

On a lighter note, we discover the unique design of the SAW Factory and Offices, which earned it the award for Commercial and Public Buildings at the recent MASP Awards; and turn our attention to food: shining a spotlight on a number of remarkably reconstructed local traditional dishes at Michelin-rated restaurants.

COVER PHOTO Bernard Polidano Shot on location at The Phoenicia Malta

Rounding off the lifestyle element, we delve into the world of artist Francesca Balzan to talk about her creative impetus and journey.

Enjoy the issue, Sarah Muscat Azzopardi

Content House Group would like to thank all the protagonists, contributors, partners, advertisers and the creative project team that have made this publication a success. Articles appearing in this publication do not necessarily reflect the views of Content House Group. All rights reserved. Reproduction in whole or in part without written permission of the publishers is strictly prohibited. Business Now is the largest business magazine of its kind published by Content House Group, one of Malta’s largest media organisations. Business Now Magazine is the sister brand of businessnow.mt, Malta’s fastest-growing business news portal. This publication is distributed to leading companies and businesses operating in different sectors including those in the services sector, manufacturing, retail, ICT & software development, importation, shipping and freight, recruitment, accountancy & audit, corporate and legal, communications, new technology and many more. Business Now’s exclusive distribution network also reaches leading CEOs and business leaders. The business magazine is also distributed to iGaming companies, creative and marketing agencies, Government ministries, departments and entities, banks, hotels, and architecture firms, as well as to the waiting areas of private and public hospitals and clinics, car showrooms, business centres and yacht marinas. Beyond the free distribution network, Business Now is also available at leading newsagents around Malta.

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PHOTOS BY BERNARD POLIDANO. LOCATION: THE PHOENICIA MALTA

Blow after blow: Can Malta’s economy continue to withstand the shocks? The pandemic and the war in Ukraine have brought about an unprecedented reality: a sharp increase in global energy prices, significant deterioration in public finances, high inflation, supply chain shortages across sectors and a serious dearth in human resources. Sarah Muscat Azzopardi consults leading financial experts, stockbrokers and economists on how these harsh realities stand to impact the local economy moving forward.

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Dr Stephanie Fabri is an economist specialising in strategic management and public policy. Having worked in the private and public sectors, Stephanie brings a wealth of knowledge and experience in applying economics to firms, consumers and communities.

“The current situation is very particular and fluid, making it very difficult to predict how everything is going to unfold,” says Stephanie Fabri, sharing her assessment of the local economy moving forward. “In order to be able to outline a possible scenario, we need to understand the nature of the crisis we are experiencing. Currently, we are going through the economic aftermath of a global pandemic which halted crucial economic sectors, primarily tourism and retail. As economies started to recuperate, at a global level, market players were hit with increases in prices and supply chain shortages. The significant increases in consumer demand, together with BREXIT and the Russia-Ukraine war, have continued to amplify these economic issues,” she explains, breaking down this unique situation. Analysing where this leaves our economy, Dr Fabri references the European Commission’s forecast that Malta will have one of the strongest economic growth rates in the EU in 2022 and 2023, coupled with a relatively low inflation rate when compared to other member states. Despite this positive outlook, she says, “we still need to work hard to contain social and economic inequality levels. Social inequality is a result of price increases of basic goods such as food and basic services. Economic inequality occurs as a result of the present crisis impacting some sectors more than others which is likely to lead to discrepancies in investment levels, wage growth, productivity growth and profits. By containing these inequalities, we would be ensuring that our economic model remains as competitive, resilient, and agile as possible for the upcoming challenges.” Giving her take on interventions to curb the implications of the crisis, Dr Fabri says that these can either take the form of monetary (change in interest rates/money supply) or fiscal policies (change in Government spending and tax regime), or both.

“We need to ensure that we diversify Malta’s economic fabric by opening up to new niche markets.” “There are different schools of thought on what option governments should take, however, there seems to be a shift in thinking towards a combination of monetary and fiscal interventions to re-stabilise economies. This means that we are likely going to see different interest rate hikes this year by the European Central Bank, aimed at stabilising investment and spending, combined with fiscal interventions which are likely to take place to enhance efficiency in public spending and redirect spending where most needed, essentially to retain employment and protect the vulnerable groups and economic sectors,” she posits. Of course, Dr Fabri continues, “one has to be extremely careful with interventions as an imbalanced combination might lead to stagflation (slow economic growth, high inflation and high unemployment), social unrest, and other economic complications which could easily lead to a situation which makes recovery extremely challenging.” She adds that whilst recovery in sectors like tourism will help to serve as a cushion in the short-run, there are challenges that Malta needs to address now in order to ensure a sustainable and efficient future for our economy. “Most importantly, we need to ensure that we diversify Malta’s economic fabric by opening up to new niche markets to ensure that we remain relevant as an investment destination whilst sustaining and attracting high-quality jobs,” she notes, describing this as a principal factor which will ensure that we remain competitive.

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Nick Calamatta is Co-Chief Executive Officer of the CC Finance Group, focusing on Group strategy and business development. He has 16+ years industry experience, previously focusing on investments and corporate finance. “There is no doubt that there will be significant headwinds for the economy,” begins Nick Calamatta, within the context of the local impact of the pandemic and the war in Ukraine. While the significant disruption caused by the pandemic has been partially cushioned by Government initiatives given that the local economy is highly dependent on tourism, the Co-Chief Executive Officer of CC Finance affirms that the increase in energy prices is a phenomenon that inevitably re-occurs after any harsh economic slowdown, in this case due to the pandemic. What is more concerning, he believes, are the current geopolitical tensions which have pushed higher energy prices to levels that haven’t been seen in over a decade. “This has been to the detriment of public finances and will probably continue to be the case, which might limit options of further stimulus in the future,” he warns. Meanwhile, Mr Calamatta notes that supply chain shortages are conditioning businesses globally, with local businesses not being an exception. “Unfortunately, these shortages are also the incident of the pandemic and the policies taken to abate it, while the recent invasion in Ukraine has continued to amplify these shortages which, in turn, pushed prices of basic needs higher,” he asserts, expressing the hope that the current situation will not drag on. In his view, the HR shortage is one of the most critical issues. “Government should increase its commitment through employment policies in order to mitigate the current severe shortage which is currently impending growth. This phenomenon is not restricted to the hospitality sector but is also prevalent in other sectors including financial services and software development. As a country, we have to make sure we attract talent in order to continue growing,” Mr Calamatta states.

“Malta is a small economy and if we play our cards right, we could continue to thrive.”

Still, he continues, “the local economy in 2022 should be positively impacted by the pent-up demand in tourism, hopefully to pre-pandemic levels. This should partially cushion against other factors which we are facing globally. Undoubtedly, the current global reality will also take its toll on the domestic economy, and I think Government policy adjustments are imperative at this juncture.” Commenting on the fact that local businesses and the local financial markets have so far shown resilience, Mr Calamatta states that bar the pandemic, which inevitably depressed economic growth, Malta has over the years rationally and tactfully managed to attract strong foreign direct investment, which was also critical to mitigate severe economic downturn in difficult economic situations.

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“Malta is a small economy and if we play our cards right, we could continue to thrive. Getting tourism back to pre-pandemic levels, addressing the impending tax challenges relating to a global minimum tax rate, and getting local companies to pay their taxes due is going to be critical,” he says, adding that nonetheless, a lesson to be learnt from the pandemic is the need to diversify from the sectors Malta is currently dependent on. “Government should continue to strive to attract industries that have strong growth potential and that will also contribute to the domestic economy. A strong resilient economy automatically implies a stable local financial market,” he notes. Reflecting further on local and global financial markets, Mr Calamatta explains that over the past years, markets have been cheered with the excessive monetary easing by major banks which splashed liquidity into the system. “The current market moves are very much conditioned by this retail liquidity element, which I can say that over the past months made irrational moves that are not based on fundamentals,” he says, noting that while markets adjusting to higher interest rates is a normal practice, what has complicated matters are the current geopolitical tensions which emerged as the global economy is still recovering from the pandemic. “These have triggered remarkable uncertainty and markets are rightly questioning whether higher interest rates at this point in

time are the right decision. It is also important to point out that in 2008, the crash was brought about by different factors than today. No crash is the same, and although I will not make any predictions, I would tend to say we are possibly close to calling the bottom of this pull back, unless geopolitical tensions continue to deteriorate,” he affirms, adding a positive caveat: “history shows that after any market crash, markets have recovered strongly.” All things considered, his advice for financial investors and business people is that, “while every individual has their exigencies, ensuring a liquid part of your assets is always important for a rainy day – a liquid part for taking advantage of market sell offs, and also keeping a long-term view on an equity portfolio will be rewarding over the long term and reduce inflation risk on capital.” Meanwhile, he continues, “if you own a home in Malta, chances are that you already have a substantial part of your assets in property; this also is an important part of your portfolio for the long term. However, despite that volatility conditions the nerves of every investor, the beauty of it is that it offers pockets of opportunities at significant discounts, where an investor will be rewarded in terms of return in the medium to long term. Thus, a word of advice, being diligent in stock picking in the current environment should transpire in a long-term achieved goal.”

Edward Rizzo is Director at Rizzo, Farrugia & Co. (Stockbrokers) Ltd. Edward is entrusted with the overall responsibility of the company’s stockbroking and research units. “We are living in unprecedented times that are proving challenging to many sectors, and denting investor and consumer confidence in an indiscriminate manner,” says Edward Rizzo, taking stock of the current geopolitical situation. “Being a small island nation with virtually no natural resources, Malta is inevitably a price taker. We are therefore directly exposed to international dynamics and very much dependent on events taking place overseas.”

Furthermore, the Director at Rizzo, Farrugia & Co. (Stockbrokers) Ltd hopes that in the months ahead, recent indications that Malta has made the required headway to be removed from the FATF grey list will materialise, stating that “this would really be a positive development especially in view of upcoming changes to the country’s tax regime in line with global efforts for the introduction of a minimum corporate tax rate.”

Acknowledging that Government has stepped in to cushion the blow in certain activities such as energy and grains, Mr Rizzo is certain that it will prove challenging to sustain these temporary fiscal measures over a long period of time.

Thus far, Mr Rizzo believes that the resilience of local businesses and the local financial markets has largely been underpinned by Government spending in sectors that, for different reasons, were under extreme pressure, such as hospitality and infrastructure.

“The reality is that Malta can only change and/or manage what is within the country’s control, by creating a context that is friendly enough to keep the positive economic momentum ongoing by principally focusing on the main exports – namely tourism and skilled human capital,” he notes, pointing out that the challenges surrounding an inflationary environment can be overcome if the economic wheel keeps turning at least at the same pace as inflation, as, in theory, these two forces would offset each other. “Luckily, the rebound in tourism is now more than evident, thus contributing in a timely fashion to mitigate the prevailing downward forces on consumer discretionary spending and sentiment.”

“We are going through a period of remarkable instability following two major black swan events.”

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Commenting that the level of public debt has increased considerably as a result of the significant Government support, Mr Rizzo points out that it is still at “respectable levels” when compared to other countries within the euro area. In fact, he highlights, “in its latest forecasts, although the European Commission is expecting Malta’s debt-to-GDP ratio to approach the 60 per cent by 2023 compared to just over 40 per cent prior to the pandemic, this level of national debt is way below the forecasted average debt-to-GDP ratio of more than 90 per cent for the entire euro area.” Malta’s healthier financial standing is largely due to the stronger economic growth achieved in recent years, he continues, noting that the local economy is also expected to continue to perform better than other euro countries; referencing recent reports by the European Commission, Fitch and Moody’s predicting Malta’s GDP to grow by 4.2 per cent this year, which is considerably higher than the forecasted increase in output of 2.7 per cent for the euro area. Still, while the comparatively healthier financial standing is encouraging, Mr Rizzo says it is now important for Malta to restore fiscal discipline with a view of rebuilding the capacity to deal with economic difficulties that will undoubtedly arise again in the future. Moreover, he adds, “the various industry players and policy makers need to keep a close eye on Malta’s competitiveness because this is what ultimately makes us a jurisdiction of choice when it comes to foreign direct investment.” Directing his attention to the local and global financial markets, Mr Rizzo’s biggest concern is high inflation. “Once inflation levels out, it is likely that the current volatility that we are seeing across international financial markets subsides. Unfortunately, restoring prevailing high inflation back to major central banks’ target of two per cent will require time and, as the US Federal Reserve said, some ‘pain’ as well, as there are deep structural issues involved which have been resonated further by the war in Ukraine,” he maintains. Overall, it is important to keep in mind that financial markets move quickly and price in future events very rapidly, Mr Rizzo continues, adding, “we expect volatility to continue to feature throughout the rest of 2022 as investors grapple between a number of factors, namely the aggressive stance by the US Federal Reserve to tighten monetary policy, a somewhat unclear picture of what the European Central Bank might be doing in the coming months with respect to monetary policy – which is also contributing to a considerably weaker euro (thus translating into higher inflationary pressures for products imported outside the euro area) – as well as an uncertain economic climate in China which is having prolonged negative repercussions on supply chains.” As such, Mr Rizzo believes that it is impossible for anyone to predict the immediate movements across financial markets, or whether we are in for a repeat of the 2008/09 crisis. Conversely, he attests, “it is safe to say that financial markets go through different cycles over time, and currently we are going through a period of remarkable instability following two major black swan events – namely the pandemic and Russia’s invasion of Ukraine. It is hoped that the sharp dislocations that we are seeing today

across various asset classes abate in the coming months, and that a period of normalisation settles in gradually and in due course.” Sharing his financial advice, Mr Rizzo states that “over the years, holding a variety of asset classes (bonds, shares, commodities, property, etc) has proved to be a good balancing formula, although the most important element in investing is the time horizon, as investors must always maintain a long-term perspective in mind,” he explains. “Recent developments have again shown that the most important lesson when investing in shares is to focus on quality businesses with strong fundamentals – namely companies with solid cash flow generation, pricing power, interesting growth prospects, as well as respectable levels of leverage,” he continues, admitting that volatility across financial markets may lead to investor panic among inexperienced retail investors, but this is where opportunities generally emerge for the seasoned investor.

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Jesmond Mizzi is Managing Director of Jesmond Mizzi Financial Advisors Ltd and Non-Executive Director of Hili Ventures Ltd. He has been involved in the financial services industry for over 24 years. Lamenting on the added pressures on central banks, companies and individuals brought about by the war in Ukraine at a time in which an acceleration of global economic recovery was expected, Jesmond Mizzi is heartened by the European Commission and Fitch Ratings’ latest outlooks for Malta, which noted the rapid growth of the local economy, partly thanks to the rebound in the tourism sector postpandemic; as well as the Commission’s expectation that Malta will withstand the impact of the war and the increase in commodity prices. That said, Mr Mizzi believes that there remain several challenges for the country and its policy makers. For example, he states, “while the tourism industry is expected to remain a significant contributor to Malta’s economy, increased inflation and potential stagnation in neighbouring countries could present risks to Malta’s tourism product.” “Another key question relates to the extent to which Government can continue pumping money into the economy to sustain it as it is doing with energy subsidies,” he continues, noting that while this has its advantages, it also comes at the expense of a higher deficit.

“Inflation is eroding the value of our savings every day.”

And, while he acknowledges that local businesses and the local financial markets have so far shown resilience, Mr Mizzi warns that the pressures brought about by the war and the effects of the pandemic could yet negatively impact economic growth. “One would expect the rate of economic growth to decline as higher prices reduce demand for non-essential items,” he states, affirming that locally, household consumption is the main component of GDP, and a decline in consumption is sure to leave its mark on the economy. On the other hand, the Managing Director of Jesmond Mizzi Financial Advisors Ltd also considers the possibility that some consumers, especially those whose income was not impacted by the pandemic, will have seen their savings go up between 2020 and 2021, in part because of fewer opportunities to spend money. “This group will be better placed to cope with higher prices than consumers who experienced a reduction in income, many of whom are likely only just seeing their income return to prepandemic levels,” he ventures. Meanwhile, Mr Mizzi notes that within the local financial market, this year the equity index has, so far, outperformed its international counterparts, for a number of possible reasons. “Firstly, there is minimal foreign intervention in local equities, with most investors investing with a long-term view and tending to buy and hold. In addition, most of the revenues generated by companies listed on the Malta Stock Exchange come from local operations, making them less susceptible to international shocks,” he explains. Comparing the situation to that in the 2008 crash, Mr Mizzi points out that the banking sector today is in much stronger shape, and the regulatory capital buffers which the sector put in place as a result of that crash have made banks safer and more risk averse. “While a decline in economic activity will have an impact on the banking sector, it is widely believed that most local and international banks can weather an economic downturn much better than they were able to in 2008,” he says, and as a result, if markets fall further, the decline should not be banking sector-led. “Developed international markets have been highly volatile this year, yet the most volatile sectors were those which are highly sensitive to interest rate changes, such as equities in the technology and other growth sectors. Sovereign bond markets have also shown some volatility but yields predominantly moved higher as prices fell,” he continues.

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Expanding on his evaluation, Mr Mizzi notes that at the start of 2022, investors’ concerns were rooted mainly in the prospect of higher inflation figures and the expectation of an impending hike in shortterm interest rates by central banks. Then, Russia’s invasion of Ukraine exacerbated these concerns and has caused energy and food prices to surge. As a result, he explains, “the global tech sector is among the worst performing equity sectors so far this year. The value of growth companies tends to be inversely related to the changes in interest rates and the sector tends to be highly sensitive to changes in interest rate expectations.” Finally, his advice for financial investors and business people stems from the fact that “inflation is eroding the value of our savings every day.” “Despite the current market volatility, equities are expected to continue delivering mid-single digit growth rates over the long term. However, in the short term, volatility, mainly caused by higher inflation rates, is likely to stay. Perhaps a silver lining is that downside volatility will also create new long-term opportunities that can be exploited,” he says. In his view, Mr Mizzi advises that “on the equity side, investors should favour cash-rich and profitable companies which have pricing power. Such companies are better positioned to pass higher input costs to the end customer in the form of higher prices, without experiencing

a significant decline in revenue. Companies which produce what are considered to be consumer staples are also expected to continue doing well. All this means a more defensive equity portfolio and less exposure to growth companies and small and medium-caps.” Meanwhile, on the bond side, he notes, “volatility spiked across all segments of the bond market, as high inflation figures and a change in central banks’ narrative spooked fixed-income investors. As a result, the negative sentiment surrounding the bond market gained traction at the start of the year, with yields on highly rated bonds rising to levels we haven’t seen in years. Such an increase in yields has presented new challenges for issuers as well as opportunities for bond investors. If economies fall into recession, the risk of high inflation should subside and we would expect yields on bonds to stop rising, as investors anticipate a reduction in the extent of rate hikes by central banks going forward.” In conclusion, it is his belief that investors should be more selective and favour more defensive sectors over high growth companies. “As volatility remains elevated, drip-feeding the amount available for investment may prove to be a successful strategy while the benefits of diversifying across bonds and equities may come back into play as yields on sovereign bonds increase and attractive opportunities start to emerge in good-quality bonds with short-term maturity.”

Adriana Camilleri Vassallo, CEO at Francis J. Vassallo & Associates (FJVA) set up the corporate, tax and advisory services provider in 1998, together with her father, Francis J. Vassallo. Giving her take on the economic impacts brought about by the current geopolitical scenario, Adriana Camilleri Vassallo notes that in her view, the impact of the pandemic and the impact of the war in Ukraine should be considered separately, despite both having had, and will continue to have, an impact on the Maltese economy. “On the one hand, the pandemic had a negative impact with many sectors of the economy working at less than full capacity. This resulted in a slowdown in the economic activity of the country, with the tourism, catering and accommodation sectors feeling the full brunt of such economic downturn. On the other hand, other sectors, such as the financial services sector, in which my company operates, were more fortunate not to have been negatively impacted to the same degree,” she explains. Nevertheless, the CEO at Francis J. Vassallo & Associates (FJVA) continues, “the resulting downturn in economic activity reduced the profitability of a large segment of the economy, resulting in less revenues being raised by Government through direct and indirect taxation.” At the same time, she notes that despite this reduction in Government revenue, the Maltese Government implemented economic rescue measures to save

“Malta is not immune to the negative impacts being faced by the world economy.”

livelihoods as a result of abrupt losses of income. “This naturally led to a drastic increase in the country’s debt burden,” she highlights. Meanwhile, Ms Camilleri Vassallo affirms, the impact from the Ukraine-Russia war is affecting supply chains and energy prices, resulting in inflation. “The Maltese Government has stated that it will do everything possible to protect the Maltese economy from the negative effects caused by the Ukraine-Russia war, but with the country’s debt burden having already substantially increased as a result of the pandemic, the question remains – is this increase in public spending sustainable?” she posits.

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Answering her own question, the CEO believes that this is not the case, stating that measures should be taken to get Malta’s finances back on track. “These funds will need to come from somewhere. We are an island and heavily impacted by supply chain shortages and certainly not immune to the inflationary pressures that the whole world is exposed to. At some point we will also need to face these realities,” she affirms. Ms Camilleri Vassallo also goes on to draw attention to the challenges the local economy continues to face due to Malta’s greylisting. “Whilst the direct effects may not be so evident to some, the indirect effects are also having a negative impact. We need to ensure that Malta is removed as soon as possible to avoid the medium to long-term effects that remaining on the grey list will have,” she warns, pointing out that the signals seem to suggest that we are on the right track in this respect. On the subject of controlling inflation, the CEO references the fact that the President of the European Central Bank (ECB) has already announced that the ECB is set to increase interest rates in July and September 2022. “Changing interest rates is a primary mechanism used to avoid prolonged inflation and achieve price stability. The ECB increasing interest rates makes government borrowing more expensive. The Central Bank of Malta would then need to follow,” she notes, adding that this general increase in interest rates would make it more attractive for consumers to save with higher yields on saving deposits. On the other hand, she continues, loans will become more expensive, which would generally lead to a slowdown in private investment. For this reason, Ms Camilleri Vassallo believes that an increase in interest rates would be a necessary measure, reiterating, “Malta is not immune to the negative impacts being faced by the world economy.” “It is important to note that when people start talking about inflation, many companies could take advantage and increase prices of their products, with the excuse of inflation, as has happened in the past,” she continues, affirming that this inflationary aspect should be controlled immediately as it could spiral into wage increases.

“Malta needs to align public spending with revenues in order to be able to sustain the economy in the longer term rather than the short or medium term. Government recruitment has also increased over these past years, and thus a re-think of Government recruitment in the public sector needs to be re-considered, something which was also mentioned by the outgoing Principal Permanent Secretary Mario Cutajar in the past weeks,” she concludes.

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Property

The state of Malta rentals in 2022 With global business somewhat returning to normal and showing growth, we put rentals in Malta under the spotlight. Speaking to the experts at Malta’s biggest and oldest property Group, Frank Salt Real Estate, Business Now asks some direct and pertinent questions. Letting Manager Philippa Tabone and Head of its Commercial Business Division Rita Schembri give us the answers. COMMERCIAL – RITA SCHEMBRI What is the current sentiment among the big players in Malta’s commercial office rental market? The outlook is cautious, but very optimistic. Due to the fact that some office spaces have been standing vacant as a result of COVID-19 (but most were still officially rented under contract), big business has been reluctant to renew leases and preferred to look for boutique spaces. The hybrid model for employees splitting time between working from home and the office means that business owners do not need the vast corporate spaces of before. They are completely rewriting contracts and leases to cater for the new ways of operating, not least because this affects their bottom line. Does this mean our business parks and offices will likely turn into ghost towns? Not at all! Owners of premises are taking advantage of the new opportunities. The culture of business is very dynamic and many landlords acquired expert advice to gauge the

way forward. We are now seeing the literal outcome of these findings. Premises are being re-envisaged, remodelled, redesigned and in many cases updated. Tenants, on the other hand, are adjusting their needs and looking for new spaces that fit those needs. What does this entail? Offices are being made friendlier and scaled down into smaller pods or modules. This is in order to accommodate smaller amounts of on-site employees due to the workfrom-home/office hybrid model, and not all employees are physically present at the office on any given day; this requires less of a footprint and tenants’ needs are currently dictating the market. What happens to the extra space that has now become available? Well, this is very exciting! Sought-after locations that were previously unavailable still play home to the same tenant, but they now need less space. Historically, having had a good

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business address that formed part of a company’s goodwill and brand, tenants don’t envisage moving, but after renewing and revising their contract with the landlord and downsizing, part of the building becomes available to others who are only too keen to get in! So desirable addresses still have good occupancy rates per square metre. It’s all about location, location, location. Are there other developments we should know about? A large percentage of both employers and employees are eager to get back to the office, though this will be along the hybrid work model. Zoom, WhatsApp and Teams can only take you so far, so there are crucial times when employees of any company need to be physically in one another’s presence as body language or just being social is very important when it comes to community spirit and team building. There will still be boardrooms and informal meeting areas besides desk spaces in companies, but positive changes are being made to the design and layout of these. Better ventilation is a must and spaces need to be inviting and most importantly, safe. Employees are split into smaller units or come in on different days and the aim of this is to minimise employee exposure to potential threats. What are your thoughts on the way forward? Despite current concerns about the ongoing Ukraine war and the fallout on world economies, Malta’s business sector tends to be quite resilient and well equipped to deal with potential issues. I am optimistic about Malta’s place in the world economy and there will always be a need for commercial space of any kind. Fitch Ratings Agency has awarded Malta an A+ rating with a Positive Outlook and with tenants now having more choice and opportunity than ever before, I say ‘Buckle up!’ – I see exciting times ahead.

RESIDENTIAL – PHILIPPA TABONE What can you tell us about the current status of the residential rentals market? I cannot say that we did not feel the effects of the pandemic, as a large sector of the tourism and foreign workers’ rentals markets slowed down to a trickle overnight until nearly the third quarter of last year. But the big surprise is how unbelievably quick the bounce back has been! Rentals are flourishing once again. What are your landlords saying? Although it was very tough, many of them took time to reflect on the way forward and many spruced up their properties to be ready for the anticipated upswing. Landlords are now more proactive in looking after tenants, as a happy tenant is potentially also a long-term tenant.

How’s the short-term rentals and tourism market doing? Extremely well. With the last of the travel measures lifted, the ease of travelling for the holidays is nearly back to what it was before and the demand for holiday rentals is great. When times were tough for your landlords, what measures did you take to help? The older generation in particular were at a loss as to how to overcome the problematic situation. Many were faced with sitting with empty apartments for a long time if nothing was done. So, we took it upon ourselves to negotiate between existing tenants and the landlords, brokering deals that worked in everyone’s favour. Many tenants were unable to pay their rent for some months, so we endeavoured to have a win-win situation: in several cases, rents were waived for some time or lowered substantially in order to retain the tenant. We did this all free of charge and as a measure of goodwill. What do you foresee for the near future; let’s say the rest of 2022? Malta’s popularity as a destination has been phenomenally successful in the past and this is set to continue. Besides the Government’s own ongoing campaign marketing ‘Brand Malta’, Frank Salt Real Estate has been extremely busy marketing the country, its property investments, residency options and tax opportunities in several countries. We are currently so busy that we are recruiting additional letting agents on a national level to help us cope with not only the present demand, but also to prepare and equip us for what we believe is yet to come.

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A seismic shock on Europe’s doorstep

When Russia invaded Ukraine on 24th February this year, the world gasped, reeling from the horror which had been unleashed on the Eastern nation, its people, and its children, as well as the broader political and economic geopolitical implications. Here, Rebecca Anastasi speaks to foreign policy and financial analysts on their views on the war, its consequences on Malta and what may lie ahead.

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IT’S NOW BEEN OVER THREE MONTHS since Vladimir Putin’s invasion of Ukraine, plunging Europe into war and killing (so far) 3,838 civilians – including 256 children – according to the Office of the United Nations High Commissioner for Human Rights (OHCHR). Yet, as the human toll continues to be documented and processed, there is an increasing awareness that a protracted conflict will also extend Ukraine’s, and Europe’s, financial woes – indeed, Ukraine’s economy is expected to contract by 45 per cent this year, the World Bank predicts, leading to a longer recovery once the tensions have been resolved. Prolonged hostilities will also exacerbate the ripple-effect being seen in Europe, where fuel and food prices are increasing, pushing up energy costs, and threatening the safety and security of the continent, which is still recovering from the COVID-19 pandemic. “In terms of the European security architecture, it’s opened a deep wound which is going to take long to heal,” former Minister of Foreign Affairs, Evarist Bartolo says, pointing to the war’s significance in light of the anniversary of the Helsinki process, which culminated in the Helsinki Accords, signed in 1975, aiming to diminish tensions between the Soviet and Western blocs of Europe. “We are approaching the anniversary of the Helsinki process, which would have been celebrated in 2025, but now, rather than the spirit of Helsinki past, we are confronted with living spirits, since putting Europe together again is going to be a challenge. Whether we like it or not, Russia is partly in Europe and it’s important to have some kind of security architecture in which territorial sovereignty is respected, and in which we safeguard each other’s security. That’s going to be a tall order, since first there needs to be a ceasefire and then years of rebuilding,” he explains. From an economic perspective, “the whole world has been affected”, he continues, though he underscores the particular vulnerability of the Mediterranean region. “We’re living in a sensitive area of the world, where countries like Egypt, Tunisia, Libya, and Algeria get most of their wheat from Ukraine and Russia. However, the issue is not just prices – which have hit everyone – but also supplies, for this and for next year. And, we know that problems in the supply of wheat in these countries have led to political instability.” Elaborating on the impact of the war on Malta, Mr Bartolo outlines the five main areas which have been hit worldwide due to the conflict

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“The war in Ukraine has changed the world irrevocably.” Former Minister of Foreign Affairs, Evarist Bartolo

– grain and wheat; transport; energy; metal; and microchips. “This war basically touches upon everything,” he states. In this light, he praises the European Union’s decision to extend the suspension of its Stability and Growth Pact (SGP) which, usually, limits countries to keeping their public deficit and debt below prescribed limits. “This will be suspended until the end of 2023, and that’s good news, since it means that our Government can continue supporting families and businesses.” Mr Bartolo also praises the decision to diversify energy sources in Malta, with the price of energy from the power station being considerably lower than any sourced from the continent. “If we had only been dependent on the interconnector [from Italy], it would be a tragedy. We would be in trouble, since there is a substantial price difference between the cost of generating energy through the power station and importing power. With the latter, you’re tied to the European market and that is something we cannot influence. But, at least, the hedging agreement with the power station has served as a cushion since, of course, energy has a big impact on our economies and on families,” he says For, he underscores, “we cannot influence the international or global environment ourselves; what we can do is mitigate the effect in Malta.” In this regard, he also points to the need to diversify traditional supply and value chains saying that, typically, “there is a kind of inertia” and the same sources keep on being used. “However, it would be wiser in terms of

security, and the supply of energy and goods, to diversify. As the war in Ukraine has shown, if you’re too dependent on one country, you’ll be less resilient and flexible to face any challenges which arise.” The energy crisis precipitated by the war is also pushing other, bigger countries to discuss alternative sources, he says. “One of the greatest consequences of the war has been its impact on the climate crisis since we are burning more coal and more fossil fuels than ever, yet there is hesitation to move towards alternative energy, and to move towards something which is deemed to not be developed enough.” It has, thus, also raised the possibility of revisiting nuclear energy, he continues to explain, with France moving towards this solution as a way of diversifying their energy sources, although there is still much hesitation on the continent, in countries like Germany and Italy. These discussions, however, are symptomatic of the new reality countries around the globe have woken up to. “The war in Ukraine has changed the world irrevocably. We were coming out of COVID thinking the world will never be the same again; the climate crisis is also changing the world, and now this war. At the moment, it would be presumptuous to say how the landscape could continue to shift in terms of geopolitics, security and the economy. The worst thing that could happen, however, is if the world fragments into hostile blocs, with countries decoupling from each other and even refusing to trade with each other,” he concludes.

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This is because the Russian invasion of Ukraine is not “some ‘distant’ war”, he elaborates. “It is happening on our doorstep. It has made European nations realise that Russia will always be Russia, an expansionist autocratic state that can, and will, from time to time, become a threat to the Western concept of freedom and democracy.” He credits this realisation to shifts in the foreign policy of countries such as Germany, which have, typically, stayed out of military conflicts – in arming and financing Ukraine’s military machine yet that have now become embroiled – and the decision by Finland and Sweden to submit their application to join NATO. These moves, he says, could never have been predicted. “In fact, this cruel invasion of Ukraine by Russia has had two salutary effects: one is that EU citizens now realise that peace is a struggle one has to work for. Perhaps, now, people realise that the EU – originally the European Coal and Steel Community – was primarily formed as an alliance of countries intent on achieving lasting peace in a Europe which was, previously, continuously at war, and to do so through economic progress,” he says.

Elaborating on the impact here in Malta, Mr Bonello admits to feeling “baffled”, since “it appears to me that very few have realised the significance of this major development in geopolitics.” He underscores the moral necessity to think beyond what we can obtain from the crisis towards what we can contribute to a country to a lasting peace where one is not threatened by his militarily more powerful neighbour.

PHOTO BY TYLER CALLEJA JACKSON

Many of these sentiments are echoed by financial advisor Paul Bonello, who says that “the war in Ukraine has created indeed a seismic shift, particularly in foreign policy. The idea which we Europeans have been accustomed to, and which we took for granted – that of peace between nations – has been shattered.”

In this light, and taking into account the defiance and Ukraine’s refusal to capitulate, as well as the motivation of the nation’s military and civilians, Putin’s incursion, was a “miscalculation of Ukrainian resistance and of the West’s resolve to unite in defence of aggression.” Zeroing in on the economic repercussions, Mr Bonello says that the war has affected economy and trade – across the globe – in a substantial way, but he believes the impact will only be temporary, and this is due to the realisation by political leaders and economic analysts that the conflict will be long, and therefore, new ways of doing business – and of surviving – are necessary. “Hence, countries are changing their trading patterns permanently. Yes, there has been a major short supply of oil and gas, as well as agricultural products such as wheat, since both Russia’s and Ukraine’s export markets are blocked – the former by sanctions, the second by logistics. But, the major economies will adjust with new suppliers, new export markets, new energy sources and so on,” he explains. This is why, he continues, “most economists agree that the sudden increase in inflation – caused by supply shortages rather than excessive consumer demand – will probably become milder with the passage of time. Russia’s economy, however, will suffer permanently: once more their economy has become central and ‘self-sufficient’ – common people will have to be content with purchasing local produce for all their requirements from food to cars. The freedom which they had found with Gorbachev and their taste of Western freedom and consumer choice has abruptly come to an end,” he asserts.

“The idea which we Europeans have been accustomed to, and which we took for granted – that of peace between nations – has been shattered.” Financial Advisor, Paul Bonello

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Taking a different perspective, Joe Tanti, the Chief Executive Officer of the Malta Business Bureau, ties Malta’s reaction to the wider psychic shock events of the past few years, precipitated by changes in the status quo. “Our world, economy and society at large have suffered through big ordeals in recent years. Locally, we have experienced the unease, uncertainty and shift brought about by the advent of Brexit; the hardships, and sacrifices that the global health pandemic caused; and now we are witnessing the devastating economic and humanitarian effects of war,” he explains. Indeed, “the war in Ukraine, which has now been ongoing for over three months, came as quite the shock to the European continent. We are still at a very fragile state following the global health crisis and, with the advent of war, the process of recovery has been made even more challenging. We are now dealing with a precarious and volatile situation which needs to be constantly and closely monitored,” the MBB CEO continues, referring to the war in Ukraine as “the third asymmetric shock whereby the economic conditions shift suddenly,” following the 2008 financial crash and COVID-19. “Malta, now, once again, is fighting shock waves as its European neighbours are also experiencing increased price hikes, supply chain disruption and more pressure from the refugee influx, not to mention having to tackle the issue of their dependence on Russian oil. Malta remains very sensitive to these changes given its dependence on its European neighbours for its imports and exports,” Mr Tanti explains. As a result of this precarity, Malta continues to ‘’face new challenges”, with no end in sight. “Effects can be felt on Malta’s imports and exports channels, given that the country’s trade flows with both the Ukraine and Russia are now disrupted. As we all know, Malta remains highly dependent on importation of foodstuffs and, in this case, imports of oats, maize starch and crude sunflower-seed oil were mostly imported from Ukraine,” Mr Tanti elaborates. However, taking a more positive standpoint, Mr Tanti notes that events such as the war in Ukraine cause major shifts towards “creating economies which are more resilient”. Mr Tanti also underscores the work being done by the Maltese Government to counteract the impact the conflict in Ukraine

is having on the Maltese economy by issuing financial schemes to support companies that are directly affected by the war. “These include companies that are heavily reliant on the importation of products whose supply was affected. This first initiative is a loan subsidy scheme by the Malta Development Bank, which was cleared by the European Commission under the Temporary Crisis Framework for State Aid and aims to provide temporary liquidity support to the companies affected. More initiatives are expected to be launched in the future,” he asserts. Looking beyond national economics, Mr Tanti also underscores the humanitarian crisis unfolding at Europe’s doorstep – “the millions of displaced Ukrainian nationals who have lost their homes and livelihoods as a result of the war” – and he stresses the need to continually provide support to whoever may need, for “although locally the number of Ukrainian refugees is not drastic, there is still the continual need to provide support.”

“Effects can be felt on Malta’s imports and exports channels given that the country’s trade flows with both the Ukraine and Russia are now disrupted.” MBB CEO, Joe Tanti

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Can we handle the spike?

A conflation of crises – from the COVID-19 pandemic to the Ukraine war – has, in recent times, left economies staggering to deal with a hefty financial fallout, with costs increasing for manufacturers, retailers and, ultimately, consumers. Rebecca Anastasi speaks to key business stakeholders to discuss the impact to local enterprises and what lies ahead.

EARLIER THIS YEAR, THE CENTRAL BANK OF MALTA, IN ITS ECONOMIC OUTLOOK 2021-2024, predicted that inflation on the island is expected to soar to 2.7 per cent in 2022 – a significant increase, particularly when compared to the rise in 2021 of 0.7 per cent. This data is echoed in the figures produced by the National Statistics Office in recent months: in March 2022, the industrial producer price index recorded an increase of 6.61 per cent when compared to the same month in 2021, with inflation registered in all the main industrial groupings. Moreover, the Retail Price Index (RPI, published in April 2022) as well as the Harmonised Index of Consumer Prices (HICP) bear testament to the trickle-down effect, with rises in production and importation costs being passed on to the consumer. Indeed, the

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“The ever-increasing transportation charges and the shortage of raw materials are two main factors which are pushing prices up across the board.” Dr Marthese Portelli, Malta Chamber Chief Executive Officer

annual rate of inflation in April was 5.67 per cent, compared to 4.43 per cent in March, with the largest increase registered in the food index, according to NSO figures published last month. “The ever-increasing transportation charges and the shortage of raw materials are two main factors which are pushing prices up across the board,” Dr Marthese Portelli, Chief Executive Officer of the Malta Chamber of Commerce, Enterprise and Industry asserts. She refers to an EY survey carried out in collaboration with the Malta Chamber, published in April, which sought to determine the situation for the local manufacturing industry, which “showed that 40 per cent of respondents experienced an increase of 25 per cent in their costs over the past recent months.” Moreover, while 70 per cent of respondents said they were not expecting a negative impact in terms of lower demands, “the same respondents were concerned about their competitiveness, in terms of their profitability and sustainability if costs continued to increase.”

substitutes (if at all possible), or import through other suppliers at higher prices, or even switch to a new product offering. However, whilst replacing an ingredient in a food item might be relatively easy, the same cannot be said for the replacement of material in industries that require a series of process testing and calibrations (such as the automotive industry),” she continues. Businesses can only absorb some of these costs, she says, since profit margins keep getting tighter, thus forcing companies to revise their prices and pass on these extra costs – to some degree – to their clients and consumers. Dr Portelli acknowledges the support being given – through the aforementioned subsidies on energy, and subsidies to grain product companies impacted by Russia’s invasion of Ukraine – but underscores that more can be done.

Malta is more vulnerable than most to the vicissitudes in prices related to logistics. “We are small, actually, we are tiny. We are a 316 km² island with approximately half a million inhabitants. Due to our size, our insularity and our peripherality, we cannot have freight trains; we cannot have door-to-door truck delivery; our airfreight options are very limited, and the frequency of scheduled freight services is constrained by our small volumes. The ultimate result is that Maltese importers and exporters have to cope with irregular and unreliable transport schedules, characterised by high importation and transport costs, as well as disproportionate local charges,” she explains. This situation is proving intractable for many of Malta’s businesses. “The food and manufacturing industries have been affected the most, with companies doing all they can to survive. Material shortage means that businesses only have three options – they can either replace materials or ingredients with other materials or

PHOTO BY DARYL CAUCHI

Another major concern is the way fuel and electricity prices have shot up across the EU in the wake of the war on Ukraine, she says. “This astronomic rise is reflected in an increased production cost of raw materials and also in transportation costs,” she continues, going on to say that while the subsidisation on energy prices, rolled out by Government, is a positive development, this does not mitigate shipping and importation costs and, indeed, “one cannot do away with the fact that Maltese businesses still have to import raw material from abroad.”

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However, “there is no clarity as to what will happen beyond that. What is clear is that international energy prices will not return to their pre-crisis levels in the foreseeable future. Some adjustment in food, commodity and transportation costs is expected in 2023 as inflationary pressure will inevitably dampen demand and suppliers will allocate additional resources to fill in lucrative market gaps. But until this happens, it will be a particularly tough time for manufacturers,” she concludes. Abigail Agius Mamo, Chief Executive Officer of the Malta Chamber of SMEs, agrees that, while the COVID-19 pandemic and the war in Ukraine can be seen as major reasons behind the current inflation, the “excessive increases in the prices of logistics, which started off as an effect of the crisis caused by COVID-19, has continued to spiral out of control.”

PHOTO BY ALAN CARVILLE

Indeed, “it was beyond what could be expected from the market adjusting to the situation” being also impacted by low supply and higher consumer demand. Moreover, she says, international shipping companies have seen opportunity in the crisis, and their profits have ballooned, now reaching billions of euro every year.

“Similar support schemes or ‘temporary state aid concessions’ should be rolled out to other industries which have been most adversely hit. Liquidity assisting instruments in the form of grants and subsidised loans could also help. Last but not least, one could also consider the establishment of a common purchasing facility to assist in the procurement of key imports from alternative sources,” she proposes. At EU level, more sensitivity to the logistical challenges faced by Maltese businesses is required, she says. “Under Article 2(7) of the EU’s General Block Exemption Regulations, Malta is acknowledged as a remote region. Yet, this has not been translated into tangible support for importers and exporters to mitigate the disadvantages arising from Malta’s peripheral geographical position coupled with its small and insular market. Maltese businesses should be on the same level playing field as their European counterparts and this requires understanding, acknowledging and mitigating Malta’s geographic reality,” Dr Portelli stresses. Looking ahead to the second half of 2022, Dr Portelli emphasises that Malta has been successful in containing inflation rates through Government support, which is set to continue till the end of the year.

“We also need to keep in mind that, in Malta, we’re not being hit with the full extent of global price increases since the Government is subsidising a number of products. If these subsidies had to be removed, we’d be feeling the impact more,” Ms Agius Mamo attests, adding – in agreement with Dr Portelli – that Malta is additionally exposed due to its geographic position, its size and insularity. In this light, it is clear that more extensive support plans are needed, she continues. “Businesses and industry cannot cope alone. There needs to be a Public-Private-Partnership (PPP) or some sort of incentive scheme because Malta is particularly vulnerable. For, during a time of crisis, as indeed, during the COVID-19 pandemic and now the war in Ukraine, some countries become protectionist and may forbid basic goods from leaving their countries. Therefore, it becomes costlier to acquire even the basic necessities. At the moment, the Malta Chamber of SMEs is liaising with businesses to help them look at alternative markets from which to source products. Unfortunately, everywhere has become expensive and it is not easy to find cheaper alternatives.”

“In Malta, we’re not being hit with the full extent of global price increases since the Government is subsidising a number of products.” Abigail Agius Mamo, Malta Chamber of SMEs Chief Executive Officer

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In her view, Government needs to lobby the European Union more effectively to allow Malta to use state aid rules “better”: “with regards to state aid, we’re very limited in how much we can help industry and we need to make a case for Malta, lobby for assistance programmes from the EU, and ensure parity between member states so that countries like Malta are not disproportionately affected due to their unique circumstances.” Moreover, she continues, the bloc needs to continue its efforts to be self-sufficient – “the EU is composed of countries that are dependent on other countries like Russia; it should distance itself from volatile markets and try to incentivise states to remove their dependency on singular sources.” The rest of this year might not see much change, she continues, for a lot depends on how the situation develops in Ukraine. “The war doesn’t look like it’s going to end any time soon; we don’t know how far our subsidies will take us, or how scarce some products will become. Some countries are already bulk buying and, here in Malta, we cannot compete with bigger economies. The war has destabilised everything and no solution will happen from one day to the next. However, things could stabilise in the short term. If they do, consumer confidence will be strengthened,” she concludes. Joe Farrugia, the Director-General of the Malta Employers Association, sounds a slightly more hopeful note, saying that “many forecasts point towards a decline in inflation in 2023 to more moderate levels. This is more pronounced in other countries [in other words, not Malta].” Here, on the island, “the rising costs of logistics has been a cause of concern over the past two years, partially due to global supply chain problems, combined with higher energy prices. Our insularity and exposure to energy prices have been major contributors to inflation in Malta.”

“A shorter-term cessation of hostilities, together with a COVID situation which is under control, may result in more stable prices during 2023.” Joe Farrugia, Malta Employers Association Director-General

Moreover, “rising interest rates may adversely impact mortgage payments, thus affecting numerous individuals and families. One of the major challenges of inflation will be to prevent a wage price spiral that may erode the competitiveness of many enterprises, and thus threaten jobs. However, this does not seem to be the case in Malta as many sectors face a shortage of labour. Yet, sudden increases in labour costs and energy could fuel a secondary wave of inflation as companies will attempt to pass such costs on to the consumer – both in consumer markets and B2B,” the Director-General says. Elaborating on what can be done to mitigate the impact of these dynamics, Mr Farrugia says that “a fiscal effort will be required to shield such groups from the full impact of inflation.” For instance, while COLA (Cost of Living Allowance) increases for 2023 will definitely be higher than experienced during the past decade, “Government should intervene to protect those who may not even be covered by this mechanism, or who may need additional protection, such as pensioners. Government should also step-up efforts to reduce bureaucratic burdens to businesses and to facilitate access to foreign labour supply to ease pressures in the labour market. Identity Malta will have a key role to play in this scenario,” he asserts. Looking ahead, the future looks very fluid, he adds, pointing to the continued impact COVID-19 is having in some parts of the globe, such as China, while Russia’s invasion of Ukraine will “become a major determinant of the degree of stability that will prevail in the coming years. A prolonged war will create chronic shortages and the high inflation may well extend into the coming three years. A shorter-term cessation of hostilities, together with a COVID situation which is under control, may result in more stable prices during 2023,” he says. Elaborating on the local situation, Mr Farrugia stresses that the major priority will be to safeguard competitiveness. “If prices go up globally, we will be affected by the global economic slowdown as is expected to happen in many economies. The IMF has, in fact, revised downwards its projections for global economic growth to 3.6 per cent, and to 1.1 per cent in the European Union. And a deterioration in competitiveness will result in more negative consequences for Malta in the longer term,” he concludes.

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Finance

Moneybase: The latest feather in Calamatta Cuschieri’s cap As Calamatta Cuschieri launches Malta’s first digital payments platform, co-CEO at Calamatta Cuschieri and Founder of Moneybase Alan Cuschieri talks to Sarah Muscat Azzopardi about how this milestone will change the face of the firm, as well as the Maltese financial services industry.

CALAMATTA CUSCHIERI, MALTA’S LARGEST FINANCIAL SERVICES FIRM, has always been a trailblazer. Set up in 1971 by Alfred Calamatta, it has been a consistent pioneer in the industry, hitting milestone after milestone and enjoying tremendous organic growth. Now, the latest feather in its cap has just been unveiled: Moneybase, Malta’s first digital payments platform. The result of a €10 million investment, the platform cements CC Group’s reputation as a leading FinTech innovator, and offers a multitude of financial services, ranging from cards to SEPA payments and everything in between.

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“The core of what we do remains giving honest advice on what we believe in. It is only through taking care of our clients and giving a good service that we were able to grow.”

But, before getting into what it does, Alan Cuschieri, co-CEO at Calamatta Cuschieri and Founder of Moneybase, charts the path that led to this point. “Calamatta Cuschieri was actually founded way before the Stock Exchange was set up in Malta in 1990,” he says, giving an indication into just how pioneering its founder was. “We were originally a stockbroking firm – which is still our core business today – giving advice to clients when it came to investing in bonds, funds and shares. There’s a lot of heritage there.” As time went by, the company expanded, and Alan’s father, Alex Cuschieri, joined Mr Calamatta as a partner. “The business grew very organically, through customer satisfaction and word of mouth,” says Alan, who joined the company in 2005, after finishing his studies in the UK. “My focus was on modernising the business, helping to set up the branch network, and working on the IT side of things,” he explains, adding that when he joined, the company was made up of 20 people, and today employs about 200. As co-CEO, Alan led the team who built awardwinning proprietary trading platform CC Trader, which he describes as the start of the company’s FinTech journey. “We started developing our software in 2004, and extended it online in 2011,” he recalls, listing more milestones for Calamatta Cuschieri along the way, including becoming the first company in Malta to get the Category 3 licence, as well as the only company to offer the Facebook IPO. “CC Trader also did well, winning several awards and becoming a household name. We carried on investing every year, and eventually also launched the mobile version,” Alan continues, adding that in the meantime, they also diversified the business,

introducing fund administration, wealth management, life insurance and pensions services, so as to offer clients the full spectrum of financial planning. Throughout every stage, however, the company always stuck to its roots. “The core of what we do remains giving honest advice on what we believe in. It is only through taking care of our clients and giving a good service that we were able to grow,” Alan says. Then, in 2015, Alan began thinking about the possibilities of expanding on CC Trader, ruminating over the fact that, while clients could make money through it, it didn’t give them the ability to make payments. “It became clear to me that we could do much more with it. We had matured on the online investing side of things, and

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“It became clear to me that we could do much more with it. We had matured on the online investing side of things, and it was time to take the next step.” it was time to take the next step,” he says, once again drawing on Calamatta Cuschieri’s pioneering spirit. “After obtaining the licence in 2018, we started building an entire core system from scratch.”

all from within the app. Meanwhile, CC Trader has evolved into Moneybase Invest. It will continue to offer the same great investment service while forming part of the new Moneybase ecosystem.

The project became bigger each year, he reveals, and so did the team behind it. “We wanted to achieve a high-level product right from the outset. By the end of it, we had about 50 people working on it,” he says, and now that the cat is finally out of the bag, the hard work and determination is already paying off.

“We also offer ISO-certified customer support seven days a week via phone and digital means, so while you can do everything online, if you need us, we’re always there,” Alan adds.

“The new Moneybase app makes it easy for people to manage their finances. Maltese and European residents can open an account within minutes, send and receive payments in 34 countries using their own IBAN, get a physical or virtual Mastercard, make instant payments to contacts, as well as save when spending all over the world thanks to competitive FX rates,” Alan affirms. It’s also easy to use, with all of its processes having been designed to be customer-oriented and fully digital, without customers having to visit branches or fill in paperwork. “Our tagline is ‘Make money simple’, and this is really what we set out to do. While the platform is powerful, the interface makes it accessible and simple to use,” he maintains, adding that the app gives clients full control of their cards, allowing them to view their card PIN and manage many other security settings,

Reflecting on what this means for the local FinTech landscape, the co-CEO and Moneybase Founder believes it’s the right product at the right time. “It’s something the local financial services industry really needs, and it comes at a perfect time, following a challenging couple of years. I believe it’s a positive step for the Maltese financial services industry – apart from the benefits of the product itself, it also shows that we have a talented workforce that is not only capable of pulling off something like this, but pulling it off at the highest level. It’s something we should be proud of,” he asserts. For the local community, the launch of Malta’s first digital payments platform means that they can now enjoy the perks of using a digital app to manage their finances while having the peace of mind of being served locally, as well as enjoying all the benefits that come with a high standard of customer service, seven days a week.

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“[Moneybase] is something the local financial services industry really needs, and it comes at a perfect time, following a challenging couple of years.”

Looking ahead, Alan feels that the future is bright for FinTech in Malta. “We’ve shown that we’re capable, and while there are certainly challenges we need to overcome, we are recognising that FinTech is the way to go. There’s a lot of opportunity and we can attract a lot more talent by creating an environment that is attractive for companies to invest in. I am confident that within the next five years, we will see a substantial acceleration in relation to FinTech,” he maintains. As for his plans for Moneybase in the months and years ahead, the Founder reveals that, in the short term, the focus will be on collecting customer feedback and polishing the service, but he’s already got his eye on new avenues to explore. “We are also one of the first, if not the first to get a PISP licence in Malta,” he continues, explaining that new PSD2 regulations will allow them to connect to any bank so that eventually, customers can manage their balances held at different banks directly from the Moneybase app. “It’s difficult to tell when we will be able to offer this, as software takes time and money to develop, but it’s where we want to go, and eventually, we will also explore offering credit,” he smiles, brimming with ideas for the possibilities ahead. And until then, the team will be doing what they’ve always done – listening to their customers’ needs and working hard to meet and surpass expectations.

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Communications

Collaborate from a distance: What makes a good unified communications tool? Remote working is here to stay, so what features are most important in a communications tool? And how can your employees keep collaborating from a distance?

THE WAY WE COMMUNICATE WITH OUR COLLEAGUES HAS CHANGED. The prevalence of remote and hybrid working means it’s no longer as simple as walking over to a colleague’s desk to talk. Instead, we need to use digital communications tools to collaborate from a distance. In this article we will be taking a deeper dive into the features to look out for, to ensure the communications tool you invest in is the right one for your business. One unified solution for multiple communications channels First, a communications solution needs to cover the essentials – text chat, phone calls, and video calls. Text chat for those quick exchanges and questions with colleagues,

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Communications

phone calls for more in-depth conversations, and video calls for internal and external meetings. When all these communication methods are combined into a single, unified solution, you get simplicity and security. With one system that covers all your communication needs, you only have one system to secure and manage – and one support number to call if you need help with anything. Communications that work for everyone in your business After the basics of what a communications tool must do, there are a number of features that can add even more ease and value to your employees’ working lives. Tools that are compatible with a bring your own device approach (BYOD) will cut down on upfront equipment costs, as they work with employees’ current computers, tablets, and smartphones. However, BYOD solutions that use an individual’s personal mobile number pose a risk to your employees’ privacy. To mitigate this, we’ve created a solution that attaches your office number to your personal device – allowing you to use a separate office number alongside a BYOD approach. GO CloudTalk also allows you to set policies for your communications. You can set a single office number that all or selected employees can answer, alongside individual numbers for each employee. It even comes with full answerphone capabilities.

Work-life balance and employee well-being are vital to successful remote and hybrid working. So, with GO CloudTalk, you can set office hours, meaning employees won’t be disturbed outside of working hours. For example, if your employees work nine to five, the application will prompt callers to leave a message. File sharing for maximised collaboration Communication is vital to collaboration, but that’s only one half of what you need. You can have good, open channels of communication, but if colleagues are looking at different versions of the same file, it can falter. That’s why we’ve built file sharing into our communications tool: because when everything is in one place, it increases visibility and accessibility. And it ensures everyone is looking at the same file, so colleagues can have more meaningful discussions about the work they are doing. A flexible, unified communications tool with GO Business GO is a telecommunications business – so we know how to adapt solutions to suit remote and hybrid working. We have experts ready to help you get set up, and to support you as you use GO CloudTalk. GO CloudTalk has the flexibility to grow with your business, so you can support the employees you have today, with the ability to add more users as your business grows. Learn more about GO CloudTalk at www.go.com.mt/business/cloudtalk

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Motoring

Supercharging the future: The joys of intuitive electric vehicles As BMW launch their new range of electric models, Dean Muscat speaks with James Grech, the BMW representative at Muscats Motors, about how far EVs have come over the last decade, and the joys of driving electric.

LAUNCHED IN 2013, THE I3 WAS GERMAN AUTOMOTIVE POWERHOUSE BMW’S FLAGSHIP ELECTRIC MODEL, and a real gamechanger in the EV scene. Its unusual but radical carbon-fibre build and design made it instantly stand out from the crowd, helping it to steadily become one of the most popular EV models on the market, with over 220,000 units sold worldwide. More importantly, the i3 paved the way for the future of EVs. Now, close to 10 years after it first made a splash, the i3 is being discontinued to make way for a new range of BMW EV models. “When BMW introduced the i3, it was designed to be a proof of concept. Everything from its clean sheet aesthetic, which wasn’t based on existing BMW models of the time, to the use of material and the quality of the build were designed to make it the perfect electric car. In recent years, BMW have taken all the lessons learned with the i3

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“In recent years, BMW have taken all the lessons learned with the i3 and incorporated them into their new ‘i’ range models.”

and incorporated them into their new ‘i’ range models,” explains James Grech. As with any modern technology, EVs have come a long way in the last decade, particularly with regards to battery capacity and range.

from the expensive solution of carbon fibre and shifting their focus to aerodynamics within design.

“EV technology now has come to a point of maturity. In fact, the i3 is being phased out because BMW is confident enough with the technology to introduce it into the mainstream range. So now, there are electric variants of each of the core BMW car models, including the i4, iX M60, and i7, among others,” James adds.

Despite the rise in popularity of EVs, they continue to be a somewhat misunderstood technology. Most people are aware of their eco-friendly qualities but are perhaps quick to dismiss them as being low-powered cars that are not as fun to drive. However, this couldn’t be further from the truth. There are, in fact, tons of unique and innovative features that make the EV a truly enticing proposition and a worthy alternative to its fuel engine counterparts.

Another important lesson learned from the i3 was to do with its lightweight but highly expensive carbon fibre body. When designing the i3, the theory was that a car’s typical heavy weight would work against the battery capacity and range. So, to ensure that the car was as light as possible, BMW engineers opted for a carbon fibre build. However, it turns out that EVs are so powerful that weight is not an issue. Hence the new BMW electric models are moving away

“Fundamentally, electric cars require no maintenance. This a key point and a major benefit to drivers. That’s because they have no engine components, no gear box or anything of the sort. All you have is an electric motor and the battery. Today, EV batteries have improved drastically and typically come with an eightyear warranty, which is pretty much an industry standard. In fact, one of the key lessons BMW gleaned from the i3 was that after 10 years of

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use, the i3’s battery retained around 80 per cent of its original capacity. So, this is a big plus and gives owners peace of mind that the technology is durable and won’t have to be changed every few years.” Another common concern is the range of an EV. How often will drivers need to charge their cars, and is there ever a danger that the battery will run out midtrip, leaving drivers stranded? “In a small country like Malta, range is not an issue at all,” James ascertains. “Typically, most drivers who are commuting from home to work every day will not need to charge their car more than once every 20 days or so. We don’t even recommend keeping the car fully charged at 100 per cent. For daily use, we recommend a charge of around 60 to 80 per cent. Then, should the driver be planning a road trip to Sicily or Italy, for example, that would be an ideal time to fill the battery up to max.” James is also keen to point out that while EVs are an exciting automotive option, they are still not for everyone. “At Muscats Motors, we make it a policy to be honest with our clients, as there are still some barriers that will make an EV unsuitable for certain drivers. A

key factor in this regard is if owners don’t have easy access to an electrical socket to charge their car. The public charging infrastructure in Malta is improving, but it’s still not sufficient for all EV users. So, if drivers happen to live or work near a charging station, that’s great. But if they don’t have convenient access to a charging point, either through a socket in their garage or through a public charging point, then we’d recommend they seriously consider whether an EV is the right option for them,” he explains. There’s also the question of perception. Since EVs first entered the car space, hardcore petrolheads have mostly remained reluctant to climb on board the electric revolution. Self-styled mouthpiece for motorists and former Top Gear host Jeremy Clarkson even declared he’d “never” own an EV because he wants a car with a “nice sound.” Has there been a shift among more ‘serious’ drivers who are beginning to embrace the technology? “From my experience with clients, it’s a case of if they try it, they’ll love it. That’s because driving an EV is a really joyful, intuitive experience and they are actually more powerful than most petrol cars. The BMW models also offer a very simplified way of driving. So basically, you never use the brake pedal. As soon as you lift your foot off the accelerator the car begins to

“Fundamentally, electric cars require no maintenance. This a key point and a major benefit to drivers.”

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Motoring

“Driving an EV is a really joyful, intuitive experience and they are actually more powerful than most petrol cars.”

decelerate. It’s an interesting approach and quickly becomes second nature. That said, I feel that pure petrolheads will always struggle with an EV to be their special car. So, the trend seems to be that EVs, with their economical attributes and ease of driving, will become your everyday commute type of car, while traditional sports cars will remain that special car you enjoy on the weekend,” he says.

the car. The car also has an impressive level of understanding. It can recognise who is giving commands depending on whether they’re in the driver or passenger’s seat, and make changes accordingly.”

Another reason why EVs are increasingly becoming ideal for everyday driving is that they are effectively super powerful laptops on wheels. The new BMW ‘i’ models feature a state-of-the-art iDrive 8 infotainment system. Built around an impressive 14.9-inch, 200 ppi, ultra-high-resolution touchscreen, the iD8 seamlessly integrates with the driver’s lifestyle, learning driver habits and enabling a level of customisation that is unmatched.

All in all, the EV revolution seems to be truly on its way with the new BMW ‘i’ range. For the first time, electric models are becoming more intuitive and more practical for everyday use. Also, thanks to the Government’s current financial incentive, which grants drivers up to €11,000 to purchase an electric vehicle, there’s good reason to go electric sooner rather than later.

“It’s very intuitive. So, basically the car has been decluttered in terms of buttons and dials, and now everything can be controlled through speech recognition and the iD8 app on your phone. This gives you the ability to turn on the air-con in the car while you’re still indoors, for example, so you can enjoy cool interiors before you even set foot in

Moreover, this new infotainment system can be updated over the air, ensuring the system won’t become obsolete any time soon.

“For anyone interested in purchasing an EV, we invite you to come to Muscats Motors where we’ll be happy to walk you through the best BMW electric models suited to your lifestyle and also show you the many unique features that are set to make EVs the car of the future,” James concludes.

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Interview

Malta’s tourism recovery and the drive for quality

PHOTOS BY INIGO TAYLOR

As the tourism and hospitality sector gears up for what is expected to be a blockbuster postpandemic summer, Malta Hotels and Restaurants Association President Tony Zahra speaks to Robert Louis Fenech about the factors that will determine its success in the coming years.

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THE SIGHT OF THRONGS OF TOURISTS WANDERING THROUGH VALLETTA’S REPUBLIC STREET was once the norm. Now, after two years of travel restrictions imposed to limit the spread of COVID-19, it is safe to say that those whose livelihoods depend on these tourist arrivals are taking nothing for granted. With 2021’s stuttering recovery giving way to the full removal of all restrictions in May 2022, businesses in the tourism sector have much to look forward to. And, thanks to Government’s decision to support employment in affected sectors – hospitality being one of the main beneficiaries – local businesses are in a better position to hit the ground running than many feared. Although the threat posed by COVID-19 remains present, world-class efforts to inoculate Malta’s population have defanged the virus, allowing the industry to turn its attention to serving present needs and predicting future trends in its attempt to stay ahead of the curve. For Malta Hotels and Restaurants Association President Tony Zahra, the future looks bright. “Malta’s connectivity to source markets is improving. We have not yet reached pre-pandemic levels of airline capacity and flight availability, with

around 76 per cent of 2019’s seat capacity, but let’s be honest – we are already a long way there,” he says, while highlighting important distinctions in the mix, like far better connections to Poland and France but fewer seats on UK routes. Although COVID-19 has seemingly been consigned to history, other ‘known unknowns’ may yet dampen the longedfor revitalisation of tourism. “I think we could see a full recovery by next year,” says Mr Zahra. “But that is contingent on factors beyond our control. How is the war in Ukraine going to impact the market? What will people’s disposable income be like with the inflation working itself through the world? A family struggling to keep the heating on during the winter will find it difficult to go on holiday in the summer. We are looking at quite a few known unknowns, making for a very fluid situation. This is not the pre-pandemic period where all economies were expanding.” Meanwhile, locally, business realities have also changed in important ways, chief among which is the scarcity of workers willing to enter an industry that has seen a fundamental shift in its perceived risk profile. A once-thriving ecosystem full of opportunity became a sector gripped by paralysis and uncertainty over the two years of the pandemic, with the

“We have not yet reached pre-pandemic levels of airline capacity and flight availability, with around 76 per cent of 2019’s seat capacity, but we are already a long way there.”

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the employment of staff from outside the European Union, so-called Third Country Nationals (TCNs).”

“We must understand that we are not exceptions in the world of economics. This is a global phenomenon – the price of accommodation in many countries is going up to reflect the need to pay people more to come and work in the industry.”

consequence that employees left in droves in search of more secure alternatives. Mr Zahra posits that the attraction of a regular work schedule was one trigger for those whose career change was intended to be temporary to opt to make it permanent: “It’s nice to be able to work during the week and take weekends off like everybody else.” Another is fear about what may come: “People who left worry and ask, ‘When is the next pandemic?’ It will be difficult to entice them to come back without overcoming this fear factor.” And with tourist numbers steadily increasing, it is not just one hotel looking for labour, but an entire industry. So, will Malta go back to the way it was? To a place where a guest can come, year after year, to the same hotel and strike up friendships with staff whose presence is as dependable as the weather? “I don’t think so,” is Mr Zahra’s unflinching answer. “One has to readjust to the realities of life. During the pandemic, there was no travel, no business, and lots of empty rooms. Establishments went into survival mode, being forced to shed staff or reduce salaries. Now, the demand for workers is far higher than the supply of labour in the country, accelerating

This comes at a cost, both financial – recruiting workers from the other side of the world does not come cheap – and in the long delay between putting out a call and new team members’ first day on the job, with the deluge of such applications overwhelming the visa approval system. Perhaps even more importantly, such staff often comes without prior hospitality experience, further increasing HR costs due to the training required. This churn is something employers need to deal with, Mr Zahra says, starting with a re-evaluation of the cost of labour. “We must understand that we are not exceptions in the world of economics. This is a global phenomenon – the price of accommodation in many countries is going up to reflect the need to pay people more to come and work in the industry. You need to compete for the labour that is out there and you need to start by offering a package which is very competitive to what other industries are offering. People will not work out of love. They will work because the conditions in a sector are conducive to a good quality of life.” The mention of quality prompts a shift in the conversation to the desire, often expressed in political strategy documents on tourism, to boost Malta’s profile as a quality destination. Mr Zahra is sceptical: “There is nothing to indicate we are going in that direction.” Surely, I ask, the recognition of local restaurants by the Michelin guide and the launch of new luxury establishments serve as steps in the right direction? The industry stalwart is not convinced. “Every strategy that I have read,” he says, “can be read in any way you want to read it. They all say they want Malta to attract more upmarket tourism, but they also aim for things that run counter to that objective. It is time for Government to take a global view of the economy and look at what the country’s carrying capacity is” – a task currently being undertaken by the MHRA in the absence of Government initiative. He continues: “You can’t have a quality product and large numbers. They don’t go together. Now, quality people will not

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come to Malta if there isn’t quality all around. So, we need to have a plan to upgrade the product of Malta, and this plan needs to be all-encompassing.” A narrow focus on improvement in one area alone, then, is not enough, and Mr Zahra scoffs at the idea that high-spending individuals will come to Malta just because authorities say they want them to, while questioning the logic behind the preparation of ‘strategy’ documents that offer no framework for entrepreneurs looking for direction. Asked for his view on how Malta can improve its tourism product, he says the MHRA has been consistent in its message that quality needs to be imbued into every level of activity. “Quality can exist at a restaurant serving a reasonably inexpensive menu, just as it is found at a Michelin-star restaurant,” he says. “Quality comes from the service and the product on offer.” He recalls a recent morning business flight on the national carrier, on which breakfast included a sausage from a tin. “Where is the quality?” he asks. “If you can’t afford to

“It is time for Government to take a global view of the economy and look at what the country’s carrying capacity is.”

have a proper meal, then don’t have it. A nice cup of coffee with a good biscuit is enough.” Other targets for his ire include the cacophony of enclosed canopies that have become a feature of Malta’s streets in tourist areas, and the spread of semi-permanent caravan neighbourhoods that are springing up all over the islands. He argues that policy is playing catch-up to developing realities, with the result that people do whatever they want, creating a hotchpotch environment. Mr Zahra commends Minister for Tourism Clayton Bartolo’s recent reflection that Malta’s tourism recovery is everyone’s responsibility, and reiterates his exhortation to all stakeholders to start from the basics, by offering good service with a smile. That can be easy for people at the top to say, but client-facing staff often have more pressing concerns than the national reputation. How, then, can owners ensure this message percolates through the management ranks down to every receptionist and waiter? “It starts from those same owners,” he replies. “Quality starts from the top. Has the owner ever served a cup of coffee? Have they gone around the tables and seen that their clients are well-served? Or have they simply invested money in the place, taken a devil may care attitude, and treated the business like their own personal ATM?” Mr Zahra argues that quality starts with direction, and that holds true on both a national and enterprise level. “We must make sure that those giving directions are well trained and know what the direction is. Only then can we offer a quality service.” The authorities, he says, can do their bit by simply getting people to follow the law, and calls for a change in the attitude taken towards rule-breakers. “Unfortunately, we cannot speak about enforcement and Malta in the same breath – but that is where our drive for quality must begin.” Mr Zahra concludes by returning to his call for a holistic look at the country’s economic development and the role tourism has to play: “Malta is tiny. What happens in one part of the island is felt everywhere else. We need to take these things seriously. You cannot neglect one piece of the whole. It’s the whole that makes us special.”

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Investment

Serving the ever-shifting market Exceeding expectations has been a hallmark of the FXDD brand since its inception, and Triton Capital Markets Ltd’s latest offering is no different. Here, Executive Director Nicola Mallia tells Robert Louis Fenech all about it while discussing the pandemic’s impact on the investment landscape and the company’s big move to new offices.

PHOTOS BY INIGO TAYLOR

WHEN TALKING ABOUT FINANCIAL TRADING, one does not typically reach for sporting analogies. The reason is obvious: one involves putting everything on the line, but typically not money. The other involves putting money on the line, but typically nothing else. There is certainly one aspect, however, in which the metaphor holds, and that is in the relationship between man and machine. Trading can be said to resemble sports like Formula 1, or yacht racing, far more than it does football, for example. Whereas success in football typically depends on teamwork, tactical awareness, and a good dose of individual brilliance, with players having nothing but their bodies and minds with them on the field, Formula 1, for example, involves a partnership between the driver’s skills, the racing team’s support and the vehicle itself, with an engine developed through the combined efforts of dozens if not

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hundreds of engineers painstakingly working to produce the ultimate racing tool. The latter more accurately captures the centrality of platforms to any trading strategy, with the realm of the possible growing along with technological developments. Triton Capital Markets Ltd, operators of the FXDD brand, which is active on a global level with offices in New York as well as Malta, knows that a trader’s tools are like their second skin, and therefore need to be efficient, flexible and robust. Consequently, this is what they are looking to provide to the local and international investing community. FXDD’s MetaTrader5 Multi-Asset platform grants traders access to a broad range of asset classes, including stocks, commodities, indices, Contracts-of-Difference (CFDs), futures, and of course, currency, retaining the forexoptimised features and tools users of previous iterations of the software have come to know and love. With zero commission, competitive spreads, and leverage of up to 30x for retail accounts and 100x for professional accounts, MetaTrader5 (MT5) is the platform of choice for professional and independent traders alike, who can also make use of the software’s best-in-class analytics and algorithmic trading solutions.

“For experienced traders, the benefits of using MT5 are quickly evident,” explains Executive Director Nicola Mallia. “The platform has more pending order types through the inclusion of stop limit orders and allows for the integration of market-moving economic events which can be displayed directly on the chart. It also includes enhanced trading programme scripting and improved charting tools, such as expanded timeframes and technical indicators, as well as the possibility of ‘netting’, where multiple financial obligations can be aggregated to arrive at a net amount. These functionalities are especially useful for professional traders and those active in markets like CFDs and futures.” Additionally, Dr Mallia points to the large increase in equities clients now have access to, with over 3,000 stocks available on a fractional share basis on the platform, and predicts that self-directed investors will find this most attractive. MT5 also offers the option of a demo account for users to get acclimatised to all the features before putting their money on the line. The latest offering continues to cement FXDD’s reputation as a technology-driven, customer-centred company combining the best and latest investment technology with comprehensive user support.

“For experienced traders, the benefits of using MT5 are quickly evident.”

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Investment

“The two elements – being at the forefront of new technologies and great customer care – go hand-inhand,” says Dr Mallia. “Every new development requires some getting used to, especially if you want to get the most out of it, so we are always ready to provide customers with the proper guidance to make sure they are able to take advantage of the new opportunities available.” This single-minded focus has served FXDD well, growing it, over the last 20 years, into a leading broker. However, could Malta’s inclusion in the Financial Action Task Force’s list of jurisdictions subject to enhanced monitoring dampen this growth? Having joined FXDD six years ago as Head of Legal and Compliance, Dr Mallia can speak about the effects from first-hand experience. “Thankfully, the company has always prided itself on taking a stringent approach to compliance,” she says. “One of our value propositions to clients is that we are an institution licensed and monitored by a reputable regulatory authority, the Malta Financial Services Authority, in a European Union member state. So, we have long been placing a lot of emphasis on ensuring that everything we do is fully in line with all applicable legislation by having a skilled and dedicated compliance team that receives regular training to keep abreast of the latest developments. Our clients can therefore rest assured that their money is safe with us.” Nonetheless, greylisting did have an impact, especially insofar as foreign clients are concerned, with withdrawals subject to greater scrutiny by their banks. “There’s no question about it,” Dr Mallia says. “Greylisting did lessen Malta’s attractiveness as a financial services jurisdiction. So far, the damage is limited and reversible. What matters now is getting off the grey list as soon as possible.” Triton Capital Markets is currently undergoing big changes as it prepares for a move away from its longtime premises on the Valletta Waterfront and into Trident

“Greylisting did lessen Malta’s attractiveness as a financial services jurisdiction. So far, the damage is limited and reversible. What matters now is getting off the grey list as soon as possible.”

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Investment

“Our new offices in Trident Park are better suited to our work, and are a more natural fit when considering our standing in the local business community.”

Park in the Central Business District in Mriehel. Asked what led to this decision, Dr Mallia explains that although the Waterfront address reflected the company’s professionalism and prestige, the area is nonetheless a touristic one.

employees to whom amenities like food outlets and a gym are particularly attractive. The offices are also being finished for commercial use to a very high standard, which is a must for a firm like ours.”

“Our new offices in Trident Park are better suited to our work, and are a more natural fit when considering our standing in the local business community,” she says. “The development’s sustainability credentials were also a big attraction, as was its status as a unique heritage site.”

Turning back to trading, the phenomenon of individuals taking the plunge and managing their own investments through platforms like MT5 is brought up.

The building, inaugurated in 1950 as a standardbearer for Malta’s post-war industrialisation, previously served as the Farsons brewery, home to the iconic Maltese soft drink, Kinnie, and the ubiquitous, award-winning Cisk Lager. The Art Deco building is being lovingly adapted by Ritchie Studio, a world-renowned firm recognised for its refined, thoughtful and original approach to architecture, and TBA Periti, a leading local firm whose work includes, among others, the landmark Life Sciences Park, restoration of the Mdina Bastions and the Grandmasters’ Crypt in St John’s Co-Cathedral, and Ta’ Betta Wine Estates (featured in Business Now’s Winter 2021 Edition under the heading of Malta’s Most Beautiful Businesses). But the move is not simply a question of aesthetic. It is also one of function. “The full-service concept was a big draw,” says Dr Mallia. “On-site parking and the availability of a child care centre make a big difference. We also have many foreign

“Although this was already happening preCOVID, the pandemic forced people indoors and effectively eliminated some of the biggest leisure expenses, with restrictions on travel and restaurants meaning that people were able to save a lot more than they normally could. Meanwhile, the shift to remote work and Government support to maintain employment levels allowed incomes to remain relatively stable. This all led to a large rise in savings, leading many to look for an outlet – and many found it in investing, much of it selfdirected,” explains Dr Mallia. Although the ever-decreasing barriers to investing present enticing opportunities, Dr Mallia warns against taking unnecessary risks, recalling, in the context of the stock market plunges, that oft-repeated and all too frequently ignored mantra of successful investing: “Never risk more than you can afford to lose.”

Triton Capital Markets Ltd is licensed to provide investment services by the Malta Financial Services Authority.

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Business

VistaJet flies high with Epic for Business

THE PRIVATE AVIATION BUSINESS IS BOOMING. 2021 was another record-breaking year for the industry, with manufacturers racing to keep up with the demand for private jets. As the industry has grown, so too has VistaJet, the world’s first and only global private aviation company, with operational headquarters at SkyParks in Luqa. VistaJet’s global team of over 1,200 aviation experts operates and provides clients access to a fleet of over 80 branded private jets – and over 350 through its group company Vista – and Epic’s digital services support connectivity around the world. Selecting a business solutions partner is more than just choosing a service provider. That is why Epic adopts a partner approach with its business clients and blueprints solutions and agreements that mould around the specific needs of the client’s exigencies, thereby becoming invested in supporting them along their growth and across their industry environments.

It also ensures an unparalleled quality of customer care, through which it is able to foster a comfortable and constructive working relationship. Epic provides VistaJet with four main services – mobile data and voice connectivity, fixed telephony, premium bandwidth and international leased circuits. The nature of VistaJet’s business means it must also have a workforce that is decentralised across the globe, but that must remain connected 24/7. Epic’s strong global footprint coupled with its attractive Traveller Programme allows VistaJet’s global team to communicate clearly no matter where in the world they are located, empowering the client’s management to retain full control and easy monitoring of their expenditure. Epic for Business’ Premium Internet Bandwidth and International Private Leased Circuits are also key to VistaJet’s operations, allowing them to run the multiple platforms and data sharing systems seamlessly and with

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Nick van der Meer, Chief Operating Officer at VistaJet

impenetrable security, just as is required of a global airline; and this despite them physically being thousands of kilometres apart.

Above all, Epic for Business’ Premium services guarantee the stable and secure connection VistaJet needs to provide its clients with the efficiency and reliability it promises.

This has allowed VistaJet to build a fast and secure network. With an average of 100 flights taking off and landing each day, Epic for Business’ Premium services support VistaJet’s operations, helping to coordinate the movement of hundreds of crew members and customers, in real time.

Epic’s broad range of services and position in the market make it a peerless service provider for any business operating on an international level. Epic is a global player that forms part of a multinational group and has the right agreements in place, both locally and overseas, that are paramount to an international business like VistaJet.

VistaJet has played a key role in making private aviation more accessible by giving its clients access to a global fleet of private jets without any of the responsibilities of owning an aircraft.

Knowing with certainty and having the peace of mind that its global connectivity is supported by Epic, allows VistaJet to focus on its core KPI’s smooth operations, steady growth and, of course, epic client journeys!

The company has flown passengers to over 1,900 airports in 96 per cent of the world’s countries, including some of the most difficult to reach destinations, saving thousands of hours that would have otherwise been wasted in airports and train stations in the process.

Consequently, Epic has proven to be a reliable and dependable service provider that shares VistaJet’s vision and is capable of supporting its growth through a constructive business partner approach, today and in the future.

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Innovation

Providing a holistic assistive package to stakeholders in Malta’s technology sphere Despite only being established three years ago, the Malta Digital Innovation Authority has hit the ground running, doing much to aid and improve the island’s fast-growing technological landscape. Here, Chief Technologist Efrem Borg describes what’s been on the Authority’s agenda with Sarah Muscat Azzopardi.

SINCE STARTING OFF HIS CAREER AS AN APPRENTICE within the Malta Governmental IT Agency (then MITTS) at the age of 18, Efrem Borg has never looked back. Within that span of time, he is proud to have been entrusted with managing national IT infrastructural projects of pivotal importance to the country, and also successfully managed the IT aspects of the Malta Presidency of the Council of the EU in 2017, enabling Malta to seamlessly host a multitude of high-level meetings in various locations, within and beyond our shores. Thereafter, he was charged with the transformation of the Maltese Government’s digital security by leading the Information Security and Governance department within MITA, with a clear mandate of safeguarding digital assets in preserving confidentiality integrity and availability of the data pertaining to the Government.

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Innovation

PHOTOS BY INIGO TAYLOR

“The intent of the Innovation Hub is to have a one-stop shop whereby anyone with a technological concept can approach the Authority for holistic assistance in developing the solution into one that can be deployed in the industry.”

Today, his role is of Chief Technologist within the Malta Digital Innovation Authority, which he describes as “primarily focused on encouraging and facilitating the deployment of secure and robust innovative technologies through various schemes by a number of stakeholders, ranging from researchers, start-ups, national pilot projects and the industry.” Indeed, the scope of the Malta Digital Innovation Authority is that of promoting governmental policies that promote Malta as the centre for excellence for technological innovation, while setting and enforcing standards that ensure compliance with any other international obligations. Highlighting some of the major milestones in relation to the Authority, Ing. Borg affirms that, at its inception, three years ago, the primary focus was to come up with a regulation intended to certify Distributed Ledger Technologies, such as solutions based on blockchain and smart contracts. “Malta at that time, in line with worldwide technological trends, was innovative in coming up with such a framework enabling a multitude of parties to further bolster the trust such technology intended to bring about,” he maintains, adding that since then,

MDIA has recognised that such trust could also be beneficial to several other emerging technologies as well as traditional technologies. Because of this, the Authority has embarked on a challenging project called TAAF (Technology Assurance Assessment Framework), which, he explains, is intended to provide any owner of a technological arrangement with a tailor-made assessment based on the risk appetite of the technology, the technology composition and the technological domain where assurance is really required. “A lot of work has been executed in this regard and, together with our internationally selected partners, the Authority will be in a position to launch this work in the latter months of this year,” he reveals. Another important task the Authority is entrusted with is the governance of the implementation aspects of the national AI Strategy, which involves the participation of stakeholders from the public sector, the private sector and investment/start-up/research sectors. “The first objective of this national strategy, recently launched by Economy Minister Silvio Schembri, was to reach an agreement with six key national stakeholders in the domains of Transport, Education, Health, Tourism, Energy and Customer Care, for the introduction of augmented digital functionality using Artificial Intelligence as the main technology,” the Chief Technologist reveals, affirming that such pilot projects are of the magnitude of €4.1 million, and are intended to instil technological trust within the general public of the use of such technologies, as well as serving as a learning experience for other similar projects within the public sector and beyond. Pointing to another key initiative derived from the national AI Strategy, Ing. Borg references the Digital Innovation Hub. The Authority, he explains, is currently concluding the process of securing EU funds required for the fruition of such a project. “The intent of the Innovation Hub is to have a one-stop shop whereby

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anyone with a technological concept can approach the Authority for holistic assistance in developing the solution into one that can be deployed in the industry. The concept owner shall be provided with physical space, the availability of physical and cloud computing capabilities, access to recognised international technological consultancy, guidance and financial support on the business development front, and access to regulatory utilities such as the MDIA Sandbox, to ensure alignment with national and international technological regulations,” he says. Expanding on the Technological Assurance Sandbox (MDIA-TAS), Ing. Borg says that Version 1 of the Sandbox was published in June 2021, and Version 2 has already been published and will come into effect from June 2022. In essence, MDIA-TAS is intended to provide technological solution owners who are currently in the development phase with a flexible environment which enables them to progress throughout their development in line with industry standards and best practices. “This scheme leverages on the concept that alignment at earlier stages of the development is cheaper than realignment at later stages of development of the solution. This concept is particularly valid in view of the forthcoming EU regulations

in several technological domains, such as proposed AI regulations, the Cyber Security Act and the revamped NIS directive,” he continues, affirming that the MDIA-TAS is very well positioned to provide technological developers with the guidance they need to develop their solution in the best manner possible, and in line with such forthcoming regulations. Given that MDIA is operating in the digital innovation space, Ing. Borg says it is important for the Authority to constantly update its utilities in line with technological trends, as well as the market’s constantly evolving requirements. MDIA-TAS Version 2 does just that, building on its predecessor and introducing a few enhancements intended to further facilitate the use of such a utility and augment its assistive value. Amongst the new concepts introduced by Version 2, he points out the assistance through assessment regime, which is conducted in a tri-party manner between three major stakeholders – the Authority, the applicant/resident, and the technical expert. “These stakeholders, each having a defined role, working together for the attainment of an aligned technical solution,” he notes, adding that the technical expert is a new role aimed at helping to guide the applicant/resident to attain defined milestones through a series of assessments and recommendations.

“The Sandbox plays a pivotal role in ensuring that solution owners attain a positive return on investment when deploying innovative technologies, providing them with a competitive advantage in positioning themselves in the market.”

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By and large, he notes, “the introduction of the role of the technical expert will bring about augmented flexibility in allowing owners of technology to be comprehensively assisted in developing robust and secure solutions in line with industry standards and best practices. The tri-party meetings will ensure that the Authority is kept abreast with the developments, technological and regulatory conformance, and progress of the development, through dialogue and discussions held by the three parties.” Describing some of the tangible ways the Sandbox can be beneficial to Malta’s digital start-ups and SMEs, Ing. Borg attests that this initiative cannot be seen in isolation. “Our vision for the Authority is for it to be able to provide a holistic assistive package to a multitude of stakeholders, particularly including start-ups and SMEs. For the assistance to be complete, the Authority needs to position itself to provide technological advice, easy and financially advantageous access to technological platforms, business development advice and funds, physical space to experiment and regulatory compliance advice – accessed through the MDIA Sandbox environment,” he says, adding that this is particularly important in the context of ever-growing regulatory compliance requirements in a number of operational sectors. “When looking at the holistic picture, the Sandbox plays a pivotal role in ensuring that solution owners attain a positive return on investment when deploying innovative technologies, providing them with a competitive advantage in positioning themselves in the market. It is similarly being used to provide assurance and instil digital trust to a multitude of stakeholders of the technology, such as investors, developers, owners, users, regulators, and the general public,” he maintains. Building on this, and the other aforementioned schemes managed by the Authority, Ing. Borg goes on to mention an underlying pain point which technologists like himself, both local and foreign, define as a major stumbling block or inhibiter to the development of technology. “Unfortunately, although much has been done in this regard, the shortage in availability of skilled resources for any discipline directly or indirectly related to technology seems to be a problem which is not easily solved and requires a collective and coordinated effort to address,” he maintains, noting that MDIA has recognised such shortage and contributes to address this shortcoming. “For the third consecutive year, MDIA shall soon be reaching out to interested parties to offer lucrative scholarships under the name of Pathfinder MDIA Digital Scholarship. This scheme is intended to support postgraduate education (namely Masters [MQF Level

“Notwithstanding the MDIA’s infancy, the very particular and fast-evolving sector in which it operates, and the constant challenges it encounters in traversing unchartered territories, I believe that it has accomplished a number of fundamental advances.”

7] and PhD level [MQF Level 8]) in the fields of Artificial Intelligence, Cyber Security and other innovative technologies. Such an investment by the Authority contributes towards the betterment of the positioning of the local market by supplying skilled individuals in domains pertaining to technology,” he says. Looking towards the future for the Authority, the Chief Technologist maintains that, “notwithstanding the MDIA’s infancy, the very particular and fast-evolving sector in which it operates, and the constant challenges it encounters in traversing unchartered territories, I believe that it has accomplished a number of fundamental advances. Such will position it, in the near future, as an Authority of choice in providing a holistic set of services to technological solution/concept owners who would like to augment and bolster the technology they choose to deploy.”

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Industry Greats

76 years of diversification As he hands over the reins of the business to the next generation, seasoned entrepreneur and Founder of Vassallo Group Nazzareno Vassallo shares the inspiring story behind one of Malta’s leading groups of companies with Sarah Muscat Azzopardi. CELEBRATING ITS 76TH ANNIVERSARY THIS YEAR, Vassallo Group today boasts a strong presence in several sectors within the local market, including property and construction, furniture and interiors, elderly and disability, catering, hospitality and education. Yet, while the family-run business has established itself as a household name over the years, its roots – as roots often tend to be – are humble. It all started in 1946, against the backdrop of an island in ruin following World War II. It was then that the late Piju Vassallo formed a partnership with nephews Mikelang and Giuseppe Gatt, with the purpose of clearing out war debris from public buildings.

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Industry Greats

“Diversification made us more resilient, and helped us withstand the worst effects of COVID-19, which would not have been possible if we only invested in a single sector, like hospitality.”

“There is no doubt that World War II brought a lot of destruction to our islands. The irony is that even such a sad situation can create opportunities, as it did for my father and his nephews,” reflects seasoned entrepreneur and Founder of Vassallo Group Nazzareno Vassallo, who has been at the helm of the Group for more than half a century. He goes on to explain how his family members swapped farming for clearing war debris, by using their truck to sow the seeds which would eventually flourish to become an established and respected name in the building trade. “It has to be said that although he was venturing into a new area of economic activity,

my father still held dear the values and the philosophy of life that always guided the farming community. These values guided my father and his nephews as they contributed to the reconstruction of towns and villages destroyed by war,” Mr Vassallo reveals. Two decades later, in 1971, Vassallo Builders was born and incorporated as a limited liability company, led by Nazzareno Vassallo. Looking back on some of the major milestones within his early days in the business, Mr Vassallo affirms that the first came about in 1977, when Vassallo Builders won the largest turnkey project in Malta up to that time – The Danish Village in Mellieha.

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Industry Greats

“I describe our team as one that is in the ‘Premier League’, because although we set high targets, these targets are consistently achieved or exceeded, despite the challenges.”

Displaying further examples of this, he continues, “we branched into the disability field by setting up HILA (Home to Independence and Limitless Abilities) and building modern homes for persons with disability. We also supported Bjorn Formosa in his quest to operate a home for people suffering from ALS and other degenerative diseases with the opening of Dar Bjorn, and contributed to the mental health sector by opening Casal Nuovo, which today houses a number of patients who previously resided at Mount Carmel Hospital.”

“This development led to the company’s entry into the tourism industry and to another milestone – the building of holiday flats as well as The Bugibba Holiday Complex in the ‘80s. Then, in 1992, a consortium I headed won and completed the Air Terminal in Gudja,” he continues, listing notable business landmarks.

“Our diversification brought with it a number of advantages,” Mr Vassallo states, referencing the creation of jobs as well as the need for training, which the Group is also fulfilling through its own company, Learning Works. “But perhaps the biggest advantage was that this diversification made us more resilient, and helped us withstand the worst effects of COVID-19, for example, which would not have been possible if we only invested in a single sector, like hospitality.”

Another milestone was achieved in the ‘90s through the creation of CareMalta, making Vassallo Group the first private company in Malta to invest in developing a privately owned, purposely built facility for the elderly on the island. “This was a revolutionary step, because since then, private elderly homes have mushroomed in Malta, and have started addressing the endless waiting lists for entry into such homes,” Mr Vassallo explains, noting that the company was the first to partner with Government to run a government home for the elderly through a PPP agreement. Finally, Mr Vassallo points to yet another milestone, reached in 2009, when the Group began to invest heavily in property for use as offices, retail, as well as residential purposes. Looking at his business model, it comes as no surprise when the Founder says that diversification is the name of the game. “We never believed one should put all their eggs into one basket. We branched out into a number of sectors which were in line with our ethos, experience and capabilities,” he affirms, pointing out that the Group was able to diversify in particular sectors, such as that of care, by filling gaps which had been empty for many years.

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Industry Greats

Having grown up with Vassallo Group, Mr Vassallo has also collected many fond memories over the years, which, he says, “I will certainly cherish for the rest of my life”. Among these, he lists the Danish Village and all the work that went into it, winning the Air Terminal tender and completing it in record time, as well as the opening of many CareMalta and HILA homes. “With these I have to add many social activities we held as a Group throughout all these years, which gave me the opportunity to spend enjoyable time with our loyal employees,” he continues, adding, “in recent years, events such our annual Shine Awards in which we recognise the efforts, loyalty and service of our employees became an occasion I always look forward to.” Reflecting on the ways in which the business landscape has changed within the industries Vassallo Group operates in, Mr Vassallo outlines one major difference across the

board: increased competition. “This is one reason why we keep insisting on a quality service and loyalty to our clients, both individuals and businesses. We also recognise that our employees are part of the success that we have achieved throughout the years and therefore focus a lot on their welfare, well-being and development,” he explains, revealing that, for this reason, “in a number of sectors where we are involved, we have many employees who have been with us for over 10, 20, 30 or even 40 years!” Commenting on what it is about Vassallo Group that makes it stand out and continue to be a frontrunner, Mr Vassallo confidently attributes this to the sound structures and solid foundation the Group has built throughout the years. “This includes the way our companies operate, and the boards of directors running the companies comprising family members

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Industry Greats

and non-executive directors from outside the Group. I describe our team as one that is in the ‘Premier League’, because although we set high targets, these targets are consistently achieved or exceeded, despite the challenges. I am very proud of this.” Mr Vassallo’s own contribution has also not gone unrecognised, earning him the title of Malta’s EY Entrepreneur of the year in 2021, as Vassallo Group celebrated 75 years in business. Sharing his gratitude for the recognition, he commends EY for encouraging the entrepreneurial spirit in Malta as he looks forward to participate in their upcoming event in Monaco, together with the winner of this year’s award Mark Bajada, to whom he conveys his congratulations. “This award was not only a recognition of my contribution to the Group and to the Maltese economy, but also of the work of so many people over a span of many years,” he says with humility. It also comes at a pivotal point in Mr Vassallo and the Group’s journey, as he transfers the business to the next generation, having announced his stepping down from the role of Chairman last December. In his stead, his daughter Natalie Briffa Farrugia, who is also CEO of CareMalta, has been appointed Chairperson of the Group, and will work together with her brother Pio, who will continue to serve as Group CEO.

“New times bring the need for new targets and innovative ways of doing business, but I am confident that my children have the right frame of mind to face the challenges ahead.”

Commenting on this step, and his hopes for Vassallo Group moving forward, Mr Vassallo reveals, “although we only announced this development late last year I had been thinking and preparing for this eventuality for many years, so much so that I had ensured that all my children got involved in different areas of the business, giving them the opportunity to find their own field and to establish themselves.” “In a way, they have already had a share in the successes of the past,” he continues, “however now they have the chance to also explore new directions the Group can go in, and also go into new ventures. The Group is built on sound structures, which will certainly help them focus on new targets and not waste precious time building them. Obviously, new times bring the need for new targets and innovative ways of doing business – through digitalisation, for example – however I am confident that my children have the right frame of mind to face the challenges ahead.”

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Property

Real estate, done differently Robert Louis Fenech sits down with Real Agents Founder and CEO Justin Camilleri, who shares his thoughts on the sector’s professionalisation, what buyers and sellers need to know, and why the agency’s name reflects the value it brings to property negotiations.

WHETHER YOU ARE LOOKING TO BUY OR SELL A PROPERTY, an experienced and knowledgeable estate agent who can help navigate the market and find the best deal is a crucial part of the process, saving time and money, and taking a lot of stress out of one of the most important transactions most people will ever carry out. Having a partner who knows the nuances of the local area and is able to negotiate on your behalf with the confidence of a professional can make all the difference, especially in an ever-changing environment that can be daunting to those unfamiliar with the market and regulatory developments seen over the last years in the Maltese real estate sector.

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Property

“In places like North America, agents are very different, and when deciding to set off on my own, it was this different way of working that I aspired to bring to Maltese shores.”

PHOTOS BY INIGO TAYLOR

The local property market is dominated by large companies that work very differently to those in places like the United States or Canada, leading Real Agents Founder Justin Camilleri to sense a gap in the market, while the COVID-19 pandemic and the resulting shift in workplace dynamics served to create the perfect conditions to launch a new concept that promises to upend established practices by offering clients added value. Mr Camilleri explains that his real estate career began in 2014, having spent five years as an agent before transitioning to a managerial role. It was in this position that he became exposed to the way agents in other countries conduct business, speaking to realtors from around the world during conferences abroad. “In places like North America, agents are very different, and when deciding to set off on my own, it was this different way of working that I aspired to bring to Maltese shores,” he says. That difference can be boiled down to a meticulously professional approach that allows each agent unparalleled freedom to negotiate independently, without the to-and-fro with head office that characterises so many local deals. Key to the approach of Real Agents, which he launched in 2020, is a refusal to compromise on experience, with each agent’s long history in the sector empowering them to conduct the whole process – from A to Z – on their own. For sellers, this translates into real benefits with considerable financial impacts. One such benefit is the realistic property valuations that a seasoned agent can provide, says Mr Camilleri.

“There is a big difference between someone who just started working in the sector to someone who has been working in the area for years. Our team is not there to tell sellers what they want to hear. We’re there to help them sell.” Another area veteran agents are able to bring their experience to bear in is marketing, which is an increasingly costly task spanning multiple platforms, each with its own particular visual language. “When meeting a new client, our agents are able to tell them what they can expect to get for their property and how long it should take to find a buyer with extremely high accuracy. We can do this because each one of our agents knows the market and can leverage that knowledge for our clients through a personalised service that is consistent across agents – something that large franchises simply cannot promise.” At the core of Real Agents’ value offering is a very attractive commission structure reflecting both its team members’ know-how and the company’s low overheads, which it limits thanks to its focus on quality over quantity. “Our clients know that the commission our agents take is not going to pay the rent, complementary staff wages, or other things that are unrelated to the key business of negotiating a sale.” The set-up has other advantages too, including a level of discretion that allows agents to make their own decisions when it comes to price, without needing to seek authorisation from their superiors. “This means that we can close deals faster, something our clients really appreciate.”

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Property

The company’s name therefore reflects its ethos – clients are not dealing with a company representative, but rather a real agent with the experience to find the right deal and the power to close it quickly.

The less-than-stellar reputation of the larger players only became clear to Mr Camilleri once he set off on his own, with the people he thought would warn him against taking on such a risky endeavour instead expressing a sense of relief.

Unsurprisingly, agents with years of experience under their belts have been interested in Mr Camilleri’s structure, with the team growing to nine agents without any attempts at recruitment. Now, the company wants to expand in a bid to enlarge its footprint in the local market. “Our first two years were about building a base, including a modern backend system. With that in place, we can turn our attention to finding the right additions to our team.”

“The most common reaction our team gets from clients, once they are informed that we are operating in a different set-up, is ‘Thank God!’ It’s not what I expected, to be honest. The stigma runs deeper than you realise when you are in it. Our team members actually get more business now that we are working independently, because clients know they will not be receiving dozens of phone calls from other agents of the same company.”

That said, he is emphatic that the company has no ambitions of becoming the largest agency on the islands. “It’s about offering a level of service that goes beyond the norm, beyond what clients expect. Thanks to the way we operate, our agents have the tools necessary to offer a more streamlined, efficient experience.”

Of course, agents are only one part of the real estate market. Sellers and buyers are the ones whose needs have to be met – and Mr Camilleri has advice for both.

The population surge Malta experienced over the last years led to a hot real estate market, with many trying their hand at selling property in a bid to get rich quick. The Wild West-like nature of the industry instigated widespread criticism of an amateurish approach that did little to really serve clients, while heightened awareness of the potential for financial crime further cemented the need for an element of professionalisation to come into play. All this culminated in the launch of licences for realtors, something Mr Camilleri believes is a “very positive” development – albeit one that remains unfinished, with little by way of enforcement. “So far, we have a virtual licence number, but we are still waiting for the official documents. In future, it is important that these changes do not remain on paper, otherwise the impact will be limited. What we need is to know that our licence really means something, and for that we need to see real efforts to stop those operating without one, such as by having notaries ask for it while drawing up contracts.” The long-term result, Mr Camilleri hopes, is that the sector sheds the stigma it carries among those who have been put off by the influx of people who see the role as one of a simple middleman who does not bring additional value to the transaction. “This will take years, but the signs are all pointing to an increasingly regulated system where realtors have certain responsibilities, making for better agents operating in a system where everything works as it is supposed to.”

“In terms of the properties themselves, one aspect we see far too often is a development that does not go that extra mile to give it that touch of flair. Whether it is because developers want to cut costs or architects and designers do not think of them, the standard of finishings often leaves something to be desired.” He explains that many buyers with a budget of around €350-400,000 are left underwhelmed when they see new builds lacking smart design, good insulation and an element of future-proofing. “Initiatives like installing fast-charging points in garages, smart intercoms with good video quality, and even solar panels, really make a difference,” he says. “Too many buyers spend a lot of time looking at what the market has to offer and are left unimpressed. Sure, they eventually end up buying the best option, but they know they could get more – if only it existed.” As for buyers, Mr Camilleri has one top tip: “Strike while the iron is hot. Don’t rush, but don’t dawdle.” He recounts the experience of one client who opted to sit out the steep increase in prices seen between 2014 and

“It is better to have a network of specialists, each with a comprehensive understanding of a particular niche, than a mass of generalists.”

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2016. “For the same budget, instead of a maisonette with a yard, they got an apartment without a yard or even a balcony. That’s the risk you run when you spend too long thinking about it – the opportunity only lasts for a brief time, and is gone in a flash.” Although the COVID-19 pandemic did bring a level of price stability unseen in years, he still warns potential buyers against overthinking, pointing to the rising price of materials as a particular concern. “The price you find a property at today might not be the same price you find it at in three months’ time. I have had clients who sit on it for too long, only to lose out on a property they had become attached to. After that, the search only gets harder, as they keep looking to find a deal that is just as good, and three months quickly turn into a year. The psychological impact of missing out on a good deal can be a heavy one.”

Of course, recognising a good deal is easier with experienced partners by your side, and Mr Camilleri insists that each Real Agent focuses on a particular area. “When you work your area, you build up a reflexive understanding of property values in the surroundings. And that’s how it should be. Again, this ties into our focus on quality over quantity – it’s something I insist on with each new addition to our team. I work the North, and if you want a property in the South, I will pass your request on to my colleague, not try to undertake the job myself just to get the commission.” He concludes: “It’s about valuing time – your own and that of your clients. It is better to have a network of specialists, each with a comprehensive understanding of a particular niche, than a mass of generalists.”

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Business

Conquering the food chain

PHOTOS BY INIGO TAYLOR

The distribution of food and consumer goods is a crucial process that is often overlooked. Dean Muscat speaks with Roderick Abela, CEO of Nectar, about the challenges of the local FMCG sector, the company’s entry into the HORECA industry, and why taking a personalised approach with clients has been key to the company’s rapid growth.

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FOODS AND CONSUMER GOODS ARE SUCH A UBIQUITOUS PART OF MODERN LIFE that they are typically taken for granted as a commodity that’s simply always there. However, behind the scenes, it takes a lot of vision and hard work to ensure grocery stores, supermarkets, restaurants, and other hospitality operations are amply stocked with the quality products they need to serve their customers. One such company that is currently supplying over 3,100 local outlets with foods, beverages, and a whole range of other products is Nectar. Founded in 1991, but completely taken over by the Abela family in 1997, this family-run business has grown into one of Malta’s leading local importers and distributors of fast-moving consumer goods (FMCG), amassing an impressive stable of household name brands in the process, including Nestlé ice cream, Pfanner, Orbit, and PATA, among many others. Today, the next generation of the Abela family has taken the reins of the company. CEO Roderick Abela, together with brothers Mario and Carlos who are COO and CCO of Nectar respectively, have been instrumental in shepherding the company towards an impressive phase of growth and expansion into new sectors. “While Nectar has been in business for 31 years, in some ways we are a relative newcomer to the industry. That’s because our closest competitors have all been in operation upwards of 100 years. This meant that when we first entered the FMCG space, the market was already quite saturated, and it wasn’t easy for us to make inroads into this sector. However, this pushed us to take a different approach, which has really set us apart. From the start, we have striven to offer a superior service that’s based on fostering genuine interest in the wants and needs of all our stakeholders, whether they’re our brands, clients, employees, or end-consumers,” Mr Abela explains.

“From the start, we have striven to offer a superior service that’s based on fostering genuine interest in the wants and needs of all our stakeholders, whether they’re our brands, clients, employees, or end-consumers.”

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“The HORECA industry requires an entirely different approach when compared to the retail space. Significantly, it’s less focused on brands and more on the quality of service and reliability clients can expect.”

Key to this approach was a decision to provide their brand clients with a more focused service. Whereas other distributors may employ a couple of sales forces to oversee all the company’s products, Nectar began to put in place dedicated teams to handle a select few brands each. This ensured that clients were given more personalised attention with specialised personnel who knew their products inside out. The strategy proved to be a winning formula. The company went on to experience a remarkably fast growth, tripling its turnover in the last decade. This has also meant that more international FMCG brands have been keen to partner with Nectar as their regional distributor in the Maltese market.

“Today, we’re proud to employ one of the largest sales teams in Malta, with over 60 full-time sales specialists among our 175-strong workforce. This really allows us to provide a dedicated focus to each brand we represent. When we’re entrusted with a new product, we want to ensure that it not only enters the market, but that it thrives and gains a better presence. Even though we are a B2B business that deals with retail outlets, we also employ an in-house marketing team who continue to find creative ways to make our brands and products more well-known and appealing to end-consumers within the local market,” he says. Despite Malta’s small size, the local market does pose its own set of challenges to importers and distributors who are dealing with large, international brands. “In bigger countries like Italy or the UK, where there’s higher market reach potential, the trend is for distributors to be specialised in one type of product, for example confectionery. Malta on the other hand, is much more restricted, so we must diversify into more segments. In our case, we started from confectionery, but today the portfolio has evolved to many other categories, such as fish, groceries, beverages, frozen foods, and so on. But despite the complexity of the situation, we have learned to overcome the challenges in order to become experts at handling such a varied product line.” Beyond diversifying its product range, Nectar has also made strides within the hotels, restaurants, and catering (HORECA) industry in recent years. In 2012 the company set up a specialised sales force dedicated to its HORECA clients and now services many leading five-star hotels, restaurants, cafés, food kiosks, and the like. “The HORECA industry requires an entirely different approach when compared to the retail space. Significantly, it’s less focused on brands and more on the quality of service and reliability clients can expect. It’s also a much more demanding industry. This is because hotels and restaurants are reliant on consumption and tourism, so they can never plan and stock for a week ahead or so. Normally you have to react very fast, with deliveries being completed within 24 hours after an order is placed,” Mr Abela explains. In addition to supplying HORECA businesses with foods and goods, they also offer ancillary services to help their clients streamline and enhance their operations. Such services range from supplying and maintaining ice-cream dispensing machines to cleaning and descaling fish on behalf of their chef and kitchen team clients. Just as the HORECA side of Nectar’s operations was really beginning to hit its stride, with the company on course to experience one of its best

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years of sales ever, the pandemic hit, grinding the entire hospitality industry to a standstill. Despite the uncertainty of the situation, Mr Abela explains that a decision was quickly taken among the Abela family and directors to safeguard all the jobs of Nectar employees. During this period of downtime, they diverted the company’s manpower into putting several projects which had long been gestating in the pipeline into motion. “We used the disruption the pandemic caused to our business in our favour as best we could. One project we launched, for example, was a range of private label products. Our marketing team developed several new brands which repackaged bulk imported goods in retail friendly packaging, which we supply to consumers within local supermarkets. One such brand is Nettuno, which specialises in fresh and frozen fish and fish products. It’s proven to be a great success and we hope to develop similar brands down the line.” Now that Malta is steadily emerging from the pandemic, Mr Abela says Nectar is back on track, with business returning to pre-2019 levels. The decision to hold on to its entire workforce has paid dividends, as it meant the company had the manpower in place to adequately service its HORECA clients as soon as demand began to pick up. Following a period of consolidation and reinvention, the company is now looking to enter a new phase of growth and is investing in its

headquarters to increase its storage facilities as well as to add new technology to strengthen its operations. In the past few months, the company has also introduced several new product categories into its portfolio, including a vaster range of detergent products. “We are always looking for ways to enhance our product offering to provide our clients with more value. We’re particularly proud to announce that we are collaborating with wine expert Marco Vella to sell and distribute his portfolio of local and foreign wines. This is a venture which has been on our bucket list for a long time, but we took the time and energy to do it right. We feel we have a commitment to making excellent wine accessible and available to both the average person and the connoisseur alike, and we’re confident that we have the right channels to make this a reality. We foresee a bright future through this collaboration,” Mr Abela concludes.

“We used the disruption the pandemic caused to our business in our favour as best we could.”

PHOTOS BY INIGO TAYLOR

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Meet the Artist

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PHOTO BY LISA ATTARD

Meet the Artist

Enjoying Myself, 30cm (h), painted terracotta

Sculpting the dream Artist Francesca Balzan has risen to prominence in recent years by virtue of her idiosyncratic terracotta sculptures featuring the facial forms of Maltese characters past, and present. Here, she speaks to Rebecca Anastasi about her creative impetus and journey. “IT’S SUCH A JOY – CAN IT EVEN BE CONSIDERED A JOB?”, artist and art historian Francesca Balzan asks, rhetorically posing the question which runs to the heart of her creative endeavours. For, today, at 48 years old, Francesca understands that her work is her calling, despite having come to it a little bit later than some others may have. “It’s a bit hard to believe that I’ve arrived at this point, and that I spend all of these hours in my studio doing what I love.” And what she loves has been garnering recognition across the Maltese isles, with her

terracotta sculptures of Maltese faces offering a distinctive look at the country’s people and their social history. Indeed, her most recent exhibition – Impossible Conversations, which took place last November in Studio 87 on Liesse Hill, a stone’s throw away from Valletta’s Grand Harbour – followed many of the same methods she’s been employing over the last few years and is testament to those who lived in the neighbourhood throughout the last decades. To achieve this, Francesca used the passport details of the Maltese who lived in Ta’ Liesse across different periods of time – their photos, ages and

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Meet the Artist

background, sourced from their passport applications stored at the National Archives in Rabat – to build her sculptures and imagine what these people’s stories could have been.

PHOTO BY LISA ATTARD

“These passport applications contain not only the individual’s photos but their height, the colour of eyes, their address, if they had scars or tattoos, or if they were professionals. They also tell us where they were travelling to, and, for what reason, therefore, why they were applying for the passport. Sometimes, they even give details about the family,” she says, insisting that this allows her to imagine fictional versions of their lives. “My work is all about stories. On Instagram, for instance, many of the photos of my sculptures are accompanied by imagined stories of these people, which carry equal weight to the image. I imagine these stories as I’m working the clay and it’s almost as if the clay itself is telling me these tales. These are rambles into my imagination and that’s the sort of art form I want to continue developing,” she explains. From a young age, Francesca tended towards the threedimensional. “I’ve always dabbled in art and one of my earliest memories is actually sculpting a piece of cheddar with a knife, and my mother telling me not to play with my food,” she laughs, adding that, when she was just six or seven years old, she used to build small chandeliers with air-dry clay bought in small packets, as well as create houses out of stiff paper. Selfie mall-Grand Harbour, 32cm (h), painted terracotta

It was her parents who really encouraged and inspired her creative interests, with her father a regular at museums and

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Meet the Artist

exhibitions, and his books on myriad subjects stacked around the house. “‘Int għandek l-arti fik (Maltese, trans: art is within your soul)’, my mother used to tell me, and that would give me the confidence to continue, even when I became a teenager. My mother used to spur me on and, while, at that stage I hadn’t taken up formal training, I used to dabble on my own,” Francesca says. This proved crucial, she continues, explaining that, through her experience teaching and studying art in subsequent years, teenagers often let their artistic inclinations fade in favour of more ‘sensible’ activities. “I feel the tipping point is 14 years old – many young people become self-conscious, and they suddenly look at their art and they think it’s no good. So, they lose the freedom which they used to have when they were younger and which is so necessary in art,” she asserts, recommending continued exposure to various artforms, as well as opening museums up to school classes so lessons can be taught within those spaces. “A museum is not a dead space; the walls are alive. But, there needs to be a personal touch and students need to be encouraged to understand how the place makes them feel, and how it relates to them.” For Francesca, this freedom to explore her creative side was also clipped, to an extent, for when she came to decide on her future career, she opted to take the road more frequently travelled. “I wanted to study art history actually, but I remember being told that I’ll never find a job. So, I decided to follow family tradition and go into law, studying to become a legal procurator,” she recalls, adding: “I really hated the job, though: the pressure, the lack of creativity. I remember finding a job after graduation and going to work at a law firm which had a great art collection. I remember looking at the works displayed on their walls and wanting to immerse myself in them,” she continues. The situation felt untenable, and to release her frustrations, Francesca, at the age of 23, took up art lessons with the famed artist and teacher, Harry Alden. “I went to the School of Art (in Valletta) but I still had this urge to go back to University to study the history of art. I told my husband, Reuben, and he was incredibly encouraging, supporting me even financially when I decided to act on this longing,” Francesca says, underscoring the pivotal role those around her had in encouraging her talents.

the limelight. They gave me a platform,” she asserts. And, as her relationship with the Foundation deepened, Francesca also became a Visiting Lecturer at the University, therefore tying her practice and research interests together. “I have published a lot in the realm of the history of jewellery in Malta and I was really fascinated by what it tells us about society – the beliefs, the supernatural qualities which people attribute to certain materials – as well as about who was creating and selling the pieces.”

“I am who I am because of the people who supported me. I enrolled into the History of Art programme at the University of Malta, in my early 20s, and I never looked back. I loved every moment and, after my undergraduate, I continued with my Masters of Arts degree, specialising in the history of jewellery,” she continues. Graduating in 2007, Francesca quickly established her reputation as an expert in the field, curating a major exhibition under the auspices of Fondazzjoni Patrimonju Malti (FPM, otherwise known as the Maltese Heritage Foundation), which, had earlier, offered her a post launching, overseeing and running their museum Palazzo Falson Historic House Museum in Mdina.

In the meantime, Francesca’s artistic output continued to flourish. She worked with respected painter Celia Borg Cardona on a 4x3x2m sculpture installation for the Schengen arrivals area at Malta International Airport, and started to, independently, work on clay. “I sculpted a lot of faces, but I never showed anything publicly. I don’t remember why I started to dabble in clay, but I recall making a head, and it came out alright. That felt like a tap on the shoulder to continue to explore the material, so I kept pushing and building my confidence. Then, a few years ago, I decided to put my work out there, so I created an Instagram account (@franbalzansculpture),” she says. The warm reception encouraged her to leave her steady job and dedicate herself full-time to her art, although she retained the relationship with FPM through the podcasts she produces every two weeks for the Foundation.

“That was a tremendous experience,” she remembers. “Patrimonju were very supportive, pushing me, and giving me

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Meet the Artist

Today, her process centres on her synaesthetic work with clay. “The material is very much alive, and it reacts to what you do with it,” she explains. “It gives you ideas; it’s a dialogue of give and take. If I’m working towards an exhibition, I have my own brief, but I keep an open mind. I will always start with reference shots of where I want to take the work. Research is a fundamental element of my practice, yet I always make space for the clay to speak to me.”

The end result of this research is a document of the past, of the way people lived, and of the way their histories and conditions were etched on their faces. The figures are in turn startling or seductive, yet they all possess a streak of humour in the way the clay sits, the way the faces are built. It’s not a surprise to learn of the joy the work brings to Francesca. “It’s taken time to understand what ‘the dream’ is,” she smiles, “but, my artistic practice has now become a fulltime, sustainable job, although at the back of my mind, I’m always wondering if I’m indulging myself.” Despite Francesca’s self-awareness, her work is never indulgent. It’s borne from years of training, practice and dedication – as well as the inspiration wrought from other creatives around her. “It’s really vital for me to get feedback from other artists,” she says, pointing to Celia Borg Cardona and painter Debbie Caruana Dingli as solid friends and colleagues. “Through the years, these relationships have been important. Celia, for instance, consumes and reacts to the art around her and that has been formative for me – to be with

PHOTO BY LISA ATTARD

She retains a fascination with the Maltese physiognomy; with local facial features. “With my art, I use the past as an inspiration, so I put in a lot of work into research,” she says. The passport applications at the National Archives remain a great source of inspiration. “At first, I went through them to see how the Maltese male face has changed over time, looking at documents from 1916. Maltese men looked really different in those days – the first obvious change is that there’s more baldness today; people had more hair then, and they were also much thinner,” she asserts.

Oh Yes!, 22cm (h), painted terracotta

someone who is ready to spend hours talking about art, really validates your practice as something worth doing.” Francesca has recently participated in a large exhibition at Teatru Astra in Gozo, presenting an installation centred on narratives from the island. Looking ahead she is driven to keep exploring the art world beyond our shores, as well as to continue to create – whatever the circumstance. “I feel you need to be a driving force of your own art. You must have a burning instinct to get it out,” she smiles, determined to keep pushing the envelope – and the clay – in fruitful directions.

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Food & Drink

Re-imagining local culinary traditions

Some of Malta’s best loved traditional dishes are taking on an entirely different form, inspiring innovative recreations at Michelin-rated restaurants across the islands. Sarah Muscat Azzopardi takes a close look at some newly reconstructed traditional dishes and compares them to their original counterparts, which you can still find at traditional eateries in Malta and Gozo. FOR MANY OF US, FOOD HAS A CURIOUS QUALITY that enables it to transport us to a different time. The mere mention or scent of a dish we enjoyed in our childhood can bring memories flooding back, and with them, the emotions tied to that time in our lives. Among the Maltese, traditional dishes like kusksu and braġjoli are ones we know well – old

favourites that often found their place on the table at our parents’ and grandparents’ houses. Yet, despite these dishes harking back to the past, there is also a place for them in the future. In recent years, some of Malta’s top Michelinrecognised chefs have been drawing inspiration from traditional meals, reconstructing them and giving them a completely different form, texture and taste.

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PHOTOS BY BRIAN GRECH

Food & Drink

“Our version of qassata is made with a flaky butter shortcrust pastry, with salt cod instead of tuna, as it has more flavour and retains moisture in the dish. ”

Noni’s Qassata

key ingredients within it: spinach. “The inspiration started from celebrating the spinach mainly,” he explains, noting that the qassata was the first thing he associated with the ingredient.

The humble qassata is a local favourite fast food, and is the inspiration behind a dish that’s currently available on the menu at Noni, a Michelin-starred restaurant in Valletta.

“Our version of qassata is made with a flaky butter shortcrust pastry, with salt cod instead of tuna, as it has more flavour and retains moisture in the dish. It also features two elements of spinach – one is sautéed with confit leeks and preserved lemon, and the other is a set purée. Finally, three small slices of the finest Cantabrian anchovies are added for sweetness and umami. To set the whole dish, we use smoked haddock foam to give it a light and smokey flavour, finishing it off with N25 Oscietra caviar and spring leaves,” the chef describes.

Founder and award-winning Chef Jonathan Brincat is the brains behind the dish, drawing inspiration from one of the

Rather than improving on the original source of inspiration, Jonathan believes the dish acts as a celebration of it, to “elevate a humble Maltese staple and showcase it using the same ingredients but of better quality, with more refined techniques and precision.”

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Food & Drink

The Golden Fork’s Kusksu Visionary young chef Letizia Vella, who is Executive Chef at Michelin-recognised The Golden Fork, describes kusksu as one of the best showcases of Maltese culinary traditions, and a refined, re-imagined version of it is currently available at her restaurant. “This dish brings back memories close to home, given that it is a dish which my mother has been preparing for me since I was a kid. Hence I wanted to provide guests with the same experience but with a modern gastronomic twist,” she says, explaining that the base ingredients are similar to the classical recipe, including a cheeselet which is sourced from Gozo and broad beans grown in local fields. “We decided to enhance the dish by creating a ‘fake’ yolk, utilising carrot purée and cured egg yolks. In this manner we manage to modify our ways without bypassing any core values of the dish, whilst at the same time demonstrating innovative cooking methods and techniques,” the chef continues. Given the richness of traditional food in Malta, Letizia notes, the team strives to exhibit it to a wider audience whilst supporting locally sourced and produced

“We decided to enhance the dish by creating a ‘fake’ yolk, utilising carrot purée and cured egg yolks.”

ingredients. “Given that we change the menu at The Golden Fork on a seasonal basis, we have the opportunity to exhibit the great contribution that Maltese food can bring to the table. In the coming months, we shall be experimenting with other dishes and will definitely come up with more interesting twists to other Maltese dishes.”

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Food & Drink

“The dish includes different variations of peas, namely crushed peas, pea water jelly and a pea gel, as well as pea shoots to adorn.”

The Fork & Cork’s Pastizz Pastizzi are among the best-known local savoury snacks in Malta, and while they can be found at many pastizzeriji across the islands, one of the most celebrated is undoubtedly Crystal Palace in Rabat, or as locals refer to it, Is-Serkin. Rabat is also home to Michelin-recognised The Fork and Cork Restaurant, and it is this link, as well as the iconic nature of the local pastizz, that led Chef Patron Carl Zahra to re-imagine the delicious diamond-shaped filo pastries with a ricotta or pea filling on his menu. “We all have memories of going to Serkin for a couple of pastizzi after a night out,” smiles Carl, referencing the traditional outlet’s popularity among local party-goers, who head there for a hearty snack before heading home for the night. “Being located so close by, creating a dish to celebrate that had been in my mind for some time, and we finally decided to include it in our spring menu, particularly with peas also being in season.” The elevated dish includes different variations of peas, he notes, describing “crushed peas, pea water jelly and a pea gel, as well as pea shoots to adorn. Meanwhile, the ricotta is made into a crémeux.” Describing pastizzi as “a stamp of our food culture”, Carl and his team have thus taken the light snack the Maltese islands are so well known for to a whole new level.

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Food & Drink

Bahia’s Braġjolu

“When we decided to propose a tasting menu that represents local cuisine and the future, we thought of revisiting a series of classic Maltese dishes, and the braġjolu was one of them,” explains Executive Chef Tyrone Mizzi. “We never thought about trying to recreate the traditional braġjolu. We simply wanted to remain loyal to the recognisable rolled effect and to three of the crucial ingredients of this dish, mainly beef, pork and egg. The mentality at Bahia gives us the opportunity to keep ‘playing’ with dishes to continuously improve the offering. In fact, we have updated the braġjolu three times so far, and we are working on yet another version,” he maintains.

Bahia’s braġjolu is made out of braised short ribs and a terrine of locally smoked ham hocks, confit egg yolk, smoked celeriac purée, daikon radish and a rich beef jus. “We have full respect towards the original version as it represents part of our culinary heritage, and hence our aim was never to try and improve the dish but to pay homage to it, celebrating it together with all the memories many of us have when we think about braġjoli,” Tyrone continues. Another of the chef’s childhood favourites which also features on the menu is froġa tat-tarja (pasta omelette). “I have special memories of us eating this at home, and so besides the food itself, it is those special moments together that trigger a lot of emotion. This dish was also included in our FUTURE menu and just like the braġjolu, we are working to evolve it further,” he says.

“We never thought about trying to recreate the traditional braġjolu. We simply wanted to remain loyal to the recognisable rolled effect and to three of the crucial ingredients of this dish, mainly beef, pork and egg.”

PHOTOS BY TONIO LOMBARDI

You can find Maltese braġjoli, also known as beef olives, on the menu at several traditional restaurants around the islands, but the braġjolu on the FUTURE menu at Michelinstarred Bahia restaurant in Attard is a little different to the stuffed bundles of beef we’re used to.

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Food Trends

Potato milk - Today.com

Vegan Chocolate

From plant-based chocolate to a popular Japanese dish, Sarah Muscat Azzopardi discovers what’s cooking in the world of food. (More) alternative milk With the exponential rise of oat and other alternative milks in recent years, it’s no surprise that the race is on to discover the next alternative milk craze. A top contender is potato milk, which is said to work well in coffee as well as banana, hemp and cashew milk. Koji A fungus common in Japanese cuisine, koji is typically used for fermenting soybeans into soy sauce and miso paste, and while chefs have been using it ‘behind the scenes’ for years, it’s now set to enjoy its moment in the spotlight as a star ingredient in its own right, finding its way onto top restaurant menus. Vegan chocolate Plant-based chocolate has been sought after by vegans for years, but until now, hasn’t received much attention from the mainstream. That’s about to change though, with Lindt, Nestlé and Hershey introducing their own vegan chocolates.

Tinned fish Preserved tinned fish has been a popular staple in countries like Spain and Portugal for some time, and now, other countries like the UK seem to be following suit. Soon, there’ll be a lot more than tuna available in tinned varieties on supermarket shelves. Kelp This versatile ingredient is being dubbed as the next big thing to come out of the sea. The fast-growing seaweed has many nutritional and environmental benefits going for it, and can be used in anything from burgers to pasta. Yakitori Continuing the Japanese food trend, yakitori – meat or vegetable skewers cooked over charcoal – is a popular street food dish that’s making its way outside of Japan’s shores and onto the streets of trendy European cities, spawning a new spate of eateries dedicated to the trend.

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