The Commercial Courier February/March 2015

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THE COMMERCIAL/58

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

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Industrial excellence Farsons’ contemporary brewery

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE THE MAJOR EU FUNDED PROJECTS UNFOLDING IN 2015 / A LOOK AT MALTA’S DECREASED UNEMPLOYMENT RATE / FOREIGN MINISTER GEORGE VELLA ON THE PRECARIOUS SITUATION IN LIBYA / GAMING INDUSTRY FIGURES WITH THE MALTA GAMING AUTHORITY CHAIRMAN / SHADOW MINISTER FOR THE ECONOMY CLAUDIO GRECH’S TAKE ON THE LOCAL ECONOMY / ŻFINMALTA ARTISTIC DIRECTOR MAVIN KHOO ON THE FUTURE OF DANCE IN MALTA / THE LATEST BUSINESS NEWS






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style review

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75 LOGISTICS

OVER €100 MILLION WORTH OF EU FUNDED PROJECTS TO BE COMPLETED AND TO COMMENCE IN 2015

LOGISTICS INDUSTRY THRIVES AS IMPORTS INCREASE BY OVER €600 MILLION IN ONE YEAR

Sarah Micallef discusses the EU funded projects set for completion and commencement in 2015 with Parliamentary Secretary responsible for EU funds Ian Borg and Shadow Minister for EU and Foreign Affairs Roberta Metsola.

Martina Said speaks to local logistics industry leaders as the industry continues to move swiftly to accommodate the ever-growing demands from a range of business sectors.

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38. 38 DESIGN TRENDS

87 INTERVIEW

AN INDUSTRIAL MASTERPIECE

OVER 8,000 PEOPLE WORKING IN THE GAMING INDUSTRY IN MALTA

Jo Caruana speaks to the experts about the issue of unemployment in Malta, and looks into what the future will hold.

In light of Farsons Group’s transformation of its landmark site in Mriehel, Martina Said speaks to Alberto Miceli Farrugia, one of the architects responsible for the striking new brewery on the Farsons estate.

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‘THERE IS ONLY ONE LIBYAN EMBASSY IN MALTA… AND THAT IS THE ONE OPERATING IN TA’ XBIEX’

‘MALTA’S ECONOMY IS STABLE AND RELIABLE, BUT THERE ARE AREAS OF CONCERN’

UNEMPLOYMENT DOWN TO 5.9 PER CENT

Foreign Affairs Minister George Vella speaks to Sarah Micallef about Malta’s role in the political unrest and violence in Libya, and its effect locally.

Martina Said speaks to newly-appointed Shadow Minister for the Economy Claudio Grech about what the future holds for Malta’s economy and the Opposition’s take on the contentious citizenship programme.

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Executive Chairman of the Malta Gaming Authority Joseph Cuschieri discusses his optimistic outlook for the local gaming industry and his aim to bring Malta’s reputation and performance in the sector to the top of the global league with Jo Caruana.

102 MEET THE ARTIST A LIFE OF DANCE Sarah Micallef meets internationally renowned dancer and artistic director of recently set up national dance company ŻfinMalta Mavin Khoo.

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

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

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ON THE COVER Detail from the exterior of Farsons Brewery. Photo by Kurt Arrigo.

Malta chamber’s silver collaborating partner

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CC Editorial

Government partnering with business and enterprise Private enterprise and Government are two sides of the same coin. The Malta Chamber of Commerce, Enterprise and Industry has maintained this numerous times, and it is with great satisfaction that it notes that this is widely accepted as evidenced by the progress in the way collaboration is carried out between these two important players.

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n the last budget, Government announced an unprecedented number of public private initiatives as well as a predisposition in favour of new such initiatives. To this end, the Malta Chamber was particularly pleased, as the concept of ‘Government partnering with business and enterprise’ is a recurrent theme in the Economic Vision for Malta 2014-2020, which the Malta Chamber published last year. As the main promoter of the national and private sector interests, the Malta FEBRUARY / MARCH 2015

Chamber has, in fact, consistently believed in the merits of rendering Public Private Partnerships a more widespread practice in the Maltese islands. This is particularly so in the context of Malta being a small and resource-hungry nation which needs to focus its resources towards those productive and economic sectors that will leverage the maximum opportunity and gain. The continuous challenge faced by both entrepreneurs and Government is to ensure agility through smallness.

“In the past months, on behalf of the private sector, the Malta Chamber has been active in recommending a number of areas that are suitable for PPPs.”

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CC Editorial In the past months, on behalf of the private sector, the Malta Chamber has been active in recommending a number of areas that are suitable for PPPs. The recommendations include collaborations between Government and private enterprise in areas such as healthcare services, institutional structures, sports and leisure amenities, environmental and agriculture installations, transport and social infrastructure. Public Private Partnerships work because they balance the strengths and weaknesses of both sides of the partnership. In this way, new projects and initiatives that would otherwise have no chance of seeing the light of day are rendered viable and possible. This is important especially in the light of rapid economic development – both locally and abroad – which increases expectations of businesses and citizens for more and better services from Government. Public Private Partnerships are also

beneficial because they contribute towards reducing the Government share in the economy – a statistic by which Malta stands at the higher end of the scale by international standards. In doing so, PPPs are conducive towards reducing the tax burden for citizens and business. It is with great satisfaction that the Malta Chamber notes that Trade Malta, a Public Private Partnership with Government, will carry out services related to external trade promotion as suggested in the Chamber’s Economic Vision. The Malta Chamber believes in the potential benefit to business and the macroeconomy when the private and public sectors join forces, not least in this case wherein an entity will be established and dedicated to help local companies improve their export readiness. This new entity will be entirely driven by the private sector with the support of national resources. The setting up of this PPP signals a

show of confidence in the Malta Chamber by Government. It is with pleasure that the Chamber notes how Trade Malta originated from a Chamber proposal to Government and is now coming to fruition. The services available to businesses in the field of Internationalisation will undoubtedly experience a quantum leap. The Prime Minister had words of praise for the work of the Malta Chamber during the launch of Projects Malta, which took place at Exchange Buildings in February. He said that through such partnerships, private enterprise could venture into sectors that until now were regarded as exclusive Government territory. The Malta Chamber looks forward to operations at Trade Malta gathering momentum for the benefit of the entire business community. Trade Malta will certainly serve as a worthy example of a successful PPP in our country for numerous other partnerships to follow. cc

“It is with great satisfaction that the Malta Chamber notes that Trade Malta, a Public Private Partnership with Government will carry out services related to external trade promotion as suggested in the Chamber’s Economic Vision.”

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Over €100 million worth of EU funded projects to be completed and to commence in 2015 Since accenssion to the European Union, EU funds have significantly contributed towards Malta’s economic growth. Sarah Micallef breaks down the EU funded projects set for completion and commencement in 2015, and speaks to Parliamentary Secretary responsible for EU funds Ian Borg and Shadow Minister for EU and Foreign Affairs Roberta Metsola about their impact on Malta and its people.

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he main target in relation to EU funds in 2015 and beyond, according to Parliamentary Secretary responsible for EU funds Dr Ian Borg, is their allocation into significant projects that are completed on time. “We want to focus on the implementation of projects

and avoid having a vacuum of available funds, as was the case in 2007-2008 and the first half of 2009. Our rate of absorption currently stands at 78 per cent – it was 30 per cent in March 2013 – and our aim is to raise that to 100 per cent by the end of 2015,” he says.

Diagram by Nicholas Cutajar @ Content House

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Shadow Minister for EU and Foreign Affairs Dr Roberta Metsola maintains, “EU membership and EU funds have changed the face of the country and boosted our economy immeasurably, be it through tourism generating projects such as the National Aquarium, programmes that ensure better work for youths, projects that help restore our historical sites, projects that allow for new road networks, health centres and job opportunities.” Of the EU funded projects scheduled to be completed in 2015, €15.5million have been allocated to three projects within the health sector, starting with the General Hospital in Gozo, which will receive €3.6 million from the European Regional Development Fund (ERDF) for new equipment. A further €3.4 million from ERDF will go towards modern equipment for screening, while €8.4 million is to be invested in two new halls at Mater Dei hospital, housing 68 beds. The largest investment within the sector however is directed at the Oncology Centre at Mater Dei Hospital, which will have benefited from around €40 million from ERDF and is set to be completed this year. Dr Metsola considers the project to be particularly noteworthy, explaining, “the new Oncology Hospital finally offering full services to patients is one project worthy of mention. It is a project that will lead to better, specialised healthcare and jobs in Malta. The Oncology Hospital will be the beacon of hope for thousands of patients who go through the hardship and challenging path of treating cancer, and is a huge credit to the previous administration and all the public officers who conceptualised and funded the project.” Further EU funded projects to be completed in 2015 comprise €8 million toward creating better quality of jobs, in the form of the Aviation Park in Safi (receiving €3.6 million from ERDF), with the remaining €4.4 million going toward the Digital Hub next to the Life Science Park. Additionally, €3.5 million from Cohesion Funds 2007-2013 will be invested in a new drainage system for Bahrija, while the Cittadella Masterplan in Gozo, financed by ERDF, will have benefitted from around €12 million once it is completed this year.

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“EU funds are already helping initiatives such as the Youth Guarantee but we will be sustaining that by injecting further funds into ETC to promote popular schemes such as the Employment Aid Programme (EAP) and the Training Aid Framework (TAF) that can stimulate growth and our overall economic growth.” – Parliamentary Secretary responsible for EU funds Dr Ian Borg

Interventions in Mdina amounting to €1 million from ERDF will also be finalised in 2015, comprising restoration works on the bastions and Bieb il-Griegi, the installation of shelters for horse carriages (karozzini), as well as the installation of railings for public safety at the surroundings of Mdina ditch. Further restorations works are also to be carried out on parts of Villa Francia in Lija, on the timber ceiling in the Sacra Infermeria at the Mediterranean Conference Centre (€500,000) and on the Senglea bastions (another €500,000). In addition, €6 million in funds from the ERDF will also go towards works on rural roads, with works on 12 ta’ Mejju Road that connects Zebbug to Rabat, and Panorama Road from the outskirts of Siggiewi to Hagar Qim Temples in Qrendi scheduled to be completed this year. Other EU funded projects concluding in 2015 include the National Flood Relief Project and a Digital Promotion Campaign in Gozo, which received around €270,000 of EU funds under the ERDF. Moving on to projects commencing in 2015, this year will see the launch of the SME Initiative, which will benefit from €15 million targeted towards technical assistance for innovative start-ups and SMEs, scheduled for mid-February 2015. Another project being launched this month is that of the LEADER Development Strategy, which will receive €6.8 million EU funds for the 2014-2020 period – an increase of €2.8 million from the 2007-2013 programming period.

Of the EU funded projects scheduled to be completed in 2015, €15.5million have been allocated to three projects within the health sector. 14

Parliamentary Secretary Ian Borg visiting the Oncology Centre site. Photo: DOI - Jeremy Wonnacott

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CC cover story The forthcoming period 2014-2020 will also see an allocation of €132 million funds targeted toward the strengthening of human resources and productivity, in the form of projects focusing on employability, inclusive society, higher education and life-long learning to be carried out during the next seven years. Apart from that, allocation of funds from ERDF for the Programme ItaliaMalta 2014-2020, aimed at reinforcing sustainable growth at cross-border level

“I hope that Government will work harder on improving Malta’s transport and road network this year. We learned recently that the Maltese spend an average of 52 hours a year stuck in traffic – at a huge economic cost. The gridlock must be addressed.” – Shadow Minister for EU and Foreign Affairs Dr Roberta Metsola

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On-site visit to the Mdina bastions, which will form part of the restoration work in Mdina. Photo: DOI - Clifton Fenech

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The restoration of Casino Notabile forms part of the €1 million interventions in Mdina. Photo: DOI - Jeremy Wonnacott

covering the Maltese islands and several regions in Sicily, will see an increase of €14 million when compared with the same programme for the period 2007-2013. While asserting that all projects will signify a difference to Maltese lives, Parliamentary Secretary Dr Ian Borg believes that the Oncology Centre is among those that will have the most significant impact. Yet, “so will our efforts to improve employability, as are those interventions aimed at improving and restoring historical sites. The investment being put into the University campus is also a significant one and it will not only change the shape of it but it will also open new doors for students willing to delve into further research and innovation,” he continues. Looking towards the future in relation to the impact of EU funded projects on Malta’s economic growth, Dr Borg highlights Government’s aim to meet EU 2020 targets. Affirming that the use of ICT, research and innovation will open up new opportunities, he believes more needs to be done when it comes to energy efficient schemes, for which plans are being made. “On top of that,” he continues, “creation of jobs will help us contribute towards economic growth. EU funds are already helping initiatives such as the Youth Guarantee but we will be sustaining that by injecting further funds into ETC to promote popular schemes such as the Employment Aid Programme (EAP) and the Training Aid Framework (TAF) that can stimulate growth and our overall economic growth.” On her part, Dr Metsola believes that more needs to be done to address over-burdensome regulation and cutting of red tape that can prevent Maltese businesses, particularly SMEs, from applying for EU funding. “It is an issue that I have taken up on a local and on a European level, and one that I will continue to push. We must make it easier to access the funds we have available,” she says. “I also hope that Government will work harder on improving Malta’s transport and road network this year. We learned recently that the Maltese spend an average of 52 hours a year stuck in traffic – at a huge economic cost. The gridlock must be addressed.” In relation to SMEs, Government also launched ‘EU Funds for SMEs’ in February, an SME Initiative that will see €15 million of ERDF funds injected into local banks to help SMEs. 845 SMEs are expected to benefit from these funds, according to Dr Borg, whilst “the expected investment to be leveraged by this financial instrument could go up to at least €60 million.” cc 18

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Unemployment down to 5.9 per cent The latest Labour Force Survey shows that Malta has achieved a decrease in the unemployment rate to 5.9 per cent – that’s in comparison to an average of 10.1 per cent across the EU. Here Jo Caruana delves into the issue of unemployment to ask experts for their opinions on what we’re getting right, as well as what the future will hold.

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nemployment is going down. In fact, in January this year, Government announced that the island has achieved its 2020 target on employment – five years in advance. How has success come so early? “The fact that employment and job creation figures are moving in the right direction is certainly true,” says Chamber president David G. Curmi. “We attribute this to the outcome of a number of initiatives and policies that have come into force over the last decade, as well as measures introduced more recently. Schemes to increase female participation in the labour market, life-long learning, reskilling and on the job training programmes, as well as incentives to discourage long-term unemployment all

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played a significant role.” And that success looks set to continue. “In the recently issued European Commission Winter Economic Forecast, the labour market in Malta is clearly projected to continue performing well in the short-to-medium term, with a two per cent growth per annum. Unemployment should therefore remain in check and below the six per cent mark.” Furthermore, there has also been an overall increase in economic activity in most sectors, as well as the development of new sectors over the last decade, especially when compared with neighbouring countries and regions. “That naturally lends itself to the creation of new jobs too,” Mr Curmi says.

There has also been an overall increase in economic activity in most sectors, as well as the development of new sectors over the last decade, especially when compared with neighbouring countries and regions. 21


CC cover story Echoing that thought, specialised social investment economist Amanda Borg, from E-Cubed Consultants Ltd, explains that while, internationally, job creation is not normally matched by the number of people seeking employment, Malta has seemingly achieved a nearbalance. “2014 saw a strong demand for labour,” she details. “According to the Labour Force Survey, the private sector created 4,700 jobs while, in the public sector, employment rose by around 1,600 jobs.” This puts Malta on a very positive footing internationally. The country currently shares the third-lowest EU unemployment rate with the Czech Republic. The good news on a wider scale is that there have been improvements elsewhere, too. “When compared with 2013, the EU unemployment rate in December 2014 fell in 24 of the member states, remained stable in one and increased in three,” explains industrial relations and human resources consultant Gejtu Vella. “However, although our unemployment levels are very positive, we shouldn’t be complacent. Every effort should be made to release unproductive workers from the public sector and provide compulsory tailor-made training to the unemployed. The private sector should be at the very forefront of creating more productive and lucrative employment opportunities.” So, with that in mind, who are the 5.9 per cent of people who make up that group of unemployed? And what can be done to encourage them into the workforce? “Similarly to every economy, Malta has two types of unemployment: frictional and structural,” says ETC chairman Clyde Caruana. “The latter accounts for the biggest share of the unemployed and these are people who do not own the skills required by the market. The former are individuals in transition from education to work, or from job to job.

“We welcome recent announcements that the unemployed who want to invest in themselves will be given all the assistance possible, but those who refuse such help, will be denied any further assistance.” – Malta Chamber President David G. Curmi 22

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CC cover story “The structurally unemployed basically own little or no skills at all. In addition, their expectations are beyond what they can achieve. Hence, their reservation wage is by far higher than what the market has to offer. I believe there is work for them but most prefer to remain idle because, as explained, their expectations exceed what they can really achieve.” Ms Borg also believes that this is a problem. “It’s quite paradoxical that young, lower-skilled workers often refuse low quality jobs with poor working conditions,” she says. “In theory, if such jobs had attractive working conditions, the majority of these persons would become employable, but one must factor in business affordability. “This is precisely the reason such jobs are being occupied by foreign workers who are willing to accept them in the light of lack of jobs available in their home countries.” Ms Borg also stresses that this is where training becomes a potential solution to closing the gap between the demand for productive human capital sought by employers, and the expectations of better pay and wages requested by the unemployed.

“In 2014 the private sector created 4,700 jobs while, in the public sector, employment rose by around 1,600 jobs.” – Economist Amanda Borg

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“Every effort should be made to release unproductive workers from the public sector and provide compulsory tailor-made training to the unemployed.” – Industrial Relations and HR Consultant Gejtu Vella

“Besides enhancing an individual’s quality of life, an abundant and skilful labour force attracts investment to a country and, hence, has the potential to raise economic growth. It is also important that such training instils work ethic, life skills and sustainable aspirations to optimise the performance of the labour market.” Thus, measures aimed at encouraging or requiring individuals to train themselves and accept jobs that offer fair financial reward should also be regarded positively. In addition, Mr Caruana is also keen to see the development of the Government’s ‘make work pay’ policy. “We need to support people who are in work so as to keep them in work,” he says. “The introduction of free childcare, the tapering of social benefits and now the introduction of the in-work benefit, together will strengthen the concept of making work pay.” Backing this up, Mr Curmi also believes that such measures are conducive to a change in culture. “This will definitely 26

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Photo: DOI - Clifton Fenech

“We need to support people who are in work so as to keep them in work.” – ETC Chairman Clyde Caruana

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encourage individuals to seek productive work rather than rely on social benefits,” he comments. “In fact, the Chamber welcomes recent statements made by the Prime Minister and the Minister of Finance that those unemployed who wish to invest in themselves will be given all the assistance possible but those who refuse such help will be denied any further assistance. “As a responsible organisation, we believe that the welfare state is there to protect the vulnerable and those who really require the assistance. Every cent of public money that is spent on benefits should be accountable to those who are paying for these benefits; namely, workers and businesses.”

And finally, what should be done about the genuine cases of unemployment; is it feasible to expect them to join, or re-join, the labour market? “We need to develop a better understanding of the lack of success in this process and what is required,” says Mr Curmi. “We need to carefully identify the causes impeding these individuals from securing employment and, if this is found to be linked to a lack of skills, or due to higher expectations, or the lack of demand for their skills, efforts should be made to guide them in a better way. “Once we know all of that, then we can hope to close the gap even further – which is obviously something we all want,” he concludes. cc 29


CC INTERVIEW

‘There is only one Libyan Embassy in Malta… and that is the one operating in Ta’ Xbiex’ With political unrest and violence spreading, and fundamental Islamists gaining ground in the Middle East and North Africa – including in Libya, Foreign Affairs Minister George Vella speaks to Sarah Micallef about the precarious situation, its effect locally and Malta’s mediatory role in proceedings.

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the many businesses that have suffered as a result of the situation. “We have been advised that it is not safe to be in Libya, and have even recalled our diplomatic staff. Anybody who is going there now is going on his own responsibility. I understand the concerns of the business community, and have fairly regular meetings with the Malta Chamber and the Libyan Chamber of Commerce. I feel the responsibility to contribute as much as possible to try to make the situation better on their behalf, but also in the interests of the economy of the island.” Having said that, he considers the political standpoint to be his primary focus, and while empathising with businesspeople who he feels, locally, are “bearing the brunt of the situation”, he maintains that it would be presumptuous to advise them in relation to their business operations in Libya for the foreseeable future. “The only advice I can give is that first and foremost they have to be careful not to get harmed, and if their business is in areas which are not all that affected, it’s up to them. But from what I understand, most of the business was concentrated around Tripoli and the environs.”

Photos by Matthew Mirabelli

he situation is very precarious,” Foreign Affairs Minister George Vella states, in no uncertain terms, speaking of the current state of affairs in the Middle East and North Africa, and Libya in particular. Whereas there have been a few positive signs of late, he maintains, conflicting reports across different regions make it difficult to tell where things stand, though “there is a very faint light at the end of the tunnel… we cannot give Libya up as a lost cause or a failed state.” Still, the longer the fighting goes on, the more precarious the conditions get. “The worst thing that is happening is that while the situation is lingering, other elements, like the Islamist forces, are actually penetrating the area. And the longer it takes, the more time they have to establish themselves in various parts of Libya.” Viewing the situation from a local standpoint, with all Maltese advised to leave the country, it leaves a significant number of local businesses with a presence and commitments in Libya in serious difficulty. Drawing on Malta’s long relations with Libya, Dr Vella acknowledges that business links with the country provide for “a large chunk of the economy”, and considers it tragic for

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“There is a very faint light at the end of the tunnel… we cannot give Libya up as a lost cause or a failed state.”

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“We have been advised that it is not safe to be in Libya, and have even recalled our diplomatic staff. Anybody who is going there now is going on his own responsibility.” Moving on to the diplomatic issue that has arisen in Malta in relation to the issuing of visas for Maltese visiting Libya, and asked whether Government has control over the visas being issued, Dr Vella maintains, “visa issue is specifically and totally the responsibility of the issuing state. The only control that the host country has is to authorise a diplomatic mission to be in a position to issue visas. With Libya, it has always been an easygoing situation. The problem arose when we had two persons each claiming to be the legal representative of the country.” With two entities claiming to be legally representative of the Libyan people, he makes it clear that there is only one recognised Libyan embassy in Malta. “No country can accept two embassies from the same country. We do not recognise the office at the Balzan embassy. The legitimate, recognised embassy is the one in Ta’ Xbiex which is run by Al-Habib Al-Amin.” He goes on to explain the sequence of events leading up to the current situation, asserting that since the 2011 revolution, Malta has not had a Libyan ambassador, 32

instead making do with a chargé d’affaires without difficulty. That is, until a note verbale from the Tripoli government detailed that Malta no longer recognises Huseen M. M. Benown, who was the chargé d’affaires at the time (and to this day is an official working within the Ta’ Xbiex embassy) and asked that Hussin Musrati be recognised as representing the Tripoli government. Immediately following this, a note verbale from the government in Tobruk, which is considered the legitimate representative of the Libyan people by all international organisations including the UN and the EU, arrived, stating that Mr Musrati does not represent a legal government, and requesting that Mr AlAmin be acknowledged as the legitimate representative of the legitimate government in Tobruk. “We decided to follow in the lines of the European Union and the United Nations – that is the only democratically elected government that we know of,” Dr Vella states. Indeed, it was precisely this scenario, comprising two entities vying for power, which was the reason behind Maltese

diplomats being withdrawn from Tripoli. “They were being pressurised to recognise one over the other, and we could not go against the grain and do what no other country in the EU did by recognising the government in Tripoli. We had an embassy which was functioning in a city which was under the control of the government we don’t recognise, and recognising the government which was miles away in Tobruk.” Going back to the issue of the two chargés d’affaires in Malta, Mr Vella explains that difficulties arose when, upon Mr Musrati’s diplomatic status being revoked, he contended the decision. “When you withdraw someone’s diplomatic status, he still enjoys a certain amount of immunity between that time and the time he leaves. This has created a problem because he is staying – and not only staying, but occupying the embassy in Balzan.” This created problems with the chargé d’affaires representing Tobruk, who, Dr Vella maintains, wanted Government to intervene and extract him from the embassy. Making reference to the tragic loss of a FEBRUARY / MARCH 2015




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“I understand the concerns of the business community, and have fairly regular meetings with the Malta Chamber and the Libyan Chamber of Commerce. I feel the responsibility to contribute as much as possible to try to make the situation better on their behalf, but also in the interests of the economy of the island.” police officer after shots were fired from the Libyan Embassy in London during a demonstration in 1984, the Foreign Minister asserts that a decision was made not to involve the police. “The last thing I wanted was to have a confrontation between the Malta police and the people in the embassy. We convinced the Tobruk government to ask Mr Al-Amin to declare that he is working from a different embassy.” So are both parties issuing visas? “Mr Musrati threatened that people who want to go to Tripoli will not be allowed to enter the country if they do not present a visa issued by his authorisation. On the other hand, Mr Al-Amin made it clear that the only valid visas would be those issued by his office,” Dr Vella maintains. Despite Mr Musrati’s attestations however, Dr Vella continues, “I have not been approached by anybody telling us that Mr Musrati is issuing visas. To my knowledge, he is not issuing visas, but I stand to be corrected. I do not know of any FEBRUARY / MARCH 2015

Maltese who tried to go to Libya and were refused entry.” Moving on to the national security angle, does the Foreign Minister feel there is a potential threat to Malta? Is the country exposed or at risk of a terrorist attack? “We are always exposed,” he asserts. “Nobody can say with certitude that there cannot be a threat to Malta. We are conscious of what is happening and we are definitely not taking it lying down. I am sure that our intelligence services, with their limitations, are sharing their information and keeping in close contact with larger countries like Italy and the UK.” Having said that, Dr Vella maintains, “it would be insane if we were to say we were not threatened, that it’s far away from us – that would be suicidal. We are keeping our eyes open and we have to react immediately should there be a change in circumstance… in a multi-ethnic community, security services have got to keep their eye on

suspicious behaviour and be aware of who is coming in and going out, which is not easy. Therefore nobody can say we are 100 per cent covered, but at the same time, there is no cause for alarm or panic.” From a European standpoint, while Dr Vella believes that the EU is right in not officially recognising the government in Tripoli, he states, “not recognising does not mean not speaking to. I can assure you that information and entreaties from our side to the other side have been flowing from the very beginning. While we say that we are recognising the parliament in Tobruk, we are not ignoring the existence of an entity that calls itself a government in Tripoli. Even Head of the UN Support Mission in Libya Bernardino Léon himself, now that he is speaking to representatives of the GNC, has at no point recognised it as a government entity.” “We are officially recognising the Tobruk government and cannot officially recognise 35


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the Tripoli government as the government representing the Libyan people, but we are keeping contact with elements in that entity to exalt them to cooperate with Bernardino Léon and discuss with the government in Tobruk,” he continues. In this sense, does Dr Vella feel that Malta can act as mediator between the different factions in Libya? “We are up to our chin in contacts,” he states. “We talk to Bernardino Léon regularly and take part in discussions, having just come from Germany, where despite the talks being about Greece, we were trying to nudge Germany to be more concerned about Libya and possibly even participate, knowing that the attention has been focused on Ukraine. Within the Foreign Affairs Council, I have been hammering on the importance of Libya – we should not forget Ukraine, but we do not have one problem, we have two – one in the east and one in the south.” Having said that, he continues “we do not have the resources, intelligence and military force of countries like Italy or France, which will definitely be 36

taking a much more important role in that sense. Asked whether the UN should play a more active role in relation to what is happening in Libya and in other countries such as Syria and Iraq, Dr Vella asserts, “definitely. It is the only international organisation which can launch legitimate mediation. It could play a military role as a peacekeeper. There is no way that there could be any invasion of Libya. It has to be the Libyans themselves, who would by that time, have come to a government of national unity, who would ask for help from abroad. At the moment, it is not for foreign countries to go into Libya to put things right. That would create havoc and bring about a civil war.” Yet he has one word of warning. “Libya is so big that, unless there is real cooperation from the inside, and there is an honest decision to put down arms and talk peace, no UN force, however large, can quell the problems. The UN can, and should, play an important role, but the dynamics and implementation is a huge issue.” cc

“I do not know of any Maltese who tried to go to Libya and were refused entry.”

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CC design trends

An industrial masterpiece In recent years, Farsons Group has expanded and transformed its landmark site in Mriehel to meet modern demands, making its production plant more efficient and more aesthetically poignant. Martina Said meets Alberto Miceli Farrugia, one of the architects responsible for the design and construction of a shiny, new brewery on the Farsons estate.

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onsidered a landmark both within the industrial estate of Mriehel and on the island at large, the Farsons Group’s iconic building is something of a father figure to other buildings in the industry and beyond. It stretches extensively along the perimeter of the industrial estate, where for years it stood in solitude surrounded by vast fields and little else, until residences and other buildings encroached around it, forming the crowded industrial estate we know today. And yet, although encircled by numerous large factories and office blocks, it still holds its own as a prominent industrial building. It set the standard for other company projects that followed, including the brand new brew hall completed in 2012. Alberto Miceli Farrugia from Architecture Project (AP), one of the architects involved in the construction of the new brewery together with Danica Mifsud, Charles Sciberras and Greta Caruana Smith, says that in the past,

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industrial enterprises put great emphasis on the design of their headquarters, especially so during the industrial revolution when the introduction of mass production allowed society to aspire towards a better future. “The buildings associated with well-known companies were part of the revolution, and locally, Farsons was one of the first major private enterprises that understood the importance of linking the identity of a company to the image of its building.” Established in 1928, the original brewery was situated in Hamrun. The company moved to its new premises in Mriehel in 1950. It was virtually alone for a number of years, and was especially recognisable by its tower and semi-circular brew hall. “The old brewery itself is an icon – representative of the whole building and associated with Farsons and the beer it produces,” says Alberto. “The new brewery forms part of a long-term strategy for Farsons to upgrade its production FEBRUARY / MARCH 2015


CC design trends facilities, from the brewing of beer to the fermentation, bottling and distribution process. This will liberate the old brew hall for other uses. Because of new technology, hygiene regulations and the stresses that the plant has suffered over the years, it was considered appropriate to construct a new brewing plant, which will also allow for greater levels of production.� The team of architects from AP worked alongside Farsons’ Project management team, led by Paul Micallef, on this endeavour. Because of its symbolic importance to

Farsons, the old brew hall will eventually form the heart of a new cultural experience which the company is planning, and the public will be able to visit and witness the company’s heritage first hand including the original copper brewing vessels. They were last used in 2012, replaced by the new stainless steel kettles which will increase capacity and productivity, and ensure quality standards for the long term. In their designs for the new brew hall however, the architects were careful to create a link between old and new, past and present.

Photos by Kurt Arrigo and Luis Rodriguez Lopez

Internally, the brew hall retained its inspiration from the 1950s building itself, but with an art nouveau twist.

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CC design trends

Alberto explains the layout of the Brewery complex – behind the old brew hall one finds the original fermentation vats. The new brew hall is located at the other end of the building, facing what will eventually become a new plaza at the heart of the estate. It sits next to the process block, built in 1984, a building recognised internationally for its environmental sustainability, beside which is the 1970s bottling and packaging hall which will shortly be replaced by a new facility currently under construction. Bottles and cans are then moved to a recently completed logistics centre for distribution. The new brew hall is home to the first part of the brewing process: the milling, mashing of grains and removal of unwanted skins, lautering, boiling and cooking process, after which it leaves the new building and enters the process block next door for cooling and mixing with yeast, until it reaches the fermentation vessels where it is matured, filtered and later packaged.

“The new brewery is predominantly split into two sections – the upper and lower brewing halls, which are covered in copper, reminiscent of the old copper vessels that are now made of stainless steel, and the office and laboratory wing, which sits above the stores for special malts and grains.”

“The new brewery is predominantly split into two sections – the upper and lower brewing halls, which are covered in copper, reminiscent of the old copper vessels that are now made of stainless steel, and the office and laboratory wing, which sits above the stores for special malts and grains. We wanted to maximise views into the brew hall itself, similar to the old hall, because it is the heart of the process, a true symbol of what Farsons is and does. In plan, there is a subdivision between the offices and laboratories to the west and the brewing hall and storage silos to the east, and each section works on two main levels, with the lower levels being the more industrial parts.” Internally, the brew hall retained its inspiration from the 1950s building itself, but with an art nouveau twist. “It is not a 40

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CC design trends

literal quality, but subtly expressed through particular elements and subdued colours.” The upper level of the brew hall houses the main control room, manned by a few individuals who start off and monitor the process each day, while the lower hall houses all the pipe work for different kinds of water and the brews. From the outset, the architects prioritised environmental sustainability in relation to keeping the building cool and energyefficient. “A 28-metre vertical stack was constructed – it is a ventilation shaft which draws the hotter air released throughout the brewing process through natural ventilation from the top, while introducing cooler air from the bottom. The office block also enjoys large windows to take advantage of the views all the way to Mdina, but is shaded with a screen of perforated aluminium mesh to control light and heating levels, therefore minimising the need for artificial light and air-conditioning,” explains Alberto. “We’ve been monitoring the performance of the offices and have seen a reduction of around 21 per cent in energy consumption over a conventional building, through natural ventilation methods.” Alberto points out that the architects experimented with different kinds of mesh to shade the building before settling on the existing one. “The office wing, which is on the upper levels, is a very simple building, and we wanted to ensure a balance between

“The office block also enjoys large windows to take advantage of the views all the way to Mdina, but is shaded with a screen of perforated aluminium mesh to control light and heating levels, therefore minimising the need for artificial light and air-conditioning.” FEBRUARY / MARCH 2015

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CC design trends

“We wanted to maximise views into the brew hall itself, similar to the old hall, because it is the heart of the process, a true symbol of what Farsons is and does.”

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the amount of light we could let in and the amount of cooling that would be required. After playing around with different types of mesh, we settled for this one, but used it upside down to allow that little bit more light in, thus minimising the use of artificial light during the day. For the offices, we wanted to create an open internal environment – light, spacious and also connected with the outside world to create a pleasant working environment.” Beneath the offices, on the lower level, is the laboratory, which is sealed off due to hygienic reasons. Under the laboratory, special types of malt are stored in a large concrete base. A recreational space was also included in the design, located under the building and completely shaded, making it a perfect chill-out spot for employees to enjoy during the sweltering summer months. After two years on site, the new brewery reached completion, and was a milestone achievement for Farsons as well as Architecture Project. “It is a very complex building and an innovative one too, in terms of what it sets out to do, therefore bringing everybody on board to be able to achieve that was satisfying,” says Alberto, “followed by an even greater sense of satisfaction once the building was occupied, and started achieving what it was intended for.” He adds that, for 50 years, Farsons used its original brew house to communicate its image, and now has a new brew house to do the same thing. “Working with the past was part of the process, and we had to find a way to express the same values that the company prides itself on within the new brewery – building on what has been achieved, but updating that image into something that is relevant today and which the company can use to project itself into the future.” cc FEBRUARY / MARCH 2015




Fashion trends

Soft and sophisticated is where it’s heading, at least according to a number of high-fashion brands that have graced runways in recent fashion weeks. Martina Said highlights some of the latest fashion trends to keep an eye on in the coming months. 01. The blazer dress This garment is a perfect all-in-one – it’s got the structure of a blazer and the femininity of a dress combined in a very chic package. If you’d rather opt for the classic colour options of black or white, such as this sleeveless double breasted Alexander Wang number, wear the dress with a coloured pair of heels and perhaps a statement necklace. If you’re after a more adventurous choice of colour, tangerine, royal blue and blush pink are all on-trend options, and suitable for both daytime and evening wear.

02. Crazy for pleats Pleats have made a comeback in recent years, and no one is complaining. Pair a capricious blush pink pleated skirt in a classic below-the-knee length, such as this one from Dorothy Perkins, and dress it up or down accordingly. The great thing about this style is that it is easily adaptable – wear it with flats and a soft jumper for daytime wear or with a blouse or camisole together with classic heels for a polished, evening look.

STYLE

REVIEW

04. Denim Many designers celebrated the versatility of this hard-wearing fabric in their latest collections, touching upon a range of smart and casual looks in classic denim. Whether your preferred choice of outfit is laid-back or sharp and refined, quality denim is always a solid foundation for a variety of looks. Team a smart pair of jeans, such as this pair of dark Armani Jeans, with a shirt, fitted jumper and pair of loafers for a smart look, or with a plain t-shirt and laid-back sneakers for lazier days.

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05. Paint it red Red is making it big in men’s fashion in a range of hues from blood to brick – it is a bold and vibrant colour and bound to command attention. It is sometimes considered a tricky colour to pull off, especially for those with fairer skin tones, but if you restrict your outfit to one red item and go neutral on the rest, it shouldn’t be too hard, such as this red Polo Ralph Lauren top with beige trousers, or white shirt with crimson shorts.

06. Flats with straps These dainty-looking shoes are wonderful to look at, but ankle straps are notoriously hard to pull off unless they’re heels or you’ve got legs for days, as they tend to cut off your leg line. Here are some ways to wear this graceful nautical pair – dress them up with an asymmetrical knee-length hemline and a chic crop top preferably in darker colours for evening or pair them with slouchy jeans and a relaxed jumper for a casual daytime look. cc

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03. Cropped wide-leg trousers For a dramatically different and bang ontrend look, trade in your skinny or straight leg trousers for a wide-cut pair in a dark and flattering colour. This year’s favourite trouser cut offers a lean, airy and cropped look, most times cut just above the ankle for an ultra-chic appearance. Opt for classic colours such as burgundy, black or this dark blue Miu Miu pair, and wear them with a fitted tucked-in top and a stylish pair of heels.

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03. www.goodnightmacaroon.co

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STYLE

REVIEW www.wallums.com

Finishing touches

02. Wall murals Give your employees a taste of the tropics, forest or big city life while brightening up the office with a picturesque wall mural. Things can get a little drab if you’re staring at the same blank wall all day, particularly if it doesn’t have windows. A wall mural featuring some great scenery could change all that, and add depth to the space. It could also help tie the room’s colour scheme together, and make a statement at the same time.

What’s hot in office trends at the moment? Sarah Micallef brings you inspiring ways to jazz up your office environment for a workspace you’ll never want to leave.

Turn everyday items into attractive statement pieces by opting for beautifully designed desk accessories. Created by London-based brother designers Adrian and Jeremy Wright, this Buro desk set is a perfect example, comprising a tape dispenser, desktop calculator, USB hub and SD card and compact flash reader, stapler, desktop puncher, LCD calendar and an Led magnifier. Made in the same dimensions and complementary colour scheme, their contemporary rubberised exterior completes the effect, giving your desk a unique touch.

03. Fresh flowers Fresh flowers, whether at home or in the office, can work wonders for your mood. There’s something about the bright colours and feeling of life that freshly cut flowers bring to a space (besides their lovely scent, of course), that can really transform your surroundings. You could opt for upmarket blooms like roses and peonies if you don’t mind splashing out, but even a bunch of freshly picked wild flowers in a glass vase have their own charm.

04. Chalkboard www.cloudbrain.com

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www.stylemepretty.com

01. Design-oriented desk accessories

The chalkboard trend is absolutely everywhere this year, from wedding décor to home interiors and even eateries. Having a chalkboard walk or designated area (if the surroundings don’t allow for an entire wall) could prove a useful brainstorming and organisational tool at the office. Write down to-do lists and scheduled meetings or even put your thoughts down in presentation format if you’re more of a visual thinker, and that’s not mentioning the odd doodle at break time!

05. Warm metals

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www.anthropologie.eu

04. squareup.com/market/design-shop-inc

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Colder metals like silver and white gold have fallen out of favour of late, making way for warm tones like brass, copper and gold. Invest in office accessories in warm metals for an on-trend feel – think brass desk lights, gold letter openers and even copper storage solutions like this gorgeous magazine organiser from Anthropologie. They also give your office a decidedly more luxurious aura – what’s not to love? cc

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CC make the headlines

The future for iGaming By Russell Mifsud The iGaming industry is rapidly evolving from all angles, with changes such as new laws, EU directives, emerging jurisdictions, technological developments and consolidation shaking up the industry as a whole and as a result, changing the rules of the game.

For starters, barriers to entry are growing higher as margins are being squeezed – so much so that if you are planning on entering or remaining competitive within the industry, it is imperative to be ahead of the game, knowing your market inside-out, thinking innovatively and using new trends to your advantage. With more jurisdictions determined to regulate and raise revenue, compliant operators will inevitably feel the pinch to their bottom lines which is likely to be reflected in lower odds, less attractive bonuses and higher rakes – all of which non-compliant operators pick up on, and, in theory, offer a more profitable return to their players. It is fundamental that new rules are policed and that authorities remain vigilant. The new regime in the UK whereby the existing remote gaming, betting and pool betting duty rates of 15 per cent are now applied on a point of consumption basis begs the question as to whether an underground market will expand, putting unlicensed entities in a better position to offer more appealing opportunities to their players. Concurrently, speculation is rife as to whether sign up bonuses’ may be reeled in as a means of cutting marketing costs, which further illustrates how the industry has been and will continue to shift focus from player acquisition to player retention. Free bets will begin to change from big hand outs to cleverly capped sure bets in order to draw in customers. As a result, affiliates will also feel the pinch, unless they too roll with the times and adapt to suit their partners’ market strategies. Yet, the trouble with generalising lies in ‘game theory’: sign up bonuses are one of the major differentiators between landbased and online operators, and between competing remote gaming entities which are becoming ever more homogeneous in a market that lacks loyalty. Should all operators reduce their sign up bonuses, it would be a matter of time until an operator digs into its pockets and attempts to capture the market with a more attractive offering. With increasing consolidation in the industry, one cannot help but wonder what

FEBRUARY / MARCH 2015

the playing field will be like in the coming years. Competition has been cut-throat across the globe, with the big fish taking advantage of their liquidity to acquire competitors to further secure their position and strengthen barriers to entry. Similarly, many B2B game suppliers may well expand into the B2C market through major acquisitions. As more fragmented companies conglomerate and merge, are we to expect less focus on innovation? While the industry is synonymous with innovation, I would like to see the manner in which games are going to evolve. The human mind is hard-coded to feel drawn to playing classic games such as Roulette and Black Jack, but will such games entice the millennial generation? Individuals who have grown up playing games and expect more of an immersive, rewarding experience in return for their time are easily distracted. Skill games coupled with social gaming and elements of gamification, such as loyalty programs, and intricate game designs combined with behavioural economics through the use of Big Data will prove to be predominant in gaming for the future generation and, I daresay, for all industries in the years to come. Naturally, the new ‘gamified’ generation will not only constitute your client base, but will also form part of your workforce. Management will need to adapt their skill set to attract millennials in order to maximise their extraordinary ability at problem-solving, organising matters out of chaos, multitasking and being self-directed leaders thriving on a diet of continuous positive reinforcement. Corporations that meet the needs of the highly fluid generation will be able to crush their competition. Lastly, due to increasing regulation in television marketing, social platforms have become one of the TV media’s go-to marketing channels. However, the industry has come to realise that social gaming is not synonymous with hard-core money gambling despite the initial appeal back in 2012. When a bet is placed, a return on investment is anticipated, but when a deposit is made on a

Russell Mifsud

game that is not perceived to be gamblingoriented, players tend to be satisfied with sheer entertainment in return. The trick will be for the industry to combine the gold-rush with the fun-seeking aspects and that is what I reckon will prove to be another key to customer retention. It will not be a matter of marrying the two, but customising them to amalgamate the offering and tap into the right target market. As the rules of the game transform into nuances of every colour, one thing is clear: successful industry operators are tying up their shoe laces to go with their best suits. May the best man win. cc Russell Mifsud is a Manager at KPMG focusing exclusively on the Gaming industry as a whole. He is specialised in servicing clients in both the gambling and non-gambling sectors. He strives to anticipate new trends on an international scale, in order to best advise entities on opportunities within the market. Strategic prospects, competing jurisdictions, technological advancements and Gamification are some of the aspects that he focuses on. He continually reaches out to a vast array of international players on a global scale in order to further contribute to Malta’s ability to become the premier gaming hub within Europe.

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CC make the headlines

Strand Electronics introduces paperless software solutions for improved document workflow The fact is, no matter how well organised you think your company is, invoices and other important office documents often arrive on paper or in formats that are difficult to integrate into your workflow.

Converting, indexing and filing the documents in the correct target applications takes up a lot of time and money. Automating this process effectively streamlines your office workflow, reducing operating costs and significantly increasing productivity. NSi’s fast and efficient document capture software, AutoStore, releases your employees from many of the burdens of administration, leaving them free to do what they do best.

Making AutoStore work for you AutoStore increases efficiency in all departments, businesses and organisations that need to systematically deal with business documentation: In accounting departments, AutoStore will streamline both the accounts receivable and accounts payable tasks. In legal departments, AutoStore increases efficiency by automating workflows while ensuring legal compliance by creating secure, rules-based audit trails. In healthcare, AutoStore can significantly increase efficiency by creating single electronic files for patient information which are both secure and instantly accessible across departments and facilities.

Improved office productivity by limiting manual processes and the scope for human error AutoStore utilises your existing infrastructure and captures information from your Kyocera multifunction peripherals (MFPs), emails, fax servers, shared/ public folders, FTP sites, Microsoft Office applications, PC desktops, XML data streams and other sources. The captured information is then processed based on the workflow configuration. Scanned images are enhanced, forms are converted into usable electronic information, barcodes are read, etc. Once processing is complete the information is distributed to any number of locations. It can be faxed, emailed, stored in a document management system (DMS), and sent to FTP sites, secure folders and other destinations simultaneously. It sounds complicated, but all the user needs to do is log in and press a button. That’s it. The workflow happens immediately, ensuring your information goes where you want it to go quickly and accurately every time. Your advantages with NSi AutoStore

Ú Simplified business processes through efficient document workflow automation Ú Reduced costs for manual storage, data entry, etc. Ú Strengthened compliance with legal and internal regulations thanks to secure, rules-based document processing Ú Accelerated administrative workflows through instant document distribution to all required recipients

These are just a few examples – there are many more!

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CHAMBER/58

NEWS 01. Benchmarking Forum on performance management As part of its annual programme, the Malta Chamber Human Resources Committee organised a Benchmarking Forum event focusing on performance management systems, performance evaluation processes and performance reviews, among other related topics. The well-attended session was held on 27th November at the Exchange Buildings. Participants were welcomed by the Malta Chamber Human Resources Committee Chairperson Catherine Calleja who explained that following encouraging feedback received during previous forums, the Committee felt the need to organise a Benchmarking Forum event during which information and best practices are shared among the different companies, whilst having companies’ policies compared. A comprehensive presentation entitled ‘Performance Management: Double-Edged Sword’ was then delivered by Antoinette Caruana, Company Secretary and Group HR Manager at Simonds Farsons Cisk plc., also a member of the Malta Chamber Human Resources Committee, who put forth the philosophy behind the concept of performance management and its contribution to the effective management of employees and organisations. Ms Caruana explained that performance management is a holistic process that enables employees to recognise how their contribution can really make a difference to the success of the organisation and helps grow the desire to sustain the company’s success. The performance management system that is currently in place at Simonds Farsons Cisk plc. was also shared with the participants.

02. Malta Chamber calls for ‘Making Business Easier’ The Malta Chamber reiterated its call for national competitiveness. In a communication with Michael Falzon, Parliamentary Secretary for Planning and Simplification of Administrative Process, Chamber President David G. Curmi proposed a 12-month ‘Making Business Easier’ campaign that would take place in conjunction with the Parliamentary Secretariat. The campaign would encourage members of the business community in general to highlight specific instances or processes that are unnecessarily long and bureaucratic. Reports would be made on a dedicated email address at the Malta Chamber and FEBRUARY / MARCH 2015

01. these would then be vetted and verified by the Chamber before they are passed on to the Secretariat for possible solutions. This initiative, Mr Curmi noted, would certainly improve Malta’s ranking in the ‘Ease of Doing Business’ index, where it recently fared poorly.

03. Malta Chamber makes more proposals for MCESD restructuring Having formed part of the working group appointed to propose a strategy for the restructuring of the Malta Council for Economic and Social Development (MCESD), the Malta Chamber expressed its agreement with the recommendations of the working group on the grounds that these reflected its own views closely. In addition, the Malta Chamber has presented the MCESD plenary with its own submissions. The Malta Chamber affirmed its belief in social dialogue and how over the years, the Chamber has regularly contributed its ideas on the strengthening of social dialogue in Malta. Throughout the discussions held between February and October 2014, the Malta Chamber insisted that MCESD be given true independence and autonomy. The Malta Chamber believes that only if MCESD is well-equipped and resourced can it fulfil its function as an essential institution for the attainment of a non-partisan approach to economic and social development. To this effect, the Chamber recommended that MCESD be given similar autonomy as the Office of the Auditor General. To ensure full autonomy from Government, MCESD would not report to any Minister and its finances

would not be channelled via the Budget allocation of a ministry. Reinforcing this principle the Malta Chamber proposes that no Government minister ought to attend meetings on a permanent basis; the agenda is formulated by the members; the Chairman is to be nominated by the members and meetings ought to be held on neutral ground. With regard to the structure of the Council, the Malta Chamber supports a three-tiered structure. Consultation and discussion would start at Working Group level where each organisation represented on MCESD is invited to appoint a technical person. Other NGOs may also be invited to contribute to specific discussions at this level. Following the discussion, the matter would then be referred to Bureau level where reports are refined from the viewpoints of workers and employers. Following that, reports and opinions are referred to the Council for final discussion or ratification. In order to strengthen discussion, MCESD would need to be allocated a budget to commission expert reports on specific matters of interest to the country’s economic and social development. The Malta Chamber also called for a formal line of communication to be established between MCESD and Maltese representatives on EESC (European Economic and Social Council). Maltese representatives on EESC would be given a special status within MCESD. EESC opinions that are still under discussion would be brought for discussion at MCESD if the topic is deemed to be of significant relevance to Malta. Director General Kevin J. Borg participated in the MCESD restructuring working group on behalf of the Malta Chamber. 57


CC news

04. Sukuk The Middle East Business Council (MEBC) within the Malta Chamber of Commerce, Enterprise and Industry welcomed the reference to ‘sukuk’ and Islamic Banking in the Budget Speech 2015 presented by the Ministry for Finance on 17th November 2014. This is encouraging, given that the MEBC has, together with FinanceMalta, taken a number of initiatives on a local and an international level to increase Malta’s attractiveness to Islamic financial institutions and to encourage the Government to issue a sovereign ‘sukuk’ (or Islamic bond) as part of its efforts to send a political message that it wishes to become an important player in the Islamic economy. We believe however that ‘sukuk’ and Islamic banking are not the only Islamic financial products that Malta should focus on. The current Maltese legal framework does not pose any challenge for the issue of a ‘sukuk’; the same cannot be said for Islamic banking. The MEBC looks forward to a collective effort between all interested parties to carry out the necessary legislative amendments to facilitate the establishment of Islamic banking windows in Malta. At the same time, one cannot ignore the fact that Malta is already in a unique position when it comes to the establishment of Islamic funds. The Malta Financial Services Authority is the only regulator in a European Union jurisdiction that has issued ‘formal guidelines’ on the establishment and administration of Islamic funds, the MEBC concluded.

05. IM Malta willing to collaborate with Malta Chamber on issue of special Libya visas A delegation led by Chamber President David G. Curmi met with Identity Malta Chairman Joe Vella Bonnici to discuss

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matters relating to the issue of Visas to Libyan nationals for business purposes. The Malta Chamber explained its position on the subject, and reiterated its request, which was made to the Prime Minister in October. The inability of Libyan nationals to travel to Malta is a hindrance to business because among other situations it impedes the taking of important decisions at Boards which are jointly composed of Maltese and Libyan nationals. Whilst acknowledging the sensitivities and risks from a national security point of view, the Malta Chamber proposed a system that would be temporary, limited in duration, controlled and strictly limited to business travellers. Mr Vella Bonnici reiterated the Government’s position on the matter, in light of the serious situation currently unfolding in Libya, and the need to prioritise national security. He however also expressed his willingness to collaborate with the Malta Chamber in cases of genuine, bona fide business travellers needing to travel to Malta, in line with the Malta Chamber’s proposals to Government.

06. Malta Chamber discusses new excise on wines and pneumatic tyres with Finance Ministry A delegation from the Malta Chamber met with the Permanent Secretary at the Ministry for Finance, Alfred Camilleri, to discuss the new excise duties on wines and pneumatic tyres, announced by Government in the Budget speech for 2015. The meeting took place in light of the fact that Government had announced the new excise duties without consulting the affected parties, while these were expected to comply with the new regulations in the immediate term.

07. President’s annual reception The Malta Chamber held its annual reception on Thursday, 4th December 2014. Foremost among the guests were H.E. Marie

Louis Coleiro Preca, President of Malta and Joseph Muscat, Prime Minister, Helena Dalli, Minister for Social Dialogue, Consumer Affairs and Civil Liberties, Edward Zammit Lewis, Minister of Tourism, Mario de Marco, as well as a number of ambassadors and High Commissioners.

08. Government concedes to delay the application of excise banderoles on wines Following a series of meetings between the Malta Chamber and the Ministry for Finance, the Government has conceded to delay the application of the excise banderoles on wine bottles. This forms part of the measure to introduce excise duty on wine as announced during the Budget speech for 2015. Importers were given till 8th January 2015 to submit a detailed stock report of all wine imported up till 31st December 2014 to the Excise section within the Customs Department in order not to disrupt the busy festive season. New imports as from 1st January 2015 are required to be marked with the new banderole. In relation to other stocks, importers were allowed to affix this banderole by 31st January.

09. Malta Chamber enters partnership agreement with the Annual Investment Meeting The Malta Chamber announced an official partnership with the Annual Investment Meeting (AIM) that will be held in Dubai between 30th March and 1st April 2015. A partnership agreement between the two sides was signed. This major event is organised by the UAE Ministry of Economy and follows the signing of the Strategic Partnership Agreement between the Malta Chamber and the Dubai Chamber of Commerce and Industry which was spearheaded by its Middle East Business Council. The AIM congress is considered one of the world’s most important conferences concerning Foreign Direct Investment. The congress brings together trade as well as intellectual elements, aimed at enriching institutional, corporate and individual investors attending with a comprehensive set of guidelines for their future investment decisions in high growth regions. The upcoming fifth edition of the AIM will discuss Sustainable Development through FDI Induced Innovation and Technology Transfer. FEBRUARY / MARCH 2015




CC news

09. 10. Malta Chamber exchanges greetings for the New Year The President and the Board of Management of the Malta Chamber exchanged greetings for the New Year with the political and religious leaders of the country on 31st December. The contingent from the Malta Chamber visited H.E. Marie Louise Coleiro Preca President of the Republic who was accompanied by Mr Preca at the President’s Palace in Valletta, the Prime Minister Joseph Muscat at Auberge de Castille, the Leader of the Opposition Simon Busuttil who was accompanied by the Deputy Leaders of the Nationalist Party at Dar Centrali in Pieta, and the Apostolic Administrator Mons Charles Scicluna, at the Archbishop’s Curia in Floriana. The President, Prime Minister, Leader of the Opposition and the Apostolic Administrator all thanked the Malta Chamber for its sterling work as a social partner, and in its mission to strive for the creation of wealth in Malta. All authorities had words of praise for the work conducted by the Malta Chamber in 2014. The Apostolic Administrator in particular praised the Malta Chamber in promoting the need for greater prosperity in the country because this was a sure way of avoiding unnecessary tensions and hardships among the population. That said, Mons Scicluna highlighted the importance of ethical standards in business.

and published two important policy documents that chartered a proposed itinerary for Malta’s economy in the coming years. ‘An Economic Vision for Malta 20142020’ and more specifically ‘An Industrial Policy for Malta’ were duly presented to the political and technical authorities in Malta, and were met with wide-ranging consensus. Following the presentation of the Industrial Policy to Malta Enterprise, the Government entity agreed to discuss the document in detail, and set up a working group to delve deeper into the workings of how the set fundamentals within the document can be addressed. The working group, which met for the first time on 8th January, is composed of officials from the Malta Chamber, namely Matthias Fauser, Norman Aquilina, Sergio Vella accompanied by Kevin J. Borg and Lino Mintoff, as well as officials from Malta Enterprise. During the first meeting, the working group discussed Investment Support in the light of the European Commission’s recently amended state aid regulation, and subsequent revised regulation guidelines 2014-2020 published by Malta Enterprise.

12. Prime Minister attends annual dinner at the Malta Chamber The Malta Chamber hosted an annual dinner in honour of the Prime Minister of Malta Joseph Muscat on 14th January. During his address Chamber President David G. Curmi said that the past year had consolidated the relationship based on trust that exists between the Chamber and Government. This was manifested in more ways than one throughout 2014. It was encouraging to note convergence in

the views of the nation’s political leaders on the economic blueprint Chamber proposed for the coming six-year period. President Curmi also said that the Government’s concrete sign of confidence in the Chamber was evidenced by the establishment of Trade Malta – a joint venture between the Malta Chamber and Government through Projects Malta Ltd. “We look forward to commencement of operations at Trade Malta later on this month for the benefit of the business community. We were satisfied to note the announcement of an unprecedented number of public private partnerships in the last Budget Speech and we are committed to ensure that Trade Malta will serve as a worthy example of a successful PPP in our country,” Mr Curmi said. In his reply, the Prime Minister expressed his gratitude for the Chamber’s invitation, and said that it was always a pleasure for him to meet members of the Malta Chamber. Dr Muscat accepted Mr Curmi’s invitation for another dialogue session with members. The Prime Minister augured that the special relationship based on trust that the Government and the Malta Chamber enjoy would continue to grow in the future for the benefit of the country.

13. Chamber discusses business and industry challenges with European Commission officials In the framework of the European semester, which leads to specific recommendations addressed mid-year to each member state by the Council of the European Union, the DirectorateGeneral for the Internal Market, Industry, Entrepreneurship and SMEs of the

11. Working group to discuss Industrial Policy During 2014, the Malta Chamber compiled FEBRUARY / MARCH 2015

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European Commission organised its regular fact finding mission to Malta between 13th and 14th January 2015. The Malta Chamber was invited by the European Commission to give its views and suggestions on the current business environment in Malta. For this purpose, a meeting with Commission officials was organised by the EU Representation in Malta on 13th January. Representatives of various Commission Directorate-Generals participated in the discussion; namely Internal Market; Industry, Entrepreneurship and SMEs; Economic and Financial Affairs; Justice; and Employment. The meeting discussed Malta’s progress in the implementation of certain elements of the Small Business Act, including the Think Small First concept, Better Regulation, and the Late Payment Directive. The ongoing reform of the judicial system, the labour market and energy prices were also discussed.

14. Malta Chamber hosts President of the Republic The Malta Chamber hosted the President of Malta H.E. Marie Louise Coleiro Preca at Exchange Buildings for a dinner in her honour on 20th January. In his address, Chamber President David G. Curmi told Her Excellency that the Malta Chamber was widely seen as a responsible organisation, and this entrusted it with a great responsibility. The Malta Chamber, Mr Curmi said, advocates the notion that the employer and the employed are effectively two sides of the same coin. Those who invest and risk all their personal savings are entitled to profits in return, as this process brings about wealth.

Profit should not be regarded as a dirty word, because when private enterprise does well, so does everyone else. Employment increases, Government collects more taxes and the economy grows. When business wins society wins and the country is, ultimately, better off. In conclusion, Mr Curmi said that in the economic environment of today, private enterprise is entrusted with an ever increasing onerous responsibility. The Malta Chamber endeavours to support private enterprise, in collaboration with Government, and other interested parties, for the successful economic growth of the country.

15. Malta Chamber meets MEP Miriam Dalli President David G. Curmi and the Officers group held a meeting with Maltese MEP Miriam Dalli. The meeting was one in a series of meetings with politicians the Malta Chamber organises from time to time, in order to establish and maintain healthy working relationships and inform interested parties about specific issues affecting members. During the meeting, a number of issues were raised, among them how state aid rules are affecting Malta’s competitiveness as they limit investment incentives by Government. This is giving rise to challenges, as investment is the only way of reversing the declining trend of manufacturing in GDP share. This would make the European Commission’s target to reach 20 per cent share of manufacturing to GDP by 2020 harder to reach. Dr Dalli, being a member of the EP committee on the Environment, Public Health and Food Safety, was also informed about the lack of adequate structures at the ports, and the need to enforce the laws

regulating the free movement of goods. This is giving rise to a disadvantage to local businesses who abide by the rules, while also bringing about risks to local consumers. As Dr Dalli is a member of the EP Delegation for relations with the Maghreb countries and the Arab Maghreb Union, the meeting also discussed issues concerning Libya, and the challenges being faced by Maltese businesses with interests in the region.

16. Malta Chamber urges Government to lower fuel, utility prices In a Press Release issued on 30th January, the Malta Chamber of Commerce, Enterprise and Industry urged Government to take advantage of the current low price of crude oil and reflect the difference in price to businesses and individual consumers through lower fuel and utility rates, beyond the announced 25 per cent reduction for March 2015 in the case of energy. The Press Release noted that fuel and energy costs account for a significant proportion of overhead costs, and unjustified differences between prices locally and elsewhere are most detrimental to business especially for sectors such as import and export, freight forwarding, transport and distribution. This situation also brings about indirect effects on the economy by raising the cost of living. Other European countries have been reducing fuel prices consistently in the last months. In the UK, various major supermarket chains have reduced their petrol and diesel prices throughout the months of December and January up to 14 times. “While the Malta Chamber appreciates that a degree of stability in fuel prices is important for businesses and industry, such stability must not hold the country’s competitiveness to ransom,” the Press Release concluded.

17. Meeting with Leader of the Opposition

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On the subject of fuel prices, on 31st January, a delegation from the Malta Chamber composed of President David G. Curmi, Deputy President Anton Borg and Director General Kevin J. Borg joined other constituted bodies for a meeting with the Leader of the Opposition and Shadow Ministers responsible for the sectors that are affected by the matter in question. The Malta Chamber voiced its concerns and views about the subject and its effects on the economy.

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18. Education+

forward in favour of life-long learning, and the successful synergy between education and the labour market. The Malta Chamber noted with satisfaction the effort to bring these two elements together, a value which it has harped on numerous times in the past. This value is further enhanced in the light of Corporate Social Responsibility projects that the Malta Chamber encourages and promotes. During the launch of Education+, a number of such initiatives stood out, namely

an initiative by a number of EFL schools that taught English to early school leavers and youths aged between 16 and 21 who do not have the necessary qualifications. Similarly EY developed an Awareness Accounts Course for Form 2 students in two schools in Zejtun and Cospicua, helping them with their upcoming choice of subjects later in the year. Microsoft provided 40,000 students with free software, and supported a number of business start-ups with a number of CSR initiatives.

01. Doing Business in the MENA region

02. Pakistan’s High Commissioner to Malta visits the Chamber

closer collaboration through the signing of a Cooperation Agreement, and a draft agreement was subsequently forwarded.

The Middle East Business Council (MEBC) within the Malta Chamber, the GermanMaltese Business Council and the North African Business Council organised a seminar titled ‘Doing Business in the MENA region with German companies’ on Thursday 27th November at the Exchange Buildings. This event, chaired by Director General Kevin J. Borg, was organised to explore opportunities for Maltese companies to use German companies to penetrate the North African and Middle Eastern markets. The seminar was opened with welcome addresses by the Chairman of the Middle East Business Council and the North African Business Council, Tonio Casapinta and Simon Alden respectively, and a Committee Member of the GermanMaltese Business Council, Armin Eckermann. This was followed by a keynote speech by H.E. German Ambassador, Klaus-Peter Brandes who spoke about his experience in the Gulf as ambassador to Abu Dhabi. The ambassador’s speech was followed by testimonial speeches by three Maltese entrepreneurs. Angela Zammit of Wurth Malta Ltd spoke about the set-up of Wurth Mediterranean Ltd in Malta in 2001, while Peter Frendo of Mondium Ltd argued that one should work with German companies because they are reliable, enjoy a serious reputation and are renowned for excellent quality products. Hugh Arrigo of Attard & Co (Industrial) Ltd was the last testimonial speaker and discussed the importance of understanding Malta’s role and limitations when working with German companies.

On Friday 21st November, the High Commissioner of Pakistan to Malta, residing in Tripoli, visited the Malta Chamber and met with Vice-Chairman of the Internationalisation Committee Tonio Casapinta, and Internationalisation Manager Klaus Pedersen. During the meeting, several areas in which Malta and Pakistan can collaborate were highlighted, particularly the idea of Pakistani firms using Malta as a base and bridgehead to export directly to Europe, as opposed to indirectly, which is mostly the case today. It was also agreed that the Malta Chamber and the Federation of Pakistan Chambers of Commerce should explore a

The Malta Chamber attended the launch of Education+ at Auberge de Castille on 29th January. The event, which was addressed by Prime Minister Joseph Muscat and the Minister for Education and Employment Evarist Bartolo, launched the Government’s Framework for the Education Strategy for Malta 2014-2020. The strategy is intended to propose a way

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03. Meeting with H.E. Yevgen Perelygin, Ukrainian Ambassador in Rome On 11th December 2014, Board Member Tonio Casapinta and Internationalisation Executive Lina El-Nahhal met with H.E. Yevgen Perelygin, Ukrainian Ambassador in Rome who was accompanied by Alexander Kapustin, Head of Commercial Office. Mr Casapinta spoke about the Malta Chamber and its structure as well as the works of the Internationalisation Desk within the Chamber. He also said that the Chamber’s interest is to

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create contacts between Malta and international markets, including Ukraine. Mr Perelygin said that Ukraine sees Malta as a hub to North Africa. He added that he also met with Minister George Vella and discussed various aspects that concern both countries.

04. Meeting with H.E. Tarcisio Zammit, Ambassador to Morocco On 28th November 2014, Board Member Tonio Casapinta and Internationalisation Executive Lina El-Nahhal welcomed H.E. Tarcisio Zammit, Ambassador to the Kingdom of Morocco, to the Malta Chamber. Mr Zammit, who will present his credentials in Morocco this month, remarked that there is currently a political will to develop relations with Morocco on both political and economic aspects. Mr Casapinta spoke about the North African Business Council as well as Trade Malta, which is planned to start operating as from next year. He also expressed the Chamber’s will to host a delegation from Morocco. It was agreed that two issues to focus on are English language tuition and direct flights between Morocco and Malta in order to promote further trade. Mr Casapinta added that the Chamber has also been working on pushing the introduction of Islamic Finance and Sukuk bonds, which was consequently included in this year’s Government Budget.

05. High Commissioner of Namibia visits the Malta Chamber The High Commissioner of Namibia, Steve Vemunavi Katjuanjo visited Malta along

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02. with First Secretary Berenice Dentlinger. During his visit to the Malta Chamber, the High Commissioner was accompanied by Honorary Consul Eric P. Fenech Pace and met with Internationalisation Manager Klaus M. Pedersen. During the meeting, it was discussed to develop collaboration – and potentially training – in the areas of maritime logistics, aviation and tourism. Malta and Namibia are seen to have a lot in common. The above-listed areas are experiencing new and exciting developments in Nambia, in the form of a major expansion of the port of Walvis Bay, dividing the existing port into one for containers and another for bulk cargo. Furthermore, plans are in the pipeline for a major extension of the airport near Windhoek, to allow for long-haul airlines to land and develop the airport as a regional hub.

06. Ambassador of Azerbaijan, H.E. Mr Vaqif Sadiqov addresses Malta Chamber members During a well-attended event at the Exchange Buildings, Malta Chamber Deputy President Anton Borg welcomed H.E. Vaqif Sadiqov Ambassador of Azerbaijan and Second Secretary Zaur Gadimaliyev to a Doing Business with Azerbaijan

event held on 22nd January. The event aimed to explore business opportunities between Malta and Azerbaijan. In his address, Mr Borg spoke about the long and good relationship Malta and Azerbaijan enjoy. He said that Azerbaijan has long been an exciting economy and caught the world’s attention by producing some of the highest growth figures in the world. Azerbaijan, he said, is a country full of promise and opportunity. Ambassador Sadiqov spoke about Azerbaijan’s history and economy, as well as the advantages of doing business with and investing in Azerbaijan. These include its geographical location and financial stability, among others. On a more technical level, Mr Gadimaliyev underlined the main sectors for business opportunities in Azerbaijan, among them transport, energy, telecommunications, construction, agriculture and tourism. Further to this meeting the Malta Chamber will be organising a Business Delegation to Baku.

07. Tapping the Spanish market better On 29th January the Malta Chamber, in collaboration with the Spanish Embassy in Malta, hosted an event intended to explore opportunities of deepening business relations with Spain. Angel Torres, Economic and Commercial Counsellor responsible for Malta, at the Spanish Embassy in Rome, addressed the event and spoke about business opportunities for Maltese businesses to internationalise to Spain. The event was also addressed by Alfredo Muñoz Perez, President of MSCC, Anton Borg, Deputy President of Malta Chamber of Commerce, Enterprise and Industry, H.E. José Pons, Ambassador of Spain to Malta and Christian Cardona, Minister for the Economy, Investment and Small Business. A discussion titled ‘Business with Spain… now is the time!’ moderated by Vanessa Macdonald, Business editor of the Times of Malta ensued with the participation of Mr Torres, Mr Muñoz Perez, President and CEO of Middlesea Insurance p.l.c., James Muscat Azzopardi, Director of Credence and Mario Camilleri, CEO of Big Bon Group. cc FEBRUARY / MARCH 2015



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“If the vision is there, it is not spelled out, and even more importantly, the strategic pillars which would eventually contribute to the realisation of that vision are not known to us.�

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‘Malta’s economy is stable and reliable, but there are areas of concern’ Martina Said meets newly-appointed Shadow Minister for the Economy Claudio Grech and picks his brain on the current state of Malta’s economy, its future, and the Opposition’s take on the contentious citizenship programme.

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ecently-appointed Shadow Minister for the Economy, Claudio Grech says Malta’s economy continues to be stable and reliable when compared to the more turbulent economies of our European neighbours, but there are key areas of concern which as yet show no signs of being addressed by local government, primarily the seeming lack of a concrete economic vision upon which Malta’s prosperity depends. He believes that Government is resting on the laurels of the current sectors that have been reaping success in recent years – while

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it is good to nurture and maximise their potential, we also need to look towards new sectors if we want to remain competitive, he believes. “Government is still riding the wave of the economic growth reaped by economic sectors created in the past. Obviously that has a finite term, and following the growth and evolution of such industries as financial services, the gaming sector and value-added based industries in the last five years, one would expect that Government now starts mapping out steps for other sectors to evolve,” he asserts.

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“What we’re also noticing is the lack of a level playing field which local operators that are law-abiding have to face when competing with operators outside of the regulated markets, giving them a competitive advantage, because, for instance, of the implications of eco-tax.”

Mr Grech says that one area of real concern to the Opposition is that Government has not yet determined its economic strategy, and, more importantly, how it will sustain a level of economic growth apart from nurturing the traditional sectors. “If the vision is there, it is not spelled out, and even more importantly, the strategic pillars which would eventually contribute to the realisation of that vision are not known to us. And if they are not known to us, they are not known to anyone – it is useless having an economic strategy and not sharing it.” On a more tangible level, he says the fuel pricing debacle is invariably impacting the economy at large, given that transport and fuel-related costs are a primary raw component of the industrial process. “What we’re also noticing is the lack of a level playing field which local operators that are law-abiding have to face when competing with operators outside of the regulated markets, giving them a competitive advantage, because, for instance, of the implications of eco-tax. Some importers are not being subjected to the same fiscal system as local operators,” he asserts. “Free movement of goods is a fundamental right practiced in many EU member states, however, that cannot be derived at the expense of creating unfair levels of competitive playing fields.” While Mr Grech is in agreement that Malta’s Government is faring relatively smoothly compared to our European counterparts, he is keen to point out that it is not by chance. “The economic performance of Malta defies the cyclical trends of other countries – successive PN governments had built in an economic environment which is largely independent of the state and of what Government does.” He offers an example – “if PN governments had failed to register the changes that low-cost manufacturing industries were undergoing, and had not had the vision to make the leap into knowledgebased sectors such as financial services, we would today be in a position where our traditional industries would be dying out, without sufficient industries to substitute that contribution to the economy.” 70

Creating new sectors for our economy is not something that happens overnight, however – the aviation industry is a testament to this. Mr Grech says it took around seven years for the government to create the right environment and legislation, to structure the selling proposition of Malta in that sector and attract companies. “And there you see that vision matters – if, as a government, you do not have a clear vision of where you want your economy to head in the next five to 15 years, then you will get to a point where your economy will invariably become stagnant, and become dependent on the state,” he says. “What has worked for the past years will not necessarily work for the years to come. With globalisation it will not work that way, and as time passes, the life cycles of industries will effectively become shorter.” Mr Grech says Government should focus on two key elements to enhance economic growth, primarily on the infrastructure of our country, and on the quality of jobs being created. On the first point, he asserts that infrastructure at large, including transport,

electricity, telecoms and more, is something in which Government can never stop investing, and needs to be resilient enough to serve these various industries. “On a practical note, if we’re looking to be the next-generation logistics hub in the region, we need to assess whether our connectivity is effective enough, whether our Freeport and terminals have sufficient capacity to make this leap, and if our ICT infrastructure is sufficient.” The second key element will depend on the skills base created in our country. Mr Grech asserts that it is useless trying to be, for instance, a computer gaming destination, if Malta does not have sufficient high-end graduates in the disciplines related to computer gaming – namely mathematicians, designers and computer graphics artists among others. “These two elements, in my opinion, are fundamental – if a government simply focuses on creating the best infrastructure it could, together with a good educational system that can nurture the best human capital, then the rest can be taken care of by the private sector.” FEBRUARY / MARCH 2015




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In the coming months, the Nationalist Party is set to roll out its own economic vision with objectives that believes it could serve as the foundations for new waves of economic growth. “Our philosophy is straightforward,” asserts Mr Grech. “We will shift all our efforts to growth-driven areas. We believe our economy cannot simply be based on cutting costs and on baseline policies. We need an aspiring economy that identifies niche areas and builds an economic sector based on that niche. One element which we shall be pushing, which is different from traditional economic strategies, is the importance of quality of life.” Mr Grech explains that a key element with which Malta can attract and retain investment is quality of life. “This country is safe, has a sound healthcare system, is not deeply entrenched in conflict, and in all our main industries there is cross-party agreement, evident in the success of our financial services and gaming industries. These elements put together will give us an edge – many of our European neighbours are fraught with conflict, internal or on their foreign front and as a country we are small enough and can be nimble enough to capitalise on these international weaknesses which exist around us.” On the controversial citizenship programme, Mr Grech says that information regarding the number of applicants and FEBRUARY / MARCH 2015

“One should be on the lookout for what anti-EU sentiment could be creating within Europe, because that sentiment could give additional motivation to those countries on the verge of a bailout, and have them believe that they could get away with less fiscal discipline.” investments made by the applicants is few and far between. As the furore surrounding the scheme has now died down and the programme has been put into motion, one would expect that this kind of information is disclosed, he says, especially since Government had done away with its original plan of withholding the identity of individuals who are granted citizenship. “Since we are being told that there is a long list of applications and that hundreds of millions of investments are coming in, then why not reveal at least a breakdown of the applicants, mentioning their nationalities, their contribution to the economy, whether they’re buying or renting property, even on a no-names basis? For us to be in a position to say the programme is or is not reaching its objective, this basic information has to be published.” In the wake of the recent election to government of Greek anti-austerity party Syriza, that has pledged to renegotiate the enormous bailout with Greece’s international creditors, Mr Grech says it will be a thorough test for the Eurozone and the notion of the European Union at large. “Populist talks look and feel good when a country that had a laissez faire fiscal approach is hardly hit

by the kind of measures that Greece has experienced, but then again it will be very hard for the Greek government to match its populist pledges to reality, and I think this spells out some very important lessons to be learnt.” Firstly, he cautions against increasing public expenditure due to an inward looking approach, by employing more people in government, creating inward-looking policies and more bureaucratic functions, as this would create more fiscal pressure. That public spend, he says, will eventually put a government in a situation where in order to address fiscal imbalance, it will need to resort to cuts and unpopular austerity measures. “On a more macro basis, one should be on the lookout for what anti-EU sentiment could be creating within Europe, because that sentiment could give additional motivation to those countries on the verge of a bailout, and have them believe that they could get away with less fiscal discipline. It is something that citizens might not think about, until it affects them personally through a reduced pension or reduced social services, but is an incremental process which, if not kept in check, could spell hardship especially for the lower end of the economic strata.” cc 73



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Logistics industry thrives as imports increase by over €600 million in one year Malta’s logistics industry continues to thrive as imports increased by over €600 million in 2014 over the previous year and the industry moves swiftly to accommodate ever-growing demands from a range of business sectors. Martina Said speaks to the leaders in the industry.

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rade statistics just released by the National Statistics Office paint a positive picture of the local imports sector, translating to increased trade for Malta’s logistics industry. Total imports between January and December 2014 reached a staggering €6,314.30 million, registering an increase of €628.5 million FEBRUARY / MARCH 2015

when compared to 2013, a percentage increase of 11 per cent. The increase in imports was mainly due to increased trade in mineral fuels, lubricants and related materials (+€320.2 million) and machinery and transport equipment (+€229.9 million). Exports on the other hand, registered a decrease of €206.7 million, equivalent to

5.3 per cent as total exports decreased from €3,925.40 in 2013 to €3,718.70 in 2014. Almost half of the total imports originate from EU member states as the NSO statistics reveal that Malta’s imports from the European Union reached €3,141 million, or 49.7 per cent of the total imports. 75


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The transport of goods from one destination to another is a complex and intricate process, and every industry has different expectations from the freight company it chooses to entrust its cargo with. For some, it might simply be an issue of transporting cargo from one point to another at a competitive rate, but for others, it might be more than just a forwarding operation, and choosing the best company to get the job done might be a game changer for the success and future of the enterprise. Express Trailers, specialised in multimodal transport solutions, is able to customise solutions by offering trailer (road and rail), sea freight (containers) or air freight, and has its own vast fleet of trucks and trailers equipped with the latest technology, capable of carrying all kinds of cargo including dry, temperaturecontrolled, machinery, special or unique cargo, and personal effects to and from Malta. Franco Azzopardi, Chairman and CEO of Express Trailers, says, “the distinguishing quality mark of Express Trailers as part of the Express Group lies in our people and the obsession for quality and customerfirst focus.” When choosing a company to ship their goods, Mr Azzopardi says, clients should always bear in mind that an element of risk is involved. “Business is about risktaking, and an entrepreneur is constantly assessing what risks to take or not take. For the importer and exporter alike, logistics too have inherent risks which cannot all be shifted to the transporter, or be insured. The professional and qualified staff at Express Trailers constantly strives to reduce those risks that remain residual with the importer and exporter, by developing solutions specific to the cargo, its location and resources in terms of bestof breed partners, agents, technology and equipment.” Mr Azzopardi adds that Malta’s geographical location has always added significance to its importance in logistics and trade and, up to a few decades ago, since Malta’s focus was trained on manufacturing and export, logistics in the Maltese market continued to develop immensely. “That said, there are still nodes of difficulty, such as the restrictive limited competition among RO-RO shipping lines, which are essential for the carriage 76

“The distinguishing quality mark of Express Trailers as part of the Express Group lies in our people and the obsession for quality and customer-first focus.” – Express Trailers Chairman and CEO Franco Azzopardi

of cargo to and from mainland Europe. Then there are legacy burdens such as costly port charges which detract from the competitiveness of Malta’s traders and manufacturers. But all in all, Express Trailers has over its 50 years continued to invest towards best-in-class service for its customers.” BAS, which offers standard freightforwarding services including air and sea freight together with customs brokerage, handles a variety of projects through its Special Projects Unit, such as outsize cargo, film and TV series units, infrastructure projects, fairs and exhibitions, dangerous goods, personal effects and transshipment traffic, livestock

and warehousing projects. Through its sister company Cassar & Cooper, BAS also offers trailer services to and from Europe, the main routes being Italy, Germany and the UK. Ray Buttigieg, General Manager of BAS, says “we have a strong client base in the pharmaceutical industry, general manufacturing and aerospace. We are also seeing growth in our trailer service, which is ideally suited to the small-to-mid-size shipments from the retail sector. Since practically all freight forwarders use the same modes of transport and carriers, one needs to choose a company with good partners overseas that offers good support and solutions for one’s needs.” FEBRUARY / MARCH 2015




CC logistics A similar sentiment is echoed by Nikki Zammit, Owner and Managing Director of Arrow Express Ltd, which offers air freight, express courier services, sea freight, trailer services and customs brokerage. He says that the company places a lot of emphasis on the level of service offered and on being flexible and impartial when recommending the appropriate service for its customers’ freight requirements. “Being an island economy, the local market is limited in terms of freight volumes that can be handled. Notwithstanding Malta’s size and limitations, freight services offered locally compare very well with what is offered abroad, and forwarders in Malta are knowledgeable and well versed on a variety of aspects in freight forwarding solutions and services offered by airlines or shipping lines.” He adds that the sector locally has evolved in line with the times: “over the years we have seen a big change in the way business relating to freight services is conducted, owing mainly to EU legislation, especially where security for the transportation of cargo is concerned, new regulations in general which constantly need to be implemented in fields such as customs and the transport of hazardous materials, which are always getting tighter, and of course the need to be on a constant

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lookout to find ways on how to move cargo faster and cheaper.” Mr Zammit considers the most popular services with local clients to be its import and export airfreight services and its express courier products. “On the airfreight side, we are regularly requested to handle urgent aircraft spares, temperature sensitive goods and the complex logistics for exhibitions, concerts and high-profile projects both locally and internationally. A major factor contributing to our success in this field is the time we take to painstakingly plan each of these projects and have the appropriate back-up plans in place to ensure a smooth operation. As for our express courier products, our Shipping4Shopping service has proven very popular. Designed for the online shopping community, it provides the facility of a UK address to our clients in instances where the supplier would not ship to Malta or the prices quoted for shipping to Malta are too expensive.” Malta’s long-standing maritime history has necessitated the growth and evolution of local shipping companies, some of which have been established for many years and have grown in keeping with modern demands. Thomas Smith, which provides the full spectrum of shipping services, is one such company, which

“Since practically all freight forwarders use the same modes of transport and carriers, one needs to choose a company with good partners overseas that offers good support and solutions for one’s needs.” – BAS General Manager Ray Buttigieg

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“A shipping supplier is a partner – some companies appreciate this and appoint a shipping supplier on a long-term basis, which is the style of service we like to provide and prefer as it differentiates us in a very competitive market.” – Thomas Smith Managing Director Joe Gerada

assigned to it. Thomas Smith has excelled here in the film industry and oil and gas sectors.” Mr Gerada says that when purchasing a service, a client is entering a relationship with a supplier therefore reliability, trust, expertise, honesty and communication are key factors to look out for. “No client has time to lose or extra stocks to keep, and nobody wants idle money, so all shipping services are required at the most efficient level possible. If shipping goes wrong there is a domino effect on all other plans. A shipping supplier is a partner, not just any supplier of one commodity with no relationship. Some companies appreciate this and appoint a shipping supplier on a long-term basis – which is the style of service we like to provide and prefer as it differentiates us in a very competitive market – and others just want the cheapest movement of cargo on an ad hoc basis.”

offers to customise services according to what is required. Managing Director Joe Gerada explains, “as agent for Maersk line, it provides a global full load container service, but if Maersk line cannot be the solution for a particular requirement, Thomas Smith can make arrangements with other lines, and similar solutions exist for trailer services, airfreight and all ancillary services like warehousing and insurance packing. Logistics and project cargo require a different, tailor-made approach, and a particular project could last months with a unique project manager

“A major factor contributing to our success in the field of airfreight is the time we take to painstakingly plan each project and have the appropriate back-up plans in place to ensure a smooth operation.” – Arrow Express Ltd Owner and Managing Director Nikki Zammit FEBRUARY / MARCH 2015

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“Standardising services allows for increased levels of efficiency in execution. We are also able to take advantage of our clients’ volumes and repeated patterns to secure favourable terms with carriers, further reducing costs.” – Sullivan Shipping Agencies Ltd Chief Financial Controller Matthew E. Sullivan

to secure favourable terms with carriers which results in further cost reductions for our customers.” On the evolution of Malta’s market in the field of logistics, Mr Sullivan says that while it has developed considerably, the level of service and growth opportunities remains driven by the number of calls by sea and air into Malta, and by the connections to major trading hubs around the world,

albeit limited by Malta’s relatively low local volumes. “With developments such as the Malta Freeport, however, we have managed to mitigate our local volume limitations. The increased services and connections there have undoubtedly had a positive effect on the wider local industry, both in terms of cost and efficiency of service, and are attracting some logistic opportunities to Malta.” cc

Sullivan Shipping Agencies Ltd has similarly invested in strengthening its services in recent years, particularly in two main spheres – building on its multimodal freight capabilities from all main trading hubs around the globe while, on a parallel level, developing packaged transport solutions that address the different requirements of its local customers. “We have developed five solutiondriven services which address specific requirements, such as time critical solutions, typical production or stock planning requirements, tender and contract requirements, online sales solutions as well as innovative solutions for groups of companies,” says Chief Financial Controller Matthew E. Sullivan. “The process of standardising the services allows for increased levels of efficiency in execution. We are also able to take advantage of our clients’ volumes and repeated patterns 82

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01. Sony RX100 III You’d be forgiven for thinking that this camera, which is small enough to easily slide in your pocket, doesn’t pack as much punch as a bigger camera would, but you’d be wrong. This latest version of the RX100 boasts a number of new features including a retractable electronic viewfinder (EVF) that stows away inside the camera body when you don’t need it, keeping it streamlined. The camera’s 24-70mm zoom lens with a fast F2.8 aperture along with Sony’s huge 1-inch sensor enables you to get lovely background blur when shooting a particular subject, while the video footage is exceptional. Ideal for taking gorgeous photos on holiday without the need for lugging a larger camera about.

02. Hello Sense Hello Inc.’s upcoming sleep-tracking device, Sense, comprising bedside ‘Sense’ device and pillow clip-on called the ‘Sleep Pill’, is aimed at helping you get a better night’s sleep. The pill, which you attach to your pillow, tracks movement that sends the data to the Sense, which tracks temperature, light, sound and allergen particle data. Combined, the two give you a sleep score for every night, so you can really find out just how much sleep you are getting.

If you’re a true audiophile, the Dali Kubik Free Bluetooth speaker is likely to be the stuff of dreams. Besides being a Bluetooth speaker, you can also connect it to a music source for higher quality music, but the sound quality this streamlined speaker produces is stellar throughout. While it’s certainly pricey, it’s all about priorities – and if the highest quality sound for your music is high up on your list, the Dali Kubik Free speaker will make for a sound investment.

www.wikipedia.org

What’s got us excited in the wonderful world of gadgets of late? Technology that can measure your sleep and activity levels, and give you the highest quality images and sound. Sarah Micallef dishes the latest tech for gadget fans.

GADGETS

04. Dali Kubik Free

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05. Tory Burch for Fitbit Founded in 2007, Fitbit’s fitness products have grown to encompass a range of wearable trackers that help you stay motivated and improve your health by tracking your activity, exercise, food, weight and sleep. Wearing your tracker enables you to track your steps, distance, calories burned and active minutes throughout the day, as well as monitor how long and well you sleep, and can even wake you up with a silent alarm (so as not to disturb your partner). For the fashion conscious among us however, the traditional tracker could be a bit of a faux pas – that is until this exclusive collection by designer Tory Burch came along, making your tracker a super chic accessory too! cc

03.

finance.yahoo.com neuerdings.com

Tech Review

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www.glamour.com

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03. Kindle Voyage

izvestia.ru

The latest in the Kindle line, Kindle Voyage has been hailed by many as the best e-reader yet, and may serve to sway even the most diehard traditional book enthusiasts. It’s certainly elegant to look at, comprising a front that’s made of smooth glass that is etched to reduce glare. The resolution is also sharper than any of those that came before it, with an auto-brightness feature that makes it easy to read in almost all light levels. Its page turning mechanism is also more refined than that of its predecessors, moving ever closer to the ease of turning the printed page.

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Over 8,000 people working in the gaming industry in Malta Malta must remain responsive and relevant to the needs of the growing gaming industry on the island, according to Joseph Cuschieri, the Executive Chairman of the recently rebranded Malta Gaming Authority. In an extensive interview with Jo Caruana, Mr Cuschieri expresses optimism on the outlook of the gaming industry in Malta, which is currently employing – directly or indirectly – over 8,000 people in Malta, stressing that his aim is to bring Malta’s reputation and performance in the sector to the very top of the global league.

Research shows that online gaming’s Gross Gaming Revenue (GGR – stakes minus winnings) in the EU28 is expected to rise from €10.9 billion in 2013 to €13.27 billion in 2015.

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n 2015, it’s hard to imagine Malta without iGaming. The industry has become a fundamental part of our economic make-up over the past decade or so, and, with over 8,000 people directly or indirectly employed by the sector, we have come to need it as much as it needs us. And we are part of a wider boom. Research shows that online gaming’s Gross Gaming Revenue (GGR – stakes minus winnings) in the EU28 is expected to rise from €10.9 billion in 2013 to €13.27 billion in 2015. Locally, right at the very core of the

local gaming industry is the Malta Gaming Authority (previously the Lotteries and Gaming Authority), which is responsible for all sorts of activities related to the sector. And, at its helm, is the authority’s recently-appointed executive chairman Joseph Cuschieri, who previously occupied senior management positions at the Malta Communications Authority and at Vodafone Malta. “The general outlook for Malta and the gaming sector is very good, as long as we keep overcoming the challenges and convert opportunities into economic

benefits in a timely manner,” Mr Cuschieri tells me. “Yes, the gaming industry has certainly made its mark. There are currently 280 companies holding 468 active licenses locally (at end January 2015). In fact, the extent of the economic importance of the gaming sector in Malta is irrefutable. The land-based and remote sectors together contribute more than €52 million a year directly into the state coffers in the forms of gaming taxes.” And, apart from this direct contribution and the increasing number of jobs it creates, there is a significant degree of indirect contribution from the services used by these companies in their operations, such as ICT services, office rents, corporate services and personal services consumed by the employees like rents and other personal expenses. “Plus, since the products and services given by remote gaming companies are largely exported, it leaves a very significant positive effect on Malta’s balance of trade,” the chairman continues. The ongoing evolution of the sector requires that the relevant authority keep up. Thus, since Mr Cuschieri moved into his new role, the MGA has begun a transformative process, including a complete rebranding exercise. “Rebranding, yes, but it is so much more than that and a far deeper endeavour,” he continues. “It is substantive and reflective of what we stand for today and in the future. In fact, we have reviewed all of our internal systems and processes, and made significant improvements already.” In part, the authority’s shift in name, from the Lotteries and Gaming Authority to the Malta Gaming Authority, may not be very different, but merely removes the specific reference to ‘lotteries’ which are still considered as gaming. Malta, meanwhile, has been inserted to help brand the authority internationally. “Though a minor factor, it also reflects the consistency with which we approach our regulatory functions, irrespective of the game and channel used,” says Mr Cuschieri.

“The land-based and remote sectors together contribute more than €52 million a year directly into the state coffers in the forms of gaming taxes.” 88

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“There are currently 280 companies holding 468 active licenses locally.”

“Our plan, including the overhaul of the regulatory framework, is more than a mere update but an ambitious step forward, as Malta aims to make the quantum leap necessary to become the centre of excellence.”

FEBRUARY / MARCH 2015

In addition, the change in name and rebranding also coincides with the legal provision made for the establishment of Gaming Malta – a foundation that will be solely responsible for the promotion of Malta as a centre of gaming excellence and which has a separate function from the regulatory function of the authority. “Our plan, including the overhaul of the regulatory framework, is more than a mere update but an ambitious step forward, as Malta aims to make the quantum leap necessary to become the centre of excellence. This will occur both in relation to

it as a jurisdiction, as well as an economic hub for gaming and ancillary services, and both are equally valid economic contributors and critical components to the gaming industry,” he says. “And while the regulatory and economic objectives may sound contradictory for the gaming sector, we are considering them as essentially complementary and within our strategic reality, mutually re-enforcing. In a sector as regulated as gaming (which is similar to financial services), the soundness of the regulatory framework and 91


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“With the political and stakeholder support I am receiving, I am certain that Malta’s future looks encouraging.”

institutional robustness are indeed the road to success in economic terms,” he continues. The chairman also stresses that the next three years will be transformative for Malta. “It really is essential for Malta to make the necessary reforms to add value for the industry within its operating environment,” he explains. “By which I

mean the state-by-state regulation and the rising compliance costs, as well as the importance of remaining responsive and thus relevant to the needs of the industry.” Finally, Mr Cuschieri believes his goals for what he wants to achieve match what Malta wants to achieve in the gaming sector. “My aim is to bring both the authority’s and Malta’s performance and reputation to the

very top of the global league. “I am focused on making an increasingly positive contribution to the industry, without any of the avoidable harm to society that is usually associated with gaming. With the political and stakeholder support I am receiving, I am certain that Malta’s future looks encouraging. We have a lot to work for, and a lot to look forward to.” cc




The nutritional value of this humble root vegetable is massively underrated, and it is often considered to be a go-to vegetable for one-off occasions. However it offers a very generous source of vitamins A, B, C and D, and contains iron which helps the immune system function as it should. Its rich colour also makes it high in carotenoids, which help strengthen eyesight, boost our immunity against disease and are powerful antioxidants. If that isn’t enough, sweet potatoes are also incredibly versatile – try them roasted as wedges or fried, baked in a pie, puréed in a soup, or stuffed, grilled and served as a side dish with a leafy salad.

02. The new burger The beef burger will always be the original big boy – it’s been turned into a posh burger, transformed into a mini slider and challenged to handle a ridiculous amount of extra ingredients. The classic burger, however, is being reinvented and pushed beyond the use of only beef and chicken in a bun. Popular alternatives include pulled pork patties, duck, crab, scallops and tasty lobster, the latter being a healthy alternative and makes for a mouth-watering treat coupled with a smear of tartar sauce and caramelised onions.

03. Alternative noodles The standard pre-packed wheat noodles found in almost every household kitchen – that are admittedly convenient and cook in no time – are being side-lined for healthier, wheat-free options, even by those that tolerate gluten. There are glass noodles that resemble translucent threads made from mung bean starch; buckwheat vermicelli, Korean noodles made from buckwheat and sometimes arrowroot or sweet potato; rice noodles made with rice flour and soba Japanese noodles also made using buckwheat flour.

05. Grapefruit liquor This may just be your new favourite liquor, which essentially means you’ll have a range of new favourite cocktails too. Grapefruit liquor is slightly sweet, particularly refreshing and immensely aromatic. Put it to the test with a Mae Rose cocktail, which combines dry gin, dry vermouth, Campari, grapefruit liquor and ice, and join the hype surrounding this bottle of goodness. We recommend Giffard’s Crème de Pamplemousse Rose liquor, which is a blend of pink grapefruit and neutral alcohol.

05.

06. Tacos This Mexican delicacy is the ultimate casual food with infinite potential. It is a step above the sandwich and can be customised to appeal to a variety of tastes, while from a domestic perspective tacos are an excellent way of using up leftovers in a creative way. Of late, however, they’ve been given a gourmet makeover thanks to a number of above-average recipes, such as brisket taco with green chilli vinaigrette, fried whiting taco with pickled green tomato tartar and grilled red snapper taco with bistro-chipotle spread. cc

www.kitchendaily.com

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FEBRUARY / MARCH 2015

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jessicaburns.com

01. Sweet potato

Olive oil has long been the go-to oil for cooking, garnishing, dressing and a variety of other uses. With the rise of healthy and organic eating, however, many are looking to introduce new, healthy fats in their diets, and different kinds of oils are the perfect answer to that, such as oils made from avocado, pumpkin seed, coconut, mustard and a range of other vegetables, nuts and seeds. Cooking with these oils might require a little experimentation before getting it right though, as each one differs in its properties and might have a particular taste that requires getting used to.

www.guiltfreefoodguide.com

A number of the latest food crazes have long been accessible to consumers, but are either being reinvented in new and interesting ways, or thrown under a temporary spotlight for their unique flavours and beneficial properties. Martina Said looks into some of the latest food trends.

FOOD&WINE

04. Flavourful oils

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www.all-lovecatering.com

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HSBC’s Malta Trade for Growth €50m fund fully utilised A €50 million fund launched by HSBC Bank Malta in December 2013 to spur business growth in Malta has been fully utilised. In a sign of clear commitment to businesses in Malta, HSBC Malta is now considering another tranche of funding to respond to the needs of enterprises in the country. Through MTFG, HSBC is offering a number of incentives such as the waiving of the fee related to the first documentary letter of credit for those customers that are new to HSBC Malta’s Trade Finance. In addition, a 20 per cent discount will be provided on the opening and advising fees on documentary letters of credit to or from emerging markets. Other incentives relate to the waiving of the administration fee for finance against trade export or import facilities for trade with emerging markets, as well as discounts on Receivables Finance

The €50 million trade fund by HSBC Malta has been exhausted, prompting the bank to consider adding another tranche to support internationalisation of Maltese business

and preferential rates on Foreign Exchange, including currencies such as the Chinese Renminbi. Customers in Malta benefit from relationship managers with a deep understanding of international business. MTFG also allows customers’ access to HSBC's unrivalled global reach and expertise in international trade. With trade teams on the ground in 60 countries and 7,000 commercial banking relationship managers, HSBC is well positioned to connect customers with international opportunities. HSBC Malta Head of Commercial Banking

Michel Cordina said: “business and trade are the engines of modern-day economies and trade finance is the vehicle to improved investment in businesses. We hope that the Malta Trade for Growth initiative continues to provide the necessary jumpstart to qualified businesses in achieving their aspirations in becoming a part of the global economic flow.” cc

on sales, two focused on rentals and a specialised highly trained commercial team. The team of agents has a growth plan to reach 140. The planned number of agents comes about from pre-defined sub markets in Malta, following a clear international company strategy to achieve a high market share but always offering a high class service.

Engel & Volkers Sara Grech Managing Director Benjamin Grech says “the local market poses many challenges for a motivated seller; our agents who are professionals looking to succeed are offered the right guidance by management to ensure that our clients are always taken through the sales process in a bespoke manner.” cc

More information about HSBC Malta’s trade initiatives and trade fund is available on HSBC Malta’s website at www.hsbc.com.mt/50million

Engel & Volkers Sara Grech: 2015 is the year of power One month has already passed but the year 2015 is still young; and our company focus has strengthened and is ever clearer. We welcome two new team leaders to our growing team and another 15 highly motivated agents; and with targets reached in January we confirm a strong start to the year. This year’s highlight is the company move to our new Regional Market Centre which is currently being finished to the highest of standards to provide our workforce with a contemporary and wonderful working environment; the concept is the first of its kind for Malta. More updates about our new Regional Market Centre will follow in the next edition of this publication. The continuation of our power plan includes the restructuring and expansion programme of our team. This year we will recruit a further three team leaders with a total number of seven teams, four focused 96

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CC make the headlines

How do you put a price on life? Life assurance is generally linked to one’s personal life, but doesn’t your business warrant protection too? For most, life assurance is no more than a ‘necessary evil’ – a checkbox to tick because we have to, not because we want to. However, any business has key assets that are critical to its survival and growth. No business is immune to a rainy day. Your business may, at some stage, face the death or critical illness of a key person. Life assurance answers precisely this eventuality – one that sends shivers down even the most hardened businesspeople, but an integral part of managing risk. It is up to you to measure the probability of a crisis against the likely probability of occurrence. What would the repercussions of the loss of a business partner or key employee mean for your enterprise? Would the surviving partners have easy access to funds to purchase his/her share of the business from his/her estate? Would the inheritors want to involve themselves in the business? Would they be able to sell their shares? Similar scenarios can be drawn should a key

employee become suddenly unavailable. It could mean loss in profits, reduced sales, recruitment and training costs, and disrupted plans. Having the foresight to protect your business against these risks can make the difference between running the business smoothly and risking closing up shop. These potential problems can be addressed through a partnership or shareholder protection plan that combines the availability of the necessary funds with a legal agreement that ensures these funds come to the right hands. With the right insurance in place, the surviving business partner will have enough capital to keep the business going while looking for a replacement for a deceased partner, or buy out the heirs.

A BOV Business Protection Plan makes business sense. You can avail yourself of a suite of flexible products that allow you to tailor cover to the needs of your business at any given time. The BOV Business Protection Plan is flexible enough to protect your business in the case of extraordinary circumstances concerning your key persons, partners or shareholders. So whatever type of business you are in, speak to us and see how we can help you protect your business. Bank of Valletta p.l.c is an enrolled tied insurance intermediary of MSV Life p.l.c. MSV Life is authorised by the Malta Financial Services Authority to carry on long term business of insurance under the Insurance Business Act 1998. cc



CC make the headlines

Professional Indemnity Insurance by Judith Galea, ACII As a professional, you owe a duty of care to your clients who might reasonably rely upon the service or advice you have provided. Therefore, you can be held legally liable to provide compensation if a third party suffers a loss as a result of any professional negligence. Here’s a look at how Professional Indemnity Insurance may protect you and your livelihood. A Professional Indemnity Insurance policy protects insured professionals against claims made against them by third parties for injury, loss or damage as a result of any negligent act, error or omission whilst carrying out their professional services. Apart from the compensation payable, the policy also covers claimants’ costs and legal expenses incurred in the investigation, defense and/or settlement of a claim.

Middlesea Insurance p.l.c offers tailormade Professional Indemnity Insurance for a number of professionals who provide a service such as medical practitioners, accountants and auditors, lawyers and notaries, architects and civil engineers, and electrical and mechanical engineers. The cover includes any negligent act, negligent error or negligent omission; with the option to also include libel and slander (including malicious falsehood); loss or damage to documents; dishonesty of employees; prior acts; and extended reporting. As a professional it is important to assess your risk and consider coverage, because as an independent, you do not have the financial resources of a big company to back you up in the event of a client lawsuit. Remember that whilst you may be satisfied with your work, if you do not meet client expectations, your business could face sizable claims for compensation and legal defense costs. Therefore, Professional Indemnity Insurance that defends you from disastrous financial loss, in this light is more of a necessity. When choosing an insurer, it is important to choose one that is financially secure and able to meet claims in the long term. Middlesea Insurance is a leading provider of

insurance in Malta and a member of global insurance group MAPFRE. cc Middlesea Insurance p.l.c. (C-5553) is authorised by the Malta Financial Services Authority to carry on both long term and general business under the Insurance Business Act, 1998. COM 19112014 868.

Tourism as a generator of economic value in Gozo Tourism is a mainstay of economic activity in Gozo. Gozo’s seclusion and insularity can provide added value to overcome the challenges which tourism currently faces. Government has come a long way to try to overcome these challenges through a number of initiatives and projects which are now being completed. These include the projects being undertaken as part of the Cittadella Master Plan and the undertaking of certain conservation projects such as the restoration of the Banca Giuratale. However, it is not only the cultural heritage which makes Gozo attractive. Its rural landscape dotted with restored houses of character and farmhouses can provide the ideal space for one to relax and find oneself. Its countryside, characterised by lush green carpets which envelope the island during the winter and spring months, can provide the ideal escape from the hustle and bustle of daily life. Moreover, a walk along Gozo’s spectacular coastline, which has provided FEBRUARY / MARCH 2015

Club Med II and Seabourn Legend berthing off Mgarr, Gozo (photo by Daniel Cilia, courtesy of www.visitgozo.com)

the background for many a cinematographic endeavour, can provide added value to one’s stay in Gozo. From a purely cultural perspective Gozo also has much to offer. Its patrimony is constantly being enriched by the sheer work and dedication of a budding voluntary sector. The two operas held annually in October, and the Gaulitanus and Mediterranea festivals are some of the highlights of an already active cultural calendar. The Government is building on these strengths to look into the future. Government’s proposed Tourism Policy 2015-2020 sees the development of Gozo’s potential as a distinct tourism destination.

The Ministry for Gozo is already active in this area, as it has secured EU funding for a digital marketing campaign to be conducted in 2015. A key part of Government’s vision focuses also on maritime tourism. Within the context of the European Commission’s emphasis on Blue Growth, the Government is investing heavily to further strengthen coastal and maritime tourism in Gozo. The investment to be undertaken on the new buoy in Xlendi and the process currently underway following the international call for expression of interest for the development of a cruise liner terminal and a yacht marina in Gozo show Government’s active commitment in this sector. cc 101


CC MEET THE ARTIST

A life of dance Internationally renowned dancer and artistic director of recently set up national dance company ŻfinMalta Mavin Khoo talks to Sarah Micallef about his life’s work and his aspirations for dance in Malta.

Photo by John Grech

M

alaysian-born to a Chinese father and Sri Lankan mother, Mavin Khoo has no problem stating that his “whole life has been dance”. Attending his first class at the tender age of five, the artistic director knew it would shape his life from that point forward. “I knew it was going to be what I do for the rest of my life. I knew from the first class that it was something that I wanted to do every day for many hours.” In fact, at just 10 years old, he left home to study dance full time in India, moving on to New York at 17, and London a year later. Looking back on his development, he considers himself very lucky that things happened as they did. “I was very fortunate that a lot of things happened in my life that were determined by destiny. I was very lucky in terms of the kind of teachers that happened to come at the right time for the right age I was,” he explains. 102

Photo by Alan Carville

“I knew from the first class that it was something that I wanted to do every day for many hours.” FEBRUARY / MARCH 2015


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“You can rehearse and rehearse, but only when you are in the live context, with an audience watching you that you can understand whether what you are doing is getting through to the audience.”

For Mavin, simply saying he loves to dance is “an understatement”. Having started so young, he feels that dance defines who he is as a person. “In a way, when you say ‘I love to dance’, it’s a very external, intangible thing with which you’re having a relationship, but dance is who I am.” Accepting that this can be a blessing as well as a curse, he reveals going through somewhat of an identity crisis some years back, in which he rebelled against the hold he felt that dance had over him. But, he recalls with a smile, “I still danced every day, because that’s who I am. It’s a very interesting relationship.” Since that time, Mavin has accepted that dance is his life. With this acceptance came a different approach to his work. “There is no longer the urge to be competitive as a dancer – instead, I feel more of a responsibility to my art, to what my teachers have given me. The search is a very different search, and that’s quite a beautiful place to be in,” he says.

Christina Aquilina and Niels Plotard in ‘Kick the Bucket’ by Ivan Perez. Photo by Emma Tranter

Photo by Haris Jalaludin FEBRUARY / MARCH 2015

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“[ŻfinMalta] helps families to see that dance can be a profession.”

Florinda Camilleri and Kostas Papamatthaiakis in ‘Selah’ by Jose Agudo. Photo by Emma Tranter

Speaking of the evolution of his technique over the years, Mavin maintains that at heart, he is a classicist, but gives it a broader description than what many may associate it with. Having been trained as a classical dancer and worked within the strict, traditional classical context for many years, he believes that the more you work at something and the more you immerse yourself in it, the more you are able to understand its pliability. “You have to go through many years of being very framed in

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order for you to find freedom,” he maintains, “I’ve come to a point where I feel very free. My notion of classicism is much more expansive than what you’d read in a book, because it’s lived.” Going on to explain that the idea that classical dance is not contemporary is somewhat dated; Mavin asserts that the art form has evolved in a fluid way, making it impossible to assign a distinct label to it. “For me, classicism is really about allowing your body to go beyond its physical limitations.

This occurs very much in contemporary dance as well. As a dancer I’ve evolved a lot in that my perception and intention in what I do has expanded, so I’m much freer with my body. I don’t feel like I’m no longer a classicist because I move my body in a particular way. Actually, it’s because I understand that classicism is so open, that it has so many doors, that I feel free to do it,” he continues. Speaking of his creative process as a dancer, Mavin explains that for him, the most important thing is silence, “to come into a space and submit to the demands that have been asked of me in that space.” These demands, he explains, challenge the way he will think and move. “Then, it is about trying to understand what the choreographer wants out of this work, and how best my body can serve it.” Then comes interpretation. “You can rehearse as much as you want, but the real point when you start to learn how to make the work what it is, is when you start performing it. You can rehearse and rehearse, but only when you are in the live context, with an audience watching you that you can understand whether what you are doing is getting through to the audience.” His choreography work has its own creative process. To start, the theme has to be true to his heart – “it has to always have a biographical resonance.” The next step is research. “I like to really understand the context of what I’m doing, from a political,

Dancer Caroline Mougenot in class. Photo by Emma Tranter FEBRUARY / MARCH 2015



CC MEET THE ARTIST

ŻfinMalta’s season is set to take place from 11th to 15th March, and will be made up of four works.

social and artistic context, to see what that concept is, as a form of discourse.” A fan of the cinema and art film, he then conjures images in his mind of what the piece should look like, giving an example, “I might have an image of water, and someone underwater, and that will become the starting point of my piece. So I know, for example, that there has to be a point where there is water, with someone dancing under the water. Through that, the piece starts to build.” Moving on to recently set up national dance company ŻfinMalta, for which he has been appointed artistic director; Mavin states that he is excited about his role, and the company’s prospects. Made up of an ensemble of four Maltese and four non-Maltese dancers and two apprentices, Mavin’s aim for it is “to make it a world class company”. In order to achieve his goal, he knows that “I would really have to negotiate in terms of the creation and the remounting of works that would be at the level of the international market, and develop audiences in Malta to critically appreciate that kind of work.” Within the local context, Mavin believes that once the seeds are sown, they will come to fruition in the form of a general understanding and an audience that knows how to appreciate contemporary dance. “Great art is about creating discourse,” Mavin says. “My aim is to enable people to have the choice – first of all for it to be there, and to be perfectly open to the fact that someone can say ‘I don’t like it, I don’t get it’. Some people will get it, and the fact that they have a choice to get it, or a choice not to like it, is important.” ŻfinMalta will serve this purpose, via three strands. The first is performance work, of which Mavin explains, “our aim is to commission international choreographers and develop the skills of local Maltese choreographers, to create new work for the company. We also invite choreographers to remount or restage a work that they have already made.” The second aspect is education: “we will be designing programmes where we work with schools to introduce creativity and movement to children, which can be linked to what they study within the national curriculum.” Thirdly, as a government funded company, Mavin maintains that it is their duty to “take it to the people, before we even expect them to come to the theatre.” Speaking of local dancers’ potential within ŻfinMalta, Mavin is certain that when the company premieres in March, audiences “will not be able to tell the difference between the Maltese and non106

Photo by John Grech

Maltese dancers”. While acknowledging that working full-time within a company affords a far more immersive experience, he believes that there has always been a strong community of semi-professional dancers on the island, and, “in a way, this is why this company exists now – because it helps to create a particular benchmark, it helps families to see that dance can be a profession.” Another concern for Mavin in relation to ŻfinMalta is developing and reflecting a Maltese identity. He is cautious of the fact that it is fluid and complex, maintaining, “it is impossible to define, because Maltese identity shifts every day.” As the artistic director, Mavin refuses to simplify it using certain representational codes that might imply Malta, such as certain kinds of music or language, calling them simplistic. “We have to consider that Malta is EuroMediterranean, and therefore, it is much more of a hybrid. It is our responsibility as an arts organisation to reflect hybridity in many layers. I think that one of the most important things to do is ensure that the eventual construction of identity that we have in the company is truly reflective of

what Malta is, which is not exclusive,” he says. As for ŻfinMalta’s first offering, Mavin informs me that its first season is set to take place from 11th to 15th March, and will be made up of four works – two by major international choreographers Jose Agudo and Ivan Perez, one by himself and another by local choreographer Francesca Tranter. The artistic director is excited about the launch, asserting, “I feel that the company is now ready to be seen. I am absolutely thrilled and very grateful for the support, belief and investment that has come from the international community of dancers for this company. We have been very fortunate that the kind of people, who have come to coach and rehearse, come from major companies around the world.” Looking towards the future, Mavin has a five-year plan for the company which involves developing work that can tour around the world. “I have an idea in five years in terms of the kinds of theatres I see this company performing in around the world, the stature that it will have, and therefore the impact that it will have on culture in Malta,” he concludes. cc FEBRUARY / MARCH 2015




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