The Commercial Courier Feb/March Issue 2014 by Content House

THE COMMERCIAL/52

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

FEBRUARY / MARCH 2014

A rich history The revival of the capital continues

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE THE CENTRAL BANK GOVERNOR’S PREDICITONS ON MALTA’S ECONOMY / THE LOCAL PROPERTY MARKET: WILL THIS BE THE YEAR OF RECOVERY? / 300 PER CENT JUMP IN DEPOSITS IN ALL BANKS REGISTERED IN MALTA OVER A DECADE / THE BENEFITS OF MYSTERY SHOPPING / THE DEBATE: IS LAND RECLAMATION A FEASIBLE OPTION LOCALLY? / KRIS MICALLEF LAUNCHES HIS FIRST EXHIBITION AND PUBLICATION OF FINE ART PHOTOGRAPHY IN MALTA / THE LATEST BUSINESS NEWS

THE COMMERCIAL/52

COURIER FEBRUARY / MARCH 2014

food & wine

89.

82. 22.

39. TECHNOLOGY TECH REVIEW The Commercial Courier looks into some recent developments in the world of technology.

13. COVER STORY

43. ENVIRONMENT

THE LOCAL PROPERTY MARKET: WILL 2014 BE THE YEAR OF RECOVERY?

“MALTA AMONG WORLD’S TOP TEN WATER SCARCE COUNTRIES”

Following a period of volatility, the big question in relation to Malta’s property market is whether 2014 will be the year of recovery. Sarah Micallef talks to the experts to find out what they think the year will bring.

Martina Said gains an in-depth look at the Malta Business Bureau’s EU Life+ Investing in Water project, aimed at reducing waste of our freshwater among local enterprises.

26. 26. DESIGN TRENDS

21. IN FIGURES

FROM A RICH PAST TO A BRIGHT FUTURE

THE BANKING SECTOR IN MALTA… IN NUMBERS A look into the figures related to Malta’s banking sector.

Sarah Micallef speaks to architect Chris Briffa about the history and making of the recently opened The Harbour Club restaurant, jazz bar and enoteca in Valletta.

22. INTERVIEW

33. business

GOOD NEWS FOR MALTA’S ECONOMY IN 2014

TAKING THE MYSTERY OUT OF DOING BUSINESS

The Governor of the Central Bank of Malta Professor Josef Bonnici shares his views on principle trends relating to the economy with Sarah Micallef.

Jo Caruana finds out why mystery shopping can offer incredible insight into what your business is doing right, as well as what it could be doing better.

style review

73.

76. THE DEBATE LAND RECLAMATION PROJECT: “MEPA WILL GET INVOLVED ONCE AN APPLICATION IS SUBMITTED” Following Government’s recent call for expressions of interest, Martina Said looks into whether land reclamation is a feasible opportunity for our country.

82. MEET THE ARTIST CAPTURING AN UNDERWATER KINGDOM Sarah Micallef chats with photographer Kris Micallef about the recently launched REGNVM – his first exhibition and publication of fine art photography in Malta.

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

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

Sarah Micallef Diane Seychell

Progress Press Ltd

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

Publisher

Antoinette Micallef ant@box-design.net

Editor

Advertising

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

Kevin J. Borg Editorial Coordinators

Content House Ltd Mallia Building, 3, Level 2, Triq in-Negozju, Mriehel QRM3000

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

ON THE COVER Detail of the wrought iron gate outside The Habour Club. Photo by David Pisani.

Malta chamber’s silver collaborating partner

Malta chamber’s bronze collaborating partners FEBRUARY / MARCH 2014

Keeping it simple. We make complex uncomplicated.

IT & SECURITY EXPERTS Nineteen Twenty Three, Valletta Road, Marsa MRS 3000, Malta. T. (+356) 2144 5566 E. info@ptl.com.mt

www.ptl.com.mt

PTL is a member of Hili Ventures

CC Editorial

The importance of open dialogue with the countryâ&#x20AC;&#x2122;s leaders The Malta Chamber holds social dialogue in very high regard because it maintains that social partners must act in unison to ensure that the right fundamentals are in place to maximise growth and prosperity in the country. To this end, the Malta Chamber is constantly engaged in active discussions with Government and social partners at the highest national level.

n addition to such regular meetings and the organisation of conferences and public events with the participation of the authorities, members are regularly given the opportunity to voice their concerns through open dialogue sessions with the authorities. In February, the Prime

FEBRUARY / MARCH 2014

Minister accepted an invitation to hold a dialogue session with members. This dialogue session with the Prime Minister has now penned itself in the yearly Malta Chamber calendar of events and on the latest occasion, Dr Muscat expressed his eagerness to hold such events more often. 09

CC Editorial

At this latest event which lasted more than two hours, members raised a number of issues concerning plans for the enhancement of national and sectoral competitiveness, fiscal policy, waste management strategy, factory rents, oil and gas exploration, issuing of visas, innovation and the liberalisation of retail shop hours. Similar issues were discussed the following day with the Leader of the Opposition and a seven-strong delegation from the Partit Nazzjonalista during a Council meeting. On both occasions, the Malta Chamber highlighted its preoccupation with the current state of play at the Malta Council for Economic and Social Development (MCESD) which is the institution responsible for the conduct of social dialogue in the country. The Malta Chamber President remarked on both occasions that the Chamber was disappointed with the manner in which Government is consulting the MCESD and this was leading to an erosion of its relevance. The Malta Chamber also lamented the fact that certain priority issues have not featured on the Council’s agenda despite these being long identified by the Chamber. In the same vein, the Chamber expressed a strong opinion that the MCESD was losing its autonomy by the lack of resources it was being afforded. To this end, it was noted that the Council has been subjected to meet at the Ministry rather than on neutral territory. The MCESD lacked important resources that would allow it to employ experts to conduct research and formulate technical reports to complement the discussions. Besides, the President expressed the Malta Chamber’s firm opposition to a further widening of the MCESD’s composition. This, he said, would upset the current formula and render meetings even less manageable. Besides, in line with the current law, all bodies represented on MCESD need to be ‘national employers’ or ‘workers’ organisations’. The Malta Chamber was also recently active in attempting to broker political consensus on a number of sensitive matters to business. These included the Individual Investment Programme (IIP) and the healthcare reform. It is committed to playing a proactive part in forthcoming dialogues expected on subsequent reform programmes that await our country. These include the justice system, waste management, labour market rigidities, internal transport of both goods and people, COLA, pension and healthcare reform, water resources and bureaucracy. These high-level meetings held in February with the Prime Minister and the Leader of the Opposition bore witness to our political leaders’ high regard for our Chamber. As prime representative of business and industry on the island, the Malta Chamber is eager to reciprocate through its active contribution to national dialogue and the formulation of policies directed at rendering our country more competitive and prosperous. This firm commitment is underpinned by the Malta Chamber’s strong regard for the national interest at heart because it believes that when the country works better, business works better, and as a result the Maltese people are better off. cc

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LA CLEMENZA DI TITO

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TITO VITELLIA SESTO SERVILIA ANNIO PUBLIO

20 & 22 March Peter Davoren Andriana Yordanova David Hansen Gabriella Costa Clare Ghigo Albert Buttigieg

Malta Philharmonic Orchestra conducted by Damiano Binetti Teatru Manoel Opera Chorus Directed by Harry Fehr after ideas by Denise Mulholland Set & Costume Design by Kenneth Zammit Tabona

www.teatrumanoel.com.mt E: bookings@teatrumanoel.com.mt T: 2124 6389

21 & 23 March Ben Thapa Cristina Baggio Sian Cameron Claudia Tabone Annie Fredriksson Noel Galea

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The local property market: will 2014 be the year of recovery? Following a period of volatility, the question on everyone’s lips in relation to the local property market is what lies in store now. Will 2014 be the year of recovery? Sarah Micallef talks to the experts to find out what they think the year will bring.

Mario Galea – viewingmalta.com

“Based on the Central Bank’s property price index, the price of residential properties rose at an annual rate of 1.1 per cent in the period between April and July 2013, which followed a drop of 0.6 per cent in the previous quarter.”

he Maltese property market has experienced a volatile few years of late. From 2000 to 2007 it enjoyed strong growth, but property prices reached a plateau in 2008, followed by an actual decline. After a short-lived recovery in 2011, house prices fell again in 2012. Two years on, what is on the horizon for 2014? Ian Casolani, Chairman of the Real Estate Business Section of the Malta Chamber, believes that the property market has been regaining strength over the last two years,

FEBRUARY / MARCH 2014

while the Honorary President of the Malta Developers Association Architect Michael Falzon expands on this, maintaining, “the indications are that the property market has now stopped recessing and reached a plateau. Latest figures issued by the Central Bank indicate that the share of GDP attributable to construction is stable and that property prices are not going down any more. One can only hope that this is the start of a recovery.” Robert D’Amato, Property Branch

Manager at Frank Salt Real Estate Ltd, illustrates the factors that contributed to the slowdown in the local property market, stating “it started from the global financial crisis which triggered off people losing money from their investments; loss of jobs; and banks becoming more cautious when lending money for the purchase of property.” It was these elements, coupled with an oversupply of particular types of properties in certain locations which led to the slowdown, he asserts. 13

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“The property market in Malta has been showing signs of recovery, with last year registering an overall increase in property prices across all types of properties.” – Frank Salt Real Estate Ltd Property Branch Manager, Robert D’Amato

“Villas with a sizeable garden and pool or space for a pool are still very sought after and hard to come by, leading to price increases.” – Malta Chamber Real Estate Business Section Chairman, Ian Casolani Come 2014, Mr D’Amato maintains, “the property market in Malta has been showing signs of recovery, with last year registering an overall increase in property prices across all types of properties. Banks, governments, real estate agents and developers came up with various incentives throughout the past three years towards encouraging buyers and investors to buy property.” Nonetheless, according to Benjamin Grech, COO at Engel & Völkers Sara Grech Malta, there is still a way to go. “We are currently still in a buyer’s market with an abundance of low quality new homes and many unrestored historic buildings. Although a fair few new builds are priced fairly, there is still plenty of competition between the developments. I would say that people today have more buying power than they did in 2008, or perhaps they feel that now is a better time to invest as the global economy seems to be on the rise but the recovery of the market is yet to come.” Based on the Central Bank’s property price index, the price of residential properties rose at an annual rate of 1.1 per cent in the period between April and July 2013, which followed a drop of 0.6 per cent in the previous quarter. According to Mr Casolani, we can expect prices for certain properties to continue to rise in 2014, “whereas others that over the years did not listen to and cater for what the market was looking for, will probably not.” According to Mr D’Amato, “our records show that property prices are slowly but steadily increasing and are expected to 14

continue rising due to a sharp increase in demand by first time buyers following the government incentive to save on stamp duty; purchases by first time buyers creating a demand by second time buyers who sell their properties to first time buyers; and the various residency programmes and investment opportunities being offered to foreign nationals.” Mr Falzon, however, does not foresee that property prices will continue to rise. “This depends on whether there is going to be a substantial rise in building materials besides being a case of demand and supply,” he states. “Because of falling demand and harsher competition, many developers have resorted to building better quality properties and there is a limit on how much their prices can go down, even though profit margins today are much less than they used to be.” Mr Grech deems these fluctuations “very normal, as on the islands there is no official or regulated way of valuing real estate, therefore these minor increases and decreases in prices are essentially negligible.” He goes on to maintain that, “if we say property prices are those at which property is marketed to the public then I would expect prices to decrease, but if we take prices of property signed upon the final deed then I would expect the prices to remain within the +/- range of two per cent.” Within the same period, according to the same statistics, maisonette and apartment prices increased, while prices of terraced

houses, town houses, houses of character and villas, dropped. Asked whether he has noted any particular trends in relation to the types of residential property currently favoured by buyers, Mr Casolani emphasises that whereas apartments and maisonettes, particularly in central areas, have remained in demand and hence prices continued to rise, it is not generally the same for character houses and town houses, hence a possible price drop in these segments. He comments, “trends have changed, with many preferring modern, practical open-plan properties to the more demanding and less practical character properties. In the case of villas however, it is incorrect to assume that all villas have dropped in price. Those with not much garden are not all that sought after and generally difficult to sell, whereas villas with a sizeable garden and pool or space for a pool are still very sought after and hard to come by, leading to price increases.” Mr Falzon is in agreement, explaining that market conditions differ between lower end properties, medium properties and high end properties. With this in mind, he expounds, “the market in lower end properties that are sought by first time buyers is quite strong, FEBRUARY / MARCH 2014

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viewingmalta.com

while the worst case is in medium priced properties where supply outstrips demand.” Because of this, one cannot expect price rises in this segment, he says. In relation to the high end market, he continues, “the market seems to have stabilised, with Maltese investors buying these properties for the rental market, which is quite healthy, especially in particular areas that are more sought out than others.” Mr Grech extrapolates that “the favoured request today is a property of low maintenance which requires few alterations, which puts apartments at the top of the list. Town houses, houses of character and villas are costly to run and lead owners to a very different lifestyle. Because of this, the prices of these residential properties have to 16

compete with those of luxury apartments.” Consequently, Mr D’Amato believes that apartments are the most popular as they attract all types of buyers and are more affordable. Apartments for the buy-to-let market are also very popular, he maintains, with local and foreign investors who are always on the lookout for good opportunities. As for other types of properties, he states, “the second time buyer market was very active during 2013 and the demand for houses in general including terraced houses, villas, town houses and houses of character was greater than supply. We did notice that houses of character and town houses decreased in popularity in the recent past; however last year there was a change in trend.”

Meanwhile, a number of large scale property projects have recently been launched or re-launched, including the massive projects in Gżira and Mistra. Given the situation of the property market, is there room for such large projects in the current climate? Mr Casolani believes so, while emphasising the importance of location, stating, “over recent years these larger lifestyle projects have continued to increase in popularity and demand, not only with foreign buyers but nowadays also with the local market. Having said that, it is generally those in the more central harbour locations that remain in demand, and one of such a large scale and outside the more sought after areas, like the Mistra project, might find a challenging task ahead.” FEBRUARY / MARCH 2014

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viewingmalta.com

Indeed, Mr Falzon emphasizes the importance of carrying out the necessary market research in relation to such projects, maintaining, “there were too many developments in the past that were embarked upon just on the hunch of the developer without any real marketing studies. I was surprised when after MEPA approved one of the said projects, an investor said that marketing studies were still to be carried out. This was putting the cart

before the horse. On the other hand some of these projects will probably serve to satisfy the demands in the rental market, which is very strong as a result of foreigners with high quality jobs coming to work in Malta.” On a broad scale, Mr Casolani’s forecast for the property market in Malta in 2014 is bright. “So long as Malta remains an interesting proposition to the numerous foreign investors, be they individuals or companies investing in our islands, I

think the future is bright for the property market,” he asserts. As for Mr Falzon, this year will be the clincher. “2014 is the year that will indicate whether there will be an uptrend in the property market. If this does not happen, the market can stagnate. Up to now, all indications are that the upswing will be there.” All things considered, Mr D’Amato’s assessment for the local property market in 2014 is positive, with a good number of sales already concluded at the start of the year. “A good rush of first time buyers is expected during the second and third quarter of the year, which will create a ripple effect within the market. The number of foreign buyers re-visiting the island in view of buying a property also looks very promising.” Mr Grech is also in agreement, asserting, “I would say that 2014 will be a much healthier year for the local property market, where people will perhaps spend a little more than the previous year but on the whole the general transaction volume will be approximately the same. Moreover, the new governmental incentive of removing stamp duty on the first €150,000 for first time buyers has certainly helped motivate the younger population to invest in immovable assets.” cc

“2014 is the year that will indicate whether there will be an uptrend in the property market. If this does not happen, the market can stagnate. Up to now, all indications are that the upswing will be there.” – Malta Developers Association Honorary President, Architect Michael Falzon

“The global economy seems to be on the rise but the recovery of the [property] market is yet to come.” – Engel & Völkers Sara Grech Malta COO, Benjamin Grech FEBRUARY / MARCH 2014

CC in figures

The banking sector in Malta… IN NUMBERS

number of banks currently registered in Malta

number of banks registered in Malta a decade ago

€54.4

300% extraordinary jump in deposits of all banks registered in Malta over a decade – from €10 billion in 2003 to €30 billion in 2013

€10.7

€30

FEBRUARY / MARCH 2014

€8.5 BILLION

loans by banks to residents on the books of the locallyoriented core domestic banks

BILLION

50%

number of core domestic banks in Malta (APS Bank Ltd, Banif Bank

(Malta) plc, Bank of Valletta plc, HSBC Bank Malta plc and Lombard Bank Malta plc)

remarkable increase over the past decade of resident deposits at core domestic banks operating in Malta

BILLION

phenomenal sum deposited in all banks registered in Malta, including the core domestic banks, the noncore domestic banks as well as international banks

BILLION

current loans by banks registered in Malta, including international banks

level of resident deposits at core domestic banks

BILLION

asset base of banks registered in Malta

€19.8

number of non-core domestic banks in Malta (BAWAG Malta Bank Ltd,

Source: Central Bank of Malta and Malta Financial Services Authority

Credit Europe Bank N.V. (Branch Malta), FIMBank plc, IIG Bank (Malta) Ltd, Iżola Bank plc, Mediterranean Bank plc, Sparkasse Bank Malta plc and Volksbank Malta Ltd)

CC INTERVIEW

“Statistics show that Malta was one of the last countries to enter the recession and one of the first to exit.”

FEBRUARY / MARCH 2014

CC INTERVIEW Photos by Lionel Galea

Good news for Malta’s economy in 2014 The Governor of the Central Bank of Malta Professor Josef Bonnici shares his views on principle trends relating to the economy with Sarah Micallef, hitting on the global economic crisis, the level of public debt and Malta’s need for a Development Bank, as well as lending facilities for Maltese businesses and the significance of the jump in resident deposits at core domestic banks within the last decade.

overnor of the Central Bank of Malta Professor Josef Bonnici believes that 2014 brings good news for Malta’s economy, as it continues to perform better than the euro area as a whole in terms of the main economic indicators. “The economy is performing better than most of the countries around us,” he maintains. Indeed, as he points out, Gross Domestic Product has continued to increase at a faster rate than the euro area average, and this has translated into lower unemployment rates and positive employment growth rates. This growth in GDP can be traced back in part to various export sectors that are performing well, particularly serviceoriented ones like tourism, remote gaming and financial services: “tourism keeps on increasing its contribution to the economy, while computer services, software, online gaming, financial services and aircraft maintenance have kept us diversified. This has contributed to our resilience to the problems that most EU countries faced recently.” Expanding on his outlook for the local economy in 2014, the Governor of the Central Bank points out that GDP growth is projected at two per cent in 2014, which is higher than the 1.1 per cent projected for the euro area. On the other hand, the unemployment rate in Malta is projected to remain stable at 6.3 per cent while that in the euro area is expected to remain elevated at 12.2 per cent. While the external environment remains fragile in the wake of the global economic crisis, has Malta truly managed to escape unscathed? According to Prof. Bonnici, statistics show that Malta was one of the last countries to enter the recession and one of the first to exit, crediting economic diversification and a robust banking and financial system. On a global level, “both US and European economies are experiencing low growth following the recession. Normally, growth would recover more quickly, so there is concern that the recovery phase is taking

FEBRUARY / MARCH 2014

a rather lengthy period. The question is whether the economy is recovering in a selfsustaining manner.” Prof. Bonnici considers the current local economy to be in an accelerating phase in terms of growth, but the critical variable is investment. Whereas stating that “investment has been rather subdued for the past few years,” he goes on to mention that initial data indicates that the negative trend in investment will reverse in 2014, turning to positive growth after three years of decline. As for challenges the local economy is facing in the longer term, the Governor asserts that pressing challenges relate primarily to the preservation of our competitiveness in the light of competitiveness gains achieved in other countries. Challenges also relate to Malta’s ability to continue attracting investment which will require more skilled human resources. Further investment is needed in this area, he asserts, together with additional incentives and support structures to increase female participation: “we are already seeing significant changes, but are still some distance away from the European average in terms of female participation.” Having shown concern regarding the sustainability of pensions in the past, the Governor now maintains that “there is an element of reform that has already taken place – such as the increased retirement age that is taking place year after year. Further progress is needed on the introduction of new pillars in the pension system, so individuals will also think about augmenting the state pension system with their own contributions.” As for the issue of national debt, Prof. Bonnici explains that it is important that the debt-to-GDP ratio starts to level off and stops growing. “Rating agencies expect that if growth is higher, government expenditure is more subdued and revenue keeps up with what is being planned, the national debt will plateau.” In order to achieve this, additional 23

CC INTERVIEW

“Malta has been lagging behind in terms of the passthrough of lower interest rates set by the ECB.”

efficiency is required in revenue collection and expenditure. Continuing on the point of challenges faced by the local economy, the Governor is of the opinion that measures to incentivise more investment are also needed, such as programmes to promote investment and institutional advances, including the creation of a Development Bank, which he has been vocal about for some time. Prof. Bonnici explains that the setting up of the Development Bank would address a funding gap that currently exists in the Maltese financial system. “It would promote SME growth, easing their access to finance and the cost of credit. It would also complement the domestically-oriented banks in the funding of larger projects,” he states. “Government projects like social housing can be better handled by an institution like a Development Bank. It is a self-sustaining system whereby repayments are used to build new houses or to subsidise or lower the rates of newcomers to the market. We have a number of government-owned assets that are underutilised – these could form an important contribution to the economy,” he adds. As for the timeframe of the establishment, the Central Bank explored the possibilities and has prepared the initial studies, he maintains, adding that it would be willing to provide the necessary support for the next steps on the part of Government. Moving on to the issue of lending facilities for Maltese businesses, Prof. Bonnici states that one of the main concerns at the European Central Bank level is the weak pass-through of interest rate cuts in euro area countries, explaining that loan rates here are among the highest in the euro area, with only Slovenia, Portugal, Cyprus and Greece charging higher rates. “As a result, bank interest margins – the spreads between deposit and lending rates – are relatively high, and have widened over the last few years. Given that we have a very liquid market and banks are well-capitalised, there is room for the spreads to be a little narrower. I am not saying that the banks should not have their due diligence and not ensure that the projects are viable, but compared to other countries, Malta has been lagging behind in terms of the pass-through of lower interest rates set by the ECB.” Another aspect of concern, according to the Governor, is that “there seems to be a dependency by Maltese businesses on overdrafts. Relying on overdrafts means not having any collateral and is more expensive – it is not just a case of the banks charging higher rates but also a case of the customer 24

“Initial data indicates that the negative trend in investment will reverse in 2014, turning to positive growth after three years of decline.”

choosing a way of borrowing which is relatively more expensive.” Moving on to the Depositor Compensation Scheme, Prof. Bonnici comments on reports that the compensation fund is underfunded, stating “the DCS is being strengthened through higher supplementary and special contributions by the banks. The three-year programme started in January 2012. In the context of the banking union, deposit insurance will be enhanced through the integration of the national Deposit Guarantee Schemes. I believe one homogenous panEuropean Deposit Guarantee System would enhance the resilience of banks in the region, however, there is still some progress to be made at the political EU level for this to be achieved.” Meanwhile, statistics show that the level of resident deposits at core domestic banks, which are strongly connected with the domestic economy, grew from €6.3 billion in 2004 to €10.7 billion in December 2013. GDP grew by around 48 per cent (from €4.7 billion to €6.9 billion) while resident deposits grew by around 83 per cent. Prof. Bonnici maintains that this jump in deposits is “a good sign” stating, “there is a lot of wealth that is owned by Maltese households and businesses, and the savings that have been accumulated have been sufficient to handle not only private sector requirements but

also those of the public sector. Our structure in this aspect is similar to that of the core countries where the liquidity in the system is sufficient and they do not rely heavily on international capital markets to fund their economy.” On the other hand, loans to residents on the books of the locally-oriented core domestic banks stand at €8.5 billion. The Central Bank Governor comments, “we have recently observed a slowdown in credit growth, particularly in bank lending to businesses. Credit is an important driver of economic growth, and the Bank has emphasised the importance of ensuring the availability of credit, particularly to SMEs.” In relation to the EU debate on whether there is a risk that the euro area will experience a deflation, Prof. Bonnici explains that the low rate of inflation partly reflects the correction of past imbalances that is taking place in various countries. He states, “I do not think that the euro zone is close to a deflationary experience.” Speaking of the low interest rates being upheld by the ECB, Prof. Bonnici asserts: “previously, the ECB would never commit on interest rates, but over the past months it has been re-emphasising forward guidance, saying that the interest rates will remain low for as long as necessary.” cc FEBRUARY / MARCH 2014

CC design trends

“The first excavation, which is probably more than 200 years old, was made using a small pickaxe – you can actually see the marks it made on the wall.”

FEBRUARY / MARCH 2014

CC design trends Photos by David Pisani

From a rich past to a bright future Recently opened on one of Valletta’s most idyllic spots, The Harbour Club, comprising a restaurant, jazz bar and enoteca, has been four years in the making, but as architect Chris Briffa explains, its history far predates that. Sarah Micallef learns what went into the making of The Harbour Club.

ituated down the road from Victoria Gate in Valletta, on Liesse Hill, and with stunning views of the Grand Harbour, The Harbour Club is actually made up of three different properties, with the main section starting out life as a fruit and vegetables shop in an area which served as a pischeria some 100 years ago. “We started out doing research and looking at old pictures of the area. It was a place full of action – lots of merchants bustling around and trade between sea and land,” architect Chris Briffa states. Indeed, the decision to recreate the kiosk in the area it currently stands was inspired by historical depictions of the location which featured a kiosk selling lemonade on that spot, including one dated circa 1901 by artist Edward Caruana Dingli, as well as photographs by Richard Ellis. The old photographs now enjoy pride of place on site, in the form of backlit wall art. Chris recalls that when approached by his client with the idea of converting the main property – then a seedy place called ‘Ta’ Nenu Bar’ – the brief was for “a restaurant with an accent on wine, Maltese wine in particular.” At the time, it was made up of just the one section – the area which now houses the restaurant. The other sections, Chris explains, were previously four different

FEBRUARY / MARCH 2014

CC design trends

addresses, which each required separate applications with the Lands Department. “Admittedly it was a pain in the neck because the layout kept changing,” he says, “we first prepared plans for one property, and after the client managed to acquire an adjacent one, the design would have to be changed around. I don’t think we’ve done as many different layouts for any one project as we did for The Harbour Club!” This was not the only setback the team would face, however. As the process started, the properties proved to be a treasure trove of hidden depths. Chris looks back on the process, stating, “the first issue we had when we started was that there were accretions everywhere, so we couldn’t tell what the extent of the actual volume was. We began cleaning, and discovered hidden areas behind walls and concrete slabs.” The transforming landscape soon proved an issue for MEPA. “MEPA stopped us, stating that we needed a permit to continue. We argued that we needed to clean up all post-1980 accretions, made up of bricks and additions that were not original to the place. After that we would be able to survey, design the layout and apply for a permit. There was no such allowance in place, so we had to apply for a permit knowing already that we would have to re-apply,” he recalls. Post-clean up and first permit, works finally began in earnest in March 2013. “We started with restoration and cleaning, which was one of the biggest expenses of the project,” Chris says. During this phase however, the team also made some interesting discoveries. Chris describes some such findings: “in the lower levels, we found these ancient amphorae, which were probably used to store oil. In another area 28

“In the lower levels, we found these ancient amphorae, which were probably used to store oil. In another area we found a collection of very old bottles... we were constantly being surprised by what we found.” we found a collection of very old bottles, so I stopped the builders, and informed the client that we would need someone to delicately extract them. We were constantly being surprised by what we found.” The surprises however, weren’t always pleasant. “When we started removing the tiles on the floor, we discovered the floor was made up of a very badly reinforced concrete slab – the reinforcement consisted of an old railing from a balcony! Obviously, the entire ground floor slab needed to be replaced.” As luck would have it, it was at around this time that Chris’ client, who comes from a shipping background, made a different acquisition, purchasing about 200 square metres of old decking from a ship that was going for scrap: “it was 5cm of solid oak, 90 to 100 years old. This was perfect. It was very strong and had a really beautiful patina from all the weathering, and we used it as the main material of the interior: flooring, beams, tables, stairs and doors.” The idea to make The Harbour Club a jazz bar also came as a result of a discovery beneath the floor. Chris describes how the unearthing of a ‘cave’ – which now forms the stage area – makes it truly a place inspired by its location. “In the beginning it was just

going to be a restaurant and a bar, but when we found the cave, I said to my client, ‘hey, there isn’t a single club in Valletta and this area is associated with jazz via the Malta Jazz Festival – why not make it a jazz club?’ The space led to its use.” The cave also has its own story, featuring marks from excavations going on over three different periods of history. Chris explains, “the first excavation, which is probably more than 200 years old, was made using a small pick-axe – you can actually see the marks it made on the wall. Another set of chippings probably dates back to the 1980s using a pneumatic driller. The cave itself we believe to have been a reservoir – a hole in the ceiling of the main restaurant suggests that there was some kind of a crane on the terrace, where there is the lemonade kiosk, to pull things down and store them inside the reservoir.” Before works started, the tip of The Harbour Club’s terrace was taken up by an oddly-shaped planter, holding a disfigured tree that had seen better days. Chris explains that it was this area that saved the project: “seeing as it is a one-storey building, we were in desperate need of somewhere to hide our services – external units from the airFEBRUARY / MARCH 2014

CC design trends

“Most of our interventions are proud of the walls and structures around them. The suspended timber flooring rests on timer beams – both manufactured from the recycled oak decking of a decommissioned ship – and the underlying arches do not carry any weight.”

conditioning, gas tanks, water reservoirs and the fresh-air system. We came up with the idea to remove the planter, carry on with the building’s line, construct the kiosk as it was before, and under the kiosk, excavate a yard in which to hide the services.” Designed with a maritime feel, The Harbour Club features over 60 covers inside and 40 outside, and comprises a terrace and kiosk, main dining area, ‘private’ dining area which is known affectionately as the Captain’s Table, bar, stage, wine storage and kitchen. Taking inspiration from its location as the old fish market, Chris describes the design style as being maritime in nature, “but without the obvious ropes and potholes.” Rather than going the obvious route, he maintains, “it is subtle. It’s only when you notice that it’s old wood that you’re walking on and raw steel that you’re touching that it becomes more industrial and maritime.” 30

Moreover, given the properties’ evolution, Chris maintains that it was important to them to keep further markings to the stone at a minimum. “Most of our interventions are proud of the walls and structures around them. The suspended timber flooring rests on timer beams – both manufactured from the recycled oak decking of the decommissioned ship – and the underlying arches do not carry any weight.” Light was also an important element, given the previous dark nature of the space. The flooring helped in this instance: “the flooring is thick, structural flooring with glass spacers in between for an effect that makes you feel as if you’re walking on something light. In the morning, the slatted light comes from the top akin to a ship’s hold, and at night the inverse happens when downstairs is lit up.” As for lighting, the vaulted ceiling was an obstacle that was overcome with a little innovation. Chris explains, “we had to come up with a system where we could cater for different seating arrangements while working with the vaulted ceiling, so we took three lines in the ceiling and placed hooks along them, from which the lights can be

hung.” This way, he explains, when individual lights need to be changed around, they can be moved and hung according to the appropriate hooks. Despite being one of the most challenging projects he’s worked on, Chris is pleased with The Harbour Club, and is a regular visitor. Citing the use of natural light to be an achievement he’s particularly fond of, effectively “making a dark and humid place into a well-lit and liveable environment,” he mentions that his favourite spot is the Captain’s Table: “it’s where we sit every time we go. It’s great because when you’re sitting there, you pretty much have a view of every corner.” He also hopes that the project will inspire a regeneration of the area around the Grand Harbour: “it’s one of the first projects of this kind in the area, and I hope that for all the other properties that are next door – many of them vacant – it has a kind of dominoeffect and inspires a change. If there’s one thing Valletta has which is unique to everywhere in the world I’ve been, it’s the Grand Harbour. Places like this make you aware of this gem.” cc FEBRUARY / MARCH 2014

CC business

Taking the mystery out of doing business Unsure about what goes on in your company when you’re not around? As Jo Caruana finds out, mystery shopping can offer incredible insight as to what your business is doing right, and what it can do better.

t’s one thing keeping a close eye on your business when your team is only made up of a few people. But it’s another when your number of employees grows substantially, and you’re suddenly fully reliant on other people to maintain your company’s reputation and get the job done. It can be easy to lose touch. Of course there is a variety of tools to help shed light on exactly how things are being done when you’re not watching. Software programmes can detail everything from your employees’ online antics to their sales figures, while other technology can also keep tabs on what’s going on. But there are real-world tools you can

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consider too, such as the use of a mystery shopping company that will be your eyes and ears when you’re not around – as well as so much more. “Mystery shopping is an effective research tool precisely because of its element of mystery,” explains Vanessa Demanuele, Research Executive at MISCO International Ltd. “As the role and identity of the mystery shopper, as well as the date and time of their visit, are not disclosed to the target employees, it provides a realistic reflection of the service an actual client would receive, and this is exceedingly valuable.” To facilitate their research, mystery

shoppers are sometimes given a scenario to act out, such as being an angry customer or a client who asks a lot of questions. They may also be asked to perform specific tasks or assess certain aspects of their experience, such as the cleanliness, environment or follow-up service of the business in question. “This helps to assess how the staff handles these challenging situations,” continues Ms Demanuele. And there is no doubt that there is a huge range of businesses, across various sectors, that can benefit from the services of mystery shopping. “As a concept and tool, mystery shopping is widely used to check levels of service, product quality, distribution and product knowledge, and has wide-reaching benefits,” says Louis Olivieri, Chairman of the Marketing Committee within the Malta Chamber. “All sorts of sectors use it but it is especially popular for checking restaurant food quality and service, hotel service, product knowledge at mobile phone shops and electrical retailers, service knowledge 33

CC business at garages, and staff attitude and uniform compliance at other outlets. But, of course, the mystery shopping remit is pretty exhaustive and not limited at all.” Detailing the actual mystery shopping process further, Anthony Gatt, Managing Director of MHCS Ltd, explains that it is usually designed to follow an entire ‘customer journey’, depending on the industry being audited. “Mystery shopping is designed to relate the facts as seen from the eyes of genuine clients, which makes it much more real,” he says. “The process could start from the moment a mystery shopper enters an outlet, or from the second he or she starts a phone conversation with a business. “Companies hope to learn a lot from this, including how their outlet is being perceived by their clients and details such as the ease of routing, displays, promotional material being advertised and, of course, staff attitude and compliance to their clients’ needs.” Mr Gatt explains that the mystery shoppers used by his company tend to be ‘run of the mill’ punters. “They come from all walks of life and will usually have been educated to A Level standard – they don’t stand out in any way,” he explains. “It is of utmost importance that they have an eye for detail and that they expect high standards from every industry. In fact, we set all of our shoppers an observation test prior to them being ‘engaged’ on a freelance basis with us. This helps us to explain what we expect and want them to look out for, such as a staff

member’s facial expressions or the level of care and cleanliness provided.” Business owners choosing to kick-start a mystery shopping exercise will be asked to prepare a list of questions that they would like to have answered through the process. “Based on the information they want to know, we prepare a questionnaire for our team to complete,” continues Mr Gatt. “The questionnaire is divided into separate sections with details to be filled in; once this

is finalised it will be easy to see which areas the company has excelled at, and which need work. “As a business, we also provide a ‘shoppers’ narrative’, which describes the shopper experience from an outside perspective. The final report then includes league tables and graphs that allow for comparisons between different sections of the survey and also of past performance. Future projects will show trend reports

“[Mystery shopping] provides a realistic reflection of the service an actual client would receive, and this is exceedingly valuable.” – MISCO International Ltd Research Executive, Vanessa Demanuele

“A mystery shopping company will be your eyes and ears when you’re not around.”

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CC business

“Mystery shopping is widely used to check levels of service, product quality, distribution and product knowledge, and has wide-reaching benefits.” – Malta Chamber Marketing Committee Chairman, Louis Olivieri showing improvements or reductions in scores, so it quickly becomes clear where focus is needed.” Mr Gatt goes on to say that he and his team have had both positive and negative experiences while working on mystery shopping projects. “But there are a couple that stand out for one reason or another!” he smiles. “On one particular project we were assigned to monitor an outlet’s entrance to check the traffic going in and out. We needed to spend four hours opposite it while remaining innocuous and couldn’t leave the post, not even for toilet breaks. It was the longest four hours of my life! “On another audit, a mystery shopper encountered a fight between two members of staff in the outlet she was auditing. The ensuing fight was quite aggressive and proved to be very entertaining since a lot of passers-by wandered into the shop to see how things would pan out. Luckily this company’s head office was situated right above the outlet so the manager was able to call a stop to the battle before someone got seriously hurt. It goes without saying that the mystery shoppers report for this outlet was a complete disaster!” Naturally, the real benefits of using a mystery shopping company come from FEBRUARY / MARCH 2014

implementing its advice once the process is completed. “These kinds of exercises are so useful for identifying the aspects of your business that need work – whether it is changes to your product range, improvements to your staff attitude or alterations to your process in general,” concludes Ms Demanuele. “Once you have the knowledge in hand you can do something about it, and knowledge really is power in this respect.” cc

“Companies hope to learn a lot from this, including how their outlet is being perceived by their clients and details such as the ease of routing, displays, promotional material being advertised and, of course, staff attitude and compliance to their clients’ needs.” – MHCS Ltd Managing Director, Anthony Gatt 37

Tech Review

There’s very little we choose to do without our smart phones nowadays, and tech creators are only making sure we remain hooked. Martina Said takes a look at the latest technologies and gadgets around that are sure to keep you more connected and in sync than ever before. 01. Smart Watches Smart phones have slowly but surely taken over our lives. It appears the trend in technology is to constantly increase connectivity through smaller devices. That is currently the case with the smart watch, which is an ordinary wrist watch with far more extraordinary functions. Smart watches can run apps and all sorts of digital media, such as audio tracks or radio streamed to Bluetooth headphones. Many of these watches have touch screens too, which allow you to access certain functions such as a calculator, thermometer and compass. They act similarly to a smart phone, with internet access, enabling message notifications and even an ability to place calls thanks to Bluetooth connectivity.

02. Polaroid Socialmatic For lovers of the good old Polaroid brand, good news awaits you in the form of the Polaroid Socialmatic, with a 14-megapixel camera, 4.5” touch screen LCD display on Android, a zero ink printer and Wi-Fi and Bluetooth connection capabilities. True to its roots, this camera allows its user to print a small photo, and also to share it on Facebook, Twitter or Pinterest using the built-in software on a Wi-Fi network. At the corner of a printed photo is a QR code, enabling other Socialmatic users to scan it, access the digital version and reprint.

04. Kolibree toothbrush Investing in this above-average priced toothbrush will guarantee you never miss your daily brushing sessions. This gadget has been dubbed as the world’s first connected electronic toothbrush – users download a mobile app and connect via Bluetooth, then three sensors record and document how long you brush, whether you brush all areas of your mouth and if you brush using the correct motion of up and down rather than side to side. The data syncs to your phone, and the app traces your progress and scores your technique to encourage your brushing habits.

05. Doorbot With this piece of technology, you needn’t worry about not hearing the doorbell ever again. The Doorbot is an internet connected doorbell that alerts your phone when someone presses the buzzer. The device could either run off an internal battery or connect to a power supply, and requires Wi-Fi access within your home. Once connected, it will notify your phone, showing you whoever is behind your door, even if you’re not at home. There is no limit to the number of devices that can connect to the DoorBot, so every member in the house could benefit from being alerted.

TECHNOLOGY

04.

05.

06. Data Leak Prevention

01.

Loss of sensitive data is a big risk for any company. With information residing in more places than ever before, on various devices and with employees, partners and customers on the go, enterprises face growing risks. Kinetix Malta are hosting an event about Data Leak prevention for business owners and IT managers at the end of March. Send an email to info@kinetix.com.mt to receive an invitation. cc

03.

03. The June Bracelet This piece of jewellery will tell you when you’ve been in the sun for too long and actually recommend a specific SPF or sun hat to help protect you from harmful rays. This gadget is unique as a wearable gadget – it could be either strapped to your wrist or worn as a brooch, and is aimed directly at women. Netatmo’s June doesn’t have a screen and all important information is relayed through an app for iPhone. A percentage meter shows the amount of sun exposure you’ve had during the day and a UV index figure offers advice on how to protect yourself.

02.

06. FEBRUARY / MARCH 2014

CC environment

Utility bill: Enterprises saving water can slash their utility bills, while also contributing to easing pressure on Malta’s scarce freshwater supplies, definitely a case of environmental protection making business sense.

“Malta among world’s top ten water scarce countries” – MBB CEO Joe Tanti The EU Life+ Investing in Water project, aimed at reducing waste of our freshwater among local enterprises is nearing its end. The Malta Business Bureau offers Martina Said an indepth look at the project’s purpose, results and future.

ater is a finite resource – and much to the country’s detriment, Malta qualifies among the top ten water scarce countries worldwide. The scarcity of freshwater is largely caused by the widespread mismanagement of the consumption of freshwater, leaving our supply short and dry. A recent project spearheaded by the Malta Business Bureau (MBB), titled ‘EU Life+ Investing in Water’ has been aiming its efforts at helping businesses and hotels reduce their water consumption since 2012. Project Manager Geoffrey Saliba explains that the fundamental scope of the project is to help participating enterprises adopt water saving solutions. “We chose water as there is not enough natural water in Malta to meet the country’s needs, which is why Malta relies heavily on reverse-osmosis. Water scarcity is also reflected in the price of water,” says Mr

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Saliba. “With our natural water sources threatened by nitrate pollution and overextraction, and water representing a considerable cost for industry, it is clear that by saving water, industry is acting both in the national interest as well as its own. Through the project we aimed to have at least 20 per cent of participating enterprises adopt water saving solutions, leading to a 10 per cent reduction in water consumption.” The project started swinging into action through a set of water audits concluded with approximately 40 enterprises from various sectors in early 2012. The audits underlined water saving opportunities and solutions to help meet the circumstances of local enterprises. Mr Saliba explains that invitations were issued to businesses and hotels on contact lists belonging to the MBB, the Malta Chamber and the Malta Hotels and Restaurants Association (MHRA). “We also advertised through various

Testing the flow: Over 130 enterprises have been audited by the project. Many have implemented water saving solutions.

media, at events and conferences. Surprisingly, a large number of audits also came through word of mouth recommendations by enterprises which had already been audited. Demand was quite high – there were several months when we were fully booked.” Mr Saliba explains that the project made five basic recommendations to participating businesses following the audits – to regulate shower and wash-hand basin flow rates, reduce the toilet flushing volume, use 43

CC environment rainwater and treat waste water for in-house recycling. Was it easy for businesses to adjust to such water-saving measures? “Rainwater harvesting and waste-water treatments are more challenging to implement and require long-term planning. The enterprises which are considering them are still planning their implementation. If a funding policy were available for such upgrades, the take up would likely be higher. Flow rate regulation and flushing volume reduction on the other hand, have been easily, quickly, and for a relatively low cost, implemented.” The MBB’s Chief Executive Officer, Joe Tanti, maintains that enterprises stand to benefit significantly from such water saving solutions and an increase of in-house knowledge on water management, primarily

in terms of financial savings. Mr Saliba agrees. “We believe that participating enterprises have been empowered to operate more sustainably in both the short and long-term. Malta has also benefited from a reduced water demand – which is important given our status as one of the world’s top ten water scarce countries.” What spurred the MBB to take on this project? “The MBB’s role is to act as a bridge between EU legislation and local industry. One of the key environmental legislation relating to industry locally is the Water Framework Directive, which requires that countries balance groundwater extraction with recharge,” explains Mr Tanti. He goes on to highlight Malta’s bleak water scarcity situation, where groundwater extraction exceeds recharge by around 50 per cent.

Water saving tips for businesses 1. 2. 3.

“After the LIFE+ Investing in Water project concludes in March we will continue to provide advice to enterprises interested in reducing their water consumption.” – MBB CEO, Joe Tanti

4. 5. 6.

Using restrictors, aerators or water efficient fixings reduces shower flow rates to seven litres per minute Using restrictors, aerators or water efficient fixings reduces wash-hand basin flow rates to five litres per minute Using water saving bags reduces toilet flushing volumes to six litres. If purchasing new toilets, consider the latest models available on the market using just four and a half litres per flush Harvest rainwater Grey-water (waste water from showers and wash-hand basins) treatment can reduce a hotel’s consumption by up to 20 per cent Black-water (sewage) treatment can reduce an enterprise’s consumption greatly if the enterprise has the second-class water demand, and space for it.

Restrictors: Cheap, easy to fit and maintain, yet restrictors could reduce water consumption and hot water demand significantly.

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CC environment “The MBB and project partners Malta Chamber and MHRA felt that industry could support the country to reduce groundwater extraction by running a water savings project. This is the reasoning behind the EU LIFE+ Investing in Water project,” he continues. Although it is still premature to share the results of the project, Mr Saliba says that the MBB is at present verifying the volumes of water saved by enterprises. “Results are already very encouraging – enterprises for which this exercise has been completed are saving enough water every year to run three medium-sized four-star hotels. As the exercise is concluded for more enterprises, we expect this figure to increase substantially.” The benefits of the project will be that much more remarkable if businesses were to commit to implementing a long-term vision. Does the MBB envisage such upkeep on behalf of participating businesses? Mr Saliba asserts that enterprises which adopted water saving measures started to reap benefits from day one following the implementation. “The benefits will also definitely continue to be felt by those enterprises in the longterm. Apart from the enterprises which have already implemented water saving measures, several are either in the process of doing so, while others are still planning

projects,” he continues. “In addition, some of our recommendations would require structural upgrades and are therefore longterm projects. We expect that enterprises will continue to implement the project’s recommended measures until they are surpassed by improved technology.” Mr Tanti agrees, adding that the problem of water scarcity is not going away anytime soon and, as things stand, it is likely to get worse before it could get better. “For this reason, and given the benefits industry reaps by saving water, the MBB intends to continue working on water conservation. After the LIFE+ Investing in Water project concludes in March, we will continue to provide advice to enterprises interested in reducing their water consumption, while also working with stakeholders to ensure that knowledge gained through the project is not lost.” The EU LIFE+ Investing in Water project has shown that environmental concerns and sustainable action by industry could indeed complement each other and the two could work sustainably together. Mr Tanti concludes that the MBB does hope to tackle other environmental issues that are of concern to industry in the near future. “To this end we are currently reviewing which issues we should tackle and, at this point in time, waste and energy seem to be priorities.” cc

“Enterprises for which this exercise has been completed are saving enough water every year to run three medium-sized four-star hotels.” – EU Life+ Investing in Water project Manager, Geoffrey Saliba

CC planning

New revised Use Classes Order addresses today’s realities with less bureaucratic procedures The Parliamentary Secretary for Planning and Simplification of Administrative Processes in consultation with Malta Environment and Planning Authority (MEPA) has published a new Development Planning (Use Classes) Order which replaces that issued in 1994. With the socio-economic and environmental context having changed considerably over the past 20 years, an urgency arose for this development planning legislation to be revised to make it more pertinent to today’s realities with less bureaucratic procedures. The Use Classes Order is a Legal Notice which groups uses with similar land use and environmental impacts together into classes. To simplify and reduce the bureaucratic burden of these new procedures, the new Use Classes Order has been divided into eight main categories, each aggregating a cluster of classes. The categories are Residential, Social, Tourism and Leisure, Commercial, Industrial, Storage and Distribution, Agriculture and Aquaculture. While the premise remains that in most cases, even within the same category, a change of use from one class to another requires full development permission, this will not apply for cases where the

proposed change of use within an existing development will constitute a lesser land use and environmental impact to what is already permitted on site, as long as it is within the same category. For example for a change of use from a school (Class 2C) to an old people’s home (Class 2A) there is still need for full development permission, while for a change of use from a retail outlet (Class 4B) to an office (Class 4A), a simple development notification is sufficient. While the same procedure will also apply for a change of use from a hotel (Class 3B) to a guest house (Class 3A), prior clearance from the Malta Tourism Authority will be required in this case. The new Order has also amended the list of development planning uses which do not fall within any of the categories because of their particular nature. This comprehensive list, referred to in the Legal Notice as Outside Use Class, includes amusement arcades, band clubs, discotheques, fireworks factories, bakeries and supermarkets among others. Where such uses are proposed, a full development permit is required since consideration of their context needs to be made as they raise unique planning issues which need to be studied. Dwellings remain within Class 1 but the new Order gives more direction to activities carried out as part of a residence. Whilst the concept of operating an occupation or business activity from a residence is still being encouraged, the Legal Notice makes a proviso so that the type and scale of these activities is controlled.

The new Use Classes Order has also introduced the concept of ‘lodging’ as an activity which can be carried out in a residence by allowing accommodation of up to 16 persons within a residence located in an Urban Conservation Area. This has the scope of encouraging the regeneration of Urban Conservation Areas and is subject to clearance from the Malta Tourism Authority. In the light of the experience gained over the years, the previous Class 6 has evolved into two Classes 4C where cooking is not allowed and 4D where cooking is allowed. Takeaways have been taken out of this category and placed within the classified list under Article 4 (outside use class). Although takeaways including pastizzerijas offer food and drink facilities, these places raise different environmental issues, such as litter, longer opening hours and additional traffic and pedestrian activity. cc

The new Legal Notice is downloadable from the Authority’s website www.mepa.org.mt

FEBRUARY / MARCH 2014

CC data protection

The data-protection challenge Many small business owners make the mistake of assuming that data leak or data loss is not a threat to their growing business. The reality is that no organisation is immune – blue-chip companies, small businesses, schools and governments have all been affected. And, as the number of internet-connected devices skyrockets into the billions, Data Loss Prevention is an increasingly important part of any organisation’s ability to manage and protect critical and confidential information. Nevertheless, it remains an increasingly complex endeavour. By Curt Gauci.

According to a Gartner CISO survey, Data Loss/Leak Prevention (DLP) was the biggest priority for 2012. DLP is typically defined as any solution or process that identifies confidential data, tracks that data as it moves through and out of enterprise, and prevents unauthorised disclosure of data by creating and enforcing disclosure policies. Since confidential data can reside on a variety of computing devices (physical servers, virtual servers, databases, file servers, PCs, point-of-sale devices, flash drives and mobile devices) and move through a variety of network access points (wireline, wireless, VPNs, etc) there is a variety of solutions that can tackle the problem of data loss, data recovery and data leaks. How many times have you left your tablet, mobile or even laptop behind? How many instances of briefcase or handbags being stolen have you heard of? There are numerous other intentional and accidental ways in which data leakage can occur – an employee copying data on a USB stick, losing a USB stick, emailing or

uploading confidential data accidentally or intentionally. We have seen this situation and similar happen time and time again. After all, everybody is human and these are circumstances which anyone can find himself in, at any point in time. The unfortunate thing is that it usually takes such occurrences to sound an alarm bell with business owners alerting them of the importance of implementing a data leak prevention strategy, no matter the size of their firm. Loss of sensitive data is really and truly an operational risk for any company. Today, information resides in more places than ever before, including mobile and personal-storage devices. With employees, partners, customers and vendors working from home, the office and the field, enterprises face growing risks of inadvertent or malicious data leaks, possibly allowing the information to be intercepted or to fall into the wrong hands. Safeguarding the security of your data and network is essential to avoid the negative business and financial impact

Examples of critical and confidential data types include n Intellectual property such as source code, product design documents, process documentation and internal price lists; n Corporate data such as financial documents, strategic planning documents, pipeline details, negotiation details, due diligence research for mergers and acquisitions, and employee information; n Customer data: social security numbers, credit card numbers, medical records and financial statements.

security threats have on a business’s viability, productivity, resources, data and reputation. Having deployed several Data Protection Solutions we have the experience required to design and implement a security system capable of protecting your data from internal and external threats. Our security services are designed to prevent information leaks in case of loss of device, network violations and virus threats, as well as brand defamation due to malicious, inappropriate or fraudulent activity on a network. cc Curt is director and co-Founder of Kinetix IT Solutions, a local leading IT Systems Integrator. Kinetix are HP, Cisco, Microsoft, Kerio, Trend Micro and Symantec certified partners.

T: 2167 2007/2013 2000; E: info@kinetix.com.mt; W: www.kinetix.com.mt 52

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/52 CC news CHAMBER

NEWS Internationalisation

01. Middle East Business Council present for the EU-MENA Business Salon held in Sharjah, United Arab Emirates With the support of Omar Cutajar, the Malta Chamber’s representative at the Malta Business Bureau in Brussels, the Middle East Business Council was represented at the EU-MENA Business Salon in Sharjah, United Arab Emirates in November. Tonio Casapinta, Member of the Malta Chamber Board of Management and Chairman of the Middle East Business Council represented the Malta Chamber at this event. The Business Salon was an intensive two-day networking event, where leaders and senior executives across the MENA region and the EU shared knowledge and best practices and explored opportunities for further business relations. Topics covered included MENA/EU Business Status and future prospectives, economic indicators, trends, business culture and regulatory systems, and also included a private sector outlook in developing MENA-EU business relations. The second day of the event focused on how Chambers of Commerce should play their crucial business facilitating role in the best effective ways possible in the exclusive interest of their members. Important contacts were established with the Dubai, Sharjah and Qatar Chambers of Commerce in preparation for the forthcoming Business Mission which the Middle East Business Council is planning to have in the region and which is being coordinated with Malta Enterprise and FinanceMalta. Other discussions were held with representatives of Business Councils from India, Libya, Tunisia and Lebanon.

02. Wirtschaftsstammtisch at Malta Chamber for the first time The Embassy of the Republic of Germany in collaboration with the German-Maltese Business Council (GMBC) within the Malta Chamber organised the annual

‘Wirtschaftsstammtisch’, held for the first time at the Malta Chamber on 19th November. The event, which was attended by representatives of German companies in Malta, opened with a welcome speech by GMBC Chairman Karl Aquilina, followed by an address by the newly appointed Ambassador to Germany in Malta, H.E. Klaus-Peter Brandes. The keynote speaker was Paul Apap Bologna, a representative of the ElectroGas Consortium in which Siemens is a partner, and who gave a presentation about the Gas Power Plant Project.

03. Internationalisation Desk represented at European Enterprise Awards ceremony In November, Internationalisation Manager Klaus Pedersen participated in the European Enterprise Awards ceremony, held in conjunction with the annual SME Assembly organised by the European Commission. The Malta Chamber participated in the event in Vilnius, Lithuania, courtesy of the Commission, as the Maltese national winner of the European Enterprise Promotion Award in the category ‘Supporting the Internationalisation of Business’. The award was bestowed upon the Malta Chamber in recognition of the contribution made towards the internationalisation of Maltese business, through the conduct of an internationalisation survey, and the subsequent creation of an internationalisation database. The information generated from this database enables the Internationalisation Desk to give qualified input to Malta Enterprise and other stakeholders concerning the geographical and sector orientation of the country’s internationalisation support efforts, and enables the Desk to give a more targeted and bespoke service to members, knowing what international activities they wish to undertake and the countries which they target. At the event, European organisations were recognised for their efforts in business support in a number of

categories, ranging from entrepreneurship and internationalisation support, to the development of green markets and resource efficiency.

04. Networking seminar by Scandinavian Business Forum Malta The Scandinavian Business Forum Malta (SBFM) in collaboration with Loyalty Group A/S of Denmark organised a seminar on customer loyalty at the Malta Chamber on 28th November. The seminar opened with a welcome speech by the SBFM Chairman Dr Mark Fenech, followed by presentations by two key-note speakers: Dr Gege Gatt, Director of ICON Studios and Mikkel Korntved, CEO of Loyalty Group A/S of Denmark. Dr Gatt spoke about what principles to keep in mind when using social media channels to achieve customer loyalty and sales. Mr Korntved spoke about customer loyalty, stressing the importance of building relationships with customers and the often overlooked economic importance of retaining customers – especially those that brought profit. The seminar was followed by a networking reception with Scandinavian food sponsored by Swedish Delights and Meridiana wines, kindly supplied by S. Rausi.

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05. Middle East Business Council seminar on business ethics and culture in the Arab world The Middle East Business Council – Malta (MEBC) in collaboration with FinanceMalta, organised a seminar titled ‘Business Ethics & Culture in the Arab World – two years after the Arab Spring’ at the Malta Chamber on 29th November. The seminar started off with a welcome speech by MEBC Chairman Tonio Casapinta, followed by Prof. Ranier Fsadni from the University of Malta, who spoke about the political situation in the Arab world following the Arab Spring. The second key-note speaker was President of the Arabic Culture Information Society Sanaa El-Nahhal, who gave a presentation on important cultural aspects when doing business in the Arab world. The seminar was followed by a networking reception with Middle Eastern specialties and Arabic tea and coffee.

a presentation about Taiwan, showing among other things, that the economy of the territory is the 19th largest in the world. Taiwan boasts many household names among its indigenous brands, including such market leaders as Acer and Asus computers and Garmin in wireless technology. He stressed that relations with China have improved over the past four years, to the point where China has an Economic and Free Trade Agreement with Taiwan, and is its largest trading partner. Several areas of potential collaboration were identified, including both export and import of goods and services as both Malta and Taiwan have great potential as regional hubs.

07. Follow up on visit to Palestine

On 11th December, President David G. Curmi, Director General Kevin J. Borg and Internationalisation Manager Klaus Pedersen met with two representatives from the office of the Taiwanese Economic Division in Rome. The Director of the office, David J.P. Wang was in Malta in order to explore how to better develop trade relations between Malta and Taiwan. Mr Wang went through

On 13th January, Malta Chamber President David G. Curmi met with Secretary General of Palestinian Federation of Industries Dr Odeh Al-Zaghmouri, and General Manager of TB Contracting Company Fayez Al Amleh. The meeting was also attended by Managing Director of Aluserv Ltd Mark Vassallo, who also formed part of the delegation to Palestine last October, and Internationalisation Executive Lina El-Nahhal. Mr Curmi welcomed the visitors and offered the Malta Chamber’s assistance with business in Malta. Mr Al-Zaghmouri also expressed the Federation’s interest in organising a delegation visit to Malta and setting up B2B meetings for Palestinian companies. Mr Curmi welcomed the idea and said that the Malta Chamber would be

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willing to organise a ‘Doing Business with Palestine’ event where Palestinian and Maltese guest speakers would be invited to promote business between the two countries.

08. Meeting with diplomatic representatives from Yemen and Sudan On 16th January, Member of the Internationalisation Committee and Chairman of the Middle East Business Council Tonio Casapinta met with the Chargés d’Affaires of the Yemeni and Sudanese Embassies in Tripoli – Ahmed Al-Jahrani and Osama Mohammed Yasain respectively. The meeting was also attended by Internationalisation Executive Lina El-Nahhal. Al-Jahrani and Yasain were in Malta on an official invitation by the Ministry of Foreign Affairs. Mr Al-Jahrani said that he was confident that the Maltese business community was serious about establishing concrete relationships with countries like Yemen and Sudan, with the private sector being the most important sector for collaboration. Mr Yasain spoke about the importance of establishing collaborations between Malta and Sudan, and using both countries’ geographical positions as strong factors.

09. Meetings with the Ambassadors of the Republic of Iraq and Slovenia The Ambassador of the Republic of Iraq H.E. Dr Saywan Sabir Mustafa Barzani and the Ambassador of Slovenia to Malta H.E. Iztok Mirosic visited the Malta Chamber on 14th January and met with President David G. Curmi and Director General Kevin J. Borg in two separate meetings. The Iraqi Ambassador spoke about the latest political and economic situation in Iraq. Opportunities for business and investment, and the potential of Maltese exports, especially processed foods and pharmaceuticals to Iraq were also discussed.

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The effects of the continued economic crisis in the euro-zone and prospects for 2014, the Maltese experience with liberalisation of air routes and the privatisation programme of strategic national companies were discussed with the Slovenian Ambassador.

for Honorary Consul is currently being vetted in Malta as well as in Romania.

10. Think tank meeting on consortia formation in the Middle East and North Africa region

Middle East Business Council (MEBC) Chairman Tonio Casapinta led a delegation to a courtesy call on the Leader of the Opposition, Dr Simon Busuttil. The meeting was held at the Dar Ċentrali of the Partit Nazzjonalista on 23rd January. The party was further represented by Deputy Leader Dr Mario de Marco, Shadow Foreign Minister Dr Carm Mifsud Bonnici and International Secretary Dr Trevor Degiorgio. The meeting served to introduce the MEBC’s aims and activities to the Opposition. The possible introduction of Sharia tourism and Islamic finance in Malta were discussed, as well as the work of the MEBC in encouraging local operators to consolidate resources through consortia for the purposes of tapping lucrative markets in the Gulf. On his part, Dr Busuttil pledged his party’s political support to the objectives of the MEBC and underlined the importance of leveraging the benefits of Malta’s EU membership in seeking new business opportunities in the Gulf.

On 17th January, a think tank meeting on tender consortia formation in the Middle East and North Africa (MENA) region was organised by the Middle East Business Council (MEBC) and chaired by Perit David Xuereb. The meeting was opened by MEBC Chairman Tonio Casapinta. Its purpose was to gauge the opinion of Maltese companies on consortia formation. The findings were that, although tradition was for Maltese companies to be competitive and weary of collaboration, there had recently been an increasing interest in collaborating and joining forces in order to be able to compete in bigger markets such as Libya and the Gulf Cooperation Council countries.

11. New Honorary Consul to Romania On 21st January, Internationalisation Manager Klaus Pedersen met the new Honorary Consul in spe to Northern Romania, Jonathan Scifo Diamantino. Mr Diamantino has worked in Romania for the past seven years, and has a deep knowledge of the country, in particular about investment in property and construction projects. Mr Diamantino’s candidature

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12. Middle East Business Council meets the Opposition

13. Top level Dutch speakers come together to discuss sustainable growth, innovation, green ICT and gaming The Malta Chamber in collaboration with the Embassy of the Kingdom of the Netherlands organised a ‘Doing Business with the Netherlands’ seminar on 23rd January. The Dutch Embassy invited top level speakers from leading institutions and organisations in the Netherlands to share their expertise with the Maltese public. The guest speakers were Director International at TNO Emile Elewaut, Mayor of Appsterdam Mike Lee, Project Manager at Green IT Amsterdam Maikel Bouricius, and Development Director at Dutch Game Garden JP van Seventer. The seminar was opened by Malta Chamber Deputy President Anton Borg, who spoke about the advantage of high level experts coming to Malta to share their “best practice”. He also spoke about the Netherlands’ leading role in green growth and economic development as a result of drive, focus and years of dedicated work and investment in high-growth sectors.

Dutch Ambassador H.E. Rita Dulci Rahman spoke about the need for Malta and the Netherlands to sail forward towards green economic growth. She said that the Dutch government has signed agreements with several associations and unions, all with the main objective of stimulating cooperation and promoting the Netherlands as a global leader in green growth. Minister for Energy and the Conservation of Water Konrad Mizzi delivered an address outlining Malta’s developments in the energy field including working with TNO to achieve tangible initiatives, the new power station plant involving private operators, finalising a draft on a Renewable Energy Plan and pushing towards solar energy as opposed to wind. Emile Elewaut from TNO spoke about the importance of working closely with universities and emphasised that a sustainable future energy system required well-planned strategies. Mike Lee from Appsterdam talked about the basics of technology and the facilitation of clustering. He also said that what makes Appsterdam different from other organisations is that ongoing activities transform oneoff efforts into drop-in infrastructure. Maikel Bouricius from Green IT Amsterdam pointed out that Green IT works on three different levels – local, national and at EU level. He also mentioned two projects that Green IT has recently worked on. JP van Seventer from Dutch Game Garden spoke about the various purposes of gaming, while pointing out that it had become the second largest entertainment media after music. He mentioned that Malta could engage in training, for simulation purposes, to reach global markets and to teach applied games techniques. He also explained how one can use gaming to explain a complex problem, be it to students, workers or citizens. The presentations were followed by a panel debate during which the participants had the opportunity to ask questions. This was followed by oneto-one meetings with the speakers. Iris Kroes, winner of The Voice of Holland 2012 performed during the networking lunch in the Malta Chamber’s Courtyard.

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NEWS

Events & Initiatives

01. SME Week public procurement seminar offers practical solutions to Government and SMEs The Malta Chamber SME and Family Business Committee, together with the Malta Business Bureau (MBB), organised a full-day seminar on Public Procurement. The event was held at Smart City on 21st November as part of the European Union SME Week. The morning event focused on the facilitation of international tenders and was opened by the Minister for the Economy, Investment and Small Business, Christian Cardona and Malta Enterprise Chairman Dr Mario Vella. The session was addressed by Malta Chamber Internationalisation Manager Klaus Pedersen, Council Member Mario Spiteri in his capacity as Deputy President of MBB, Nadine Costacurta from the European Commission and Toni Saraiva from the European Information Services Centre. The highlight of the session was a panel debate on international tendering with the participation of Peter Bugeja (6PM); Mark Attard (Orion); Anthony Diacono (Medserv); Mark Zahra (James Catering Services); and Charles Camilleri (Alberta). The afternoon session was opened by Malta Chamber SME and Family Business Committee Chairman Frank V. Farrugia, and took a focused approach at facilitating the involvement of SMEs in public purchasing, thereby assisting them in their growth and their potential for innovation. Three case studies which mapped out the public procurement processes in three different sectors were presented, identifying areas that functioned well and others that needed improvement. The presentations were made in the presence of Director General of Public Procurement Procedures Anthony Cachia and Permanent Secretary in the Ministry for the Economy, Investment and Small Business Paulanne Mamo, both of whom took note of the points made. The presentations were given by Francois Grech, for the IT sector, Robert Magri for the healthcare sector and Ing Joseph Camilleri for the supplies and services sector.

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02. Malta Chamber participates in the SME assembly in Vilnius

04. LA BORSA – Oozing with nostalgia

The Malta Chamber participated in the 2013 SME Assembly which took place in Vilnius under the EU Presidency of Lithuania. It was represented by Malta Chamber Vice President and SME and Family Business Committee Chairman Frank V. Farrugia, and Head of Sectors Lino Mintoff. The SME Assembly, which is a yearly gathering of stakeholders in SME policy brought together a varied programme of keynote speeches, interactive policy sessions and networking opportunities. The main highlight of the discussions was the need to have a Europe full of enterprise and to encourage more people to become entrepreneurs. The SME Assembly offered the opportunity to the participants to share best practices, experiences and ideas for the immediate future. It also discussed the challenges that would be faced in 2014 which include better access to finance, doing business in a greener economy, better use of the digital economy, smarter rules and tools for enterprise, internationalisation, improving skills and education in enterprise.

When discussing the Malta Chamber’s publication ‘La Borsa – The People, The Building, The History’ Judge Giovanni Bonello said that the book “oozed with nostalgia”. He explained that one could not look to the future without referring to the past and that this book provided a wealth of historic information and personal experiences. He referred to the Malta Chamber as the soul of the business community with the body formed by the business its members generated. Judge Bonello was speaking during the launch of the Malta Chamber’s ‘La Borsa – The People, The Building, The History’ on 18th December. This publication brings several months of planning and intensive work to a satisfactory close. The launch was addressed by Malta Chamber President David G. Curmi, book editor Judge Giovanni Bonello and Prof. Carmelo Vassallo. A general history of the Malta Chamber by Robert Micallef is followed by an article entitled ‘The Chamber and Malta’s Bankers’ by John Consiglio and another named ‘The ‘Borsa’, a social meeting place with cultural aspirations’ by Vicki-Ann Cremona which reminisces about the social life which the Chamber provided for its members and “all the respectable classes of Maltese society”. The history chapter also includes articles about the personal experiences of Michael Mallia and Alfred Zahra de Domenico when doing business in the 1980s. In a separate section Perit David Felice discusses the architecture of the building and also features articles by Theresa Vella on the sculptural group which once adorned the façade and the building that stood in place of La Borsa. A great part of the book is dedicated to the portrait gallery with appreciations of each painting by the late Emmanuel Fiorentino and Krystal Farrugia, while the ‘Vedute’ or Valletta paintings are the topic of an in-depth article by Theresa Vella and the contemporary art collection is discussed by Charlene Vella. The final section of

03. President’s Annual Reception 2013 The Sir Agostino Portelli Hall was once again the venue for the Malta Chamber’s Annual Reception on 10th December. The 2013 event was attended by over 200 members and guests. Among the guests at the reception were Ministers Louis Grech, Evarist Bartolo, Chris Cardona, Leo Brincat, Parliamentary Secretary Edward Zammit Lewis, the Leader of the Opposition, Simon Busuttil and PN Deputy Leaders, Beppe Fenech Adami and Mario de Marco. The diplomatic corps were well represented, as were leading banks and businesses.

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La Borsa is dedicated to the personal memoirs of past presidents gathered into one essay by Petra Caruana-Dingli. The book is sold at €80 per copy. Interested individuals are requested to contact Johanna Calleja on T: 2123 3873 or E: johanna.calleja@maltachamber.org.mt The book is also available at leading book shops.

05. ISO 9001:2008 The Malta Competition and Consumer Affairs Authority has re-certified The Malta Chamber of Commerce, Enterprise and Industry to comply with the requirements of MSA ISO 9001:2008. The Malta Chamber was originally certified to comply with the standard in December 2010. The scope of the Malta Chamber Quality Management System (QMS) is to support, safeguard and promote the interests of members and influence the formation of policy at national and European level. The QMS is designed to provide documented procedures and a control mechanism to assure the quality of its service, provide controls for the prevention of nonconformities and assure consistent delivery.

06. Special MCESD meeting on Gozo priorities Director General Kevin J. Borg represented the Malta Chamber at a special MCESD meeting which was convened to discuss the economic and social priorities of Gozo. The meeting was held on 17th December and was addressed by the Minister of Gozo, Anton Refalo. The focus of the meeting centred on transport and accessibility issues, tourism and the creation of jobs on the sister island.

07. Malta Chamber participates in citizenship meetings with Government and Opposition In January, representatives of the Malta Chamber participated in meetings of the Malta Council for Social and Economic Development (MCESD) on citizenship. The first meeting on 7th January with Leader of the Opposition, Dr Simon Busuttil was attended by Malta Chamber Deputy President Anton Borg and Director General Kevin J. Borg. The aim of the meeting was for Dr Busuttil to provide a thorough explanation of the Opposition’s objection to the scheme. These 62

were that in his view the Government had failed to address the fundamental objection that citizenship could not be offered for sale and that the scheme had tarnished Malta’s reputation. Another objection dealt with the regulations laid out in the legal notice which the Opposition described as flawed. On 10th January, President David G. Curmi, together with the Deputy President and the Director General attended an MCESD meeting with Prime Minister Dr. Joseph Muscat at the Auberge de Castille. During the meeting, the Prime Minister clarified aspects of the scheme saying that any Maltese service provider could obtain clearance from Identity Malta to attract clients without the need to go through other parties. He also said that there was no need for a service provider to go through a concessionary or that a concessionary would hold money due to Malta. He confirmed that due diligence on applicants would take a minimum of six months by which time legal notices will have been debated.

08. State visit to Austria and Slovakia Malta Chamber President David G. Curmi accompanied H.E. Dr George Abela, President of Malta on a State Visit to Austria and Slovakia between 22nd and 24th January. Malta Chamber Past President Joseph R. Darmanin, a former Consul to Austria also formed part of the Maltese delegation. The delegation participated in the ‘Economic Forum Austria – Malta’ organised and hosted by the Austrian Chamber of Commerce. The speakers included President of the Republic of Austria H.E. Dr Heinz Fischer; H.E. Dr Abela; President of the Austrian Federal Economic Chamber, Dr Christoph Leitl; representatives from Advantage Austria and Mr Curmi. During his speech, Mr Curmi explained that the Malta Chamber was a private, voluntary organisation representing all sectors of the business community on a local and national basis. He provided

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an overview of the Maltese economy from the Malta Chamber’s viewpoint and spoke about the similarities between the Maltese and Austrian economies. Mr Curmi also detailed the close relationship the Malta Chamber enjoyed with its Austrian counterparts, the Austrian Embassy in Malta, Advantage Austria and Quality Austria. The President said that business relations between Malta and Austria were developing well, at both practical and institutional levels. He said that the Malta Chamber would continue to play a central role in these developments and would continue to work with its Austrian counterparts. The delegation also participated in a Business Forum at the Slovakian Ministry of Foreign Affairs. The Malta Chamber President addressed the forum together with the President of Slovakia H.E. Ivan Gašparovič; H.E. Dr Abela; President of the Slovakian Chamber of Commerce Peter Mihok, representatives from FinanceMalta, Malta Enterprise, the Malta Tourism Authority and a representative of the Slovakian Ministry of Foreign Affairs. Mr Curmi addressed the Business Forum and thanked the Slovakian Chamber for hosting the event. He explained that the Malta Chamber worked closely with Malta Enterprise to promote trade and investment. He said that Malta was well placed with a highly diversified economy and that it continued to contribute towards European industry. He also spoke about Malta’s developing sectors such as aviation repair, maintenance and overhaul, ICT and digital media, as well as the well-established but ever evolving maritime trade. The President said that there was further scope for business between Malta and Slovakia. He said that the Malta Chamber would continue to play a central role and would work with the Slovak Chamber and other stakeholders to realise its aims.

09. Malta Chamber and Bank of Valletta launch CSR toolkit The Malta Chamber, in collaboration with Bank of Valletta, launched a Corporate Social Responsibility (CSR) toolkit and report. This formed part of a joint project which specifically addressed the benefits of introducing CSR practices within a company’s operations. The event was addressed by Malta Chamber President David G. Curmi and Chief Officer Operations at Bank of Valletta Michael Galea. The project aimed at mapping out the conduct and development of CSR initiatives FEBRUARY / MARCH 2014

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by Maltese companies, giving additional promotion to the concept of responsible entrepreneurship amongst the business community and maximising the benefits of CSR to both business and society at large. This was done through a profiling exercise of the business community which concluded that 88 per cent of companies surveyed were engaged in CSR-related activities. This survey also showed that only 55 per cent of companies communicate their CSR activities to their stakeholders. It was also shown that notwithstanding the fact that larger sized enterprises tend to have a more structured CSR policy, small enterprises also have a strong impact on their immediate community and surroundings. It was clear that CSR could and should be the remit of all enterprises. In his address, Mr Curmi said that “the Malta Chamber believes that the

companies that perform best over time are those that build a social purpose into their operations that is as important as their economic purpose. As we all know, in business earning respect is more difficult than earning money. Through this initiative we have shown clearly that it is possible for a business to make a profit and benefit the community at the same time.” Speaking at the event, Mr Galea said, “since launching the CSR programme at Bank of Valletta, it has become more and more difficult to extract CSR-driven initiatives from the day-to-day running of the organisation. I believe that to a great extent, this is a measure of our success because ultimately CSR is not a plug-in formula but a frame of mind that needs to infiltrate the very fibre of the organisation. It is our way of dealing with the different stakeholder groups

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and being active responsible citizens. We trust that this toolkit will serve as a stepping stone for our business customers and other companies in the local market to embark on this journey.” The two organisations augured that the launch of this CSR toolkit would urge more companies to actively consider committing themselves to managing their business responsibly.

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NEWS Issues & Positions

01. The Euroguidance Malta Annual Conference “Establishing the enhanced capabilities of our workforce provides enhanced growth to business,” was the opening of a speech delivered by Malta Chamber Deputy President Anton Borg at the Euroguidance Annual Conference organised by the European Union Programmes Agency (EUPA) on 25th November. Mr Borg said that it was important that skills and career guidance were shared to support Malta’s ongoing enhancement in human capital and long-term economic development. Mr Borg emphasised the Malta Chamber’s firm belief in education as being the most important pillar upon which the country’s economy must be built. In view of Malta’s limited size, Mr Borg explained that it was important to realise the country’s particular economic dependence upon the quality of its workforce and its ability to adapt in the changing global economic development. More importantly, skills were imperative for the buildingup of a high quality workforce that was conducive towards a productive, innovative and competitive economy. The existing FEBRUARY / MARCH 2014

collaboration between the Malta Chamber and academia were explained, displaying the Malta Chamber’s strong commitment towards the identification of skills and the reduction of skills mismatches. In his closing remarks, Mr Borg said that the Malta Chamber was committed to establishing a workforce that was characterised by valuable skills, knowledge and capabilities. He thanked the Ministry for Education and Employment, and the EUPA for their continued collaboration and support. Also participating in this conference were representatives from the Employment Training Centre and the Malta Information Technology Agency who discussed the importance of employability and career guidance, particularly to the Maltese economy.

02. National conference on enhancing social dialogue and labour institutions Malta Chamber Human Resources Committee Member Antoinette Caruana attended the national conference on Enhancing Social Dialogue and Labour Institutions organised by the

Department of Industrial and Employment Relations (DIER) on 5th December. Ms Caruana focused on the importance of taking stock of the mechanism and climate of social dialogue to seek continuous improvement for the benefit of the economy and society at large. On a national level, she spoke about the importance of identifying partners, agreeing upon representation, ensuring effective communication, having a process that was manageable and which made optimal use of scarce resources, and being prepared with the required information and technical papers. On a sectorial level, Ms Caruana spoke about the potential for increased development of sectorial social dialogues and their benefits in view of the considerable number of micro and small enterprises. In conclusion Ms Caruana said that social dialogue was not an end in itself but rather, a means to an end. It was a tool which required the correct policy, mechanisms and structures, as well as the right commitment, communication and relationships so as to deliver improvements to the way business is carried out. Ultimately, this should lead to economic betterment and a better future for the country.

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03. Bank of Valletta renews gold support agreement with Malta Chamber Media release issued on 12th December 2013 A three-year agreement was signed between Bank of Valletta and the Malta Chamber, renewing the Bank’s gold partnership with the Malta Chamber. The agreement was signed by CEO Charles Borg and Chief Officer Operations and MultiChannel Banking Michael Galea on behalf of Bank of Valletta, and Malta Chamber President and Deputy President, David G. Curmi and Anton Borg respectively. The latest agreement will formalise cooperation between the Malta Chamber and Bank of Valletta until 2016. This extends formal cooperation between the two organisations to beyond a decade since the signing of the first agreement. The two organisations will continue to work together on a number of initiatives, and will seek to focus on creating a platform that supports local SMEs. The services will be provided through a ‘BOV SME Advisory Office’ within the Malta Chamber building. In a brief address, Mr Curmi said that the Malta Chamber was proud to be supported by one of the main players in the island’s economy. “Bank of Valletta has offered tangible support to the Malta Chamber for several years and this support has gone beyond monetary contribution. The local business community has been the major beneficiary of this long history of support and this latest agreement will concentrate on SMEs and their valuable contribution to society.” Speaking during the signing, Mr Borg said “this agreement is another important milestone for the bank, giving tangible evidence of its commitment to supporting and promoting SMEs to achieve their full potential. Through this agreement, both parties will capitalise on their leading roles and expertise to assist SMEs. In addition we look forward to the possibility of collaborating on joint projects for the benefit of the business community.”

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04. Malta Chamber discusses poverty with EU Commissioner László Andor Director General Kevin J. Borg represented the Malta Chamber at a special MCESD meeting addressed by European Commissioner for Employment and Social Mobility László Andor, who was in Malta to launch the LEAP project. The meeting took place on 12th December in the presence of Ministers Helena Dalli and Marie Louise Coleiro Preca. During his intervention, Kevin J. Borg commented that poverty was a very sensitive matter to which there were no shortcut solutions. Measures to combat poverty needed to be targeted carefully at the source of the problem or the repercussions of bad decisions could affect national competitiveness and economic growth very negatively. For this reason, the Malta Chamber maintained that the surest way to combat poverty was through a healthy mix of giving people the right skills and job creation. The Malta Chamber commented positively on the EU funded LEAP project as a step in the right direction for Malta in terms of combatting poverty through the encouragement of work rather than hand-outs.

05. Malta Chamber stresses need for bipartisan approach to ensure sustainable and just health reform The Pharmacists Pharmacy Owners Business Section, the Health Care Business Section and the Pharmaceutical Manufacturers Business Section held their second meeting with the Minister for Health Dr Godfrey Farrugia to discuss the White Papers – ‘Ensuring Your Right to Entitlement Medicines at the Time you Require Them’ and ‘Importation and Sale of Food Supplements’. The Malta Chamber’s Business Sections reiterated their belief that health, as a matter of public policy, is one of the utmost strategically sensitive sectors and that a bipartisan approach should be adopted to ensure that reforms maintain the sustainability of the health sector.

06. No shortcut solutions to address poverty – Malta Chamber Media release issued on 8th January 2014 The Malta Chamber takes strong exception to the suggestion made by the Minister for the Family and Social Solidarity that

Government is considering an increase in the minimum wage. This reported suggestion squarely contradicts the Labour Party’s solemn pre-election declaration that the minimum wage would not be increased beyond cost of living adjustments. The Malta Chamber firmly maintains that wages are a function of productivity and not of spending power. It certainly does not agree that an increase in the minimum wage is a viable solution to eliminating poverty. Poverty is a sensitive matter to which there are no shortcut solutions such as the one being proposed. Increasing the minimum wage is a short-sighted approach. Besides, the effect of this measure on the intended beneficiary would be short-lived. On the contrary, any measure to address poverty needs to be carefully designed and targeted specifically at supporting, in a sustainable manner, the spending power of the cohort of people who are at the risk of poverty. It is certainly unrealistic to assume that the minimum wage can be altered in isolation. Such an increase will inevitably bring about a domino effect further up the ranks and across the whole economy to the detriment of cost competitiveness. Whilst it is acknowledged that wages are not the sole determinant of competitiveness, the Malta Chamber insists that no further burdens are placed on Malta’s labour competitiveness, particularly at this time when certain other EU member states are instituting painful reform which include an aggressive re-engineering of their cost base. These countries have redesigned their work practices and in some cases instituted pay cuts of 20 per cent or higher. On this count, the Malta Chamber meanwhile continues to insist on the need for the COLA formula to be revised sooner rather than later to ensure a better alignment of wage and productivity developments through a formula that incorporates a measure for productivity besides inflation. Besides wages, the safety net that safeguards people from poverty is sustained by the productive side of the economy that contributes taxes and social security contributions. This productive side must never be weakened or this could bring about unnecessary risks to the country’s social security system. All in all, the Malta Chamber continues to stress that wealth creation must precede wealth distribution and this sequence must not be reversed as it would expose the country to the risk of having less resources to re-distribute. The country only needs to look at the anguish experienced by FEBRUARY / MARCH 2014

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other countries to realise what reversing the sequence would mean to Malta.

07. A proposal that institutionalises an injustice against employers – Malta Chamber Media release issued on 10th January 2014 The Malta Chamber strongly opposes the proposed concession for parents to take their sick leave to attend to their children when they are unwell. In the Chamber’s view, this proposal serves to institutionalise an injustice against employers. The introduction of such work practices will further serve to erode Malta’s competitiveness and potential for growth. The Chamber regards sick leave as a concession and not a right. It comes at a cost to the employer and it should not be exploited or trivialised. It is available for employees to avail of when they are genuinely unfit to attend work. Ample annual leave is available and should be used in order to attend to family responsibilities. Whilst employers endeavour to be flexible and compassionate with their staff, this measure will pose additional burdens not only for them but also for other employees. The measure could bring about a perverse effect in that it may encourage workers to report to work when they are sick in an effort to ‘save’ their sick-leave entitlement for when their children are unwell. Again, this would be unfair to the employer and fellow workers. The cost of this measure will further erode the competitiveness of both SMEs and larger companies alike, and will continue to exacerbate economic problems. Companies with a small number of employees will feel the effect disproportionately. Besides, the proposal can serve as a dangerous precedent as attempts could then follow to extend the scope of the measure. The Malta Chamber has in the past years been actively involved in discussions on family-friendly measures and has presented its proposals to a specially appointed MCESD Working Group. The Malta Chamber is in favour of family-friendly measures and its proposals were intended to find the right balance between granting reasonable flexibility to workers and incurring losses in competitiveness due to business disruption and financial cost. For this reason, the Malta Chamber emphasised that the national policy must place particular emphasis on measures that discourage absenteeism and promote people at the place of work.

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08. Malta Chamber flags competitiveness concerns in NET TV interview In January, Kevin J. Borg gave an interview on NET TV in which he aired the Malta Chamber’s concerns with respect to the declines registered in the official statistics pertaining to industrial production. The Director General explained that the trend in these statistics was being carefully followed by the Malta Chamber and analysed against qualitative data collected internally through surveys. He confirmed that the trend in official statistics was unstable and of concern, and stated that this matched the information collected by the Malta Chamber. He said that order books for local manufacturing plants were generally lower, compared to previous periods, due to the fact that orders were going to countries and regions which were becoming more competitive compared to Malta. Mr Borg appealed to the authorities and stakeholders to take heed of these signs and take the necessary corrective action in the interest of jobs and growth in the country.

09. Bold decisions in healthcare – now or never Media release issued 17th January 2014 The Malta Chamber held a national conference to discuss the way forward for an efficient, fair and sustainable healthcare system. The event was addressed by Malta Chamber President, the Health Minister, the Shadow Minister, the Chairperson of Alternattiva Demokratika, the Bishop of Gozo, and a representative of three Malta Chamber Sections related to healthcare. As a responsible organisation, the Malta Chamber felt obliged to discuss its concerns and offer tangible solutions to the healthcare situation in the country. Last May, the European Commission advised Malta to “pursue healthcare reforms to increase the cost-effectiveness of the sector, in particular by strengthening public primary

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care provision.” It also recommended efficiency improvements and reductions in the length of public procurement procedures. Similarly, in its 2012 Country Report, the International Monetary Fund said it was crucial for Malta “to build broad public consensus for healthcare reform aimed at increasing the adequacy and sustainability of the current schemes.” Healthcare reform has been unnecessarily delayed by political factors. Consequently, the country is left with a system which is inadequate, unaffordable, and does not reach its objectives. The unsustainability issue is not merely a concern for future generations. It is already with us today because due to financial constraints, wastage and the fact that it entitles people to trivial items/services, it is not possible to cater for serious life-saving medication. As a result, in the hour of need, patients, irrespective of their social background, are forced to resort to charity or other drastic measures to retain their chance to live. The Malta Chamber’s recommendations were faithful to the solemn promise made ahead of the last election for medicines and healthcare services to continue to be free. Nevertheless, even within these tight parameters, the Malta Chamber believes there is ample room for improvement. In fact, the suggested scheme aims to improve procurement and by-pass public sector inefficiencies in ordering, stocking and distributing medicine. All this whilst ensuring that medicine remains free and that the rights and welfare, especially of the most vulnerable, are safeguarded. The Chamber’s proposals were based on the principle of ‘prevention is better than cure’ as also applied to the national resources dedicated to healthcare – in particular primary and secondary healthcare. If resources are freed to enable a widening of the medicine formulary and to afford the purchasing of important and advanced drugs, people will be healthier and their need to seek urgent attention at Mater Dei and health centres will be reduced. More efficacious medicines will result in shorter hospital stays or reduce the need for hospitalisation. However, in order to free up the necessary resources, there must be political consensus on fundamental issues. Agreement is necessary on taking bold steps to eliminate waste as well as to remove free entitlement to trivial items and services. In both cases, of course, due attention is to be given to uphold the interests of society as a whole. It is evident that saving our healthcare system requires a holistic approach and political maturity. 69

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The Chamber was encouraged by the feedback received on its proposals. It is also encouraged by the manner in which the political parties are approaching the situation. The Chamber shall continue to work towards facilitating a process of political consensus to pave the way for the country to be in a position to offer – and afford – a healthcare system that our future generations so rightly deserve.

10. Launch of MEP election business manifesto On 21st January, Deputy President Anton Borg and Director General Kevin J. Borg attended the launch of the MEP Election Business Manifesto. The launch was also attended by Malta Business Bureau President George Vella and CEO Joe Tanti. The MEP candidates present were Carmel Caccopardo representing the Alternattiva Demokratika, Partit Nazzjonalista candidates Helga Ellul and Jonathan Shaw, and Partit Laburista candidates Dr Alfred Sant and Ivan Grixti. The Malta Chamber’s representatives were pleased to contribute to this initiative for the formulation of a business manifesto ahead of the forthcoming election for members of the European Parliament in May. In line with its European affiliations – Eurochambres and BusinessEurope – the Malta Chamber needed to ensure that the business priorities for Europe over the next five years were visible during the electoral campaign. Following the elections, these priorities would need to be followed up. The Malta Chamber intended to highlight the business need for European policy-makers to put in place a strong, growth-oriented policy environment for continued recovery across Europe. At the same time, Malta must not lag behind fellow member states. The Malta Chamber’s representatives emphasised the need for local MEP candidates to pursue competitiveness-enhancing policies which would better enable Malta to compete on the European stage and beyond. In

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so doing, it would be possible to create more and better job opportunities in Malta and ensure an enhanced socio-economic balance. Competitiveness depended on other factors that were externally inflicted by the treatment and inconsistencies in the application of certain EU rules. The Malta Chamber said that Europe needed to ensure that peripheral regions and states were given a fair opportunity to make their contribution to Europe because ultimately business in Europe had increasingly involved value chains stretching across countries, with each country specialising in one or several stages. Difficulties were due to certain inconsistencies that existed in European regulations and in the application of a onesize-fits-all approach to such regulations. All this was rendering conditions for business uncompetitive and unsustainable in Malta as well as in other small island regions or states. In conclusion, the Malta Chamber pointed out that it was vital that all MEPs across the political spectrum recognised and supported the need for wealth creation to precede wealth distribution at all times. At the same time, MEPs were asked to advocate finding permanent solutions to the permanent handicaps that Malta faced in terms of its geographical position as a single island.

11. MEUSAC consultation session about a proposal to reduce the consumption of plastic bags Policy Development Head Andre Fenech represented the Malta Chamber at a consultation session organised by MEUSAC and MEPA on a proposal for an EU Directive to reduce the consumption of lightweight plastic carrier bags. The mai n aim of the proposal is to promote waste prevention and reduce littering. Member states will be required to take measures to reduce these types of bags in their territory whilst allowing them to set their own national reduction targets. It was explained that discussions were still ongoing at Council level and further amendments were being proposed by the member states. Mr Fenech enquired about the impact this new Directive would have on the Maltese scenario given that the country had already taken very strict measures in reducing the use of plastic bags through the implementation of the Eco Contribution Act. It was explained that Malta was one of the best practices at a European level and that lobbying was being made not to introduce further stringent rules on countries which had been pro-active. Mr

Fenech concluded that there was also a strong need to strengthen the enforcement of illegal importation of plastic bags in Malta. These traders were completely by-passing the local fiscal regime putting local producers and importers at a disadvantage. Mr Fenech also enquired about the definition of plastic carrier bags. It was explained that the definition was very broad and included any type of plastic bag below 50 microns in thickness irrespective of its features. The Malta Chamber will be formulating written submissions.

12. Stakeholders meeting with DG Enterprise The European Commission Representation Office hosted a stakeholders meeting as part of a fact-finding mission by the DirectoratesGeneral Enterprise and Industry and Research and Innovation on the 23rd January. The aim of the meeting was to assist the European Commission better understand the issues and concerns of the key players in a number of areas such as skills and entrepreneurship, innovation and sustainability, general business environment, the public administration, taxation and finance and investment. Head of Policy Development Andre Fenech represented the Malta Chamber and raised a number of issues related to the implementation of the Small Business Act, among them the fact that the SME test was never introduced and that the Think Small First principle was not being systematically used in the implementation of all legislation but rather used sporadically depending on the entity drafting the law or procedure. Mr Fenech additionally raised issues related to the Late Payments Directive and the fact that companies were not yet benefitting from the full implementation of the Directive. He also said that the full implementation of the e-procurement system was a step in the right direction which the Government needed to introduce to make the system more business-friendly whilst assisting enterprises in its use. With regards to access to finance, Mr Fenech explained that existing schemes such as Jeremie and MicroInvest had been an overall success but the country needed to refocus on the implementation of private equity instruments such as seed financing, venture capital, crowd financing and the creation of a business angel network. Mr Fenech also raised points related to skills mismatches, the high cost of electricity tariffs for industry and justice reform. FEBRUARY / MARCH 2014

STYLE

Best Dressed

05. Waist Not

Your workwear wardrobe should include key pieces from this season’s trends, as well as favourites that you know work brilliantly for you. Here we choose the items that will turn heads for the right reasons.

Want to smarten up your outfit? It’s easy to do with a waistcoat. Just make sure you get the right fit – with high armholes, and a snug fit around your shoulders and torso. To avoid the ‘waiter’ look, opt for seasonal materials such as tweed, cotton or corduroy, and always keep your waistcoat properly buttoned up.

01. Green Scene

06. In the Bag

It might not be hot enough to shed the wool layer in time for warmer weather, but it is time to embrace colours that make us think of spring. This jumper is ideal for that – effortlessly taking you from a day at the office to a walk after work.

02. See Clearly As the ‘geek’ trend continues into 2014, it’s time to make a statement about your eyewear. Follow in the stylish footsteps of celebrities including Anne Hathaway, Hilary Clinton and Brad Pitt, all of whom have proved black rims and strong hues make for the perfect facial accessory.

03. Dapper Denim It wasn’t long ago that denim was severely frowned upon when it came to workwear. But times, and trends, are changing. Now, if worn well, denim can perfectly complete an outfit – just don’t overdo it. Pair a tailored denim shirt like this one with a smart tie and a light-coloured blazer.

04. Over-The-Top Oversize Oversized clothing has been around for a while, but this season it takes on a more refined edge. For women, pair a tight skirt or pair of shorts with a large blazer, while, for men, it’s all about billowing silhouettes such as trench coats (like this one from Burberry), sweatshirts and loose-fitting trousers.

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A new season bag is essential to see in spring. This year’s best bags are something of a briefcase/handbag combo, with plenty of room for your phone, tablet, purse and more. We love this bright blue bag by London-based fashion designer Florian, although other on-trend hues to hunt for include pinks, lilacs, oranges and neutrals.

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07. Covered Up Practical tablet covers are the order of the day, as more and more of us carry ours around constantly. Trends include leather pouches that also provide space for pens, business cards and note paper, meaning you’ll have all your meeting essentials at your fingertips.

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08. Light as a Feather The need to bury ourselves under heavy scarves is (thankfully) gone for another year, but we do still need that extra layer to keep us covered up. That’s where a stunning, vibrant scarf comes in, providing the perfect finishing touch to an otherwise simple outfit, and also offering a cosy barrier to the last dredges of cold weather. cc

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STYLE

REVIEW 07.

Finishing Touches

03. Let’s Hang

Whether you’re looking for the perfect finishing touch for your office, home or outfit, this is our selection of your complete musthaves for a new season of style.

Taking the term ‘add a splash of colour’ quite literally, this steel coat rack will brighten up even the dullest of spaces. This designer item was thought up by Munich-based Julian Appelius, and we think it would be the perfect addition to any reception area or office.

01. Ideas that Stick

04. Check Mate

Enjoy inspiring your team? Wall stickers are one of the latest interior design crazes to hit the office world – and we love them! Ideal for jazzing up an empty space or encouraging people to smile, there are all sorts to choose from, including quotes, cartoons and landscapes.

Do you and a colleague need to make a really important decision? Put it to the chessboard! Despite all the technology around us, chess is still one of the most popular games in the world, and a sleek chessboard makes the ultimate office accessory.

05. Let There Be Light

02. Minimalist Magic More and more offices are opting for chic, minimalist design, and nothing says minimalist like white. If you’re planning an office in this style, why not opt for a chair like this one? It’s comfortable as well as cutting-edge.

Inspired by a musical instrument and made from brass and aluminium, this light is as attractive as it is useful. With various lamps pointing in different directions, you can position it as you please – whether above your reading chair or over your computer keyboard.

06. Tied in a Bow As vintage fashion continues to impress, you’ll find that this season’s must-have accessory is the good old bow tie – and that’s for ladies too! If you’re looking for something special, visit the bow tie gurus at OoOTies where their collection includes black silk ninjas, zombies in wool, polyester pirates and mint juleps!

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07. New Arrival On the hunt for the perfect present for a colleague who’s just had a baby? Personalised items are all the rage at the moment, as they show that you’ve put in the extra thought and effort. We’re head over heels for this cufflink design, with little silver footprints and the baby’s name etched onto them. cc

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Land Reclamation Project: “MEPA will get involved once an application is submitted” – MEPA Chairman Vince Cassar Is land reclamation a feasible opportunity for our country or a potential white elephant in the making? Following Government’s recent call for expressions of interest, Martina Said digs through the layered subject of land reclamation.

eclaiming land from the sea around the Maltese islands has been the subject of many a heated and controversial debate. Some parties have stood firmly against the idea from the start, primarily due to the string of negative environmental repercussions it will leave in its wake, while others have been in favour of it for years, proclaiming our seas to be a valuable resource brimming with opportunities. Government’s international call for expressions of interest for land reclamation, issued last year, reopened the hypothetical can of worms. Twentyone proposals were received, and are

being evaluated by a board set up by Government. Among the projects submitted are a race track, sports facilities, boutique hotels, a business centre and a floating village. MEPA Chairman Vince Cassar says that the first step in the entire evaluation process will be made by Government, whereby it will express interest in one or a number of projects and the company that submitted the proposal will in turn need to submit a development application to MEPA, which will be considered in accordance with established development and environment parameters. Will new parameters and guidelines need

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to be drafted for developing reclaimed land, or will existing ones for building onshore apply? “Building on land has its own characteristics, implications and method of construction. Doing something at sea is totally different, and it could be that new parameters will need to be laid down,” he explains. “There are many factors to consider. In the case of a floating island, one might have to factor in a structure placed on land to supply the structure out at sea, both with building materials during construction and once it is complete. Will there be residents on the island? Will there be commercial activity? You will need a connection to the mainland.” FEBRUARY / MARCH 2014

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“There have been no submissions or discussions yet with any developers – what we are expecting is that Government will decide on one or more projects, and the process with MEPA will start there.” – MEPA Chairman, Vince Cassar Mr Cassar adds that MEPA will get involved in the project once a development application is submitted, after which discussions will take place between the developer and the Planning Directorate regarding which direction the Directorate feels the project should take. “There have been no submissions or discussions yet with any developers – what we are expecting is that Government will decide on one or more projects, and the process with MEPA will start there.” The project will most likely also undergo an Environmental Impact Assessment (EIA), a formal procedure securing that environmental, social and economic factors are taken into account before making a decision on an application. “Depending on the results achieved through the EIA and other planning considerations, the application will be accepted or rejected accordingly. The EIA will look into, for instance, the building technology that will be used and how the developer will execute the project, in order to minimise negative impact on the environment. It will also determine if and what new parameters need to be drafted for building on reclaimed land.” Mr Cassar says that it is the obligation of the developer to conduct an EIA, through a consultant of the developer’s choice who needs to be approved by MEPA. The report is then assessed by the Environment Protection Directorate, which will give its recommendations to the MEPA Board. The final decision on accepting or rejecting the project will be taken by the MEPA Board. FEBRUARY / MARCH 2014

Perit David Xuereb, CEO of QP Management, explains that land reclamation can take the form of a simple extension of a shoreline, such as a harbour jetty, or a more dramatic extension such as an island. With reference to the projects submitted to Government, he emphasises the importance of thorough evaluation. “Every project submitted needs to be analysed, discussed and considered holistically, which includes the social, economic, environmental and political aspects. If it is going to make any sense to Government who issued the EOI and even more so to the investor, they will need to make all the considerations necessary to make sure it works, not just economically when the project is complete but also in how it is maintained. Otherwise, if they fail, we’ll end up with white elephants or easily erodible projects along our coast.” Entrepreneur Angelo Xuereb, who first began discussing the subject as early as 2000, considers land reclamation to be a viable option for countering the mounting volume of construction and demolition waste on our islands. “In the last 50 years, as long as Magħtab has been in existence, construction waste has been dumped there, and is now a man-made artificial mountain. Filling up empty quarries is a good short-term solution, but we need to look at something more long-term,” he explains. “Taking all this into consideration, I agree that we should look at land reclamation with caution. I don’t agree with constructing an island in the

middle of the Grand Harbour, but we should consider a development that makes financial sense, will benefit the country’s economy, attract investment and contribute to regeneration. With land reclamation, a negative impact on the environment is unavoidable, but you need to find the least damaging.” From the project proposals published in the media, which ones are realistically sustainable? Mr Xuereb shares his views on the proposed hotel on a floating platform – “Firstly, to construct a reinforced concrete platform will cost a bomb. Secondly, I know the viability of a hotel, and it takes around 20 years to recoup investment on land, let alone at sea. There was mention of a racing track too, which is a nice idea, but will it pay?” Mr Xuereb says there must be some form of upmarket real estate for the development to be cost-effective, as it is sure to generate revenue. Considering the significant number of vacant buildings around Malta – approximately 70,000 – does it really make sense to reclaim land from the sea rather than regenerate existing buildings? Mr Xuereb says there’s need for a

“We should start with an opportunity valuation of our coastal area, to take a look at the depths of our waters and the quality of the sea bed.” – QP Management CEO, Perit David Xuereb 77

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“We should consider a development that makes financial sense, will benefit the country’s economy, attracts investment and contributes to regeneration.” – Entrepreneur Angelo Xuereb

breakdown of the different kinds of vacant properties around in order to attempt to reduce the number – many are second homes, some being derelict buildings within an Urban Conservation Area; there are inheritance properties that get passed on for generations, but because of numerous heirs and many disagreements, they simply remain abandoned; and then there are lots of buildings that are simply not up to standard. “Unfortunately, in the last 10 years, we’ve seen people everywhere turning into developers, with the mentality that you try to fit as many apartments as you can in one block, without good planning, making them unsellable. I think it would make more sense to demolish them, even if they’ve been built within the last 10 years, and start from scratch.” Martin Galea De Giovanni, Chairperson of Friends of the Earth Malta, has a widely differing view on the matter of vacant dwellings, saying that land reclamation is a “fake solution” to problems resulting from bad land management, “since there

“Among the projects submitted are a race track, sports facilities, boutique hotels, a business centre and a floating village.”

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is no justification for it to take place before existing land is planned efficiently.” “The situation has not shifted since 2005, when then-Prime Minister Lawrence Gonzi spoke about exploring the option, as there was still a lot of vacant property. The proposal was shot down by two reports commissioned by MEPA. The first, released in 2005, aimed to find suitable areas for land reclamation and identified two potential spots: Qalet Marku and Xgħajra. Other areas were either too deep or ecologically sensitive, among other factors. The second study, issued in 2007, found that it was not viable to build artificial land using construction debris.” This, Mr De Giovanni continues, also indicates a failure of the construction waste strategy, since the process can also be considered an unsustainable way of getting rid of construction waste. “Stone, a valuable resource, should be re-used, not dumped into a landfill or a reclaimed site. Malta generates considerable amounts of construction debris as a result of irresponsible wastage at the excavation and processing stage. Such a status quo scenario is a sign of incompetence in implementing fundamentally sound measures leading to waste reduction.” President of Nature Trust Malta Vincent Attard echoes these views, adding that over the years, projects which should have had all precautions in place to not degrade the environment, failed miserably, causing irreparable damage to our coastal ecology. “Projects that come to mind are the Ċirkewwa terminal and the Portomaso Marina, for example, where the silt curtains simply failed and in one case we degraded a prime diving site while in the

“As an organisation, we consider coastal reclamation as unacceptable.” – Nature Trust Malta President, Vincent Attard FEBRUARY / MARCH 2014

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“Land reclamation is a fake solution to problems resulting from bad land management, since there is no justification for it to take place before existing land is planned efficiently.” – Friends of the Earth Malta Chairperson, Martin Galea De Giovanni

other, it lead to the destruction of the EU protected posidonia meadows.” From the various known projects proposed to Government, are there ones considerably more damaging to the environment than others? “Malta is surrounded by posidonia meadows close to shore – it is a habitat protected by EU law and offers shelter to many marine biodiversity, acting as a breeding ground for various fish species. It is an asset for the diving tourism industry, fisheries industry and other economic activities. Land reclamation close to shore is most likely to happen in such shallow areas as this would be viable for the contractors involved. Here, there is a high risk of degradation, as well as economic and social damages due to tourism and loss of natural coastline for the public. As an organisation, we consider coastal reclamation as unacceptable.” Perit Xuereb, who admits to being fascinated by land reclamation from an engineering standpoint, but selective and questioning about the idea of it from an environmental standpoint, says there is still the time and opportunity to do our homework properly on the subject. “We should start with an opportunity valuation of our coastal area, to take a look at the depths of our waters and the quality of

the sea bed. We can grade the quality of our sea bed to high, medium and low level – high quality means no-go areas, medium requires an ultra justification and the low quality we’ll consider rather easily,” he explains. “There is lots of information out there but it is uncoordinated or incomplete. We should gather it all and create a map which talks to us about the obvious: if land reclamation were ever feasible, if an investor expressed interest in investing in an offshore land reclamation project, which location would be most ideal to do so? This would guide the investor and the authorities in our country to the most appropriate location.” Lastly, does Perit Xuereb consider it necessary for new parameters to be drafted for building on reclaimed land? “If no parameters are in place before we start, then mistakes will be made. Would we rather have MEPA react to past mistakes or plan for the future? I, for one, would like a MEPA that plans by engaging in various considerations, and because we haven’t done this, there have been serious mistakes in the past because of relatively bad planning on behalf of the authorities or developers. The loser here is not just the developer but also the nation, the people.” cc

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FEBRUARY / MARCH 2014

CC MEET THE ARTIST

Photo by Lionel Galea

“I’m self-taught and fascinated by the beauty of the human body and the infinite ways in which it can be captured photographically.”

Capturing an underwater kingdom Already a familiar face within the local fashion scene, photographer Kris Micallef recently launched REGNVM – his first exhibition and publication of fine art photography in Malta. Sarah Micallef discovers the story behind the ethereal underwater shots.

hereas most local fashion followers are familiar with Kris Micallef, whose fashion photography has appeared in a wide variety of local and foreign publications from Femme, Vamp, Bliss and Money Magazines (Malta) to IN Magazine (Dubai), Make-up Artist Magazine (US) and Tropics Magazine (ZA), this month saw the launch of REGNVM – an exhibition of fine art photography shot underwater, marking a decidedly new and exciting direction in Kris’ work. Kris’ fascination with portraying the human form began at a young age, starting with pencil sketches when he was just six years old and progressing to his true passion:

FEBRUARY / MARCH 2014

photography. “I’m self-taught and fascinated by the beauty of the human body and the infinite ways in which it can be captured photographically,” he says, “I love merging my subjects with their surroundings – be it a building, landscape or even an underwater environment.” He recalls how it was at the age of 18, the same year that he started his architecture course at university, that he first started experimenting with a camera. “At first it was portraiture, which then led me into fashion photography. Since then, I have been commissioned to shoot fashion editorials and campaigns for various local and international magazines.” 83

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“I love merging my subjects with their surroundings – be it a building, landscape or even an underwater environment.” Over the years and through these experiences, Kris has learnt a lot. “I have grown in various aspects. I have learnt to appreciate different kinds of beauty and the fact that what is beautiful in my eyes may not necessarily be beautiful to others and vice versa.” Asked whether there is a recurring theme in his work, Kris maintains that his forte is capturing the subject in a particular environment and mood, attributing his architecture background and distinctive use of light as significant elements in his photography. For Kris, inspiration comes in many forms. He explains, “some of my best work has happened when I fell in love with a particular location that inspired me to come up with a story associated with it. Particular faces have 84

also inspired me in the past.” Having said that, he credits architecture as an enduring source of inspiration, as well as the work of photographers like Richard Avedon, Steven Klein, Mert and Marcus, Guy Bourdin, Helmut Newton and Herb Ritts. Moving on to REGNVM, a project

consisting of underwater portraits of models, gymnasts and dancers photographed over a span of two summers in various bays around the Maltese islands, Kris maintains that it came about as a result of his love for photography and the sea: “I wanted a project that brings the two together”. FEBRUARY / MARCH 2014

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“When the subjects are viewed below the surface of the sea, their movements are different, and REGNVM is set in an underwater environment inhabited by different characters.” Describing what goes into an underwater shoot, Kris explains that preparing the necessary equipment is essential. “I prefer free diving as opposed to scuba diving when shooting models. I like to be flexible and lighter when shooting, mostly because I would need to surface every now and then to direct the models.” Another essential factor is good visibility in the water, with his favourite spot being Crystal Lagoon in Comino. With shoots sometimes necessitating up to an hour in the water, Kris admits that it could get quite tiring, but was great fun nonetheless. Aside from being shot exclusively underwater, REGNVM also boasts another significant characteristic that is relatively new locally, having been funded by the public. Speaking of his decision to have the project crowd funded, Kris explains, “I knew that the project was going to have quite a few expenses and obtaining sponsors from local companies is not easy. After hearing about the concept of crowd funding, I had personally contributed toward helping various artists reach their targets, and figured this was my best shot for putting together my first exhibition and publication in Malta.” Kris set the target at €5,000 and by the end of the campaign had garnered €7,272 towards REGNVM. People who contributed received copies of the book – a high quality publication featuring photographs from the REGNVM series and a narrative by Stanley Borg, fine art prints and postcards. Satisfied with the feedback, he states, “I wasn’t sure what the reaction would be as crowd funding is quite a new concept, especially to the local scene. The experience was great albeit time consuming. I spent several weeks working on the campaign, preparing information and ‘perks’ for contributors and thinking about affordability and feasibility. Pushing it publicly was another challenge, but the feedback was great.” By the end of the stipulated timeframe, the campaign had been shared on various social FEBRUARY / MARCH 2014

“After hearing about the concept of crowd funding, I had personally contributed toward helping various artists reach their targets, and figured this was my best shot for putting together my first exhibition and publication in Malta.”

media platforms and across several countries including Malta, Canada, Brazil, Germany, Spain, UK, Czech Republic, South Africa, Belgium, the Netherlands and Italy. The exhibition and book were launched on 21st February at BLITZ – a beautiful 400-yearold townhouse in Valletta which has been restored to host events of an artistic nature – and is on show for three weeks. It consists of more than 50 pieces placed in various rooms inside the house, grouped according to the story they’re telling. Having previously exhibited his work in Ukraine, the Netherlands, Jerusalem, Ramallah and Brussels, as well as being commissioned to shoot in Libya, Gibraltar, Marbella and Barcelona, Kris maintains that growing up, he never imagined photography would be his career. He recalls, “I was brought up thinking that I should have a standard profession. I had always loved art and once, when a teacher in secondary school asked ‘what would you like to be when you grow up?’ I said I wanted to be an

artist – a cartoonist to be exact. She gave me a strange look and told me it’s better to select a more conventional profession as it’s difficult to make a living out of being an artist. She was both right and wrong.” Asked about where REGNVM fits in within his plan, Kris explains, “Malta has been my playground for the last few years. It has given me the chance to experiment, learn new things and find out what I really want to do in the years to come. I believe this project is another stepping stone in my career.” As for future plans, Kris’ goal is clear: “in ten years’ time I’ll be 35. I’m hoping that by then I’ll be able to tell you that I’ve achieved more of my goals as a photographer and be working even harder on new projects. I’m hoping that I would have travelled a lot more by then, met more beautiful people and captured more beautiful moments on freezeframe.” cc REGNVM is on view at Blitz in St Lucy Street, Valletta until 14th March. 87

Foodies Rejoice As playwright George Bernard Shaw once said, there is no sincerer love than the love of food, and for the foodies among us, we’re always on the lookout for exciting new food trends and combinations. Sarah Micallef looks into what will have your taste buds tingling in the coming months. 01. Healthy Kids’ Meals The health food revolution has hit everyone from mature people who are trying to stay in the best shape they can to parents of young kids who want their children to grow up healthy and strong. Waving goodbye to sugary sweets and fat-packed junk food, parents are hitting out against childhood obesity, and calling for healthier kids’ choices at restaurants. In fact, healthy children’s meals were among the top 10 trends classified in the US National Restaurant Association’s ‘What’s Hot in 2014’ survey. Look out for side dishes of apple and yoghurt as healthy options, with baked fries replacing French fries for healthier dining options for kids.

02. Going Gluten-Free Gluten-free is all the rage in the food world at the moment, and it’s set to continue on into 2014. Another top trend according to the National Restaurant Association survey, gluten-free food is certainly in vogue. From packaged goods and gluten-free brownies to buckwheat and nutritious quinoa variations taking the place of wheat flour, this food trend is not just for the gluten intolerant but for the health conscious too.

03. Nutty for Nuts Nuts have always been a favourite among dieters who are cutting their carbs, due to their high levels of protein and their ability to give a healthy energy boost. While individual servings of nuts and seeds as snacks will remain popular however, nuts are set to make more of an appearance in a wider variety of dishes this year, incorporated into breakfast, lunch and dinner options. Watch out for nutty selections on the menus of your favourite restaurants.

04. Artisanal Pizza As most pizza lovers will tell you, making the perfect pizza is an art. Cheap, oily pizza using low quality ingredients is falling out of favour, making way for artisanal, gourmet pizza using only the freshest, often locally sourced and organic ingredients. Boasting a crunchy pizza base baked in a traditional oven coupled with a menagerie of fresh tastes and flavours, the humble pizza has never looked better.

05. Posh Comfort Food

FOOD&WINE 04.

01.

Upscale versions of comfort foods that are ‘just like mamma used to make’ are rife, both locally and abroad, with a variety of familiar family favourites experiencing a posh makeover using upscale ingredients. Restaurants are putting posh twists on your old favourites, but you can even do it yourself. The next time you’re preparing your favourite comfort food, why not elevate it using some highbrow ingredients for that extra something?

06. Savoury Yoghurts While yoghurts have traditionally been relegated to a variety of fruity flavours that are decidedly sweet and perfect for breakfast or dessert, the next big thing in New York is savoury yoghurt. Comprising a variety of interesting and curiosity-inducing flavours such as carrot, tomato, parsnip and beetroot, this is one food trend that we’ll have to try for ourselves before giving a verdict!

07.

07. Craft Soda and Flavoured Water Ever made your own lemonade? Making your own soda has made it big within the DIY marketplace, appearing everywhere at craft fairs and artisan markets, and taking you back to your childhood days of making lemonade at home. Taking cue from the artisans, restaurants are also catching on, offering their own varieties of craft soda and flavoured water, including some wonderful-sounding combinations like apple, lavender, orange and ginger, banana, passion fruit and cucumber lemon. cc

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CC interview

Innovative banking – combining a financial product with sports What do you get when passion, sports and the banking business collide? The Commercial Courier catches up with Banif Bank Chief Operations Officer Nuno Martins, to find out how Banif succeeded in twinning with one of the world’s most soughtafter brands and sports teams.

he word ‘bank’ can conjure up many thoughts and feelings, sports unlikely to be one of them. They are, after all, hardly the most complementary of subjects. Banif Bank, however, is attempting to do just that, marrying their respected brand with a highly prolific sports team, through the introduction of the Manchester United Credit Card, which is the first of its kind on the market. Banif Bank Chief Operations Officer Nuno Martins reveals that the idea was born off the will to offer something drastically different to customers – “something that combines an attractive financial product with the passion for sports and football – a passion that is universal and crosses age, gender and geography. And as we usually do, we went for one of the best – Manchester United.” The card is a novelty on the island. “We work in a competitive, highly-saturated and monopolised market,” he explains. “And while we offer the whole gamut of traditional financial products that are at par with other local banks, we also try to introduce novel products to the market, and keep up our reputation for alternative and innovative banking.” One of the card’s main attractions is the numerous fringe benefits it offers to its holders that are otherwise difficult to come across, and could easily be rated by Manchester United fans as an experience

Banif client at the Aon Training Complex

that money cannot buy. “One of our clients has just been to the Aon Training Centre to watch the team train. He and his guest also won tickets to watch Manchester United play against Spurs. And we’ll be having more of these surprise chances for our clients, apart from Man United discounts and memorabilia to be won.” Asked about Banif’s strategy behind this scheme, Mr Martins admits that at times, the simplest strategies are the most effective. The success of the Manchester United credit card is partly due to its ability to attract an untapped target market. “The brand is a very strong global one and appeals to the emotions. We launched the card at the Manchester United Supporters Club in Santa Venera to hundreds of avid fans who turned up, hyped up by club legend Denis Irwin’s presence, brought to Malta by Banif Bank specifically to launch the card.” What features of the card would engage people to opt for this card over any other one of their choice? Mr Martins lists its numerous tangible benefits, discounts and offers, and various other less tangible paybacks such as chances to show your

The key benefits of the Manchester United Credit Card from Banif Bank The Manchester United Credit Card gives customers access to exclusive benefits including choosing their own credit limit (standard credit limit is €2,000) and repayment options. In addition they enjoy: • free travel insurance • free purchase protection insurance • insurance and health scheme discounts • Visa global customer assistance services • 10 per cent Megastore (online) discount • 10 per cent Manchester United official membership discount • 10 per cent Manchester United Red Café discount and • 20 per cent Manchester United Museum and Tour discount when booked and paid one day in advance. *Terms and conditions apply.

The Banif team at Old Trafford after the signing of the agreement FEBRUARY / MARCH 2014

CC interview

allegiance to the club at cash points. “As expected, the card is doing very well. The partnership was a business decision rather than an emotional one – we acknowledged its commercial strength and approached MUFC to capitalise on their expertise and a market opportunity,” he explains. “With our Facebook page ‘Manchester United Red Arena – Malta’, we have created a community of fans and customers. The page serves as a virtual meeting place where we discuss team performance, injuries, news, speculative gossip and more. As online strategy goes, we’re one up here too!” It is a respected and highly-valued name in and of itself, in the sports world as well as in retail sectors thanks to its strong merchandise, therefore equating the brands of Manchester United and Banif Bank is, according to Mr Martins, a feather in the latter’s cap. “Banif Bank has built a very strong brand over the past six years and the significance of our new partnership is unquestionable. Brand equity is difficult to measure, but we can safely say that since the announcement of our partnership with Manchester United, it has gone up another notch,” he asserts. It seems pertinent to ask whether Mr Martins is indeed a Manchester United die-hard himself. He says the team was

Denis Irwin launches the card

chosen based on a business rationale, not on emotions. “The bank’s core team that led this project was made of three people and only one is a Manchester United fan – a big fan, I must say. Another is a Liverpool fan. And then me, who’s actually not too much into football.” He admits that it is rather unusual for a Portuguese to not be into football – “we are typically crazy about it. In any case our

passions go towards Portuguese teams: Porto, Benfica, Sporting. But there’s a link here,” he continues. “My family is traditionally supportive of Sporting, and Sporting and Manchester United had very good relations – guess where Ronaldo and Nani came from when they joined Manchester United as youngsters? So although not a fan, I do like Manchester United.” cc

CC international business

Downtown Dubai

Making the Middle East connection As a delegation from the Malta Chamber, Malta Enterprise and the Ministry for the Economy, Investment and Small Business gets ready to head off on a trade mission to the Middle East, Jo Caruana assesses why this region could offer incredible business opportunities for Malta.

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n upcoming initiative is set to put Malta on the Middle East business map. Spearheaded by the Middle East Business Council (MEBC) within the Malta Chamber of Commerce, Enterprise and Industry, and in conjunction with Malta Enterprise and the Ministry for the Economy, Investment and Small Business, a delegation will shortly attend a road show in Dubai, Abu Dhabi and Qatar, with the aim of promoting Malta’s unique attributes and encouraging partnerships between our island and these three dynamic regions. “At the Chamber we are very much in favour of the Government’s strategy that, while still concentrating on our membership to the EU and the opportunities that accompany our membership, we should also spread our

resources to other markets where there is a lot of untapped potential for our exports and services,” says Klaus Pedersen, Internationalisation Manager at the Malta Chamber. “We believe this will definitely attract foreign direct investment into Malta.” This road show will help do exactly that by focusing on the areas where the delegation foresees most potential. After all, there is no denying that the global economy is still struggling and viable prospects need to be sought. “The financial crisis has cut deeper than most people anticipated, yet, through all the economic turmoil, the Middle East and, in particular, Dubai, has retained its position as a forward-thinking business hub,” explains Tonio Casapinta, Chairman of the Malta Chamber’s 93

CC international business Middle East Business Council (MEBC). “The region demonstrates that you need to actively seek alternatives and enable innovation to create growth. Investors in the region have looked out for more quality clients, formed new business alliances and partnerships, and invested in the very best to get the best. It is only through a focused and well-planned approach that they could have achieved such results and their success is encouraging. “Now, with the World Cup tournament going to Qatar and the World Expo going to Dubai, as well as so many other projects in the making, the Middle East is, of course, a good proposition for Malta-based businesses too, and it also ties in very well with the Government’s strategy in this area.”

The road ahead The idea for the road show originally sprang from a study conducted by the MEBC and the Malta Chamber to identify the most attractive countries in the Middle East region for Maltese businesses, as well as the internationalisation activities with the most potential in these respective countries. Once completed, it will action the results of this study and strive to achieve tangible results and opportunities for as many local businesses as possible. Taking off in March, it will be headed by

“Our strengths lie in our position at the centre of the Mediterranean, our multi-lingual workforce, the fact that we are an English-language jurisdiction and our willingness to tread where others do not risk to venture.” – Malta Chamber Internationalisation Manager, Klaus Pedersen Minister Christian Cardona and will also include officials from Malta Enterprise, FinanceMalta, the Freeport Corporation, the Malta Chamber of Commerce, Enterprise and Industry, and the Gozo Business Chamber. Participating companies will also be present, predominantly from

the construction and interior finishes sector, as well as ICT and financial services. And there is no doubt that this sort of international business is vital for Malta’s success and continued growth. After all, the island’s seafaring and trading historical legacy, linked to our strategic position Dubai Marina

FEBRUARY / MARCH 2014

CC international business in the middle of the Mediterranean, has always been a key selling point for us. In fact, the Malta Chamber has promoted Malta in this way ever since its establishment 180 years ago. This philosophy was cemented further when the Chamber set up its Internationalisation Desk a few years back, thus offering added value to members that wanted to internationalise their services. “Since launching in this sector a lot has already been achieved,” says Mr Casapinta. “This has included everything from compiling a database of our members’ global aspirations and studying opportunities for franchising, to establishing various business councils and preparing reports on the countries we want to be targeted. We have also received

appreciative awards from EU institutions along the way.” Additionally, there’s no doubt that Malta has certainly built its reputation as a centre for international trade and investment in the last few years. “EU membership and the euro have supported this unique position,” continues Mr Casapinta. “With this scenario in place, we at the MEBC have been set-up to create a networking concept for our members in the Gulf Cooperation Council countries. “Now we must create visibility for Malta in the region through our knowledge and contacts. And, with the support of the Malta Business Bureau office in Brussels, we have already participated in seminars in the region, and very valuable connections have been established.”

“The financial crisis has cut deeper than most people anticipated, yet, through all the economic turmoil, the Middle East and, in particular, Dubai, has retained its position as a forwardthinking business hub,” – Chairman of the Malta Chamber’s Middle East Business Council, Tonio Casapinta 96

Of course there are challenges to attracting business from the Middle East region, though, including the fact that there is a lack of awareness about what Malta has to offer. However, those pushing this initiative believe our strengths outweigh our weaknesses. “Aside from the fact that Malta is trusted in the international business community, we do have many other valuable traits,” continues Mr Pedersen. “Our strengths lie in our position at the centre of the Mediterranean, our multilingual workforce, the fact that we are an English-language jurisdiction, and our willingness to tread where others do not risk to venture.” For these reasons, there is a vast number of sectors that could benefit from business ties with the Middle East. These include logistics and transport, financial services, English-language teaching, digital media, life sciences, tourism, back office operations, construction and interior finishes, online gaming and gambling, knowledge-based maritime industries, aviation maintenance, the pharmaceuticals sector, ICT and so many more. Of course this isn’t the first time that members of the Malta Chamber will be venturing into the Middle East region with business on their mind – but this is likely to be the most purposeful visit so far. “Yes there is great competition out there from other nationals, but we know that that is matched by incredible potential,” asserts Mr Casapinta. “That’s exactly why we’ll be making repeat visits in the near future, so as to explore the market needs in detail and to discover the niche areas we can penetrate.” Meanwhile, the Malta Chamber and the MEBC will be signing Memorandums of Understanding with the Dubai and Abu Dhabi Chambers of Commerce while on the road show. “We don’t want these documents to end up on shelves gathering dust, but hope instead that this will be the start of vibrant cooperation,” Mr Casapinta says. “It is our duty as a Council and we believe our delegation is strong enough to make its mark. “Along with Malta Enterprise, we are now busy planning one-to-one meetings with key partners in the region, matched through the help of Maltese representatives on the ground and our contacts in the area. “With all of that in mind, we are sure that this visit will be instrumental in ensuring the start of something very successful, followed up by other missions that cater to yet more sectors,” he adds. “There is also so much more in the pipeline, and we look forward to announcing more and more exciting news for the business community once we return from this mission.” cc FEBRUARY / MARCH 2014

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Oil prospecting: who dares wins Promoting Malta as a future hub in the Med for maritime services linked to specialised facilities for repairs and upgrades of oil and gas structures such as support vessels and rigs can look like an impossible dream to the casual reader. As an independent firm with no ties to any industry magnate, PKF is set on doing just that, with a string of international conferences in the bag and a series of new initiatives in the pipeline. Directly investing its own resources in the promotion of the mainstream oil and gas sector since 2012, PKF has garnered among its accolades the co-hosting of conferences in London with OilBarrel.com in December 2012 and October 2013, MasterInvestor in April 2013, and Aberdeen, Scotland in November 2013. The 7th of May 2014 signifies the return of PKF to Oil Barrel’s next multi-national London conference, this time holding two speaker positions dedicated to promoting this nascent industry. Scheduled hot on its heels is the realisation of PKF’s goal to host an exclusive conference for overseas investors in collaboration with an international firm. This conference is set for 16th June in Aberdeen, Scotland. PKF shall be hosting this international oil and gas conference as it believes that with the right backing, the prospects for the local industry are set to flourish. The event is expected to attract upwards of 250 investors from the international forum based in Aberdeen, considered the Mecca of oil and gas in the UK. The preparatory work for this event at a grass-root level is also steadfastly garnering a lot of high frequency local interest, and is fast attracting the support of leading shipping and maritime agencies to join the ambitious venture. A number of government agencies such as Mimcol, Malta Enterprise and others such as the Continental Shelf Directorate were contacted with a view to support the venture and endorse it as a unique platform to attract investment and sustainable jobs. Medserv Director Anthony Duncan has said that Malta could well become a ‘mini North Sea’ if all the oil and gas activity being planned in the Mediterranean takes off. Geologist Dr Peter Gatt has noted that the

Kinga Ward

sector needs to be scientifically assessed in light of new facts and improved drilling technology. The latest seismic study on offshore Area 4 bore encouraging results and even more encouraging in that the Area 4 is not part of any contestation by neighbouring countries. According to media reports, the latest interpretation shows prospective oil resources of about 300 million barrels. One area nicknamed ‘Ħaġar Qim’ is expected to take approximately 60 days to drill in the first quarter this year to depths of 2,500m. Looking beyond our horizons one cannot ignore the massive decommissioning works estimated to reach €35billion at the North Sea which will shortly become a reality. One can reasonably anticipate that once maritime facilities in Malta start functioning, they will be able to win a portion of the massive works that will undoubtedly be created. However, obtaining relevant information, or at least improving our understanding of short-term, operator-specific requirements, is crucial to entrepreneurs desiring joint ventures with supply-chain companies. The aim of PKF is to showcase the Maltese islands as a mini-

Aberdeen that can service other offshore operators in the Med using its revamped maritime facilities. Drilling into the sea bed for oil and gas is a common occurrence nowadays due to the sophisticated technology that is coming on stream and there are a number of countries in the central Med which are actively offering offshore licenses, with some reaping a rich harvest. In conclusion, one trusts that the upcoming conferences in London and Scotland will encourage a new dawn of investment which leads to a future prospect of Malta joining the growing list of oil producing countries. cc

Readers who may be interested to participate and/or sponsor may contact Kinga Warda, Marketing Manager at PKF, an audit and business advisory firm on kwarda@pkfmalta.com PKF Malta, 35, Mannarino Road, Birkirkara; T: 2148 4373/2149 3041; F: 2148 4375; E: kwarda@pkfmalta.com; W: www.pkfmalta.com FEBRUARY / MARCH 2014

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Reduce operating costs through an automated Time & Attendance solution For many businesses, the process of manually inputting timesheets is lengthy and frustrating. Too much time is spent correcting human errors, leading to reduced productivity and an increase in costs. Manual inputting of timesheets also leaves employers vulnerable to ‘buddy punching’ – clocking someone in when they’re not actually there. Biometric Time & Attendance (T&A) solutions are accurate technologies which keep track of user activity in a helpful and reliable manner, and provide numerous benefits for business owners and employers. Biometrics takes unique human physical characteristics and uses them for identification of employee identity and verification. Hand print, finger print and facial patterns are used to identify employees and note the time they enter or leave the workplace. Automated Time & Attendance tracking solutions eliminate errors by creating accountability and transparency. They reduce labour-intensive processing of payroll and help eliminate costly overpayments. Biometric T&A solutions provide robust

reporting and help create a reliable audit trail to simplify compliance tasks. Through an automated T&A solution, manual inputting is eliminated. Workforce productivity is increased as the time taken to input, check and approve timesheets is reduced drastically. Automated employee tracking also increases accountability and reduces costs as unnecessary overtime is eliminated. Curbing fraudulent clock-ins with a manual time and attendance tracking system is nearly impossible. A biometric T&A solution solves this problem as employee timesheets are submitted electronically. Automated Time & Attendance solutions are reliable, easy-to-use and can be integrated directly with a company’s existing payroll solution. This interface allows data such as overtime, hours worked and sick leave to be integrated easily with the payroll software, delivering an efficient employee payroll process. By reducing manual labour and eliminating errors, time and money are saved, and business owners gain peace of mind. cc

Darryl Schembri is an engineer with AIS Technology Ltd, a leading engineering firm with over 22 years’ experience in biometric Time & Attendance solutions. AIS Technology has installed numerous T&A solutions at both private and public organisations. AIS Technology Ltd, BLB903, Bulebel Industrial Estate, Zejtun. T: 2180 3374; F: 2180 3363; M: 9949 0915; E: info@ais.com.mt; W: www.ais.com.mt

Relax in the Kempinski The Spa Kempinski The Spa offers journeys inspired by the European seasons and a variety of rituals and massage therapies to rebalance the mind, body and soul. Drawing on the elemental wisdom of nature, treatments are designed to help restore the body’s natural equilibrium. Guests can discover a wide range of treatments using Elemental Herbology products, while a heated indoor pool, a whirlpool bath, steam bath and three outdoor pools complete the offering. The wellness area covers 28,000sq ft and includes no fewer than 23 treatment rooms and one of Europe’s best oriental hammams, made of Turkish marble, providing both physical and spiritual healing. Guests are also invited to experience the wellness world of ayurveda, an ancient Indian holistic life science. The Ayurvedic Centre is headed by a chef and Ayurvedic doctor, as well as experienced therapists who provide personalised programmes to engage the five senses through pure aroma oils, plant-based products, ancient Indian techniques and nurturing treatments. The Spa also offers a variety of services to help maintain guests’ health, and keep them FEBRUARY / MARCH 2014

looking and feeling great. In addition, the hotel’s sport facilities offer everything guests need to stay in perfect shape, including two tennis courts, a pair of squash courts and a workout room and gym. What more do you need? cc Kempinski Hotel San Lawrenz, Triq ir-Rokon, San Lawrenz, Gozo. T: 2211 0000; W: www.kempinski.com 99

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Where there’s muck, there’s... The Government has just presented the final document of The Waste Management Plan for the Maltese Islands, following several months of consultation with stakeholders. Waste is a pressing environmental, social and economic issue. Increasing consumption and a developing economy continue to generate large amounts of waste – with more effort required to reduce and prevent it. While waste was viewed as disposable in the past, today it is increasingly recognised as a resource; reflecting in the waste management shift away from disposal towards recycling and recovery.

Green Skip Services Ltd has contributed to the development of the waste management scenario in Malta for the last 22 years, through the introduction of new methods of waste collection and waste management. Starting initially as waste collectors with the introduction of wheeled bins and skips, Green Skip Services now offer a vast range of services which include hazardous waste management from analysis to transport, to export and treatment/recovery, for clinical waste, expired medicines and pharmaceutical wastes including cytotoxic material, industrial wastes and chemicals, lab chemicals, oily sludge and contaminated packaging – all this through a ‘one stop shop’ solution eliminating the need to put together a piecemeal solution: the handling of Waste Electrical and Electronic Equipment (WEEE) through the dismantling and therefore the issue of valid recycling certificates for this type of waste, total management of packaging material and the respective recycling certificates offering a solution to the producer to be self-compliant and thus fulfilling the obligation under the Packaging and Packaging Waste Directive and the WEEE Directive. Why is Green Skip different? Because they are operators of Malta’s only privately owned total waste management facility, where waste

is managed by trained employees, because the right waste container is provided for specific waste, where waste is not waste but a resource, concluding that where there is muck, there is a resource. cc Green Skip Services, Administration Building, Ta’ L-Imriekeb, Triq ir-Ramla, Maghtab, Naxxar. T: 2142 2009/10/17; M: 9942 2544; F: 2142 2029; E: sales@greenskipgroup.com; W: www.greenskipgroup.com

It may be a draft but it’s still confidential The risk of printed information falling into the wrong hands remains a constant threat. So while on one hand we may be putting firewalls and passwords on our computers to protect our reputation and information from the risk of identity theft, we may be ignoring the risk of printed matter falling into the wrong hands if not properly disposed of. The U-Recycle Shredding programme allows you to ensure that all your office paper is shredded and recycled, giving you peace of mind that all company documents are properly disposed of.

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How it works U-recycle will provide you with carton containers for paper which fit neatly beneath all office desks. Once full, these are emptied into the provided Lockable 240L wheelie bins which are centrally located in one or more places in the building. On a periodic basis, U-Recycle’s mobile shred truck will come on site and shred all waste paper in the wheelie bins, taking these to their recovery facility for recycling. The shred truck can handle up to 1,000 kilos an hour so the procedure will take minutes. Furthermore, whole files can be shredded and there is no need to remove staples, paper clips or pins.

Apart from the U-Recycle Shredding programme, the shred truck is also ideal for office clear-out sessions within which complete archives can be shredded in minutes. cc Put your mind at rest and ensure you subscribe to U-Recycle Shredding programme by calling us on T: 2157 5575 or visit W: www.u-store.com.mt/shredding

FEBRUARY / MARCH 2014

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Teatru Manoel to stage Mozart’s La Clemenza Di Tito for the first time in Malta Written at the very end of his life, La Clemenza di Tito remains one of Mozart’s most interesting compositions; an opera seria, beautifully created and constructed in the Italianate grand manner. It follows the great Pietro Metastasio’s typical libretto structure, as modified by Caterino Mazzola and chosen by Mozart purposely for its classic qualities in order to please the new Emperor Leopold and entice him to appoint him maestro di cappella. It will be staged for the first time in Malta at Teatru Manoel from 20th to 23rd March 2014 as part of the Teatru Manoel BOV Performing Arts Festival. This production is completely original with set designs based on Piranesi and Michelangelo paintings, costumes designed by Kenneth Zammit Tabona inspired by the elegance and neo-classical lines of the Directoire period, and directed by Londonbased experienced opera director Harry Fehr working together with locally-based Denise Mulholland who produced the original ideas. As the opera is being staged over four consecutive evenings, a double cast has been secured to cover all four performances. The role of Tito is

performed by tenors Peter Davoren and Ben Thapa, the role of Vitellia by sopranos Andriana Jordanova and Cristina Baggio, the role of Sesto will be covered by countertenor David Hansen on two of the nights, alternating with mezzo soprano Sian Cameron. The cast also includes mezzo sopranos Clare Chigo and Annie David Hansen plays Sesto

Clare Ghigo plays Annio

Fredriksson in the role of Annio, sopranos Claudia Tabone and Gabriella Costa in the role of Servilia whilst bass singers Albert Buttigieg and Noel Galea will cover the role of Publio. The opera also includes the Teatru Manoel Opera Chorus, trained by Alexander Vella Gregory, and the Malta Philharmonic Orchestra, under the baton of Damiano Binetti. cc Tickets are available from Teatru Manoel’s website www.teatrumanoel.com.mt or through the booking office by email on bookings@teatrumanoel.com.mt or by calling on T: 2124 6389.

Bajada New Energy – Malta’s market leader in the renewable energy sector Malta’s market leader in the renewable energy sector, Bajada New Energy has been established since 1989. For these past 25 years, we have brought knowledge and experience to the Maltese islands when it comes to clean solar power systems with a secure return on investment. We represent world leading brands in renewable energy to offer first-class solutions for any size of photovoltaic systems, and are committed to finding you the best solution for your budget whether it is a solar system on roofs, facades or open spaces. Yesterday and today – committed to bringing you the best possible service Bajada New Energy employs an experienced and dedicated team to support you throughout the process from project enquiry to installation by qualified installers, all the way to service and maintenance, as well as safeguarding returns. With a unit of over 50 full and parttime employees, Bajada New Energy brings together the best in electrical and mechanical engineers, architects and civil engineers, licensed electricians and 102

qualified installers, all backed by a team of professionals in the operations department for maximum efficiency and prompt response. Bajada New Energy does not only import branded solar systems, but also specialises in the production of stainless steel boilers for solar water heating systems of domestic sanitary water. Solar Systems Ltd production line started in 2003 and takes place in Marsa Industrial Estate. The ISO 9001 certified plant covers an area of 1,500 square metres where the boilers and the insulated

copper closed circuit pipes are processed. The product, from conception to design and manufacturing, is self-sufficiently managed in Malta with mostly EU raw materials. Qualified workers and an international staff allow Solar Systems Ltd to establish its presence with knowledge and professionalism in the solar thermal industry. cc Bajada New Energy Ltd, 42B, Marsa Industrial Estate, Marsa. T: 2180 7123; F: 2122 8955; W: www.bajadagroup.com FEBRUARY / MARCH 2014

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The Cruise & Travel Group® The Cruise & Travel Group is the adopted trade name of three long-established Maltese companies with over 400 years collective experience in the cruise and travel industry. A. von Brockdorff Services Ltd, OF Gollcher & Sons and Thomas Smith & Co Ltd merged their leisure travel operations to offer you top quality holiday brands such as Princess Cruises, Holland America Line, Seabourn, Cunard Line, P&O Cruises, Club Med, Variety Cruises, Intrepid Adventures, G-Adventures, Luftner River Cruises and Uniworld Boutique River Cruises. Operating from the offices of A. von Brockdorff Services Ltd at Airways House in Sliema, knowledgeable and experienced travel consultants will make your booking experience seamless. Cruise in the nearby Mediterranean, Northern Europe, exotic Far East, refreshing Alaska or discover South America on a luxury cruise line. Awaiting you are new ships, inspiring destinations and all at remarkable value. Why not explore Europe on an enchanting river cruise? It’s a very relaxing way to visit some of Europe’s greatest cities. Relax at one of over 100 Club Med resorts spread all over the world. Long haul, short

haul, with family or with friends... there is sure to be a resort that suits you. We also offer amazing small group holidays and tours worldwide to Africa, Australia, Asia, Europe, North America, South America, the Middle East and Antarctica. So if you are the energetic and adventurous type... look no further. Besides, as the American Express Travel Service Partner for Malta and Gozo, and with over 2,000 associate offices worldwide, you will also find dedicated departments specialising in all corporate and leisure travel, incoming groups, conference and incentive, as well as an airline representation team and airport office. Why not make The Cruise & Travel Group your one-stop professional travel shop in Malta and look forward to planning your next trip? cc

The Cruise & Travel Group Level 4, Airways House High Street, Sliema (near HSBC). T: 2122 2999/2133 4051; E: cruise@cruiseandtravel.com.mt; W: www.cruiseandtravel.com.mt

International Libya conference chaired by FIMBank Chairman FIMBank Group Chairman Dr John C. Grech chaired the Libya Trade and Infrastructure Finance Conference in Istanbul, Turkey, on 6th February. The conference was organised by the UKbased event and publishing house Exporta, and presented a cutting edge assessment of the rewards and risks posed by the newly liberalised economy. It also highlighted the overhaul of Libya’s public institutions and private sector and discussed the extensive opportunities offered by the key North African market’s potential as a hub for regional trade. Commenting on the significance of the prestigious event, Dr Grech stated that “Libya’s successful transition and sustainable development hinged on the evolving security situation and the new government’s economic strategy. The conference focused on these key developments and the progress being achieved. It also provided a unique insight by policy-makers as well as senior Libyan public and private sector business leaders.” With regard to FIMBank’s activity in this country, Dr Grech confirmed that “FIMBank has an excellent reputation as well as an

FEBRUARY / MARCH 2014

FIMBank Group Chairman Dr John C. Grech

established record in supporting business in Libya. By means of the important exposure acquired at the conference, FIMBank intends to send the message that it plans to continue fulfilling its role as a facilitator between emerging and developed markets. FIMBank remains committed to increasing access to trade finance products in order to support development in the region.” cc

For further information about the Libya Trade & Infrastructure Finance Conference visit www.exportagroup.com. For further information about the FIMBank Group visit www.fimbank.com

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CC ECONOMY CHECK

Flexible work arrangements: the key to higher productivity, employment and growth Economists Amanda Borg and Alexia Zammit identify how modernised work practices and flexible work arrangements can positively impact Malta’s labour supply, bringing it closer to EU average rates.

Amanda Borg

Alexia Zammit FEBRUARY / MARCH 2014

alta has recently experienced increases in both the level of employment and unemployment. But how can these two phenomena coexist? A country’s labour force is made up of all those actively participating in the labour market – those who are in employment as well as those seeking it. These two categories of people together make up the country’s labour supply and, as a result, if labour market participation

is increasing at a faster pace than job creation, employment and unemployment can grow simultaneously. This situation is more prevalent in countries that face relatively low participation rates, as is the case in Malta. The rates of female and older worker (55-64 age bracket) participation stood at approximately 48 per cent and 35 per cent in 2012 respectively, notwithstanding an encouraging growth corresponding to 10.7

“The latest Regus survey shows that three-fourths of employers interviewed believe that flexible work practices result in real increases in productivity and revenue generation.” 105

CC ECONOMY CHECK

“In the EU-28 member states on average 51 per cent of employees are able to vary their working day arrangements due to family reasons compared to 23 per cent of Maltese.”

and 1.8 percentage points respectively over the past decade. The importance of attracting people into the labour market stems from the fact that, in addition to enhancing an individual’s quality of life, an abundant and skilful labour force attracts investment to a country and consequently has the potential to raise economic growth. Over the past years, numerous measures have been implemented in order to raise the participation rates of both these categories of workers. Tax incentives were offered to mothers returning to employment, child-care centres have been created and after-school programmes developed to attract the former into the labour market. Older workers were offered the possibility to retain their pensionable income even when in employment postretirement age. The gradual increase in the statutory retirement age will also raise the participation of older workers further once the people affected by the 2006 reform begin to retire. As is the case with any objective targeted, the attainment of further results requires greater effort once the initial momentum subsides. Raising labour participation 106

beyond that already registered is one such example. More needs to be done to further increase Malta’s labour supply, in order to converge to EU average rates. Work practices need to be modernised so as to cater for more complex lifestyles through the creation of more flexible work arrangements that may need to be customised to suit the individual’s commitments. Flexible work arrangements span from flexi-time/working time banking, to working a fixed number of hours with some flexibility within the day/week, to the determination of one’s own work schedule with no formal boundaries. An analysis of 2010 Eurostat data on the reconciliation between work and family life illustrates that only 15 per cent of employees in Malta have flexible work arrangements. This is substantially lower than the average reported for the EU-28 member states where flexible work arrangements are enjoyed by 26 per cent of all employees. Flexible work arrangements are more pronounced among female employees in Malta. 17 per cent of female employees benefit from such arrangements, while only 11 per cent of their male counterparts do. This gender discrepancy is not prominent in the other EU member states where work-life responsibilities appear to be more equally shared between partners. Within the older worker category, flexible work arrangements are still at a nascent stage, with approximately nine per cent of employees benefitting from such arrangements in Malta. More recently, a growing trend has emerged for older workers to seek part-time work post-retirement. Flexible work arrangements may allow

for numerous benefits to be reaped by employers, employees as well as the economy at large. The latest Regus survey shows that three-fourths of employers interviewed believe that flexible work practices result in real increases in productivity and revenue generation. This concept is reinforced if flexibility is utilised to invest in one’s education and training. Flexible work arrangements could also encourage more people, particularly women, to enter the labour market since it would enable them to better manage work-life responsibilities. This would raise the country’s human capacity as well as increase families’ incomes. According to the 2010 Eurostat study, this flexibility is more common in the EU-28 member states than in Malta, where on average 51 per cent of employees are able to vary their working day arrangements due to family reasons compared to 23 per cent of Maltese. Adjusting working hours could also alleviate other national problems including traffic congestion. The benefits of flexible work arrangements, particularly among specific categories, are therefore well-documented. The success of such schemes necessitates the involvement of all social partners in order to create the necessary synergies that would leverage the positive effects of such policy intervention. cc Amanda Borg and Alexia Zammit are economists at E-Cubed Consultants Ltd. Amanda specialises in social investment while Alexia’s area of specialisation is EU policy. www.ecubed-consultants.com FEBRUARY / MARCH 2014

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