The Commercial Courier Dec/Jan Issue 2013/4

THE COMMERCIAL COURIER /51

THE COMMERCIAL/51

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

DECEMBER 2013 / JANUARY 2014

Illustrated City Valletta through the eyes of Nadine Noko NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE THE PRIME MINISTER’S TAKE ON MALTA’S ECONOMY FOR 2014 / MALTA HAS THE LARGEST SHIPPING REGISTRY IN EUROPE / MINISTER KONRAD MIZZI ON IMPLEMENTING MALTA’S AMBITIOUS ENERGY PLANS / TO SELL OR NOT TO SELL? THE CITIZENSHIP DEBATE RAGES ON / NATIONAL GEOGRAPHIC TRAVELLER’S WELL-KNOWN PRODUCER ANDREA LEITCH SHARES HER THOUGHTS ABOUT MALTA AS A DESTINATION / THE LATEST BUSINESS NEWS

THE COMMERCIAL/51

COURIER DECEMBER 2013 / JANUARY 2014

food & wine

49.

28.

82.

43. GADGETS 11. COVER STORY

BREAKTHROUGH GADGETS

‘OUTLOOK FOR MALTA’S ECONOMY IN 2014 IS BETTER THAN THIS YEAR’

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

The Prime Minister, the Leader of the Opposition, the Finance Minister, the Governor of the Central Bank, the Malta Chamber President and the CEOs of two major banks share their outlooks on Malta’s economy in 2014 with Sarah Micallef.

21. IN FIGURES SHIPPING REGISTRATION IN MALTA… IN NUMBERS A look into the figures related to Malta’s shipping sector.

22. INTERVIEW

78 THE DEBATE TO SELL OR NOT TO SELL? THE CITIZENSHIP DEBATE RAGES ON Martina Said finds out where the debate on the contentious Individual Investor Programme is heading.

11.

28. DESIGN TRENDS ABOARD AN AQUATIC VOYAGE Martina Said speaks to national aquarium designer Mark Pace about the highly anticipated unveiling of the island’s first national aquarium, and the captivating features that make up the innovative building.

THE MAN WITH THE ENERGY PLAN Energy Minister Konrad Mizzi discusses the major priorities and developments within the local energy sector with Sarah Micallef, encompassing the new gas power plant, the Chinese investment in Enemalta, the reduction in tariffs and the finalisation of works on the interconnector.

style review

89.

34. INTERVIEW BRIDGING THE ATLANTIC Writer and producer for the widely-acclaimed National Geographic Traveller Andrea Leitch chats to Jo Caruana about her thoughts on the island following her recent trip to Malta.

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Sarah Micallef meets designer and illustrator Nadine Noko for a chat about her contemporary style, inspiration, creative process and what’s next on the agenda for the prolific designer.

93 ENVIRONMENT CLEANING UP OUR ACT Jo Caruana speaks to the experts about whether Malta has successfully managed to shed its reputation as a ‘dirty’ country.

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 ‘Teatru Rjal’ by Nadine Noko, depicting Palazzo Ferreria in Valletta as seen from the stage of the Teatru Rjal with the audience, portrayed as pairs of eyes, in the foreground.

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HELLO NOKO

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.

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CC Editorial

Establishing enhanced capabilities provides boosted business growth The Malta Chamber is of the firm belief that education is the most important pillar upon which the country’s economy must be built.

DECEMBER 2013 / JANUARY 2014

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iven Malta’s resource constraints, the country relies on the quality of its workforce and its ability to adapt in the changing global economic development.

Skills are imperative for the building of a high-quality workforce that contributes towards a competitive economy. The Malta Chamber is strongly committed towards this mission and in particular to the identification of skills, skill needs and the reduction of skill mismatches.

The creation of new occupations, together with technological advancements, requires new skills and skill categories that must be well-developed and integrated. As the implications of the global economy become even more evident, it is essential for Malta to fundamentally review the effectiveness of its education and training systems in terms of relevance to business needs.

The Malta Chamber firmly believes that economic success ultimately boils down to how well-educated and skilled a country’s workforce is. This certainly applies to the success of the Maltese economy – an economy that is in turn highly dependent upon the capabilities of its workforce.

Malta must capitalise on the small size of its population to drive the necessary improvements to its systems and structures.

In this regard, the Malta Chamber encourages its members to continuously invest in human capital so as to ensure the highest and most relevant level of skills amongst our workers.

There cannot be enough stress put on the importance of having strong connections between industry and academia. This is one sure way of ensuring innovative solutions to the global demands to be met. The Malta 07

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Chamber shall continue to support initiatives by local educational institutions seeking to expose students, the country’s future employers and employees to the workplace.

Earlier this year, the Malta Chamber Foundation signed a Memorandum of Understanding (MoU) with the University of Malta (UoM) to help identify experts from the business community for their involvement in different projects.

Within the framework of this agreement, the Malta Chamber in collaboration with the Faculty of Economics, Management and Accountancy is conducting a skills gap analysis in relation to the skills required by companies that want to internationalise their operations. It is in both the Malta Chamber and the University’s interest to take a common and firm stand on issues of strategic importance, since the sustainability of the economy and the relevance of academic preparation are very closely related.

The University, through the input of its Rector, is also contributing in a ‘think-thank’ which is devising a Chamber-led Economic Vision for the country for the next five years.

Back in 2008, the Malta Chamber, together with the Malta College of Arts, Science and Technology, also launched a Diploma in Manufacturing Excellence to support foreseeable trends in the local manufacturing

industry. Additionally, the Malta Chamber, together with the Institute of Electrical and Electronics Engineering, launched a Diploma in Green Energy Technologies.

Given its strong commitment towards the identification of skill needs and the reduction of skill mismatches, the Malta Chamber also contributes a representative on the Governing Board of the European Centre for the Development of Vocational Training (CEDEFOP) to help Maltese businesses identify and anticipate future skill needs and potential skill mismatches.

The Malta Chamber hopes to build a culture of education and training among its citizens, ultimately boosting

participation in education and training; to build skills and adaptability, whilst encouraging lifelong learning; hence, ensuring competitiveness of our businesses and the economy at a macro level.

Success in the business world can only be achieved through a combination of wise entrepreneurship, dynamic leaders and quality personnel at all levels. The Maltese economy cannot develop and grow unless it has the necessary skills and man-power to drive it forward. To this end, the Malta Chamber stands in full support of establishing a workforce characterised by valuable skills, knowledge and capabilities. cc

CC cover story

“We have a clear message – come to Malta, bring your ideas and talent, invest here, we will help you and, together, we can achieve an economy that keeps on growing and delivering.”

– Prime Minister Joseph Muscat

‘Outlook for Malta’s economy in 2014 is better than this year’ Following the 2014 Budget and nearing the start of the New Year, Sarah Micallef gains the insight of the Prime Minister and the Leader of the Opposition, the Finance Minister, the Governor of the Central Bank, the Malta Chamber President and the CEOs of two major banks on Malta’s economy in 2014, as well as the challenges and opportunities local businesses stand to face in the coming year.

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easures laid out in the 2014 Budget, according to Prime Minister Dr Joseph Muscat, echo Government’s top priorities, which are “ensuring that expenditure respects the principle that a government should only spend what the country can afford and reducing expenditure in the country’s energy production.” In so doing, he maintains, the Government is committed towards sustainable economic growth that benefits all of society in 2014 and beyond.

DECEMBER 2013 / JANUARY 2014

As from 1st January 2014, Dr Muscat asserts, a number of tax cuts and incentives will be implemented in accordance with the Government’s vision for Malta to “expand the potential of its economy, allowing the country to achieve the highest possible rate of economic growth.” To this end, as indicated by the Prime Minister, Budget 2014 focuses on diligence and the principle of making work pay through constantly rejuvenating wellestablished sectors while seeking to establish new sectors. “We are striving to bring new 11

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“The Nationalist Party is concerned that the present administration is not being proactive enough in providing incentives for further economic diversification to attract foreign investment as well as incentivising local entrepreneurs to grow further.”

– Opposition Leader Simon Busuttil

investment to Malta,” he maintains, citing the Enemalta deal with the Chinese, the supply of oil from Libya and the controversial Global Residence Programme. “We have a clear message – come to Malta, bring your ideas and talent, invest here, we will help you and, together, we can achieve an economy that keeps on growing and delivering.”

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As for opportunities and challenges local businesses stand to face in the New Year, Dr Muscat maintains that “businesses have the comfort of knowing that our country is today administered by a Government which will curb waste and excessive bureaucracy.

We believe that the function of Government is to create an economic and regulatory

environment that gives space and facilitates private entrepreneurship and investment.”

Opposition Leader Dr Simon Busuttil states that over the past years, the Maltese economy has grown at a faster pace than its counterparts within the European Union, owing to important foundations that include “the diversification of economic sectors, balancing out objectives and targets between traditional priorities (manufacturing and tourism) and emergent sectors (financial services, ICT, online and digital gaming).”

Such decisions which have helped attract both foreign and locally-based investment and high quality job opportunities coupled with effective regulation and incentives which support the further growth of businesses in Malta, according to Dr Busuttil, “will continue to sustain growth in the coming months.”

As for the current situation, the Opposition Leader gives his view on Government’s approach in relation to economic growth, maintaining that while DECEMBER 2013 / JANUARY 2014

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“SMEs need to grow up from their mentality whereby one scrapes a living just by cutting corners and not fulfilling one’s obligations to the consumer or the fiscal authorities. For the bigger firms in manufacturing and finance, my advice is to watch out for new opportunities from countries outside the European Union.”

– Finance Minister Edward Scicluna

Government is building on the previous administration’s efforts to encourage more people to join the job market, “the Nationalist Party is concerned that the present administration is not being proactive enough in providing incentives for further economic diversification to attract foreign investment as well as incentivising local entrepreneurs to grow further.” Such initiatives, in Dr Busuttil’s view, would yield better growth levels than those forecast by both Government and the European Union.

In terms of business, Dr Busuttil is confident that European economies’ emergence from the international economic crisis and lowered bank interest rates should lead to a positive cycle: “an increase in tourism and more activity for big industry which in turn feeds the hundreds of SMEs that over the past years have clustered around the big manufacturing concerns.”

On the other hand, he maintains, due to the crisis in Europe, only the fittest DECEMBER 2013 / JANUARY 2014

have survived, so “local businesses need to continue embracing changes and enhancing their competitiveness if they are to remain relevant in an ever-more competitive market.”

In Finance Minister Edward Scicluna’s view, “the outlook for Malta’s economy in 2014 is roughly better than this year,” owing to lower risks on both internal and external demand. “On the supply side, the 2014 Budget features innumerable measures that will remove obstacles and bottlenecks on the labour market and will make work pay. Investment needs more time before it convinces itself that the new way of dealing with businesses is here to stay.”

As for how this will affect local businesses, Minister Scicluna asserts, “SMEs need to grow up from their mentality whereby one scrapes a living just by cutting corners and not fulfilling one’s obligations to the consumer or the fiscal authorities. For the bigger firms in manufacturing and

finance, my advice is to watch out for new opportunities from countries outside the European Union.”

Central Bank Governor Josef Bonnici expects Malta to continue growing at a modest pace in 2014, with growth being driven by consumption and exports. “Over the past couple of years, Malta displayed strong resilience to the external environment and these fundamentals should sustain Malta’s positive economic performance,” he asserts. While key economic sectors including financial services, remote gaming and other service-based industries such as tourism are expected to remain the main drivers, various investment projects are expected to commence, he maintains, further contributing to the economic momentum.

“Although it has recently increased slightly, unemployment is still low compared to other euro area countries. Inflation is also expected to remain contained,” he continues.

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CC cover story Malta Chamber President David G. Curmi

Central Bank Governor Josef Bonnici

Opportunities for Maltese businesses depend on their ability to continue to invest and improve their competitiveness and innovative capacity, according to the Central Bank Governor. He explains, “opportunities exist in a number of fast growing product markets, especially the high value added sectors which require investment in both equipment and human capital. The take-up and use of EU funds in this regard is a positive contributor to growth and is highly encouraged. Also, businesses in Malta need to focus more on penetrating foreign markets and exploring new markets in the region.”

Indeed, Prof. Bonnici believes that Malta’s ability to serve as a hub for commerce and finance is not fully exploited, and emerging markets in Malta’s vicinity can open up opportunities. He states that challenges remain particularly with respect to access to finance for SMEs, maintaining, “I have long argued that this can create a bottleneck in itself for local companies that want to grow and expand. New financial instruments and institutions such as the Development Bank would help raise SMEs’ accessibility to finance.” In addition, Prof. Bonnici argues,

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“Opportunities exist in a number of fast growing product markets, especially the high value added sectors which require investment in both equipment and human capital. The take-up and use of EU funds in this regard is a positive contributor to growth and is highly encouraged. Also, businesses in Malta need to focus more on penetrating foreign markets and exploring new markets in the region.” – Prof. Josef Bonnici more effort should be made to streamline and improve the business environment for companies, while the availability of skilled human capital is another challenge that some sectors face.

Malta Chamber President David G. Curmi asserts that while the weak macroeconomic climate and the dichotomy observed in economic performance in Europe remain key concerns in European and international markets, both the Joint Harmonised EU Programme of Business and Consumer Surveys (BCS) and the annual EUROCHAMBRES Economic Survey (EES) give complementary readings. “The projected parameters for 2014 are overall positive,” he asserts, “the marginal difference between the business confidence for the previous year and those for 2013 increased from +6 points to +14 points in 2013. In 2014

they are expected to increase to +30 points.

This is an indication of resilience and the extent of the 2014 projections leaves some margin for projected business activity which might not materialise.”

While the performance of the main sectors in 2014 is expected to follow a similar pattern that had been emerging in recent years, Mr Curmi maintains that a more restrained growth in the manufacturing and services sectors is expected within the local market compared to export sales. “Our survey results suggest that, on balance, business is striving to adapt to the fast changing economic conditions. Crucial decisions regarding both capital investment and employment complements seem to be supporting this process as both sectors, in their various ramifications, are calling for close attention factors that condition

DECEMBER 2013 / JANUARY 2014

CC cover story Bank of Valletta CEO Charles Borg

competitiveness,” he says.

As for opportunities and challenges for local businesses in 2014, Mr Curmi states that Malta must continue to be vigilant and act in the best interest of safeguarding national competitiveness. “A number of the sectors represented by the Malta Chamber are price-sensitive and are facing stiff competition from operators in

HSBC CEO Mark Watkinson

other countries which have been forced to implement painful austerity measures.

Meanwhile, Malta has been sheltered from the worst effects of the crisis. Nevertheless, we must take heed of the evolving competitive dynamics, identify where reforms are required and implement them.”

Bank of Valletta CEO Charles Borg emphasises the bank’s belief that the Maltese

economy will remain resilient in 2014, and expects it to grow at a rate which is above the euro area average. According to Mr Borg, the main drivers will be export-oriented sectors such as tourism and the services sectors, while traditional sectors, such as construction, wholesale and retail are expected to continue to experience stresses as margins are tight and competition high. Having said this, he maintains, “new Government infrastructural projects and public-private projects that are expected to start in 2014 will act as stimulus to the Maltese business.”

HSBC CEO Mark Watkinson shares the view that Malta’s economy is set to continue performing resiliently as the European economies start showing the first signs of recovery, with a projected GDP growth of 1.9 per cent in 2014. He maintains, “Malta still has one of the fastest economic growth rates in Europe as the euro forecast for 2014 is set at 1.1 per cent and the EU at 1.4 per cent. With further focus and investment in Malta’s trade and tourism, we should aspire to achieve higher economic growth rates.” Another key opportunity for Malta, according to the HSBC CEO, lies in tourism. He states, “the country has the potential to build on its heritage and culture, and spearheaded by the fact that Valletta will be European Cultural Capital for 2018, we could see higher-spending tourists visiting the islands.” cc

CC in figures

Shipping registration in Malta‌ IN NUMBERS

1

st

Malta is in the pole position as the largest shipping registration flag in Europe

7

th

Malta is the 7th largest shipping registration flag worldwide

85% remarkable increase in the number of registered vessels under the Maltese flag over the past decade, that is between 2003 and 2013

49.82 6,202 3,369 MILLION

the number of vessels currently registered under the Maltese flag

the number of vessels registered under the Maltese flag in 2003

5,020

628

547

the number of vessels registered under the Maltese flag in 2008

the number of newly registered vessels in 2012

the number of vessels registered newly so far during 2013

the total gross tonnage registered under the Maltese flag as at the end of September 2013

Source: Merchant Shipping Directorate within Transport Malta

DECEMBER 2013 / JANUARY 2014

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DECEMBER 2013 / JANUARY 2014

CC interview Photos by Elisa Von Brockdorff

The man with the energy plan Encompassing the new gas power plant, the Chinese investment in Enemalta, the reduction in tariffs, investment in renewables by the private sector and the finalisation of works on the interconnector, Energy Minister Konrad Mizzi discusses the major priorities and developments within the local energy sector with Sarah Micallef.

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he energy sector has emerged as one of the Government’s main priorities within this legislature due to the fact that, according to Energy Minister Konrad Mizzi, “in it is our competitiveness in terms of industry, business, tourism and spending power for consumers, as well as the impact it has on the environment.” Water, he states, “is also a key priority both for industry and consumers in general.”

The Minister highlights the main areas that require attention within the sector, stating “our tariffs are among the highest in Europe, so that has to be addressed; we have to ensure that the energy supply is sustainable and that we will be in a position to reduce power cuts and disconnections; we want to ensure that we don’t remain dependant on fuel oil and that emissions will be reduced; and also ensure that our renewables target will be met by 2020.”

DECEMBER 2013 / JANUARY 2014

By Minister Mizzi’s own admission, Enemalta Corporation, as the main provider of energy generation and distribution in the Maltese islands, “wasn’t in a pretty state.” Burdened with €840 million worth of debt, the company continues to make significant losses in the electricity division.

To counteract this state of affairs, Minister Mizzi maintains, “we needed a turnaround.

The first step was to reduce the cost of generation, and we’re doing this via the introduction of a gas supply infrastructure.”

Asked about where the project currently stands, the Energy Minister confirms, “we are currently concluding the key agreements with the preferred bidder,” – namely Siemens, Gasol PLC and SOCAR Trading, with local partners Gasan and Tumas Group of companies. “We are also finalising the environmental impact assessment, which clearly highlights that emissions will be 23

CC interview

reduced by 50 per cent and particles emitted from the chimney will be reduced by approximately 90 per cent. We have also met our cost targets for unit price of electricity, which is very important to us.”

As for when the Government expects the new gas power station to be in operation, the Minister states in no uncertain terms, “we’re on target. We envisage that by spring of 2015 we will be in a position to generate power through clean energy.

We’ve also agreed with the consortium to give us a €30 million upfront payment, which we are using to reduce tariffs for consumers. Reduction in tariffs for industry will follow a year after that.”

Indeed, the Budget announced a reduction of 5 per cent in water tariffs and a reduction of an average of 25 per cent in electricity tariffs as from March 2014. Minister Mizzi breaks down exactly how these reductions will be worked out, explaining “it is structured similarly to income tax brackets – the less consumed, the bigger the reduction.

For the first 2,000 units, you get 35 per cent reduction, on the next 4,000 to 6,000 units you get a 25 per cent reduction, and so on.

We’ve run a model to assess how it works and found that 90 per cent of consumers will benefit from approximately a 30 per cent reduction. On the water side, it’s a straight five per cent reduction on current tariffs.”

As for the reduction in tariffs for commercial entities as from 2015, he clarifies, 24

“The reductions for business are going to be 25 per cent across the board. There are firms which will save hundreds of thousands of euro, and SMEs will save in the tens of thousands.” “the reductions are going to be 25 per cent across the board. There are firms which will save hundreds of thousands of euro, and SMEs will save in the tens of thousands.”

The other issue that needed to be addressed was Enemalta’s debt. “Even with all the goodwill in the world, we would never be able to pay the existing debt if no direct action is taken,” Minister Mizzi asserts, maintaining, “we wanted to make sure that Enemalta doesn’t end up like Air Malta, necessitating a rescue plan dictated by the EU. We decided that we required a strategic investment to turn it around.”

This projected turnaround came in with an agreement with Shanghai Electric Power, an energy company owned by the Chinese government, which will be taking a substantial equity in Enemalta. The energy Minister indicates how this came about, stating “initially, we were approached by China Power Investments (CPI) via one of their subsidiaries, Shanghai Electric, that were interested in renewable energy projects for Europe. We managed to carve out a winwin scenario whereby we get the investment required into Enemalta – a cash injection in

order to pay a significant portion of the debt and reduce interest costs – which would also be tied to a business plan.”

Asked about when this will come about and what percentage stake Shanghai Electric Power will be procuring, Minister Mizzi asserts, “we are currently finalising the business plan – once we agree to that and the future cash flows that Enemalta will generate, we will derive an evaluation and a percentage. The percentage will be a minority stake.”

As for changes taking place at Enemalta once the investment takes place, the Energy Minister is adamant that they will be numerous, starting from a clear agreement on a business plan which will return Enemalta to the black and make it profitable. “We will have structures in place to make sure that the change programme is implemented.

We will not tolerate that Enemalta slacks behind. It will ensure that Enemalta enters new markets overseas as well as providing the energy service centre activities to other countries; it will create new job opportunities and introduce a private sector mentality into the firm.”

Till then, the Government is committed to turning Enemalta around, and will be doing so by implementing cost reduction initiatives, reduction in losses, reduction in interest costs and a change programme, which the Minister maintains is all underway.

“It is envisaged that in March or April, we DECEMBER 2013 / JANUARY 2014

CC interview will be signing a number of investment agreements – one into Enemalta, one for renewable energy so that we will be in a position to set up a joint venture with Shanghai Electric to penetrate the EU market on the renewables side, and one in relation to an energy services centre based at Enemalta, which will service not only Malta’s requirements but also Shanghai Electric subsidiaries around the region, including Turkey, East Africa and Europe.”

As for the part of the agreement comprising the setting up of a joint venture company in Malta specialising in the manufacture of photovoltaic panels, the Minister explains, “economically the focus is going to be on renewable energy projects in Europe. For Enemalta, it is a learning curve by entering a new division in the EU business unit. As for Shanghai Electric, they will gain experience in working with EU regulations and get access to EU markets.”

When it comes to renewable energy, Minister Mizzi declares that the energy Ministry is in the process of finalising a plan in order to reach 2020 targets, which will involve a lot of private sector investment opportunities. He expounds, “we’re going to have a shift in the mix proposed by the previous government: we’re going to move more toward the solar PV side as opposed to wind energy because of costs as well as environmental reasons. If we manage to maintain momentum year on year, we will be able to reach the targets.”

Moreover, Malta has recently struck a deal with Libya to buy oil and other energy products at preferential rates, once production levels resume to normal. Does the energy Minister expect a delay in the realisation of this agreement? “The political situation in Libya is still very uncertain,” Minister Mizzi maintains, “we have an invitation from the Libyan oil and gas ministry to finalise commercial details, and

DECEMBER 2013 / JANUARY 2014

we plan to visit Libya in the first quarter of 2014. I’m not in a position to state whether we’re going to manage to get oil in 2014 or otherwise – as soon as production levels are up we can take their product.”

Moving on to yet another development within the sector – the cable between Malta and Sicily, which will form part of the interconnection between the Maltese and European electricity networks – Minister Mizzi asserts that despite the project running approximately one year late when this Government took office, works are progressing at a steady pace, with a projected completion date of 2014. “We’ve started works in Italy, and works in Malta

are at an advanced stage. We don’t envisage any problems with the laying of the cable; however there are a lot of trenching works in Italy that require permits from the local authorities and that is quite challenging.”

Between the new gas power plant, oil from Libya at a preferential rate and interconnector power supplies, Minister Mizzi explains that the Government is planning a mix of electricity comprising of renewables, the new gas plant which will act as base load, as well as the BWSC plant which will be converted to gas and the interconnector, which will be used interchangeably with the former depending on the cost of electricity. cc

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CC design trends

“The end result resembles a starfish that straddled the coast.”

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DECEMBER 2013 / JANUARY 2014

CC design trends Photos by Lawrence Bonnici

Photo by Clodagh Farrugia O’Neill

Aboard an aquatic voyage The unveiling of the island’s first national aquarium was warmly received after much anticipation. The stunning variety of wildlife, however, is not the only captivating feature of this aquarium.

Martina Said meets Mark Pace, the building’s designer.

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alta’s National Aquarium, fittingly located in one of the country’s touristic hubs of Qawra, along the north-eastern coast, is as visually striking from the outside as it is on the inside. Before even stepping inside, you’re taken aback by a huge starfish-inspired feature lying atop the building, as though it has been accidentally swept ashore. The vast stretch of land surrounding the aquarium is equally impressive; the space is broad and open, offering gorgeous views of the sea.

Inside the aquarium is a whole other world – the domed ceiling made up of wooden panels resembles the anatomy of a ship, accentuated by glass panels overlooking the coast, neutral colours and a flood of natural light. The result is an airy, dreamy environment that, even if just for a short while, removes you from the world outside.

DECEMBER 2013 / JANUARY 2014

I meet commercial designer Mark Pace, the person responsible for the complete design of the aquarium, which was cofunded by the EU. He says, first off, that the project was nothing short of a major challenge for everyone involved, being a first of its kind on the island. “There are around six major companies that design aquariums around the world, of this scale, so it was a learning curve for everybody involved in building this aquarium.”

He was involved in the design stage from scratch, and Mark reveals that initially, the idea was to have a low-lying invisible landmark building, making it a fully underground aquarium. “The scale for the underground aquarium was even larger than what we have now, but after various consultations it was decided that we shouldn’t exceed 1,000 square metres for an 29

CC design trends

Photos by Lawrence Bonnici

“The wooden dome is not just a roof: it comes down at the sides so that people can touch and interact with it.”

exhibition space.” In order to work around the set requirements, the underground idea was modified into the way the structure is at present, give or take, as Mark explains.

“I had a specific brief from the Malta Tourism Authority in terms of what they wanted to achieve from the ‘experience’ perspective, and of certain facilities and spaces required. They in turn approached teachers for insight into the educational aspect of the project. As the design developed, however, the spaces were changed or reallocated. The fish are the stars of the place here, and we wanted to take visitors on a so-called tour of the Maltese Islands, showing different habitats and the species within them.”

Work on the structure formally began in July 2011. “After discussions on the low-lying building, we were told to bring the structure in and down. I researched aquariums in Europe and starfish roofs – to make sure it hasn’t been done already – as I thought that the shape of the building should be organic and represent something of the sea life that 30

it displays, but without being too much of a cliché,” he explains. “I also needed to ensure that whatever we constructed had repetitive elements to make it cheaper, so for instance, the dome is made up of 20 identical pieces, each panel mirroring the other.”

Mark adds that some necessary changes to the starfish design only emerged once the structure started coming together. So was the case, for instance, with the last legs of the ceiling, the ones overlooking the sea. “They were coming down too far past the line given to us by MEPA. They had to concede a little,” he says. We also had to tilt the ceiling by three degrees to get the right curve, which in the end made it look more dynamic. The end result resembles a starfish that straddled the coast. Driving down certain parts of the island, the effect is even more visible.”

As for the interior of the building, aptly called ‘the ship’, Mark’s design was envisioned with the intention of taking visitors on a voyage. The fact that the aquarium is located so close to the sea

gives people the impression of being on a cruise liner, about to embark on a voyage. “I wanted people to interact with the building too. The wooden dome is not just a roof: it comes down at the sides so that people can touch and interact with it. It also has functional purposes, such as providing shade in summer.” Using wood over concrete provided the added benefit of being both more environmentally friendly and a better insulator – “the wood is seven years old and certified. Prior to this I was ignorant to the properties of wood as a ceiling, I always thought it generates heat but it doesn’t; it is actually a better insulator than concrete.”

The decor of the ‘the ship’, which includes the reception area and part of the restaurant, is also synonymous with aquatic life. Apart from the use of neutral colours and earthy materials, an effective detail hangs from the ceiling: a shoal of small white fish arranged in a swirling pattern float in the air above visitors’ heads, and when light is projected on them in the evening, they shimmer and reflect.

DECEMBER 2013 / JANUARY 2014

CC design trends

Photos by Lawrence Bonnici

“A shoal of small white fish arranged in a swirling pattern float in the air above visitors’ heads, and when light is projected on them in the evening, they shimmer and reflect.”

DECEMBER 2013 / JANUARY 2014

“The idea for this came from my son,” says Mark. “I asked him to help me find pictures of fish lights and we found a chandelier which cost around €4,000 a piece. No client would have let me go ahead with that so I came up with a less expensive alternative.”

Mark explains that one of the greatest challenges he faced was coming up with a smooth transition from ‘the ship’ to the tanks. “The colours I used at the top are all natural, such as wood, clay and white. I avoided introducing other colours as the sea outside completed the palette inside. But when you move into an area that is themed, there’s a stark difference – how do you bridge the two? I wanted people to walk through a passage that fades into colour and light... airbrush was the final solution.”

The tank areas are themed according to the type of fish displayed in a given tank.

Each tank area is decked out with handbuilt ‘rock’, actually made of concrete, and given a geology which closely resembles that of the area it represents. There’s the Żurrieq and Għar Lapsi area, the Marsaxlokk area, the harbour area as well as tropical tanks displaying sharks, sting rays, eels and numerous other stunning sea creatures.

The result is captivating – both in terms of the versatility of marine life for visitors to see as well as the ambience created by smart design and decor. The intention of taking visitors on a journey is successfully achieved, making the experience simultaneously educational and a feast for the senses. cc

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CC travel

“I shared several pictures from Malta on the @natgeotravel Instagram account, which has over 160,000 followers.”

– Andrea Leitch

Bridging the Atlantic Following her recent trip to Malta, Andrea Leitch, a writer and producer for the widely-acclaimed National Geographic Traveller, chats to Jo Caruana about her thoughts on the island, as well as her ideas on how Malta can better target the American tourist market in 2014.

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ith 1.5 million tourists visiting Malta this year, we must be doing something right. But is there anything we could be doing better?

Well, according to the group of top American journalists that recently visited the islands for the first time, we really should be targeting the American market more.

These journalists visited Malta on a special tour, funded and organised by the Corinthia Palace Hotel & Spa in Attard, with the assistance of the Malta Tourism Authority.

During their four-day visit, they experienced an in-depth expedition around Malta and Gozo, with highlights including a tour of Mdina by night, cooking demonstrations, a visit to the Hypogeum and a courtesy call on the Hon. President Dr George Abela.

After four days here, each of the journalists said they couldn’t wait to return home to spread the news

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about their ‘discovery’ – Malta. And their upcoming articles will feature in publications including Travel Weekly and New York’s Resident Magazine.

Andrea Leitch, a National Geographic producer and writer, was among the group.

She will be penning a piece about her thoughts on Malta in the coming weeks.

“I was particularly interested to learn more about the island’s lesser-known local treasures,” she explains, “along with its ancient World Heritage sites. It was fascinating! As a result, I shared several pictures from Malta on the @natgeotravel Instagram account, which has over 160,000 followers, as well as our other social media channels. I definitely anticipate more Malta coverage on the NG Travel site in the near future.”

As Andrea explains, NG Travel educates its audience on iconic world wonders, off35

Andrea meeting President George Abela Photo by Jeremy Wonnacott – DOI

CC travel the-beaten-path places, and up-and-coming destinations. Their experts provide travel advice, photo tips, trip offerings and service information for travellers to dream, plan go, and share their own travels.

She chooses to describe Malta as ‘a small country with a big heart’, adding that locals welcomed their group with eagerness to showcase what Malta has to offer.

“For instance, I found it intriguing to discover that it only takes a few minutes to travel between north and south, and even less to travel east to west. I also appreciated how we were treated like family throughout the trip, especially at the hotel. We definitely found a new home in the Mediterranean.”

“We hope that key Maltese ambassadors, like Joseph Calleja, who have a following in America, will help to raise our profile too.”

– Minister for Tourism Karmenu Vella

Journalists, including Andrea, interviewing Minister Karmenu Vella Photo by Saviour Cassar – DOI

Andrea interviewing a National Geo author

During the journalists’ time in Malta they also attended a press conference with Tourism Minister Karmenu Vella, who was keen to hear their thoughts on the island, and how we, as a nation, can better target American tourists in 2014.

Mr Vella explained that a number of initiatives were already underway, including the opening of a small MTA office in Washington, from where a Maltese representative will directly organise local marketing efforts.

“We are eager to drive promotion in the States and our new office, which is located within the UN Embassy Building, will help to get the ball rolling,” he explains. “We also hope that key Maltese ambassadors, like Joseph Calleja, will use their following in America to help raise our profile too.”

Mr Vella also took on board journalists’ comments about combining a trip to Malta with other destinations, much like local travellers would do if flying to America.

“Access has traditionally been a problem as there are no direct flights,” he says. “But yes, pairing up with say Sicily or the UK could help us to attract more people, who will be willing to make the long-haul journey if they 36

are going to see two or three places once they get to Europe. Hotels like the Corinthia chain could help us to do that too, as we can create packages for stays in their local and international properties.”

Andrea agrees, and admits that – as an American – she really didn’t know that much about Malta before she travelled here. “For instance, I didn’t realise that English was one of the national languages, and I think that should be highlighted in marketing pieces to Americans as it always helps to know you are going to be able to communicate easily.

“Plus, Malta is located in the Mediterranean, which is a relatively expensive area to travel to. And yet, Malta is very affordable, especially during the wintertime when the temperature remains relatively warm. I was impressed to learn about the year-round picturesque golden

beaches and turquoise waters, as well as the romantic nostalgia in its medieval and port cities that spark a desire to see the cities by day and return at night.

“When targeting America I definitely think local marketers should use social media campaigns. We now consume so much of our media via social networks, and this will doubtlessly prove to be a very fast way to communicate Malta’s upcoming anniversaries and celebrations, both in 2014 and beyond to the EU Presidency in 2017, and Capital of Culture in 2018.”

Finally, asked about the things she most enjoyed in Malta and her plans for what to include in her upcoming National Geographic Traveller article, Andrea places importance on the island’s key historical and religious relevance.

“There are so many important things that can only be found here,” she enthuses.

“So many ‘firsts’, ‘only-ies’ and ‘oldest-s’, so I felt like I was constantly discovering new treasures to share from Malta.

“I also love that the Maltese are the greatest ambassadors of their country. Every local we met beamed with pride when talking about Malta; even non-citizens who are living in Malta for work are passionate about the people, culture and history of the Maltese islands. Malta’s national pride is contagious — I fell in love with the country and can’t wait to be back!” cc DECEMBER 2013 / JANUARY 2014

CC technology

Exciting times for Smart Technologies Ltd as company celebrates 5th anniversary Smart Technologies CEO Joe Aquilina speaks to The Commercial Courier about the company’s successes since its establishment five years ago and its recent agreement with global hospitality market leader MICROS Systems.

What is the company’s ethos and where does it stand today?

Smart Technologies started operating five years ago. In fact we have ‘celebrated’ our fifth anniversary with a move from Valley Road in Birkirkara to new, bigger premises in Lija with a much better and more spacious environment for our executives and technicians alike.

Over these past few years, we have established the company as a reference point in the leasing, outsourcing and renting of IT products and services. Our operations centre is making the procurement of technology and services easier, offering financing options that suit the client’s short-term and long-term plans. We basically seek to be the single source for our clients’ IT needs.

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We are where we are today because we have kept to this promise; we kept extending our service offer, have maintained strong relationships with our customers and invested in our operations to increase our service offer. I feel this is what led us to our celebration of five successful years of operation.

What inspired your agreement with MICROS Systems Inc.?

MICROS Systems Inc. provides leading enterprise-wide applications, services and hardware for the hospitality and retail industries by combining industry knowledge and expertise to provide cloudbased mobile and on-premise solutions that allow clients to streamline their 39

CC technology

operations and successfully engage with their customers. MICROS applications in fact include point of sale, property management, central systems, business intelligence, eCommerce, loyalty, CRM, loss prevention, distributed order management, HR management, inventory management and merchandise planning solutions.

MICROS were looking for a new partner in Malta and they approached Smart Technologies due to our market presence and our experience in the sector through our current IT leasing and outsourcing contracts.

Following negotiations, we managed to reach a very positive exclusive business agreement.

How does such an agreement complement or add value to what has been built so far at Smart Technologies?

We are already pretty active in the hospitality sector where we are servicing a number of leading operators. Having said that, being able to offer another global brand like MICROS products, strengthens our already strong and successful leasing, renting and outsourced services which we are going to keep strengthening. Having a local representative also makes MICROS product more accessible to the local sector.

You have become the official local representatives for MICROS systems – how significant is this achievement for you personally and for the company?

Representing a global brand like MICROS is a very important milestone for our company.

On a technical level, this new development 40

Smart Technologies has been gaining a lot of limelight thanks to its committed approach to being a leading IT service provider

complements and enhances our existing range of products and services but on a wider corporate level, this agreement further cements our standing in the sector as a credible and serious leader in the IT sector.

The service will start being offered as of next year – what should interested clients expect from the service and how will it benefit them? What clients are you targeting?

The agreement, which comes into force as from 1st January 2014, will bring MICROS products to the local hospitality sector. The hotel industry is indisputably an important pillar in Malta’s economy and this is a highly competitive sector where all those working in it need to be constantly at the forefront not only from an operational and a marketing point of view but also from an IT set-up perspective. The success of any business, today more than ever, depends on a sound IT platform and we will be able to offer this platform through MICROS products and global expertise.

What do you consider to be among the greatest achievements of Smart Technologies ahead of its fifth year mark?

Achieving this important milestone after just five years of operation is already a great achievement, not only for me but also for the shareholders and our great team of employees. Having said that, one big achievement for Smart Technologies was the creation from scratch of the ‘leasing’ concept. This ‘leasing’ concept was only

related to property and cars. Today, we have carved our own niche and made Smart Technologies synonymous with the IT leasing business. Being acknowledged as a leader in the IT sector and branching into PC renting and outsourcing are also major achievements for us.

What do you hope to improve in future and are there further plans for growth in the pipeline?

Currently, we are actively negotiating to enter some interesting international markets. We have exciting plans ahead, we have strengthened our business development team and we have also scored a number of interesting projects abroad. It’s looking very good.

The company’s experience of operating from SmartCity...

Establishing a presence in SmartCity must also go down as a positive achievement for us. I see this as a good example of how we managed to creatively tap into the new opportunities that came our way and being present there has already provided us with some good projects such as the recent job we just completed at Global College Malta. We are happy with the direction that SmartCity’s management is taking, we have renewed our commitment to our presence there and we also have a set plan to make this presence even more profitable for us and for our customers. cc

DECEMBER 2013 / JANUARY 2014

Crazy for Gadgets From headsets and cameras to smart phones and even glasses, technology knows no limits. Martina Said looks at some of the hottest gadgets on the market right now and others that will leave tech-lovers begging for 2014 to arrive.

01. Google Chromecast Google has come up with a simple way of getting the web on your TV with Chromecast – a streaming dongle that plugs into a TV’s HDMI port. It could be used to stream online videos from YouTube and elsewhere, and is controlled by a computer, mobile phone or tablet. It could be compared to a small Android computer that can connect to the internet and play video files. When you hit the Cast button in a supported app, the Chromecast directly connects to the internet and streams the video itself. The device is cheap, small and the most reliable invention created so far linking your computer to your TV.

02. Canon Legria Mini The Canon Legria Mini is a new gadget aimed directly at video bloggers and anyone who wants to easily capture front-facing video.

The screen has a foldable design that can be tilted according to one’s preference, depending on what is being filmed, also allowing you to control the best angle on a surface with the screen facing you. The device is very compact and weighs 160 grams, fitting perfectly in your pocket. This is the first time Canon has used its HS system in a camcorder, as it is usually reserved for compacts like the Canon PowerShot SX260.

03. Bose QuietComfort 20 The Bose QuietComfort 20 and 20i are compact in-ear headphones that sound great, are comfortable to wear, and are considered to be the best headphones for noise-cancellation. The noise cancellation is powered by an integrated rechargeable lithium battery that delivers up to 16 hours of battery life. The battery is stowed in a power brick close to the headphone jack that plugs into your player – it is both lightweight and inconspicuous. The compact nature of these headphones makes them widely attractive, although the downside is their somewhat pricey tag and the irreplaceable rechargeable battery.

04. Foc.us Headset There are plenty of new gadgets for gamers to look forward to in 2014, such as this Foc.us headset that is based on the idea of quickening gamers’ reaction times, simultaneously augmenting one’s reality and improving mental faculty. The headset uses a technology known as ‘transcranial direct current stimulation’, which passes a low-level electrical current through the brain, and lab tests so far have shown its ability to improve performance on basic tests. If the gadget does work in more complex games, it would be the first gadget on sale to boost human ability.

GADGETS 03.

05. Google Glass Google Glass is a wearable computer with an optical head-mounted display that is being developed by Google. The first few units were available to a select few since April, giving the company time to fine-tune the device for general consumption. The gadget is essentially a wearable Android-powered computer built into spectacle frames enabling you to film, take pictures and perch a display in your field of vision. A prism screen on the upper right corner allows you to put data in front of your vision, designed to be easily seen without obstructing your view. Glass responds to voice commands as well as taps and gestures on the touchsensitive bar along the side of the frame.

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06. Samsung Galaxy Round The ‘round’ part of Samsung’s new technology comes from the smart phone’s curved display screen, which is 15.7 inches in size. The curvature is intended to help consumers check information when the home screen is off, such as the date, time and missed calls. The screen doesn’t actually bend, but seeing that it is curved, it could be tilted to turn on the display, dubbed as ‘the roll effect’ by Samsung. The smartphone has 3GB of RAM and 32GB of internal storage, uses Android 4.3 OS and has a 13 mega pixel rear camera. cc

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Now is the time to put stress on the backseat Attempting to kick back and enjoy the Christmas season is easier said than done, but it is certainly worth a shot. Martina Said looks into why relaxing over the festive period is important and what you could do to improve your well-being.

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he Christmas holiday season is an odd time of year that’s often met with a variety of emotions: many of us desire nothing more than putting our feet up in fleece pyjamas while sipping on mulled wine and scoffing mince pies as a heart-warming movie fills the silence. Yet, somehow, we cannot avoid the chaotic shopping around for food and gifts, organising and attending events in a bid to catch up with as many people as possible, and the pressure to cope with a hundred different things. I’m not sure everyone would agree it’s the most wonderful time of the year.

Stress during the holiday season is an expected visitor, albeit an unwelcome one.

It is often the result of high expectations for the cheerful season, which, when not met to our satisfaction, results in feelings of anxiety and stress. Various studies consider this season to be one that increases depression

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rates, as the holiday cheer amplifies feelings of loneliness and disappointment when expectations are not met. Such negative feelings are also caused by exhaustion and frustration following a busy work period and an equally busy personal one. The demands are pretty much endless.

Experts consider external factors to play a huge part in our change in behaviour at this time of year, compounded by an excessive indulgence in sugar as well as financial strain. But it appears there are biological reasons too. Neuroendocrinologist and professor of paediatrics at the University of California at San Francisco, Dr Robert Lustig, says thoughts and actions during the holiday season are driven by hormonal changes that might be more extreme than at any other time of the year, bringing out the best and worst in us.

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CC lifestyle Photo supplied by Carisma Spa & Wellness

“Spa treatments offer complete rejuvenation of mind, body and soul, and one treatment offered exclusively in Malta by Carisma is the Hammam, or Turkish bath.

It is an experience like no other, and the feeling of wellness that it offers remains unrivalled.”

– Carisma Spa & Wellness Marketing Director Merve Artar

In a report by ABC News, Dr Lustig explains “the stress hormone cortisol works overtime during the holidays”.

Cortisol can increase sugar production to fuel muscles, which can cause an increase in blood pressure. Stress can also suppress the immune system, which is why we appear to be more susceptible to colds and flu as December kicks in, made worse by lack of exercise, overindulgence and too many errands.

But the holiday season should be far from doom and gloom, as there are plenty of ways to unwind and de-stress. It is important, first off, to recognise your limits, as one of the biggest stress triggers is the long list of demands that stretches us thin: shopping, baking, entertaining and attending gettogethers. Even excessive traffic is enough to trigger a meltdown, and if we lose sight of what we really enjoy at this time of year, it could potentially rob us of a healthy dose of Christmas spirit.

What seems like a very obvious observation is actually a rarity during this season – take a break. This could mean anything from a short holiday to a 30-minute breather at the end of the day. Spending some time alone without any distractions may be all you need to refresh your mind and focus better on the tasks at hand, restoring both inner calm and peace of mind.

Don’t feel pressured to abandon healthy habits just because everyone else around you is doing so. Giving in to seasonal treats is perfectly understandable, but often at this time of year, we forgo all sense of routine in what we eat and when, which may result in 46

feelings of guilt and, obviously, added stress.

Financial constraints are no less worrying – when for a solid month all you seem to be doing is spending money, it is hard to ignore the nagging feeling that you’re more broke than usual. Be firm with the budget you set for yourself: it is wise to set a budget ahead of hitting the shops or supermarket, in order to avoid returning home with a strong desire to kick yourself for draining your credit cards.

The following might sound impossible to some but – learn to say no. When your week is overwhelmingly packed with engagements, it is simply not possible to fit in another event without burning out, which will in turn affect every other area of your life, particularly work performance, relationships and your attitude towards others at large.

And when you do refuse to attend an event, avoid feeling guilty and resentful as, in the end, there’s so much to do in so little time.

The more commonly sought after destressing option, for those who have a little more time on their hands, is a spa date.

Merve Artar, Marketing Director at Carisma Spa & Wellness, says stress is inevitable for most of us. When it strikes, it could leave you feeling tired and unhappy, which is why it is important to de-stress the body and mind.

“Spa treatments offer complete rejuvenation of mind, body and soul, and one treatment offered exclusively in Malta by Carisma is the Hammam, or Turkish bath. It is an experience like no other, and the feeling of wellness that it offers remains unrivalled.”

The benefits offered by such treatments are various, including the positive effects of sweating. “A person sweats approximately

1.5 litres of water within 15 minutes in the historical Turkish bath,” explains Merve.

“Sweating to this extent helps the kidneys, and toxins constitute 10 per cent of the sweating released this way. Sweating in the Turkish hammam opens the pores of the skin and is therefore frequently used in the treatment of cellulite. This method is also good for treating arthritis and speeds up the heartbeat which benefits circulation, especially in winter time. It also helps get rid of colds and feelings of depression.”

Other treatments that work wonders for your health include the traditional Turkish foam massage ranging from a Dead Sea salt exfoliating treatment – whereby salt flakes are massaged into the skin for deep exfoliating – and an Aloe Vera face and body mask, both of which help stress, anxiety and tension melt away. Such cleansing treatments will restore skin moisture and hydration. Warm water treatments will also restore a good mood and warm you up.

With this in mind, there is one other goal that should be at the top of your list in order to de-stress this season – and it is as simple as being realistic. There’s no need to compare this year’s holiday season to last year’s or the year before that, or worse still compare your plans to those of friends and family. It will do nothing more than trigger a new bout of anxiety, and indeed, stress.

And if there’s any hope of unwinding this Christmas, such triggers are undoubtedly worth avoiding. cc

DECEMBER 2013 / JANUARY 2014

For the love of food There is no end to the way food and drink can be meddled with and recreated, and 2014 is proving to be another exciting year for emerging food trends.

Martina Said scouts around for the top trends to look out for.

01. Sustainable Packaging This is a case of ‘having the cake and eating it.’ With the adoption of sustainable practices by many food and beverages manufacturers around the world, a recent invention of edible packaging means you not only eat the contents, but the wrapping too. Frozen yoghurt and ice cream could be eaten with a flavoured edible skin made from natural food particles. The idea was the brainchild of Wikifood founder Dave Edwards, who says “suddenly, packaging becomes part of the culinary experience.”

02. Butter takes a Backseat Regular butter in a bread basket is becoming less common in restaurants, with many offering a more delectable and sophisticated spread to go with bread.

Some of the more extravagant spreads include tomato jam, smoked eggplant dip, roasted garlic butter, chicken liver butter and garlic mustard. Even just the mention of these spreads is enough to make you forget butter for your bread – it’s time to experiment with the faithful old bread basket.

03. Green going Mainstream We often associate ‘going green’ with ‘lettuce’, as though it is the only vegetable that could grace our dinner plate when, in reality, it is hardly the most exciting food one can think of. But going green means much more than that, and healthy establishments are becoming less niche.

Many eco-friendly, gluten-free eateries are focusing on vegetable-based menus, driven by an increase in vegetarians, vegans and weight-conscious people.

05. Fancy Ice This new trend seeks to add a punch of flavour to a drink, and looks cool too.

Ice cubes are being given almost equal attention to the drink itself, experimenting with different flavours, sizes of ice cubes and shapes. A growing number of bars are adopting this new trend, recognising both its aesthetic and palatable value. The cubes are frozen in moulds in a blast freezer and infused with anything from berries and mint leaves to pretty rose petals.

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06. Tasty Tea Cocktails There really are no limits when it comes to mixing drinks and creating new flavours, although it does require a dose of talent to get the flavour just right. Bartenders are now experimenting with tea for new drinks on their menu. Creating a tea cocktail, however, appears to require a little care and attention. Tea needs to be steeped in a spirit, but because there is a lot of water in tea, the general rule of thumb is to soak three tea bags for one 750ml bottle, for about 45 minutes. The taste of a cocktail is somewhat lifted and wonderfully balanced.

07. Heart-warming Treats As Christmas rolls around, food and drink become staple gifts for friends and clients, and the good old hamper never fails to do the trick. Farsons Direct Premium have a great selection of wines, spirits, whiskies and tasty delicacies that could either be bought individually or compiled as a hamper. A hearty drink or mouth-watering food is a sure way of spoiling someone this festive season. Farsons Direct, The Brewery, Mdina Road, Mriehel.

Tel: 2381 4444; www.farsonsdirect.com cc

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04. Unconventional Combos People love trying out new food items, often the more odd and unpredictable, the better. So is the case with the ramen burger, which looks exactly as it sounds. Invented

by Keizo Shimamoto, who debuted the dish at a food festival in Brooklyn, people have waited for hours in a queue to get their hands on one. The burger ‘bun’ is made from fresh ramen noodles, sandwiching a juicy beef burger topped with green onion, cheese and a soy-based sauce. The result is a tasty blend of two very popular plates, and a pretty filling one too.

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CC audio-visual

Filming in Malta The film industry is one of the defining types of activity in Malta – along with tourism, education and yachting. U-Film (Film Corporation Ltd) is a structural division of U-group, a Russian-Maltese Group of Companies that works within the film production industry. U-Film (Film Corporation Ltd) has been providing its customers with all sorts of services including a unique opportunity for filming deep under the water for over seven years.

U-Film (Film Corporation Ltd) assists its clients in organising the filming process at all implementation stages from pre to post production. The company also offers additional services such as legal agreement,

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transport services, casting and location scouting, among others. In seven years, U-Film has been involved in around 20 projects featuring Russian and international films as well as commercials.

U-Film (Film Corporation Ltd) is a regular participant at the most important international festivals, film screenings and forums. In 2013 the company participated in International Film Festivals in Cannes, Berlin and Rome. The Russian-Maltese company actively promotes the Maltese islands as one of the most unique and convenient filming platforms in Europe which has been termed the ‘Mediterranean Mini-Hollywood’ by The London Times.

Development of the filming industry in Malta has been promoted via its clear waters and ancient temples, which are older than the Egyptian pyramids. But the greatest attractions in Malta are the wrecks found at the bottom of the

archipelago, with vessels ranging from Phoenician galleys to modern boats. The most attractive wrecks in Malta are the destroyer escort Southworld (65-75m), tug Rożi (32m) and that which is thought to be Saint Paul’s ship, found by archaeologists in 1990. U-Film’s unique contribution to the industry is the high quality equipment it manages, which includes a submarine which can go 300m beneath the surface.

Renowned Russian film stars filming in Malta Malta has featured in a variety of countries in several films over the years with directors often choosing to set the story in Malta, after becoming inspired by the island’s beauty.

Malta based U-Film (Film Corporation Ltd), has just finished providing film production services to a Russian film called The Divers, which is expected to hit theatres in mid-2014.

The producers are Sergey Melkumov and Alexander Rodnyansky. The Divers was filmed under Russian director Konstantin Buslov.

The Director of Photography was Sergey Machilsky. This action-packed adventure was filmed in over 20 different locations across Malta including Valletta (at the National Library and Grandmaster’s Palace), St Thomas Bay, Marsaxlokk and Vittoriosa.

Underwater Director of Photography Evgeny Tomashov was responsible for capturing the beauty of the Maltese seascape, as DECEMBER 2013 / JANUARY 2014

CC audio-visual

U-Film (Film Corporation Ltd) specialises in underwater filming.

The Divers is about treasure hunting coupled with intriguing relationships between the main characters and incorporates some elements of Maltese history. Russian scriptwriter Denis Rodimin, known for scripting a string of hits including the cult film Boomer, wrote the script for The Divers. The cast includes top Russian actors Konstantin Khabenskiy and Svetlana Khodchenkova, with emerging star Denis Shvedov. Svetlana Khodchenkova has just finished a starring role in James Mangold’s The Wolverine as The Viper. Sergey Melkumov, Alexander Rodnyansky and Natalia Gorina are producing through NonStop Production (www. nonstop-kino.ru) and Twin Media.

In Autumn 2013, U-Film (Film Corporation Ltd) launched an ambitious film project with a preliminary working title: The Depths of the Mediterranean. The project involves a series of shots of various sceneries in the territorial waters of Malta.

The company plans to continue working on the project and is actively preparing to shoot the second part. The third phase of filming will take place in February 2014. cc www.filmcorporation.com.mt

CC make the headlines

Demystifying the myth of the oil and gas industry To date largely an unchartered territory, the oil and gas exploration sector, together with its ancillary activities, is brimming with hope in view of the drilling results expected with earnest next quarter in a deep well in block 4 in the south. This sector has in fact been receiving increasing feeds in the local press.

PKF Malta, a business advisory firm with visionary capacity, is spearheading the research and development leg for this sector through its own substantial investment and unmatched initiative, now envisaging oil and gas related services to be within the firm’s portfolio in the near future.

The firm intends to operate in conjunction with other offices and has been directly investing in the promotion of the mainstream oil and gas sector since 2012.

With great foresight and with the aim of boosting Malta’s profile as an oil and gas hub, in December 2012 PKF teamed up with OilBarrel.com to host a conference in London on oil and gas exploration. Speakers included senior government officials, oil and gas corporate leaders, financiers and global experts who came together to discuss the latest developments in the industry.

In April 2013, PKF participated in another oil and gas conference in London, this time organised by MasterInvestor, with 2500 attendees, which centred around energy generation and the most prominent global concerns on the subject. This time, PKF senior partner George Mangion delivered a presentation on the history of exploration and drilling since 1954 when oil was first discovered offshore in the Ragusa basin Sicily. Today, almost 60 years later, it is never too late to try again to make Malta a hub in the Mediterranean for oil and gas

exploration. In fact, tapping into dividends from production sharing agreements were key exponents of the presentation, where short-term and longer-term risk and return options were explored, discussed and debated in expert detail.

The importance of incentivising foreign investors to risk capital can never be stressed enough. While acknowledging the limitations identified in the past, PKF always continues to look ahead, filled with promise of benefits that can be reaped from technology’s latest industry evolvements. At present, these include powerful 3D seismic tests, subsea systems and intelligent drilling software such as subsea systems, that optimally employed have greater potential than ever before to strike gold, or rather ‘black gold’, as it has so aptly been dubbed.

Indeed, PKF’s chief exponent did not sit still for long, and in October 2013 returned to the OilBarrel conference in London, this time as a speaker. PKF’s senior partner was also in Aberdeen, Scotland just last week, where he held a number of intense meetings over seven days with tax experts, international lawyers and professionals from the Port Authority, the Oil and Gas UK organisation, a number of support operators, the North Sea industry and the Bank of Scotland. He also attended a breakfast briefing delivered by top officials from oil company giants entitled ‘Maximising Economic Recovery from the UK Continental Shelf’, at Boyd Orr Hall, Aberdeen Exhibition and Conference Centre.

There are a lot of exciting things in the

pipeline for PKF. One nascent concept is a novel publication on the oil and gas industry covering contributions from the largest exponents in the PKF network ranging from Aberdeen, Houston, Mexico, Brazil and Middle East, as they feature in the direct involvement in the supply chain of the oil and gas industry. Another goal is the hosting of an exclusive conference for overseas investors in collaboration with an international firm that will be yet another first for PKF Malta. The conference is currently targeting early summer of 2014.

Is it a pie in the sky or a dream in the making? Really and truly many countries in the Mediterranean such as Israel, Cyprus, Sicily, Tunisia and Morocco have all landed so to say a spot in the pot, making partaking in the same almost exciting for the Maltese onlookers. “We only need one lucky strike,” says George Mangion whose enthusiasm is truly infectious, “and the good news will spread like wildfire, attracting attention from oil giants such as Shell, BP, Exxon, Apache , Chevron, Gazprom and others.”

The gilded mantra of building a better future can be singled out as mainly one: perseverance, the vital driver without which nothing great was ever achieved and with which the endless reel of what is seemingly impossible has throughout history never ceased to be realised. PKF moves as an ambassador among foreign investors, paving the way and ever pushing the boundaries, towards a toast that has in its sights the lasting taste of success. cc

Interested parties may contact Kinga Warda on tel: 2148 4373; email: kwarda@pkfmalta.com DECEMBER 2013 / JANUARY 2014

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Budget 2014 property measures

By Gleason Bezzina The Budget always brings insecurity and speculation, and any increase in taxes or prices decreases people’s feel good factor and spending money, making them think twice when making big decisions or purchases. I would say that this Budget was a mild one, bearing in mind the international slowdown, increased demands on fossil fuels and the fight against tax evasion, but also incentivising property owners and potential buyers.

The Budget 2014 measures that concern property are: • Public Private Partnerships to build more affordable apartments – The Government intends to enter into agreements with the private sector in order to build more affordable apartments by issuing expressions of interest to build designated plots of land. This measure will target the provision of 300 units and it is envisaged that the contractor will be obliged to engage a facilities company to take care of maintenance once the project is completed.

• Housing Authority to issue a number of shell/semi-finished apartments for sale at a subsidised price – The Housing Authority will be putting a number of shell or semi-finished apartments from its own housing stock up for sale at a subsidised price. Agreements with successful applicants would normally be signed

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after a year, following means testing and verification of assets.

Incentivising landlords to put vacant property on the market – Government will tax rental income from residential property at a flat rate of 15 per cent.

Financial support to first-time buyers – First-time buyers who are going to finalise their contract in 2014 will be exempt from paying the 3.5 per cent duty on the first €150,000 of the property bought. This one-time measure is expected to support the property market and enable first-time buyers to save up to €5,250 on their first residence.

Regulations to review and revise social rents Opportunity for tenants residing in Government-owned apartments to become owners of their residence – The Housing Authority will again be offering the opportunity to tenants residing in Government-owned apartments to become owners of their residence following means testing and verification of assets.

I would say that two of the measures that will be boosting property are: 1) The first time buyers’ incentive of reduced tax, leaving them with more disposable income to invest in furnishings or even reduce capital investment significantly.

This will increase demand in a specific property segment. Our predictions are that the good properties will sell first, and considering that MEPA applications for developments in the last years have slowed by more than half, it will impinge on market availability. Our recommendation is therefore to carry out a thorough search, speak to their preferred bank and make a decision – the grant is a great incentive to own a property and save money.

2) The 15 per cent for rental income, meaning a huge tax saving. This will increase demand in buy-to-rent properties for investors, as the return on rental properties is five to six per cent p.a., capital appreciation on property is around five per cent p.a. and paying a 15 per cent tax on the income declared has made it one of the safest investments. We have customers who bought properties in good rental areas and entrust us with the rental, management of the property, collection of rent from tenants and maintenance. Investors tell us that this is the best financial return they ever got from an investment as the investment is protected; the property is being managed; the property appreciates yearly; it is better than money at the bank as it does not devaluate; and it is a steady monthly return. cc

BEZZ Real Estate, 57, Gorg Borg Olivier Street, St Julians.

Tel: 2060 6020; mob: 9989 8588; email: gleason@bezzrealestate.com

DECEMBER 2013 / JANUARY 2014

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Chivas Regal celebrates craftsmanship and style with new ‘Made for Gentlemen’ limited edition by Patrick Grant Chivas Regal, the world’s first luxury Scotch whisky, is collaborating for the second year running with an acclaimed British craftsman as it continues its successful ‘Made for Gentlemen’ campaign.

The new release sees the brand link up with Patrick Grant, a modern icon in luxury menswear credited for reinventing bespoke London tailors Norton & Sons of Savile Row. The limited edition, which contains a bottle of Chivas 12, showcases four silhouettes, each featuring a different style accessory associated with modern gentlemen: a tie, a cufflink, a watch and a pocket square.

Richard Black, Global Brand Director for Chivas Regal, comments: “last year’s collaboration with Tim Little was our most successful to date, distributed in over 60 markets. With our new limited edition, we wanted to celebrate the values of craftsmanship and heritage that are integral to Chivas Regal and we’re delighted with the result. It has been a pleasure to work with Patrick Grant, a renowned figure in the tailoring industry and we hope Chivas Regal fans will enjoy

and treasure this unique collectible.”

Patrick Grant remarks: “the collaboration with Chivas Regal was a natural alliance of artistry and shared vision. The tailor’s obsession with mastering complexity in achieving perfect balance in form and finish are values also held dear by the Master Blender of Chivas Regal, Colin Scott. Ultimately, we both strive to give our

customers stand out experiences and luxury goods of lasting value.” cc

George’s Victoria store employs 12 colleagues and kicked off with a launch party on Saturday 23rd November which featured guest appearances from the celebrity cast members of the Maltese popular tv show Klikka as well as meet and greets with Tigger, Minnie Mouse, Spider-man and Hello Kitty.

Jo Whitfield, George Retail and International Director, said “The Victoria store is our second international franchise opening in Malta and we are confident it will prove as popular as its predecessor in

Hamrun. Our overseas stores have been a great success and as our international customer base continues to expand we remain on the lookout for exciting new franchise opportunities.”

An international team is based at the George HQ in Lutterworth to establish, build and manage the franchise stores and develop the franchise partnerships. The team ensures that all franchise partners adhere to the brand’s core values of style, quality and value for money. cc

The Chivas 12 Made for Gentlemen by Patrick Grant limited edition is available in Malta and is marketed and distributed by Farsons Beverage Imports Co Ltd. Trade Enquiries: 2381 4400.

George at Asda opens second Maltese franchise store Store is the first in one of Gozo’s largest prime shopping locations Fashion retailer George at Asda opened its first standalone store in Gozo on the 19th November this year – the second of its kind in Malta – as it continues to expand overseas to meet the growing demand of its global customers.

The new store resides in the popular Duke Shopping Mall in Victoria, one of only two shopping malls in Gozo. The 6,000 square metre centre is home to several world-renowned brands and a luxurious spa, making it a prime location for thousands of visitors every year.

The launch of the Gozo store came after the success of Malta’s first George franchise store that opened in Hamrun last April. The new 600 square metre store sells outfits for every member of the family including a wide range of clothing, footwear and essentials. It has launched with the hotly tipped seasonal fashion ranges and will also house George’s popular licensed character ranges.

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NEWS Internationalisation

01.

MEBC courtesy call to the President of Malta

02.

Meeting with the RomanianMaltese Chamber of Commerce

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Honorary Consul in spe to Graz in Austria visits Malta Chamber

On 2nd October, Committee Members of the Middle East Business Council and the Secretariat paid a courtesy call to His Excellency Dr George Abela at San Anton Palace. This visit was one of a series of introductory meetings held by the newlyformed Business Council. Chairman Tonio Casapinta outlined the scope of the Business Council. The President talked about his various experiences in the Middle East region and spoke with each of the members about their business and the opportunities in the region. The President said that Malta has a lot of possibilities of doing business in the Gulf countries due to the expertise of its workforce, combined with the credibility and stability of Malta as a nation located centrally in the Mediterranean.

The Romanian-Maltese Chamber of Commerce is a bilateral Chamber of Commerce, founded in Bucharest and Malta.

It seeks to promote business between Malta and Romania. This was the second visit to the Malta Chamber by President Eduard Doandes who was accompanied by General Secretary Ana-Maria Tepus, a Professor of Economic Management, as well as Charles Scerri of Charles Scerri & Associates, and Dr Stefan Zrinzo Azzopardi of SZA Law Firm.

Discussions with Malta Chamber Internationalisation Manager Klaus Pedersen focused on the best way for the Malta Chamber and the Romania-Malta Chamber to work together to promote business between the two countries, and indeed the wider region. Mr Doandes, who has wide business experience in the Balkan countries as well as a number of the former Soviet states, believes that there are many possibilities for business in the form of company formation and investment into Malta and vice-versa for Maltese companies seeking to do business in Romania.

On 16th October, Internationalisation Manager Klaus Pedersen met with Alois Sundl, who was in Malta as part of his vetting process to become Malta’s Honorary Consul in the city of Graz in Austria.

Mr Sundl has a background in insurance, having spearheaded the insurance company Merkur as Chairman and Director. Under Mr Sundl’s chairmanship, the company has gone from being one of the leading insurance companies in Austria, to also becoming one of the leading life insurance companies in most Balkan countries.

Mr Sundl is keen to help to develop business between Malta and Austria, and remains at the disposal of Maltese companies interested in developing their business in Austria.

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Middle East Business Council welcomes statement by the Prime Minister Media release issued on 15th October 2013 The Middle East Business Council noted with pleasure the comments made by the Hon. Prime Minister regarding access to visas for citizens of Gulf States.

Such reaction from the Administration augurs well for future business relations in the region. The Middle East Business Council stated that it was ready to work with the Government of Malta to convey the message that Malta is the gateway of the Middle East to Europe. Any effort to facilitate applications for visas is good news for the creation of business.

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Delegation to Israel and Palestine Malta Chamber President David G. Curmi together with Anton Borg and Frank V. Farrugia, Deputy President and Vice President respectively, formed part of the delegation led by the Prime Minister to Israel and Palestine in October 2013.

During the course of the visit, the Malta Chamber delegation participated in a

business forum with the Manufacturers Association of Israel during which the President addressed those present. Mr Curmi spoke about the Malta Chamber’s history, structure and role. He said that the current trade balance between Malta and Israel was in Malta’s favour with exports dominated by organic chemicals, pharmaceuticals, heavy machinery and measuring equipment. Mr Curmi noted that potential exists between the two countries in the exchange of international services and ICT. He added that Malta was fast developing a cluster of world leaders in the digital industry. He suggested bringing together technology advanced Israeli companies and Maltabased companies to market their digital games and related services across Europe.

The business forum was followed by the signing of a Memorandum of Understanding between the Malta Chamber and the Manufacturers Association of Israel.

The Malta Chamber delegation met the Vice President and Director of the International Division of the Tel Aviv and Central Israel Chamber of Commerce, and participated in business-to-business meetings with Israeli entrepreneurs.

The delegation also visited Pharmacare in Ramallah, Palestine, where Mr Curmi, on behalf of the Malta Chamber, signed a

Memorandum of Understanding with the Palestinian Federation of Industries.

Business-to-business meetings were also held with Palestinian entrepreneurs and a number of business opportunities have been identified between the two countries.

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Malta Chamber discusses new Italian law with Embassy The Malta Chamber requested the assistance of the Italian Embassy with regard to the implementation of a new Italian law which had serious implications on local road transporters that needed to drive through Italian territory carrying hazardous waste.

Italy was, in fact, implementing a new law entitled SISTRI which required traceability equipment to be installed on vehicles loaded with hazardous waste before 1st November. Further to correspondence with the Ambassador, a meeting was held with the Embassy’s Commercial Attaché during which the necessary safeguards for local transporters were requested.

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NEWS Events & Initiatives

01.

SEPA information session In February 2012, the European Union (EU) legislator adopted the ‘Regulation (EU) No 260/2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009’ (the SEPA Regulation). It defines 1st February 2014 as the deadline in the euro area for compliance with the core provisions of this Regulation.

In non-euro countries, the deadline is 31st October 2016. Effectively, this means that as of these dates, existing national euro credit transfer and direct debit schemes will be replaced by SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD).

The Malta Chamber, the National SEPA Committee, the Central Bank of Malta and the Malta Bankers’ Association organised yet another information seminar for Malta Chamber members on 26th September.

Herman Ciappara from the Central Bank of Malta and Vince Demicoli on behalf of the Malta Bankers’ Association provided a general presentation on SEPA, highlighting its aims and benefits as well as practical information on how the business community should prepare from a practical and IT perspective.

Particular importance was given to the need for businesses to start the organisational preparations for migration to the new system at all levels, as well as to hold talks and consultation with the service providers and banks.

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Malta Chamber Deputy President and RTDI Committee meet Parliamentary Secretary for Research, Innovation, Youth and Sport The Hon. Dr Stefan Buontempo, Parliamentary Secretary for Research, Innovation, Youth and Sport, welcomed Malta Chamber Deputy President Anton Borg and RTDI committee members to the Ministry for Education and Employment for a discussion on research and innovation.

During the meeting, Mr Borg proposed the establishment of a Board dealing specifically with Research and Innovation. The Board would include the Malta Chamber’s RTDI committee members together with representatives of the Secretariat. It was recommended that the Board be developed to provide the best economic benefit to industry and business. It would also serve as a tool for identifying areas in which SMART specialisation can be carried out. The possibility of setting up a government-funded scheme to link business and academia was also discussed. The difficulties experienced by researchers travelling from third world countries to Malta were also acknowledged.

Dr Buontempo was in agreement with the proposal for the setting up of this Board as a matter of priority, and agreed that the Board should be business driven.

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Malta Chamber participates in the Enterprise Consultative Council The Enterprise Consultative Council was convened in September under the chairmanship of Dr Christian Cardona, Minister for the Economy, Investment and Small Business.

The agenda included an update on progress made on the Family Business Act

Consultation Exercise. Dr Nadine Sant, Chairperson of the newly appointed Family Business Act Committee reported on the work carried out so far and the milestones envisaged until the presentation of the draft Bill before the end of next year.

HSBC Bank Malta plc and Fimbank plc gave an overview of how ‘Factoring’ arrangements or ‘Receivables Finance’ are operated by the banks. A general discussion and sharing of experience ensued on the subject.

Sectors Head Lino Mintoff attended the event on behalf of the Malta Chamber.

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Vodafone renews agreement with Malta Chamber Media release issued on 1st October 2013 Vodafone renewed its Bronze Support Agreement with the Malta Chamber. The two-year agreement was signed by then Vodafone CEO Balesh Sharma and Malta Chamber President David G. Curmi.

Through this agreement Vodafone pledged special support to the Malta Chamber’s national mission and role to promote enterprise and growth for the benefit of all its members, the economy and ultimately the nation.

Whilst thanking Vodafone for its support, Mr Curmi remarked that the Malta Chamber considered Support Agreements as constructive alliances.

He said it was through commendable actions such as Vodafone’s that the Malta Chamber is able to generate benefit and value to the local business community.

Mr Sharma said “we are happy to continue supporting the Chamber in its mission of creating favourable economic conditions which, ultimately, benefit the wider community. We look forward to build on this successful relationship over the coming two-year period.”

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05.

WEEE Q&A session for manufacturing companies

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Lessons from the economic crisis: An employer’s perspective

A Q&A session was held on 8th October to address the Waste Electrical and Electronic Equipment Directive (WEEE Directive) with a focus on the arising obligations for manufacturing companies. Simon Alden, Chairman of the Electrical and Electronic Manufacturers Business Section chaired the session while MEPA officials, Kevin Mercieca and Yvette Smith Rossignaud, addressed the attending members.

An overview of the definitions and the arising obligations from the WEEE directive were given, including the broad WEEE group categories and the excluded products.

Members were reminded that companies which, according to the definition of the Directive, qualified as WEEE producers are required to register with MEPA and provide the Authority with the requested information. Mr Mercieca also advised that companies should start making endof-life considerations in their business transactions and consider including takeback arrangements in their contracts with suppliers. An overview was also provided of the scope and new aspects of the recast Directive, which will become national law as from February 2014, including the new collection and recovery/recycling targets. The new Directive also enforces the requirement for any producer selling in a member state where it is not established, to appoint a person as its authorised representative to undertake the responsibility of fulfilling the obligations pursuant to the WEEE Directive in that territory.

Mr Alden informed attendees that as a follow-up the Malta Chamber will be preparing and distributing a brochure among its members providing basic information on WEEE, outlining its scope, who it concerns, which products it concerns, and what the arising obligations are.

On 11th October a conference organised by the Employers’ Group of the European Economic and Social Committee (EESC), the Malta Chamber and other social partners was held at the Malta Chamber.

The objective of the conference was to initiate a frank and open debate on the various responses to the financial and economic crisis in EU member states, and analyse them from a business perspective.

The aim was to encourage an exchange of views, diagnoses and practices between EESC Employers’ Group members and leading Maltese business representatives.

Malta Chamber President David G. Curmi opened the conference together with Jacek Krawczyk, President of the Employers’ Group of the EESC. The President said that in the Malta Chamber’s point of view, the current problems in the euro zone were well understood. Some countries needed to strengthen their balance sheets and improve their competitiveness through reform. From a local dimension he said that ever since the emergence of the financial crisis, the Malta Chamber had called for economic direction based on two principles: wealth had to be generated before it was distributed and any solution to the economic predicament needed to be based on growth. He said that the Malta Chamber believed that wages must be better aligned to productivity, especially when considering that other countries were implementing major reforms to become more productive and costcompetitive. He said that the country’s productive capabilities must be given a

significant boost through competitivenessenhancing measures in order to increase its labour force and productivity, as well as the economy’s capabilities to absorb the required added resources.

In his conclusion, the President said that “business is not the problem, but rather the solution. Therefore, business has to take centre stage in the new economic plans the EU will be proposing and possibly introducing over the months to come.”

Two panel discussions followed. The first dealt with questions from a national point of view and an exchange of ideas as to how the governments and employers were dealing with the crisis and the best practices adopted. The first panel was moderated by Vanessa Macdonald and included the following members of the EESC Employers Group: David Croughan, Economist; Irini Ivoni Pari, Hellenic Federation of Enterprises; Peter Clever, German Employers’ Association BDA and Peter Morgan, an independent businessman.

The second panel was moderated by Stefano Mallia, Vice President of the EESC Employers’ Group. It discussed Europe’s response to the economic crisis and whether the EU was aware of the needs and realities of employers. The panel was composed of the Hon. Dr Mario de Marco, Deputy Leader of the Opposition and Spokesman on the Economy, Investment and Small Business; Gérald Petit, Policy Analyst – Analysis of Economic Reforms, DG Enterprise; David G. Curmi, President of the Malta Chamber; Arthur Muscat, President, MEA; Tony Zahra, MHRA President; and Paul Abela, GRTU President.

The closing address was delivered by the Prime Minister, the Hon. Dr Joseph Muscat.

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Malta Chamber represented at BusinessEurope EXCO Meeting Kevin J. Borg participated in a meeting for Director Generals of member organisations in BusinessEurope. The meeting was held in Brussels on 17th October.

The highlight of the meeting was an exchange of views on the digital economy with Vice President of the European Commission and Commissioner responsible for the Digital Agenda, Neelie Kroes. The discussion centred on Europe’s digital agenda as a means to promote growth and jobs through innovation and improved competitiveness in this area through stable, high-speed connectivity. Emphasis was made by the Commissioner on the enhancement of cooperation between operators and better functioning of transparent markets.

Other items discussed at the meeting were BusinessEurope’s message to the EU October Council, feedback from DG ECFIN relating to the 2014 Reform Barometer and BusinessEurope’s priorities for the coming year.

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Maltese SMEs learn about improving their access to finance “I reiterate the need to foster the expansion of micro-credit facilities, allocate more EU-funded grants to private enterprise, enhance the usage of JEREMIE

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and similar instruments, speed up action to facilitate venture capital and implement investor readiness training and mentoring programmes,” stated Malta Chamber President David G. Curmi, during an information session about access to finance for SMEs organised by Bank of Valletta, the Malta Chamber and the European Commission Representation in Malta.

Mr Curmi added that there existed a clear gap in financing at a local level and that the Malta Chamber had, through the Malta Business Bureau, actively advocated the need to tackle this subject. The MBB recently presented a study on access to finance at MCESD level and a working group made up of the social partners was also formed to discuss a way forward.

The event was chaired by Peter J. Sant, Head of Research and EU Affairs at Bank of Valletta. It provided information about the BOV JEREMIE financing package and made a direct reference to the EU Horizon 2020 initiative particularly the Fast Track to Innovation (FTI). Mr Sant said “an interesting programme that is being developed is the Fast Track to Innovation Pilots under the EU’s Horizon 2020 Programme. Innovative, close-to-market proposals relating to any technology field and societal challenges will be supported under the FTI.” Martin Bugelli, Head of the European Commission Representation in Malta, said that JEREMIE was just one example of targeted EU funding aimed at ensuring a healthy return on investment in terms

of growth and job creation among SMEs. He pointed out that there were different ways in which SMEs could be supported and that other financial instruments could be explored in the implementation of the EU’s budget for 2014-2020.

Mark Scicluna Bartoli, Head of EU Business Development at Bank of Valletta gave an overview of the new top-up of the JEREMIE scheme. He explained that, to date, the Bank of Valletta JEREMIE initiative had assisted over 530 SMEs. The recent JEREMIE guarantee top-up allowed Bank of Valletta to provide an additional 11 million euro of its own funds to assist a further 100 SMEs over the coming months.

Other speakers included Steven Galea, a chartered accountant, who covered a number of scenarios and case studies of potential JEREMIE beneficiaries, namely SMEs and start-ups. Andre Fenech, Head of Policy Development at the Malta Chamber gave a summary of other financial instruments which could be introduced in Malta such as venture capital, business angels networks and seed financing.

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Wine tasting event The sixth edition of the Malta Chamber’s wine tasting evening took place on 18th October. This event has become a fixture in the Malta Chamber’s annual calendar and one which is well-supported by those members who produce or import wine and also by the general membership.

The number of persons attending seems to be rising every year, with over 200 persons at this year’s event.

The Malta Chamber does not charge a participation fee but it asks those who attend to make a donation at the entrance. The money collected this year will be given to Caritas Malta.

The participating companies were: Antonio Piscopo Co Ltd, Cassar Camilleri Ltd, Charles Grech & Co Ltd, Farsons Beverage Import Co Ltd, Francis Busuttil & Sons (Marketing) Ltd, M Demajo (Wines & Spirits) Ltd, NM Arrigo Ltd, Red October Co Ltd, S Rausi Trading Ltd and Wembley Stores Co Ltd, who presented wines from Argentina, Australia, Campagna, Chile, France, Friuli Venezia Guilia, Malta, Northern Italy, Piemonte, Sicily and South Africa.

The event would not have been possible had it not been for sponsors Continental Purchasing Co. Ltd who supplied Schott Zwiezel Glassware, Villa Arrigo who provided the food and Professional Marketing Services Ltd who printed the invitations.

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Second workshop of the Food Industrial Advisory Platform of Malta

11.

National Conference marking the launch of the EY ‘Malta Attractiveness Report’

A second workshop was held on 22nd October through the collaborative platform set up in 2012 between the Department of Food Studies and Environmental Health at the University of Malta and the Malta Chamber Food and Beverage Processors Business Section. This ongoing collaboration facilitates the organisation of events which are of direct relevance to the industry, whilst fostering mutual awareness of activities and issues in Industry and academia.

Head of Department Dr Anna McElhatton opened the seminar by giving an overview of the facilities and activities of the Department, including the new BSc of Science (Honours) in Applied Food and Nutritional Science.

Dr McElhatton explained that this will involve visits by students to Industry in their second year and placements in their third year. Dr Vasilis Valdramidis presented a number of ongoing interesting research projects, many of which with potential direct impact on food industry processes, including techniques of bacterial reduction and shelf-life extension. This was followed by an interactive workshop guided by lecturer Petra Jones during which participants were asked to draw and present mock HACCP and traceability plans. This also provided a valuable opportunity for interaction between students and industry professionals.

On 25th October, Malta Chamber President David G. Curmi welcomed 160 persons to the national conference entitled ‘The Economy – Today and Tomorrow’ on the Malta Attractiveness Survey 2013 which was co-organised by EY and the Malta Chamber. The event was held to discuss the results of the survey carried out by EY. The Malta Chamber supported this initiative because it believes that local and foreign investments are crucial to Malta’s economy.

In his opening address the President said that the Malta Chamber was a key stakeholder in ensuring the best conditions for investors and that through this report EY provided a concrete tool to assist in fulfilling this mission. He said that it was imperative for Malta to retain its objective of aiming for export-led growth from its balanced and diversified economy.

Mr Curmi spoke about the results of the annual EUROCHAMBRES Economic Survey and the industrial confidence index compiled by the Malta Chamber on a monthly basis for the European Commission.

The emerging sentiment was positive but net employment generation had tapered in the past three years. The economy remained heavily reliant on the performance of export-oriented operations with local companies registering a decline in exports in 2013. This showed a need to be vigilant in safeguarding competitiveness especially when considering the competition from countries which had instituted pay cuts as part of austerity measures introduced to recover from the economic crisis. He said that Malta must take heed of the evolving

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competitive dynamics. Nothing could be taken for granted but the Malta Chamber sometimes doubted whether other social partners were on the same wavelength in understanding the urgency of this need.

For several years the Malta Chamber had championed the cause of competitiveness, expressing its concerns about rising labour costs and labour market inflexibilities.

Mr Curmi cited precarious work, the Maternity Leave issue and the failure to introduce a measure of productivity in the COLA mechanism as examples.

In conclusion, Mr Curmi said the report was a valuable tool for the Malta Chamber to further develop its policies and to better prepare for dialogue with Government and other social partners. The findings of the report were what the Malta Chamber thought about the country as a domicile for business. He said that rendering the economic environment more attractive to investors was an ongoing process. The Malta Chamber appreciated the opportunity to discuss a topic which was so essential to the interests of members, to discuss the findings of this survey and start to find the answers to the question: how can we make Malta a better place to invest in?

The conference was also addressed by the Hon. Prof. Edward Scicluna, Minister of Finance as well as Prof. Jan Peter Balkenende, former Prime Minister of the Netherlands and currently a Partner, Corporate Responsibility at EY. Other speakers included Ronald Attard, Country Managing Partner of EY Malta; Matthias Fauser, Chairman of the Malta Chamber’s Manufacturers and Other Industries Economic Group; and the Hon. Dr Mario de Marco, PN Spokesperson on Economic Affairs.

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Interview with Business Herald Malta Chamber Director General Kevin J. Borg and Middle East Business Council Chairman Tonio Casapinta were interviewed

by Michel Cousins, Editor in Chief and Nel Ash, Deputy Editor of the Libya Herald. The Herald is an independent, English-language newspaper based in Tripoli which was launched in February 2012. The interview is scheduled to appear in the bi-monthly sister publication called Libya Herald Business Eye. In their interventions, the Malta Chamber representatives discussed the manner in which the Malta Chamber intervened and continues to intervene on behalf of its members which deal principally with the Libyan market. Ample reference was made to the work of the Malta Chamber’s Internationalisation Desk and the LibyanMaltese Chamber of Commerce. Mr Cousins underlined the immense economic potential lying in Libya for Maltese entrepreneurs particularly in service industries and in English language teaching.

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Graduation ceremony for the Diploma in Manufacturing Excellence In November, the Malta Chamber hosted the graduation ceremony for 14 graduates who successfully completed the Diploma Course in Manufacturing Excellence between the years 2011 and 2013.

The graduates were congratulated by Malta Chamber President David G. Curmi, who said that he was greatly encouraged by the graduates’ initiative to specialise further in manufacturing. Mr Curmi emphasised the importance for businesses to continuously invest in their employees’ education as this was one of the foremost pillars upon which Malta’s economy must be built. A Diploma provided students with an opportunity to formalise that which they have learned through experience, whilst having their knowhow and capabilities validated.

Mr Curmi said that “our country will benefit from a relevant and skilled workforce, providing our industry with a better chance of building and retaining a more resilient and competitive position.”

Stephen Cachia, Principal and CEO of MCAST, also addressed the graduates and gave a brief account of the idea behind

the initiative to launch this Diploma, which was initiated through a close collaboration between the College and the Malta Chamber.

This course, accredited by the City and Guilds, was aimed at individuals who were already working at a supervisory level in a manufacturing environment so as to provide them with enhanced knowledge that could ultimately lead them to a progression in their tasks and responsibilities.

Mr Cachia thanked the Malta Chamber for helping MCAST stay well updated on the business industry’s ongoing developments and requirements. This was of extreme importance for the College as it provided it with a relationship with stakeholders, together with continuous industry feedback.

The Malta Chamber President, Mr Cachia and John Sciberras, Director of Institute of Electrical and Electronics Engineering, presented the graduates with their Diploma certificates.

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NEWS Issues & Positions

01.

Malta Chamber urges political consensus on health sector reform Media release issued on 15th October 2013 In line with the Malta Chamber’s public pronouncements and the recent discussions which the Malta Chamber held with the main political parties and the Church authorities on the need to establish political consensus on a sustainable health system, the Malta Chamber is pleased to note the Nationalist Party’s proposal for the setting up of a parliamentary standing committee on health to discuss health related issues and to seek political consensus on this sensitive sector.

It is the Malta Chamber’s firm belief that Health Sector reform needs to be addressed on a national level and at arm’s length from political positioning.

DECEMBER 2013 / JANUARY 2014

In fact, the Malta Chamber is planning to organise a National Debate event in the immediate future to discuss the sensitive issues related to the health reform with all stakeholders.

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RTK COLA discussion Kevin J. Borg participated in a live radio discussion on the COLA system and the changes required. The Director General debated the subject with representatives of the General Workers Union, Union Ħaddiema Magħqudin and Malta Employers’ Association on a programme called ‘Drittijiet u Dmirijiet’ aired on RTK on 18th October.

On this occasion, the Director General discussed the COLA system within the context of rising labour and other costs affecting Malta’s competitiveness. He

listed the faults of the current system which he described as basic and inflexible, and outlined the necessary changes which the Malta Chamber has been advocating to the system for several years. These included the inclusion of a measure of productivity in the formula to render the system more sustainable.

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Pre-Budget MCESD meetings The Malta Chamber presented its 2014 pre-Budget proposals to the MCESD during a meeting held on 21st October in the presence of the Minister of Finance and the Minister for Social Dialogue, Consumer Affairs and Social Liberties.

The objectives of the Chamber’s proposals for 2014 were two-pronged. They called for increased economic growth through continued enhanced competitiveness and 73

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the rationalisation of public finances. A number of concrete proposals were made in terms of both overriding objectives.

On 1st November, the Malta Chamber was represented at another MCESD meeting to discuss the 2014 Budget in the presence of the Minister of Finance.

On this occasion, the Malta Chamber was represented by the President, the Deputy President and the Director General.

On presenting the Malta Chamber’s priorities, President David G. Curmi insisted that the forthcoming budget needed to aim at public finance consolidation and on the enhancement of national competitiveness to facilitate export-led growth. Reference was made to recent negative indicators in export-related data which are reinforced by internal data collected by the Malta Chamber. The need to render operating costs more competitive was made especially in the light of austerity measures that were being taken in other countries to the benefit of their cost-competitiveness.

At this meeting, the Malta Chamber continued to insist for clarifications on the indirect tax measures proposed by Government. It continued to claim that due to a lack of enforcement capacity, further increases would continue to create market distortions between Chamber members and operators that imported goods through informal channels.

Such confusion and fear was justified given Malta’s poor track record in enforcing payment of indirect taxes through fair and effective market surveillance. The compounding effect of Excise Taxes, Eco-Contribution and VAT further added to the concern of tax abiding operators.

The prospect of raising the tax differential between Malta and neighbouring member states was not acceptable to the Malta Chamber because it rendered contraband all the more attractive to the detriment of Government coffers and tax compliant businesses. Official statements to the effect that enforcement would be stepped up provided little comfort to the Malta Chamber because it had heard them several times before. Ironically, from past experience, it was bona fide operators who bore the brunt of increased investigations because they presented a more convenient target to the authorities. Meanwhile, these operators needed to face unfair competition from illicit traders who were allowed to place items on the Maltese market without the fulfilment of any fiscal, environmental or consumer safety obligation.

In light of the above, the Malta Chamber strongly urged the Minister of Finance to carefully assess the situation before announcing any measure which could be counterproductive to Government and business.

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Uncertainty over proposed budget measures must be immediately addressed

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Malta Chamber on TVAM

Media release issued on 24th October 2013 The Malta Chamber registered its concern with respect to the uncertainty that was allowed to creep into the business community before the last Budget.

The uncertainty rose from unclear messages emerging from the Ministry of Finance regarding increased revenue from indirect taxes being envisaged in an effort to narrow the budget deficit. The Malta Chamber noted that the signals emerging from the authorities – including the documents submitted by the Ministry of Finance to the European Commission – served to heighten rather than dispel such uncertainty. The Chamber regretted to note that the necessary assurances were not forthcoming before the last MCESD meeting held in the presence of the Minister of Finance. On the contrary, ambiguous communication from the Customs Department further fuelled confusion and suspicion amongst economic operators.

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The Malta Chamber President and Deputy President participated in two editions of TVAM – the breakfast time current affairs programme on PBS. On 25th October, Deputy President Anton Borg participated in a discussion on energy rates. Mr Borg highlighted the fact that Malta was the EU member state with the highest commercial electricity rates and had only been recently surpassed by Cyprus.

He said that this was impinging very negatively on Malta’s competitiveness especially for companies which had high electricity intensive operations such as manufacturing. It was encouraging to note that Government was considering lowering the tariffs in 2015, but Malta’s competitiveness position required that the lowering be more substantial and implemented earlier than the stipulated date.

Mr Borg mentioned some practical solutions which the Chamber had been consistently proposing to the current and previous governments. The proposals included the introduction of night tariffs

and bulk discounts which would be justified by lower distribution costs.

President David G. Curmi participated in a discussion on the Budget on 1st November 2013. The President said that the Malta Chamber’s Budget Proposals were based on two objectives: sustainable public finances and economic growth for which continued increased competitiveness was essential. He said that the Malta Chamber believed that public finances should be addressed by reducing waste in resources, the introduction of good efficient structures within Government operations and by tackling abuse in social benefits.

On the possibility of an increase in indirect taxes, Mr Curmi said that the Malta Chamber would expect better enforcement and that Government should be clear about its intentions to ensure that there is no unfair competition from operators who evaded tax.

The President spoke in favour of the introduction of the third pillar voluntary pension schemes. Mr Curmi said that the Malta Chamber was firm in its belief that wealth should be created before it could be distributed.

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Malta Chamber holds regular meeting with Minister Cardona The Malta Chamber held a meeting with the Minister for the Economy, Industry and Small Businesses, the Hon. Christian Cardona. The meeting was held at the Ministry on 29th October to discuss recent trends in export-orientated business sectors.

At this meeting, the Malta Chamber highlighted a number of competitiveness enhancing recommendations which it included in its policy document that was formulated ahead of the 2014 Budget.

These included practical solutions to reduce the cost base of exporters in terms of electricity, transportation and other areas where local operators face disproportionate costs in comparison to operators on mainland Europe. In terms of electricity, these solutions could take the form of night tariffs and/or bulk discounts justified by lower distribution costs. An implementation of similar solutions would send the right signals to investors that Malta is addressing its rising cost base relative to other countries especially those which were the worst hit by the international crisis.

At this meeting the Malta Chamber was represented by the President, Deputy President, the Chairman of the Manufacturing Economic Group and the Director General.

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07.

Higher Excise taxes require fair and effective enforcement Media release issued on 6th November 2013 Prior to the Budget, the Malta Chamber voiced its concern with respect to the uncertainty that had prevailed from the possibility of increased indirect taxes.

As the Budget Speech confirmed increases in Excise Duties on a variety of products and services including beer, sprits and tobacco products, the Malta Chamber reiterated its concern on the probability of increased illicit trading into Malta stemming from the country’s poor track record in enforcing indirect taxes. The country still lacked a fair and effective system of market surveillance to the detriment of government coffers, the consumer and tax compliant businesses.

Without a fair and effective market surveillance system, it is tax compliant operators who bear the brunt of increased investigations because they present a more convenient target to the authorities.

Meanwhile, these operators need to face unfair competition from illicit traders who – on a daily basis – are allowed to place competing items on the Maltese market without the fulfilment of any fiscal, environmental or consumer safety obligation.

This state of affairs is no longer tenable.

With higher Excise Duties in place, the Malta Chamber insisted on the establishment of a unified entity responsible for performing organised and effective market surveillance on both the fiscal and technical levels in a concerted effort to fight the problem of illicit trade. This authority must be armed with the necessary resources and executive powers to be in a position to, once and for all, proactively enforce taxes, laws and regulations on those that operate below the radar and beyond the knowledge of any authority including fiscal.

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The Malta Chamber urges political consensus on Individual Investor Programme Media release issued on 12th November 2013 The Malta Chamber of Commerce, Enterprise and Industry has followed with interest the recent debates in Parliament and elsewhere regarding the Individual Investor Programme (IIP).

Without wishing to enter into the arguments as to whether citizenship should be exchanged for a monetary consideration or otherwise, the Malta Chamber notes that DECEMBER 2013 / JANUARY 2014

the Programme as outlined and debated in Parliament continues to leave serious doubts and unanswered questions.

The Chamber’s main concern centres around the Programme’s impact on the country’s economic reputation. So far, successive Administrations have, rightly so, gone through great lengths to protect the country’s reputation because its importance for future economic development was always recognised – especially in sensitive sectors such as financial services. The Malta Chamber believes that, as things stand, the Programme can affect Malta’s reputation because it can raise questions about the soundness of the country’s fiscal and financial credibility. More importantly, the Chamber believes that Malta’s reputation can be tarnished by the unprecedented extreme positions taken by both sides in Parliament over a matter of such economic sensitivity. This risk has been compounded by the dangerous statements made during the debate which may lead to misinterpretation and taken out of context. Uncertainty, of course, is not conducive to investment attractiveness.

The Malta Chamber strongly feels that the matter should have been handled better but that there is still time for political consensus to be reached. It is of the firm belief that the roll-out of the Programme should not be unduly rushed. Whilst it is acknowledged that 2014 budgetary projections rest on the IIP’s implementation, the Chamber believes that any attempt to force the Programme through at this stage is not in the country’s long-term interest. Therefore, the Chamber strongly urges the country’s political forces to seek common ground before proceeding any further with the Programme as this would be clearly the best outcome for the country.

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Minister Evarist Bartolo meets members of the Board of Management and Human Resources Committee A Malta Chamber delegation met the Minister for Education and Employment, the Hon. Dr. Evarist Bartolo in order to discuss a number of issues falling under his responsibility. The President of the Malta Chamber, David G. Curmi, led the delegation which included members of the Board of Management and members of the Human Resources committee as well as permanent staff.

During the meeting, Minister Bartolo explained that his Ministry was preparing

an extensive strategic plan for education which would include an overhaul of the current system. He explained the need to create better links between education and employability, and also made reference to the importance of promoting entrepreneurship.

He added that Government was embarking on an exercise to audit the current curricula of the various subjects being taught at secondary level to enable the authorities to identify the existing gaps. He said that the private sector had a strong role to play and invited Chamber members to actively participate in this exercise especially through assisting the Ministry in modernising the current guidance teacher set-up. He said that continuous communication between industry and academia was key in establishing the skills gaps that existed within the workforce.

Mr Curmi explained that the private sector was identifying difficulties in finding the appropriate skills required in today’s modern and ever-changing economy. He explained that in many instances certain expertise could not be found in Malta and companies were required to import this knowledge from abroad, especially from non-EU countries, which further complicated matters due to visa requirements and residence and work permits.

Other issues raised during the meeting included the importance of internship schemes to give students valuable job exposure, using the next EU programming period to allocate further funds towards training and employment. Schemes such as the Training Aid Framework and Employment Aid Programme were beneficial in spite of the administrative problems encountered by companies to receive reimbursement.

The Minister assured those present that lessons had been learnt and that the Ministry for European Affairs was currently finalising its Operational Programmes with regards to the net EU funding allocation.

Other issues discussed during the meeting included increasing female participation in the labour market, the early school leaving strategy, parental sick leave and pensions. It was also agreed that Ministry and Chamber officials would meet periodically to discuss updates and developments in these areas.

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CC The debate

To sell or not to sell?

The citizenship debate rages on “The Malta Chamber strongly urges the country’s political forces to seek more common ground before proceeding any further with the Citizenship Programme as this would clearly be in the best interest of the country,” – Malta Chamber President David G. Curmi As Government and Opposition continue to bump heads on the contentious Individual Investor Programme, Martina Said finds out where, if at all, this long-drawn debate is heading.

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he selling of Maltese citizenship approved by Parliament earlier in November has dominated national news headlines for weeks. The matter has proven to be nothing short of a controversy, also making headlines in newspapers and online portals the world over. As the issue continues to be debated within and outside of Parliament, numerous national bodies have voiced their opinions and concerns on the contentious Individual Investor Programme (IIP).

Malta Chamber President David G. Curmi believes the programme leaves “serious doubts and unanswered questions,” adding in comments to The Commercial Courier that “so much so, amendments to the Programme were made shortly after the parliamentary vote,” with reference to the removal of the secrecy clause. Mr Curmi expresses that the Malta Chamber’s main concern

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centres on the country’s reputation. “So far, successive administrations have, rightly so, gone through great lengths to protect the country’s reputation because its importance for future economic development was always recognised – especially in sensitive sectors such as financial services.”

Asked to elaborate on the sort of doubts implied in the statement, Mr Curmi says “the Malta Chamber is referring to the economic contribution to the country beyond the €650,000 consideration linked to the granting of the passport. Another fact to be taken into consideration is the lack of transparency related to the due diligence process. The Malta Chamber is however pleased to see that the controversial secrecy clause has now been removed.”

Earlier in November, Government approved the selling of Maltese citizenship which forms part of an Individual Investor 79

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“The Malta Chamber believes that Malta’s reputation can be tarnished by the unprecedented extreme positions taken by both sides in Parliament over a matter of such economic sensitivity.”

– Malta Chamber President David G. Curmi

Programme (IIP) in new amendments to the Citizenship Act, with the intention of attracting ‘high value’ people to the island by selling passports for €650,000. The programme is targeted at non-EU individuals, and applicants will need to pass due diligence tests conducted by Henley & Partners, the concessionaires who will promote the IIP. Naturalisation will then be approved by Home affairs Minister Manuel Mallia.

The Opposition had put forward a series of amendments before the bill’s approval, two of the main ones being that citizenship should be granted on condition of a minimum residence of five years and minimum investment of €5 million, and that the secrecy clause protecting the identity of applicants should be removed. Of the five amendments proposed, only one was approved by both sides of the house – to include in the law that the oath of allegiance should take place in Malta. A few days after approving the bill in Parliament, Government announced it will be removing the secrecy clause from the scheme, on the basis that it is listening to the people’s wishes.

The Commercial Courier contacted Home Affairs Minister Manuel Mallia for comments on this matter but was informed that the Ministry preferred not to comment at this stage, given that at the time the publication went to print, Government and 80

the Opposition were holding private talks to seek consensus on the delicate subject.

Both the Government and the Opposition have expressed willingness to meet behind closed doors in a bid to reach a compromise on the proposed scheme and both have been tight-lipped on the ongoing discussions. The private meetings between the Government and the Opposition are being mediated by Malta Financial Services Authority Chairman Joseph Bannister.

Ahead of the first round of talks in Parliament last month, Dr Mallia noted on national television that withdrawing the scheme could leave significant implications on the Budget. “If the scheme is scrapped, taxes will have to increase to recoup the €15 million that will be lost,” he said, meaning that if the scheme had to go to a referendum and voters rejected the programme, there will be a rise in taxes to seal the gap in the Budget.

Speaking to The Commercial Courier before private discussions between the two parties commenced, Opposition spokesman for Home Affairs Jason Azzopardi said “Government’s position was simply intransigent – my way or no way. We repeatedly proposed our amendments but each one was voted against, including the one on residency and the one on investment.”

Deputy Prime Minister Louis Grech announced, a few days after the bill was approved in Parliament, that the secrecy clause was going to be removed from the IIP, and in doing so, people awarded naturalisation through the Programme will be published in the government gazette.

Does Government’s decision to remove the secrecy clause somewhat improve the prospect of this Programme for the Opposition, being one of the amendments it suggested? “The Prime Minister did not concede anything,” says Dr Azzopardi.

“Government announced it will revert on the secrecy clause when Simon Busuttil said in and outside of Parliament that he will attend committee meetings as leader of the Opposition and with a sense of responsibility publish the list of names. It wasn’t out of conviction but a matter of convenience.”

The bill’s approval in Parliament, now law, has attracted significant press overseas, drawing criticism from locals on how Mata’s reputation is getting bruised as a result of this Programme. Dr Mallia said on television that he did not think Malta’s reputation was harmed by overseas coverage, but rather by the Opposition’s negative comments.

Dr Azzopardi begs to differ, however, saying that the last few weeks have been filled with “embarrassing reports of shame” from around the world, caused by the Government scheme. “I collected more than 200 reports from around the world. Just imagine, in a few days, reports from China to Chile, Europe to the Gulf, and Vietnam to America. It is mind-boggling,” he expresses.

“And in financial services, if there is one thing that anyone would tell you, it is the importance of perception and stability, of a good reputation. In spite of all this, the Opposition was humble enough to ask for consensus – the least Government can do is show a dose of goodwill.”

The same sentiment is shared by Mr Curmi, who believes the scheme can negatively affect Malta’s reputation because it has raised questions about our country’s credibility. “More importantly, the Malta Chamber believes that Malta’s reputation can be tarnished by the unprecedented extreme positions taken by both sides in Parliament over a matter of such economic sensitivity.” He adds “this risk has been compounded by the dangerous statements made during the debate which may lead to misinterpretation and taken out of context. Uncertainty, of course, is not conducive to investment attractiveness.”

That said, however, Mr Curmi believes we are still in time to fine-tune the programme and make it sustainable: “the Malta Chamber strongly urges the country’s political forces to seek more common ground before proceeding any further with the Citizenship Programme as this would clearly be in the best interest of the country.” cc DECEMBER 2013 / JANUARY 2014

CC meet the artist

“I love Pablo Picasso, and what I respect about him is the fact that he isn’t afraid to change.”

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CC meet the artist

Photos by Lionel Galea

Hello Noko Fresh from her recent exhibition ‘Two Heads and A City’ and ŻiguŻajg Arts Festival, designer and illustrator Nadine Noko has crafted a contemporary style all of her own. Sarah Micallef talks to the prolific designer about inspiration, creative process and what’s next on the agenda.

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alking into Nadine Noko’s apartment and studio, which she shares with her partner, the clean lines and minimalist aesthetic that run through her work echo throughout the space – and not merely as a result of the healthy amount of her work there is on display. As we settle down for our chat, we’re joined by the adorable Bonnie, Nadine’s canine companion and partner in crime for 13 years, who often features in her work.

Speaking of the camera-loving dog, Nadine maintains, “she’s my sidekick. She’s quite a character, and probably thinks she’s a superhero. She follows me all over the studio and tries to interfere in everything I do. She has perfect black and white spots so one can say she’s perfectly designed, and definitely a huge inspiration.”

A graphic and web designer and illustrator by profession, Nadine Noko surprisingly does not have an educational background in design, having attended a total of one art

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lesson in her life. Looking back, she explains, “I always used to draw and sketch, and would buy a lot of comics and architecture magazines. My background in design came from looking at these books, comics and cartoons. I was obsessed by Hello Spank and Puffi, and their simple lines.”

Having studied maths and computing at school, she describes how computing led her into web and eventually graphic design. Despite mainly using InDesign on her computer, Nadine enjoys utilising different media for different projects, and embraces the challenges they bring. For recent multi-media artistic project ‘Milkshake’, for example, she painted directly on wood, whereas for her most recent exhibition, ‘Two Heads and A City’ supported by the Malta Arts Fund and V18 Valletta European Capital of Culture 2018, she started off by sketching ideas on her notebook and taking photos of details, going on to bring the elements together on her tablet.

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CC meet the artist

“She [my dog] has perfect black and white spots so one can say she’s perfectly designed, and definitely a huge inspiration.”

Wall mural ‘The City is Pretty and so are You’

Contemporary designers she admires include David Downtown, Jean Jullien and Parra. “Locally, there are artists like Marisa Attard, who I really respect. I think her work is funny and different. I also love Pablo Picasso, and what I respect about him is the fact that he isn’t afraid to change. Sometimes artists tend to stick to one style that sells. I think it takes a lot of guts to try new things.” She also admires Woody Allen and Richard Pryor.

When it comes to her creative process, Nadine often spends more time on the idea than the execution. She explains, “I don’t ever stop thinking. It can be annoying, especially for my partner – my head just

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keeps going. I always carry a sketchbook with me, and just jot down ideas. Even when I’m working for a client and I get stuck, I just leave the studio and go for a walk. For a design I did for the Creative Economy for example, I was in a waiting room and got inspired by the pattern of the tiles. I jotted down the ideas and that’s it,” she claims, snapping her fingers, “it’s there.”

Speaking of the process behind putting together her latest exhibition ‘Two Heads and A City’, Nadine explains, “If I’m working on a project I don’t work on anything else. I spent three years sketching ideas, but spent the last four months working on the project exclusively.” She goes on to mention how she

wanted the exhibition to read like a story – an idea that was also reflected in the invitations, which were in the form of a flip book. She says, “even the colours were planned as a whole design. Rather than just picking this and that, there are certain colours which are repetitive, so they go together in one room.

Knowing about such design elements helps me a lot – the design influence is there.”

Pieces in the exhibition portrayed life in Valletta, and the colourful characters one meets on the streets of the capital city. Despite it being a relatively recent development, Nadine states that her current preferred subject matter is people. “I find people very funny. They interest me. Even though my last exhibition was about Valletta, it was really and truly about the residents, and the culture of the people.”

Flicking through one of her sketchbooks, she gestures to a page, recalling how inspiration can come from anywhere.

“I was having a burger and chips down near Marsamxett, and I saw this old man, whose hair curled out of the top of his shirt at the back. That detail interested me. Another character was a woman swimming while holding on to a noodle, which I thought was hilarious.”

For another piece depicting the Manoel Theatre, she recalls how a friend’s outfit changed her mind on a colour choice. “A friend that was helping me on the project came to help me post the invites. She has red hair and was wearing red trousers, and I thought the colour was so nice that I went back and changed the colour of the piece.”

DECEMBER 2013 / JANUARY 2014

CC meet the artist ‘Kultant Naħlef li Narak Għaddej’

“I find people very funny. They interest me. Even though my last exhibition was about Valletta, it was really and truly about the residents, and the culture of the people.”

Asked about whether her style has changed over the years, Nadine asserts that there has always been an element of minimalism and block colours, though her recent work features more people than her previous projects, which were based mostly on design-related elements and what clients wanted. “When you start out, the first thing you do is pick different illustrators, and you kind of copy them. At some point you find your own style. I think that I am growing up now, so to speak. Despite having different themes in my last exhibitions, I think you can still see that it is my work, and that is how you can see that it has evolved.”

Coming off an intense two-week stint of working on ŻiguŻajg – the arts festival aimed at children – what’s next on the agenda for Nadine is a short break, followed by the launch of her new site in January. “It will feature 10 different series that I’ve never

shown to anyone, which I’ve been working on for the past three years.”

Having had four exhibitions this year – two collaborative and two solo, the prolific Nadine Noko maintains that next year she would like to focus on less client work and more personal projects, ideally in collaboration with other creatives. “I really like working

with people. I learn a lot from collaborations.

I’ve worked with Elisa Von Brockdorff, Alexandra Aquilina, Kris Micallef and Brian Grech in the past, among others. The beauty of this job is that you never know enough.

People inspire me.” cc twoheadsandacity.com | madebynoko.com ‘Before your Coffee’

‘Swimming in the City’ ‘The Box’ DECEMBER 2013 / JANUARY 2014

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STYLE

Best Dressed

Work and play meet this season, when it’s all about making choices that take you effortlessly from the office to the plethora of after-work activities out there to be enjoyed!

01. Perfectly Tailored

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05. Hitting a Home Run Straight off the Calvin Klein catwalk, the varsity-style bomber jacket has been given a distinctly European twist with plush fabrics and a slim cut – making it ideal as workwear too.

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06. Lady In Red The perfect addition to your winter work wardrobe, this pencil skirt will add a splash of colour in this festive hue. Keep the rest of your outfit simple, with a dark blouse and jacket, and a pair of super sharp heels.

This chic blazer, by top designer Reiss, has an eye-catching houndstooth print that really makes it stand out. Pair with a sharp shirt and navy trousers for a look that will effortlessly take you from the office to after-work drinks.

07. Festive Cheer And the final addition to every festive wardrobe? The Christmas jumper of course! Yes they’re a little bit tacky, but they will spread celebratory cheers through your office. The perfect choice for the last-day-of-work office party! cc

02. Tied In Knots Come over all festive in traditional colours – a sharp red tie like this one will bring out your inner Rudolph! Make it your statement piece with an otherwisesimple dark suit or v-neck jumper.

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03. Best Foot Forward Nothing says style like a really good pair of brogues – like these from Ted Baker. Add a touch of colour with alternative laces, or stick with classic brown for a more timeless touch.

04. Grey on Grey

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One of the key looks of the season for menswear? Grey on grey. On the catwalks multiple designers went for grey from head-to-toe, including Viktor & Rolf and Bottega Veneta. So, whether in the workplace or at the weekend, this is one of next year’s easiest trends to master.

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04.

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STYLE

REVIEW 04.

06.

Finishing Touches

04. Get Gloved

01. Mirror Mirror

05. Splish Splash

Add depth to every room in your office by adding mirrors. We particularly love this ‘bathroom’ mirror – which we think would also translate rather well to a corner in a stylish office. Perfectly for quickly checking your attire before you rush out the door to seal that deal!

Taking your tablet on a winter break so you can sit by the pool in the sun? Or do you simply like to soak in a hot bath after a long day at the office while reading the latest news on your Flipboard app? Either way, you can now do so with confidence with a waterproof cover for your tablet.

There’s a whole variety out there to choose from – some of which are designed to meet or exceed IP military standards that allow it to withstand inclement weather or to be submerged in water up to 6.6-feet deep for up to 30 minutes!

From stylish accessories that will complete your outfit this festive season to our pick of the latest gadgets for your office – this is our selection of your complete must-haves.

02. All Organised Ideal as a gift for you or one of your colleagues, this case has got it all under control – a space for your tablet, of course, as well as set sections for your phone, car key, note pad, pen and stylus. Sorted!

06. On The Move

03. Kick Back

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Whether you’re taking a break at the office or just relaxing after work, this Eames Lounge Chair is our pick of the ‘chair of the year’. A classic design, and an icon of modern living, this luxury seat has been in production since 1956, and it boasts a sort of old-world-attitude as well as deep comfort and warm tones. Hand crafted from the finest materials, the leather and wood sit upon a five-star, die-cast aluminium base.

Gym to the office. Office to your child’s Christmas concert. Christmas concert to dinner with the family. You’re always on the move – and to manage that you’ll need a great big bag to hold all of your things. We love this one by Hogan – ideal for carrying around extra pairs of shoes, a change of top and your favourite book (just in case you find five minutes to spare over coffee!)

07. Charged Up A ‘universal charger’ may not sound that chic, but this one is! IDAPT’s i4 Universal Charger works with over 4,500 of today’s portable electronic gadgets including gaming, GPS, digital cameras and cellular devices. It’s ideal for travellers and is versatile for families or offices that want to save space too. cc

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The ultimate accessory for a chic and sharp outfit? Leather gloves – just like these ones from designer Marni. Toasty on the inside and sleek on the outside, they will keep you warm while remaining far more stylish than their woolly counterparts.

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DECEMBER 2013 / JANUARY 2014

CC Environment

Cleaning Up Our Act Things may not be as bad as they were a couple of decades ago – but have we successfully managed to shed our reputation as a ‘dirty’ country?

Most of these experts think not and, as they tell Jo Caruana, there is still a long way to go.

DECEMBER 2013 / JANUARY 2014

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orn rubbish bags wafting through the air. Spots of rubbish on our beaches.

Flotsam and jetsam floating in the sea beyond our promenades. Yes, Malta’s probably far cleaner than it was in the 80s and 90s, but are we still struggling to live up to our European neighbours when it comes to pulling our eco socks up?

Astrid Vella, the well-known coordinator of Flimkien għal Ambjent Aħjar has strong opinions on the matter – even though she believes Malta has improved immensely in cleanliness over the last decade.

“Yes, environmental awareness has improved tremendously, even within the last five years, however the environmental situation has not kept pace with this.

Rampant over-development generating more traffic in already congested areas has aggravated air quality problems, contributing

to high rates of asthma as well as cancer, cardiac problems and Alzheimer’s. And MEPA’s failure to take action on 7,000 cases of abuse has encouraged more abuse to ruin the island.

“Malta is still dirty and untidy by comparison to other countries – and I am not just comparing us to northern European countries, as even nearby Sicily is cleaner than our island. I attribute this to our colonial past, when we weren’t taught to appreciate our own country, our landscapes and architecture, but encouraged to admire foreign cultures, not our own.”

Agreeing with the sentiment that some things have improved, Arnold Cassola, a University professor and the chairperson of Alternattiva Demokratika, believes awareness has improved – but that things cannot stop there.

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CC Environment Photo by Clifton Fenech – DOI

“We also need a stronger sense of civic pride, and achievable targets that will not end up as pie in the sky situations or mere wish lists.”

– Minister Leo Brincat

“The proliferation of building sites all over the country makes it look really shabby in certain areas,” he says. “Add to this the general deterioration of air quality with its corresponding health impacts, as well as issues of environmental nuisance and noise pollution all over the island, and we have quite a long way to go.”

Many would argue that education has a major role to play in our improvement.

Although some environmental education is now ongoing, there is still more to be done if we expect to match standards seen in some other European countries.

“Environmental education and standards are opportunities for the strong development of a society and a nation,” says David Xuereb, CEO of QP Management, a design and project management consultancy company operating in a number of countries in Europe and Africa. “The faster we recognise this, the faster we can address the shortfalls our country suffers from when compared to other peer countries, including those in the European Union.”

Meanwhile, Leo Brincat, Minister for Sustainable Development, the Environment and Climate Change, also agrees we have quite a long way to go. “There is a general feeling that there is much room for improvement,” he says. “Had this not been the case, the Government itself would have not bothered to show such concern over the 94

“MEPA’s failure to take action on 7,000 cases of abuse has encouraged more abuse to ruin the island.” – Astrid Vella past few months, as well as in the Budget 2014 itself.”

The Minister suggests that the future of sustainability and environmental improvement in Malta is less about plans and more about concrete action on the ground.

“Tighter enforcement is needed, as well as entities that lead by example,” he stresses.

“We also need a stronger sense of civic pride, and achievable targets that will not end up as pie in the sky situations or mere wish lists.

At this stage, people are interested in one thing – deliverables rather than rhetoric. If we really believe in sustainable development we should aim for a fine balance between the environment and our socio-economic

agenda. The worst mistake would be to have any of these components act in isolation from the others.”

Asked about the sort of countries or cities we should consider to be our mentors as we move forward with an environmental agenda, Mr Brincat states that all those that have surpassed our efforts should be emulated.

“This summer I was impressed by how, in spite of its mammoth international festivals and fringe events, Edinburgh can be cleaned overnight, within hours. Plus, we should be taking a hard look at those cities that are as heavily dependent on tourism, just like we are. In my opinion it is a matter of concern that two of the shabbiest towns right now are those with the highest concentration of tourists – St Julian’s and St Paul’s Bay.” However, despite that, the results of ongoing visitor surveys conducted by the Malta Tourism Authority indicate that cleanliness – or the lack thereof – is no longer a dominant concern for visiting tourists.

“Although certain areas, especially entertainment hubs, are still pointed out by many respondents as being in need of a good seeing-to, particularly in the busier periods, the trend in recent years has been that complaints in this regard have decreased quite substantially – which is always a good indicator of how we are being perceived, as a country, by and large,” says MTA Chairman Gavin Gulia.

DECEMBER 2013 / JANUARY 2014

CC Environment

“Environmental education and standards are opportunities for the strong development of a society and a nation.”

– David Xuereb “This change in perception has not come overnight, of course, but is the result of many factors and plenty of investment which, over the years, have contributed towards a greater consciousness among us all with respect to public cleanliness and conservation, as well as better overall enforcement and increased resources towards product embellishment and maintenance.”

The MTA’s ECO Certification programme, too, has picked up substantially in recent years.

“Never more than now have we had hotels and accommodation establishments, among others, that are officially Eco Certified,” continues Dr Gulia.

“One of the Authority’s more significant roles in this sector, meanwhile, has been the Beach Management initiative that began six years ago. This holistic programme has resulted in our islands now having eight Blue Flag beaches and one Beach of Quality, as well as the cleanest swimming waters in the Mediterranean, as per consistent EU statistics.

“Substantial investment has also been made in our underwater environment, continuously applying more and more stringent eco-related criteria for each initiative begun. Plus, the Qawra Aquarium

DECEMBER 2013 / JANUARY 2014

“Never more than now have we had hotels and accommodation establishments, among others, that are officially Eco Certified.”

– Dr Gavin Gulia attraction – a major marine project co-ordinated by the MTA – is a more recent example of how tourism product development can happily co-exist with the natural environment, but can serve to better preserve and sustain it too.”

Of course it is key to consider the way the state of our environment will impact future tourists. After all, as people continue to travel with nature and history in mind, shouldn’t we be doing more to adamantly safeguard what’s left of our natural environment?

“Our tourism product has invested heavily in environmental measures to ensure that our touristic buildings and facilities are of the highest standard. However, this is not necessarily matched by what is going on outside the gates of the various tourist hotels, resorts and facilities,” Mr Xuereb goes on to say. “Our five star hotels are generally surrounded by three-to-four star surroundings. The quality of roads and cleanliness in our public environment needs to be improved. I would certainly like to see the environment being addressed on the basis of sustainability, whether social, economic, environmental or political. I would like to see an appreciation from all walks of life that the environment is the basis for our national future success. As a result, resource

“We should have umbrellafree beaches where you can actually see the beach!”

– Prof. Arnold Cassola

and waste management should be at the very top of our prioritised agenda.”

Prof. Cassola also believes that we should improve our tourism product by lessening our impact on the environment.

“Firstly, we need to stop the building and offer incentives for the rehabilitation of the 72,000 empty houses we have available.

We also need to enhance and create open spaces, and learn to value aesthetics and not just immediate material and monetary gain.

“If we want to attract quality tourists, we need to stop destroying the natural and historical landscape of Malta and Gozo.

Instead we should insist on eco-tourism, cultural tourism, country walks, diving holidays and visitors who will be appreciative of our islands’ typical nature and countryside.

Finally, we must free the countryside and coast from squatters and reverse the privatisation of beaches. We should have umbrella-free beaches where you can actually see the beach! Yes we have made some headway, but there is still so much more to be done from here on in,” Prof. Cassola concludes. cc

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CC global productivity

Give a little, gain a lot Flexible working is shown to be a prerequisite for productivity by the latest Regus survey.

The Commercial Courier interprets the results.

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hree quarters of global respondents believe flexible working is a critical measure to achieving higher productivity (75 per cent), according to the latest Regus survey. This result confirms that in any economic climate, but particularly in times of high market volatility, businesses continue to review their strategies in order to achieve greater efficiency and productivity.

Experts tend to agree on a group of common initiatives to enhance productivity: flexible working; cloud computing; knowledge management; better communication; training; and health

measures such as giving employees the opportunity to cycle or walk to work1.

This latest survey carried out in November 2013, canvassed the opinion of more than 20,000 senior executives and business owners across 95 countries, and delved deeper into the subject of flexible working, finding out that business people believe it not only helps improve employee productivity by reducing unused office space and slashing commutes, but also by helping workers become more efficient. For example, respondents report that flexible work encourages a greater sense of responsibility and fosters better decision-making and creativity.

Other outcomes include: • 77 per cent of overall respondents think flexible working encourages a greater sense of responsibility and time management • Flexible working also improves the quality (65 per cent) and speed (64 per cent) of decision-making

• Flexible working fosters creativity (74 per cent) • Profitable business connections are also favoured by flexible working (70 per cent) When asked to comment on the research, a commentator at Regus said: “analysts highlight a number of practices that are proven to impact productivity more than others. Flexible working, with its added benefits of improved creativity and enabling networking opportunities, takes pride of place with global businesses staunchly supporting its critical role.

“Businesses know that flexible working enhances productivity,” he continued, “but how this comes about is clearly a mixture of many factors ranging from better time management and responsibility to reduction of stress. Given that flexible working also significantly reduces unused office space it is a win-win solution for businesses hoping to make a cost saving and improve worker productivity and happiness.” cc

1 The Guardian, How cloud-based products improve business productivity, 2013; Time, How Data Analysis Boosts Productivity, 9th September 2013; Forbes, 7 Management Practices That Can Improve Employee Productivity, 17th May 2013; The vital 6 percent, NESTA, 2009; Training Mag, Training for Productivity, 15th August 2012

DECEMBER 2013 / JANUARY 2014

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CC make the headlines

New proposed policy framework for comprehensive evaluation of tall buildings The Malta Environment and Planning Authority (MEPA) has issued for public consultation a new policy framework for a comprehensive evaluation on the use and design of tall buildings in appropriate locations in Malta.

The proposed policy framework also calls for the submission of detailed studies to accompany any development application for a tall building including an urban design study/character appraisal, a visual impact assessment, transport assessment, social impact assessment and design statement.

The proposed policy defines a building to be ‘tall’ when it is more than twice as high as the maximum building height limitation for the locality established by the Local Plan or more than 10 floors (40m), whichever is the lower, when measured from the lowest street level. Buildings which are higher than the statutory building height limitations but are equal to or less than twice the statutory building height or 10 floors (40m) are considered medium-rise.

For a project to be considered, the site must be within the strategic locations identified, occupy a completely detached

urban block surrounded by existing streets and comply with criteria on landuse, infrastructure, transport, context, public realm, legibility and architectural design, micro climate, sustainability and safety, and with the provisions of the Guidelines on the Methodology for use of the Floor Area Ratio (FAR).

The designated locations for tall buildings are the area surrounding and including the Marsa Park and Gzira employment node, and the Qawra peninsula, Paceville and Tigné peninsula. Sites located in Gozo, Urban Conservation Areas, protected areas, ridges, outside Development Zones and residential priority areas will not be eligible.

For medium-rise buildings, the Floor Area Ratio policy can be applied to development applications outside the strategic area should planning objectives such as urban regeneration or provision of open space be achieved and the site area covers a minimum of 5,000sqm. cc

The draft policy can be viewed on www. mepa.org.mt/public-consultation.

Individuals and organisations are invited to send their submissions pertaining to this draft policy to: MEPA Director of Planning Floor Area Ratio (FAR) Policy PO Box 200 Marsa MRS 1000 or via email on: far.policy@mepa.org.mt Submissions should reach the Authority by 10th January 2014

HSBC Malta launches new website and Personal Internet Banking service HSBC Malta has joined up with several other HSBC group entities by upgrading its public website and introducing an improved Personal Internet Banking service. The website – hsbc.com.mt offers a fresh online look and feel, new features and the very latest in online banking security.

New features include a convenient product comparison page and tools section to help customers choose best suited products, a ‘3-click navigation system’ for faster site navigation, and simpler online applications for HSBC products and services which now allows customers to apply for more than 15 HSBC products.

HSBC Malta has upgraded its online banking proposition with a new website, enhanced Personal Internet Banking services, and more security for online shopping.

Enhanced Personal Internet Banking service

frequently asked questions regarding the new Secure Key is available on hsbc.com.mt.

An enhanced HSBC Personal Internet Banking (PIB) service, complete with a new Secure Key, is also being introduced to offer the latest group standards in customer experience and security. A video showing the full migration process as well as a list of

Enhanced security for online shopping

DECEMBER 2013 / JANUARY 2014

HSBC Malta has also implemented a new online credit and debit card authentication system, offering added security for

customers who use MasterCard and Visa credit cards, as well as Visa Electron debit cards on enabled websites. Registration is a quick online process with simple step-by-step instructions. cc More information is available on the bank’s website at hsbc.com.mt/secureonline

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CC make the headlines

PTL – a new look and a new philosophy

By Kenneth Spiteri Technology evolves constantly. Technology companies too are never static – we operate in a sector which is always working to up the game so users can do more, better. That is the nature of a knowledge industry.

PTL Ltd has just rebranded after many years of delivering high quality services as Philip Toledo Ltd. We have been reaching out to customers since 1981, offering ICT and security solutions to banking, retail, distribution and hospitality clients amongst many others. We partner brands like IBM, NCR, Cisco, RetailPro, Prospero, Red Hat, Chubb safes and Lenovo with pride and enthusiasm.

So we like to think of this new chapter in our organisation’s story as the latest version of an operating system – we have a new name, we are packaged differently, we function more efficiently. We are more effective than we have ever been.

PTL now has clearly articulated values: simple, innovative, different, trust.

Our clients are ambitious organisations which are constantly seeking growth. We provide them with first class tools to support them to reach their goals. We deliver with a

promise to streamline their interaction with technology and simplify transactions with their clients.

Our team of problem-solvers applies imagination and creativity to design clever solutions so we and our clients are more effective. The knowledge and experience within our fold is our competitive advantage. Our customers rely on us to ensure their systems perform efficiently at all times. Shouldering this responsibility is our core business.

This rebranding goes far beyond cosmetics. It has been designed to truly represent who we are, what we do, the passion we have for exceeding client expectations, and the future we are shaping for PTL. It is bright, innovative and adventurous.

It is with this spirit that we have just moved to Nineteen Twenty Three on Marsa’s Valletta Road from our previous premises in Mriehel. Within the head office of Hili Ventures, the ambitious group PTL joined last year, our 80plus Malta team occupies a sprawling open plan workspace which reflects the

Kenneth Spiteri is Chief Executive Officer of PTL Ltd

company’s flat corporate structure.

PTL’s professionals now enjoy a brighter work environment, designed to enhance communication and team dynamics, and encourage more efficient work practices.

From here we seek to grow our client base beyond Malta, the Middle East and North Africa which we already serve. To our mind, the possibilities are endless. cc

CC make the headlines

His heart stopped!

Will you save him?

Sudden cardiac arrest (SCA) is the most common cause of death from heart disease, accounting for more than 63 per cent of all cardiac deaths. In SCA, the heart suddenly stops beating normally. Without a blood supply, oxygen-starved organs are irreversibly damaged and will quickly fail within a few minutes.

The only effective treatment for SCA is defibrillation. External defibrillation provides a brief, effective therapeutic electric shock through the person’s chest to the heart, restoring the heart’s normal rhythm. While people with heart problems are at high risk of death from SCA, it can strike anyone, anywhere, at any time without warning and in some cases is the victim’s only symptom.

Even young people, people who appear to be healthy, extremely fit athletes and people with no history of heart problems can be victims of this silent killer.

The definitive survival treatment for a SCA victim is a defibrillation shock. Cardio Pulmonary Resuscitation (CPR) or ‘chest compressions’ and ‘mouth-to-mouth’ breaths only temporarily circulate blood to vital organs and on their own do not restore a patient’s heart into a healthy rhythm – a shock is needed, and fast!

The average national response time for the arrival of emergency personnel equipped with defibrillators is usually greater than 10 to 15 minutes – this is just too late. This is why immediate access to defibrillators on-site is extremely important. Each minute of delay in delivering a defibrillation shock to a cardiac arrest victim reduces the chances of survival by 10 per cent, meaning that, if a casualty is not shocked within five minutes of collapse, he/she will have less than 50 per cent chance of survival.

When an SCA strikes, the first few minutes are critical to survival. In the confusion surrounding the event, it can be challenging for the average rescuer, with only minimal training in CPR and AED use, to remember and follow the correct procedures. It is during these critical minutes that the Powerheart AED G3 Plus becomes priceless. cc

For further details contact Technoline Ltd. Tel: 2134 4345.

Looks aren’t everything, but they help The new Alfa MiTo model year 2014 is now in Malta and is already reconfirming its allure among drivers who want a fresh and sporty model that comes complete with a wide array of technology.

Inspired by the lines of the Alfa 8C, the Alfa MiTo is still the same head-turning super mini it always was, however the standard specification has been fine-tuned to maintain that something extra that you can only get with an Alfa Romeo – value for money with a premium feel.

The updated MiTo features a new chrome grille, new Anthracite grey exterior colour and a dark finish on the headlight mask which was previously only on the Quadrifoglio Verde. On the inside, Alfa Romeo has created a new range of seat fabrics and styles, and introduced new Evoluzione colour gradient dash, new door panel finish, black finishing on the centre console and a Uconnect infotainment system with a five-inch touchscreen.

Drivers are spoilt with four levels of the MiTo 2014 to choose from: Progression,

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Progression+, Distinctive, and the rangetopping Quadrifoglio Verde.

The MiTo 2014 comes in three petrol engines in 78bhp, 135bhp and 170bhp yet all capable of averaging close to 50mpg on a combined cycle. There then is the very frugal 1.3JTDm2 that can offer a ridiculously low consumption figure of 78.5mpg while still packing a punch of 200Nm of torque and yet remain classified in the lowest possible annual license bracket in Malta of €100.

Technology is by now a central theme with Alfa Romeo, whose drivers want technology with them wherever they are. The newly introduced built-in Uconnect™ system combines a top-quality sound system with a host of multimedia services and functions thanks to a 5” colour touchscreen and voice recognition using Bluetooth. The optional Uconnect™ NAV offers built-in navigation developed in collaboration with TomTom® for simple, intuitive navigation. cc

DECEMBER 2013 / JANUARY 2014

CC make the headlines

How to improve motivation in the workplace

By John F. Xuereb

A passion of mine has been to provide motivation to those who need that extra push or perspective to ensure maximum performance. Today I want to focus on you – your company to be exact!

No matter how big or small, a company is only as great as the staff’s ability to operate.

While hiring gifted people is a priority, it is not just skill or talent that drives a company forward. Apart from skills, staff also needs to be motivated. Motivation can provide many benefits – creating a positive atmosphere in the workplace and improving profit and productivity are among them. There are a lot of factors that motivate people, but here are a few ideas to help you get started in improving motivation in the workplace.

Motivation through employee approval It is always essential to create a work environment that is conducive to employee approval. This means that it should be a company goal to promote an environment that not only attracts skilled workers, but also workers that are able to retain their

Work to create a positive workplace environment motivation and commitment to provide a high level of excellence in their work.

Motivate by building a solid foundation Aim to make your employees more devoted. Share the company’s vision as this will help them make more sense of what they are there for. It is also important to hear their opinions on what they expect and what kinds of goals they want to achieve. This can help managers and owners know their employees better and assess what they have to say about their work and the company.

It is very important to treat your employees equally. This means that bosses and managers should also be approachable to the staff (and not just their immediate assistants), and that concerns and questions dealt with directly. Always remember that when it comes to your company’s success, motivation in the workplace can maximise productivity while building a strong foundation for all employees. cc For more information on corporate engagements contact John F. Xuereb on Facebook: https://www.facebook.com/john. xuereb.330

CC make the headlines

Absolut Originality Sets a New Standard for Limited Editions Following its long-standing tradition of introducing cutting edge designs, Absolut is proud to present Absolut Originality. This elegant limited collection features four million individually designed bottles, each made into a oneof-a-kind work of art with a drop of cobalt blue infused into the molten glass during production.

Absolut has always experimented with new techniques and gone off the beaten track to develop innovative and artistic products.

Following last year’s spectacular launch of Absolut Unique, the journey continued in order to find a daring new concept for the next limited edition. The ambition was to capture the soul of Absolut, expressing creativity and quality as its cornerstones – and the experiments paid off.

“Absolut Originality presents our iconic bottle in its most classy form to date,” says Mathias Westphal, Global Brand Director at Absolut. “We took inspiration from traditional Swedish glass craft, and made it available to the world. When we watched a drop of cobalt

sink into the hot glass the first time, we didn’t know what it would look like. But the very first bottle looked amazing, and what started as a playful experiment ended up as four million one-of-a-kind pieces of art.”

Releasing a drop of cobalt blue into the glass only takes a millisecond. It’s added just as the molten glass goes into the mould at 1100°C. At that temperature, the cobalt is invisible, but as the glass cools off, a beautiful

and unique blue infusion appears inside the glass of each bottle. “The streak of cobalt forms a sophisticated contrast to the crystal clear glass, and the blue colour makes each bottle unmistakably Absolut. This classy remake celebrates the original thinking that has always been the Absolut creed and pays tribute to the world’s most iconic vodka,” continues Mathias. cc

Christmas & Latitudes Christmas wears luxurious scents of discovery this year at Le Méridien St Julians Hotel & Spa. The creative management team has drawn bridges across oceans, showing its clientele directions to festive traditions and rituals all over the world. The hotel will be unfolding its menus, Christmas-related activities and decorations around one unique – yet inspiring – focal point: the many customs and traditions celebrated under different latitudes at this time of year.

Year after year, Le Méridien St Julians Hotel & Spa strives to present a new angle to its Christmas and New Year’s Eve options. Throughout the past Christmas seasons, the hotel has invited guests to a Christmas Factory, engulfed them in a fairy tale atmosphere and inspired them with a musical approach. Le Méridien’s inspiration

goes across borders this year with a merry season entitled ‘Christmas & Latitudes’.

“Our Christmas & Latitudes brochure has been conceived like a boarding pass,

opening doors to a multitude of new horizons”, explains Melissa DeGabriele, Senior Marketing Executive at Le Méridien St Julians Hotel & Spa. “It presents our menu options of course, all articulated around the selected theme, but it is also filled with fun facts, quotes and QR codes, allowing the reader a dynamic and interactive approach to their selection process.”

The hotel caters for Christmas functions and family reunions too, with recommendations for intimate dinners or large groups. With menus inspired from all over the world and an attentive events team, organising your party at Le Méridien is fun and easy. The hotel also extends additional advantages and discounts for early-bookings.

With this innovative ‘Christmas & Latitudes’ concept, Le Méridien St Julians Hotel & Spa provides you with a clear map of your requirements and the freedom of selecting unique landmarks for your end-of-year celebrations. cc

Online brochure: www.lemeridienmalta.com/christmasbrochure2013 Online bookings: www.lemeridienmalta.com/forms/christmas Enquiries: christmas.malta@lemeridien.com 106

DECEMBER 2013 / JANUARY 2014

CC culture

The English Concert performing Bach’s Mass in B Minor on 13th January 2014

Teatru Manoel - view from the President’s box

A baroque festival for a baroque island Rediscovering baroque

This year’s festival

In music, the baroque period is, by general consent, from 1600 to 1750, however this depends on the country. We are still on a wonderful voyage of discovery as hitherto, baroque music, to the dilettante music lover, meant Bach and more Bach, Vivaldi and Handel with possibly some Scarlatti thrown in. There is in fact much more than that.

Porpora, Caldara, Carissimi, Monteverdi, Zelenka, Biber, Couperin, Rameau and Lully are plethora of glittering stars.

As we move closer to Valletta 2018 when our beautiful and unique capital will be European Capital of Culture, the significance of the Valletta International Baroque Festival becomes more important, and plans are in formation to have more music by Maltese composers of the 17th and 18th centuries including Benigno Zerafa, Geronimo Abos and Francesco Azzopardi.

The 2014 festival promises to be even more varied than last year’s, featuring, along with the Centre de la Musique de Versailles, a production with life-sized marionettes of a parodie of Rameau’s Hypolite et Aricie; an opera which in its day sprang to immediate popularity. This revival by Versailles will be given its world premier in the Manoel Theatre over the initial weekend; Saturday 11th January in the evening, a Toi Toi event on Sunday 12th in the morning, followed by a matinee at 5.00pm and a special school performance on Monday 13th in the morning.

No less than four great religious works are to be performed at this festival.

The monumental Bach B Minor Mass by the English Concert under the baton of the celebrated Harry Bicket at St John’s Co-Cathedral on Monday 13th is definitely the most splendiferous of all, followed by Handel’s Messiah by the local Goldberg and Anon Ensembles directed

by Michael Laus on Friday 10th, a special Bach meets Pergolesi’s Stabat Mater

010 Manoel Harpsichord

with international star countertenor Max Emmanuel Cencic on 21st January and Monteverdi’s Vespers on 18th January.

Vespers will be performed by the newly formed festival ensemble, whose patron is the living legend of baroque performance Dame Emma Kirkby. The organisers are confident that the Valletta International Baroque Festival Ensemble will proudly carry the name of Malta and the festival in performances not necessarily within the festival alone but also in Malta and overseas.

The festival runs from 10th to 26th January 2014 in Valletta venues like the Painted Salon of the Museum of Archaeology, the former Auberge de France; the Hall of St Michael and St George at the Presidential Palace; the churches of St Nicholas, St Catherine’s, Ta’ Ġieżu, the Anglican Cathedral and St John’s Co Cathedral, but the alma mater is our own beloved Teatru Manoel built in 1731 and still going strong as the living heart of culture in Malta. cc

Tel: 2124 6389; email: bookings@teatrumanoel.com.mt Online booking: www.vallettabaroquefestival.com.mt; www.teatrumanoel.com.mt

DECEMBER 2013 / JANUARY 2014

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CC Economy check

The management of public debt: striking the right balance Leading economist Gordon Cordina highlights the importance of a longer-term approach to budgetary planning and debt management.

A

t Budget time, there is often a lot of discussion on the level of the fiscal deficit. This is a rather short-term attitude. What of the level and growth of debt, and its longer term implications?

In Malta, persistent fiscal deficits have been financed through the accumulation of debt. Government debt has steadily increased over the years, reaching 71.3 per cent of GDP by the end of 2012.

Up to now, economic growth has exceeded the interest on such debt, providing a margin of comfort with regards the

DECEMBER 2013 / JANUARY 2014

sustainability of fiscal finances. However, the slowdown in economic growth, which is expected to be maintained in 2013, led to a reversal of the situation. It is high time that economic discussion focuses squarely on the sustainability of public debt and the implications of its costs.

In this regard, it is opportune to assess what lessons can be learnt by Malta from countries that have experienced problems out of excessive debt.

One of the underlying reasons leading to the debt crisis across the euro area 111

CC Economy check

“Reducing the deficit and debt ratios to the targets required by the EU by 2020 requires a reduction in the annual deficit of €155 million.”

has been the judgement of lenders.

This is due to the fact that as the ability to service debt is questioned, lenders begin to ask for high interest rates, thus raising the cost of debt. This in turn has sparked the judgement of sovereign credit rating agencies to lower credit ratings and to fuel further higher interest rates.

This is markedly evident for countries such as Greece, Portugal and Cyprus as well as Ireland, which have experienced a rise in the interest rate spreads.

The possible causes of these higher interest rates are numerous and vary between countries. In Greece, Italy and Portugal, higher interest rates were sparked due to lower economic growth which led to the issue of whether these countries can repay debt.

In other countries such as Ireland, the cause of the crisis was a debacle in a large banking sector, making it extremely costly for Government to assist during the financial crisis. In Ireland and Spain, the main reason for higher interest rates on sovereign debt was due to the drop in real estate prices.

On a positive note, the extent to which Malta is exposed to the test of the international financial markets is limited.

This is due to the fact that in Malta over 90 per cent of Government debt is held locally. However, the provision of liquidity to Government is not entirely free from

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risk. It is worth noting that about 66 per cent of locally-held debt in Malta is owned by financial institutions. This amounts to about three times the combined equity of the largest financial corporations in Malta.

New banking regulations may limit the holdings of sovereign debt held by financial corporations. The risks in the provision of liquidity to Government also depend on the profitability of locally oriented banks, as well as on the growth of their equity. This in turn depends on economic growth, the level of savings and deposits as well as potential negative shocks to real estate. About 60 per cent of bank loans in Malta are collaterised by property. Consequently the sustainability of debt in Malta is strongly anchored by what the economy can carry.

The extent to which Malta can attain the fiscal targets set by the EU warrants an indepth analysis of fiscal finances. Expenditure on social protection is more than twice the expenditure on education and yet, material deprivation is increasing. Revenue generated through social security contributions covers only 30 per cent of the expenditure on health and social protection with expenditure on health care expected to increase further due to an ageing population. It is also worrying to note that despite a decline in interest rates in Malta, there has been an upward creep in interest costs which has been a major cause of the deficit.

Medium term scenarios on fiscal sustainability strongly depend on the rate of economic growth. Low growth scenarios, by the standards observed over the past five years, may lead the debt to GDP ratio to climb to over 100 per cent of GDP by 2020.

On a more optimistic note, if Malta manages a nominal growth rate of 7 per cent per annum, we can expect a halving of the ratio to around 35 per cent by 2020.

Maintaining the average growth rate of the past five years will not improve the sustainability of debt. In this scenario, reducing the deficit and debt ratios to the targets required by the EU by 2020 requires a reduction in the annual deficit of €155 million. This is equivalent to a cost of €450 per person over the age of 18 per year.

It is true that stronger economic growth can make up for this. In the absence of it, the Government may, in future years, have to contemplate other revenue raising or expenditure cutting measures, which may however themselves dent economic activity and social welfare. It is for these reasons that a longer term approach to budgetary planning and debt management is required, to ensure that the country remains on a sustainable path without requiring painful adjustments in future years. cc

DECEMBER 2013 / JANUARY 2014

CC chamber news

LA BORSA – The People, The Building, The History The Malta Chamber of Commerce, Enterprise and Industry has reached the final stages in preparations for the publication of its premium quality book: ‘La Borsa – The People, The Building, The History’.

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he final proofs are with the printers and the book will be delivered to the Malta Chamber on 17th December – just in time for Christmas.

This prestigious book about prominent exponents of commerce and industry, the magnificent Exchange building and its excellent collection of portraits and paintings includes essays by well-known historians and art historians as well as a leading architect.

This publication will be a testament to Malta’s strong commercial foundations.

Any member of the Malta Chamber

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will be proud to own this book or to present it as a Christmas gift to his or her business associates.

Members of the Malta Chamber have the opportunity to order copies at the prepublication price of €55. The post-publication price will be €80. It is also possible for those members who order a minimum of ten copies to personalise one of the front pages.

To order your copies, contact Johanna Calleja on email: johanna.calleja@maltachamber.org.mt DECEMBER 2013 / JANUARY 2014

THE COMMERCIAL COURIER /51

THE COMMERCIAL/51

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

DECEMBER 2013 / JANUARY 2014

Illustrated City Valletta through the eyes of Nadine Noko NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE THE PRIME MINISTER’S TAKE ON MALTA’S ECONOMY FOR 2014 / MALTA HAS THE LARGEST SHIPPING REGISTRY IN EUROPE / MINISTER KONRAD MIZZI ON IMPLEMENTING MALTA’S AMBITIOUS ENERGY PLANS / TO SELL OR NOT TO SELL? THE CITIZENSHIP DEBATE RAGES ON / NATIONAL GEOGRAPHIC TRAVELLER’S WELL-KNOWN PRODUCER ANDREA LEITCH SHARES HER THOUGHTS ABOUT MALTA AS A DESTINATION / THE LATEST BUSINESS NEWS