The Commercial Courier - Oct / Nov Issue 2013 by Content House

THE COMMERCIAL COURIER /50

THE COMMERCIAL/50

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

OCTOBER / NOVEMBER 2013

Design Trends Old business signage under the spotlight

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE EXCLUSIVE REPORT ON SICK LEAVE – MOST COMMON DAY FOR SICK LEAVE IS MONDAY / GAMING LICENSES DOUBLE IN 5 YEARS / BUCKLING DOWN ON EXPENDITURE TO KICK START GROWTH: FINANCE MINISTER EDWARD SCICLUNA ON BUDGET 2014 / THE ROAD AHEAD – INTERVIEW WITH PN LEADER SIMON BUSUTTIL / IN-DEPTH: THE MALTA CHAMBER PRE-BUDGET 2014 PROPOSALS / THE DEBATE: DOES OUR ECONOMY NEED IRREGULAR IMMIGRANTS? / THE LATEST BUSINESS NEWS

THE COMMERCIAL/50

COURIER OCTOBER / NOVEMBER 2013

111.

93.

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food & wine

47. INTERVIEW CONSOLIDATING MALTA’S PUBLIC FINANCES AND SAFEGUARDING COMPETITIVENESS IS THE WAY AHEAD Malta Chamber President David G. Curmi discusses the salient proposals carried in the Malta Chamber’s 2014 pre-budget document with Diane Seychell.

10. COVER STORY EXCLUSIVE REPORT ON SICK LEAVE AND ABSENTEEISM An exclusive report conducted by the Malta Chamber’s HR Committee identifies patterns related to employees’ sick leave. Sarah Micallef reports on its findings and measures to counteract absenteeism with a number of industry professionals.

55. GADGETS BREAKTHROUGH GADGETS

19.

The Commercial Courier looks into some recent developments in the world of gadgets.

31. INTERVIEW THE ROAD AHEAD

93. MEET THE ARTIST LIFE THROUGH THE LENS

A look into the statistics related to Malta’s gaming sector.

Just over five months since he was elected leader of the Nationalist Party, Simon Busuttil talks about the challenges involved in inheriting a party facing its most difficult period in post-Independence history with Sarah Micallef.

19. INTERVIEW

40. DESIGN TRENDS

BUCKLING DOWN ON EXPENDITURE TO KICK START GROWTH

SIGNS OF THE TIMES

105. THE DEBATE

Old business signage has been receiving renewed attention by designers and business owners alike. Sarah Micallef looks into how the hand-made signs that still adorn the facades of old business premises continue to inspire the design of new establishments.

DOES OUR EVOLVED ECONOMY NEED MIGRANTS WHO ARRIVE IN MALTA IRREGULARLY?

16. IN FIGURES GAMING COMPANIES… IN NUMBERS

Ahead of the upcoming 2014 Budget, Finance Minister Edward Scicluna discusses the state of the economy and government finances, and the Government’s long-term goals for promoting economic growth with Sarah Micallef.

style review

101.

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

Switch Design & Brand Strategy Tel: +356 2131 6770 www.switch.com.mt

ON THE COVER The image shows an old shop sign in Valletta.

Jo Caruana speaks to four experts to find out whether the arrival of immigrant workers who come to Malta irregularly could offer a positive impact on Malta’s economy.

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.

Malta chamber’s silver collaborating partner

Recently exhibiting his work at the Malta High Commission in London, photographer Chris Diedo is an inspiration. Jo Caruana speaks with him and his photographer father Andrew about how Chris won’t let Down’s Syndrome get in the way of his art.

Malta chamber’s bronze collaborating partners

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Sales Executives Edward Magri Matthew Spiteri sales coordinator Lindsey Ciantar Tel: +356 2132 0713

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CC Editorial

Addressing Competitiveness Issues in the 2014 Budget

he Malta Chamber has participated actively in the pre-budget consultation process taking place within MCESD during the past weeks. To this end, it submitted a policy paper with its recommendations for the 2014 Budget. The recommendations are based on a bottomup approach through which the Chamber collects the views of its members. These are pertinent to the countryâ&#x20AC;&#x2122;s economic and fiscal policy.

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The Chamberâ&#x20AC;&#x2122;s pre-Budget proposals also consider the outcome of the latest annual Economic Survey on business expectations and performance in the Maltese islands. The survey is part of a pan-European exercise coordinated by Eurochambres â&#x20AC;&#x201C; the Association of European Chambers of Commerce to which the Malta Chamber is affiliated. The business sentiment emerging from the survey is positive overall but the rate of gains in net employment generation has

CC Editorial

tapered down to its lowest position in the past three surveys. Last year’s projections for employment changes were optimistic but these, in fact, failed to materialise. Indeed, in 2012, nine per cent of firms had indicated that they were planning to discharge workers. This has since increased to 23 per cent.

The economy remains heavily reliant on the performance of export-oriented operations compared to the changes in local sales. But, again, the share of companies that registered a decline in their exports in 2013 was almost double that projected (25 per cent against a projected 13 per cent). The decline in export orders was also captured in official NSO data related to industrial production. The previous occasion when Malta suffered similar losses in export demand was at the early stages of the Eurozone crisis when this was triggered by a general fall in consumer demand in our EU trading

partners. The recent phenomenon is of greater concern now because, this time round, the business is there but it appears to be going elsewhere. The stark reality is that we are being out-priced and that Malta is losing competitiveness, particularly in terms of labour costs. This situation demands careful handling. Policy-makers will have to continue stimulating diversification and the strengthening of the capital capacity of the respective economic sectors. From the operators’ point of view, they may seek to substitute labour for more capital unless they choose to gradually and silently phase out their investment in Malta and relocate their business elsewhere. It is not in the national interest to let this happen, and the social partners must act now before the situation is allowed to deteriorate. Within the current pre-Budget consultation process, the Malta Chamber was surprised to note the publication of documents submitted by the Ministry of Finance to the European Commission. The documents outline the Government’s plan to exit the Excessive Deficit Procedure imposed by the Commission. The documents which were not

discussed at MCESD prior to their publication mention a shift from direct to indirect taxation, with a specific focus on a revision of excise duties. In principle, the Malta Chamber is not against a shift from direct taxation to a consumption tax. Nevertheless, in practice, Malta has been more efficient in collecting direct rather than indirect taxes. To this end, the Malta Chamber has requested clarifications on these plans particularly in areas which could be economically sensitive. The Malta Chamber’s pre-budget proposals are covered extensively in this issue of The Commercial Courier through an interview with President David G. Curmi. Also featured in this issue is the Malta Chamber’s exclusive report on employee sick leave and absenteeism, and a debate about whether the Maltese economy needs irregular migrants. The Commercial Courier also meets the Leader of the Opposition Dr Simon Busuttil who gives his assessment regarding the new administration’s policies and actions on business. cc

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Mario Cutajar

Ruth Farrugia

Ivan Refalo

Catherine Calleja

Josef Vella

William Portelli

Exclusive report on sick leave and absenteeism: Most common day for sick leave is Monday An exclusive report conducted by the Human Resources Committee of the Malta Chamber has shed light on patterns related to employees’ sick leave. The report is the result of a benchmarking session, organised by the Malta Chamber’s Human Resources Committee, that focused on absenteeism, including injury, vacation and special leave, and its implications on local businesses. Sarah Micallef reports on its findings and discusses measures to counteract them with a number of leading industry professionals.

new report on sick leave and absenteeism has revealed that the most common weekday for sick leave is Monday, with Friday being the least common. The report has also highlighted the fact that staff in junior levels tended to take more sick leave than staff in senior management, with younger members of

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staff taking more sick leave than the older generations. The report has also established that the ‘lost time’ rate for most companies varied between two to four per cent, with the highest rates being registered during the months of January and February, and the lowest rates during June and December.

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“Higher incidence of sick leave in some grades of the company structure could possibly relate to employee motivation and engagement. Although ‘policing’ is not the ideal remedy, this seems to act as a deterrent to reduce abuse to some extent.” Ivan Refalo, Playmobil HR Manager

The report has also looked into trends related to the reported cause of sickness by employees and it has established that ‘overtiredness’ seemed to be a common issue – one cause that is certainly hard to ascertain is whether it is work-related or otherwise. In instances where employees work on a shift basis, the highest rates of sick leave were registered during the Friday evening shift. Malta Chamber Human Resources Committee Chairperson Catherine Calleja explains that the aims of such benchmarking sessions are to share information, discuss best practices and compare company policies on the subject being discussed. “With new work practices and changing working models, the topic of absenteeism is of interest to HR professionals from a cross-section of Maltese commerce and industry,” she says. The session and resulting report primarily focused on companies’ absenteeism rates, significant trends, policies and procedures in relation to sick leave and preventive programmes. 12

From the employees’ standpoint, Josef Vella, Secretary General of Union Ħaddiema Magħqudin reacts to these findings, commenting that the motivational factor stands out in relation to the phase of life of the employee, explaining “junior workers are at the beginning of their careers so their priority is generally the money. This leads to a tendency to take more sick leave. The more they progress in their career the more interested in their work and mature they become.” In relation to the issue of overtiredness, Mr Vella maintains, “I believe it has a lot to do with the fact that we are living in a more entertainment-based society. In the past, days dedicated to entertainment were limited to the weekend; nowadays it is no longer the case. This is also a case you hear more about in relation to young adults – I believe it is a phase that they eventually grow out of.” Aside from these findings, Ms Calleja points out, the report suggests that not all employees understood the meaning of

being ‘unfit for work’, and some regard sick leave as an entitlement and therefore abuse the system. Indeed, some questions were raised with regards to what can be defined as sick leave, and that outdated definitions of sick leave in legislation resulted in issues as to the interpretation of whether cosmetic surgery, sunburn or hangovers after the annual xalata can justifiably be claimed as sick leave. Other issues mentioned included the difficulty of finding company doctors and data protection challenges. Ivan Refalo, Playmobil HR Manager and member of the Malta Chamber HR Committee comments on these repetitive patterns in relation to the analysis of sick leave data. He states, “higher incidence of sick leave in some grades of the company structure could possibly relate to employee motivation and engagement. Although ‘policing’ is not the ideal remedy, this seems to act as a deterrent to reduce abuse to some extent.” The public service is notorious for absenteeism and high rates of sick leave. Head of Civil Service Mario Cutajar gives his reaction to the findings of the report, addressing the issue of sick leave and absenteeism within Government departments. “Sick leave is an indicator of attitude and motivation. Its frequency surmises both the workers’ motivation as well as the managerial skills of those heading the various branches of the public service. Unfortunately, the public service has a conglomeration of these problems. Both are now being prioritised by this Government.” With regard to methods employed to counteract absenteeism, Mr Cutajar maintains that “Government has a number of stratagems in place to enhance the number OCTOBER / NOVEMBER 2013

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of workers who do not abuse of sick leave, but I don’t think these designs have been conducive to the service.” He highlights a particular policy that enables employees who do not take sick leave to leave the service some months prior to their retirement date. “This policy has been in effect for a number of years but there was no significant change in the number of working days lost to sick leave. I do not regard resorting to doctors to certify sickness as an expedient solution. I am a believer in other approaches that address the reasons as to why there is a high incidence of sick leave rather than taking a head on attitude against workers’ sick days.” To this end, certain aspects of the Malta Chamber’s report point to the possibility that not all sick leave, even though excessive and not due to sickness, is due to abuse. Indeed, the report states that a particular company indicated that over the years, it noticed that employees from specific locations (mainly from the south and from disadvantaged backgrounds) took more sick leave. Mr Vella finds this unsurprising, drawing on the example of single parent households, explaining “today’s lifestyle is difficult even for two parents. It causes pressure and the need to find an appropriate work-life balance. This is even more so for single parents.” Mr Refalo agrees and maintains that “in some cases it is a coping mechanism which would need different methods of addressing. One could consider adopting more flexible work patterns, which could actually help. We have some instances where this helped not only to reduce sick leave, but also improved the employee engagement in the particular cases,” he says. The implications of absenteeism, according to Mr Refalo, are varied; from increased cost to missed deadlines. “A rough estimate of the sick leave cost could easily work out at over twice the employee wage lost. Greater awareness and greater employee engagement can help to address this.” On behalf of the Malta Union of Bank Employees, President William Portelli speaks of the situation in relation to absenteeism within the banking, finance and insurance sectors, which he terms as somewhat more disciplined than others. “Absenteeism is rather controlled and well-managed. Performance based schemes commit the employee to perform at high levels and meeting objectives is rather demanding, which in effect does not allow too much ‘frivolous’ absenteeism. In effect, when employees are absent it is because there is a genuine reason behind it.” Ruth Farrugia, Executive Director of HR at C. Fino & Sons Ltd and member of the Malta Chamber HR Committee points to suggestions to counteract absenteeism shared within the forum, stating “a zero

“I do not regard resorting to doctors to certify sickness as an expedient solution. I am a believer in other approaches that address the reasons as to why there is a high incidence of sick leave rather than taking a head on attitude against workers’ sick days.” Mario Cutajar absenteeism reward was not recommended, as this may be discriminatory toward those with an illness. New employees should be made aware of the company policies and HR professionals and managers should discuss and deal with employees who tend to take a lot of sick leave, and offer support in case of physical stress, personal emotional issues or low job satisfaction.” Indeed, the report highlights various initiatives which members could implement that can and have proven to result in less sick leave and lower lost time rates. These included measures such as follow-up interviews after periods of sick leave and other monitoring measures, and positive HR practices: • A reduction in sick leave rates was noted once flexible working arrangements were introduced. • Follow-up interviews conducted upon an employee’s return from sick leave were found to be extremely effective in reducing sick leave. • Increased monitoring measures, such as the use of company doctors more regularly, were found to reduce absenteeism rates. • In some instances, an employee’s sickness rate may be tied to his or her performance bonus. However, it was felt that such a measure might send the wrong message. • Most companies agreed that if certain absenteeism trends are noticed during the probation period, employment should be terminated immediately. • Sick leave policies can be made available to prospective employees during the interviewing process. • As a measure to reduce hours or a half day of sick leave, it was suggested that when an

employee works for more than four hours, half a day of sick leave would be deducted, while if an employee works for less than four hours, a full day of sick leave would be deducted from their yearly entitlement. • In order to identify individuals who abuse sick leave from an early age, absenteeism rates are now indicated on school leaving certificates, which could serve as an indication of how a candidate views absences. • Staff and Organisation Support Programmes (run by the Richmond Foundation) and courses by Sedqa were utilised by a number of member companies. Mr Refalo argues that employers need more effective tools to counteract and discourage abuse, as too many employees currently view sick leave as an ‘entitlement’ like vacation leave. “In some cases legislative backing could help employers to act more effectively on abuse. Greater awareness amongst the workforce is required to understand the fact that individual actions, however small they might appear, ultimately impact the overall result.” Mr Vella agrees, stating that there are many things that can be done to improve work ethic, but warns “the employer and employee both need to do their bit. If the system is abused of it affects everyone, and it isn’t fair that everyone suffers because of a few abusers. Values and principles are what regulate abuse, but it also depends on the atmosphere management creates. The more military the approach, the more abuse there tends to be. A positive air enhances motivation, and will help employees see beyond their pay cheque.” cc

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CC in figures

Gaming Companies... IN NUMBERS

OVER

400 the number of remote gaming licences in Malta

4,000 estimated number of employees working directly in the sector

100% increase in the number of gaming licences in Malta between 2007 and 2012

7,000 estimated number of employees working directly or indirectly in the industry – including in ancillary employment

Maltese registered online gaming companies make up 60 per cent of the Danish licences

number of registered companies in Malta operating in the gaming sector

OVER

€22 MILLION PER ANNUM

revenue generated for Malta in terms of gaming taxes and licence fees

40% 60%

275

Maltese-registered online gaming companies make up 40 per cent of the French licences

€5.5 MILLION

200

the investment being made in Malta by just one of the gaming companies operating in Malta over the coming year

the amount of people one online company operating in Malta is planning to employ further by end 2014 16

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CC interview Photos by Lionel Galea

Buckling down on expenditure to kick start growth Finance Minister Edward Scicluna discusses the state of the economy and government finances, long-term goals for promoting economic growth and what to expect from the upcoming 2014 Budget with Sarah Micallef.

aving been responsible for Malta’s finance for just over seven months, Finance Minister Edward Scicluna is finding the experience challenging yet exhilarating, stating, “there’s never a dull moment.”

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Before taking up his post, Minister Scicluna maintains, the state of affairs in relation to the state of the economy and government finances was difficult to determine, and asserts, “from the outside it’s like a black box. You only know the results coming out. When you’re here, you get to lift the bonnet and look at the engine. It is only then that you can see if there is a damp sparking plug, or whether there’s a wire that’s come out – it’s how you can understand what caused the engine’s hiccups.” Indeed, the ability to locate any faults within the existing system and begin to correct them, he claims, is what gives him satisfaction. Looking ahead at the upcoming 2014 Budget, Minister Scicluna highlights the ways in which it will differ from those presented in past legislatures, citing the lack of emphasis on the speech as a major difference in terms of delivery. Describing the traditional Budget speech as complicated and tiring, he favours the presentation of a document, as is the case when presenting similar documents to the European Commission. He explains, “when you put information into a document, 20

“At the moment [economic growth] is below its potential, and via the Budget measures for increasing labour supply, among others, we want to increase that potential.” you have to present it in a structured way – focusing on what the measure is, why you’re proposing it and what its impact is. In a speech you try to impress, and the data can be very nebulous.”

To this end, Minister Scicluna intends to introduce a new Budget document, with estimates, the economic survey, history and the speech as appendices. In terms of the budgetary process, which he maintains

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is the key to controlling expenditure and coming up with new ideas, the Finance Minister asserts that that too will experience an overhaul, although a more gradual one, as he feels “the Budgetary process as it is now is not helping the Government to control expenditure or find the best ideas for introducing taxation.” When asked what his core strategy will be within the upcoming Budget, Minister Scicluna puts it plainly, stating “we are focusing on cutting the deficit. It is beyond all other priorities.” He warns that debt hurts any economy and the bigger the debt, the lower the ratings from rating agencies – at the worst case leading to economic crisis, as is the case in Greece, Spain and Portugal. For this reason, it is the Ministry of Finance’s priority to reduce the debt,

or, at the very least, stop it growing. “We are committed to new fiscal rules which state that the deficit has to be reduced by half a percentage point. Ideally, we would arrive at this from the expenditure side, rather than by increasing taxation.” According to Minister Scicluna, great care must be taken in determining areas from which expenditure can be cut, although he believes that efficiency can be achieved across the board. “The three big functions of health, education and social security are very sensitive, and you need to treat them with a delicate hand.” Indeed, failure to do so can have negative effects both for the people and the economy, so a balance must be achieved, he states, treading carefully when providing budgets on these sectors, while consequently working to stamp out inefficiencies.

“We are focusing on cutting the deficit. It is beyond all other priorities.”

“It is scandalous that someone who really needs the health service is spending his own money to get it while at the same time we are wasting pills or squandering resources – it is unpardonable.” With this emphasis on reducing expenditure however, is Minister Scicluna worried that this may negatively affect economic growth? The Finance Minister does not shy away from the fact that while expansion helps, contraction hurts economic growth, but quips, “then you might as well continue borrowing and borrowing.” Certainly, he states, there is the short run and the long run to consider. “We’re looking at the long run, in which we don’t hurt the economy, so we have to be less expansionary

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by reducing the deficit. This year, for example, if we reduce the deficit by 0.5 per cent, it means we borrow €35 million less to spend. Can you imagine what you could do with that? Nonetheless, that is the cost of reducing the deficit for long-term economic growth benefits.” Last year, Malta did not keep to its deficit targets. Does the Finance Minister think Malta will stick to the projected deficit this year? While exerting caution, Minister Scicluna is hopeful. “Expenditure is an enormous pressure, and every day there is pressure for more. From the revenue side, we are on track. From the expenditure side, we will insist that we get on track – it is a continuous battle until December and

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beyond. We are hopeful that we will end the year under three per cent. Whereas I can never say what’s going to happen with absolute certainty, according to my estimation, we are on the path towards achieving it.” Moreover, despite certain sectors performing well such as tourism; on the domestic front, business operators have been commenting that the economy is sluggish – a fact that Minister Scicluna agrees with. “I agree that the economy is sluggish, and by sluggish I mean that it is growing less than we’d like it to. It started at less than one per cent last year, then this year went up to 1.7 per cent. At the moment it is below its potential, and via the Budget measures for increasing labour supply, among others, we want to increase that potential.” Minister Scicluna asserts that growth is indeed very much a priority – one that he is confident will be achieved by implementing pledges made within the Labour electoral programme. “Besides increasing the labour force through higher female participation – encouraging women to work, should they want to, with child care centres, afternoon sessions and extracurricular activities – we are focused on making work pay. We are looking for schemes which will incentivise people to work, and rely less on social security. We are also working on reintroducing the third pillar pensions as well as investing in schemes which will help to reduce frictional unemployment. Jobs don’t fall from heaven – you have to boost the economy and help people by providing training, apprenticeship schemes and other measures which will incentivise the employer to employ the long-term unemployed, who are the most difficult to employ.” All things considered, the philosophy for the coming Budget, as is reflected in the preBudget document, Minister Scicluna states, is economic stability. “It is an asset in itself. You know what it’s worth when you lose it, so we treasure it. Through the Budget, we want to create this stability for businesses to thrive.” Focusing on the business sector in relation to the coming Budget, Minister Scicluna believes that businesses “do not need carrots and sticks,” but require the economy to grow, and for obstacles like bureaucracy to be removed in order to achieve this. “The machinery of Government doesn’t work well. There is the issue of extra paperwork, and processes whereby you have to go to three offices when you only really need to go to one. If the system worked well, you would have gone to the proper department right away.” To this end, Minister Scicluna argues that whereas all Government administrations have talked about bureaucracy, doing something about it is a different matter. “The Government has set up a unit to address this 24

The philosophy for the coming Budget, as is reflected in the pre-Budget document, is economic stability.

issue, and we are actively involved in cutting bureaucracy. Bureaucracy affects businesses and the private individual tremendously. It’s very hard to get a civil servant who has been doing his job for more than 10 years to think from the client’s point of view. It’s not easy to change attitudes, but I’m hopeful.” Over the summer months, the National Statistics Office reported that the number of persons registering as unemployed was greater than that over the corresponding months last year. Despite this, Minister Scicluna affirms that the Ministry of Finance is not concerned about unemployment. “Economists talk about unemployment as a phenomenon, but when you talk about an increase or decrease, you’re not talking about numbers but the unemployment rate. OCTOBER / NOVEMBER 2013

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“I’m hopeful that in two to three years’ time, the economy’s rhythm will be faster than it is now.”

When the unemployment rate increases, it looks like people are losing jobs, but it is not necessarily the case. In other words, you can have an economy that is growing, albeit not enough, which is creating work.” Minister Scicluna points to recent Eurostat findings that employment in Malta grew by 3.6 per cent during the second quarter of 2013, registering the highest rate it has been over the last four quarters, and is also the highest among the 28 EU member states. “If the labour rate is increasing, the unemployment rate cannot be increasing, despite the numbers, so we are not worried about unemployment,” he affirms. Broadly speaking, Minister Scicluna goes on to discuss the sectors that are performing well and those that are underperforming in relation to Malta’s economy, maintaining that it is unfortunate that the sector which is underperforming has the bigger multipliers

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on the economy: construction. “There are so many jobs tied to construction, and a fall in construction rates is not satisfactory. It is a result of the boom bust of the property all over the world, though luckily in Malta property prices did not suffer, because that would have created more economic problems. As far as construction is concerned, however, it is still falling. I am hopeful that with EU funding related to structural projects this will bottom out and start to gain ground again.” All other sectors, according to the Finance Minister, are performing very well or moderately well. “Manufacturing is steady and exports are, at the moment, flat because of the situation in Europe, but not falling. I’m hopeful that in two to three years’ time, the economy’s rhythm will be faster than it is now.” Finally, as one of Malta’s leading economists, Minister Scicluna is optimistic

about an improvement in the performance of the economy in 2014, citing uncertainty regarding the Budget and the election as factors that depressed private consumption and affected incomes and revenues for the Government last year. “Retail is growing at six per cent, which is positive, and so is tourism. Exports might dip for one or two months which we know from our contact with export-oriented factories in Malta, but they are not worried because they will pick up by November and December. This gives us reassurance as we know that most of the sectors are stable and waiting for new measures, lessened bureaucracy and new breathing space – a new way of seeing things that gets dulled when an administration gets tired, as is the case in every field.” cc

CC interview Photos by Lionel Galea

The road ahead Simon Busuttil, elected as leader of the Nationalist Party just over five months ago, may be considered to have inherited a party facing its most difficult period in post-Independence history. Sarah Micallef talks to the Leader of the Opposition about the myriad challenges that lie ahead, and his determination to overcome them.

peaking about his new role, which necessitated a shift from operating in the European Parliament to the national political context, Simon Busuttil’s outlook is far from negative, even while taking the party’s current hardships into account. Describing the experience as an exhilarating one, he asserts, “next to this, Brussels is dead boring!” Simon Busuttil is the first to admit that after March’s landslide electoral defeat, he inherited the Nationalist Party at its weakest, both politically and financially, with the party

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reportedly facing unprecedented financial problems. Despite this, he maintains that it is his aim to turn this challenge into an opportunity to regroup and rebuild it. “This,” he maintains, “is necessary after an almost uninterrupted 25-year period in Government, during which we evidently focused on the Government and not on the party itself.” Indeed, faced with whether the Nationalist Party can be trusted with the country’s finances given its incapability of managing its own, Dr Busuttil argues that the PN government left the country’s finances in good order, and should be trusted on that basis. “Last November, the European Commission issued a clean bill of health for our public finances, and our country was taken out of the Excessive Deficit Procedure. It is clear, therefore, that the PN administration was good for the health of our public finances. Evidently, because we spent so much energy on governing the country, we paid less attention and energy to the party itself, and it now finds itself in a very difficult financial situation. This is a challenge that I, along with the rest of the team, am addressing.” Asked about what the party is doing to rectify the dismal financial situation it currently finds itself in, Dr Busuttil points out that following a number of tough decisions, by the end of September, the month-to-month 32

“So far, we have heard nothing about how [the Government] intends to create new jobs. It is this job creation plan that i believe that businesses should be waiting for in the next Budget.” operations of the party would have broken even. “This means that the revenue we will generate will be sufficient for us to cover all our expenditure and for us, crucially, to pay our workers’ salaries on time.” This, however, does not account for the debt of the past. Dr Busuttil explains, “once we’ve had the current situation addressed, we are going to turn our attention to the past and address that as well.

Although we have the debt problem, we also have a lot of assets as a party, particularly property assets, so we will be engaged in trying to make the best commercial use of our property in order to be able to address the financial debt of the past.” Moving on from the financial challenge to the political one, Simon Busuttil addresses the implications of the 36,000 vote deficit.

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“By unleashing the full potential of the business community, the economy grows and more jobs are created, and that helps workers and families.”

“The truth is that many people shifted to Labour in the last election, and my task will be to try and get them back, but not simply by telling them to come back – I want to work as hard as I can to deserve their trust again.” In relation to the business community, a large segment of which indisputably shifted to Labour in the last election, Dr Busuttil asserts that the PN’s policies in government were always pro-business. “By unleashing the full potential of the business community, the economy grows and more jobs are created, and that helps workers and families. We are living in one community and therefore it is in everyone’s interest. I am committed to reach out to this sector again, and work hard to earn back its trust.” In terms of the upcoming European Parliament election, the Nationalist Party, he claims, will certainly go into it as the disadvantaged side, yet its target remains, he states, to elect the third seat for the PN in the European Parliament for the first time. Shifting attention to the Labour Government, Dr Busuttil gives his verdict on the movements of the current administration so far, maintaining that as we speak, there are stories unfolding that could well be considered mistakes. “For instance, the U-turn that the Government made regarding the use of heavy fuel oil is a big mistake. It is either a pre-electoral deception or a clear failure of the Government to live up to what it promised. It promised, during the campaign, to stop using heavy fuel oil, and described the power station extension as a ‘cancer factory’. The truth is that it was not and is not a cancer factory, but the Government today is committed to change the heavy fuel oil because that is what it had promised to do immediately, and seven months down the line it has not done that.” He goes on to cite the issue of out of stock

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medicines as another error on the Labour Government’s part, which affects people’s daily lives. Assessing the feasibility of the Government’s plan to build a gas power station within the stipulated timeframe of two years, Dr Busuttil affirms that it will only be doable if the project is rushed through. “The first reaction we received from one of the most important environmental lobbies, Din l-Art Helwa, was that the study is incomplete. There are also other

studies we need to see, such as the security considerations of building a power plant in that area.” He goes on to outline other considerations in relation to timing, stating “if this is going to be built in two years, but household bills are going to be reduced by 25 per cent next year, who is going to fork out the difference?” Another matter he draws attention to is what is going to happen at the end of the agreement with the private companies that are going to operate the new power station, enquiring “who is going to

foot the bill for electricity purchase and how much will it cost?” Moving on to achievements on the part of the Labour Government so far, Dr Busuttil points out that the Memorandum of Understanding with Libya was a step in the right direction – a matter that the Opposition will be following closely to ensure the agreement is implemented as soon as possible, in order to translate into a concrete reduction in fuel bills and prices consumers pay at the petrol station.

“It is abundantly clear that the competence of the PN administration in relation to the economy was flawless.”

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In relation to the state of the economy under the Labour Government, Busuttil maintains that despite it being early to judge, some of the statistics are already a cause for concern. “For instance, there has been a substantial rise in unemployment in the month of July this year – an increase of almost 10 per cent when compared to July of last year. This is a matter of concern when one takes into consideration that although in general the month of July usually registers low employment due to seasonal reasons, this increase proves to be negative. There is also the rise in inflation on the price of food, which has risen more than seven per cent since Labour was voted into power.” Asked whether he thinks the business sector will be better off under the Labour Government, he maintains that while its policies sound business-friendly, whether that will lead to a stronger economy than the strong economy that was left by the PN administration remains to be seen. “It is abundantly clear that the competence of the PN administration in relation to the economy was flawless. My biggest concern is a clear economic direction, and a clear plan for job creation. This Government was elected on a very clear platform – a change of direction. Now we have a change in direction, but we don’t know where we’re heading. This is the question that people need answered now. We have been, as an Opposition, pressing the Government for a clear plan for jobs since the beginning of the legislature. So far, we have heard nothing about how it intends to create new jobs. It is this job creation plan that I believe that businesses should be waiting for in the next Budget.” On the Opposition’s part, the aim, according to Busuttil, is to monitor what the Government is doing, while reviewing and refining its own policies. “With time, I want people not just to see the Nationalist Party as a party of Opposition, but a party that is a government-in-waiting – that is, an alternative Government. I want people to see the Nationalist Party as an effective Opposition but also as a party on which people can rely because it is coming out with ideas and new proposals.” Speaking of the Prime Minister, Busuttil asserts, “It’s not for me to judge Joseph Muscat, it’s for the people when the time of judgement comes, in an election. What I can say, however, is that Joseph Muscat has been brilliant at winning an election. The question that I think people need answered now is whether this man is able to govern them; whether this party is able to govern their country.” cc

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“I want people to see the Nationalist Party as an effective Opposition but also as a party on which people can rely because it is coming out with ideas and new proposals.”

CC design trends Photo by Richard Muscat Azzopardi

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CC design trends Photo by Ed Dingli

Photo by Alan Paris

Signs of the times Within Malta and Gozo’s older areas, one is met with a variety of relics and artefacts that provide an insight into days gone by. One such feature that has been receiving renewed attention, in no small part thanks to the launch of www.maltatype.com last May, is old business signage. Sarah Micallef looks into how the hand-made signs that still adorn the façades of old business premises continue to inspire designers and creatives nowadays, the techniques and style of which are being implemented for new establishments.

ichael Azzopardi, Creative Director at Switch Design & Brand Strategy, distinguishes between typography and painted signage, stating that although typography is in fact the ability to use letterforms in a way that is reproducible, there is a tendency to bundle all studies of letterforms into the typography umbrella term so that in current vernacular, typography can be said to include anything from calligraphy to embroidery. “Typography in Malta goes back almost as long as typography itself, mainly because

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for much of our history we were a colony of the force that predominated across the region so we ‘inherited’ their technology.” Therefore, typography as such has only been widespread since the development of moveable type, attributed to Johannes Gutenberg in the 15th century. To this end, Mr Azzopardi maintains, painted signs do not really fit within the stricter description of typography because they are hand-painted, purpose made, and not faithfully reproducible. Indeed, our use of signage goes all the way back to pre41

Photo by Richard Muscat Azzopardi

CC design trends history, when stone carving of a religious and ritualistic nature was created by our ancestors. “It goes all the way through to the stone and marble carvings across the country left by those responsible for building much of what we revere today, such as the Grandmasters’ palace and the Knights’ auberges. More recent commercial signage, such as the beautiful crushed-foil signs, has finally been recognised as art and we’ve stopped destroying them in favour of restoration and conservation of this wonderful piece of our history.” Despite the terminological haziness, www.maltatype.com is contributing to this recognition. Comprising of a collection of images

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showing old business signs that appear around Malta and Gozo, Maltatype was created by graphic designers Ed Dingli, Matthew Demarco and Katerina Karamallaki, after discovering that no such resource that collected and catalogued these examples existed. The aim of the site, they maintain, is to have “a location where typography and signage aficionados could see all these beautiful examples of type, that will unfortunately eventually disappear as new shops and modern signs replace them.” Such signage was created using a selection of techniques and processes that have since fallen out of favour, including verre églomisé, glass painting and individual wood-cut lettering. Speaking of typography’s ability to represent a culture or nation, Mr Azzopardi cites the natural links between Helvetica – the Swiss ‘neutrally-uniform’ typeface and Switzerland, or Giambattista Bodoni’s eponymous typeface and Italy as ones that instantly spring to mind. In Malta’s case, he states, although much of the typography that was prevalent at any one time depended on the culture of our colonisers, “one style of lettering that has been around and that we’ve made our own reached Malta via a rather unlikely and circuitous route, from Argentina through Sicily and finally making it to our karozzin. I’m referring to tberfil, a hand-lettering process that then found its way to buses and trucks, and that is closely related to the art of pin-striping. It is very Maltese, being a spontaneous and decorative style.” Besides tberfil, which Ed, Katerina and Matthew agree is a technique synonymous with Malta, they assert, “one of the most prominent techniques around locally was verre églomisé, or an imitation of angel gild, in which the back side of glass is gilded with gold or silver leaf.” This shop-sign lettering that still has the ability to make a statement is a technique that Michael is also particularly fond of: “through the arclike gold lettering adorning arched shop doors or heavy typefaces reproduced in silver or gold leaf over a solid black background, these signs used crushed foil to create an interesting effect, obscured by opaque black paint to reveal letterforms.” Techniques such as this are often passed down from generation to generation, with very few remaining artists practising the art on the islands. One such artist, although he never worked on business signs as such, is Herbert Guillaumier. He has been practicing a variant of verre églomisé for the last 45 years, took part in several exhibitions and teaches the craft to patients attending the Day Therapy Unit at the Hospice Movement in Balzan. Mr Guillaumier explains the process involved in this little known craft: “materials used in this craft include several different sized brushes, paint, glass, Arabic gum 43

Photo by Richard Muscat Azzopardi

CC design trends and coloured silver foil. The method is very simple. You start by placing the picture to be painted under the glass and tracing the outline in black paint with the smallest sized paint brush. When the paint sets, the background is next to be painted. I use black and/or white. Once again, the paint has to set in order to continue with the procedure. Once it does, it’s time to glue the coloured silver foil onto the glass as required, thus forming

Photo by Ed Dingli Photo by Richard Muscat Azzopardi

the painted picture. In the past, signs were done free-hand, as crafters did not have the use of scanners and enlargers. Moreover, the only silver foil used in the process used to be found in tea-boxes – tea used to be imported in boxes which were lined with silver foil and sold by weight.” As Ed, Katerina and Matthew explain, it is assumed that prior to the 1960s or thereabouts, local signs were largely handmade – either painted, carved or neon. The introduction of vinyl technology in the 1980s, however, meant that signs were produced more quickly and cheaply, which made it easier to replace a sign. Before that, as Katerina maintains, by equating signs from different eras, one can begin to see the 44

various trends going on at that time. “By comparing all the examples on the site, you can definitely see trends running through a few of them. This is particularly interesting as we are talking about a time without the fast communication systems we all now rely on. At the time, the sign-maker was the designer as well as the craftsman. He would have had to come up with an inventive logo and design for the sign while making it beautiful and eye-catching for the passing trade.” Fortunately, as the trio asserts, “we feel that people are starting to appreciate the traditional craft again, and we are starting to see hand-made signs come back into fashion.” Indeed, such examples of modern signs using hand-made techniques can be

seen at the likes of Tico Tico Bar and Blitz Art Gallery in Valletta, among others. Mr Azzopardi draws from his own experience of designing business signage with traditional lettering and techniques in mind, maintaining that typography is central to the design. “Not only is it at the core of any brand’s identity, it is also essential for displaying information and can be tuned to portray a hierarchy of that information. There are instances where letterforms can be used to convey a message other than the words they spell. For instance, when working on the re-design of the Wembley Store in Valletta, we used two typefaces that clearly reflect the period we sought to recreate. Using gold leaf to render the lettering, we even observed the original process that would have been employed at the time for a very faithful final result.” Certainly, this renewed appreciation of hand-made signage is good news for signage and typography aficionados. Indeed, highlighting Maltatype’s function as an online resource which contains a curated collection of examples of typography found around the Maltese islands,” Mr Demarco describes the site as “a library of images, documenting this form of public art which inspired many a designer and typographer before the time of the Internet” – and no doubt, continues to do so now. cc

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Malta Enterprise/LGA at ICE in London

Malta Enterprise/Aviation Malta at Ebace in Geneva

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Stands produced and managed by BIG Exhibits

The power of face-to-face marketing Face-to-face marketing is a powerful resource which enables you to take your brand to the right audience in an interactive manner, and live events are a critical part of such a marketing strategy. Research shows that live events and trade shows have been a proven method for getting new business for as long as the marketplace has been around. For centuries, market squares have been the places of business for salesmen selling goods or wishing to communicate particular messages. As economies blossomed and markets grew into large industries, so too did these market squares evolve into iconic arenas and communal spaces located at the heart of every country’s commercial centre. However, the principles of the live event remain unchanged – sellers showcase their goods and trade while buyers come to see their offering or hear their message. Benjamin Mangion, BIG Exhibits Director, said “every visitor at an exhibition, whether an exhibitor, journalist or interested outsider, is a potential customer. Exhibitions bring together thousands of decision-makers in the same venue at the same time, all with a potential interest in what is on offer. Exhibitions provide you with unique, invaluable access to a highly-targeted group of customers.”

Portable display solution

Stands produced and managed by BIG Exhibits

Face-to-face marketing is important for the simple reason that customers predominantly attend live events out of choice, not by chance, and they present exhibitors with a willing target audience not accessible in the same way through traditional marketing methods. “Exhibitions are a superb marketing platform, the main reasons being lead generation, the ability to raise brand awareness and reinforcing your messaging, establishing new prospects and sales, building customer loyalty, launching products or services, carrying out market research and seeing what the competition has to offer. If one uses his or her presence in an exhibition wisely, the returns can be endless. Exhibitions are the only platform where buyer, seller and product come together,” said BIG Exhibits Director, Jean Pierre Mizzi. To be in a position to service its large clientele with innovative exhibition solutions, BIG Exhibits, for the past 12 years, has teamed up with Nimlok, the world’s leading exhibition stand and event solutions provider, and today are their official service providers for Malta and North Africa. As Malta’s industry leaders with an expansive portfolio of work both locally and internationally, BIG Exhibits can design and supply high impact custom modular

exhibition stands that get your brand noticed on the exhibition show floor. So if you are looking for a portable display or exhibition solutions to promote your brand, or looking for large format printing or signage solutions, look no further than BIG Exhibits. Our custom modular exhibition solutions are designed for flexibility and reusability. Your exhibition stand can be extended or reconfigured as your business grows. For one-off larger installations BIG Exhibits can rent specially designed modules to give you maximum impact for a minimal investment. Experience has shown us that participating in exhibitions is not an easy task, so we have worked hard to put together exhibition management solutions which are designed to make it easier to participate in exhibitions while you can concentrate on spending your time on the exhibition stand as effectively and profitably as possible. Given its years of experience, BIG Exhibits can help you participate in more trade exhibitions and road shows by offloading the burden of creating a concept, putting it together and constructing it. We’ll start the process with a comprehensive analysis of your needs and goals, and end with a remarkable and memorable custom design solution that meets your budget and exceeds your expectations. cc

Fast solutions

Contact us now to find out more on tel: 2131 8885; email: info@bigexhibits.com.mt; or visit our website: www.bigexhibits.com.mt

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Consolidating Malta’s public finances and safeguarding competitiveness is the way ahead In the run-up to the upcoming Budget, the Malta Chamber has once again presented its pre-budget recommendations to Government. Malta Chamber President David G. Curmi talks to Diane Seychell about the salient proposals carried in the Malta Chamber’s 2014 pre-budget document and why they should be adopted.

he Malta Chamber’s overall economic objectives fit closely with those outlined in the Government’s pre-budget document, which focuses on macroeconomic stability to encourage investment whilst generating wealth across the board. The Malta Chamber has time and time again called for economic direction based on two principles; wealth has to be generated before it is distributed and any solution to the economy needs to be based on growth. In this regard,

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David G. Curmi says that “the Malta Chamber calls for cost competitiveness and fiscal discipline to be maintained and improved to stimulate growth and job creation.” In a scenario where the European Commission is raising its alarm on its concerns on the subject of Malta’s financial stability situation via the Country Specific Recommendations contained in the National Reform Programme, and through the reimposed Excessive Deficit Procedure, the Malta Chamber’s two main recommendations are sustainable public finances and tax compliance, together with safeguarding Malta’s competitiveness. “The country has reached the point when it can no longer escape the need to place its financial house in order. If not, there may be no alternative but to resort to higher taxation to finance public debt payments,” Mr Curmi warns. In principle, the Malta Chamber is not against such a move, but in practice, it must be recognised that Malta has been less efficient in collecting indirect taxes compared to direct taxes. Malta must concentrate on fair and efficient fiscal enforcement. This must come about primarily through the elimination of abuse and clampdown on evasion. In this regard, the Malta Chamber awaits further details on the recently announced shift in fiscal policy from direct to indirect taxation. The Malta Chamber still awaits the setting up of a multi-departmental task force armed with legal executive powers to ensure a proper curtailment of abuse. The Malta Chamber is also looking forward to the finalisation of the process of the merger of the public revenue collecting entities. The Malta Chamber has for the last years called on the authorities to remove Eco Contribution and enforce waste management schemes. “Industry as a whole feels that Eco Contribution is not functioning and it was not serving its intended purpose in terms of businesses’ environmental obligations. If it is not enforceable we should eliminate it completely because it is causing too many distortions in the market,” Mr Curmi affirms. On the issue of pensions, the Malta Chamber is suggesting to link statutory retirement age to life expectancy. Mr Curmi also highlights the importance of reviewing the current Pay-As-You-Go system, which is clearly unsustainable. “The current pensions system should be supplemented by a voluntary third pillar. This pillar would complement the current system as long as the necessary safeguards are put in place.” Moreover, Mr Curmi adds, “should these plans include the involvement of employers, they must be published in good time, giving employers the time to adapt to the changes.”

“The country has reached the point when it can no longer escape the need to place its financial house in order. If not, there may be no alternative but to resort to higher taxation to finance public debt payments.”

The Malta Chamber also makes reference to the need for a reform in the healthcare system. The current waiting lists and other inefficiencies have resulted in patients forfeiting their right for free healthcare. Commenting on this issue, Mr Curmi says that “a key component for rendering the national health system more sustainable is by reforming national policy on free medicines.

The solution lies in the introduction of mechanisms such as reimbursements systems, which would provide the patient with better access to superior and innovative medication, curb abuse and reduce wastage.” The Malta Chamber places Malta’s competitiveness on the same scale of importance as public finances’ stability. Competitiveness remains paramount to

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long-term stability. The most problematic factors for doing business in Malta remain the burden of Government regulation, the low participation of women in the labour force and the inherent geographic limitations linked to the country’s physical size. However, competitiveness levels have officially remained stable. For Malta to continue enjoying this stability, “authorities should better align wages and productivity at enterprise level,” the Malta Chamber President believes. The vast majority of Maltese companies are micro-firms which are very much affected by over-regulation and bureaucracy. The Malta Chamber is proposing that a new national competitiveness watchdog is established, which would ensure that the economy is not hampered by new measures, regulations and taxes that negatively affect competitiveness. The Malta Chamber welcomes the appointment of the new Commissioner for anti-bureaucracy and believes the Better Regulation Unit within

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the Management Efficiency Unit could be the entity to implement this initiative. Regulatory impact assessments, as established by the Small Business Act, are to be enacted without further delay and applied to all legislation which affects industry. An extensive process of legislative simplification is also being proposed. For this to be executed, “the public service must align itself to the present needs of the economy and the private sector,” Mr Curmi asserts, whilst referring to added costs from bureaucracy, including summer working hours. “To have an effective reform, one

should first identify the source of resistance to change and tackle it,” he says. With regards to energy costs, investment in renewable energy sources, energy efficiency and energy prices remain a major concern. The Malta Chamber is looking forward to seeing further details on the major projects proposed and a new strategy for renewable energy and efficiency. Government should also launch assistance schemes to help businesses invest in solar energy. “Such schemes should not exclude any type of business,” Mr Curmi says. “Banks and financial services can, through their

“To have an effective reform, one should first identify the source of resistance to change and tackle it.”

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investment help considerably in reaching the target of 10 per cent of renewable energy sources by 2020,” he explains. One of the most pressing challenges faced by SMEs in Malta remains access to finance. “Government should consider further tax incentives for business angels investing in SMEs as well as tax reliefs for innovation and training,” the Malta Chamber President says. He adds that financial engineering instruments such as the JEREMIE scheme have been positive and should be replicated during the next EU funding programming period, and possibly extended to include other interesting instruments administered by the European Investment Bank.

“Government should consider further tax incentives for business angels investing in SMEs as well as tax reliefs for innovation and training.” With regards to the internationalisation of Maltese business, resources need to be channelled towards resource consolidation amongst local companies. Malta’s embassies are also to be supplemented with an effective trade and investment office to assist local companies to find business opportunities abroad. “Malta is to be marketed as a soft-landing zone to North Africa,” Mr Curmi believes. More should be done to entice foreign direct investment to place core activities and higher value-added

activities in Malta, and funds should be channelled towards the establishment of Business Councils to stimulate export growth by introducing local operators to foreign companies that operate in Malta, the Malta Chamber suggests. The Malta Chamber has been at the forefront of the discussions about the recent launch of a strategy to reduce early school leaving. In this light, it encourages Government to continue investing in successful educational programmes and schemes, both on a local level as well as through EU funded programmes. In its pre-budget proposals, the Malta Chamber is also proposing a number of recommendations aimed at bolstering education, skills and family-friendly measures. These include the setting up of a Sector Skills Council, introducing entrepreneurship, tourism studies and vocational subjects to complement the existing curriculum, and providing free childcare services at the point of use so as to allow more women to enter the labour market. The Government should also be looking into providing resources to improve career guidance structures, implementing job exposure schemes and extending after school care services, the Malta Chamber recommends. The Malta Chamber expects the forthcoming budget to address the need for growth and to address the pressures on Malta’s public finances, in line with its proposals. “The Malta Chamber will support any set objectives which aim to address the effective and responsible measures that are required. On the contrary, it cannot support any attempt to implement easy solutions which are clearly not in the country’s longterm interest,” Mr Curmi concludes. cc

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GIZMO MADNESS Whether we admit it or not, many of us would love to own the latest gizmos, just as they are released, finances permitting. Chiara Bonello takes a look at what’s worth splashing the cash on. 01. Denon Cocoon Portable The Cocoon Portable by Denon is designed for both indoor and outdoor use. It includes superb features such as powerful Denon sound quality, airplay for wireless music streaming, dock for iPod and iPhone, and AUX input to play any MP3 player. The builtin rechargeable battery allows for up to five hours of independent use. The cabinet is constructed out of one single piece, resulting in a robust and solid construction that is water resistant. The convenient handle in the back makes it easy to carry around. Available from Astral, Abate Rigord Street, Ta’ Xbiex. Tel: 2134 0562/2134 5522; email: info@astral.com.mt; www.astral.com.mt

02. Schlage Touchscreen Deadbolt Key hunting is something we have all fallen prey to in the past, whether scrambling in a huge handbag for them or wondering where we’ve left them, but those worries will become a thing of the past thanks to this modern creation. The Schlage Touchscreen Deadbolt makes keyless entry as simple as plugging in your code. With up to 30 different codes, an alarm and the free Nexia Home Intelligence app, it provides complete peace of mind, with the added bonus of being able to keep tabs on when your children are entering and leaving the house.

03. Satechi USB Portable Humidifier What with air-conditioning, heating and various other dehydrating factors, your skin can suffer at times, but with this little gadget you can take everywhere, your problems are solved. Soothing and replenishing, this humidifier is attached to a water-filled bottle or glass and plugged into a USB port. At night, it casts a dim blue light, for a calming, away-from-home ambience.

GADGETS

05. Mophie iPhone 5 Juice Pack Plus Taking battery performance on the iPhone 5 to another level, the Juice Pack Plus supports a 2100 mAh cell, efficient enough to produce 120 per cent extra vitality. Mophie’s new charger can generate up to 10 hours of LTE usage and nearly 50 hours of audio playback, securing Apple’s nextgen mobile in a stylishly durable jacket.

06. Apple iPod with Retina Display An improvement on their portable media player, Apple have managed to squeeze in a faster processor, enhanced FaceTime camera and a gorgeous four-inch Retina Display into an even lighter package. It also includes a pair of its signature EarPods headphones for good measure.

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07. Sony Vaio Pro 13 Few ultrabook models can give the MacBook Air a run for its money, but Sony’s latest might be the one that comes closest. Sexy, slender and powerful, the world’s lightest 13.3-inch touch laptop is a multimedia beast that delivers gorgeous visuals on a colourful full-HD panel and outputs rich sound from its hinge-located speakers. With Intel’s new Haswell 4th Generation Core CPU at the helm, the Vaio Pro enforces stronger processing speeds and booting times than most premium Windows 8 laptops. The affordable price tag also works in its favour.

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08. Samsung S9 Ultra HD 85-Inch TV Although pricey, this 85-inch beauty unveiled at CES 2013 left the audience awestruck over its industrial design, phenomenal ultra high-definition picture quality and astronomical MSRP. It exhibits 4K technology, a new format billed to make your current HD TV look positively outdated, displaying 4,000 pixels wide across the entire screen to deliver the most refined viewing experience. It also boasts three-way 2.2 channels of 120-watt sound, quad-core processing, and gesture/voice control. cc

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04. Google Trekker Venturing far from the roads and delving deep into canyons, island hopping and exploring vast landscapes and adventures could all be recorded with the Google Trekker. Google have upped their game to unprecedented levels, and is actually looking for helpers – successful applicants will be loaned Google’s equipment (i.e. a 40-pound, backpack-mounted, 360-degree rotating system with up to 15 cameras that take photos every 2.5 seconds as the Trekker treks) on their next voyage.

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Data analytics – the latest tool for internal auditors Organisations are faced with increasingly complex risks such as changing regulation, intricate fraud schemes and inefficient operations. The impact of each of these may be catastrophic to the organisation and as such, it is becoming critical to identify and respond to such risks in a timely manner. Delivering value is a constant challenge for internal audit. KPMG’s Global Audit Committee Survey (2013) reported that only 45 per cent of respondents are satisfied with the value delivered by internal audit. The effective implementation of proper tools can provide internal auditors with new ways of assessing and assisting management in mitigating risks in the organisation. Data analytics is one of the latest weapons in the internal auditor’s arsenal. With data increasingly recognised as a valuable asset to the commercial world (and beyond), the rise in importance of data analytics is hardly surprising. Harnessing its benefits is, however, not straightforward. What is ‘data analytics’? Data analytics involves a process in which insights are extracted from operational, financial and other forms of electronic data, internal or external to the organisation. This process is able to provide historical, forward-looking and even risk or performance-focused information to the auditor. As noted by KPMG (2013) in Transforming Internal Audit: A Maturity Model from Data Analytics to Continuous Assurance, at the most basic level, analytics provide information about events (descriptive). As analytical capabilities become progressively advanced, they allow us to identify the causes of an outcome (diagnostic), to predict an outcome (predictive) and, at the most sophisticated

level, to develop a course of action in response to events (prescriptive). KPMG (2013) in Data Analytics for Internal Audit held that data analytics can be used to lay the foundation for continuous auditing (“CA”) within an internal audit function. CA involves the repeatable collection of audit evidence and monitoring of different aspects of an organisation, including processes and controls, by an internal auditor. Tim McCollum, in Directions for the Data Analytics Journey (Internal Auditor, 2011), succinctly captures the benefits of data analytics to the profession: greater productivity and cost savings, more efficient data access and reduced data risk. Its application in the forensic space has also been widely touted. With such compelling reasons, why do our organisations often struggle to reap the benefits? Although citing a number of challenges, KPMG maintains that the answer often lies in the approach: implementation within internal audit is often ‘tactical/ technical’ rather than ‘strategic’. The focus of the former is ensuring you have the technical capabilities and falls short of an assessment of the whole audit process and the potential transformation thereof.

KPMG (2013) ties this strategic approach with a five-level maturity model. Although the use of data analytics is optimised across all audit phases at the highest level of maturity, it is clear that not all organisations require the same level of maturity. Identifying internal audit’s current level of maturity, determining gaps and addressing such gaps are critical for effective implementation. As expected, at the most basic level, data analytics are used at the execution and reporting phases of internal audit. As the level of maturity increases, traditional auditing will be transformed into CA. More ambitious organisations will seek to integrate CA with its relative, the management-driven continuous monitoring (“CM”) and on to full maturity state identified as Continuous Assurance of Enterprise Risk Management. Internal auditors must demonstrate innovation. That’s not a quality we are often associated with. But it’s one the savvy professional must embrace. Maintaining the traditional audit process will not allow us to optimise the use of data analytics, whatever the outlay on technical resources. Transforming our process to embrace data analytics will. cc

Alex Azzopardi is a Senior Manager, External and Internal Audit Services at KPMG. He leads the Internal Audit Service portfolio of the firm and has conducted research on Internal Audit Services as part of his dissertation for the completion of his degree at the University of Malta. Such research focused on reporting and quality assurance within internal audit. OCTOBER / NOVEMBER 2013

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Is your company prepared to manage the risks introduced by the BYOD (Bring Your Own Device) trend? It’s an unstoppable trend: employees are bringing their own mobile devices to work and using them for business purposes. While that may be great for productivity, the influx of personal smart phones, tablets and even laptops in the workplace can pose a significant risk to your organisation’s security if you don’t have an appropriate strategy in place. Curt Gauci, Director and co-Founder of Kinetix IT Solutions, a local leading IT Systems Integrator, discusses user centric IT and device security threats at the workplace.

What are the risks associated with the BYOD (Bring Your Own Device) trend? For most companies, simply banning personal mobile devices is not a realistic option. Today’s business realities compel IT departments to accommodate personal mobile devices, despite the risk they introduce – but that risk needs to be managed effectively. There are device risks that stem from the fact that mobile devices are a new class of powerful computer with massive local and cloud storage capabilities, over which organisations typically have far less control than traditional desktop PCs or corporate-managed laptops. App risks arise from employees installing third-party or in-house mobile apps that interact with corporate data stored on the devices, or with your back-end systems.

Is all the pain worth the gain? The benefits include creating new mobile workforce opportunities, improved employee satisfaction and cost efficiencies. Today, work happens on the go. For users, this flexibility is incredibly useful and beneficial, but for IT managers, it means managing any sort of device anytime, anywhere. Therefore, companies may either choose to have stringent policies and deny the user independence which

will result in employee resentment and higher attrition, or give the users complete freedom and flexibility whilst maintaining control at the core of the company.

What can business owners do to reap the benefits of user centric IT whilst protecting themselves against such threats? Business owners tend to forget that the same treatment we give our laptops and PCs at work needs to be given to mobile devices in order to ensure enterprise security. The best way to minimise device risks would be by drafting a good policy and investing in a Mobile Device Management (MDM) platform. An MDM solution provides access control as well as device provisioning and configuration, software distribution, encryption and password management, remote wipe and lock. In practical terms, this means employees can continue to use their personal or corporate-provided devices for business purposes, provided they agree to allow their device to be managed by the MDM solution. When it comes to risks introduced by downloaded apps, it’s important to understand the potential for damage. They are hard to control and lots of apps are malicious.

How is Kinetix able to help a company protect itself? The first step would be a device audit. In the end, no comprehensive device security strategy is complete without an audit that examines your mobile infrastructure, devices and apps to identify current weaknesses and help guide the organisation’s next steps. With years of experience in network and data security, we have taken device management as the next natural step. We have implemented a number of mobile device management solutions and also take on the device support and maintenance. In the US, 28 per cent of organisations agree that BYOD improves productivity and efficiency while job satisfaction and retention increased by nine per cent, and IT management and troubleshooting costs are reduced by six per cent. In the end productivity is the main goal, and mobile devices are simply a means to that end. In fact, we think that focusing solely on mobility is wrong. Today it’s about productivity. Tomorrow it will be about productivity. cc

Curt Gauci is Director and co-Founder of Kinetix IT Solutions, a local leading IT Systems Integrator. Kinetix are HP, Cisco, Microsoft, Kerio, Trend Micro and Symantec certified partners.

OCTOBER / NOVEMBER 2013

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Pegasus means business with its new table d’hôte business menu Business lunches have been given a new lease of life at the five-star Hotel Phoenicia’s signature eatery Pegasus, which is now open daily for the discerning lunch crowd that has business in mind. There’s a 70-year tradition of entrepreneurs, agents, importers, ambassadors, cabinet ministers and dignitaries slipping out of the bustle in the capital city to walk a stone’s throw from Valletta to the bastion-enclosed hush of the iconic Phoenicia. This is where much of the nation’s business gets done, quietly out of range from prying eyes, and where Executive Chef Saul Halevi and Food and Beverage Manager Francesco Perricone have decided to plant their flag for healthy and fresh midday eating and entertaining, based on an innovative table d’hôte business menu that changes weekly and has a wide array of daily specials to savour. Pegasus offers contemporary Mediterranean cuisine in elegant surroundings with great views of some of Malta’s most well-known landmarks, including the Triton Fountain and the new entrance to Valletta. Plentiful carparking surrounds the hotel, although Pegasus enjoys its own separate entrance on the hotel’s stately drive-way and those in the know ask their chauffeurs or personal assistants to drop them at the door.

Pegasus has a well-designed dining room that serves an à la carte menu as timeless as they come, in stylish and glamorous surroundings renowned for their restrained modern décor of comfortable chairs, art prints, bric-à-brac and idiosyncratic clocks; absolutely none of these items deflects from the nutritious, tasty and healthy Mediterranean cuisine with the light touch that delivers big flavours and delectable aromas that waft across the dining room. While there are several great restaurants in Valletta, for those who wish to continue their deliberations and talk freely over lunch, few leave a lasting impression like the exclusive Pegasus. Privacy is its hallmark, as is the rapid and attentive service by a small army of waiting staff. Thanks to Mr Halevi’s focus on fresh, light and healthy Mediterranean food, every kind of palate is catered for. Mr Perricone, together with Mr Halevi have crafted sophisticated table d’hôte menus, resplendent with fresh fare that changes weekly, and a mesmerising array of specials on a daily basis. Pegasus yields up the best our seas have to offer, alongside vegetables and herbs grown in the Phoenicia’s own kitchen garden which sprawls across 4,000 square metres gently nestled on a sunny slope beneath Valletta’s

mighty ramparts; the award-winning brigade of chefs rustle up delicious Mediterranean cooking in a setting seemingly designed for important business transactions. Pegasus embodies Maltese business and Mr Perricone has gone to great lengths to pair very special wines with the refined fresh cuisine, creating a masterpiece of choices for every kind of business entertaining. Mr Perricone says, “our mission is for business people to enjoy our superb range of fresh local food in our five-star awardwinning environment and to make the most of each lunch. The discerning business diner will have no trouble finding the right wine for the occasion, to make your meal a memorable one and possibly help you close the deal!” For a business venue frequented by an elite clientele that’s also a special treat, this is the place, a venue meant to impress with the food and history to back it up. From midOctober, the Pegasus is open daily for lunch and dinner with special emphasis on business lunches during the week that allow for business partners to be hosted in complete confidence at one of Malta’s most ideal settings to conduct business over a delightful and healthy lunch. This is a place that helps to deepen business relationships. cc

For further information visit www.phoeniciamalta.com or www.facebook.com/phoeniciahotel

OCTOBER / NOVEMBER 2013

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Mercury Tower: FIMBank’s new eco-friendly global head office

Prime Minister Joseph Muscat recently inaugurated FIMBank’s new head office building in St Julians – an 8,000 square-metre development consisting of modern office space, car parking and storage facilities. Mercury Tower is a striking piece of architecture which is not just aesthetically pleasing but also environmentally-friendly.

In keeping with the bank’s community values, the building incorporates the latest environmentally-friendly features: Mercury Tower is equipped with superior ventilation systems, intelligent lighting controls, building management systems and high performance insulation materials.

A detailed study led to the selection of a superior glazed curtain walling which reduces the requirement of artificial lighting and hence benefits the health and wellbeing of its occupants. The building’s energy consumption is also significantly diminished by the use of heat recovery units that reduce the load of the air-conditioning, therefore further lessening the environmental impact. The bank is conscious of the scarcity of water on the island and decided from the outset to invest in the construction of a huge reservoir with a capacity of half a million litres, for rain water harvesting beneath the Tower. The bank was proactive throughout the building’s planning and construction stages, implementing measures to minimise the impact on the environment and is also committed to regularly review its building management with a view of optimising its operational performance and reducing the organisation’s carbon footprint. cc For further information about FIMBank plc, visit www.fimbank.com

Shireburn releases SEPA compliant payroll

Shireburn Software has recently released the latest version of its payroll software that now enables all automated electronic payments within the system to be SEPA (Single European Payments Area) compliant. Following rigorous testing in collaboration with local banks, Shireburn was recently given the green light to release the update with the new SEPA compliant features. OCTOBER / NOVEMBER 2013

SEPA is the European standard for electronic payments and the Shireburn Payroll System (SPS) is now able to effect payments to employees, both locally and internationally, using this format. Automated SEPA payments have just started being accepted by local banks and all electronic payments across the euro area must conform to the SEPA format as from February 2014. This is also the format that is required for new bank customers processing payments electronically. “Shireburn payroll’s SEPA compliance is yet another example of how responsive and timely Shireburn is in ensuring local businesses can meet evolving business needs and is in line with Shireburn’s strategy to lead the market and always provide clients with the best solutions,” says John de Giorgio, Managing Director of Shireburn Software. “Thousands of employees are paid using the Shireburn payroll system and they can rest assured that their employers will be set up to ensure no interruption.”

Mr de Giorgio stresses the importance for businesses to begin talks with their respective banks prior to activating the SEPA function in the Shireburn payroll system, so that they may ensure that all will be in order come the final deadline in February 2014. The Shireburn payroll solution forms part of the Shireburn Business Suite (SBS), a robust and integrated business solution encompassing payroll and HR, accounting, inventory, retail, e-commerce, BI and document management solutions among others. cc Visit http://ec.europa.eu/internal_market/ payments/sepa/ for more information regarding SEPA. For more information about the Shireburn payroll and HR system or other business solutions, contact Shireburn Software on tel: 2131 9977 or info@shireburn.com

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Banif launches limited offer Biz Flex Account Banif Bank has introduced the Biz Flex Account, a limited term deposit offer aimed at the bank’s corporate and business customers. The Biz Flex Term Deposit Account is available in three, six and 12-month terms, and allows full and partial withdrawals during the term, for added flexibility. Customers who avail themselves from the withdrawals prior to maturity can still earn interest on both the amount withdrawn and on the remaining amount kept in the Biz Flex Account. The Biz Flex Account can be opened with a minimum balance of €100,000 at an advantageous rate of 2.625 per cent gross p.a. on a 12-month term deposit denominated in euro.

“What really differentiates this product from others is that it addresses the needs of companies and business people who might have extra funds for a limited time period,” said Dirk Spiteri Lucas, Head of Product and Strategy Unit, Banif Bank (Malta) plc. “Clients need not worry about losing a good business opportunity since they have the peace of mind of using their funds if they need to, no questions asked! This flexibility coupled with the rates associated with term deposits makes this product unique in the market.” cc

Terms and conditions apply. For more information clients may contact Banif’s Corporate and Business Banking Unit on tel: 2260 1000. Customers are also welcome to visit our business offices at Level 1, 125-126, Main Street, St Julian’s or Level 1, 189, Naxxar Road, San Gwann.

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NEWS Internationalisation

01. Meeting with Honorary Consuls from South Africa and Madagascar On 24th July, Internationalisation Manager Klaus Pedersen met with two prospective consuls for Malta in South Africa and Madagascar. The prospective Honorary Consul to South Africa, Bernard Cassar, is a Maltese citizen who has been very successful in the South African hospitality sector rising to the very top of Sub-Saharan Africaâ&#x20AC;&#x2122;s largest hotel chain, Protea Hotels. The business interest between South Africa and Malta in recent years has been from South African nationals interested in purchasing real estate in connection with Maltese Permanent Residence regulations. Mr Cassar remarked on the many possibilities of synergy between the Maltese and South African tourism sectors due to the difference in seasonality between the Southern and the Northern hemispheres. Prospective Honorary Consul to Madagascar, Danie Akesson, also has a long history with Malta through her husband, Bertil Akesson, who has been Honorary Consul for Malta in Madagascar for the past 20 years. For Madagascar, new business interests are especially in raw materials such as rare earths and primary products such as cocoa and coffee. Interest in these types of products has seen a revival in the past years and this is reflected into other sectors such as financial services. Both prospective Consuls shall stay in touch with the Internationalisation Desk in order for mutual business contacts to be exchanged in the future.

companies in the region. It is very interested in widening its international network and expanding its business to Malta. The possibilities of collaborating with members of the Malta Chamber were discussed as was a potential collaboration with the German-Maltese Business Council and joint participation in EU-funded projects. The Chemie Cluster Bayern representatives were accompanied by Josephine Farrugia, Regional Leader for Germany in Malta Enterprise.

03. Meeting with Honorary Consul for Emilia Romagna Director General Kevin J. Borg met Maltaâ&#x20AC;&#x2122;s Honorary Consul in Emilia Romagna Enrico Gurioli, at the Malta Chamber on 30th July. The discussion included the possibility of cooperation in the trade of agri-food products typical to the Emilia Romagna region. Mr Gurioli is a regular visitor to Malta. He is an expert on maritime issues and a contributor in the local media.

04. Meeting with Vietnamese group of companies The Honorary Consul for Malta in Vietnam was accompanied by Senior Official of Ocean Bank, Thanh Le Minh for his visit in Malta. Mr Le Minh was in

Malta to look at the possibilities of setting up a bank and buying a five-star hotel. Ocean Bank forms part of Ocean Group which has extensive investments in the fields of property investment and development, the hospitality sector and retail. Internationalisation Manager Klaus Pedersen met with Mr Le Minh and specifically discussed the investment opportunities in the banking sector in Malta. Following the meeting, Mr Pedersen referred Me Le Minh to FinanceMalta as well as some relevant contacts from amongst the Malta Chamber membership.

05. Meeting with Honorary Consul for Malta in Nepal Honorary Consul for Malta in Nepal Dinesh Shrestha was in Malta for the bi-annual Consul meeting. Mr Shrestha is also a member of the Executive Committee of the Federation of Nepalese Chambers of Commerce and Industry and Chairperson of the Industry Committee for Commodities in the same organisation. Mr Shrestha met with Internationalisation Manager Klaus Pedersen on 31st July to discuss bringing a trade delegation to Malta from Nepal. He also mentioned that some Nepalese companies were interested in importing wine and food products from Malta. Furthermore, he stated that there was an interest in both the Maltese educational and tourism sectors.

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02. Meeting representatives from Chemie Cluster Bayern On 24th July, Chairman of the Plastic Manufacturers Business Section Kenneth Caruana; Sectors and Research Executive, Robert Tabone Valetta; and Internationalisation Manager, Klaus Pedersen met with Daniel Gottschald and Irina Nunberger, Managing Director and Project Leader of Chemie Cluster Bayern respectively. Chemie Cluster Bayern is a publicprivate partnership based in Bavaria, aiming to facilitate clustering in industries with a common relation to chemistry and chemical products. It is one of 19 clusters in Bavaria and represents more than 250 OCTOBER / NOVEMBER 2013

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06. Meeting with Malta’s Ambassador in Kuwait

07. Meeting Japanese representatives of Triphol

08. Austrian group for vocational training visits Malta Chamber

On 7th August, the Chairman of the Middle East Business Council (MEBC) Tonio Casapinta and Internationalisation Manager Klaus Pedersen met with the Maltese Ambassador in Kuwait, Charles Sultana, during the latter’s visit to Malta. Ambassador Sultana explained that there were many business opportunities for Maltese business in Kuwait. One of the main challenges is the fact that few people in Kuwait know much about Malta or what it has to offer. He also mentioned that there is a growing opportunity for outgoing tourism from Kuwait as travellers are seeking new destinations. He added that in order to take up this opportunity, Malta needs to be better prepared for Sharia tourism. He also said that the embassy is working on finalising its visa section so that visitors would no longer have to obtain their visa for Malta from the Austrian embassy in Kuwait City. Mr Casapinta and Mr Pedersen briefed the Ambassador on the progress in setting up the MEBC within the Malta Chamber and advised that the MEBC is seeking to initiate a road show to the Gulf, visiting a number of countries in the region to increase awareness about Malta.

On 13th August, Internationalisation Manager Klaus Pedersen met with Shinichi Muraguchi and Nusrat Rehana Shah from the Japanese company Triphol. The visitors were in Malta on a factfinding mission and were accompanied by a Malta Enterprise representative. Triphol is a full service provider of OLED, Thin Film LCD, display signage, LED lighting, supporting Europe and USA technology companies. It provides manufacturing equipment and materials, facilitates the supply chain and contractual requirements including CE standards compliance, mediating between Japan and the West. It installs and supports manufacturing equipment with both material supply and rapid response maintenance in Europe and the United States. The purpose of the company’s visit was to get an idea about what the Maltese islands can offer to prospective businesses.

A four-person delegation from the Austrian organisation BBRZ Gruppe visited the Malta Chamber on 3rd September. They were accompanied by the Regional Leader of Malta Enterprise for German speaking countries, Josephine Farrugia. The delegation was in Malta on an exploratory visit. Representing a group with more than 200 employees, companies and organisations owned by the BBRZ Gruppe currently participate in more than 35 different EU-funded projects, giving BBRZ an indepth knowledge on the management of EU-funded projects, especially within the field of vocational training. The group met with Internationalisation Manager Klaus Pedersen and discussed the scope for collaboration between BBRZ and the Malta Chamber in particular, as well as with other institutions in Malta. The delegation included Managing Director Othmar Friedl (also vice-president of the international organisation for vocational training EVBB); Head of International Projects and Cooperation Josef Stockinger; Chairman of the Supervisory Board Dr Josef Peischer; and Head of Corporate Communications Gerhard Hagn.

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09. New Honorary Consul for Arequipa, Peru Internationalisation Manager Klaus Pedersen met with Malta’s prospective Honorary Consul for the city of Arequipa in Peru, Dr Mauricio Chirinos. Aerequipa is Peru’s second largest city and Dr Chirinos will be Malta’s second consular representative in Peru. Dr Chirinos is in Malta for his vetting as Malta’s new Honorary Consul as well as a familiarisation visit. He was accompanied by Mario Buttigieg from the Ministry of Foreign Affairs and spoke with Mr Pedersen about the functions of the Malta Chamber, the strengths of the Maltese economy and potential areas of economic and commercial exchanges between Malta and Peru. A lawyer by education, Dr Chirinos has spent most of his working life in the textile industry and currently represents a company which produces Alpaca wool, yarn and finished garments.

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10. Ambassadors of Germany and Belarus welcomed at Malta Chamber This was the German Ambassador’s first visit to the Chamber since presenting his credentials earlier this summer. Malta Chamber President David G. Curmi gave a brief overview of the Malta Chamber and its role in the Maltese economy expanding on its internationalisation efforts and the establishment of the German-Maltese Business Council with the support of his predecessors. Malta’s competitiveness position; its education system and the availability of skills; the traditional economic pillars and new emerging sectors formed part of the discussion with H.E. Klaus-Peter Brandes. Discussions with H.E. Evgeny Shestakov centred on progress registered in the Belorussian economy in recent years, its main achievements and the country’s economic and political relations with the European Union. Ideas about promoting the two countries’ economic interests at both ends were also discussed at length. The Malta Chamber pledged every support to the embassy in raising awareness about business opportunities that exist in Belarus for Maltese entrepreneurs. H.E. Shestakov was accompanied by Honorary Consul of Belarus for Malta Paul Fenech and local representative of the Belarus Chamber Johann Baldacchino.

Internationalisation Manager Klaus Pedersen and SBFM Executive Committee Member Christer Gustafsson.

The Middle East Business Council (MEBC), established within the structures of the Malta Chamber of Commerce, Enterprise and Industry, and consisting of Malta Chamber members who have a common interest in promoting business relations in the Middle East, was launched at SmartCity Malta. This event was sponsored by SmartCity Malta and Emirates Airlines Malta. Malta Chamber President David G. Curmi said that while the name of the newly-

established body allows the MEBC to target the Middle East region, it is the declared goal of the Business Council to focus on the Gulf Cooperation Countries. Mr Curmi praised the hard work that has been done so far by Chairman Tonio Casapinta. Malta Chamber Director General Kevin J. Borg said that with a number of features in the press and the establishment of a website, the objective of creating a well-established entity was already underway. The MEBC also intended to help Maltese businesses seeking to do business in the region and to forge links with stakeholders and potential investors from the region. One way of achieving this would be by establishing links with local stakeholders to facilitate a holistic and concerted effort when it comes to trade and investment links with the Gulf countries. The keynote speaker was Dr Ahmed Abdul Rahman Al Banna who came from Dubai purposely to address the event. A former deputy director of the Dubai Chamber and the current CEO and major shareholder of Dubarch Architectural Engineering Interior Design Consultancy, Dr Al Banna gave a detailed insight into the business world in the Gulf in general and Dubai in particular. The event was also addressed by SmartCity Malta CEO Anthony Tabone and Malta Enterprise Investment Promotion Manager Clive Brockdorff, who spoke about the status of the SmartCity Malta project and the support available to Maltese companies seeking to do business in the Middle East, respectively. The Minister for the Economy, Investment and Small Business, the Hon. Dr Christian Cardona also addressed the event, underpinning the importance the Government gives to the region. From the outset, the Government has had a strong focus on building ties in the Gulf and the establishment of this entity was therefore welcome news. The event was attended by Minister for Foreign Affairs, the Hon. George Vella, Minister for Education, the Hon. Evarist Bartolo as well as by ambassadors from the embassies in Malta of various Middle Eastern countries.

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12. Newly-appointed German Ambassador meets GermanMaltese Business Council Committee Members The newly appointed German Ambassador, H.E. Klaus-Peter Brandes, was once again invited to a meeting at the Malta Chamber, this time to meet the Executive Committee of the GermanMaltese Business Council (GMBC). The Ambassador introduced himself by saying that his appointment followed a posting of four years in Dubai and two years in Tanzania. He also explained how he was well-acquainted with the previous three ambassadors in Malta which all augured well for continuity. He said his predecessors reported excellent relations with the GMBC and had words of praise for the active endeavours of the Council over the past three years. The members of the GMBC introduced themselves and also their roles outside the Malta Chamber. Furthermore, Director General Kevin J. Borg and GMBC Chairman Karl Aquilina outlined the background and work of the GMBC.

13. Middle East Business Council launched at SmartCity Malta Media release issued on 10th October 2013

11. SBFM meets Commercial Counsellors from Finland and Denmark On 17th September, a familiarisation meeting was held between the newlyappointed Minister Counsellor at the Embassy of Finland in Rome Riika Eela; Counsellor at the Embassy of Denmark in Rome Asser Rasmussen Berling, and representatives of Scandinavian Business Forum Malta (SBFM). The expansion of business and networking opportunities between Maltese and Finnish as well as Danish entrepreneurs was actively discussed. Among the subjects discussed was Malta’s ideal position as a base for Finnish and Danish entrepreneurs seeking to penetrate the North African, particularly the Libyan market. SBFM was represented by Chairman Dr Mark Fenech, Malta Chamber OCTOBER / NOVEMBER 2013

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NEWS Events & Initiatives

01. Meeting with FITCH Rating Agency

03. Meeting with the Malta Institute of Management

A meeting with representatives from Fitch Rating Agency was held on 25th July. Fitch was reviewing Malta’s sovereign rating and was interested in obtaining the Malta Chamber’s sentiment and opinion on problems which Maltese businesses were facing. Areas discussed were energy issues, access to finance and the difficulties of operating from an island state on the periphery of Europe. The Malta Chamber also presented the latest review from its business sentiment survey showing positive results across various manufacturing and services sectors.

Malta Chamber President David G. Curmi and Director General Kevin J. Borg met a delegation from the Malta Institute of Management (MIM) on 1st August 2013. The MIM was represented by President Reuben Buttigieg and General Manager Omar Vella. The MIM representatives spoke highly of the Malta Chamber’s projects and initiatives for the local business community, particularly in the area of education and internationalisation. The possibility of combining the efforts of the two organisations for the benefit of the business community was discussed. It was agreed that regular meetings would be held in order to facilitate future cooperation.

02. Meeting with Malta Enterprise Chairman The Malta Chamber’s Board of Management met with Dr Mario Vella, Chairman of Malta Enterprise (ME) at the Malta Chamber on 29th July. Malta Chamber President David G. Curmi confirmed that ME had the Malta Chamber’s support in its endeavours to attract investors, increase exports, and investing in the country’s future prosperity. The main topics discussed were the ME vision on attracting future investment to Malta, the balance between manufacture and service-based industries, the role of ME in assisting Maltese companies to export their businesses outside Malta and assistance to SMEs. Dr Vella said that ME was in the process of streamlining the services it provided. ME’s core services should be to promote direct investment and FDI and will look towards the broad spectrum of industry at the same time, acknowledging the need to micro-target and to direct its efforts towards specific companies or even parts of specific companies. Dr Vella spoke about the specific openings which ME would target, the need for educational programmes which were synchronised to fit industrial requirements and the importance of concentrating on attracting investment from countries which had given the best results in the past. The Malta Chamber officials spoke about its Internationalisation Desk and building on the existing cooperation with ME in areas which could be complimentary. Further regular meetings will be held between Dr Vella and the Malta Chamber‘s Board of Management. 74

04. Meeting with former Polish Prime Minister Waldemar Pawlak Malta Chamber President David G. Curmi and Director General Kevin J. Borg welcomed to the Malta Chamber Waldemar Pawlak, a former Prime Minister of Poland and Agnieszka Kaminska, a candidate consul for Malta in Krakow on 1st August. Mr Pawlak has twice served as Prime Minister of Poland, briefly in 1992 and again from 1993 to 1995. From November 2007 to November 2012, he served as Deputy Prime Minister and Minister of Economy. Mr Pawlak was interested in the Malta Chamber’s opinion and feedback on innovative payment solution systems which he was in the process of evaluating. The role of the Malta Chamber in the economy was discussed, as well as its interaction with the Polish Chamber of Commerce through BusinessEurope and Eurochambres. Mr Pawlak and Ms Kaminska

were also briefed on the role of the Malta Business Bureau. The possibility for Malta to be used as a Mediterranean hub for Polish companies was also discussed.

05. Malta Chamber supports Social Media Masterclass seminar On 5th August, Marketing & Communications Executive Diane Seychell attended a seminar entitled Social Media Masterclass: Building Brand & Reputation. This seminar was organised by the Malta Communications Authority with the support of the Malta Chamber. The seminar was opened by Malta Communications Authority Chief of External Relations Celia Falzon. The main speakers at the event were Colab Founding Director John Shewell and European Commission Information and Communications Officer Antoine Mallia. Mr Shewell focused on the importance of communicating one’s strategy well before deciding to embark on a social media campaign. He highlighted the importance of evaluating a company’s social media presence and most importantly to embrace failure. He stated that a company should know its audience and set clear and measurable objectives. Mr Shewell concluded that social media is not about measuring the followers you have, but rather about the quality of the followers and what they are saying about your company. Mr Mallia’s presentation delved into how to plan a social media campaign, with particular focus on Facebook, Twitter, Flickr and YouTube. He highlighted the importance of sharing photos and videos to get noticed. A word of advice from Mr Mallia was to focus on sharing only newsworthy posts on social media, thus generating traffic by creating interest.

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06. R&D&I Activity in local manufacturing companies Malta Chamber Policy Executive Marilena Gauci attended a workshop organised by the Business & Investment Consultancy Unit at Malta Enterprise on 12th September. During the workshop, University students from the Faculty of Engineering, Information and Communication Technology and the Faculty of Economics, Management and Accountancy presented the results of a study they had conducted. This study consisted of a gap review mapping exercise through which information was gathered on the Research, Development and Innovation (R&D&I) activity in local manufacturing companies. The presentation delved into the quantitative and qualitative results which emanated from information gathered from Malta’s R&D&I priority sectors, these being ICT, high value added manufacturing, energy & environment, and health & biotechnology. From the information gathered it appeared that the majority of local companies were unaware of the availability of schemes for R&D&I projects and thus lacked the initiative to participate in any such activities. Additionally, the bureaucratic element of applying for these schemes further impinged upon companies’ R&D&I efforts. As a result, Malta’s efforts towards economic growth and development were found to be below its full potential. In this light, a number of recommendations were put forth by the students. These included promotion of schemes, company visits, bureaucratic reductions, shortening of application forms, and increased training schemes.

07. Malta Chamber staff training A seminar for all Malta Chamber staff took place on 18th September. The purpose of the seminar was to discuss the present and future needs of members and ideas to improve on the service currently offered. The seminar was facilitated by David Spiteri Gingell. The seminar started with a group discussion about the Malta Chamber’s mission and the way forward. This was followed by brainstorming sessions and a final summing up by Mr Spiteri Gingell. Similar training and team-building sessions will be held on a regular basis.

08. Tourism Business Section elections As Malta’s leading business organisation, the Malta Chamber has been taking active steps to strengthen its role within the tourism industry to represent those subsectors which are ancillary to the hotel and catering sectors, such as language schools, tour operators and aviation among others. To this effect, on 20th September, the Tourism Business Section members held an election of the Executive Committee who would set and drive their agenda for a two year period running until 2015. Executive Committees usually meet on a bi-monthly

basis in order to maintain a good level of communication and representation. The elected members are Genevieve Abela, Ian Fitzpatrick, Ivan Mifsud, Robin Oakes and Iain Tonna. The members shall be appointing a Chairperson and a Deputy at the first Executive Committee meeting.

09. Malta Chamber summer event The Malta Chamber Summer Event was held at the Xara Lodge on 24th September. Over 170 members attended this annual event, which this year took place with the city of Mdina as its magnificent backdrop. The President of the Malta Chamber, David G. Curmi welcomed members and also the Minister for Sustainable Development, the Environment and Climate Change, the Hon. Leo Brincat; the Minister of Finance, the Hon. Edward Scicluna; and Parliamentary Secretary for Competitiveness and Economic Growth, the Hon. Edward Zammit Lewis, as well as the Leader of the Opposition, the Hon. Simon Busuttil, and the Deputy Leader of the Partit Nazzjonalista, the Hon. Beppe Fenech Adami, who all had the opportunity to mingle with members in an informal and relaxed atmosphere. This was one of a series of functions organised by the Malta Chamber to allow members the opportunity to meet with their business associates in a social context.

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NEWS Issues & Positions

01. Meeting with MEP Roberta Metsola Tedesco Triccas Malta Chamber President David G. Curmi met with MEP Roberta Metsola Tedesco Triccas on 5th July. Mr Curmi was accompanied by Deputy President Anton Borg, Board of Management Member Charles A. Zahra and Director General Kevin J. Borg. Dr Metsola Tedesco Triccas is one of the three MEPs who were elected to the European Parliament this year. The two sides discussed various topics of mutual interest and which affect the economy such as illicit trade, gender quotas and regional aid guidelines. Speaking about illicit trade, Mr Curmi said that the Malta Chamber has consistently been in favour of a freemarket economy within the parameters of fair regulation because this promises improved standard of living for consumers and a more efficient business environment for local entrepreneurs. The Malta Chamber clarified that it was not advocating protectionist measures or border controls which were no longer allowed since EU accession. It was merely contending that free competition and free movement of goods did not equate to “free for all”. Even within the liberal intra-EU trade framework, there were rules to be followed. With regards to gender quotas, Mr Curmi stated that the Malta Chamber opposed the European Commission’s decision to impose a 40 per cent quota for female board representation on publicly listed companies by 2020 because it believes that merit, experience and achievement should be the most important qualifications for any post, and most definitely not gender. He said that the ideal approach would be to implement measures which encourage a natural rise in the number of women at decision-making level, including incentives for females to retain their employment and help strike a balance between work and family commitments. The Chamber representatives also raised their concerns with respect to recent developments concerning the maximum levels of aid allowable to commercial undertakings post June 2014. This was a result of Malta losing its previous Objective 1 ‘A’ Region status and falling under the new more developed assisted area ‘C’ Region status and also the European Commission’s impending decision on new Regional Aid Regulations coming into force in July 2014. The possible adoption 78

of the latest Regional Aid Guidelines published in July was detrimental to the competitive position of local manufacturing industry particularly to large firms. Dr Metsola pledged her commitment in assisting the Chamber and the national authorities in their pertinent representations with the European Institutions.

02. Report on meeting with Minister for Tourism Karmenu Vella Malta Chamber President David G. Curmi and Council Member Reginald Fava met with the Hon. Karmenu Vella, Minister of Tourism on 22nd July. The main reason for the meeting was to inform the Minister of the Malta Chamber’s contribution to the Tourism sector most notably in the areas that were complementary to the hospitality trade. The Minister informed the Malta Chamber of the latest proposals in terms of national consultation on tourism strategy and invited the Malta Chamber to contribute. Malta-EU partnership agreement Malta Chamber President David G. Curmi led a delegation to a meeting with the Hon. Louis Grech, Deputy Prime Minister and Minister for European Affairs and Implementation of the Electoral Manifesto on 25th July. The purpose of the meeting was to discuss the apportionment of EU Funds for Malta over the forthcoming programming period 2014-2020. Representatives of the Board of Management, the Economic Groups and Malta Business Bureau were also in attendance. At the meeting, Mr Curmi declared that the Malta Chamber was broadly in agreement with the horizontal approach adopted by Government and which was outlined in a consultation document. It was particularly pleased that competitiveness was given the highest priority because this was conducive to economic growth. The Malta Chamber stressed the need for a higher private sector allocation of funds than in previous funding periods because experience showed that this created higher economic gains through the multiplier effect. The matter relating to the EU’s Regional Aid Guidelines was also discussed at length in view of current changes being proposed at the European level with potential limitations to investment in Malta. The Minister invited the Malta Chamber to provide its input by way of ideas and proposals on how the private sector

could benefit from EU funds. The three Economic Groups will be drawing up their priorities which will be formulated into a document detailing the Malta Chamber’s structured proposals.

03. Malta Chamber discusses sustainability of healthcare systems with Prime Minister A Malta Chamber delegation led by Malta Chamber President David G. Curmi visited the Prime Minister and the Minister of Health to discuss healthcare issues on 9th August. The delegation included the Chairmen and representatives of the Healthcare, Pharma Manufacturing and Pharmacist Pharmacy Owners Business Sections. The three individual sectors gave their joint recommendations towards achieving more efficient systems in the procurement of medicines as well as more sustainable schemes for the distribution of free medicines. All sides agreed that the current systems were badly managed, prone to rampant abuse and consequently unsustainable. The Prime Minister said that the systems were to undergo reform in the near future but this would be done within the principle of the provision of free healthcare and free medicines. The Malta Chamber pledged its support to the forthcoming reform and offered its technical support in the process.

04. The Yachting Services Business Section Executive Committee meets with Parliamentary Secretary Edward Zammit Lewis The Yachting Services Business Section Executive Committee of the Malta Chamber held a meeting with Parliamentary Secretary for Competitiveness and Economic Growth, the Hon. Edward Zammit Lewis on 2nd August. The Executive Committee discussed a number of challenges pertaining to the sector such as the lack of hard standing facilities in Gozo, issues within MEPA in relation to pending applications and unissued permits for new marinas, the issue of the environmental impact on marine plants, as well as the limited leisure opportunities within the immediate vicinity of marinas to attract yacht owners. The Committee reiterated that the yachting industry should be viewed within OCTOBER / NOVEMBER 2013

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the greater context of the shipping sector, as a distinct maritime industry in Malta. Moreover, the delegation explained that it is in a very strong position to act as a consultation partner with Government when it comes to practical issues, initiatives and challenges of the industry. While re-affirming his commitment to support the yachting industry, the Hon. Zammit Lewis is looking forward to continue with ongoing consultation meetings with the Malta Chamber’s Yachting Services Business Section to ensure that the potential of such a valuable economic factor in Malta is exploited for further economic growth, job creation, and a better future for Malta.

05. New appointment on the Malta Chamber Board of Management In line with the relevant Statute provisions, Stefano Mallia and Helga Ellul have resigned from the Malta Chamber Council in view of their candidacy to the forthcoming European Parliament elections. In reply to their resignation letters, Malta President David G. Curmi thanked both members for their sterling contribution on the Malta Chamber Council, particularly during their respective terms as Presidents. As laid out in the Statute, a vacant Council position was filled by Tonio Casapinta who was next in line according to the results of the last Council election held in March 2013. The other position will remain unfilled for the remainder of the term in view of the fact that there were no further candidates in those elections from the Service Providers Economic Group. Mr Casapinta was also elected as Member of the Board of Management.

06. Meeting with Minister Evarist Bartolo On 19th August, Director General Kevin J. Borg, and Sectors, Development and Research Executive Robert Tabone Valetta met the Minister for Education and Employment, the Hon. Evarist Bartolo, to discuss the Chamber’s practical recommendations with respect to the further development of internship opportunities for students in business. Mr Borg explained that the Malta Chamber had good working relations with the main educational institutions of the country, and strived to contribute to the improvement

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of courses to address rapid developments in the labour market. He explained how collaboration with MCAST had led to the creation of a Diploma for Manufacturing Excellence and an apprenticeship based diploma for Polymer Process Technicians, which sought to address a specific market shortage. Reference was made to the recently signed Memorandum of Understanding between the Malta Chamber and the University of Malta to provide a general guiding framework for collaboration. Mr Borg explained a number of criteria which the Chamber believed should be in place for a successful internship scheme, ideally including ECTS recognition. The Minister expressed agreement on the importance of a holistic education strategy, the emphasis on soft skills and the importance of practical exposure during the students’ development. He reaffirmed his commitment to shift students’ learning experience closer to work-place realities and explained that he would continue holding consultations with various stakeholders.

07. Board of Management meeting with MEP Marlene Mizzi MEP Marlene Mizzi met with the Malta Chamber’s Board of Management on 19th August. The meeting formed part of a series of familiarisation meetings being held with new MEPs. Malta Chamber President David G. Curmi welcomed Mrs Mizzi to the Malta Chamber. He spoke about the importance of exchanging views with Government Ministers and MEPs and the need for export-led economic growth. Mrs Mizzi is no stranger to the Malta Chamber as she had served on a number of Committees, as an Officer and also as Council Member. As an MEP, Mrs Mizzi forms part of the Group of the Progressive Alliance of Socialists and Democrats in the European Parliament. Her portfolio includes economic and monetary affairs and she is Vice Chairman of the Committee on Economic and Monetary Affairs. Mrs Mizzi expressed her willingness to work for the benefit of the Malta Chamber and its members. Mr Curmi informed Mrs Mizzi about the Malta Chamber’s obligation to escalate the matter concerning the maximum levels of aid allowable to commercial undertakings post 30 June 2014. This was a result of Malta losing its previous Objective 1 ‘A’ Region status and falling under the new

more developed assisted area ‘C’ Region status and also the European Commission’s impending decision on new Regional Aid Regulations coming into force in July 2014. Mr Curmi said that the Malta Chamber had sought to take an active role in the consultation process on the Programming of European Funds for Malta for the 2014-2020 period. It favoured a more active role for the private sector in the use of EU Funds for small and micro businesses and agreed with the declared approach for the funds to be utilised towards achieving Malta’s socio-economic balance and in support of Europe’s 2020 targets. The Malta Chamber was in agreement with the open and horizontal approach adopted by Government in terms of the funding priority streams. The Malta Chamber’s initiative to outline its views on shaping Malta’s Economic Vision for the next five-year period was also discussed. The Malta Chamber’s vision would serve to provide the country with a renewed sense of purpose and economic direction.

08. Malta Chamber discusses the social and ethical issues of the sustainability of healthcare systems with the Auxiliary Bishop and Vicar General of Malta Malta Chamber President David G. Curmi led a Malta Chamber delegation to a meeting with Auxiliary Bishop and Vicar General of Malta, Mgr Charles J. Scicluna to discuss the social and ethical aspects of healthcare in Malta. The meeting was held at the Archbishop’s Curia on 28th August. The delegation included the Chairmen and representatives of the Healthcare, Pharma Manufacturing and Pharmacist Pharmacy Owners Business Sections. All sides expressed their strong belief that sustainable health welfare has to be looked at on a long-term basis to ensure that real social benefit to society is enjoyed also by future generations. This underlines the social responsibility of having an efficient and cost-effective health system that caters for those in need. Wastage and inefficiencies are an abuse of responsible governance and also anti-Christian. The Malta Chamber pledged its endeavour and support to any action in relation to health care that will address the process of instilling responsible governance in society in general.

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09. Task group from Malta Chamber Manufacturers and Other Industries Economic Group discusses rent policy with Malta Industrial Parks The Manufacturers and Other Industries Economic Group recently set up a task group with Malta Industrial Parks Ltd (MIP) to review certain aspects of the rent policy agreement which were not covered by the present agreement. The members of this task group are Matthias Fauser, Charles Brincat, Kevin J. Borg and Lino Mintoff. On 29th August, the Task Group discussed the issue of rent on extensions for already existing companies. It was agreed that this matter merited a detailed analysis of the present procedure used in such instances. MIP confirmed its position that it would ensure that there was no unreasonable and unjustified burden on existing companies who were in the process of expansion. On the other hand, MIP asked for Malta Chamber’s support to ensure that all existing rent due was recovered to ensure that MIP would be in a position to function effectively in the interest of existing and future tenants.

10. Malta Chamber meets Shadow Minister for Health Malta Chamber President David G. Curmi chaired a Malta Chamber meeting with Hon. Claudio Grech, Shadow Minister for Health to discuss healthcare in Malta. The meeting was held at the Malta Chamber on 3rd September. The delegation included the Chairmen and representatives of the Healthcare, Pharma Manufacturers and Pharmacist and Pharmacy Owners Business Sections. The Malta Chamber delegation put forward its views regarding the need, in the national interest, to address the health care system in Malta and in particular the inefficiencies and unsustainable practices of the procurement and distribution of medicines. Both sides upheld the need to act fast on ensuring that more accountability and elimination of wastage is put in place. The Malta Chamber pledged its determination to take appropriate action to facilitate dialogue and to instil responsible governance in society in general.

11. Electricity agreement is encouraging for Business Media release issued on 11th September 2013 The Malta Chamber welcomed the Memorandum of Understanding in the area of electricity which was announced in September. From preliminary information which was made available, the agreement reached with China Power Investments Corporation was consonant with the Malta Chamber’s representations in favour of a secure, cost-effective supply of electricity for its members. As reported in the media, the basis of the announced agreement was encouraging in that it could serve to alleviate Enemalta’s current financial predicament as well as support Government’s plans to reduce electricity rates for business. The Malta Chamber looked forward to additional details about the agreement particularly insofar as the direct implications on business and possible economic spin-offs were concerned.

12. The removal of ecocontribution discussed with Minister Leo Brincat Malta Chamber President David G. Curmi led a Chamber delegation to a meeting with the Hon. Leo Brincat, Minister for Sustainable Development, the Environment and Climate Change. The meeting took place on 12th September. On this occasion, the Malta Chamber reiterated its position for the removal of eco-contribution. The Malta Chamber argued that the tax was clearly not meeting its objectives in terms of ensuring the fulfilment of environmental obligations. Furthermore, after almost a decade since it has been introduced, the authorities remain unable to properly enforce the tax. Ample examples and hard evidence was again provided at this meeting on serious difficulty in enforcing the law particularly in terms of plastic bags and products falling under the WEEE definition. The Malta Chamber pledged its full cooperation to the Ministry in ensuring alternative workable schemes for the private sector and which should cover packaging waste, electric and electronic products and batteries. At the same time, the Malta Chamber followed up on a timely solution to the outstanding refunds on ecocontribution relating to 2009 and 2010.

Amongst other items, both sides discussed the potential of green jobs for Malta, the ongoing consultation process on the new Waste Management Strategy and WasteServ. In this regard, the Minister shared the main outcomes of various reports commissioned on the operations of this state-owned company. The Malta Chamber, on its part, suggested greater involvement of the private sector in areas where WasteServ has previously crowded-out private sector initiative.

13. Malta Chamber participates in ‘Women on Board: A Public Dialogue with your MEPs’ Malta Chamber President David G. Curmi attended a Public Dialogue organised by the European Parliament Office in Malta and the National Council of Women. The event was held at Europe House on 13th September. The session delved into the need to improve gender balance among non-executive company directors and other high managerial positions – an item which has recently been placed on the European Union’s political and legislative agenda. Mr Curmi explained the importance of looking beyond gender issues, qualifications and academic background. Efforts should be made to pursue different individuals with different skills as this could help improve the potential of businesses. He said that gender differences resulted in a diversity of skills thereby emphasizing the importance of women to the world economy. In conclusion Mr Curmi said that proper governance was needed for any legislative intervention to succeed in reducing gender gaps among employment rates. The session also included a panel debate during which a number of business executives and personnel in high managerial positions voiced their opinions. The majority of those present agreed on the need for a strong educational system that supported diversity and equality. Mariella Scicluna from the Malta Business Bureau, delivered a presentation on the outcome of a comparative study on family friendly measures. It was established that flexible work arrangements were beneficial to economic growth as they helped women achieve an improved work-life balance.

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CC finance Jesmond Mizzi, Managing Director of Jesmond Mizzi Financial Advisors

Gleason Bezzina, Director of Bezz Real Estate

Where should you invest your money? From financial investments to property ones, Jo Caruana looks at the different opportunities that could help grow your portfolio.

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nless you’re naturally that way inclined, the need to invest can creep up on you. Whether to save for future business plans, to make the most of current capital, or to put aside enough for a substantial pension, it makes sense to look at your options as soon as possible. However, as we discover over the coming pages, there is no ‘right’ way. In fact, there are various options as to what you could choose to do with your money, and each has its own set of pros and cons.

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“It makes sense to vary your investments, with some equities and some bonds.” – Jesmond Mizzi

Financial investment “The financial world has had a good year so far, both on the local equity market and on the international scene,” explains Jesmond Mizzi, the Managing Director of Jesmond Mizzi Financial Advisors. “European equities are, on average, up by around 10 per cent, while in America, the S&P 500 is up around 18 per cent and the Dow Jones Industrial Average is up around 15 per cent. Meanwhile, the local equity market has also enjoyed some success having gained eight per cent year-to-date, with most of the leading banks performing well and the smaller companies on the Malta Stock Exchange also holding their own. This has meant that, by and large, investors have had a good run of it, both here and overseas. “When it comes to bonds, which is still where most local investors choose to put their money, it has also been a stable year, especially when you consider the global and European economic situation. “If you plan to start investing or developing your portfolio, it’s vital to look at what’s been happening. You have to know where you fit in and what you hope to achieve. If you want a higher income, you

Jesmond Mizzi’s Top Tip:

If you want to generate income, invest in both bonds and equities. You also need to look globally; the world is linked

have to invest in high yield bonds or buy long-dated bonds as interest rates have been low for a long time. This means that investors have had to take greater risk. With this in mind, investors should consider investing in equities which provide the potential of capital growth and could benefit investors if interest rates do move up some time in the future. Equities are riskier than bonds but investors could diversify both locally and abroad by investing in funds. In my opinion, it makes sense to diversify your investments with some equities besides bonds.” It seems that one thing is certain though – it’s best to get onto the investment ladder as soon as possible. “Statistics show that the earlier you start to regularly invest, then the better your average results will be in the long run. How much you can invest depends entirely on your commitments so, as you go along, you must keep assessing and monitoring, so that you increase the amount of your savings as you get closer to pensionable age. It’s a longterm view but it works. Meanwhile, we have also heard that there could be incentives announced in the near future to help people save and invest, as well as pension plans. We hope to know more soon.”

nowadays and there is so much out there. Be aware of what’s available, establish your risk profile and risk attitude, and

tweak your investments as you progress. Finally, always seek professional advice from a licenced professional. OCTOBER / NOVEMBER 2013

CC finance

“Buying a quality property to live in or rent out is a solid investment at the moment, as the market demand for these properties is high… our main recommendation is always ‘location, location, location’” – Gleason Bezzina

Property investment While property, whether residential or commercial, has long been the investment of choice, recent developments have led many to question if it is still viable. “Buying property does have its risks, but with bank requirements, notary searches and architects’ reports, you are certainly minimising those risks,” explains Gleason Bezzina, director of Bezz Real Estate. “Of course your best investment depends on your capital and expected return, as well as your expectations. Demand and supply balance out the market and dictate market price, so it’s worth considering an investment in a market like ours, where property prices have always appreciated in the short and long-term.”

Gleason Bezzina‘s Top Tip:

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Our motto is work hard, play hard! This means that if you can work hard and make the right investments now, then you could be playing hard in a decade or so. At this stage it’s important to

Ms Bezzina also explains that you have to factor in your expected return and timeframes. “Maltese law and the accompanying process for buying and selling property is very solid and, in my opinion, very safe. However there are timelines that you have to take into account, and these should be factored in when you calculate your desired return on investment. “Buying a quality property to live in or rent out is a solid investment at the moment, as the market demand for these properties is high. Our main recommendation is always ‘location, location, location’, as this makes a huge difference to the results too. The better the place you choose to buy, the better return you can hope to enjoy.”

identify your needs in advance, to search for the right property to suit your requirements, to narrow down that search, to view it with a reputable consultant, to compare it with

other similar ones and, finally, to make a decision. The right property really is key to your future investment success, so it makes sense to be sure.

CC finance

Other options If you’re still looking for other investment opportunities, then we suggest you consider some of the following: • It seems that fine art can be a fine investment. Although it depends hugely on the artist in question, and the style and size of the piece, international auctioneers have suggested you can hope to make between one to four-point-nine per cent on your investment. Just be sure to do your research beforehand, to ensure you are not over-valuing a potential purchase. • As the price of gold is still relatively high and silver is on the rise too, jewellery is still considered to be a very good investment. Of course it make sense to invest in quality, collectable and rare items, especially as something special really should appreciate substantially over time. • Again, antiques make for an excellent investment if you can get your hands on something that’s either in demand or unique. Whether you hope to make substantial amounts of money or not, always invest in things you like, beware of fakes, and look out for signs of restoration. cc

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What to look out for when buying property “Since the late 1980s, Malta’s property prices have increased drastically, giving rise to a very important sector for the Maltese economy. New towns and villages sprung up, boosting prices, and the demand to buy was greater than the market could supply, which resulted in a money-making machine for a lot of developers who were buying sites and old houses, and converting them into flats. Since the demand was high and the supply was limited, apartments started to get smaller and eventually prices still continued to rise, which made it more difficult for certain segments of the market, like firsttime buyers, to buy and own a place. In the mid-2000s, property prices reached their peak, and the small, dull places, which were often the only option for first-time buyers, could not sell. As one of the most densely populated countries in the world, Malta has limited area for building purposes and as a result land is more precious than gold. Prices in fact remain stable for the sought-after locations and they have actually increased, even after the 2009 economic downturn. Buying quality property to live in or rent out is a solid investment at the moment as the market demand for these properties is high. However, always keep the location in mind. Property rental return on investment is at least five per cent PA, plus appreciation on the property itself is of at least four per cent, which in today’s business climate is a decent return of nearly nine per cent PA in a stable market, where no price drops or extensive supply could skew the market.

Our agency is young and energetic. With the customer at heart, we do not consider our clientele as a means to make money, but rather we prefer to provide a service to solve people’s problems. Our aim is to bridge connections and make it as easy as possible for tenants and landlords, owners and prospective buyers. We go out of our way to ensure customer satisfaction and in fact we get referred to other potential customers by word of mouth. For us, good customer experience and interaction with our clientele is key to ensuring we keep our promises and deliver what is agreed and expected.” Gleason Bezzina, Director of Bezz Real Estate Bezz Real Estate is the start-up of a new company situated at the heart of St Julian’s, which started off from a very minor company, Bezzina Properties, holding only a few apartments. Some years later, we launched a new business company under Bezz Real Estate with an extensive property portfolio, catering for each individual. Each and every one of our clients, be they large or small, is equally important to us. We intend

to be here in the future, and are making sure our aptitude is unique and made to fit all our customers’ needs.

Tips for buying or renting a property: • Ask yourself what it is you need. Forget wishes or dreams, be realistic. • Set a budget and a contingency plan. • Identify what you want: location, type of property, size, etc and carry out secondary research to identify property through newspapers, the internet and by talking to people you know and trust. • Narrow down your search and visit a handful of properties. Try to find the costeffectiveness of every property and what you like about it, relative to its price. • Ask the right questions to the owners: why they want to sell and any information about the property. • Engage with all the professional people you need to talk to (bank, notary and architect) and do all your homework well. Make an offer if you’ve decided to buy, as good properties always sell. cc

BEZZ Real Estate 57, Gorg Borg Olivier Street, St Julian’s. Tel: 2060 6020; mob: 9989 8588; email: gleason@bezzrealestate.com

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CC meet the artist

Life through the lens Photographer Chris Diedo doesn’t let Down’s Syndrome get in the way of his art, recently exhibiting his work at the Malta High Commission in London. Here he, and his photographer father Andrew, chat to Jo Caruana about Chris’ inspirational success so far.

hris Diedo is still on a high after his recent exhibition at the Malta High Commission in London. And it’s no wonder – it would be an honour for anyone. But for Chris, this honour is extra special because it underpins just how far he’s come. As a young man with Down’s Syndrome, his talents may have gone unnoticed or even been dismissed but, thanks to Chris’s family, friends and his own determination, he has certainly managed to achieve great things through his love of photography.

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CC meet the artist “My first memory of any kind of art was painting at school,” says Chris. “I used to draw a lot at home, especially after watching an X Files serial. I also used to use my dad’s camera to take pictures of him. “A while later I asked a local centre if I could hold my own photographic exhibition there because I knew my pictures were good and I wanted to show them to people. I felt that if my dad, a photographer born to Maltese parents, could have an exhibition, so could I.” Although Chris never trained as a photographer, he did spend years out and about with his dad, watching him take photos and developing a style all of his own. “He’s been my teacher,” he says with a smile. “He’s definitely the photographer I look up to most as he’s really good!”

“I get to share the world I see through my camera with people who look at my pictures.”

Asked about the things that inspire him, Chris explains that it is, often, the photography process itself. “I feel good when I’m out there with my camera. I really enjoy taking pictures at the seaside and in spooky places like tunnels and graveyards. I am also inspired by the characters I see in places doing different things, such as the people I shot in Valletta and who formed the inspiration for my London exhibition. “I really love the whole photography process. I get to share the world I see through my camera with people who look at my pictures. Sometimes, if my photos do well in competitions, I get to meet famous people from Eastenders, or Gavin and Stacey, two popular TV shows in the UK. There have been countless exciting moments, some of which I could never have imagined. “I’ll admit that I don’t always feel like taking pictures but when I do, I usually take lots of stills of the same thing or person but in different ways. I have a habit of tilting my camera – it’s my idea and I shoot from different angles. It seems to work for me.” Since his first exhibition, Chris has shown his work in other high profile places. “I’ve had showings in Kent, across London, in New York and in Malta, but it all started for me as a photographer back when The Mick Jagger Centre in Dartford gave me my first break. I would consider that to be my career highlight in the UK because it was that venue which introduced my photography to the world. It was thrilling when BBC Kent Online featured me, and I have since progressed to having a website of my work too.” On one particular day, Chris goes on to explain, that website had over 800 hits, largely because Fr Joseph Mary of EWTN, a global Catholic TV network, read out an article about Chris on Sky TV, sparking lots of interest in his story.

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CC meet the artist

“It’s incredible what can be achieved when people believe in us and give us a chance.” “Without a doubt, though, my career highlight and first break in Malta came when David G. Curmi, the CEO of MSV Life, invited me to exhibit in Valletta in 2011. I am so grateful for his help, as well as the help of the then-Minister of Tourism and Culture Mario Demarco, who inaugurated the exhibition at the Auberge d’Italie, as well as the Malta Tourism Authority for their backing too. The exhibition got some wonderful press, and Malta International Airport later showcased my work too, which I hope gave many more people the chance to read about and experience it. “I have also, until recently, had an exhibition on at the Malta Chamber. It was absolutely fantastic. Mr Curmi, the Chamber President, and his company MSV Life, have a long tradition of recognising the special skills of people with learning difficulties on the Island. I am very thankful for that.” Following on from his success in Malta, Chris’ recent London exhibition also made the news. It formed part of an event to mark the anniversary of Malta’s Independence Day. “It was an exhibition of 12 of my Valletta pictures and the event was called Valletta: Through the Eyes of Christopher Diedo,” Chris continues. “It was a really proud

moment for me, especially when the new High Commissioner, H. E. Norman Hamilton, introduced me and invited me to speak. “I was also presented with an engraved glass plaque in recognition of my work, so it was a very special time. There were lots of ambassadors there from all over the world and my family came to support me on the day. I met some people from Chichester at the High Commission and they told me that their city is twinned with Valletta. They liked my pictures so much that they’ve asked me to exhibit them there in the summer. It’s been an incredible journey so far.” Now, eager to continue taking photos and develop his dreams, Chris has definitely become an inspiration for other artists with learning difficulties. “My dad says that when the public see my pictures it helps them to realise just what people like me might be able to do. It’s incredible what can be achieved when people believe in us and give us a chance. “My ambition now is to exhibit my pictures in Melbourne, Australia, and to invite the cast of my favourite TV series, Neighbours, to come along and see my work. I really do believe that you have to aim high in life, and I want to continue doing just that!” cc

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CC make the headlines

Managing your migration to SEPA The Malta Chamber recently organised an information session on SEPA migration for its members, in collaboration with the Central Bank of Malta and the Malta Bankers’ Association. During this session it was explained that as from 1st February 2014, all EU member states in the Eurozone should become fully compliant with the Single Euro Payments Area (SEPA) Regulation1. In noneuro countries, the changeover date is set to 31st October 2016. The SEPA Regulation establishes the technical and business requirements to replace existing national credit transfers and direct debits schemes in euro, into SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD). The rationale behind this EU Regulation is to harmonise retail payment schemes across the 33 SEPA countries for any organisation or individual making or receiving payments in euro. In a nutshell, the SEPA project will enable a payer to make fast and secure transfers between bank accounts anywhere within the SEPA countries in exactly the same way as one does in a domestic environment, and at the same cost. The SEPA migration affects banks or payment service providers (PSPs) and also payment service users (PSUs) such as corporates, small and medium-sizedenterprises (SMEs), public administrations and government agencies. The preparation and actual implementation of the SEPA migration process requires considerable effort and time. Naturally, the preparations that are needed may vary from one organisation to another as these depend on the complexity of the

payment processes that are in place at the respective organisation. Past experience of SEPA migration implementation indicates that this process can take from a few weeks to several months. An organisation should commence such a migration project with a clear and structured plan in mind. In other words, the organisation should embark upon establishing the scope and the beneficial end-result of the changeover from the existing payment systems that are being used. At this point, an organisation should at least start evaluating which local payment products and reporting processes are being used internally and if payments and/or collections are handled manually or uploaded through file transfer. Migration to SEPA requires an organisation’s payment software systems, whether this is a payroll or an accounting package, to become capable of supporting the International Bank Account Number (IBAN). Thus, it is essential that an organisation starts collecting the IBANs and Bank Identifier Codes (BIC or SWIFT codes) of its clients. In fact, the Basic Bank Account Number (BBAN) that, in many occasions, is still being used in a domestic environment shall be converted to IBAN in order to be used within SEPA. Eventually, the IBAN

will endure while in Malta the BIC will no longer be required as a mandatory field in transactions as from 1st February 2016. Another major change in an organisation’s system will be the requirement to produce SEPA-compliant ISO 20022 XML file formats for SCT and SDD file transfers. These new file formats will replace the legacy files that are being accepted today by banks when organisations submit credit transfers in bulk, like in the case of payroll payments or direct debit collections. When the necessary software upgrades are in place and data has been converted, the organisation will be in a position to test its payment process with its bank, before going live. Switching to SEPA can act as a major benefit to an organisation as it brings about one uniform transaction and reporting format, and it leads to lower operational costs. It can also simplify account management as accounts can be centralised in one location and enhances reconciliation due to improved reporting data quality. The SEPA platform can also aid in being a useful step to get more insight in returned and rejected transactions. Finally, SEPA migration can be a trigger to centralise infrastructures and continue the momentum on realising the benefits of the European internal market. cc

EU Regulation No 260/2012.

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STYLE

06. Tied Down

Best Dressed

Research shows that the right workwear can make all the difference to success in the boardroom, as well as boost those vital first impressions. Here we choose the items that will turn heads in just the right way. 01. All White Nothing beats a crisp, white shirt on those days when you’re going for chic simplicity. Whether you’re wearing it under a waistcoat, blazer or tux, just be sure it’s perfectly ironed – creases quickly ruin this look!

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A classic tiepin will never go out of style, and this one would make a fantastic investment for anyone. Contemporary and elegant, it is made from 18ct white and yellow gold, and set with two single diamonds. It is also limited edition, and only five were made like it anywhere in the world.

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07. Floral Touches Ladies, keep memories of spring and summer alive with pretty floral touches. Add to a skirt, dress or blouse – just like this one, which we think embraces a hint of countryside glamour.

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02. Wrap Up Statement men’s scarfs are a staple this season, following on from a similar trend in women’s wear in 2012. Whether you want to dress your outfit up or down, choose a patterned version, perhaps in one of this season’s most popular hues, which include grey, navy and vibrant pink.

For the days when you don’t have to feel really formal, these Helmi trousers by designer Stella McCartney do the trick. Made from silk crepe de chine and with an elasticated waistband and ankle cuffs, they’re both laidback and very stylish all at the same time. Pair with statement heels and a tight t-shirt for an on-trend ensemble.

03. The New Leather Jacket

09. In at the Waist

This long shearling coat by luxury Italian fashion house Ermenegildo Zegna transforms the fashion rules related to leather jackets – suddenly making them smart enough for work. It’s rich and luxurious, and will be both stylish and functional as the weather turns colder.

A statement belt can really add interest to any outfit, even if you’re choosing to dress in head-to-toe black. If you only buy one belt this season, make it one with a strong pattern or print. cc

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04. Burgundy’s Best This is another runway trend that’s been embraced in subtle ways. Aside from the other colours we’ve mentioned, burgundy is definitely the hue to be seen in this autumn. If you’re not sure about a burgundy blazer or pair of trousers, try shoes in the same shade instead.

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05. The ‘IT’ Bag A bit like James Bond, the real ‘man bag’ should be ready for everything – and we feel this bag is exactly that. It may be part of the weekend collection at Bulgari, but we think it would do a great job of taking you from work, to gym, to cocktails.

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STYLE

Finishing Touches

REVIEW

Whether you’re updating your home or office, the right finishing touches will make all the difference. This is our pick of the latest must-haves.

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01. The Perfect Chair Every office needs a really great chair – somewhere for guests to sit before meetings, or an imposing piece that sets the tone for your ambience. This issue, we’ve fallen for this: the Olympus by British furniture designer Aiveen Daly. Hand sculpted and fluted, the dusky pink satin will stand out with understated elegance.

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02. Posters that Pop Add personality to your workspace with vintage posters, such as this one by AntikBar. Posters are a great way to add colour and an individually unique statement to any room, and genuine antique versions are now highly collectable and recognised as a sound investment.

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03. Surf’s Up! Calling all sea lovers who want to bring a bit of the outdoors in! This innovative coffee table (ideal as the centerpiece for a meeting room or lounge area) is inspired by the gentle, elongated shape of a surfboard. Now all that’s missing is the sound of the waves!

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04. Filed Away For Another Day Every office needs a filing cabinet, but it doesn’t need to be boring. Take these versions by designer Suzie Newton for instance, which are upholstered in fabric or a combination of patchwork. Pretty and useful at the same time, plus they’ll keep all that paperwork out of the way until it’s time to tackle it!

05. The Office Run Do you have a long walk from your parking space or bus stop to the office? Well, worry not, because we’ve found a super solution for your sore feet. Simply walk to work in your comfy, flat shoes, while carrying your pretty work footwear in this handy shoe bag. That way you don’t compromise on convenience or style!

06. Retro Chic ‘Upcycling’ is one of the latest trends for interiors, and it makes use of old pieces of furniture that simply need a little love and attention. This distinctive range by the UK-based Little Tree Furniture is made from reclaimed sea boat timbers, is environmentally-friendly, and is handmade by master craftsmen using traditional carpentry techniques.

07. Perfect Prints Simply looking for that little touch to complete a room? Well, believe it or not, cushions make all the difference – especially if they’re in a print that complements the rest of your décor. These two cushions are ideal examples of that, and they add a sense of whimsy too.

08. Proud Display Whatever the subject, don’t hide your books away in a cabinet – display them proudly! This tongue-in-cheek book holder is the perfect example. A bit barking mad perhaps… but stylish all the same. cc

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CC the debate Edward Scicluna

Lawrence Zammit

Beppe Fenech Adami David Spiteri Gingell

Does our evolved economy need migrants who arrive in Malta irregularly? If we hope to keep growing, we need controlled and wellmanaged external inflow – Finance Minister Edward Scicluna The argument on the street mostly revolves around the notion that Malta is being forced to support immigrant workers who come to our shores irregularly. But does their arrival offer any positive impact on our economy? Jo Caruana speaks to four experts to find out.

OCTOBER / NOVEMBER 2013

s irregular immigration damaging our economy? This is a question on many people’s lips, and the answers often come thick, fast and resentfully.

But what are the facts of the matter? According to David Spiteri Gingell, the managing partner of Vid&Co Business Consultants Ltd, irregular migrants should be encouraged to become active participants in the labour market. “In my opinion the impact is currently negative,” he says. “Irregular immigrants are not allowed to actively participate in the labour market; and hence constitute a burden on the economy. This should not be the case. In many instances these migrants are also informally employed under conditions that do not reflect the labour laws. If they were, it would minimise such abusive behaviour.” 105

CC the debate

Meanwhile, Finance Minister Edward Scicluna is adamant we should split the issue. “One aspect of irregular migration is a moral issue, and also an issue to do with the European Union,” he says. “It has to do with the EU’s obligation towards us – in return for fulfilling our obligations; we want our burden to be shared.” He argues though: “what I can say is, with the way our economy is evolving, it does need an injection from abroad. Preferably, migrants would be selected in terms of their background. We have pockets of areas where we are not finding people in a number of sectors – sometimes high-level areas and sometimes quite low; areas that the Maltese people don’t want to get involved in. These jobs still need to be done. Because ours is an ageing population, if we want to continue growing, we need external inflow, but it must be controlled and well-managed.” Nationalist Party Deputy leader Beppe Fenech Adami is of the opinion that the issue of immigration has several facets that need to be considered, even from the economic perspective. “The fact is that whilst these people are in Malta, we need to allocate public resources to provide them with shelter, food, education and clothing,” he says. “As a country we do have a moral duty to respect such people coming from difficult, and, often war-stricken backgrounds. However all this comes at a cost to the country and is therefore in itself an economic issue.” Dr Fenech Adami explains that, on the other hand, a number of irregular immigrants are now in full or part-time regular employment and therefore economically independent. 106

“We need to set up the appropriate structures for the better integration of immigrants who have been granted refugee status or international protection into our labour market.” – Beppe Fenech Adami

“Their expenditure is an injection into our economy. Thus, whilst one could argue that part of our country’s resources are being spent to address the immigration reality (when such resources could have been spent on other projects and initiatives), the alternative fact is that, today, a number of these migrants have successfully integrated into our systems and workforce, and are even contributing towards our country’s economy.” On the subject of the types of jobs that migrants take on, economist and founding partner of MISCO, Lawrence Zammit asserts that migrant workers shouldn’t only be doing the jobs that Maltese people do not want. “We need to understand what their skills are so that they can contribute. It is absolutely vital, and I think the time has come for us to have a serious, high-level debate on this.” Asked about the impact on Malta’s economy from a competitive point of view, and in light of our economy absorbing irregular immigrants within its structures, Mr Zammit says he believes that that is exactly why they should work, so as not to take up other resources.

“Immigrants, no matter where they have come from, must be employed within the legislation; they should not be earning less than minimum wage or working outside the conditions stipulated by law. Employers who don’t do this are going against the law, and also creating unfair competition for those who do follow it. “In Malta we need to realise that we can no longer think of ourselves as a low wage economy, and should therefore not be developing businesses and a business centre that makes itself competitive by employing migrant workers on a low wage. We need to be competitive for other reasons.” For Mr Zammit it all boils down to the creation of a better system, with both public and government structures. “Of course our country and population are small, so we need to be careful about numbers, but creating systems that are intended to keep these people from not integrating is not right. Let’s start by understanding their skills and finding jobs in line with their capabilities,” he says. Dr Spiteri Gingell is of the same opinion. He explains that Malta has been transformed OCTOBER / NOVEMBER 2013

CC the debate into a knowledge society with talent as the key to success. “Countries such as Canada, US and Australia are continuously seeking to attract such talent in order to strengthen their respective competitive base,” he says. “Not only should Malta do the same, but it is compelled to do so: our size limits us from having the talents that this country needs to survive, let alone grow, in today’s global environment.” Also adamantly pro the importance of integration, Prof Scicluna, who is also a prominent economist, stresses that it will not help Malta if people who have settled here long term are discriminated against. “That’s not only morally incorrect, but also very bad for the economy,” he says. ‘So, as with most countries that have accepted regular immigrants, it is very important to find policies and programmes with which to integrate them. They need to know the language, to pay their dues and so on. But like I said, these are not temporary people, but permanent people of different nationalities.” Dr Fenech Adami, similarly, believes that “for our economy to keep on growing we do need to increase the number of people in employment. This means having a higher participation rate among the Maltese. It also means making good and appropriate use of

the supply of labour provided by immigrants. “I also believe we need to set up the appropriate structures for the better integration of immigrants who have been granted refugee status or international protection into our labour market,” he says. “This is one of the areas where the EU should provide support. There is no doubt that giving the necessary labour skills to such people would be beneficial to them and to the country as a whole. Such an initiative would also empower and help these immigrants to integrate into other EU countries.” Dr Fenech Adami stresses that individuality should be promoted. “This issue implies that immigrants, legal or otherwise, should be asked to take on jobs of a menial nature; the jobs the Maltese do not want to do. However, the Nationalist Party has always sought to promote the dignity of the individual and immigrants are no different in this respect.” Finally, it is vital to consider the fact that there is also a significant number of EU nationals working in Malta, and that this can also impact the economy. Dr Spiteri Gingell claims that “the number of EU nationals working in Malta is relatively large. I believe in so far that such people are employed legally, that their presence enriches the local economy; they increase

the talent pool. We should, in fact, be actively seeking to attract the best and the brightest to Malta.” Dr Fenech Adami agrees. “It is very evident that, apart from immigrants arriving from Africa, Malta is experiencing an influx of people from other EU member states,” says Dr Fenech Adami. “I am adamant that the arrival of EU nationals opting to work in Malta has and will continue to have positive impacts on the Maltese economy, provided that such foreign nationals operate regularly and according to laws on paying all taxes and other contributions.” Considering all aspects of the argument Prof. Scicluna states that, while the fact that EU migrants are moving to Malta is, generally, beneficial, it has also hurt a lot of sectors and the country’s low occupational rates. “Most of the jobs for people will limited skills have been taken over by immigrants or even EU nationals like Sicilians. They are doing so with higher quality at a lower cost, and therefore have hurt a certain segment of our population for which it is very difficult for us to find jobs. “That strata (of society) has been hurt, but overall for the economy, this mixture is better,” he concludes. cc

“We need to understand what their skills are so that they can contribute. It is absolutely vital, and I think the time has come for us to have a serious, high-level debate on this.” – Lawrence Zammit

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FASHIONABLE FOODS

Food, like most other things in today’s world, has fallen prey to trends and fashions. Chiara Bonello looks into the food trends for the coming months. 01. Fruit in a Bottle There is no denying the benefits of fruit. The local Smoochie brand is synonymous with fresh fruit, which comes in the form of 250ml bottles. Free from any processing, concentrates and additives, all the fruit is sourced extra carefully and each Smoochie smoothie contains around five different pressed fruit, at least two of which are our recommended five-a-day. The smoothies are found at major supermarkets, confectionaries and groceries, and can also be delivered to any local business at a special price. There are no more excuses to get healthy now!

06. Bottled Cocktails Maintaining consistency when serving cocktails in large amounts can be fairly tricky, but with the return of high quality, ready-to-go options of classics life is easier once again. A new cocktail trend is emerging in fact, with operators increasingly bottling their own drinks ahead of service. The trend started in 2011 when Clyde Common in Portland, Oregon, began the trend by ageing their Negroni in a bourbon barrel. As well as imparting a depth and smoothness to the drink it kickstarted the volume cocktail movement.

07. Plant-Based Diets There has been plenty of debate on which the healthiest diet for us all is – and it appears a conclusion has been reached, it’s a plant-based diet. Plants provide integrated health power that can’t be replicated by any pill or animal product. That doesn’t mean we can’t or shouldn’t consume them: it just means we need to make plants the base of our diets.

02. Haute Couture Hot Dogs

08. GMO Free

Starting in the USA, there has been something of a renaissance when it comes to hot dogs, albeit with a gourmet twist. These hot dogs are all about double-smoked blends of pork and beef with marjoram, topped with exotic treats such as caramelised lettuce.

It might appear to be common sense that consumption of natural products, rather than lab-made products, is better for us, and people are beginning to realise this. In fact around six million Californians recently voted for Proposition 37, a measure that would require the labelling of GMO foods. It is when food companies begin to realise that people want foods and supplements made of natural ingredients that the problem will truly begin to be solved. It makes sense to try to choose non-GMO foods. cc

03. Spice it Up! Both in terms of flavour, as well as from a health perspective, spices are a wonderful addition to most foods. Used on everything from meat to popcorn, they also have various health benefits and some even have healing properties, from antibiotic to anti-inflammatory.

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04. Keeping it Local From English mustard to French wine, there are countries which are particularly known for certain food products, and the emphasis today is on keeping it local, as food bloggers everywhere extol the virtues of drinking local wine and beer, and always opting for locally grown produce. Besides being about flavour, this is also a reflection of eco-trends, as locally produced foods require far less travel.

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05. Spanish Fare The Spanish resurgence seems to have begun – with its cuisine gaining popularity and tapas bars popping up across Europe. Huge cities, like Hong Kong, have become hotbeds of Spanish cuisine and their chefs and restaurants are consistently featuring in the list of top eateries and chefs from around the world – interest in Spain is high.

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CC Environment

Could an energy audit save you money? Servicing equipment, switching to solar and purchasing energyefficient products all lead to financial savings, as well as savings for the environment. Jo Caruana finds out what an energy audit could do for your business.

OCTOBER / NOVEMBER 2013

s companies continue to look for ways to save money on their energy bills, could an energy audit provide the solution? Put simply, such an audit takes the form of an inventory study of the energy consumption of a building. Through this audit, it becomes clear how your ‘energy map’ has developed, identifying areas of heavy consumption and investigating a solution that could help to reduce usage without impacting your operation. “After an energy audit is performed, you will have a much clearer picture of what classifies as energy waste within your organisation, and what is a necessity,” explains Ing. Mario Cachia, the Business Development Director at Alternative Technologies Ltd and a registered Energy Performance Assessor of Buildings (Dwellings).

“The good news is that people have definitely become more aware of the need to reduce energy consumption, as well as the benefit of investing in solar energy. Just like we manage our finances and our time, we have now started to manage our energy needs. “Our households and businesses are full of electric and electronic appliances and gadgets, so energy needs have increased. So even though the appliances consume less than older models, the fact that we have more of them means that consumption is still on the up. “That said, with some good energy management tips, as well as a small investment in some type of renewable energy, you can easily continue to enjoy all the benefits at home or work, without having to pay exorbitant fees. I definitely believe that solar energy is the way forward.

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CC Environment

We strongly propose that all new buildings should include some sort of solar energy, be it thermal or electrical,” he explains. With that in mind, it’s important to remember that there are many products out there on the market to help reduce consumption. “Most appliances and equipment are designed now with power saving in mind,” continues Ing. Cauchi. “From lamps to air-conditioning units and washing machines to computers, they all have energy saving ratings and hence drastically reduce your electricity consumption without changing the mode of operation.” Reiterating that, Martin de Bono, the Business Development Director and owner

of CD Power Solutions Co Ltd, explains that voltage optimisation helps to control incoming voltage, setting it to the required level without causing a risk to equipment. “The savings on this can be very dramatic,” he says. “We have achieved results ranging from eight per cent to as much as 21 per cent. In most places, the average was about 15 per cent, with a payback on investment achieved in less than three years. “Then, yet another technique is for water heating. Thermodynamic water heating is based around technology that captures heat from the air (not the sun) and transforms it to heat water, space, pools and all sorts of

other things. It’s the sort of technology that really could transform the way things are done, and the amount of money saved.” Of course, solar energy solutions are at the very forefront of audit suggestions. “There’s no getting around the fact that solar energy is a very good local option, both because of our abundant sunshine and thanks to the incentives that make it worth the investment,” continues Mr de Bono, whose company focuses on energy audits as well as the implementation of energy efficient projects. “Assuming roof space is available, there are many technologies to implement, of which most are good. The trick is to choose

“Just like we manage our finances and our time, we have now started to manage our energy needs.” – Ing. Mario Cachia

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CC Environment

“We strongly propose that all new buildings should include some sort of solar energy, be it thermal or electrical.” – Ing. Mario Cachia

a proper partner to mitigate your energy needs. In principle you should first aim to reduce your usage, and then to generate what is needed. This way you will be maximising on your investment because the ‘new money’ generated from savings can be directed into energy generation from the sun. Furthermore, from time to time, the Government also offers financial grants to make investment even more viable.” Ing. Cachia adds to this by explaining that servicing is also a vital part of keeping energy bills and consumption low. “Even

though many people do without it, servicing is absolutely necessary,” he says. “Regular preventive maintenance amounts to a saving in the long-run. “For example, when it comes to airconditioning systems, you need to clean the filters and ensure the refrigerant is well topped up, thus keeping it efficient. Likewise, in a solar water heater, an annual check-up ensures a more efficient heating system. A combination of all of the above will definitely guarantee headway when it comes to saving energy and money,” he adds. cc

Top Energy Saving Tips “Simple things can save a lot of energy – switch off lights to reduce the need for power, close your curtains or blinds to keep a room warm and open the window to cool it down. I also highly recommend using drip irrigation when watering your plants, as this could save up to OCTOBER / NOVEMBER 2013

70 per cent of the energy used if you water them sequentially. Finally, switch off your electric hot water heater during the day if it’s not in use and, of course, invest in a solar water heater if you have the space for it!” – Ing. Mario Cachia

“Monitor your system as much as possible, as this is definitely the best way to save energy. Once you know what is consuming the most, you will be able to benchmark any energy saving initiatives around

it. As you monitor, you can then implement more savings. Once you have that sorted, invest in solar energy too.” – Martin de Bono

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CC make the headlines

GasanMamo’s advice on adequate boat insurance

Most of us wouldn’t drive without adequate car insurance, but many boat owners spend year on year with insurance policies that are insufficient or inappropriate to their needs. Irrespective of the type or size of boat you own, your first priority should be to protect it and your passengers. Undoubtedly, a boat is always one’s pride and joy so you should always ensure that you are adequately insured and are ready for the unexpected. Boat products available in Malta are usually on a comprehensive basis although some clients may opt for third party liability cover only. Comprehensive insurance policies provide a wide range of insurance protection including loss or damage to the boat and equipment by external accidental means including but not limited to theft, stress of weather, stranding or sinking, collision or contact, fire or lightning, explosion, bursting of boilers, breakage of shafts, struts and propellers, and malicious acts or vandalism, accidents in loading or unloading and transit by road or ferry within Malta.

Comprehensive policies are also extended to cover third party liability, personal accident covering you and your immediate family for a fixed sum against bodily injury or death and additional costs including the cost of replenishing fire fighting appliances and expenses incurred in safeguarding the vessel, amongst others. Upon request, policies can also be extended annually or temporarily outside Maltese territorial waters so you can enjoy your boat abroad and can also extend cover for liability to and incurred by anyone engaged in water skiing and participation on racing or speed tests and for chartering purposes. cc For further information about GasanMamo’s Limited Boat Insurance products contact Steve Mizzi on tel: 2349 0203 and visit www.gasanmamo.com or GasanMamo’s Facebook Page.

CC make the headlines

The benefits of Allcare’s latest motor policy The Allcare Insurance Limited’s motor policy offers wider cover than a traditional motor policy and incorporates a number of additional benefits, which would usually come at an additional cost, as part of the standard coverage. The benefits include 24/7 roadside assistance on third party, third party fire and theft, and comprehensive covers. The maximum no claim discount of 65 per cent is attained after just three years claims free and policyholders having no claim in the subsequent year are rewarded by an additional good record discount of up to 17.5 per cent over and above the 65 per cent no claim discount. Comprehensive policyholders who benefit from full no claims discount will also benefit from having their no claim discount protected at no additional cost and therefore in the event of a claim within a policy period, policyholders will not lose their no claim discount on a subsequent renewal. The option to protect the no claim discount is also being offered to policyholders covered on a third party only and third party fire and theft basis.

Under the Allcare motor policy, there is no excess payable in the event of a third party damage claim for drivers aged over 21 years. Other standard benefits include cover for loss of keys, medical expenses, legal assistance for uninsured losses, personal accident cover, a replacement vehicle in the event of a claim, and breakage of glass and cover for personal effects inside the vehicle. Comprehensive policyholders travelling with their vehicle abroad will also enjoy automatic own damage cover for the first 30 days in any one period of insurance.

The Allcare comprehensive motor policy also protects the vehicle in the event that it is damaged by storm and flood which would also include damage caused by hail. Allcare’s commitment to its clients remains that of offering competitive and innovative insurance solutions in addition to offering a personalised and efficient service from the time one enquires about a product to when a claim is lodged and settled. cc www.allcare.com.mt; www.facebook.com/llcareInsuranceLimited

Experience Emirates Superior Business Class Every passenger, whether travelling on business or for leisure, is unique. Emirates Business Class adapts to every passenger’s needs at every step of the way, ensuring that the journey is as enjoyable as the destination. Emirates Business Class is all about luxury in the sky. Passengers receive personalised service by Emirates multi-lingual cabin crew onboard the aircraft. Savour gourmet cuisine and enjoy up to 1,500 channels of on-demand entertainment on ice inflight system – the largest selection of programming in the sky. The options on ice are endless. Ice system provides the chance to relax, to catch up on programmes or movies missed. Travellers can arrive at their destination feeling refreshed to enjoy the rest of the day and be ready to attend to their next business meetings. Emirates also offers a pleasurable on the ground experience to its passengers before they fly. Business Class travellers are offered complimentary chauffeur-driven service from Malta and Gozo, as well as on arrival at most Emirates destinations. This leaves travellers free to excitedly anticipate their holiday or business trip. At the Malta International Airport, the La Valette Lounge is a perfect place to relax 120

pre-boarding with complimentary food and drink on hand for those who would have missed meals whilst packing last minute. Around the Emirates network travellers can benefit from 35 Emirates dedicated lounges in international airports across six continents, including Emirates Terminal 3 in Dubai. These lounges can easily serve as extensions of their offices with full business centre facilities. On selected routes from Dubai onwards, premium passengers on Emirates’ exclusive A380 can enjoy onboard lounge areas on the upper deck, where they can network and talk business over a drink at 40,000 feet. All Emirates’ A380s are fitted with Wi-Fi, allowing full connectivity with the ground. Emirates currently connects passengers to 135 destinations in 76 countries across six continents. The airline operates four scheduled flights weekly from Malta to Dubai via Larnaca, Cyprus, on Mondays, Wednesdays, Fridays and Saturdays on a

Boeing 777-200. While on Sundays, Tuesdays and Thursdays, Emirates operates direct flights from Dubai to Malta and return flights fly via Tripoli. cc For more information call Emirates Sales Office on tel: 2557 7255, visit www.emirates.com/mt or contact the local travel agent. OCTOBER / NOVEMBER 2013

CC make the headlines Domestica Showroom – Valley Road PALM CITY Janzour, Libya – way finding signage by Big Exhibits

Big Exhibits has the best solutions for architectural signs that are designed to inspire and bring buildings to life. We create outstanding internal and external signage solutions for a wide range of market sectors, including corporate, education, retail, hotel and leisure. We combine intelligent sign design and a wide choice of sustainable materials to deliver high quality, future proof and fully compliant signage solutions into buildings and projects. Our team has a passion for powerful commercial signage creativity and a portfolio of market leading services including consultancy, signage strategy, sign design, sign manufacture, project management and installation. As a single-point-resource for the design, manufacture and installation of products, we are the first choice for powerful signage solutions, working closely with project architects and developers to create bespoke branded signage systems. Architectural signs that work do so because they meet objectives that are more than just skin deep. These are signs that help show the way in style – they communicate messages, create first impressions and

Foster Clarks – new factory, San Gwann

Cutting edge signage solutions

MSV Life – new offices, Floriana

promote an organisation’s brand in exactly the right light. At Big Exhibits, we design and manufacture signage solutions with the best materials and using sustainable products and technology wherever possible, such as LED illumination, innovative production processes and engineered precision that deliver durable, long-lasting results. Our signage is formulated to meet both the demands of the people they are designed to inform, incorporating health and safety

and functionality. Elements from internal lighting to external weather conditions require a well-thought-out approach to ensure signage continues to project, for all the right reasons, and to ensure that our solutions are the best and most innovative on the market. cc

the requirements for all types and sizes of weddings. Thanks to the size of its fleet, Meli Car Rentals Ltd is able to cater for a number of weddings simultaneously, without fear of failing in its high standards. Moreover, its experienced and qualified drivers are sure to deliver a professional and superior service which is to be expected of this long-established company. cc

Meli Limousines, 90, Fremond Street, Qormi QRM2379 Tel: 2258 0300; mob: 7960 1601; email: weddings@meligroup.com; www.meligroup.com

For further info please visit us at www.bigexhibits.com.mt Tel: 2131 8885, email: info@bigexhibits.com.mt

Choose the perfect car for your wedding day Once again the MFCC will be holding the annual Weddings Fair at Ta’ Qali. This popular event, which attracts huge crowds on the four days it will be held, is a showcase of all the items and services that go on to make a memorable and successful wedding. It is only natural that Meli Car Rentals Ltd, with its exclusive selection of Rolls Royce Vehicles, BMWs and Stretched Lincoln limousines; should be found on one of the stands in the Main Hall. In fact, this year, the company will be represented on stand A2. Not only will the company have on display two of its popular bridal cars, but it will also be offering special deals to those couples booking their wedding cars during the fair. Knowing well that the tastes of our clients vary, couples will have the opportunity to make arrangements to view the other vehicles the company can supply, but which due to limitations cannot be on display, after the fair closes. This can be done by making appointments to view the vehicles at our premises in Qormi at their convenience. Our experienced staff, who will be manning the stand, will be able to offer advice on

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CC make the headlines

VFM launches podcasts on its web portal Valletta Fund Management Limited (VFM) announces the upload of a number of podcasts on its web portal www.vfm.com.mt. These podcasts have been recorded with a number of Fund Managers who act as sub-investment managers to a range of investment solutions provided by VFM. Speaking on the launch of this new initiative, Mark Agius, Head of VFM, said “VFM is exploring this exciting medium that comes in two flavours; audio or video. These short clips have been uploaded

on our website for later viewing or listening. Audio podcasts give investors the opportunity to listen to funds’ update directly from the fund managers. We feel that podcasts can be used to educate existing and prospective investors.” He concluded “The objective of having a series of podcasts available on the Company’s portal is to make accessible various opinion pieces and other news value related to the Investment arena to prospective and existing customers. Besides

the fact that podcasts are a great training and educational tool, we feel that they offer a higher level of customer support as well as keep everyone in the organisation abreast of the company’s highlights.” This initiative also confirms VFM’s commitment to enhance, improve and support the well-being and knowledge of the local community. cc Log on to www.vfm.com.mt/press centre/ video library to view the podcasts.

Past performance is not a guarantee to future performance. The value of the investment may fall as well as rise and any initial fees may lower the amount invested and the amount received upon redemptions. Investments should be based on the full details of the Prospectus and Key Investor Information Document (Available for funds which qualify as UCITS) which may be obtained from BOV plc Branches /Investment Centres and other Licensed Financial Intermediaries. VFM is licensed to provide Investment Services in Malta by the MFSA. Issued by VFM, TG Complex, Suite 2, Level 3, Triq il-Birrerija, L-Imrieħel BKR 3000 Malta.Tel: (356) 21227311, Fax: (356) 22755661,Email: infovfm@bov.com, Website: www.vfm.com.mt. Source: VFM.

Years of great service by Customs and Freight Agency Ltd Our motto is “we are not only the best but also the most cost effective”. Over the years, Customs and Freight Agency Ltd pioneered in the logistic sector and managed to design its services around its clients and market demand, which has led to the

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company’s success. Malta, being an island but situated in the centre of the Mediterranean, has always been a hub and a sought-after commercial destination. Air freight service was dominant in the past years, however with the increase in competition by neighbouring countries, roro services was an asset for Malta and that is when there was a good boost in road transport. Our family business started this activity to and from our islands, and others followed. It was this foundation that helped Customs and Freight Agency to become one of the leaders in the logistics industry. Since its inception Customs and Freight Agency always made sure to move with the market needs and that was one of the main reasons why it was important to join forces with one of the leading and most established transport companies in our neighbouring island Sicily, Passalacqua trasporti & c srl. Today with such an alliance, Customs and Freight Agency Ltd

is one of the only companies that joins Malta with the rest of Europe on a daily basis, with daily departures and arrivals. Virtu Ferries has created a highway between Malta and main land Europe, and Grimaldi has established a bridge with northern Europe. The fleet of trucks and trailers is of the highest standards and designed to adapt to any requirement. Together with Passalacqua trasporti, we have all the certifications to transport all types of temperature-controlled commodities and recycling materials. With such foundations, we found it necessary to expand, so Customs Freight Agency Ltd has embarked on a project of creating a new cargo platform. In the next few months the company will be moving to its new depot to consolidate it various operations under one roof. The hub is state-of-the-art and comprises a trailer park, storage facility, loading and unloading bays, trailer wash, a main office and living quarters for drivers who visit Malta on overnight stays. Looking at the sound past gives us the energy to expand and create more logistic solutions to ensure that our customers are served in the best way and in the most costeffective manner. cc

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CC make the headlines

‘Best-in-market’ offers on home and car loans from HSBC Malta – Home loan interest rates starting from 1.99 per cent

HSBC Malta launched two new ‘best-inmarket’ fixed interest rate home loan offers and an equally attractive deal on car loans. These offers are set to close on 31 December 2013. The HSBC home loan offers are: 1.99 per cent fixed until 31 December 2014 and 2.7 per cent fixed until 30 June 2015. Both offers apply on new loans and amounts up to €1,000,000 although requests for amounts above €1,000,000 will be considered on a case by case basis.

The car loan offer provides a fixed interest rate of 4.99 per cent for the entire duration of the loan, which may be for two, three, five or seven years – although the latter term is only available for loan amounts of €10,000 or more. No early repayment fees will be incurred for early or additional repayment and further discounts on processing fees are available for HSBC Premier and HSBC Advance customers. “These new time-limited deals offer HSBC customers the most competitive home loan interest rates currently on the market as well as the peace of mind that only a fixed rate can give,” said HSBC Malta’s Head of Retail Banking and Wealth Management, Paul Steel. cc More information about HSBC Malta’s special offers is available on www.hsbc.com.mt, by calling Customer Service on tel: 2380 2380, or by visiting any HSBC branch in Malta and Gozo.

Sunday lunch the way you like it With the winter season approaching, the heart-warming Sunday lunch tradition resumes all over the island. Le Méridien St Julians Hotel & Spa has successfully revisited the formula and revived the concept. For the upcoming months at Scirocco restaurant, everyone is really spoiled for choice. Whether you are vegetarian, gluten intolerant, on a sugar-free diet or just very hungry, the new Le Méridien Sunday lunch menu gives you plenty of options. The new Sunday Lunch at Le Méridien St Julians Hotel & Spa offers a new and more comprehensive perspective to your dining experience. Whatever your preferences or dietary requirements, the creative kitchen brigade extends its menu to be able to better cater for everyone. With gluten-free options such as antipasti, soups, pasta, mains and desserts, it is a relief to finally see a catering establishment that goes further than just offering one fall-back dish to its glutenintolerant clients. As a bonus, there are also vegetarian and sugar-free alternatives on display. It is – really – a Sunday lunch the way you like it.

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This innovative Sunday lunch package is priced at €29.50 per person for food only with unlimited servings or €34 per person including free flowing wine. The enticing formula also includes a nice welcome drink, live cooking stations (and a DIY pasta corner for pasta lovers), a surf and turf table with sumptuous meat and fish offerings, entertainment for children, live background music and free parking (subject to availability). Children up to 12 years old eat for free and teenagers up to 16 years old pay only €25 per person.

Whatever it is that suits your fancy or your dietary needs, you will not leave Scirocco restaurant on an empty stomach. The choice is unrivalled, the recipes on display are inspiring and the quantity is impressive. A private Sunday lunch experience in the gorgeous White Room can also be organised on request (an extra charge may apply). The new Le Méridien Sunday lunch is definitely a great concept to experience throughout winter. cc More information on tel: 2311 0000 or email: infolmsj@lemeridien.com

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CC economy check

The Budget for 2014: Priorities to address Leading economist Gordon Cordina shares his expert opinion on the themes of Malta’s future development.

he Budget for 2014 will be presented in a context where the growth of the Maltese economy is keeping up but remains below the potential which our economy can and needs to attain in the medium-term. Growth is being driven by manufacturing and tourism, and the attendant multiplier effects, as other ‘new economy’ sectors are increasingly getting subject to growth fatigue. The overall context is furthermore dominated by an EU economic whose growth outlook is at best fragile. Crucially for budget policy, Malta needs to get its fiscal deficit to GDP ratio back on track to exit the EU Excessive Deficit Procedure as quickly as possible and in a sustainable manner. This is critical to investment and growth for a number of sectors, not least financial services. It is also an issue to which international credit rating agencies pay considerable attention. The promotion of economic growth concurrent with a reduction in the fiscal deficit may sound like a contradiction to many. Supply-side policies are often touted

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as the remedy to square the circle. These aim at increasing the available resources and their productivity to stimulate growth and generate more revenue for Government. The downside is that these policies typically require upfront investment, take time to yield results, and any low-hanging fruit they may offer, including for example, encouraging more women into the labour force, have already been picked. Future effective supplyside measures will most probably require significant expenditure of financial resources or political capital. Fiscal consolidation through improved efficiency also features prominently on the policy agenda. One can actually be surprised at how this theme features year-in-year-out, when one would expect that the pursuit of efficient management and elimination of waste would be the order of the day in public sector management. The essential point of the matter is that expenditure cuts often involve a number of hidden costs, either through reduced performance, cutbacks in services, or

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CC economy check

the reduction in income for segments in economy which are dependent on such expenditure. Expenditure cuts can be easily done only if the output received from it was zero or can be otherwise replaced, and if such expenditure can be compensated by other forms of income earned in the private sector. Otherwise, expenditure cuts in the public sector may well lead to undesired and unwarranted economic and social costs. What is sorely needed in fiscal management is not so much a reduction in expenditure as much as the more effective use of the resources being deployed. And this is where the limits of what the fiscal budget can do for the country start being met. In many respects, the budget has become more a statement of intents and broad objectives rather than an operational tool for economic policy formulation and implementation. Indeed, it is very likely that the main contributors to economic and social development in the coming years will lie outside of fiscal policy. To my mind, there are four critical themes to Maltaâ&#x20AC;&#x2122;s future development. One is the effectiveness to which our country will be putting EU funding for the 2014-2020 period. This will be the period when our country will really need to achieve EU standards in areas such as transport, environmental management, 130

and efficiency in resource use. It will also be crucial to use such funds to redress remaining challenges in the labour market, including the effective increase in retirement age and the redeployment of low-productivity workers, particularly in certain pockets of wholesale and retail, hotels, and construction, into internationally competitive sectors. It will also be essential for private business to make an even more intensive use of EU funds for competitiveness and innovation. Another critical theme is the reduction in electricity prices, which should provide some respite to consumer demand, but more importantly, can be expected to improve business cost competitiveness in areas which may be especially sensitive to price changes. The third critical theme will be the generation and attraction of investment. The Government is banking on the private sector, indigenous and foreign, to participate in significant infrastructural projects. At the same time, investment in small and micro enterprises needs to be sustained in new, high-productivity areas of activity, to ensure the proper use of projects such as SmartCity and the Life Sciences Complex. The fourth theme is how well we will be able to manage the burgeoning costs of health and population ageing. Demands on the sector are rising, not only because of

the more numerous elderly, but also due to increasing demand for services of a better quality. This includes the provision of longterm care, an area in which we are still to make any appreciable headway in Malta. In all of these areas, the fiscal budget has to provide the necessary support in terms of resources, by prioritizing expenditure and ensure its effective utilisation. Fiscal policy can also concentrate on diversifying the sources of Government revenue in a manner which reduces dependence on specific volatile sectors, and targets to promote better environmental behaviour, saving and labour market participation. The generation of revenue would thus be coupled with improved economic efficiency. Improvements in the fiscal framework are also called for. These include moving from a year-ahead to a multiannual fiscal programme which goes beyond statutory EU Commission reporting requirements to become an effective strategic planning exercise which allows the budget to steer the correct course while being flexible to meet changing circumstances. Ring-fencing of budgetary revenue resources to specific functions, such as pensions, salaries and investment would also be useful to enhance discipline and to prioritise on the use of scarce resources. cc OCTOBER / NOVEMBER 2013

THE COMMERCIAL COURIER /50

THE COMMERCIAL/50

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

OCTOBER / NOVEMBER 2013

Design Trends Old business signage under the spotlight

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