The Commercial Courier - April/May 2014 Issue

THE COMMERCIAL/53

COURIER THE OFFICIAL BUSINESS MAGAZINE OF THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY SINCE 1947

APRIL / MAY 2014

Modern minimalism

Modern minimalism

A new direction A new direction for for local local architecture architecture

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE LEADING PROTAGONISTS’ TAKE ON MALTA’S 10TH ANNIVERSARY OF EU ACCESSION / FORMER EU COMMISSIONER JOE BORG ON THE CHALLENGING ROAD TO ACCESSION / EP CANDIDATES DISCUSS WHAT SHOULD BE ON THE AGENDA OF THE NEXT LEGISLATURE / ETC’S PLANS TO ASSIST THE INTEGRATION OF PERSONS WITH DISABILITY IN THE LABOUR MARKET / THE COLOURFUL AND COMPLEX WORLD OF ARTIST RAYMOND PITRÈ / THE POTENTIAL OF GAMES IN THE WORLD OF BUSINESS / THE LATEST BUSINESS NEWS

THE COMMERCIAL/53

COURIER APRIL / MAY 2014

90.

84 TRAINING & EMPLOYMENT

42.

food trends

“WE HAVE MARGINALISED UP TO 10,000 ADULTS WHO MAY HAVE VARYING DEGREES OF IMPAIRMENT”

89.

Martina Said speaks to ETC CEO Philip Rizzo about the Corporation’s new employment training initiative aimed at assisting the integration of persons with disability in the labour market.

13 COVER STORY 10 YEARS ON: MALTA’S 10TH ANNIVERSARY OF EU ACCESSION On the occasion of Malta’s 10th anniversary of EU accession, Sarah Micallef speaks to leading protagonists on how the island has fared in the decade that followed this important milestone in its history.

90 DESIGN TRENDS the complexity of simplicity Sarah Micallef speaks to the team at Grech & Vinci Architecture & Design about a recent residential project reminiscent of Spanish and Portuguese design.

102.

27 IN FIGURES

34 THE DEBATE

THE COMMUNICATIONS SECTOR IN MALTA… IN NUMBERS

WHAT SHOULD BE ON THE AGENDA OF THE NEXT LEGISLATURE OF THE EUROPEAN PARLIAMENT?

A look into the figures related to Malta’s communications sector.

28 INTERVIEW THE ROAD TO ACCESSION AND BEYOND: MALTA’S EU JOURNEY Former Minister of Foreign Affairs and former EU Commissioner for Fisheries and Maritime Affairs Dr Joe Borg discusses the challenges, negotiations and resulting benefits of Malta’s EU membership with Sarah Micallef.

lifestyle

45.

102 MEET THE ARTIST PORTRAIT OF AN ARTIST

Ahead of the upcoming European Parliament elections, Jo Caruana debates the key issues with some of the candidates vying for election.

Martina Said delves into the colourful and complex world of artist Raymond Pitrè, and learns about the diverse portfolio and artistic career leading up to his latest exhibition of works, Documentary.

42 INTERVIEW

115 INTERVIEW

THE FUTURE IS BRIGHT FOR COMMUNICATION

GAMES – THE EPITOME OF ENGAGED LEARNING

Vodafone CEO Amanda Nelson chats to Martina Said about her key priorities at the helm of Vodafone Malta, and what’s on the horizon for the company.

Diane Seychell chats to games expert Jan-Pieter van Seventer about the use of games in business, and Malta’s prospects in the budding sector.

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stablished in 1947, The Commercial Courier is the official magazine of the The Malta Chamber of Commerce, Enterprise and Industry. It is the leading business magazine, having one of the best distribution channels in the sector. The publication is distributed for free to the members of the The Malta Chamber of Commerce, Enterprise and Industry. It is also distributed with The Malta Business Weekly as well as delivered to leading business people on the island.

The Exchange, Republic Street, Valletta VLT1117 Tel: +356 2123 3873 Fax: +356 2124 5223 info@maltachamber.org.mt www.maltachamber.org.mt

Sarah Micallef Diane Seychell

Progress Press Ltd

Articles appearing in this publication do not necessarily reflect the views of The Malta Chamber of Commerce, Enterprise and Industry.

Publisher

Antoinette Micallef ant@box-design.net

All rights reserved. Reproduction in whole or in part without written permission of the publishers is strictly prohibited.

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Tel: +356 2132 0713 Fax: +356 2132 0714 info@contenthouse.com.mt www.contenthouse.com.mt

ON THE COVER Detail from a residential project by Grech & Vinci Architecture & Design.

Photo by Christian Sant Fournier.

Malta chamber’s silver collaborating partner

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Malta chamber’s bronze collaborating partners APRIL / MAY 2014

CC Editorial

An Industrial Policy for Malta The primary role of the manufacturing industry in providing opportunities for investment, employment and economic growth is increasingly being recognised. This view is shared by the Malta Chamber since the manufacturing industry provides significant direct and indirect contribution to Malta’s Gross Domestic Product (GDP). In this respect, the Manufacturing Economic Group within the Malta Chamber has ensured that the Malta Chamber’s forthcoming own seven-year Economic Vision for Malta provides for a solid productive and innovative manufacturing industry. There is urgency to act, given the new realities which Malta now faces in the aftermath of the euro zone crisis.

T

he Malta Chamber has updated its position paper for Malta’s industrial policy, as a key component of the Malta Chamber’s Economic Vision for 2014-2020. The Malta Chamber’s position will address the growing urgency for an effective national industrial policy. The urgency stems from the increasingly competitive environment resulting from the aftermath of the crisis, with other countries having undergone massive restructuring. At the same time, Malta’s realities often still go unrecognised at a European level.

The Malta Chamber’s paper coincides with the initiatives being taken at European

APRIL / MAY 2014

Union level to reverse the declining role of industry in Europe. This development can be considered as a positive stimulus for Malta to take stock of its situation and to enable it to improve its competitiveness.

In October 2012 (MEMO/12/759) the European Commission committed to reversing the declining role of manufacturing in Europe and set a target of 20 per cent share of GDP by 2020 for industry. During 2013, BUSINESSEUROPE put forward its proposals for an industrial compact and a pro-industry support framework. In April 2013, a position paper highlighting the fundamental priorities

for a competitive manufacturing sector was submitted by the Malta Chamber to BUSINESSEUROPE as feedback for the draft paper entitled ‘BUSINESSEUROPE industrial policy and growth strategy’.

In its position paper, BUSINESSEUROPE calls for this compact to provide an overarching framework to facilitate the targeted increase in the industrial share of Europe’s GDP from its current 15.3 per cent to 20 per cent by 2020.

The BUSINESSEUROPE recommendations were presented to the Presidents of the European Union’s three institutions in January 2014. The Malta 09

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The growth in Gross Value Added for the period 2006 and 2013 for manufacturing stands at a mere eight per cent as against 90 per cent of financial and insurance sectors and the 140 per cent of the i-gaming sector.

Chamber noted with satisfaction that these recommendations were in conformity with the proposed priorities for industry in Malta. On this occasion, Malta Chamber Deputy President Anton Borg appealed for a fairer and more equitable state of affairs between all European operators and citizens, and a shift away from a one-sizefits-all regulatory approach which renders it impossible for small states to achieve the required targets.

The Malta Chamber’s industrial policy aims to raise awareness of Malta’s inherent challenges which the industry base in Malta is facing, mainly to maintain its competitiveness. At the same time, it outlines the essential priorities which the Malta Chamber believes need to be tackled in the process of developing an updated meaningful national industrial policy.

The Malta Chamber’s paper includes 64 recommendations based on those factors which directly impact competitiveness and which are key priorities for investment decision-makers. These determining factors include immediate factors such as skilled labour force at competitive wages, stable

energy at competitive rates, investment support, efficient and competitive transportation links, internationalisation support, access to finance, smart regulation and reasonable factory occupancy costs.

Long-term sustainability factors include education, clusters and R&D and innovation.

Moreover, it identifies major pressing concerns for the sector and gives an outlook of the main determining factors to be considered for the industry’s strategic development. The main considerations being proposed concern four key policy drivers – policy governance, human resources’ quality and cost, competitiveness of the business environment and internationalisation.

Economic data presented by the Malta Chamber indicates a disproportionate growth within the Maltese economy in recent years, warranting careful consideration of its long-term sustainability.

The growth in Gross Value Added for the period 2006 and 2013 for manufacturing stands at a mere eight per cent as against the 90 per cent of financial and insurance sectors, and the 140 per cent of the

i-gaming sector. In fact, the manufacturing share of value-added in the economy steadily declined from 21 per cent in 2000 to 11 per cent by 2013 while full-time employment in manufacturing declined by 3,500 between 2007 and 2012.

The major concern of the Malta Chamber is that an emerging trend is evident whereby local plants of FDI multinationals are losing product lines to competing plants elsewhere in Europe. This could trigger a loss of investment in the local plant by the foreign investor company leading to a gradual running down of operations to the detriment of jobs and cluster activity of several SME companies.

The Chamber therefore believes that practical solutions are needed to send an important message to investors both local and foreign – that Malta is actively addressing its rising operating costs in line with other European countries and regions. It shall continue to monitor the situation and actively discuss concrete recommendations with the authorities with a view to achieve sustainable growth for industry and a valid contribution to Malta’s economy.

The Malta Chamber’s industrial policy will be presented to Minister for the Economy, Investment and Small Business Dr Chris Cardona in May. cc

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10 years on Malta’s 10th anniversary of EU accession With Malta’s 10th anniversary of EU accession upon us, The Commercial Courier looks into how the island has fared in the decade that followed this important milestone in its history as well as what’s on the cards for Malta as a member state in the coming years.

Sarah Micallef speaks to leading protagonists on the meaning of this historical date.

P

rime Minister Joseph Muscat calls 2014 the year of anniversaries, citing not only ten years of EU membership but 50 years of independence, 40 years as a republic and 35 years since Freedom Day. “We should take great pride in the advances we have made,” he asserts. “The Malta of today doesn’t just stand on its own two feet; it punches above its weight.

We are a respected independent nation, part of the European mainstream, enjoying excellent relations with our neighbours and countries worldwide.”

Referring to EU accession as “the single most important constitutional development in recent times,” Opposition Leader Simon Busuttil considers the 10th anniversary as “a

good opportunity to assess our experience over the past decade as members of the EU family. It is an opportunity to look back with pride but also to look forward with vision and ambition.”

Presiding over the accession of ten new member states including Malta in 2004, former EU Commissioner for Enlargement Günter Verheugen looks back on the time leading up to accession, considering the most important result to be the fact that Malta could develop a broad consensus on the usefulness of European integration, enjoying a stable majority of citizens in favour of the European project. “This was by no means self-evident when we started the negotiations back in 1999,”

he maintains, stating “despite Malta’s small size and population, it was a very bumpy road. The sharp political division of the country was reflected in the whole accession process. The miracle was that after the successful referendum, the decision was fully accepted and never put into question again. For me, this is a shining example of the maturity of democracy in Malta.”

Bearing in mind the success of the EU as a model of shared sovereignty and common policies, one that has “ensured unprecedented regional stability and prosperity,” EU Commissioner Tonio Borg considers the anniversary a significant one. He maintains, “by joining the EU,

Then Prime Minister Eddie Fenech Adami and then Foreign Minister Joe Borg signing Malta’ Accession Treaty in Athens in April 2003

“Malta completing its negotiations process with the EU was like a ship finally entering port, after going through rough seas and tempests which have very much been associated with our history.

This was our homecoming... mission accomplished.”

– Eddie Fenech Adami as quoted in his autobiography ‘Eddie – My Journey’ APRIL / MAY 2014

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Malta first and foremost became part of the EU single market with a single set of rules,” citing the benefits as being a single market attractive to foreign investors, increased but fair competition, and far greater clout in international negotiations.

There’s more to it than that, however. “The Union’s Structural and Cohesion Funds offer considerable aid for infrastructure, in particular in the areas of environment, transport and communication, which are vital for Malta to continue to develop its competitive tourism sector,” Commissioner Tonio Borg states. He goes on to mention that in joining the EU, Malta adopted common policies, programmes and standards that have had and will continue to have a significant positive impact.

Former Malta Chief Negotiator and Permanent Representative Richard Cachia Caruana is in agreement, maintaining, “not

only has EU membership been beneficial for Malta on multiple levels but it has also permitted the Government to respond more effectively to national challenges while contributing to addressing European concerns which are today interlinked with the concerns of Maltese citizens.”

Going on to refer to fears associated with integration and a loss of selfdetermination pre-accession, Mr Cachia Caruana states that these ultimately proved to be misplaced: “when we look back at this period for Europe, the legacy of our joint response to the economic and financial crises will be a more integrated, cohesive and united European Union which, while still focused on the member states that make up the Union, is closer to its citizens and better equipped to pre-empt future challenges.”

On the business front, Malta Chamber

“The open market allows Maltese businesses to sell, without barrier, to more than 500 million people. International investors also see Malta as a good place to base themselves.”

– Prime Minister, Joseph Muscat

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President David G. Curmi notes the significance of the 10th anniversary from when Maltese citizens and companies started to benefit from free movement of people, capital, goods and services between all member states. He maintains, “the single market has allowed businesses to operate unhindered and without barriers across all EU member states.

EU membership presented companies with the opportunity of having a huge potential market to tap with no concerns for customs duties or tariffs at internal EU borders. Businesses, irrespective of their size, were given the opportunity to maximise their efficiency and become more competitive.”

To this end, leading entrepreneur and Chairman of Farsons Group Louis Farrugia believes the anniversary is significant as “support for Malta’s joining the Union has grown as a result of our experiences across the spectrum of society, the performance of our economy and the adoption of EU standards resulting in a better quality of life for all.”

Speaking of the major milestones achieved by Malta as a result of EU

APRIL / MAY 2014

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accession throughout the past decade, Prime Minister Joseph Muscat considers the change of currency to be one of the most notable milestones, saying that the Euro “is now the cash in our pockets whether we are at home or in 17 other countries.” Another noteworthy landmark, according to Dr Muscat, is the European Youth Guarantee, of which he says, “no school leaver should start adult life without hope. The Guarantee, which my Government fully supports, is for every young person to get a job, further education or training.”

Dr Simon Busuttil also refers to the change in currency as being significant, stating, “from a country outside the EU, geographically but at times also politically isolated, we have managed to become one of the most deeply integrated members of the Union.” To this end, he credits achieving membership of the euro zone and embracing the euro, as well as accession to the Schengen zone, “which made immigration controls a thing of the past,” with having a large impact on the Maltese as individuals as well as society at large.

Analysing Malta’s achievements throughout the last decade, Günter Verheugen considers the results to be positive, in view of the island’s present economic and social situation. “The Maltese economy was able to withstand the competitive pressure from the common market and could even develop new growing sectors,” he maintains, adding “infrastructure is modernised; environmental weaknesses are more or less overcome.” Also citing the seamless introduction of the euro, Mr Verheugen believes that “Malta was able to weather the global financial and economic crises much better that the majority of EU member states.”

In Commissioner Tonio Borg’s view, the two most symbolic and concrete achievements of the member states’ endeavour to pool sovereignty are the Schengen area and the euro, and the fact that Malta succeeded in being part of these major achievements is in itself a major milestone. He explains, “the single 16

Photo by Lionel Galea

“We are members of the Premier League in the world. That is remarkable for a country of less than half a million.”

– Opposition Leader, Simon Busuttil

currency offers many advantages... not only are fluctuation risks and exchange costs eliminated and the single market strengthened, but the euro also means closer cooperation among member states for a stable currency and economy to the benefit of us all.”

Referring to what he considers the second historical milestone for Malta – joining the Schengen area – the Commissioner maintains, “the importance of Malta’s Schengen accession, coupled with Malta’s adoption of the euro enabled the Maltese to travel to other euro zone and Schengen Area member states not only without going through border checks, but also without having to go through monetary exchange. It has given our businesses an unprecedented advantage to compete in an internal market composed of 500 million consumers.”

Indeed, Richard Cachia Caruana believes

the first ten years of EU membership have changed our country dramatically and positively, maintaining that joining the internal market and introducing the euro “propelled the image of Malta as a sound and attractive destination for foreign investment and opened up trade and investment opportunities in Europe and beyond for Maltese entrepreneurs.” He also lists membership of the Schengen zone and the massive investment in education and training, health, communications infrastructure and the environment.

Mr Cachia Caruana goes on to mention four elements of Malta’s macroeconomic performance worthy of note since accession, namely its exceptional performance in job creation as well as the European Commission’s report in 2012 stating that over 93 per cent of Malta’s graduates find employment within three years of their graduation; the APRIL / MAY 2014

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“By joining the EU, Malta first and foremost became part of the EU single market with a single set of rules.”

– EU Commissioner, Tonio Borg

was the adoption of the single currency in 2008. “In addition to reducing transaction costs and exchange rate risks,” he maintains, “the euro presented further benefits to businesses by encouraging investment and bringing more certainty to business planning.” He also goes on to echo Commissioner Tonio Borg’s view in relation to Malta joining the Schengen area: “Maltese entrepreneurs are now free to move across the EU’s national borders without the need for visa or passport checks. This promotes trade and integration between the other signatories and Malta, while encouraging tourism.”

On behalf of the business community, Louis Farrugia, a former President of the Malta Chamber, sums up the major milestones achieved within the last decade as “improved consumer choice as a result of the adoption of the single market principle; increased employment and educational opportunities for Maltese citizens as a result of the possibilities to obtain employment experiences overseas; the adoption of open skies policies and the increased accessibility for Malta to many new destinations; funding for infrastructural investments; as well as the adoption of the euro which encouraged the repatriation of Maltese savings from overseas and investment in local projects.”

Indeed, going on to speak about the tangible benefits that EU membership has brought about, Dr Muscat maintains, “the compounded growth in GDP, which has been a remarkable 56 per cent over the period 2003 to 2013; the fact that Foreign Direct Investment has become a strong contributor to our GDP, growing by some 264 per cent between 2003 and 2013, and approximating €12 billion in June 2013; and being on target toward putting public finances on a sound footing between 2003 and 2013.

For David G. Curmi, there is no doubt that the one major milestone for Malta

“A cursory glance at our economy immediately reveals new sectors that were impossible or even unimaginable before EU membership.”

– Former Malta Chief Negotiator and Permanent Representative, Richard Cachia Caruana APRIL / MAY 2014

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open market allows Maltese businesses to sell, without barriers, to more than 500 million people. International investors also see Malta as a good place to base themselves.” Stating that it is important for the European Union to stay relevant to the people, he goes on to add that “benefits include healthcare when visiting other EU countries, grants for students to study abroad, an open skies policy that brought down the price of air travel, and a reduction in charges for using mobile phones while roaming.”

In Dr Busuttil’s view, EU membership has brought about “political stability and economic advancement,” as well as fully integrating us into the community of the most advanced countries in the world.

From an economic standpoint, he asserts, “we have raised our economic prosperity at faster rates, experienced low inflation and low unemployment, and now have one of the world’s foremost currencies in our pockets.” He goes on to mention that citizens’ rights have increased dramatically, “not just because we have acquired EU citizenship over and above our Maltese nationality but also because we have acquired new political rights as EU citizens.

We are members of the Premier League in the world. That is remarkable for a country of less than half a million.”

APRIL / MAY 2014

Mr Verheugen seconds this view, maintaining that membership has offered individual citizens better opportunities: “in particular in the case of education, training and research, Malta could open a completely new chapter. The country is no longer an isolated outpost. It is fully exploiting the opportunities which the wider community offers. I am delighted to learn that much of the younger generation of Malta travels a lot within the EU, studies at major European universities and develops international contacts, which makes their lives richer.”

Commissioner Tonio Borg also notes tangible benefits on the part of citizens to include “lower roaming costs when using mobile phones abroad, with the added prospect of no roaming charges; recognition of medical prescriptions; one single currency; free emergency care when on holiday in an EU country; Erasmus, Youth in Action programmes and the possibility to study in another EU country as if you were a national of that country; Schengen area free movement; cheaper prices and better access for business within an internal market; and better safeguarding of the environment thanks to EU requirements.”

On his part, Richard Cachia Caruana lists three main areas which illustrate

“I can confirm that Malta became a respected member state, whose constructive approach and clear European orientation is highly regarded.”

– Former EU Commissioner for Enlargement, Günter Verheugen Malta’s experiences as an EU member: the growth and diversification of the economy; EU funds and the development of our infrastructure; and EU citizenship and integration. He asserts, “a cursory glance at our economy immediately reveals new sectors that were impossible or even unimaginable before EU membership, including investment funds and their management in the financial services sector, the remote gaming sector, the wider ICT and software industry, the aviation sector as well as the production of medical devices and generic pharmaceuticals.”

Mr Cachia Caruana also notes that access to EU funds is an obvious way in which Malta’s infrastructure, businesses and private citizens have benefitted over the past ten years. “As a beneficiary of EU funding – to the tune of some €1.3 billion (over €3,250 per capita) between 2004 and 2013 – Malta has been able to 21

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“EU membership presented companies with the opportunity of having a huge potential market to tap with no concerns for customs duties or tariffs at internal EU borders.”

– Malta Chamber President, David G. Curmi

invest in areas that are fundamental to the development of the country’s economy,” he states.

From a business point of view, Mr David G. Curmi asserts that what is arguably the biggest overall benefit for the Maltese economy has been the free access to the single European market. He sums up the benefits, maintaining, “EU membership has brought about a reduction in regulatory burdens and a better chance of access to finance for business. It has also resulted in more employment and educational opportunities, a cleaner and healthier environment, a more favourable business climate, being part of a huge economic and political bloc, having an enhanced identity and greater clout on the international scene, and taking part in the decisionmaking process within the EU. There was also the benefit of Malta becoming eligible for participation in numerous EU programmes.”

Looking toward the future, Dr Joseph Muscat believes that while Malta is firmly anchored within the European Union, we should seek to maximise the positives and open ourselves up to the rest of the world too, building relationships, attracting investment and seeking new markets.

Seeing the Mediterranean as “a hub for peace and prosperity for Europe,” Dr Muscat notes that Italy and Greece hold the Presidency throughout this year and it is time for Europe to take note of the Med agenda: “for the first time ever, Malta will take on the Presidency of the European Union in the first six months of 2017. This will be our chance to set the agenda and demonstrate our ability to do things as well as our larger neighbours.”

Indeed, Dr Simon Busuttil believes that Malta is yet to achieve its full potential as an EU member. “For our country to achieve its full potential, we require a national Government that pursues a good European policy. How our membership will evolve will largely depend on how well our national Government manages its European policy,” he argues.

On Mr Verheugen’s part, he states, “I can 22

confirm that Malta became a respected member state, whose constructive approach and clear European orientation is highly regarded.” He goes on to mention disappointment in relation to the lukewarm attitude of the EU institutions concerning the refugee problem, stating “clearly this is not a result of accession – the refugees would head towards Malta whether the country is in the EU or not – but I would have expected more solidarity in the sense of financial support and burden sharing.”

Referring to his term as Commissioner for Enlargement, Mr Verheugen states, “Malta was a problem child for me. But as it sometimes happens, problem children can turn out to be stable and successful. I see Malta as a real success story and I am very happy that I could make a contribution.”

As for Commissioner Tonio Borg, it is his belief that Malta’s challenge is to continue to actively integrate itself into

the global political economy: “I see Malta continuing to pursue active and effective participation in the EU’s decision-making processes, in the interests of a strong EU that aims to consolidate peace and stability in Europe.” In this context he believes that Malta will continue to advocate and pursue its Mediterranean vocation, maintaining, “since joining the EU, Malta has consistently demonstrated the enhanced geopolitical clout it brings to international relations by promoting stability in the Mediterranean.

Malta can be expected to continue to play an important role in this region as an active player towards the political, economic and social integration of the Mediterranean.”

In Richard Cachia Caruana’s view, the next ten years should see a sharper focus on where to draw the line between national and European responsibilities.

He maintains, “Parliament and the APRIL / MAY 2014

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“Support for Malta’s joining the Union has grown as a result of our experiences across the spectrum of society, the performance of our economy and the adoption of EU standards resulting in a better quality of life for all.”

– Farsons Group Chairman, Louis Farrugia

Government will need to be focused on the long-term since EU membership implies specific challenges for Malta, including our open economy and the need to ensure that Commission initiatives in the taxation, transport and environment areas take into account both the intensive global competition that faces international business and the need for the member states’ economies to remain sustainable.

Our location will also mean that we need to be vigilant in regard to all initiatives and events that could draw illegal or irregular migrants to the European Union.” cc See full interview with Former EU Commissioner and former Foreign Minister Dr Joe Borg on page 28.

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APRIL / MAY 2014

CC in figures

The communications sector in Malta‌ IN NUMBERS

135%

the mobile penetration rate in Malta, which is very high, implying that a percentage of the population uses more than one mobile phone

9%

of all mobile users in Malta are making use of more than 1 mobile phone

3% percentage of households that consider terminating the fixed line connection, despite the significant rise in mobile users

53% 44% internet users subscribed to an ADSL connection

46% percentage of Maltese households with at least two TV sets

57%

1%

percentage of Maltese households with at least 1 HD TV set

26%

80% APRIL / MAY 2014

percentage of Maltese who claim they cannot live without internet

use of internet through a cable subscription

households citing affordability as the reason for not getting an internet connection, contrary to popular perception

percentage of households with internet access

76%

Source: Malta Communications Authority

percentage of households that are viewing TV via internet

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CC INTERVIEW

The road to accession and beyond – Malta’s EU journey

H

aving been a key player in the process leading up to Malta becoming an EU member state, Dr Joe Borg looks back on how it all began, stating, “I had been involved in the process of Malta’s preparations for membership since the outset. Back in 1989, I was asked by the then Prime Minister to draw up a report on the impact of Malta’s accession. This was published in March 1990, discussed in Cabinet, and submitted in July. I was also asked to work on the setup that Malta needed in order to prepare itself for membership and eventually post-accession.”

After the elections of 1998, Dr Borg’s major task as Parliamentary Secretary and later as Minister of Foreign Affairs was Malta’s adaptation and negotiations process, which he describes as “tough, but very rewarding.” He explains that the first step was working out the structures needed within the country for the purposes of negotiations, which necessitated a twopronged approach: “We had undertaken to re-activate the application after it had been frozen by the Labour government in the period between 1996 and 1998, but we had also undertaken to hold a national referendum upon successful conclusion of negotiations. That meant that it was not enough to negotiate successfully. We needed to convince the electorate that this was something that was good for Malta.”

To do this, a structure was formulated, comprising the negotiation secretariat within the office of the Prime Minister, headed by Richard Cachia Caruana, along with representatives from each Ministry. At a political level, as Dr Borg maintains, “we also formed a Cabinet Committee on EU matters, made up of the Prime Minister, the Minister of Finance, Richard Cachia Caruana, the Attorney General, the Head of the Civil Service and myself. There, every negotiating position that was formulated had to be politically approved before the negotiating team would be able to take it to Brussels to present it as Malta’s position in negotiations.”

Another aspect of the structure came in

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the form of the Malta-EU Steering and Action Committee (MEUSAC) which Dr Borg chaired, and which had a core group of members as well as members coming from different sectors with the aim of giving all sectors an active role in proceedings. Dr Borg explains the way in which MEUSAC operated during this time, stating “if we were discussing issues which are of a general relevance, it would either be within the core group or with the whole of the MEUSAC membership, which ran into about 90 people. If we were discussing sectoral issues, like for example the environment, you’d have the core group plus NGOs on the environmental front as well as representatives from Government ministries and departments connected with the environment.”

Dr Borg explains that a negotiating position was first formulated at a departmental level and coordinated by the negotiation secretariat. Subsequently, MEUSAC would see whether it was acceptable and whether certain qualifications needed to be made. A decision would be taken by MEUSAC and transmitted to the Cabinet Committee, which would take the final decision and defer it back to the negotiation secretariat to transmit it to Brussels. As for keeping the public informed, Dr Borg cites the setting up of the Malta EUInformation Centre (MIC), headed by Simon Busuttil, tasked with informing the public and different interest groups on membership in general as well as on specific aspects.

Dr Borg’s opinion on the outcome of the negotiations, looking back, is a positive one.

He maintains, “we managed to negotiate on virtually everything and obtain, to a large extent, what we wanted to obtain.” He draws on the particularly successful outcome in relation to negotiations regarding movement of workers. “The existing member states were afraid of a large influx of workers into the European Union, so the EU set a transitional arrangement with regard to movement of workers in the EU from acceding countries, except from Malta and Cyprus, who had the right to enter

Photos by Elisa von Brockdorff

Between 1998 and 2004, Dr Joe Borg went from Parliamentary Secretary within the Ministry of Foreign Affairs to Minister of Foreign Affairs, and upon accession to the EU, European Commissioner for Fisheries and Maritime Affairs. On the occasion of Malta’s 10th anniversary of EU accession, Dr Borg discusses the challenges, negotiations and resulting benefits of membership with Sarah Micallef.

“It was not enough to negotiate successfully.

We needed to convince the electorate that this was something that was good for Malta.”

APRIL / MAY 2014

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APRIL / MAY 2014

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“With membership we are part of the decision making process of this large, extremely important entity. In 2017 we will be running the presidency ourselves and we will literally be at the helm of the European Union.” the EU from day one. That was already an achievement, but on Malta’s part, we were afraid that a large number of Europeans would take our jobs, so we negotiated a transitional arrangement the other way around. We literally went diametrically opposite to what the European Union did for other member states,” he recalls.

He also considers the information aspect to have been very successful, stating, “MIC did an excellent job, and through MEUSAC, all stakeholders felt that they owned the process, which made a significant difference.

I am sure that that contributed significantly to the result that was attained in the referendum.” Speaking of the referendum, Dr Borg terms it a “risky business”, citing the disagreement in relation to accession between the two major political parties as an obstacle. He explains, “public opinion on the political front was split. The fact that we managed to attain the percentage that was attained in the referendum meant that, despite certainly having some otherwise Nationalist Party sympathisers who did not vote in favour, we had made significant inroads into the Labour camp.

Within the Maltese scenario, this was a big achievement.”

This is not to say that the process was without its challenges. Dr Borg looks back on the difficulties in relation to EU negotiations on Malta’s part. “During our MEUSAC days, the larger the numbers, the rowdier the meetings used to be, so it was an exercise in patience. I remember one meeting, in which we finally adopted the negotiating APRIL / MAY 2014

position on agriculture, where we invited all the representatives of the agricultural sector and related entities. We had to hold it at the Phoenicia, because it ran into a couple of hundred attendees,” he says. With issues discussed centring on competitiveness in relation to crops, viticulture and livestock, Dr Borg maintains that they ended up negotiating a good deal, although it also meant phasing out weaker sectors. He states, “there were sectors which showed strong potential, and we wanted to develop and strengthen our position as far as possible.”

Another challenging sector within the negotiations process was the environment, according to Dr Borg. He explains, “when it came to introducing certain environmental standards, we were lagging behind, so we had to upgrade considerably.” Another environmental issue which proved to be a headache, and which still causes a stir, was hunting and bird trapping. Dr Borg recalls, “we negotiated something which, if properly managed, is acceptable. I say ‘if properly managed’ because you get people who despite certain limitations, still end up shooting at whatever comes around – that’s never going to be accepted. If it is abused of, the chances are that the European Union will clamp down on this.”

Moving on to the question of immovable property, Dr Borg maintains that the worry on Malta’s part was, that being small and densely populated, immoveable property is very much in demand, so if the immoveable property market were to be open to all European citizens, property prices would

shoot sky high. He explains how this was tackled, stating, “we negotiated a special arrangement whereby any person can only acquire property freely in Malta if he or she is resident here for a period of five years or more. This way it did not discriminate on the basis of nationality but set parameters on the basis of residence. The end result is that property hasn’t sky rocketed.”

Looking back on the last decade, the former EU Commissioner considers the fact that Malta managed to achieve compliance vis-à-vis the convergence criteria which led to our becoming members of the Economic and Monetary Union of the European Union (EMU) and to the adoption of the euro as a major milestone. He asserts, “we are part of the EMU, which is something we achieved in a relatively short timeframe”, referring to fellow member states who have not yet fulfilled the criteria required. The same applies with regard to Schengen: “we managed to attain Schengen membership quite early, and this is an enormous plus when it comes to movement and travelling.”

Aside from these landmarks, he also notes the significant benefits of membership within economic sectors like financial services, where it has opened up several possibilities because of the freedom to provide services; as well as the environment, about which he comments, “environmental standards have improved considerably and I think this is largely attributable to membership and the increased awareness that came with it.”

On a political front, he goes on to maintain, “the fact that we sit around the same table as the other member states, and take decisions on a basis of parity is a big plus, and we have made a success of it. The problem with small countries is that they have to fight hard to appear anywhere. With membership we are part of the decisionmaking process of this large, extremely important entity. In 2017 we will be running the presidency ourselves and we will literally be at the helm of the European Union.”

As for the benefits of EU membership on Malta’s economy, Dr Borg highlights that it has helped our economy directly, because of the financial assistance that is provided, as well as indirectly, as it has meant that the economic sector has had to modernise and no longer depend so much on protection and tariffs, as well as physical and technical barriers. He states, “the fact that we have received structural assistance has helped to strengthen certain sectors of our economy that have potential whereas with others that were weak, it has helped for them to be phased out more gradually.”

Asked about whether he feels that EU accession has had any negative impacts on Malta, Dr Borg is resolute: “although I might sound naïve, I don’t really think so.”

Referring to the question of immigration as an example, he posits: “would we not have had to face immigration had we not been 31

CC INTERVIEW members? Malta happens to be on the way to the North African coast whether we are members of the European Union or not, so if they land here, we have to tackle that just the same. It is true that the question of burden sharing has not been adopted so far, but there is a hope that we will receive help in order to manage this humanitarian problem.”

He goes on to raise the issue of membership having necessitated a change in traditional ways of thinking, stating, “with membership our society has modernised further, and some might think that modernising the way you think is a bad thing.

I believe that it is for our own good. One may argue that we have had to give up certain ways we used to look at things, though I think we would have come to it just the same in time.”

Looking beyond Malta at the international crisis and recession within the euro zone, Dr Borg reflects on the future of the EU and the survival of the euro project, maintaining, “things have evolved so far that to go back would be unthinkable. The key players like France and Germany would certainly not want this to happen. Yes, the financial crisis has hit the European Union, but it has hit the rest of the world as well. The European Union as well as the United States and all the rest have to learn to manage things better, and I

“We managed to negotiate on virtually everything and obtain, to a large extent, what we wanted to obtain.” think this is what they are attempting to do.

There are indications that the worst is over and that things are improving.”

In relation to Malta’s evolution as a member state within the European Union, Dr Joe Borg believes that we should assert and emphasise our role in the Mediterranean, explaining, “we have very good relations with the Arab world, and we are trusted by our neighbours. I think that if we are perceived as being the defenders of the Mediterranean interests within the EU, it will give us a more central position. The Mediterranean is still very important for the EU.” As for the EU in general, with countries like Germany pushing towards further integration and the United Kingdom emphasising decentralisation of power, Dr Borg believes

the future of the European Union will see it continuing to further integrate in a piecemeal approach. He maintains, “none of the member states would like for the UK to end up outside of the EU, but the majority are not prepared to undo parts of what has been built. I doubt that the EU for example would give up on the Common Foreign and Security Policy (CFSP) dimension, but some form of arrangement or two-tier structure (as is the case with the UK not being part of the monetary union for example) could be a possibility. I think that the bulk of the member states would want to integrate further.” As for where Malta should place itself, Dr Borg asserts, “my personal view is that we should place ourselves with those that want further integration.” cc

CC THE DEBATE

What should be on the agenda of the next legislature of the European Parliament?

The majority of EP candidates agree that economic development and job creation should be a clear focus for the future.

Ten years into our EU membership, it’s time to elect six new European Parliament representatives to fly our flag. Jo Caruana debates the issues with some of the candidates vying for election.

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APRIL / MAY 2014

CC THE DEBATE

S

aturday 24th May will see the country go to the polls to elect Malta’s six new representatives for the European Parliament. Of course we all want to know if our voices will be heard, and what national issues the individual candidates will be focusing on if elected.

Here, we ask six of them to highlight what they believe should be on the EP’s agenda in the coming months and years.

“First and foremost we need to look at how to generate economic growth in Europe while safeguarding the European social

model,” says Alfred Sant, a Labour Party EP candidate who also served as Malta’s Prime Minister between 1996 and 1998. “We also need to ensure that future institutional developments fully respect the concept that the EU should be a ‘union of nations’.”

On the other side of the political coin and having already spent a year as an MEP, Roberta Metsola, who successfully contested last year’s casual election to fill Simon Busuttil’s seat, is eager to continue her work in Europe – and she’s got clear ideas as to what should happen next.

“The primary aim of the next legislature has to be the acknowledgment that Europe needs to be big on the big things and small on the little things,” she says adamantly.

“This is the ethos of the European People’s Party and one that I share completely. There are some issues – such as immigration, integration, fundamental rights, consumer affairs, cutting red tape for business and such – where the EU must continue to lead and take all our concerns into account.

“On the other hand, there are some issues that individual member states are best placed to implement at national level such as taxation, education, defence and more.

A one-size-fits-all approach does not always work, so it is essential that we find a balance that fully respects individual member states’ competence in particular fields, especially where there are ethical concerns too, and without a cost to what can be achieved on a European level.”

“We need to look at how to generate economic growth in Europe while safeguarding the European social model.”

– Alfred Sant

“Europe needs to be big on the big things and small on the little things.”

– Roberta Metsola APRIL / MAY 2014

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CC THE DEBATE For Labour Party candidate Miriam Dalli, it is the ‘bread and butter’ issues that she believes need to be focused on, especially as they could help to improve the standard of living for European citizens at large.

“The high levels of unemployment across Europe are, in my view, unacceptable and unsustainable,” she stresses. “The EP must help in the creation of a healthy European economy, one which creates more, and better, jobs. We must focus on improving the lives of people and supporting the most vulnerable in society while seriously addressing youth unemployment.”

Nationalist EP candidate Stefano Mallia, meanwhile, would also like to see the EU focus on job creation, as well as on how to pull Europe out of recession.

“Once that is carefully considered, then we urgently need to deal with the question of a migration policy for Europe based on solidarity,” he says. “We also need to deal with the issue of the future of Europe and, last but not least, there is the question of Europe in the world – particularly when it comes to the development of a better strategy for the Mediterranean region.”

For Labour Party candidate Marlene Mizzi, who was by-elected into the role of MEP in April 2013, it is also the creation of jobs for young people that she wants to focus on, as well as the elimination of the skills mismatch.

“There is nothing worse for a young person than not being able to find relevant work once they have finished their degree or training,” she says. “This would also be a waste of state investment, so it really does make sense to tackle it.”

Nationalist party EP candidate and business mogul Helga Ellul will similarly be focused on the creation of jobs for young people. “There are many challenges concerning youth employability that will be

“The EP must help in the creation of a healthy European economy.”

– Miriam Dalli

top of my agenda,” she says.

“Aside from this, I also believe that specific attention should be paid to microenterprises, as well as the facilitation for women to join, and find a permanent place, in the workforce. These are issues that

affect most member states and should be tackled at the highest levels, especially in the committees.”

Of course there are other concerns to be considered. For Ms Dalli, for instance, these include immigration and asylum, EU funds and EU budgetary allocation, energy and employment.

“I would also say that the greatest challenge for the years to come will be the need to find the right balance between development and care for our environment. I sincerely believe that sustainable development and investment in clean energy will be key in achieving this balance,” she says.

Asked specifically about the business community, the candidates also have a plethora of views.

“The interests of the business community are never adequately represented in the

“We only have six seats in Parliament and we need to ensure that the well-being of the Maltese business community is firmly on their agenda.”

– Stefano Mallia 36

APRIL / MAY 2014

CC THE DEBATE

“The needs of the business community are certainly bestrepresented by people who know enough of the sector and come from a business background.”

– Marlene Mizzi EP,” states Mr Mallia. “There is always more that we can do – particularly in Malta’s case where, due to its small size and limited reach, we need to pull every lever at our disposal to help our economic operators and risk takers.

“Hence while I salute the work that has been done so far by our MEPs, of course there is still much more to be done. We only have six seats in Parliament and we need to ensure that the well-being of the Maltese business community is firmly on their agenda. Given my background, if elected, I will be keeping very close contact with the Maltese business community.”

Ms Ellul is also renowned for her experience in business, and she believes this will be a key quality if elected. “All of our MEPs and prospective candidates have very valid attributes. However, my extensive experience in business, HR management and business strategy – as well as my Maltese and German background – can be beneficial for Malta, particularly vis-à-vis issues affecting our competitiveness and economic growth.

I have the skills necessary to debate and negotiate successfully on issues that matter to our country, especially in Parliamentary committees that focus on business, innovation and employment.”

Of course, Ms Mizzi is a well-known entrepreneur too, and she is clear about her focus on the business community.

“The needs of the business community are certainly best-represented by people who know enough of the sector and come from a business background,” she says.

“This is the sort of experience that enables the MEP in question to call on

his or her experience when preparing reports, proposing amendments, negotiating terms and gauging the effect of legislation on the business community and voting. Additionally, the EP committee that affects the business committee most is ECON – the Committee for Economic and Monetary Affairs, of which I am the vice-president. In my experience this is the best committee for addressing and safeguarding the interests of the business community.”

Meanwhile, Dr Metsola, who has a background in law, believes she can identify one major cross-cutting concern that rears its head time and again: the need to improve the connections and communication between the business sector and their elected representatives.

“Too often businesses feel cut off from the decision-making sphere and this will continue to be the hallmark of my activity,”

she says. “We need to work incessantly on our communication with all stakeholders in any particular piece of legislation going through Parliament, so that we are able to fully represent their views and lobby our colleagues in the best interest of the people of Malta and Gozo.

“Whether it is about the need to reduce bureaucracy when it comes to accessing EU funds, or the need to construct an EU data protection framework legislation that takes into account the size and nature of most Maltese businesses, more often than not, we need to continue to be able to reach a common position that benefits all concerned.”

Finally, Dr Sant summates his overall thoughts on the way forward for the local business community at EU level. “Malta’s EU policies and approaches need to reflect what should be the overriding strategic aim of our economy – that of jacking up the rates of public and private direct investment. These have been allowed to decline for too long.

“Now that there is a more realistic assessment of what the benefits and disbenefits of membership have been and are, presumably the interests of the business community will be more adequately represented at all levels of the EU – and that’s something we can really look forward to.” cc

“Specific attention should be paid to micro-enterprises, as well as the facilitation for women to join, and find a permanent place, in the workforce.”

– Helga Ellul APRIL / MAY 2014

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CC interview

The future is bright for communication Vodafone CEO Amanda Nelson chats to Martina Said about her key priorities at the helm of Vodafone Malta, the company’s new Corporate Social Responsibility campaign and two exciting anniversaries to look forward to next year, among them 25 years since Vodafone extended its operations to Malta.

Photos by Lionel Galea

S

ince assuming the role of CEO of Vodafone Malta last October, Amanda Nelson has already acquired a taste of the Maltese way of life. She says that the locals are warm and welcoming, which she describes as “refreshing”, compared to the more reserved ways typical of the Japanese culture with which she had acquainted herself during a recent, albeit different, post she occupied in Japan. However, she admits that inconsiderate driving and emotional reactions from people to seemingly simple things are still a little baffling to her, though she is confident that she will learn to get used to the locals’ ways.

Since joining Vodafone 15 years ago, her position as CEO of Vodafone Malta is her first such role, having previously worked in the financial division of the company for 13 years. “I started at the centre of Vodafone just as we were expanding, in the years we were buying operations in the US and across Europe. I wanted to work for a service company and I was very impressed with the people I met there, and stayed ever since,” she says.

She has travelled and worked in different countries, including her native UK, New 42

Zealand and Japan, but her last post as Chief Financial Officer in the Dutch business left her wanting to undertake more than just the financial responsibility. “I wanted to run a business, to become a CEO, and the joy of working for an organisation like Vodafone is that these things are possible.”

At the start of her new role, Ms Nelson identified three strategic priorities for Vodafone Malta, which in spite of being focused on the local market, are aligned with Vodafone worldwide. “Firstly and critically at this moment, our network is a priority.

We launched 4G at the end of last year and want to continue to roll that out across the islands, and to make our mobile presence stronger. Equally important is the experience customers get through the call centre, in the shops, online, on their phones, through apps and so on,” she explains. “Measures that we use show us that we are also best in class here, so it is not something that needs significant improvement, but we are never complacent. Lastly, we will continue to focus on being seen as good value by our customers. This doesn’t mean the cheapest, but customers are discerning and will pay for quality network and quality service.”

She adds that in order to deliver a good package, it is necessary for all these elements to come together. “We don’t just want to be strong in one area; we want to lead in all of them. This is what we’ve seen so far in Malta and it is what I’d like to do while I’m here.”

Asked for her take on Malta’s telecommunications market as it stands at present, Ms Nelson deems it to be healthily competitive, although she considers that three mobile networks for a population of approximately 420,000 is a lot. That said, she asserts that competition is healthy for the company as well as for the customer.

“Vodafone always operates in a competitive market; the industry is competitive. But what is interesting and unique to Malta is the way operators position themselves – two operators are all-rounders, bundling TV, internet, fixed and mobile telephony all into one package. Vodafone is a separate provider this way because we are mobile-focused.”

In view of this, could Vodafone’s focus on mobile telephony be regarded as a disadvantage? “I don’t think it is necessarily a disadvantage in Malta, because a lot of customers are watching TV in different, less APRIL / MAY 2014

CC interview

“Underlying all the different countries, I’ve always found the same passion, energy and common values of serving our customers, offering the best quality network, driving change and being innovative and ambitious in a positive sense.” traditional ways,” she explains, “and this is growing, such as IPTV and TV over the internet. Once you’ve tasted that ability to watch anything you want when you want, rather than watching what you want at certain times, then what you’re concerned with is the quality and speed of your data connection. There, Vodafone is already competing.”

Recent statistics published by the Malta Communications Authority show a clear trend of increased mobile phone usage, lower demand for fixed telephony and lower traditional television viewing against an increase in viewership for on-demand content. Ms Nelson says that not only does Vodafone recognise such trends absolutely, but it has been in the driving seat of those trends for the last 25 years.

“As the quality and experience gets better from 2G to 3G and now 3G to 4G, it opens up more and more possibilities, and I only see this increasing. We’ve got 4G coverage for the most densely populated areas already and are aiming to roll that out throughout the islands. I think what it will come down to is a good and complete communication package that allows you to call, send messages and do what you need to do with internet data. The distinction between mobile and fixed telephony, and terrestrial and IP TV will just fall away.”

Next year marks a significant milestone for the company – 30 years since the foundation of Vodafone and 25 years since expanding to Malta. Though the anniversaries are significant, Ms Nelson asserts, 30 years in company terms is nothing, but a look back is a strong reminder of just how much things have changed in a relatively short period of time.

“Today, Vodafone has just fewer than 420 million customers. We are the 16th most valuable brand in the world and the number one brand in the UK. I think it is really worth celebrating what has been achieved and the fact that all this energy, all these new ways that people have of communicating, is something that Vodafone has been part of delivering.”

In Ms Nelson’s opinion, however, Vodafone is more than that. What started off as an exciting adventure in telecommunication has grown tremendously, and it is clear that mobile phones have the potential to bring about more positive change beyond their function. “Across the world, the one thing people would never leave their home without APRIL / MAY 2014

is their phone, almost more than their wallet,” she says. “As part of our Corporate Social Responsibility work, we want to deliver services that target and help the vulnerable and disadvantaged. This is also why I love the industry: its power to change things.”

The company’s new Corporate Social Responsibility campaign for Malta, called ‘I Browse Safely’, is focusing on internet safety for children. A recently-launched website, ibrowsesafely.com.mt, has been developed, containing a wealth of information including blogs, downloadable apps and presentations in English and Maltese on how to understand internet safety and the issues surrounding it. “As we make the internet more accessible, and more children have phones and can browse, we see it as part of our responsibility to help parents see the implications of this.”

Ms Nelson says that there were several topics to choose from as a subject of their CSR campaign, but the company chose one that is close to home. “Our core product is connectivity, and we are driving the use of data on phones, laptops and tablets, so the subject is very close to our core and something that we can bring to Malta, using

resources that are already there. Access is running faster than awareness,” she explains, “and now people are starting to wake up to the long-term implications of how they’re exposed to the internet and how what they do now could follow them around. As a parent myself to four young kids, I find this stuff to be invaluable.”

Having experienced working in various countries for Vodafone, Ms Nelson considers her career so far to have been nothing short of inspiring, and she values the relationships she has built over the years with the people she has worked with across the world. “In 30 years we’ve done more than just enabled voice calling and texting.

We are fundamentally changing, in a positive way, the way the community works, the way people can access information, the way business can be done,” she asserts.

“Underlying all the different countries, I’ve always found the same passion, energy and common values of serving our customers, offering the best quality network, driving change and being innovative and ambitious in a positive sense. We value diversity – we are global and local at the same time.” cc

“Today, Vodafone has just fewer than 420 million customers. We are the 16th most valuable brand in the world and the number one brand in the UK.”

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CC LIFESTYLE

Spring into style The latest trends for work and play

Ñ Lindex Spring 2014 Ô NewMan Spring/Summer 2014

Looking stylish need not be relegated to your evenings and weekends. From keeping au courant with the latest trends to dressing to suit the occasion, Sarah Micallef gets some expert fashion advice on how to inject a dose of style into your daily nine-to-five.

W

hatever your office dress code, be it casual and creative or sharp and sophisticated, you can achieve a work-appropriate look while keeping the latest trends in mind. With the new spring/summer season just beginning and a host of new collections to inspire you, not to mention the weather starting to shift to the milder temperatures most of us welcome, it’s time to shake off your winter layers and inject some fun into your work wear.

Start with your grooming. Well looked after hair, nails and skin go a long way towards achieving the polished and professional look you’re after. As a general rule, women shouldn’t wear too much makeup for the office, and within most environments, both men and women are expected to practice good grooming, including neatly manicured nails and presentable hair. As for what to wear at the office, one should aim for the appropriate mix of the latest trends and your own personal style, coupled with your particular work place’s dress code.

Fashion blogger, Bianca Darmanin

“Suits are looking looser and softer, with trousers being looser, jackets longer and fabrics softer. The waist line is also getting higher with a 1940s/1950s reference.”

– Stylist, Luke Engerer Stylist, Luke Engerer

Fashion blogger Bianca Darmanin of The Fashion Carousel identifies the top spring 2014 trends for women, explaining, “pastels and ice-cream toned clothes and accessories are huge this season. Making a comeback from last summer, black and white are also trending at the moment as well as crop tops and high-waisted pencil skirts.”

Sophia shop owner Christina Hili expands on this, explaining, “modern art hit the catwalk hard this season with geometric patterns and splashes of primary colours popping up everywhere.

Pink and florals also did the rounds – pink being carried forward from being the star colour this winter. Prints and tribal influences are also evident and will feature more this summer. Logos are once again being brought back, be it on t-shirts, jewellery and handbags.”

APRIL / MAY 2014

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CC LIFESTYLE

“A tight fit tailored suit never goes out of style. Black is probably playing it safe during the colder seasons, but I’d rather go for something a bit more colourful for spring time like an electric blue or bright orange.” – Fashion blogger, Bianca Darmanin

As for the men, stylist Luke Engerer gives his take on what to wear this spring, maintaining, “florals are really popular for Spring ‘14. The most dominant are tropical florals. Wear them on shirts, shorts or accessories like ties, scarves and sports jackets for the more daring. Suits are looking looser and softer, with trousers being looser, jackets longer and fabrics softer. The waist line is also getting higher with a 1940s/1950s reference.”

When it comes to textures, Luke predicts that silk will be making an appearance this season for men, while blue – anything from sky blue to navy – is set to be the main colour of the season. With the warmer weather upon us, Luke explains that for spring 2014, “bermudas are longer and looser with a bit more of a sporty feel, while the double breasted blazer, which for the past few seasons has been slowly making its way up the trend list, is now officially back – it’s shorter and more tailored and looking really sharp.”

Aside from keeping the latest trends in mind however, it is also important to adapt your wardrobe to your lifestyle.

Tommy Hilfiger Spring 2014

Ó Ann Taylor Spring 2014 Ñ Timberland Spring/ Summer 2014

Mother of Pearl Spring 2014

Bianca believes that fashion is personal, maintaining, “if you feel comfortable, confident and make current trends fit in to your own personal style, there are no boundaries as to what you should or could wear. It’s more a matter of location and venue.”

Luke is in agreement, noting, “over the last few years I’ve noticed that people have become a bit more adventurous with style and thankfully style has become a more

“Modern art hit the catwalk hard this season with geometric patterns and splashes of primary colours popping up everywhere.”

– Sophia shop owner, Christina Hili 46

individual expression. It all depends on how adventurous you are – you can introduce a trend subtly or be bold and go all out.”

This means that you need not be afraid to stand out from the crowd, even when it comes to your work wear. Dressing for success and giving your overall look a refined and sophisticated polish will not only give you the confidence to shine in the boardroom, but also affect the way you are perceived by your peers within your professional environment.

When it comes to dressing for the office for the girls this season, Bianca recommends “minimalistic, tailored looks, mixed in with sport luxe items and fabrics you’ll typically find in sportswear such as neoprene jumpers.” Come the warm breeze APRIL / MAY 2014

CC LIFESTYLE

“Making a comeback from last summer, black and white are also trending at the moment as well as crop tops and high-waisted pencil skirts.”

– Fashion blogger, Bianca Darmanin

J Brand Spring/Summer 2014

of spring, Bianca is loving her personal favourite spring trend of “soft pastel hues and voluminous midi-skirts paired with dainty kitten heels,” to hit the office, but warns not to forget the classics: “a tight fit tailored suit never Furla Spring/Summer 2014 goes out of style.

Black is probably playing it safe during the colder seasons, but I’d rather go for something a bit more colourful for spring time like an electric blue or bright orange.”

As for Christina, she hopes to see more people “move out of their comfort zone and try new things as fashion is in a period of ‘everything goes’.” Having said that, she earmarks failsafe pieces for spring as the classic tailored blazer and a great handbag or shoes – must-have pieces in every 48

OVADIA & SONS Spring/Summer 2014

“The double breasted blazer, which for the past few seasons has been slowly making its way up the trend list, is now officially back.”

– Stylist Luke Engerer

fashionable woman’s wardrobe.

Commenting on men’s fashion, Luke confesses he is a big fan of blazers and sports jackets, and believes that spring is all about the introduction of colour. He advises against sticking to the neutral colours more commonly associated with the winter months this season, exclaiming, “I love a bit of colour! After months of thick, heavy clothing, it also feels liberating to wear lighter materials.” cc Hasan Hejazi Spring 2014 APRIL / MAY 2014

Best Dressed

As the weather warms up, take your outfit from the boardroom to an evening of al fresco relaxation thanks to these stylish choices.

01. Dressed Down Dress Down Friday at the office? Stylish spring day with the family? Denim is a huge trend this spring, and it exudes comfort and style. Pair a shirt like this one with chic trousers in bright hues, such as red or green.

02. Pastel Palette The most iconic look this season is typified by pastel colours. For the office this is ideally light blues, greens and yellows mixed with sharp white or beige. The result is a smart, nautical look that will effortlessly take you from day to night.

03. Slip On for Spring If you’re updating your shoe collection for the new season, be sure to include a pair of moccasins. These snug slip-ons also make the shift from work to free time very well, and are made of soft materials that ensure you’ll be comfortable all day.

STYLE

REVIEW

05. Smartly Tailored Nothing completes an outfit better than a sharp blazer. This piece, by Aquascutum in London, boasts a sophisticated check print and is meticulously tailored to create a traditional look. Crafted from silk and wool, it has a soft lightweight finish so it’s ideal for spring. Team it with beige chinos and a crisp white shirt for that special event or work do.

06. Walk Tall Bright, closed-toe shoes help make the transition from winter to summer. This pair,

by Romanian designer Mihaela Glavan, is ideal – especially as it will match beautifully with the pastel must-wear hues this season.

04.

07. Sunday Style We all love Sundays in spring – full of family lunches and outdoor picnics. For these occasions choose straight-leg trousers paired with deck shoes and a light jumper. Soft-tothe-touch and comprising a cotton-rich blend, these Reiss trousers in ‘rose’ will subtly add colour to your off-duty clothing repertoire. cc

02.

04. Green with Envy Green is one of the must-wear hues of spring 2014 and what better way to embrace it into your wardrobe than in a work-suitable dress, like this one? Match this with a white blazer or plum-coloured cardigan and heels, as well as a statement bag or necklace.

03.

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CC SHIPPING & logistics

Choosing the best freight company for your business The number and extent of freight services offered locally has grown and expanded considerably over the years to meet the demands of import and export. Martina Said speaks to established local freight companies who have been steering the freight industry for a noticeably long time.

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hoosing the right freight company could make or break the reliability and reputation of a business – it could be the game changer that makes it more competitive and therefore more efficient and successful. There are numerous factors that local businesses should bear in mind and evaluate when looking for the best freight company that suits their needs; primarily how trustworthy the company is, its reputation with other customers and the extent of personal attention that is offered to clients, as it could indicate the type of relationship that could develop between the freight company and the business seeking its services.

APRIL / MAY 2014

Philip Attard, Managing Director of Attrans Malta, says that on a local level, the human element is a pivotal factor in helping clients choose the right company to trust with moving their cargo. “Being such a small country where everybody knows everybody, it is quite easy to build a relationship with your freight forwarder or transport company. Whilst this reality should give a better sense of security to both client and service provider, it could also result in complacency from the part of the service provider which could lead to a sub-standard performance level. On a European level, most of the turnover generated is based on Key Performance

Indicators, and even though one could and should establish a good working relationship with the client, what matters is that the service required is delivered to the highest standard at every movement.”

Attrans offers road freight services from all traditional European markets, with the added value that through its network of Attrans operations in Italy, Holland and North Africa, it can offer extended connections through services which other Attrans offices run. The company’s biggest growth comes from clients who own manufacturing facilities or trade in a number of countries apart from Malta.

As Mr Attard explains, Attrans BV, for 53

CC SHIPPING & logistics instance, which is located just outside Rotterdam, operates daily services to and from Poland, Greece, Turkey, Bulgaria and Serbia to Holland. On the other hand, Attrans North Africa BV operates services from Benelux and UK to and from Morocco, Algeria and Tunisia. “The key driving force behind this expansion was the fact that a number of key clients in Malta awarded us contracts to move their cargo to a number of countries which a traditional European transport company would not consider.”

Jonathan Vella, CEO of Express Logigroup, agrees that one has to be careful when considering assigning responsibility onto a freight forwarder, with one of the most common situations being that the assigned party is incapable of delivering on agreed terms. “Using the right freight forwarder can save time, money and establish a more competitive base for the product being delivered. Using the wrong one can send you in the opposite direction, whilst exerting unnecessary pressure on the individual who is making use of that service.”

Express Logigroup offers a diverse portfolio of services; its experience coupled with flexibility means it is able to

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meet every customer requirement, be it a small sized package or the transportation of large exhibition events. “Although relatively new on the market, Express Logigroup is already making inroads as a household name for the real freight people.

Our principles are based on trust, quality and economical value, which are being represented by a management team which brings with it decades of experience in the field of transport and logistics.”

Mr Vella suggests that when seeking out the assistance of a freight forwarder, one must ensure it fits the needs of that individual or organisation. “One should assess whether the freight forwarder has the appropriate network which services the location of pick-up or delivery; has experience in handling the type of product and shipment within the market place; has a good credit rating and has received good

recommendations from other users.” Mr Vella adds that, while the company has plans to continue expanding in future, the primary goal for Express Logigroup right now is to invest in its people. “We believe in what the Maltese talent can provide – and this is how we intend to bring the quality leap which this industry has been long after.”

Nikki Zammit, owner and Managing Director of Arrow Express Ltd, is in agreement that, notwithstanding Malta’s size and limitations, the freight services offered locally compare well with what is offered overseas and that freight forwarders in Malta are knowledgeable about freight forwarding solutions and services offered by airlines and shipping lines. “The sector of services locally has evolved in line with the times. Over the years we have seen a big change in the

Notwithstanding Malta’s size and limitations, the freight services offered locally compare well with what is offered overseas and freight forwarders in Malta are knowledgeable about freight forwarding solutions and services offered by airlines and shipping lines.

APRIL / MAY 2014

CC SHIPPING & logistics

viewingmalta.com

way business relating to freight services is conducted, owing mainly to EU legislation, especially where security for the transportation of cargo is concerned. The industry is very dynamic and this is what has kept me in it for the past 25 years.”

Arrow Express Ltd is involved in practically all spheres of transportation, be it air freight, express courier services, sea freight, trailer services or customs brokerage. Its most popular services with local clients continue to be import and export air freight services and express courier products. On the air freight side, the company is regularly requested to handle top urgent aircraft spares, temperature sensitive goods and other specialised freight.

“Where our express courier products are concerned, our Shipping4Shopping service has proven very popular; a service designed for the online shopping community which provides the facility of a UK address to our clients in instances where the supplier would not ship to Malta, or the prices quoted for shipping to Malta APRIL / MAY 2014

are too expensive. Once goods arrive at our hub in the UK, they are subsequently dispatched to Malta by courier service.”

Mr Zammit adds that the company has, over the years, garnered an excellent reputation in handling complex logistics for exhibitions, concerts and high profile projects both locally and internationally. “A major factor contributing to our success in this field is undoubtedly the time we take to painstakingly plan each of these projects and have appropriate back-up plans in place to ensure a smooth operation.”

Express Trailers Limited, which is the operations company of Express Group, offers a range of transport and logistical solutions appropriate for individuals and companies alike. Franco Azzopardi, Chairman and CEO of Express Group, says “choosing the best and most applicable mode of transport depends mainly on the commodity. As experts in the field, we make sure to guide our clients throughout all stages and we help them identify the best solutions. Our professional attitude comes as standard from the very moment

a client calls or meets our staff.”

Express Group offers transport and freight forwarding services by land, sea and air, including customs clearance services, moving of personal effects, third party logistics, warehousing facilities and services specifically for the pharmaceutical industry. “We also offer motor vehicle transportation, industrial relocation and equipment rental, delivery of products bought online through our ShipLowCost. com online service and an efficient VRT station both for individual car owners and company fleets,” explains Mr Azzopardi.

“We service this industry’s demands through a modern and GPS-tracked fleet of temperature controlled trailers and two large equipped warehouses that are approved by the Malta Medical Authority.”

He adds that when clients come to choose the right company to deal with, they should ensure first and foremost that it is trustworthy. “We have a proven track record and we are proud to say that Express Trailers is among the most trusted in the sector. We are obsessed with quality 57

CC SHIPPING & logistics

Using trucking as a mode of transport presents its own pros and cons, the main pros being reliability and speed especially when compared to sea freight, while the cons would be the freight cost, particularly for dense cargo.

and this is always reflected in the service we deliver.”

C&C Trucking, whose main clients are small to medium-sized companies, offers a more specialised land transportation service on a weekly basis, direct from Benelux, Germany, UK, Italy, Spain, France and Portugal, through its Milan gateway. Mario Debono, Deputy General Manager, says “reliability and a personalised service are our strong point. We reach a number of business sectors; however our typical client is one that needs to transport less than full trailer loads, typically up to six pallets.”

Using trucking as a mode of transport presents its own pros and cons, the main pros being reliability and speed especially when compared to sea freight, while the cons would be the freight cost, particularly for dense cargo. What are the parameters for using trucking for freight? “The timeframe needed to deliver the goods is one of the most important things to consider,” replies Mr Debono. “It also depends on the flexibility of the timeframe, on whether the goods are voluminous or dense and on the value of the commodity. These are the main factors to consider when choosing between air, sea or trucking.”

Laurence Brincat, Logistics Manager at World Express Logistics Ltd says “the company fully understands that clients are nowadays putting more emphasis on transit time especially when it comes to courier services. Clients value professional and suitably qualified personnel who are able to provide a personalised service.”

World Express Logistics, which is a subsidiary company of Attard & Co Group of Companies, was established only 12 years ago, but it is backed by the Attard & Co Group which was established in 1921.

It provides clients with warehousing facilities and a comprehensive means of transportation solutions whether by courier, air, road or sea freight to any continent on the globe in the shortest possible time spans.

“World Express Logistics handles full incoming and outgoing courier services and its vast international database allows it to negotiate better rates for regular and higher volume clients. The company has captured the good name it enjoys today primarily because of the continued reliable and professional courier service it has been providing over the years,” says Mr Brincat. “One of the key areas of expertise offered is courier services to Libya. Through the World Express Logistics representative offices located in Tripoli and Benghazi, a safe and efficient delivery service is guaranteed.” cc APRIL / MAY 2014

CC FINANCE

FIMBank - A Global Force in Trade Finance “We ended 2013 with a stronger balance sheet than 2012 as well as healthy capital and liquidity ratios.”

FIMBank’s President Margrith Lutschg-Emmenegger discusses the bank’s results and strategy.

“2013 continued to present encouraging opportunities in international trade finance both with existing clients as well as with new products and markets.

These were reflected in the substantial increase in operating results registered for the year.”

Can you provide a brief review of FIMBank Group’s performance?

For the year ended 31st December 2013, the Group registered a loss of USD4.22 million compared to a profit of USD8.80 million in 2012. Despite another positive operating performance, this was negatively affected by high impairment losses. In fact, this sharp increase in impairments significantly depressed the Group’s performance. However, we did end 2013 with a stronger balance sheet as well as healthy capital and liquidity ratios.

Can you provide further information regarding the Group’s operating results?

Prior to impairment losses, marketto-market adjustments and share of equity results, the Group improved its operating performance by 13 per cent, from USD36.68 million to USD41.60 million. Net Interest Income increased by 23 per cent to USD15.94 million. Similarly, Net Fee and Commission Income increased by 11 per cent to USD22.89 million. This was aided by improved business volumes across all Group companies.

How would you describe the conditions for 2013, the year under review?

Although the growth in international trade during 2013 did not live up to expectations, the year ended on a slightly more optimistic note, with indicators increasingly pointing towards a bottoming out of the economic slowdown and the prospect of a slow recovery. This optimism was mainly borne by the easing of the European sovereign debt crisis, a fall in unemployment in the United States and an acceleration of Japan’s economy during the year. Meanwhile, large developing economies showed signs of a slow-down in this period, while India’s economy suffered sharp contraction. In the Middle East and 60

North Africa, where many countries are in transition, regional conflict, heightened political tensions and delays in reforms continued to weigh on growth.

How did FIMBank fare under these conditions?

Although the markets where the Group is active remained affected by generally challenging conditions for business, the year under review continued to present encouraging opportunities in international trade finance both with existing clients as well as with new products and markets.

These were reflected in the substantial increase in operating results registered for the year.

What are the principal impairments that impacted these positive results?

The impairments which had the greatest impact on the Group’s financial performance were those related to unrealised marked-to-market adjustments on specific distressed assets. These impairments were primarily linked to forfaiting operations by one of the Group’s subsidiary companies, and to a lesser extent, due to specific impairment losses registered by two of the Group’s joint ventures. The Group is committed to ensuring that no stone is left unturned in attempting to recover part or all of this exposure.

Will FIMBank shareholders be receiving a dividend?

The Directors will not be recommending the payment of a cash dividend to the Annual General Meeting of shareholders (in 2012 the net dividend per ordinary share was of US cents 3.693149). A resolution proposing a 1 for 10 Bonus Issue of Ordinary Shares by way of capitalisation of the Share Premium Account will be presented to the Annual General Meeting.

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CC FINANCE

How has the bank continued to position itself internationally during the last few years?

We have remained focused on Trade Finance, which is a banking business servicing the real economy, assisting customers with their trade finance requirements, be they international or domestic. We do this by providing customers with financing, as well as assistance to mitigate trade-related risk, while ensuring that any such operation is also structured to mitigate the risks for the bank. We also continued to pursue our factoring joint venture strategy and intend to expand our global network selectively.

Why is trade finance so important in a global context?

Trade finance is the lifeblood of the global economy and therefore a lack of adequate funding for trade would seriously impact the world’s economies.

Trade relies upon accessible financing for trade transactions. FIMBank offers a comprehensive range of financial services, and our specialty is the provision of tailor-made trade finance solutions.

Customers understand that they need the right partner to support their import and export as well as local sales activities, and in FIMBank they find a financial institution with an established track record and a reputation for understanding cultural differences and business practices.

holding companies in the Middle East and North Africa. Following this development, we are anticipating significantly improved prospects to take on new and more substantial business opportunities, to benefit from better funding resources and to strengthen the Group’s operating performance further.

this development will create additional jobs and further the recognition and growth of the island’s successful financial services sector. cc Contact: T: 2132 2100; E: info@fimbank.com

Can you explain how forming part of KIPCO Group will impact FIMBank plc?

In today’s financial markets, it is critical to have a strong reference shareholder with a good rating. This facilitates access to funding and ensures a strong and solid equity base, coupled with substantial cross-fertilisation opportunities. This development will also enhance FIMBank’s image and provide a huge potential for growth. Malta also stands to benefit, as

“FIMBank is now a member of KIPCO, one of the premier Middle Eastern trading groups, and indeed one of the largest diversified holding companies in the Middle East and North Africa.”

FIMBank is now operating from its modern head office in St Julian’s. Have the new facilities improved operations?

We now have close to 200 employees working from Mercury Tower, and are also benefitting from owning and managing our own office building. Throughout the development of this project we stuck to the initial four key factors defined in the original brief, namely location, functionality, flexibility and sustainability.

The result is a world class facility which fully reflects FIMBank’s international reputation. It is remarkable that after 19 years of operations, the bank has grown, matured and diversified its trade finance activities and now boasts of a state-ofthe-art head office in Malta, supporting a global network of offices located in more than ten financial centres worldwide.

What is the outlook for 2014 for the FIMBank Group?

2014 started off with the joint offer

by Burgan Bank and United Gulf Bank, which resulted in these two institutional shareholders increasing their stake in FIMBank to approximately 80 per cent.

FIMBank is now a member of KIPCO, one of the premier Middle Eastern trading groups, and indeed one of the largest diversified APRIL / MAY 2014

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CC make the headlines

Reduce operating costs through an automated Time and Attendance solution For many businesses, the process of manually inputting timesheets is lengthy and frustrating. Too much time is spent correcting human errors, leading to reduced productivity and an increase in costs. Manual inputting of timesheets also leaves employers vulnerable to ‘buddy punching’ – clocking someone in when they’re not actually there.

Biometric Time and Attendance (T&A) solutions are accurate technologies which keep track of user activity in a helpful and reliable manner, and provide numerous benefits for business owners and employers. Biometrics takes unique human physical characteristics and uses them for identification of employee identity and verification. Hand print, finger print and facial patterns are used to identify employees and note the time they enter or leave the workplace.

Automated T&A tracking solutions eliminate errors by creating accountability

and transparency. They reduce labourintensive processing of payroll and help eliminate costly overpayments. Biometric T&A solutions provide robust reporting and help create a reliable audit trail to simplify compliance tasks.

Through an automated T&A solution, manual inputting is eliminated. Workforce productivity is increased as the time taken to input, check and approve timesheets is reduced drastically. Automated employee tracking also increases accountability and reduces costs as unnecessary overtime is eliminated.

Curbing fraudulent clock-ins with a manual time and attendance tracking system is nearly impossible. A biometric T&A solution solves this problem as employee timesheets are submitted electronically.

Automated T&A solutions are reliable, easy-to-use and can be integrated directly with a company’s existing payroll solution. This interface allows data such as overtime, hours worked and sick leave to be integrated easily with the payroll software, delivering an efficient employee payroll process. By reducing manual labour and eliminating errors, time and money are saved, and business owners gain peace of mind. cc

Darryl Schembri is an engineer with AIS Technology Ltd, a leading engineering firm with over 22 years’ experience in biometric Time & Attendance solutions. AIS Technology has installed numerous T&A solutions at both private and public organisations.

AIS Technology Ltd, BLB903, Bulebel Industrial Estate, Zejtun.

T: 2180 3374; F: 2180 3363; M: 9949 0915; E: info@ais.com.mt; W: www.ais.com.mt

CC make the headlines

The Way Forward for ICT in Malta The future of ICT-related business and development in Malta was given a boost last month with the launch of Digital Malta – the new, national digital strategy for 2014-2020.

Following on from extensive consultation with key stakeholders and interested parties, this seven-year strategy will strive to make Malta’s industries more competitive through the use of ICT, as well as to improve people’s lives in general, increase Government’s efficiency and help businesses to flourish.

After all, Maltese businesses do face a variety of ICT-related challenges, including insufficient capacity to innovate, a clear misalignment between the ICT education curriculum and industry needs, and a lack of adequate schemes for business angel investors.

“This strategy will tackle all of that and more,” says Tony Sultana, MITA Executive Chairman. “It won’t only focus on the ICT industry but will also support the use of ICT across all business domains. This will help companies of all sizes to take that leap towards bigger future successes. It is certainly an exciting step towards substantial progress for Malta.”

As a result of Digital Malta various initiatives will kick-start this year, including the development of an eCommerce Strategy to set out Government policies, the annual eBiz awards to promote ICT talent, the launch of the MITA Innovation Centre at SmartCity Malta and the increased availability of free Wi-Fi access, to name but a few. cc For more information on Digital Malta, including details on its goals, guiding principles and initiatives, visit digitalmalta.gov.mt

APRIL / MAY 2014

CC environment

The Waste Reduction Awards – an added incentive to make your company greener Waste reduction is the latest in eco campaign trends. While recycling has been promoted with great effect and for quite some time, efforts to push the waste reduction concept are in comparison still in their infancy.

In a drive to introduce the waste reduction theme to Malta, four years ago WasteServ took on the role of local organiser for the European Week for Waste Reduction. Held each year in November, the ‘EWWR’ is an initiative carried out across Europe to encourage people to find innovative ways to reduce the amount of waste they produce.

The event brings together waste-themed activities carried out all over Europe, with participants ranging from large corporations to SMEs, public entities, NGOs, schools and even individual citizens.

Last November, 66 actions were registered for the local edition. In order to recognise the most innovative and exemplary initiatives, a panel of judges was set up by WasteServ and the best entry in each category was awarded at the Waste Reduction Awards.

The Best Practice Award for Waste Reduction in Business was won by Malta Freeport Terminals Ltd (MFT), which received a €1000 sponsorship towards a team-building event. Their action involved taking a wide variety of steps to increase waste reduction within their daily functions, apart from organising educational team

events for employees and their families during Environment Day. Themed ‘Keep Your World Green and Clean’, activities included a treasure hunt and a clean-up and waste management training exercise, among others.

“We were thrilled and very pleased to have won such an award. This encouraged us to continue studying ways and means of how we can increase our waste reduction measures,” shared a company representative. “During that period, MFT was reviewing its Waste Management Plan and the EWWR was essential to promote the proposed plan. We were very satisfied with our outcome especially with regards to the positive feedback we obtained from various employees and third parties who encouraged us and provided further ideas on how to improve.”

St Ignatius College Girls’ Secondary was the winner in the Schools category and won a €1000 sponsorship to invest in school resources. Its EWWR action involved raising awareness on waste management among businesses in the Ħandaq Industrial Estate, which is also home to the school. The activity

was supported by the Qormi mayor who actively participated in the event. Winners of the Best Practice Award for Waste Reduction in the Associations category were Home Economists in Action, who set up cooking stations at the Farmers Market in Ta’ Qali and Birgu as well as on university campus to showcase ‘Food Rescue’ recipes and distribute information on how to reduce food waste. They too won a €1000 sponsorship.

Another award-winning entry was that of Soċjetà Mużikali Madonna tal-Ġilju that won the Recycling Best Practice Award and a €500 cash prize. The Mqabba-based club showcased the importance of recycling even the smallest of items in order to save precious landfill space. This was demonstrated by collecting plastic bottle caps from the public and using them to fill up a construction truck which they stationed in the village square, grabbing much attention from passers-by.

A video competition on the 3Rs won Sliema Local Council the prize in the Public Administration category. The prize consisted

“By participating in such events, one is promoting good practices which can then be imitated by others, thus making our society a better place to live in!”

– Waste Reduction Award 2013 winner (individual category), Joanne Scicluna

Winners of the Waste Reduction Awards 2013 with Hon. Minister Leo Brincat, WasteServ Chairman David Borg and WasteServ CEO Tonio Montebello

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APRIL / MAY 2014

CC environment of a €500 sponsorship to invest in waste separation bins. The winning video was played at various Sliema outlets during the dedicated week in November and was also uploaded to social media. On winning this award, the Local Council said, “at the end of the day the more people participate, the more projects there will be of benefit to the environment, therefore in reality whoever participates is a winner as something beneficial was done for the environment in the process.”

In the Individuals category, Joanne Scicluna won a cash prize of €500 for her voluntary fundraising in aid of Fondazzjoni Suret il-Bniedem through the sale of her upcycled jewellery, home décor and Christmas decorations, among other items.

Like all other local winners, Joanne was nominated by WasteServ to represent Malta at the European Waste Reduction Awards, an awards scheme open exclusively to participants of the EWWR. Out of the six Maltese entries, Joanne was lucky to be shortlisted with the top three European finalists in her category and will be travelling to Rome this May to attend the prestigious award ceremony. Commenting about her experience of the EWWR, Joanne said, “it was a very positive experience. It was also interesting to see how other people and organisations are using their talents and capabilities to promote waste reduction.

By participating in such events, one is promoting good practices which can then be imitated by others, thus making our society a better place to live in!”

Encouraging people to reduce their waste is definitely an important step in getting society to be more environmentally responsible. Waste reduction in fact comes top of the ‘Three R’ hierarchy; Reduce, Reuse and then Recycle, the basic concept being that generating less waste also lessens the quantity of waste which needs processing, either through recycling, composting, incineration or landfilling – the latter being the most prevailing method in Malta.

Apart from the direct environmental benefits, waste reduction can also help businesses and organisations from a financial standpoint and public profile perspective. For one, reducing the volume of resources used can produce significant cost savings, especially if such efforts are focused on core resources. Office-based entities could start off with reducing paper and stationery, though all businesses can minimise their use of almost any resource given a solid action plan. Secondly, waste reduction can also help a business increase its level of corporate responsibility. Society is becoming more and more educated about the ethics of business, with those demonstrating environmental and social responsibility becoming increasingly successful. Any business can join this green movement and see the benefits in consumer APRIL / MAY 2014

Malta Freeport Terminals Ltd - winner in the Business category

Soċjetà Mużikali Madonna tal-Ġilju - winners of the Recycling Award

Apart from the direct environmental benefits, waste reduction can also help businesses and organisations from a financial standpoint and public profile perspective. and stakeholder approval.

Participating in something such as the European Week for Waste Reduction is a great way to step on to the first rung of the environmentally friendly ladder; it provides guidance, structure and promotional opportunities to support the efforts of your business. You might choose to organise something simple such as developing an action plan to reduce paper consumption or if you are really enthusiastic and creative you could come up with more innovative solutions or awareness-raising events. All initiatives large and small are eligible for the EWWR and participating is completely free of charge. cc

The next European Week for Waste Reduction will take place between 22nd and 30th November 2014, but why not start planning now?

For further details contact WasteServ on T: 8007 2200; E: ewwr.ws@wasteservmalta.com; F: www.facebook.com/WasteServ

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CHAMBER/53

NEWS Internationalisation

01.

Middle East Business Council representatives at Kuwait National Day reception On 20th February, Middle East Business Council Chairman Tonio Casapinta and Member Dr David Zahra, represented the Middle East Business Council (MEBC) within the Malta Chamber at the Kuwait National Day reception held to mark the 53rd anniversary of the National Day and the 23rd anniversary of the liberation of Kuwait.

During his speech, then President of Malta H.E. Dr George Abela spoke about the MEBC Business Council and how its establishment would serve as a vital instrument for future cooperation enhancing business relations between the two countries.

The representatives of the MEBC also had the opportunity to meet the Ambassador of the State of Kuwait to Malta, H.E. Faisal Sulaiman AlMusalleem and they extended the greetings of the management teams.

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The Malta Chamber launched the Maltese-Portuguese Business Council (MPBC) on 26th February at the Exchange Buildings in Valletta. This Business Council is supported by Banif Bank (Malta) plc as part of its gold partnership agreement.

Malta Chamber President David G. Curmi welcomed the attendees and spoke about the importance of Business Councils to the Malta Chamber’s internationalisation strategy, pointing out that the Chamber has taken this approach in order to avoid fragmentation as well as to ensure the continuity and integrity of the Business Councils.

MPBC Chairman Garry Crossan said that the launch was the result of a year’s preparations, during which

the committee had defined its mission statement, contacted and met with relevant stakeholders and created the corporate identity of the Business Council.

Chairman of Banif Bank plc and former Portuguese Minister of Foreign Affairs Luis Amado was the keynote speaker at the event. He spoke about the economic outlook for Portugal and the economic recovery that the country is currently experiencing.

The event was also addressed by the President of the Confederação Empresarial do Alto Minho (CEVAL) Luis Ceia, who demonstrated a short video about the main business sectors in Portugal.

Policy advisor to the Maltese Ministry for the Family and Social Solidarity Maria Rauch spoke about AICEP, Portugal’s trade and investment agency. She also mentioned the prominent business sectors in Portugal and the advantages of doing business in Portugal.

Minister for the Economy, Investment and Small Business Dr Christian Cardona delivered the closing remarks. He congratulated the Malta Chamber on this initiative and described Banif Bank as a perfect example of cooperation between

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Launch of Maltese-Portuguese Business Council

APRIL / MAY 2014

Portugal and Malta. Minister Cardona further expressed his hope that Maltese businesses would seize opportunities by reaching out to the Portuguese market.

A number of Portuguese companies attended the launch and exhibited their products and services in the Malta Chamber’s courtyard. One-to-one meetings with Maltese companies were also set up.

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Turkish Ambassador hosted at the Malta Chamber Malta Chamber President David G. Curmi and Director General Kevin J. Borg welcomed H.E. Ayse Sezgin, Ambassador of Turkey at the Malta Chamber on 26th February.

The Ambassador spoke about economic developments in Turkey and Turkish foreign direct investment in Europe, including its investments in Malta. Prospects for joint ventures and participation in Maltese privatisation exercises were discussed, as was the possibility of joint Malta Chamber and Turkish Embassy initiatives such as the creation of a Maltese-Turkish Business Council.

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CC news

04.

Scandinavian Business Forum Malta seminar on leadership in business The Scandinavian Business Forum Malta (SBFM) organised a seminar on Leadership in Business at the Malta Chamber on 13th March. The well-attended seminar opened with a welcome speech by SBFM Chairman Dr Mark Fenech, followed by a presentation by keynote speaker, Christer B. Jansson.

Mr Jansson is a Swedish national with experience as a purchaser, salesperson, sales manager, marketing manager and management consultant. He created BelBin Svenska which focuses on training development in Sweden, Finland, Russia, Malta and Ireland. So far he has trained over 300 trainers throughout Europe.

Mr Jansson spoke about sales call reluctance, a topic which he has studied for many decades. He explained that this is a field of study which pertains to sales managers managing salespersons. He said that the people in business were selling themselves and their organisation in one way or another and the topic was therefore of relevance to all. He proceeded to outline the factors which kept people from reaching out to customers and other contacts, and stressed that these inhibitions are learned over time from other people – very often from the very management that is supposed to promote the organisation.

Mr Jansson also gave the audience a brief test, aimed at identifying to what extent one was suffering from call reluctance. Mr Jansson proceeded to take several questions from the floor about how call reluctance changes geographically and over time.

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04.

The seminar was followed by a networking reception, with food and drink sponsored by Fontanella and Meridiana wines, supplied by S. Rausi.

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Malta Chamber signs Memorandum of Understanding with Abu Dhabi Chamber A cooperation agreement was signed between the Malta Chamber and the Abu Dhabi Chamber in March. The agreement was signed by Malta Chamber Board Member Tonio Casapinta and Director General of the Abu Dhabi Chamber H.E. Mohammed Helal Al Muhairi.

The agreement requires that both sides exchange economic information on investment opportunities and the best practices in serving members and companies as well as exchanging lists of specialised economic exhibitions and conferences due to be held in the Emirate

of Abu Dhabi and the Republic of Malta.

The Abu Dhabi Chamber emphasised the necessity to expand economic, technical and investment cooperation relations between Abu Dhabi and Malta.

The agreement was signed during the course of a meeting of the Maltese delegation headed by Malta’s Minister for the Economy, Investment and Small Businesses Dr Christian Cardona.

First Deputy Chairman of the Abu Dhabi Chamber H.E. Khalfan Saeed Al Kaabi said that Malta was one of the countries with which Abu Dhabi was keen on enhancing business and trade relations, and elevating such relations to new heights was very positive in order to meet the ambitions of both sides. He noted that growing trade figures reflected the friendly relations that were a result of a long-standing history of cooperation between both sides in the areas of trade, business and investment.

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Scandinavian Business Forum hosts Swedish Residents Association AGM at Malta Chamber The Swedish Residents Association in Malta known as ‘Svenskklubben’ held its annual general meeting (AGM) at the Malta Chamber on 25th March. The association was invited to hold its AGM at the Malta Chamber

by Scandinavian Business Forum Malta (SBFM), since the primary objective of the Business Council is to promote and enhance networking between the Maltese business community and Scandinavians in Malta.

Following a brief introduction on the history and functions of SBFM by Chairman Dr Mark Fenech, the Swedish Residents Association proceeded with its AGM. The event was successful in introducing the over 60 members of Svensklubben to Scandinavian Business Forum and the Malta Chamber.

APRIL / MAY 2014

/53 CC news CHAMBER

NEWS

Events & Initiatives

01.

Malta Chamber represented at MCAST Conference by Deputy President Anton Borg “The Malta Chamber stands in full support to create a strong alliance between industry and academia to ultimately provide a powerful engine for innovation and long term growth,” Malta Chamber Deputy President Anton Borg said in a speech he delivered at a conference on fostering collaboration in the knowledge economy, organised by the Malta College of Arts, Science and Technology (MCAST), held on 31st January.

For the Malta Chamber, having industry and academia working in tandem is of utmost importance and the Chamber supports the development of Maltese industry which ultimately enhances Malta’s capacity to build and retain a more resilient and competitive position. In his address, Mr Borg emphasised the Malta Chamber’s firm belief in education as being the most important pillar on which the economy must be built. He stated that enhancing the capabilities of the workforce provides companies with improved sustainability.

Mr Borg explained that in view of Malta’s limited size, the need to acknowledge its particular economic dependence on the quality of its workforce and its ability to adapt in the changing global economic environment is essential. More importantly, skills are crucial for building a high-quality workforce conducive to a productive, innovative and competitive economy. Mr Borg spoke about the existing collaboration between the Malta Chamber and academia, manifesting the Malta Chamber’s strong commitment towards the identification of skills, skill needs and the reduction of skill mismatches.

02.

Linking Enterprise visit at Vodafone Malta As part of its Linking Enterprise programme, the Malta Chamber organised an event at Vodafone Malta in February, focusing on flexible working arrangements, work-life balance measures and changes in the working environment.

The event was held at Vodafone’s recently launched Head Offices at Skyparks.

Participants were welcomed by Malta Chamber Head of Policy Development Andre Fenech and by Head of Human Resources at Vodafone Malta Martin Gregory.

Committee Chairperson Catherine Calleja gave a brief overview of the Committee and explained that the Committee’s foremost objective is to further involve itself in members’ concerns and continuously create initiatives in the best interest of members. This is mainly achieved by raising awareness and disseminating information in areas related to education, human resources, social policy and employment, both at national and European levels.

A detailed presentation on work-life balance measures was then delivered by Mr Gregory who discussed Vodafone’s philosophy and how it allows employees to benefit from working hours that enable them to balance their working life with other priorities, including parental and other caring responsibilities, lifelong learning opportunities, charity work, leisure activities and other interests. Mr Gregory explained how this helps foster a culture where employees felt central to the company’s success story.

Mr Gregory concluded his presentation by explaining how flexible working hours

provide employees with the ability to achieve a reasonable balance between their responsibilities and commitments inside and outside of the work environment. This is believed to positively affect their performance at work and ultimately the success of Vodafone.

03.

LA BORSA – The People, The Building, The History Commerce and Art working hand-in-hand Media release issued on 6th February 2014 Malta Chamber President David G. Curmi presented a copy of the book ‘La Borsa – The People, The Building, The History’ to then President of Malta H.E. Dr George Abela. Members of the Council and La Borsa’s editorial team were also present.

Mr Curmi said that the book is the result of many months of work and that it records the commercial and social history of the Chamber, an analytical appreciation of its collection of portraits and paintings, an architectural study of the building and most importantly the personal memoirs of Past Presidents and others who over the years have worked closely with the Chamber.

Judge Giovanni Bonello, the editor of La Borsa said that the importance of the Malta Chamber is difficult to ignore and that this book is testament to this significance.

Judge Bonello said that usually commerce and art work in parallel. In the case of the Malta Chamber, commerce and art work hand-in-hand and this publication is a record of this collaboration.

The former President was eager to hear and read about the Malta Chamber’s history

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and about its contribution to the economy since its foundation in 1848. He expressed his appreciation of the Malta Chamber as a forward-looking organisation and of its valued contribution to the business community. He spoke about the importance of the Malta Chamber forming part of the business delegation during state visits.

04.

Malta Chamber President attends the launch of the Horizon 2020 programme Malta Chamber President David G. Curmi spoke about the private sector’s needs in research and innovation during a conference entitled ‘A new Horizon, research and innovation opportunities in Malta’.

The conference was organised by the Parliamentary Secretariat for Research and Innovation, Youths and Sport on 7th February and marked the launch of the Horizon 2020 framework programme for research and innovation. EU Commissioner for Research, Innovation and Science, Máire Geoghegan-Quinn was in Malta to address the conference. She urged local SMEs to participate in the new programme which is streamlined to attract more interest from the smaller sized enterprises.

The conference was opened by then Parliamentary Secretary for Research and Innovation, Youth and Sport Dr Stefan Buontempo, and Parliamentary Secretary for the EU Presidency 2017 and EU funds Dr Ian Borg.

Mr Curmi emphasised the importance of innovation with regard to the total R&D expenditure and the number of patents issued. He also focused on Malta’s standing in the latest innovation scoreboard which showed that Malta remained a moderate innovator with a below average performance. Mr Curmi spoke about the need for the country and its Government to think global and attract talent and researchers from both EU and non-EU countries. He also spoke about the importance of access to finance and support for innovative start-ups whilst encouraging further integration between industry and academia.

The conference was also addressed

by EU Commissioner for Health and Consumer Protection, Dr Tonio Borg; MCST Chairman Dr Jeffrey Pullicino Orlando; University Pro-Rector Prof. Richard Muscat; and Secretary General of the European Research Universities league Prof. Kurt Deketelaere, among others.

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focused on the Horizon 2020 programme and the local support initiatives managed by Malta Enterprise, MCST and the University of Malta.

05.

Joint business manifesto launched The Malta Chamber joined other Maltese business organisations to launch a joint document which highlights their priorities and expectations in view of the upcoming European elections. In the presence of a good number of EP candidates, they discussed the focus areas in the document. The need for better dialogue between stakeholders and EPs stood out as a recurrent theme. It remains key for representatives of Maltese business in European fora to point out Malta’s specific circumstance but, at the same time, SMEs ought to draw on the existing opportunities and better exploit the potential of the single market.

Presenting the initiatives being taken at EU level, Dr Joanna Drake, from the European Commission’s DirectorateGeneral for Enterprise and Industry, spoke about the efforts to reduce the regulatory burden on SMEs through a process of simplification of rules. She also referred to funding programmes aimed at promoting entrepreneurship and helping businesses access new markets.

Christian Feustel, from Business Europe, a representative body of enterprises at European level, spoke about the relevance of this year’s European elections, pointing out that every non-voter would be giving a louder voice to extremists. Considering that the choice of the President of the

European Commission will be based on the results of these elections, it is in the interest of all sectors to ensure proper representation, he said.

Former Microsoft Vice-President for Europe John Vassallo spoke about ways small countries can advance their positions in big fora such as the EU institutions. He maintained that small countries have to develop policy according to their realities and propose it to decision-makers, rather than remaining simply reactive.

The manifesto, ‘We’re in business together’, was drawn up jointly by the Malta Chamber of Commerce, Enterprise, and Industry, the Malta Employers’ Association, the Malta Hotels and Restaurants Association, the General Retailers and Traders Union, and the Malta Business Bureau.

The initiative was coordinated by the European Parliament Information Office.

The main focus areas of the manifesto are: • A balance between harmonisation at European level on one hand, where this adds value to the market, and subsidiarity and proportionality on the other hand. Malta's insularity and peripheral position should be acknowledged by European policy-makers.

• Need for smarter regulation, less bureaucracy, and more trust in business as the motor of economy.

• Promote competitiveness and secure economic prosperity through focus on wealth creation, before wealth distribution.

• Face global competition through better human development and skills matching, the strengthening of links between academia and industry, and more investment in research and development.

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• More productive employment and a less regulated labour market which acknowledges adequate employees' rights without discouraging employment.

• A constant and structured dialogue between stakeholders and MEPs is called for to ensure that Maltese business takes an active role in the formulation of EU policy.

Discussion was held in two different panel formations. Malta Chamber President David G. Curmi participated in the first panel and referred to the impact on Maltese industry following the loss of Malta’s Objective 1 status when it comes to EU Structural Funds.

06.

Presentation of wine tasting funds to Caritas The funds collected during the Malta Chamber’s wine tasting evening in October 2013 were presented to Caritas Malta by Malta Chamber President David G. Curmi.

The amount of €2,207 was collected from the ten wine companies participating in the event and from members and their guests.

Mons. Karm Farrugia and Joe Sammut accepted the donation on behalf of Caritas.

They expressed their gratitude not only for the funds but also for the sentiment shown by the business community in recognising the work carried out by Caritas by choosing them as the beneficiaries of this donation. Mr Curmi explained that from its studies the Malta Chamber found that the business community recognised the importance of sharing its business success with charitable organisations.

The wine tasting evening was made possible through the participation of Antonio Piscopo Co Ltd, Cassar Camilleri, Charles Grech & Co Ltd, Farsons Beverage Import Co, Francis Busuttil & Sons (Marketing) Ltd, M Demajo (W & S) Ltd, NM Arrigo Ltd, Red October Co Ltd, S Rausi Trading Ltd and Wembley Stores Co Ltd, and sponsorship from Continental Purchasing Co Ltd, Professional Marketing Services Ltd and Villa Arrigo Ltd.

07.

Malta Chamber President addresses Investing In Malta: Invigorating Investment and Growth conference Malta Chamber President David G. Curmi addressed the Business Roundtable ‘Investing In Malta: Invigorating Investment and Growth’, organised by the Economist Events on 6th and 7th March.

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The high-powered speakers at this two-day event included former EU Commissioner the Rt Hon. Lord Mandelson; former Prime Ministers of Italy Mario Monti and Enrico Letta; CEO of Genel Energy Tony Hayward; Michael Kunz from Electrogas Malta; Gerhard Brenner from Siemens Project Ventures GmbH; David McDonald from Noble Energy International as well as the Prime Minister, Dr Joseph Muscat and a number of Government ministers, the Governor of the Central Bank of Malta together with representatives of leading Maltese business organisations.

Malta Chamber President David G. Curmi addressed the roundtable on the second day of the event and spoke about the Malta Chamber’s economic vision. He said that the Malta Chamber had embarked on an extensive exercise to formulate an economic plan with the help of 20 leading CEOs and the University Rector.

Mr Curmi provided detailed explanations of the seven objectives on which the vision had been based and said that they were aimed at directing the country to “a focused and diversified, successful economy underpinned by a high quality, dynamic, productive and innovative private sector that positions Malta as a global hub for business and investment leading to increased prosperity.”

Concluding his address, Mr Curmi said that an economic vision that delivered a successful economy would also result in increased national prosperity and in social harmony. He said that “prosperity and harmony in turn lead to a stable and welcoming environment which is paramount to successfully attracting foreign direct investment.”

08.

Malta Chamber attends an introductory meeting to set up the MCAST advisory committee The Malta Chamber’s Head of Policy Andre Fenech attended an introductory meeting of the advisory committee between MCAST, industry and trade unions. The meeting was chaired by Evarist Bartolo, Minister of Education and Employment.

Dr Silvio De Bono, President of the Board of Governors, explained that MCAST was embarking on a new vocational strategy which was positioning apprenticeship and work-based learning as an integral part of the students’ development whilst promoting entrepreneurship skills at different levels. He explained the need to further strengthen the present collaboration between the institute and industry. Dr De Bono reiterated that this advisory committee would be facilitating MCAST’s plans in ensuring that vocational programmes and work-based learning activities were in line with industry needs at all times. MCAST Principal Stephen Cachia also noted that MCAST was currently undertaking a pilot initiative to understand better the industry’s needs and skills required. Indeed, the Malta Chamber, through its Pharmaceutical and Financial Services Business Sections, is actively participating in this initiative. Mr Fenech pointed out that employers had been noting for years the deterioration of soft skills also known as transferable skills such as language proficiency, work ethic and communication skills, whilst there was a clear need to focus on employability and for vocational institutes to become more flexible to the industry’s present and future needs.

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09.

When business works better, the country works better Media release issued on 27th March 2014 Whilst addressing the 166th Annual General Meeting of the Malta Chamber, President David G. Curmi said that consolidating the Chamber’s position as the leading and senior private sector representative had been his principal aim since taking over the Presidency in March 2013. This followed from the Malta Chamber’s responsibility and mission which are to safeguard and protect the interests of members and to safeguard the country’s economic interests. This is in line, he said, with the Chamber’s firm belief that when business works better, the country works better and the people are better off.

Mr Curmi provided members with a rundown of the milestones achieved in the last year. These include the launching of the La Borsa publication, winning the first and second prizes in the National Enterprise Support Awards, the successful closing of a CSR project and the launch of new projects including the Middle East and the Portuguese Business Councils.

The President listed the policy positions formulated by the Malta Chamber in the last year which had contributed to the national debate, namely Regional Aid Intensity Guidelines; Proposal for High-Energy Intensive Operators; the Programming of European funds for Malta 2014-2020; the Individual Investor Programme; Waste Management Strategy; Justice Reform White Papers; Early School Leaving Strategy; National Employment Policy; Family Business Act; Healthcare Reform White Paper; Public

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Procurement Simplification; Bank Lending Rates and Budget Consultations.

The President spoke in detail about the Malta Chamber’s views on dialogue with political leaders. He said that from feedback obtained, it was clear that the Chamber and its objective opinions were being held in very high regard. He also gave a brief overview of the Malta Chamber’s Economic Vision document for 2014-2020, its work on internationalisation and the updating of its Industrial Policy. The President mentioned matters which, in the interest of national competitiveness and the private sector, required urgent closure such as Regional Aid Intensity Guidelines, Fiscal and Market Surveillance, and Labour Costs.

In the last year the Malta Chamber had contributed its views on bank lending rates and had argued that, whilst lower

rates of interest on borrowings would be appreciated, lower interest rates could not be agreed to if they posed a threat to the stability of the local banking sector.

The President also reported on the Malta Chamber’s contribution at MCESD level, the Programming of European Funds for Malta 2014-2020 and on the work of the Malta Chamber Foundation.

In conclusion, the President said that Malta required bold decisions to remain competitive and to ensure an even playing field for all economic operators. He said that the Malta Chamber would not support quick-fix solutions which were not in the interest of its economy. “In the next 12 months, we are committed to remain the force impossible to ignore and difficult to challenge,” as we are proud to have been described by Judge Emeritus Giovanni Bonello in his forward to our ‘La Borsa’ publication,” concluded Mr Curmi.

10.

Introduction by Malta Chamber President at meeting between Minister for Energy and Conservation of Water and Malta Chamber members Media release issued on 27th March 2014

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“With the competitiveness of the private sector in mind, we are concerned that energy – in a small, resource-constrained country such as ours – is becoming a limiting barrier for economic growth.” This was declared by President David G. Curmi in his opening address during a meeting for Malta Chamber members with the Minister for Energy and Conservation of Water.

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The Malta Chamber President made the statement in full view of the country’s inherent limitations which precluded it from benefiting from scale economies in the generation and distribution of electricity.

Mr Curmi added that the effects of energy rates on cost-competitiveness cut across the Chamber’s entire membership.

An extensively researched position paper had been prepared on the need to lower the cost of energy for industry beyond the 25 per cent target and before March 2015. The Chamber’s position paper shows that the official rate for industrial users currently

stands at €0.18 per unit, whilst the average rate for the 22 highest energy consuming companies surveyed by the Chamber is €0.16/unit. The proposed reductions are not enough to, at least, equal the €0.09/ unit average rate in the EU28 which, whilst low by local standards, is uncompetitive when compared to an average rate of €0.04/unit available in the United States.

The Chamber also proposed that businesses located in close vicinity of each other should be allowed to undertake bulk buying and joint purchasing of energy.

The proposal is also intended to safeguard

jobs and the future of numerous SMEs. Besides, active measures such as these would show FDI companies that Malta is committed to addressing its rising operating costs.

The President stressed that it was also crucial that flexibility within the overall energy mix is maintained to allow as much sourcing of energy via the interconnector as is necessary from a cost-competitive point of view.

The Minister was invited to the Malta Chamber to address members on the proposed energy plan for Malta.

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NEWS Issues & Positions

01.

The Individual Investor Programme

02.

Radio discussion on competitiveness

The Malta Chamber was pleased to note the agreement reached with the European Commission on the subject of the Individual Investor Programme. The country can now put the controversy behind it and concentrate on other urgent matters for business.

The Malta Chamber took a proactive approach in making its recommendations to both Government and the Opposition.

All its proposals were accepted by both sides and virtually all its ideas were incorporated into the final version of the scheme, thereby rendering it more workable and acceptable. It is pertinent to note that the Malta Chamber only intervened after discussions on the matter had shifted from whether Malta should in principle offer citizenship to non-EU nationals to the actual terms and conditions under which citizenship should be granted.

The Malta Chamber would have been much happier had political consensus been reached and it would also have appreciated a better handling of the matter by Government. This would have avoided the matter being so long drawn out, causing unnecessary reputational damage to the country.

Director General Kevin J. Borg participated in a live RTK discussion programme on 31st January. The topic of the discussion was competitiveness. The programme was presented by Cynthia Zerafa and included the participation of the Director General of the Malta Employers’ Association.

During the programme, Mr Borg explained that competitiveness, in turn, is a function of costs as well as other factors that provide an edge over others, including quality; research, technology, development and technology (RTDI); skills availability; flexibility of the workforce; access to finance and capital/infrastructural endowment. The cost component of competitiveness may be further divided into all components of labour costs such as pensions, COLA and family friendly measures, and non-labour costs such as utility rates, transport, interest rates, fuel prices and rents.

He explained that statistics are showing deterioration in Malta’s cost-competitiveness and that this needed to be addressed. The economic, financial and social environments that Malta operates in are very different from those that were in place only five years ago.

Several competing nations that experienced more devastating effects were emerging into the post-crisis world economy stronger and far more competitive. He said that Malta is placed at a natural disadvantage

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because it is a small, peripheral island state.

Reacting to numerous phone calls during the programme, Mr Borg explained that ensuring Malta’s competitiveness does not necessarily have to come about at the cost of the worker. He said the country could address the situation by enhancing skills, by investing in technology and through increased efforts in research and innovation.

On the costs side, competitiveness could be assisted through the lowering of energy rates and other costs.

03.

Malta Chamber commends decisive action and calls for urgent additional measures Media release issued on 20th February 2014 The Malta Chamber is pleased to note the decisive action taken by Government to uncover the abuse with respect to electricity. Indeed, reports that Enemalta had been losing some €30m a year in revenue from theft of electricity is perturbing. The Chamber is certain that this contributed in no small way to Malta having industrial electricity rates which are the third highest across all EU member states.

Whilst the announced action against abuse is commendable, the Malta Chamber expects Enemalta and Government to implement, with urgency, proper governance and internal control procedures and processes. These are deemed necessary 81

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to curb abuse and enhance efficiency that will lead to a fairer distribution of the cost of electricity generation and distribution in Malta across all users.

04.

Active discussions with the authorities on bank lending rates The Malta Chamber was involved in discussions regarding bank lending rates. President David G. Curmi and Director General Kevin J. Borg met with the President of the Permanent Committee on Economic and Financial Affairs, Silvio Schembri on 21st February and with the Director-General of the Malta Competition and Consumer Affairs Authority on 3rd March. On 19th March, the President participated in the PBS television programme TVAM. The Malta Chamber’s views are that interest rates do not pose a major concern to the vast majority of Malta Chamber members. Whilst members of the Chamber would appreciate lower rates of interest on their borrowing, they would not agree to lower interest rates if this meant any threat to the stability of the local banking sector.

Chamber members are appreciative of the fact that the strength of the banking sector largely contributed to Malta surviving the worst effects of the global financial crisis.

The Chamber highlighted the basic facts and expressed the view that bank lending rates were a complex matter. It insisted that any decision needs to be arrived at after thorough investigation. In the process, a detailed consultation process with the banks must also take place.

05.

Interview by PBS on employment Director General Kevin J. Borg was interviewed by Sergio Mallia for the PBS television programme ‘Focus’.

In the course of the interview, Mr Borg said that job creation is the greatest challenge for any economy.

Competitiveness is essential for the generation of employment and is being eroded by expenses which are rising faster than production. He spoke about the importance of an environment which encourages investment and production costs which compares well with other countries. In particular, Mr Borg referred to electricity rates that do not compare favourably with the rates in other European countries and much less so with the rates paid in the United States.

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04.

Last year, the Malta Chamber presented Government with a study proposing significant reductions in local energy rates and explaining that in order to protect employment, Malta needs to export and that competitiveness is crucial in order to be able to export. Other threats to competitiveness are transport costs which are substantial especially when considering that raw material has to be imported for manufacture and a final product exported. Another threat is posed by changes to EU Regional Aid Intensity guidelines, limiting assistance to investors in large manufacturing concerns, the consequences of which could seriously affect investment in manufacture.

Mr Borg also spoke about the skills mismatch which on the other hand is limiting employment creation opportunities in another manner. This requires focused educational measures. The Malta Chamber is in favour of any initiative which brings academia and business closer ensuring that school leavers and graduates have the right qualifications and skills. He said that the Malta Chamber is in favour of the Employability Index which Government plans to introduce, indicating the possibilities for work according to different courses of study.

06.

Interview for dot.eu Director General Kevin J. Borg was interviewed by Keith Demicoli for the

PBS television programme ‘dot.eu’.

The interview took place after a recent Malta Council for Economic and Social Development meeting with MEPs in which Mr Borg had participated.

Mr Borg said that competitiveness is the collective responsibility of all social partners.

He said that private sector organisations need to ensure that businesses are efficient and innovative, unions have to make sure that workers have the right skills and that these are continuously upgraded whilst Government and the European Union need to enact laws which are conducive to the creation of jobs and growth.

07.

Participation in RTK Programme ‘Dmirijiet u Drittijiet’ – SMEs Head of Sectors Lino Mintoff represented the Malta Chamber in a live radio programme ‘Dmirijiet u Drittijiet’ on RTK which discussed the significance of SMEs in line with the rights and duties of employees.

The discussion focused on the importance of SMEs in the creation of jobs and economic growth, and the impact on employees of the changing economic environment in which SMEs and microenterprises are operating in. There was common agreement on the importance of the role of SMEs and, more so, of micro-enterprises in our economy and that they should be supported to develop further their organisational skills to tap the EU single market opportunities.

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“We have marginalised up to 10,000 adults who may have varying degrees of impairment” – ETC CEO Philip Rizzo The ETC’s ESF-funded new employment training initiative being launched together with sector NGO Inspire is aimed at assisting the integration of persons with disability in the labour market. Martina Said speaks to the Corporation’s CEO, Philip Rizzo, who reveals that only five per cent of the people with disability in Malta are in employment, in contrast with the 50 per cent mark registered in the UK and Ireland.

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iving with a disability, be it intellectual, sensorial or related to mobility, presents its own set of challenges, one of which is the lack of opportunities available to find employment, hindering, as a result, financial independence and career growth.

The proportion of people with a disability enjoying full-time employment in Malta is dismally low, and has been that way for a startlingly long time.

Newly-appointed CEO of the Employment and Training Corporation, Philip Rizzo, who was previously a member of the board of

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directors, has been advocating for the rights of persons with disability for the past three decades, during which time, he reveals, “we have marginalised up to 10,000 adults who may have varying degrees of impairment but who certainly have work abilities both as individuals and as a group.”

“In 2013, only 1,246 such individuals were in employment in Malta, out of a cohort of circa 28,000 persons with disability, of who 17,000 have mere physical or sensorial challenges with no intellectual impairment at all,” Mr Rizzo explains. “This amounts

“The ETC, with ESF Funding, will soon start training an initial group of up to 150 registered unemployed disabled youths. We plan to engage them in the likes of document management, call centre operation, marketing telework, data processing, product assembly and labelling and food snack preparation.”

– ETC CEO Philip Rizzo APRIL / MAY 2014

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Employers have historically not complied with the Quotas Act, and statistics reveal how out of 1,288 employers that employ 20 or more persons, 910 employers (71 per cent) do not employ one single person who is, or was, tagged as a person with disability on the ETC register. In Gozo, 28 employers out of 49 (57 per cent) do not employ any person with impairment. to less than five per cent employment in Malta, compared to around 50 per cent in the UK and Ireland. Worse still, that number of gainfully occupied declined by 15 per cent from the previous total of 1,472 in 2004.”

Mr Rizzo adds that employers have historically not complied with the Quotas Act, and quotes statistics that reveal how out of 1,288 employers that employ 20 or more persons, 910 employers (71 per cent) do not employ one single person who is, or was, tagged as a person with disability on the ETC register. In Gozo, 28 employers out of 49 (57 per cent) do not employ any person with impairment.

“If employers’ associations do not successfully implement self-regulation for the respect of employment legislation – which has been ignored so blatantly since 1969 – then the private sector’s regular media promotion of corporate social responsibility one-day events will be deservedly exposed as no more than publicity stunts,” Mr Rizzo maintains.

He argues that “disabled young persons have never had as many opportunities for paid work in Malta as non-disabled young persons.” The reasons for this are various and mainly not attributable to the disability or impairment of the young persons, he believes, but rather to poor access to valued qualifications such as secondary schoolleaving certificates, poor transitioning into the workforce due to the inexistence of job coaches, overprotection of the family and internal barriers, whereby if a person cannot imagine himself working, he cannot prepare himself for the job.

How, in concrete terms, can the business community, the ETC and Government at large work together to ensure that adults with varying disabilities will be better integrated in our economy and labour market? “The business community must provide either open job opportunities in accordance with the Quotas Act or subcontract work to be undertaken away from the employers’ workplace,” he asserts. “The APRIL / MAY 2014

ETC must provide thorough vocational assessment at age 18 latest and appropriate skills training, and Government at large must finance the future ongoing cost of job coaches, perhaps by retraining some of the more mature 2,500 LSAs. The ESF-funded initiative starting early in May 2014, is predicated precisely on the commitment of each of the three mentioned players.”

This sheltered employment training initiative is a formal institutional partnership between ETC and the Secretariat for Rights of Persons with Disability, together with leading disability educational institution Inspire, as well as other volunteering private sector business organisations. “The ETC, with ESF Funding, will soon start training an initial group of up to 150 registered unemployed disabled youths. We plan to engage them in the likes of document management, call centre operation, marketing telework, data

processing, product assembly and labelling and food snack preparation. During the tenure of this project – the first nine month training period which is financed by ESF – the work will be carried out at no cost to the company,” says Mr Rizzo.

He continues that the medium term aim, after training, is to operate at least two Work Centres, one of which will be in the Msida premises that are already undergoing a major refurbishment. “The overall critical success factor will be regularly inflowing work from the business community as well as from the public sector.”

Why, to his knowledge, are most employers unwilling to employ persons with disability? “As a parent of a young adult with intellectual disability, I understand the wide spectrum which ranges from some with little need for support to a majority who, without constant supervision and support, would not

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DOI – Omar Camilleri

be able to work. The enlightened employers that have recruited persons with disability report genuine satisfaction with both the productivity and the commitment and loyalty attainments of such special employees.”

Norman Mifsud, Chief Officer of Human Resources and Corporate Services at MSV, recounts how, for the past 15 years the company has enjoyed the work and dedication of a team of 14 individuals with various disabilities, allocated by Inspire.

“What started out as a Corporate Social Responsibility initiative, where they would scan, file and do odd jobs, is now more than that, as they form part of our value chain and put their abilities to the task. It is only smart of us employers to find ways to harmonise their different abilities and get more output from them.”

Mr Mifsud explains that the company exploited their potential and got the team to master the company’s entire filing system.

“MSV has around 100,000 active files right now, and they manage all of them: they retrieve, file back, insert papers, scan and handle all renewals, which is bulk processing.

For years, they were only working four hours a day, and we eventually required their work round the clock, so we consulted Inspire and asked for the team to be split into two shifts, one morning and the other afternoon, which they accepted. They have taken pride in their work and have shown a sense of ownership.”

Farsons Group of Companies likewise currently employs six persons with a range of disabilities, some full-timers, others with reduced hours. The company has also utilised the service provided by NGOs, on a support basis, to make available jobs that can be carried out by persons with a disability. John Attard, Employee Relations and Security Manager at Farsons, says that a number of elements are taken into consideration when recruiting individuals with a disability, namely “knowledge of the job and what it entails, knowledge of the core competences and

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skills needed for the person to carry out the job and hence looking for the best fit, and also an analysis of the costs and benefits.

The company professes to be an equal opportunities employer, and hence there are no exceptions for training for any of its employees.”

What obstacles do employers such as Farsons face when presented with the opportunity to employ persons with disability? “I believe long-term versus short-term engagement is one obstacle – employers may assume that there is less flexibility from persons with a disability than others, given that there are limitations,” says Mr Attard. “On the other hand, organisations need to think differently and prepare their infrastructure, including physical space, as job design itself may not be that conducive to engaging persons with a disability. There are limitations that one cannot ignore.”

That said, however, Mr Attard believes that employees look positively at inclusive integration, and while there are many tasks that can be carried out by persons with disability, employees on the other hand give their utmost output.

Dollsy Darmanin, Human Resources Manager at Playmobil Malta, agrees, adding that one major preoccupation of employers is that they must provide supervision and conduct a comprehensive risk assessment to ensure that the place where the employee is conducting his or her work is free from hazard, while also taking into consideration any limitations in relation to their disability.

“We have a unit where there is no use of machinery and the tasks performed vary according to their level of ability,” says Ms Darmanin. “Training and constant guidance and supervision are provided, including feedback on their performance.”As a member of a company that employs a number of persons with disability, Ms Darmanin says that “one of the day-to-day challenges is the fact that the emotional state of people with intellectual or mental disability tends to vary according to issues that might be going on inside or outside the place of work, therefore employees working closely with them must be able to handle such situations. On the other hand, in the majority of experiences so far, the working relationship we’ve had has always been fruitful and positive, both for the company, but especially for them.”

Mr Mifsud of MSV concludes that often enough, all that is required is thinking outside the box, and finding ways for persons with disability to contribute to society. “This situation is a win-win; the company gains, at times even it terms of costs, and finding ways for them to work is the best dignity we can give them. I refuse to mention disability, it is a question of different abilities, and we need to identify what those abilities are.” cc

Employers interested in finding out more about this initiative may contact Maria Bartolo Galea, Department Manager for the Corporation’s Supported Employment Unit, on 2220 1701 or maria.bartolo-galea@gov.mt APRIL / MAY 2014

Food, glorious food From unexpected flavours and novel culinary alternatives to the return of much-loved, traditional favourites, Sarah Micallef discovers what will have you licking your lips in the months to come.

01. Exotic Ice Cream While we all have our personal favourite ice cream flavour, and are sure to have encountered quite the variety of tasty ice creams, they generally tend to be sweet and, well, unsurprising. Not any more, it would appear, as exotic and unusual ice cream flavours seem to be popping up all over the place. Ranging from carrot, green tea and bacon ice cream to goat cheese, lobster and even creamed cod flavours, it seems there is no end to our curiosity when it comes to experimentation!

02. Brazilian Fare The fact that this year’s World Cup tournament is taking place in Brazil may have something to do with the rise in popularity of flavourful Brazilian cuisine.

Starting from Brazil’s national dish called the fejioada completa, which consists of a stew of beans and smoked meats served with rice, sautéed collard greens and topped with farofa, another tasty Brazilian option to try out is the moqueca, comprising seafood stew flavoured with palm oil and coconut milk.

03. Dairy-Free With more and more of us cutting back on dairy and even ditching it altogether, it’s no surprise that the number of milk alternatives available, even within local

supermarkets, is on the rise. Among the wide variety of plant-based, dairy-free products are pea and hemp protein powder, as well as varieties of yoghurt and ice cream using coconut and almond milk. The majority of milk substitutes feature options made from nuts (such as almond and hazelnut), seeds (like hemp, sunflower and flax) and whole grains (including oat, brown rice and quinoa), making it easier than ever to go dairy-free.

FOOD&WINE 01.

04. Posh Popcorn Microwaveable popcorn and traditional, pre-popped bags of popcorn featuring numerous ingredients which many of us would have a hard time pronouncing are falling out of favour. Replacing them is the good old simple stuff, which even in prepopped variants, comes with minimal added ingredients. The beauty is in the simplicity, which is elevated by fancy ingredients like organic coconut oil and pink Himalayan salt. Popcorn’s never been quite so posh.

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05. Smoked Food The new flavour experience of the year is looking likely to be smoked food, and with summer round the corner and barbeque season so close, our taste buds are already tingling. Aside from the wide variety of smoked meats you can try, why not go for something new like tasty smoked cheese or jalapeno peppers? They’re sure to introduce a tasty new edge to many a dish.

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06. Amuse Bouche Gone are the days of the amuse bouche only being available in the fanciest of restaurants.

Chefs in numerous eateries are embracing this food trend as the perfect excuse to show off their culinary talents in a bite-sized taster.

Referred to as ‘bonus bites’ between courses, they serve as a taste of things to come, and can even introduce you to a flavour you would have otherwise never considered. cc

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The complexity of simplicity Having been likened to a fort and a substation, this residential villa by Grech & Vinci Architecture & Design poses a relatively new concept within the Maltese architectural landscape. Sarah Micallef speaks to the team behind the minimalist building reminiscent of Spanish and Portuguese design, and discovers that simple doesn’t always mean easy.

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“A home is a place where you should feel safe and comfortable, and I think we managed to create that. Like a fortress or a castle, it protects the people inside. This is a modern day version.”

Photos by Christian Sant Fournier

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oming across this villa in Ta’ l-Ibraġ, with its minimal design and largely windowless façade, flanked as it is by blocks of apartments, you’d be forgiven for thinking it looked a little alien. Having been called everything from a fort to a substation, Simon Grech, Andrew Vinci and Alan Galea, the team behind the imposing building at Grech & Vinci Architecture & Design admit that the villa presents a relatively new concept for architecture locally, and whatever your impressions might be, may serve to surprise you.

“Opposite to what it looks like on the outside,” says Alan Galea, “it’s extremely open once you walk in. From the outside it looks very solid but from the inside it’s the opposite.”

Andrew Vinci explains that the client’s brief was to have a space that is ideal for entertaining with an emphasis on privacy.

“The house is surrounded by four storey apartments that overlook it. Our client likes to entertain but at the same time wanted her privacy. The brief was for her to have an easy space with everything at hand, but also have this very solid house which is, at the same time, very well lit,” he asserts.

Speaking of the lack of apertures, he goes on to explain that aside from achieving the modern and minimalist effect both the design team and client were after, the choice was also a result of the surroundings.

Andrew states that in this context, windows were unnecessary because “there weren’t really any views to look out at,” and explains the team’s alternative method of bringing in light: “people imagine it is a very dark building. The use of a skylight, double height in the beginning, and the rooms upstairs

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which have their own private yards, bring in light. The client wanted it to be modern and minimalist, so it made sense to make this a very minimalist and closed up building, which you could enjoy the spaces and the volumes of from within. It is very inward looking.”

The house is laid out in three layers. The basement comprises a games room and a gym leading out onto the front garden. A stairwell comes up from the garage and leads into the side garden and pool. The ground floor, on which the client wanted everything within reach, includes an open-plan kitchen/ living/dining, pantry, guest toilet and master bedroom. There are then two bedrooms connected by a bridge, each with their own ensuite and courtyard upstairs, which look onto a double height. A skylight runs through the top, creating ambient light.

“From the outside, it’s very private, but from the inside there isn’t a progression of spaces like for example a hall going into another room, and so on – it is all open,” Andrew says.

Another important aspect of the design was the client’s dogs. “The couple that lives here have three westies and two Yorkshire terriers, and they were actually a very important element. The client wanted to make sure that they could access the entire ground floor – in fact there is a dog pen and one of the slit windows has a small door from which they could slip out and the client could control where the dogs would be.” This also had an impact on the materials they could use, Alan laughs, “it affected our choice of materials for the floor – we had to test materials to make sure they wouldn’t stain!”

Gaining inspiration from Spanish and Portuguese architecture, the team at

Grech & Vinci designed the space with a modernist aesthetic in mind, and while admitting the style is relatively new to the Maltese islands, believe that it is a natural fit.

Andrew maintains, “some of our favourite architects are Spanish and Portuguese architects who come from the same band of the world, and their architecture responds very much to the most beautiful thing we have on our island, which is the sun, as well as the play with simple shapes and volumes.

I personally can’t understand why a lot of design locally hasn’t gone down the same road – creating simple, minimalist buildings that respond to the solar power that we have.”

Looking back at the planning process, the architects confide that they were frequently met with scepticism regarding the simple, windowless design. They even had comments at design stage suggesting it was “a bit plain”, they laugh.

Despite this, Simon Grech ventures, “in effect, it is very close to our vernacular architecture, which is the simple farmhouse – featuring simple volumes and bringing light into the space through courtyards, high volumes and thick walls.” In this sense, one could describe it as a modern take on the traditional Maltese farmhouse. Andrew seconds this view, asserting, “one of my lecturers who has just recently passed away always used to tell us – though I didn’t see it that way at the time – to go out and look at old Maltese farmhouses. Years later, I think he was right.”

As the team knows only too well however, despite its perceived simplicity, as they go on to state, “simple isn’t always easy.” Alan maintains, “people tend to see a white box, but it’s much more than that. There was a 91

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“People tend to see a white box, but it’s much more than that. There was a lengthy thought process to the design.”

lengthy thought process to the design.”

Andrew goes on to expand on the different thought processes involved at design stage of the deceptively complex villa, explaining, “the building is very site specific. It is responsive to the need for privacy, and despite the fact that it looks simple, there were a lot of considerations, like how the sun would enter throughout the day, creating a breakfast side and a dinner or entertainment side, so to speak; the orientation and the location of the courtyards of the bedrooms and the skylight were all studied to bring in certain kinds of light at different times of the day.”

Simon chimes in, “it plays a bit of a trick on people. When they see the building, they tend to expect something very closed and claustrophobic, but then it is the complete opposite when you actually go in and experience it. It was the concept we had started out with in the beginning, and I think we were quite successful with that.”

Achieving a project of this sort also takes a certain kind of client, the team confesses, maintaining that they were lucky enough to be allowed to carry out their initial vision.

“She trusted us a lot. She would even ask, up till the very end, whether we could put a window in the front, and I’d say ‘why would you want to put a window on the north side of this building when the only thing you’re APRIL / MAY 2014

going to look at is a block of flats in front of you?’ to which she’d have to agree. Let’s just say you don’t get many buildings of this sort in Malta,” Andrew states.

He goes on to mention another particularity of the villa: the absence of a washroom. “One thing we asked the client to omit from the building was a washroom.

Clients usually want to build to the maximum, so we pleaded with her to keep it a nice, clean box. She was very happy with that

as she likes everything at hand, so her washroom and utility area is in the pantry, just behind the kitchen. This way we could have a skylight running across the roof, without being shaded at any point of the day.”

When it came to choice of materials, the team stuck to a simple palette, and kept it as raw as possible in order to achieve somewhat of an industrial feel. Alan explains, “materials included exposed concrete, white plaster, perforated steel for railings and stairs, and oriented strand board (OSB) for a wooden texture. The structure was all thought out and incorporated into the design of the interior, not to be covered up later. You can read the building as soon as you go into it.”

Associating it with the modernist architectural movement owing to the fact that form follows function, Andrew discusses how the team balanced aesthetic appeal with practical usage of space within this unique building, maintaining, “it was very much planned strongly around our client’s programme of how she wanted everything laid out. The aesthetic followed that. They’re tied together.”

“The structure was all thought out and incorporated into the design of the interior, not to be covered up later. You can read the building as soon as you go into it.”

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“It plays a bit of a trick on people. When they see the building, they tend to expect something very closed and claustrophobic, but then it is the complete opposite when you actually go in and experience it.”

Simon goes on to liken it to a fortress or a castle, protecting the people within: “the starting point was a building without windows. Of course, we did puncture the façade, but I think we got very close to that first idea. You are creating a space which is yours and is as uncontaminated as possible. You forget what is around you. A home is a place where you should feel safe and comfortable, and I think we managed to create that. Like a fortress or a castle, it protects the people inside. This is a modern day version.”

And that’s not all. The light-hearted trio also jokes that it’s interactive, too. Alan recalls, “I recently had a funny comment from someone who just bought a flat opposite it. He said now when there’s the World Cup, he can project the games onto it from the balcony!”

Jokes aside, despite the challenges it posed on the way, they maintain that they are pleased with the way the project materialised, even gaining recognition abroad. “It is nice that it was acknowledged on an international spectrum, having been featured on a number of well-known design sites side by side with our favourite architects,” says Simon.

As for the future, the team has one focus: to continue creating “buildings that work, that are simple, and that people can relate to and enjoy.” With construction having slowed down considerably, there are fewer new builds and a greater focus on remodelling work. Andrew, Simon and Alan maintain that many of their future projects lean toward interiors and remodelling of existing buildings, but are hesitant to state a personal preference, explaining that each has its own benefits.

Simon maintains, “I’m quite keen on renovating old buildings and adding extensions to them. They propose problems which you have to solve and work around.

Our approach is respecting what there was 94

of quality and introducing something modern that talks about a time, that is worthy too.”

Alan chips in, stating, “they’re two totally different approaches. When you walk into an older place you pick up on what was left by the previous architect, and try to respect that and build on it; whereas with a new build you’ve got more freedom, in a sense.”

According to Simon, it’s all about context.

“For every project, you have to understand your context: your environment, who you’re building for and so on. Renovating an old building is creating a complex context, and that’s what I find interesting,” he says. As for new builds, Alan maintains, “new is beautiful when you see a complete creation of your own taking shape. It’s a really nice feeling to see the finished product.” cc APRIL / MAY 2014

Finishing Touches

From technological solutions to quirky touches for your office, home or outfit, this is our selection of your complete musthaves for a new season of style.

01. Brand ‘You’ In an age where it’s so much quicker and easier to exchange contact details on email, is there still a role out there for business cards? We think so! After all, they are so much more than your contacts; they’re a mini representation of your company. The quirkier the better, the more original then the more memorable. Just like these examples!

02. Paperless Paper As the world moves to reduce its paper usage, tablets are helping to make that a reality. And this latest addition, the Sony Digital Paper, is ideal. Its 13.3-inch screen can display full-page docs in PDF format, while the stylus enables you to write and erase on the device itself. You can also share, annotate and save all the documents you and your coworkers are collaborating on.

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04. Travel in Style Lightness has never been so secure. Security has never been so light. Samsonite® has recently launched LITE-LOCKED™, the pioneering light-weight collection that merges two key features deeply embedded in Samsonite’s brand DNA: a three-point locking system and the revolutionary CURV® material, exclusive to Samsonite in the luggage arena.

For further information contact Samsonite on T: 2202 1401 or E: samsonitemalta@ vfgmalta.com. Samsonite Malta, Arrival/ Departure Halls, Malta International Airport, Luqa. Open Mon-Sun 8am-8pm.

And if you’ve lost your luggage call or SMS the SAMSONITE Malta 24/7 customer line on M: 9996 9172.

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05. For The Wine Connoisseur There are so many different glasses used to accentuate the flavours of different wines, that it’s almost impossible to own them all. Enter the ‘Doublet’ by designer Stefan Burlacu. Elegantly-shaped, this innovative set of glasses can be used for white wine on one side and red on the other.

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06. Mobile Bling

03. The Shoe For You 3D printing is making ‘bespoke’ much more achievable. So much so, that designer brand Prada recently offered its top clients the chance to order custom-made shoes through its Sloane Street store.

Customers could choose the shoe style, heel height, sole colour and whether or not to add their initials. Custom chic!

For when only the most luxurious is good enough, jewellery dynasty Buccellati has released the world’s most expensive cases for smart phones and tablets.

Retailing at over €250,000, these one-of-a-kind designs are inspired by Leonardo da Vinci’s solar illustrations, and covered in real gold and diamonds.

07. Canine Luxe If it’s take-your-dog-to-work-day or if your ‘man’s best friend’ only deserves the best, then the trend for extravagant pet furniture is sure to suit. We love these two examples by Dogghaus – not least because they’re made out of steam-bent zebra wood, leather and white gold! cc

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CC BUSINESS

A helping hand for your business The modern business environment is more complex than ever. Here Jo Caruana assesses the challenges of that, as well as the range of services available to help ensure you make a success of it.

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he days of ‘muddle through’ business are long gone. Today the vast and complex challenges faced by even the smallest of businesses means that we have to reach out to those with the knowledge we need.

But the good news is that the right people are available and ready to help; everything from growth advice for micro-enterprises to tax guidance for multinationals can be provided by teams of experts specifically specialised in that key area.

“As time progresses and the business world continues to become more and more complex, it becomes a must that business owners turn to professional business advisors to assist them in taking the right decisions for their company,” explains Wlliam Spiteri Bailey, managing partner at Spiteri Bailey & Co. “Now family businesses have also started to hire professional business experts to sit on their board of directors or to be advisors to their boards. This is of utmost importance in today’s globalised world, where the opening of the European market has substantially increased the challenges and opportunities for Maltese businesses.”

Of course there is a huge range of companies that may require business advisory input.

“Similar to an individual who seeks medical advice according to the ailment that needs to be addressed, within the business world the nature and extent of business advice required depends on where the business wishes to go or what issues it faces,” explains David Pace, Director within the Transactions and Restructuring function at KPMG. “Size is thus not a definite determinant in this respect. A large firm may well have an in-house dedicated team covering areas for which a smaller firm would benefit from access to such advisory capacity.

“So, in deciding whether or not to reach out for outside assistance, a business may consider the risks and impact of a poor judgement call or execution, though unfortunately even here the lack of knowledge in certain cases may inhibit a business from truly appreciating the potential negative consequences or missed opportunities. The best way forward may well be having a scoping discussion with your advisor and then deliberating on the need for such input,” he explains.

Of course there are specific requirements for every case. For instance, I ask what, in concrete terms, a business advisor or a business and management advisory firm would bring to the table of a typical Maltese company that employs less

“In striving to reach a high share of the domestic market, an adviser can help to improve the product mix and conduct a survey by telephone or one-to-one short interviews to ascertain the customer’s appetite for new products.”

– PKF Malta senior partner, George Mangion 98

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“The right business advisor really could make all the difference to the success of your venture.”

– Spiteri Bailey & Co Managing Partner, Wlliam Spiteri Bailey

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“The nature and extent of business advice required depends on where the business wishes to go or what issues it faces.”

– KPMG Director, Transactions and Restructuring, David Pace

than ten people and generates revenue of less than €1 million?

“There are many aspects that advisors can contribute to small or micro companies,” details PKF Malta senior partner George Mangion. “To start with, a lot depends on whether the firm is based on sales to the domestic or export market.

“In striving to reach a high share of the domestic market, an adviser can help to improve the product mix and conduct a survey by telephone or one-to-one short interviews to ascertain the customer’s appetite for new products. Thus they can arrive at a scientific basis on how to tailor the mix of products for sale with a view to maximise market share (or even to sustain it if it is almost at a monopolitic level).

“Other services can be in adequate training for the ten staff at the various levels of employment to improve efficiency, effectiveness and attain higher economic use of resources. The marketing of products or services also needs to be revisited and updated to match changing customer trends in both content and external packaging,” Mr Mangion advises.

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Naturally start-ups can also benefit extensively from this kind of service. “The resource limitations faced by start-up businesses mean that they have limited margins for error,” says Mr Pace, while adding that business planning and quality multi-disciplinary advice enhances these companies’ ability to get it right the first time.

“In addition, advisory input at an earlier stage may enable the start-up to become aware of options that could be open to it.

Smarter decision-making at the earlier stages could well steer the business on the path of true success.”

Specifically speaking, Malta Enterprise has been offering help to start-ups by providing the service of business mentors to guide young entrepreneurs up the slippery slopes.

“These kinds of services can be so useful,” says Mr Mangion. “For instance, they can also design a business plan for the start-up based on a number of possible scenarios, so as to give them a better indication of the resources necessary to build up a successful business. This could include seed capital, technical know-how,

human resource requirements and the appropriate immovable and plant required to achieve the best results,” he says.

“Meanwhile, in the case of a venture capital application, the advisor may be the link to speak on behalf of the applicant to pave the way for the necessary documentation – such as valuation of the business and the exit strategy when the business grows and it is time to buy back the shares or loans.”

Finally I ask how a business advisor should be chosen and what route to take when considering getting help.

“It is all based on the company’s particular needs,” asserts Mr Spiteri Bailey. “It is not enough to hire a business advisor based on friendship or cost. If a businessman, company or a group of companies require the services of a professional business advisor they need to base their choice on the knowledge and expertise of the professional in the area they require assistance in, on their availability and on the input that would be given as time progresses. The right person really could make all the difference to the success of your venture,” he adds. cc APRIL / MAY 2014

CC MEET THE ARTIST

Portrait of an artist Raymond Pitrè’s life as an artist is as colourful and complex as his latest exhibition of works, titled Documentary. Martina Said meets the artist, whose diverse portfolio and artistic career are nothing short of impressive.

Photo by Lionel Galea

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fter a hurried handshake and brief exchange of introductions, it becomes rather clear that artist Raymond Pitrè is a complex and exceptionally knowledgeable individual. He is an artist, but also harbours a love for poetry, literature, philosophy and music, made evident by his manner of conversation and even more so by the piles of books occupying every corner of his living room. He appears to struggle with translating his thoughts into spoken words, yet unleashes them with full force through the medium that is his art. And for years, that is precisely what he’s been doing.

Pitrè was born in December 1940 during an air raid, in a house his family took refuge 102

in during the war. His father was a linguist and his mother a pianist, and he says his upbringing was a tense and difficult one.

His relationship with his father was strained and he easily admits that he never loved his father the way he did his mother, which certainly came to influence his art later on in life.

“I disliked school completely, had a phobia of it in fact and couldn’t stand the classroom.

When I was around five years old, I drew the Stations of the Cross from my mind, while my classmates were drawing matchstick figures,” he recounts. Pitrè’s surrealist ambition began to surface as young as 13 with The Chaotic Town, after which he continued to explore his interest in contemporary art. However,

he rebelled against school and for a long time felt the need to break out in reaction to the insecurity he sustained during those years. “Between 1954 and 1960, I introduced surrealist art into Malta.” He was also the first local kinetic artist, whereby art is created from any medium that contains movement perceivable by the viewer, or which depends on motion for its effect.

His first public display of surrealist art was one he titled The Mystic Return of St Paul, which he entered into an exhibition that was to be held in 1960. However, the work was refused. It was a huge disappointment for him, and considered that he was too advanced for the panel to appreciate the work back then. “I tore it up after that,” APRIL / MAY 2014

Photo by Lionel Cassola

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Photo by Lionel Galea

he says. Pitrè began suffering from severe depression and for a short while, he found solace in a Capuchin convent – “when I left the convent, I found myself neither here nor there, which is when, in 1962, I produced the first Scream of The Scream series.”

His works are fascinating yet startling, beautiful but often frightening. He drew a lot of inspiration from the old masters, particularly the drawings of Da Vinci and the works of Albrecht Durer, Hieronymus Bosch, El Greco and Goya. It wasn’t until later in the

“Between 1954 and 1960, I introduced surrealist art into Malta.”

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Triumph of Death, 1986, mixed medium on board

“Had I not painted Mintoff in 1973, I wouldn’t have moved from where I was.”

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70s that he fully explored The Scream series, translating the theme through a series of paintings. But surrealist work isn’t the only style Pitrè excelled in. He joined the police force in 1963, a decision primarily based on the need for financial stability. Soon after, he

met his future wife, Franca Serra, and the two got married in her native Sicily. They went on to have two children, Daniele and Cinzia.

His time in the police force was not a particularly happy one, he says, but an unexpected stroke of luck came his way in the early 70s. “During my time in the police force, I was completely apolitical, but the Police Commissioner at the time asked me, in 1973, to paint then Prime Minister Dom Mintoff, and that put me on the map. The party in opposition also noticed my work and commissioned me to paint the first president of Malta, Sir Anthony Mamo. I left the police force in 1975, on medical grounds, and have been a freelance artist ever since.”

Around the time he left the police force, Pitrè began working on another series of paintings inspired by The Scream, called Triumph of Death, which proved to be even more dramatic than the previous series, charged with loud colours and gestures, paint applied thickly and with vigour. This series was shortly followed by a third series, which took key stylistic elements of the previous two series and merged them. All this came to influence his very latest exhibition, Documentary – which was on display between January and March at Palazzo De Piro in Mdina – the original idea of which was conceived in the mid-60s and picked up again over four decades later. Why did he let the idea go back then? “It felt as if I was running a marathon, you get tired all of a sudden, and you say you’ll pick it up another day. You get tired of it, or it gets tired of you,” he shrugs. “I don’t know.”

The concept revolved around a series of screams, which transformed from the identifiable human mouth depicting a scream to a narrower slit, depicting a woman’s genitalia. He says the completion of the latest works was the end result of months of very hard work, “in which a riot of colours was orchestrated. None of these works is abstract, but all pivot on the multi-layered

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Photo by Lionel Cassola

“The last exhibition was a milestone for me – from the feedback I received, I was told there was never an exhibition like it on the island.”

overlay of the human creative process.”

A collection of around 42 drawings displayed at the exhibition show “how it all starts from a doodle. You can see the process of growth of the idea: it starts germinating inside the brain and keeps on evolving.

Drawing is instinctive to me.”

Pitrè used thick watercolour paper, glue and hard board, and encased everything in China wood covered with mirrors. “I got the idea of the mirrors from the silver wrapping of a box of pills years back, which got me thinking. It was a good idea, but it was expensive and I didn’t have the money,” he explains. “However, I just had to have the mirror, without the mirror it would be nonsense. When you look at the mirror, you see yourself, but if there’s the work between you and the mirror, you see yourself in the mirror, in the work – and that is something new in art. At the end of the day, it is all about the surprise. Without the surprise, you have nothing.”

Between 1976 and 1978, he held three one-man exhibitions, one every year. He later got two prominent church commissions: the cupola of St Joseph’s Parish Church in Msida and Stella Maris in Sliema. I ask Pitrè to recall a few instances in his life that he considers to be momentous. He gives it a few solid minutes of thought – “taking part in the Venice Biennale in 1991 was incredible; it is probably the best international show on earth. And, had I not painted Mintoff in 1973, I wouldn’t have moved from where I was. But 106

Photo by Lionel Galea

Scream series, 1964, Oil on board

“Art is a mistress, the most jealous of mistresses and it wouldn’t let you free if it is true art. If not, you’re just a dabbler or a Sunday painter.”

I think the last exhibition was a milestone for me – from the feedback I received, I was told there was never an exhibition like it on the island.”

“I’m 73 years old,” he says, “and these last three months, I’ve been happy. I suffer from sadness a lot, I’m always alone, but that’s life. Perhaps it’s personal.” I ask if he plans to

organise another exhibition sometime in the near future – “yes, you have to plan and push on from what you’ve already done. You have to surprise. When one is married to art...” he trails off. “Art is a mistress, the most jealous of mistresses and it wouldn’t let you free if it is true art. If not, you’re just a dabbler or a Sunday painter.” cc APRIL / MAY 2014

CC information technology

The move to the Cloud More and more businesses are choosing to make the switch from tangible servers to hosted storage in the ‘Cloud’.

Why? Here Jo Caruana questions the experts to find out everything you need to know before making the move.

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eta. Back-end. Cross-platform.

Scalability. Web 2.0. These days, if your business is even remotely linked to technology (and, let’s face it, whose isn’t?) then you’re going to be faced with a plethora of industry-related buzzwords on an almost daily basis.

One of the most important terms to emerge recently is ‘the Cloud’, and the need to ‘move to it’. And, while that may seem a little daunting to begin with, the truth is that the Cloud is simply a reference to the word ‘internet’ and what you can store on it. “‘Cloud’ is used in the context of users gaining access to certain services, programmes and data that are hosted in shared data centres, via the internet,” explains Curt Gauci, Director and Cofounder of Kinetix IT Solutions, a local leading IT systems integrator. “So, in essence, thanks to the Cloud, an organisation can now move certain services, programmes and data outside of its firewall and computing resources, and place them safely in the hands of third parties. This is paid for on either a monthly, per-user or per-use basis.”

Jack Mizzi, CMO from Malta’s leading data centre and Cloud services provider BMIT Ltd, explains further: “there are multiple definitions of ‘Cloud’,” he says.

“One way to look at it is as a term used for anything that involves delivering hosted services or applications over the internet.

The more common categories, though, are infrastructure services (such as computing power), servers, backup services and software services (such as hosted email, collaboration tools, communication and business applications).”

Mr Mizzi explains that the Cloud is of interest to business owners for both technical and commercial reasons.

“For starters, these services are usually sold on demand, and on a pay-per-use basis that means the business in question need not

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invest in its own infrastructure.

“Additionally, it is elastic and scalable, meaning that a user can have as much or as little of a service as they want, at any given time, and can also grow or decrease services as required.

“Finally, these services are fully managed by the Cloud provider, with the user needing nothing but a computer and internet access.

This, of course, makes this very convenient.”

As a result of these benefits, it seems that the Cloud has been gaining momentum in Malta over the last few months. “There is still some catching up to do,” continues Mr Gauci, “but this option is proving especially popular for communications-related workloads.

“As a company, we have already assisted a number of customers in setting up public, private and hybrid Cloud environments. We have also helped them to migrate certain workloads to the Cloud, including the creation of an Office365 platform which, on completion, will host over 2,200 users around the globe.”

Meanwhile, as Mr Mizzi goes on to explain, the particular Cloud-related needs of any business often depend on their IT requirements – whether internal or customer facing.

“Through the assistance and with advice from specialised providers such as BMIT, these needs are then transformed into a solution that addresses the requirements in a personalised and cost-effective way,” he explains. “This is further facilitated through offering services via BMIT’s own Cloud platform, deployed within its data

“‘Cloud’ is used in the context of users gaining access to certain services, programmes and data that are hosted in shared data centres, via the internet.”

– Kinetix IT Solutions Director, Curt Gauci

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CC information technology

“Cloud services are usually sold on demand, and on a payper-use basis that means the business in question need not invest in its own infrastructure.”

– BMIT Ltd CMO, Jack Mizzi

centres, and therefore providing further data protection and security when compared to a Cloud provider which cannot provide guarantee on location of the services.”

“Of course there is no ‘one-size-fits-all’ solution. Depending on the nature of the current set-up, the ‘process to switch’ involves the preparation of the new set-up, a detailed plan to securely transfer data, measures to minimise the impact of such migration on users, and a full set of tests to ensure that the switch has been successful.

In cases where a hybrid solution has been adopted, the integration to other IT systems is also factored in as part of this switch.”

“Naturally, some customers know exactly what they want, so our role is to provide the service based on that customer’s requirements and any support it requires, while, for others, we handle every step involved in designing, setting up and managing the system. After the system is installed, we offer round-the-clock support to our clients.”

And, despite sounding complicated to most of us, there are several local success stories already out there – and we can expect many more.

“A recent customer of BMIT switched from a server-based email set-up, situated in his office, to a hosted exchange set-up over our Cloud infrastructure that simplifies email, contacts and calendar management,” says Mr Mizzi. “Following this switch, this business is actively considering switching other 110

services on to us, starting from backup.

“This is clear proof that they have tangibly experienced the benefits of switching to a Cloud set-up, and many other local companies could easily do the same,” he adds.

Considering the Cloud?

If you’re thinking of moving your data into the Cloud, consider these expert tips first: “Don’t go with the flow and don’t get caught up by the buzzwords,” says Mr Gauci. “Assess your requirements and understand the opportunities (and the risks) that come with the technology in question, before buying into it. If and when you do

decide to adopt the technology, cover your bases – assess, plan wisely and implement effectively – especially as you may be touching on workloads that are critical to the success of your business.”

“Ensure that the company you are entrusting your data with is a reputable organisation, that it provides you with clear information as to where your data is residing and that it is one which you can easily contact in case of assistance or support requirements,” adds Mr Mizzi. “Compliance with certifications such ISO27001 in information security management and PCI-DSS standards is another definite plus.” cc

APRIL / MAY 2014

CC make the headlines

ICT solutions for businesses

By SG Solutions Senior Manager Ing. Kenneth Bowman

SG Solutions has been a leading ICT solutions provider for the past ten years.

How has the company changed over the years?

Since its set-up in 2004 SG Solutions has gone from strength to strength. We have since opened three iCentre outlets in Sliema, Pieta and Birkirkara – concept shops entirely dedicated to Apple, and we are the only Apple Premium resellers in Malta. We have also expanded our business, focusing on our core brands, namely EMC, Ingenico and Ricoh.

What is your role within SG Solutions and what solutions does your team provide?

I form part of the Enterprise Solutions Business Unit within SG Solutions, responsible mainly for the business development and presales aspects of the sales cycle. Enterprise solutions, as the name implies, provides ICT solutions for SG Solutions’ corporate customers, focusing particularly on storage solutions, backup and recovery solutions, and document management. We have partnered with major players in the area, notably EMC, VMware, Cisco and Oracle to provide premium solutions to our clients. Our focus is to provide the right solution to meet specific customer needs.

What are the main ICT challenges faced by your customers today, and how do you help them address these challenges?

Although our customers are diverse in size and sector, the ICT challenges they face are very similar. ICT has become an integral part of the business operation. At the same time IT budgets are shrinking as businesses strive for profitability. The costs incurred due to systems

downtime however can be significant. Within this constraint we need to provide smarter solutions that enable business to reduce costs whilst safeguarding their data.

With virtualisation, for example, we can consolidate dozens of servers into two or three servers, reducing overall power consumption and administration costs. At the same time we enable business to achieve high availability across their core systems. What was once the domain of large organisations with huge budgets is now affordable to small and medium sized companies.

The biggest challenges we see many companies facing are in data protection and disaster recovery. Until recently many companies relied solely on traditional tapebased backup solutions. This approach has its benefits but also several major limitations, particularly with regards to reliability, data integrity and backup windows.

Our backup and recovery solutions are based on EMC’s industry leading EMC Networker and EMC DataDomain systems.

EMC are the market leaders in this sector, with over 65 per cent market share worldwide. Our products are scalable and cater for small businesses with 1-2TB of data to larger organisations with more than a PB of data. In each case we provide the same level of reliability, performance and functionality. Our DataDomain systems also enable us to replicate backup data securely across low bandwidth internet connections, enabling customers to secure their data offsite without the additional costs and hassles associated with transporting tapes.

In what other ways do you help your customers reduce their costs?

Without doubt the largest portion of a company’s ICT budget is spent on personnel.

A medium sized business needs an ICT department with a variety of skills such as ERP, databases, networks, servers, storage and backup. The reality is that good administrators cost money and need to be kept up-to-date with current technologies.

We have started to address these issues by offering a total managed service approach to our customers. We have invested heavily in support specialists with a wide range of skills to support our customers with support and maintenance agreements. As a consequence we expanded our services to assist our customers in their daily administrative tasks,

such as monitoring of their systems, day-today administration and recovery processes when required.

What is your take on the Cloud services?

Are your customers making the transition to the Cloud?

Definitely more businesses are making the transition to the Cloud. We have seen this with businesses of all sizes around the world moving parts or all of the systems to Amazon, Rackspace, etc. The biggest issue I see in the local market is the associated connectivity costs. These are still relatively high and are probably one of the main barriers to migrating to the Cloud. Having said that, we are seeing more and more of our customers beginning to look towards the Cloud as an opportunity to reduce their ICT costs. We have responded to their requests and have invested in our own Cloud infrastructure and hosting services. This will be officially launched as plumcloud.com in the next few weeks. We can provide various Cloud services such as email hosting, virtual private servers, Cloud backup services, etc. The latter has proved to be extremely beneficial for our customers as it allows them to maintain an offsite backup of their data, without the need to invest in DR environments. cc

SG Solutions

Ing. Kenneth Bowman is Senior Manager Business Development at SG Solutions.

For further enquiries contact us on T: 2256 4300 or E: kennethbowman@sgsolutions.com.mt

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APRIL / MAY 2014

Tech Review Technology around us is forever changing and evolving, and each time the next big thing comes along, it is bigger and better than its predecessor.

Martina Said rounds up some of the hottest tech trends on the market.

01. 3D Printing 3D printing is revolutionising the manufacturing industry and beyond. The technology is a step further from spraying ink onto paper, and involves putting down layers of a substance, such as plastic resin, until it adds up to form an object, enabling a machine to produce objects of any shape or size, on the spot. 3D printers can create anything from plastics to food and even human tissue. A prosthetic match, for instance, could be created for a limb using digital design, which is a giant leap for healthcare and revolutionary for the medical industry. This may possibly be one of the most remarkable technological advancements this century, and there is reason enough to believe that there are no limits on what 3D printing can achieve.

GADGETS

03. Nike+ Fuelband Nike is helping users track their physical activity with its latest Nike+ Fuelband, while also tracking the amount of steps taken daily and the amount of calories burned.

The data collected on the wristband is added to the Nike+ online community and phone app, allowing users to set their own goals and keep track of their progress. The app’s interface is based entirely on the Fuel point system, which quantifies the activities performed rather than the energy used. The aim is to make wearers increase the Fuel points each day, raising the bar on their wristband. It is a gamification of activity, which is ideal for those with a competitive mindset.

04. Smart Home Among the numerous devices on show at this year’s International Consumer Electronics Show (CES) in Las Vegas were internet-ready home devices and appliances that can be combined into larger systems allowing individuals to take command of their home using a phone app. Electronics giant LG debuted its smart home washing machines and ovens, that respond to voice or text queries, and Goji introduced a Wifi, Bluetooth and camera-packing door lock.

02. Oculus Rift

05. 4K UHDTV

The Oculus Rift virtual reality headset – the parent company of which is Oculus VR and was recently acquired by Facebook for two billion dollars – is able to display a fully immersive 3D experience that enables users to feel as though they are actually in the game: you could be looking inside the cockpit of an airplane or trying to dodge bullets during a battle scene. The Oculus Rift’s main sights are set on video games, but speculation surrounding it suggests that it is attempting to impact the way media at large is consumed, including films. The headset supports 3D movies and a 360-degree viewing experience.

The latest trend in TV technology goes by the name of 4K UHDTV, which delivers four times the picture resolution of 1080p Full HD. The way this translates into image clarity is finer detail, greater texture and an almost photographic smoothness.

The hype about Ultra HD TV isn’t just about quadrupling resolution, but also about the faster frame rates it supports, impressive contrast dynamics and extended colours. With a 4K browser in the TV set, the internet becomes a killer app – viewing Google maps, for instance, is remarkable, as the clarity and detail of the picture is unprecedented for a Smart TV. cc

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APRIL / MAY 2014

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CC INTERVIEW

Games – the epitome of engaged learning With over a decade of experience in entertainment game development on PC, PlayStation, Wii and mobile platforms in the disciplines of design, art and management, as well as business development, Jan-Pieter van Seventer has been a driving force behind several applied games and healthcare innovation projects in his native country, the Netherlands.

Diane Seychell chats to the games expert during his recent visit to the Malta Chamber to address members about the developments in the gaming industry and Malta’s prospects in the budding sector.

J

an-Pieter van Seventer’s game career was born in the nineties as a 3D artist and designer, after graduating in industrial design from the Design Academy in Eindhoven.

“The magic of 3D virtual worlds pulled me in, creating worlds for entertainment and learning to drive my passion with an emphasis on innovative content. Building 3D worlds and having them come to life through games was amazing,” he reminisces.

The first game he worked on was Redcat, an educational one for Dutch primary school kids. He then went on to work on videogames like, KnightRider, Europe Racer, Fearfactor, Stratego, Fantom Overdrive and My horse and me (Atari) on PC, Playstation, Xbox, Nintendo Wii and mobile platforms.

He also co-founded W!Games, today known as Vanguard Studios, Halo tablet game – the second largest AAA-classified game studio in the Netherlands.

During the decade he spent working on videogames, his role in the process evolved from art and design to managing people in the creative process, and building sustainable business. “The move from design to management occurred because the dynamics of teams and their prospective successes and failure fascinated me,” Mr van Seventer confesses.

He admits, however, that understanding APRIL / MAY 2014

the undercurrents in games companies’ success stories was anything but a walk in the park. He took on the challenge by searching for clues on success in order to create more resilient gaming companies.

“Innovation and business are all about people and their ability to cooperate and submit their personal ambitions to the greater good of the team,” he believes.

After his experience as game designer, Mr van Seventer joined the Dutch Game Garden, a non-profit organisation supporting starting game developers in the Netherlands.

The organisation, with Mr van Seventer as Development Director, introduced the first dedicated game incubator-accelerator in Europe, and arguably the world.

Contrary to many people’s beliefs that games are only used for entertainment purposes, the games expert tells us that “games are used everywhere these days from healthcare applications, to human resources training and shipping business simulations.

Hilton Hotels had a 3D game developed on Playstation portable to train employees in customer service by solving a wide array

of situations through conversations with customers and staff. The Hague-based company Paladin Studios developed a laptop crane simulator game for Norwegian Offshore Simulator Centre which became such a huge success, that professional crane operators tried to beat each other’s scores while playing and at the same time also honing their skills. Rotterdam-based company Ranj developed a management training game called Shark World where the player is an aspiring manager of an engineering firm responsible for the building of a major attraction. The game is a sequence of actedout video footage in a plausible setting, using real actors. Multiple outcomes are possible and players’ decisions are tracked and ranked.

This game won a European Innovative Games Award and the Japan Prize. For Houthoff Buruma, one of the Dutch leading law firms, Ranj developed a recruitment game using the same video footage technique where the players’ performance plays a part in the selection process.”

Mr van Seventer says that “the Dutch games monitor in 2012 showed that 52 per cent of the total accumulated annual revenue generated by all Dutch games companies was earned by ‘applied games’ as opposed to ‘entertainment games’, a scenario which is unique worldwide.” He goes on to explain that these earnings are the result of assignments both within and outside of the Netherlands, meaning that the use of games as a tool by businesses has become quite common within countries where technology is the norm in everyday life.

When giving his views on the number of businesses using games in recent years, Mr van Seventer says that the number keeps growing as more and more companies and industries are discovering what game techniques can do for their business. “Games are not here to replace learning from books

“Games are used everywhere these days from healthcare applications, to human resources training and shipping business simulations.”

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CC INTERVIEW or videos, but they add value to the total package of learning tools. Games can help people apply knowledge gained through reading, within a safe setting, and where mistakes can be made and nobody would be watching, if so desired.”

Mr van Seventer confirms that tools to develop games have become increasingly easier to use and faster in the past decade, cutting down the cost of development, and hence the cost to the client. “The era of digital distribution in the 21st century has made it so much easier and more costeffective for companies to share games with customers. The rise of the mobile market at the same time allowed for smaller games to be made by fewer people, making small startups possible. This, combined with a large number of talented graduates coming out of universities and vocational schools, explains the growth of companies in the Netherlands,” the game guru says.

“One of the reasons Dutch game companies have been able to grow and build a sustainable business is by making both entertainment and applied games.

Games by definition should be entertaining regardless of whether they have the scope to educate people.” Mr van Seventer refers to the fact that the term ‘entertainment game’ was only coined simultaneously with the coming into existence of the term ‘serious game’. Before the turn of the century, games were always understood to incorporate a strong element of fun in them, which made the term ‘serious game’ somewhat of a contradiction.

Mr van Seventer says that applied games are mainly a business-to-business affair which could result in a more stable business.

“If a company chooses to make both entertainment and applied games, sharing the same tool base and design methods, a more stable company is possible, and the entertainment value of the applied games stays high.”

Jan-Pieter van Seventer visited Malta for the first time in January 2014 to speak at the launch of the Malta Digital Games Fund and concurrently to address Maltese businesses at the Doing Business with the Netherlands seminar at the Malta Chamber.

Doing Business with the Netherlands event at the Malta Chamber

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“Games are not here to replace learning from books or videos, but they add value to the total package of learning tools. Games can help people apply knowledge gained through reading, within a safe setting, and where mistakes can be made and nobody would be watching, if so desired.”

His impression is that the energy and passion among the game developers in Malta is the same as that he witnesses in their young Dutch counterparts. “The new generation of game developers has grown up in the digital age, loves games and snazzy hardware, and knows the tools and gaming platforms.” He goes on to say that being at the right place at the right time, the opportunities for them are greater than ever. “A games company can be founded from one’s house or small office, and still reach a local or global audience.”

Mr van Seventer is eager to point out differences between video games companies and e-gaming companies who build casino games.

Speaking about Malta, Mr van Seventer trusts that the country has great potential vis-à-vis the Middle Eastern market, when it comes to the games development sector, since it is a geographical and cultural bridge between Western Europe and the region.

“Maltese game developers could build games specifically for the Middle Eastern market. They could also help make ‘western games’ suitable for the Middle Eastern market, both culturally and language-wise.”

He recommends that the Maltese higher education system should cater for this niche by offering courses specifically to train

developers to build games for the Middle Eastern market respecting cultural and religious values.

In an ideal scenario, Maltese-based developers could also source content from the Middle East, readapt it if applicable, and present it to the western market, given that there is an emerging development scene in the Middle East as well. “Malta could be a Middle East-meets-West games centre of excellence,” Mr van Seventer optimistically proposes.

With regards to the Dutch Game Garden’s relations with Malta, discussions are underway in order to introduce the accelerating concept on the island. “It would be great to have a game community accelerator in the future enabling the Maltese game start-ups to have the same opportunities to grow and become strong faster than if they operate by themselves.”

Several initiatives in that direction have already been taken, but there needs to be a more consolidated and unified Maltese strategy to become a world leader in game development.”

Considering that the key ingredients such as education and infrastructure are in place, Mr van Seventer believes that “now is a good time to make an effort to boost this promising sector. “After all,” citing PwC’s Global Entertainment and Media Outlook (graph above), “video games are the fastest growing entertainment medium worldwide and its annual revenue is starting to surpass that of the film industry,” he maintains. cc APRIL / MAY 2014

CC finance

Tapping the Maltese capital market – By David Pace Snapshot of the local scene With a shade under €10 billion in securities listed on the Malta Stock Exchange (as at close of 2013), the local capital market may be one source of funding worth considering. While Government stocks and bills enjoy the majority (57 per cent) of this market cap, the €3.2 billion in equity value and €0.9 billion in corporate bonds is sufficient to encourage business leaders to study this option further.

After the recent annual highs of c. €300 million being raised in both 2009 and 2010, debt listings dwindled to under €100 million per annum in 2011 through to 2013. Adjustments to local Listing Rules, liquidity in the local capital market (partly evidenced in the successes of recent issuances), and an increasing propensity of businesses to consider a complementary form of finance to their traditional banking lines are some of the drivers that are expected to lead to busy times in terms of potential capital market debt IPOs. The story is much quieter on the equity front, where a single equity listing occurred in each of the past five years, barring 2011 where no equities were brought to the market. Internationally however, including in Europe, equity IPOs have recently enjoyed resurgent times.

This could well be indicative of interesting times ahead, with the local stock market known to follow international trends with delayed action.

Insights for local business leaders The local capital market is particularly suited for businesses that enjoy easy-to-communicate solid fundamentals, ideally backed by robust historical financials and with attractive growth prospects.

Businesses may approach the market to offer equity or debt offerings, depending on the nature of funding required and linked to its strategic objectives.

Once a company goes public, it thus benefits from, among others, increased financing alternatives. Finally to founder shareholders or family members owning a business, going public does not necessarily mean loss of control – the minimum level of the company’s shares that must be APRIL / MAY 2014

offered to the public upon IPO is of 25 per cent.

The benefits of approaching the local capital market however also go beyond the objective of raising finance, including: • An equity listing creates a market for the company’s shares, which makes them more liquid than shares in a private entity. A listed public company enhances the entity’s ability to: attract and retain management and employees by offering employee/executive share option schemes; finance acquisition via issuance of additional own equity; and provides shareholders or investors with an exit strategy (hence supporting succession strategies).

• A public equity and/or debt security listing is a profile enhancer, raising the reputation and increasing recall and recognition of the company’s brand. This is known to help in go-to-market efforts and also in luring the best talent.

• Issuing a bond may also offer advantages when compared to say a traditional bank loan, in that it improves the ability of the business to manage the

desired long term capital structure (via bullet repayments/roll-overs as against the annual repayment programmes in traditional bank finance).

The route to IPO The starting point is, as expected, the business’ plans and the commensurate funding requirements. Once these are clearly outlined an assessment is undertaken to consider the company’s readiness to go to market. The latter considers the company’s past, present and future, and could well lead a business to delay approaching the market till, say, fundamental structures are put in place or critical performance milestones are achieved. The latter means that business leaders seriously thinking about approaching the capital market are encouraged to seek the required professional advice at the earliest to further familiarise with the process and opportunities, and hopefully to take the first steps towards a journey which could well be transformational for a business.

Though the process is one which is detailed and intense, planning and being ready for such a strategic move is one of the key elements for a successful issue.

About David Pace David is a Director within the Transactions and Restructuring team at KPMG Malta, which he joined in 2002.

David has led various engagements, assisting a wide portfolio of clients with the raising of debt and equity finance, and with the valuations of shares and businesses. He is actively involved in assisting with business negotiations and has a lead role in the firm’s Merger and Acquisition service offering.

He has also participated on vendor and buy-side due diligence assignments for which he has worked within the local and foreign practices of KPMG. cc

David Pace Director, Transactions & Restructuring T: 2563 1160; E: davidpace@kpmg.com.mt 119

CC BUSINESS

Lies, damn lies and statistics The man in the street is becoming more familiar with surveys based on statistical analysis and these are slowly gaining credibility, particularly if the information originates from a trusted source. This acquired credibility flies in the face of critics who sarcastically belittle the value of scientific data tarnishing it as lies, damn lies and statistics.

PKF is currently working on a number of sectors including topics concerning social affairs, direct taxation and the business sector. Let us start by discussing social issues, in particular the phenomenon of irregular migration. Here one appreciates that civil war, political and economic persecution, and poor living conditions could be some of the reasons why hundreds of irregular immigrants are arriving at our shores. Undoubtedly this is a major issue currently affecting our islands so PKF Malta decided to design and execute an innovative statistical study to help gauge and analyse the perception of the Maltese society towards these asylum seekers (henceforth referred to as immigrants). A questionnaire was designed by experts with a major focus on the overarching influence of the media and on the major causes why refugees are fleeing their home country. It aims at assessing the level of acceptance (if any) by society and to measure the value of their contribution towards the economy.

When defining the ‘media’, it helps to quote Malcolm X, human rights activist who described it as “the most powerful entity on Earth. The media has the power to make the innocent guilty and the guilty innocent, and that is powerful because it controls the minds of the masses.” Our study aims to highlight the contribution that immigrants can make and discover whether the authorities are creating job opportunities for immigrants to maximise their potential.

Our pilot study, when completed, will show the percentage of respondents who believe that immigrants can be a useful human resource. An interesting fact that must not go unnoticed is that through their contribution, they are creating competition among job seekers hence improving the competitiveness levels of our economy.

All the questions within our study were designed in such a way as to explore existent relationships and address other sociological issues. A scientific sample to interview about 500 Maltese residents aims to achieve a confidence level of 95 per cent with a margin of error of 4.38 per cent. The respondents were randomly selected from all the districts 120

in Malta, composed of different age groups and gender.

Initially, the study aimed to interview immigrants residing in open centres and in private residences, however due to logistical complications it was agreed that it would be best to focus in the interim on the perception by locals until the authorities decide to issue the necessary permits to approach immigrants. The aim of this ambitious study is to help in eliminating any deep rooted misconceptions in the anthropological field while at the same time also having educational attributes.

PKF is running another study in parallel to measure the multiplier effect gained by the hospitality industry if VAT on accommodation is reduced. In 2011, the VAT on accommodation increased from 5 per cent to 7 per cent, a measure that yielded extra revenue however received negative backlash from MHRA – the hotels and restaurants association. PKF, with the assistance of experts in the field of statistical modelling, developed a study consisting of modelling of data and analysis of empirical data collected through a one-on-one survey with a random selection of hotels. A statistically sound regression model was formulated to fit the data up to 2012 for prediction purposes.

These forecasts were then used to compare the Gross Value Added (GVA) of hotels of different classification and respective revenue based on two rates of 5 per cent and 7 per cent. It resulted that the diminution in revenue was much less when compared with

the gain earned by hotels (and the economy in general) through improved GVA given that the VAT rate reverted to its original 5 per cent rate. This intensive study is currently undergoing updates so as to reflect the latest 2013 figures.

The final part of this study involved the design of a questionnaire distributed to 32 hotels of different classifications to calculate how negatively the increase in VAT rate affected the marketing of bed nights.

Quoting the first study it is surprising to note that the majority of hotel owners replied that if authorities can be persuaded to decrease VAT they would not reduce room rates but that with the extra revenue they would be able to update facilities, create jobs and attract more tourists through amenities of a higher quality.

In conclusion, PKF will continue to invest time and resources to improve services to its clients as it aims to continue to publish such studies free of charge to the authorities. cc Interested readers may contact Lynsey Schembri, Senior Statistician, on lschembri@pkfmalta.com

APRIL / MAY 2014

CC make the headlines

HSBC Malta support for first time home buyers HSBC Bank Malta plc would like to remind first time home buyers that anyone taking a HomeStart mortgage of up to €200,000 may enjoy a discounted variable rate of 2.75 per cent for the first 18 months whilst also benefitting from interest only repayments for the first 36 months of the loan.

Apart from this HomeStart offer, the bank currently also has two special fixed rate offers – 1.99 per cent fixed until 2nd August 2015 and 2.65 per cent fixed until 2nd May 2016.

“We are committed to help first time buyers and other customers who are buying a property which will be used as their main or second residence. We have

Middlesea Home Insurance was the first insurance in the local market to introduce assistance services At Middlesea, our main objective is to ensure the maximum peace of mind and minimum hassle for the insured in their own homes. That is why our home insurance policy is now inclusive of 24 hour 365 days a year Home Assistance and Emergency services, in order to help you in case of a household emergency.

When you have an emergency at home, you can’t afford to waste any time getting it repaired.

These emergencies can include: • sudden or unexpected breakdown or damage to piping, leaks from sanitary fixtures and fittings and fixed water installations within your home; • complete failure of the electrical supply within your home as a result of a fault or damage to the internal electrical installation;

APRIL / MAY 2014

therefore launched these fantastic offers to give customers more choice. This year provides an exceptional opportunity for anyone looking to purchase a first property, especially when considering HSBC Malta’s latest offers and the budget measure of a waiver of stamp duty on the first €150,000 of the property price,” said Paul Steel, HSBC Malta’s Head of Retail Banking and Wealth Management.

First time home buyers opting for a mortgage with HSBC may also benefit from three months’ free premium on new life assurance policies.

These offers are available for a limited period of time only, and are subject to terms and conditions. More information about HSBC Malta’s offers, products and services may be obtained online at www.hsbc.com.mt, by calling HSBC’s Customer Service on 2380 2380, or by visiting any of HSBC’s branches in Malta and Gozo. cc

• your home being made insecure or impeded entry due to loss or theft of keys or damage to locks as a result of theft or any other accidental cause or in the event that a member of your household may have locked himself/herself in a room; or • breakage of glazing to external windows or doors which renders your home insecure.

In such cases of emergency all you have to do is call the Middlesea Assist call centre on 2248 0200. We have a number of professionals at our disposal, be they electricians, plumbers, locksmiths and other service providers. Should you call for assistance we will make arrangements for one of our service providers to come to your house and deal with the emergency immediately, in order to avoid further damage.

The policy will cover the cost of the callout and labour that is necessary for the emergency repair up to a maximum of two hours labour and the amount of €200 for each incident, and a maximum of three during any one period of insurance.

For more information about our Home Insurance Policy, visit our website www.middlesea.com, or contact any of our offices or intermediaries. cc

Middlesea Insurance p.l.c. (C 5553) is authorised under the Insurance Business Act, 1998 to carry out long term and general business, and is regulated by the Malta Financial Services Authority.

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CC make the headlines

Citadel’s new mobile app Citadel Insurance announced the release of the first multi-function insurance mobile application on the island. The new app, available for iPhone and iPad is free and available from the Apple store. It is easily downloadable and totally user-friendly.

Citadel’s App gives your insurance that needed mobile functionality, anytime, anywhere. It provides the ability to obtain instant quotes for car, home and boat insurance, and to request quotes for life insurance. Customers can also purchase travel insurance, access their account information and renew their policy from their mobile phone. Additionally, the app includes a ‘claim kit’ for customers to use following an accident. It also offers a simple and convenient method for customers to pay their renewals through a secure payment system.

“The Citadel App enables us to simplify the insurance process for our customers,” says Angela Tabone, Managing Director of Citadel Insurance: “Nowadays, it’s natural to use a mobile to communicate

Renew

Life Quote

Claims Kit

Buy Travel

Up to

67.5%* savings on Motor

Get a Quote

Home €0.50c a day**

…and more

*Terms and conditions apply ** Premium based on average property sum insured

and connect with customers. Our goal to provide customer satisfaction is evident in our every innovation, and this App is no exception. At Citadel we are quick to respond to new challenges and adapt our business model to reach out to customers’ changing environment. We do our best to provide added value to our customers wherever they are, and our App brings just that.”

Citadel Insurance offers an extensive

product range including life, personal, business and specially designed branded insurance products. Health insurance plans are also available through its subsidiary Citadel Health Insurance Agency Ltd, authorised exclusive local agents for Swiss Life Prévoyance et Santé. Download the App now or visit www.citadelplc.com.

The company and its subsidiary are authorised and regulated by the MFSA. cc

CC make the headlines

Exclusive personal wealth management service by BOV

By Aldo Scardino, Executive Head, Wealth Management, Bank of Valletta p.l.c.

Financial markets are becoming increasingly complex and intertwined in today’s world. Amidst an unprecedented wave of regulatory developments, wealth managers are faced with a challenging competitive environment and an economic climate that was never more unpredictable.

Notwithstanding, Bank of Valletta’s wealth management business has, over the past months and years, seen a steady increase in assets under management and new client relationships. 2013 has seen a record level of profitability for BOV for this line of business driven by performance in client portfolio management and customer satisfaction.

The focus on long-term customer relationship management, and the emphasis on the specialisation required at the different points in the value service chain remain at the heart of the Bank’s wealth management proposition. Every client relationship is individually managed by a dedicated relationship manager, whilst individual investment portfolios are managed by a dedicated portfolio manager, who

works closely with the relationship manager and the independent research and asset allocation team. Regular client contact and systematic reporting allows clients, whether personal or corporate, to remain in control of their wealth whilst availing themselves of the services that suit them best, from stock broking and asset safekeeping, to advisory investment management and financial planning, to discretionary portfolio management services.

Bank of Valletta’s wealth management service draws on the largest securities trading and custody operations in Malta within the ambit of an open architecture offering and price transparency, where clients are given access to most markets and sectors as well as selected products of third party service providers.

The high standards of regulatory compliance and due diligence utilised by the Bank, and by the Maltese jurisdiction in general, have attracted an increasing proportion of international business. Bank of Valletta is in the final stages of a multimillion and multi-year IT infrastructure project that will integrate its client investments services offering, enabling the Bank’s wealth management function to continue developing its portfolio and risk management offering to clients, whilst enhancing customer experience through

better client reporting and customer relationship. cc For more information contact our Wealth Management Division for advice and assistance specific to your personal needs and situation on T: 2275 1133 or E: infowealth@bov.com

Bank of Valletta p.l.c is a public limited company licensed to conduct Investment Services business by the Malta Financial Services Authority.

CC make the headlines

Hilton Malta hosts dinner for RA1SE team heading off to Zambia The 2014 marketing campaign for Hilton Malta entitled ‘Your Pleasure for Today’ features Julian Azzopardi, the man behind the charitable organisation RA1SE. Hilton Malta has pledged to include awareness about RA1SE in all its upcoming TV and Facebook campaigns, in a bid to raise funds for this upcoming NGO. On 10th April, Hilton Malta hosted a dinner at Bottega del Vino as a send-off for the team of 13 Raise volunteers heading off to Lusaka, Zambia, to help in the construction of an orphanage.

The new advertising campaign, handled by Active Enterprises Ltd, which shall be aired on prime time TV as well as featured on print media, sees Mr Azzopardi taking us through a culinary tour of Hilton Malta restaurants. It takes its inspiration from the popular Food Trekker aired on the Food Channel. The aim is to present the diverse culinary world of Hilton Malta, where one can get a taste of Thailand at the Blue Elephant, sample cuisines from France and Italy at Bottega del Vino or experience the Mediterranean at its best at both Oceana and Quarterdeck.

The idea is to sell an experience, hence the campaign title ‘Your Pleasure for Today’.

“We chose Julian Azzopardi to be

Malta’s very own Anthony Bourdain, not for his culinary expertise, but because we truly believe in his cause for worldwide NGO support,” declared Melanie Deguara, Marketing Manager, Hilton Malta.

RA1SE is an NGO established to raise awareness, interest, support and engagement in NGO work in Malta and abroad.

“Our mission is to engage individuals and private businesses, as well as NGOs, in the increasingly important work of (other) NGOs around the world by providing possibilities for collaborative working on particular projects, volunteering opportunities, fund

raising activities and awareness raising,” explained Julian Azzopardi, RA1SE founder.

“Hilton Malta is proud to announce its affiliation with RA1SE,” claimed Melanie Deguara. “We are pleased to be associating the Hilton brand with an upcoming charitable organisation which shows such promise and is backed by a dedicated professional such as Mr Azzopardi,” added Ms Deguara. cc Donations can be made via online transfer to RA1SE Foundation, Banif Bank account number: 00402419101 or by contacting RA1SE on ra1sefoundationmalta@gmail.com or via Facebook/RA1SE

CC ECONOMY CHECK

Financial Engineering Instruments in the context of current and future EU funding opportunities As opposed to grants, FEIs invest in entities on a repayable basis.

Economists Gordon Cordina and Alexia Zammit discuss Financial Engineering Instruments (FEIs) as a means through which financial assistance can be offered within the EU.

T

he recent financial and economic crisis has been one of the most challenging periods in the history of EU integration. The two most daunting tasks faced by European institutions in recent years, including national governments represented by the Council of the EU, have been to restore economic growth whilst putting public finances on a sustainable path. Given these difficulties, the EU

Gordon Cordina APRIL / MAY 2014

requires a plan to ensure sustainable and credible economic growth whilst making the best and most efficient use of its limited financial resources.

Public funds through which financial assistance is offered in the EU can primarily come from two sources: assistance from central or local government as well as EU funding. This can in turn take two forms; namely grants

Alexia Zammit

and Financial Engineering Instruments.

Grants, or non-repayable funds, are most commonly resorted to mainly due to their simplicity and targeted assistance. FEIs on the other hand, which have started to gain more popularity in recent years, are generally characterised by greater efficiency and sustainability.

So what are FEIs? Financial Engineering Instruments are a form of assistance to enterprise with a revolving character.

Therefore, as opposed to grants, FEIs invest in entities on a repayable basis. They create a lasting legacy with respect to the funds utilised since the same fund can be used to invest in multiple recipients over successive funding rounds; i.e. once the assistance is repaid. It may take various forms including guarantee schemes, equity/ venture capital, loans or an interest rate subsidy, among others. In addition FEIs attract co-investment from other sources to contribute towards the final value of the project, particularly private investment.

This, therefore, increases the leverage effect of the fund being utilised.

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CC ECONOMY CHECK As outlined earlier, FEIs may result in greater financial sustainability whilst providing greater efficiency in the use of EU and national funds. With respect to the former, given their repayable nature, FEIs are self-sustaining as long as projects entered into generate a return on investment.

Greater efficiency is reached on a variety of fronts. Firstly, when beneficiaries are requested to financially contribute towards the activity entered into, they tend to become more cautious with respect to the project’s outcome and performance. In addition, projects with potentially higher return on investment, but which also bring on greater risks, may fail to attract the financing they deserve; potential investors may fail to see the benefits of undertaking such investment, banks may be overly cautious (also in a scenario of balance sheets restructuring), or project proponents may not have sufficient wealth to provide as collateral.

FEIs are therefore used to bridge this gap; that is to provide financing for projects with higher risk return profiles and which

fail to secure the necessary credit from financial institutions. They also broaden the beneficiary base due to the leverage generated and support macroeconomic recovery and sustainability. Nonetheless, projects with limited or no financial returns, and whose benefits are more of a social nature, will still need to be supported by grants.

During the last EU funding period (20072013), all member states, with the exception of Ireland and Luxembourg, implemented FEIs with the help of EU co-financing.

By 2011, a total of 592 FEIs had been set up, amounting to a total of €10.8 billion.

Out of these, €8.9 billion were used to support enterprises, €1.5 billion for urban development projects and €0.35 billion towards energy efficiency and renewable energy schemes.

Malta’s experience with FEIs during the 2007-2013 programming period is limited albeit successful. Malta implemented one ‘First Loss Portfolio Guarantee’ scheme with the help of Structural Funds with the aim of providing better access to finance to SMEs. When the instrument was launched in April

Malta’s experience with FEIs during the 2007-2013 programming period is limited albeit successful.

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2011 the fund amounted to €10 million, held by the European Investment Bank (EIB).

The aim of the scheme was to build a portfolio of €51.04 million in eligible loans.

By June 2013, 602 loan agreements had been signed between 533 SMEs and the financial institution running the scheme. In total, 95 per cent of the portfolio had been taken up which led to €83.5 million in total investment, including the private sector’s contribution. The success of this scheme led to an extension being announced by the Government in September last year.

However, the availability of such funds may be stalled in the coming months as the scheme is exhausted and EU funds for the next programming period have not yet been made available.

The ability to provide support to business through conventional methods is being eroded through tighter state aid considerations. As a result, business in Malta should expect to tap into FEIs to a greater extent in the coming years. Business financing plans should strive to attain an optimal mix between internal funds, grant schemes, other Government support schemes including tax instruments, FEIs and other financing mechanisms so as to maximise productive investment at the lowest possible cost. cc

APRIL / MAY 2014