The Commercial Courier December 2015/January 2016 by Content House

THE COMMERCIAL/63

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

DECEMBER 2015 / JANUARY 2016

Back to our roots

Victor Agius merges past with present

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE THE IMPACT OF THE TRAFFIC CHAOS ON THE ECONOMY / THE FUTURE OF THE RETAIL INDUSTRY / REGENERATING MRIEHEL INDUSTRIAL ESTATE / SOCIOLOGIST MICHAEL BRIGUGLIO ON MAXIMISING ECONOMIC GROWTH / ANALYSIS OF THE MAIN SOCIO-POLITICAL EVENTS IN EUROPE IN 2015 / TRANSFORMING HISTORIC PROPERTY IN THE CAPITAL / THE LATEST BUSINESS NEWS

THE COMMERCIAL/63

COURIER DECEMBER 2015 / JANUARY 2016

109.

food trends

42.

12 COVER STORY

101.

MALTA’S TRAFFIC SITUATION REACHES FEVER PITCH

77 DESIGN TRENDS CONTEMPORARY LUXURY AGAINST A HISTORIC BACKDROP

Sarah Micallef looks into the traffic situation in Malta, which has come to a head in recent months, with reports of gridlock traffic, bad infrastructure and congested roads dominating the news and social media.

Martina Said meets Peter and Sandro Valentino, founders and architects at Valentino Architects, to discuss one of their recently-completed renovation projects in the capital.

19 IN FIGURES CARS IN MALTA… IN NUMBERS A look into the figures related to cars in Malta.

77.

95 CURRENT AFFAIRS EUROPE IN 2015: A SOCIO-POLITICAL PERSPECTIVE

42 INTERVIEW SUSTAINING GROWTH

21 COVER STORY MENDING MRIEHEL

Sociologist and environmentalist Michael Briguglio tells Marie-Claire Grima how environmental sustainability and economic growth can co-exist.

Following the announcement of a masterplan to regenerate Mriehel Industrial Estate, Jo Caruana asks local business owners what should be tackled first.

49 COVER STORY

27 BUSINESS

LOOKING AHEAD TO THE FUTURE OF MALTA’S RETAIL INDUSTRY

MALTA CHAMBER AND CONTENT HOUSE TO LAUNCH NEW BUSINESS PORTAL IN 2016 Martina Said learns about new and ambitious digital projects between the Malta Chamber of Commerce and leading media company Content House, and what they will bring to the local business community.

58.

Martina Said speaks to some of the retail industry’s leading players to find out where its future lies.

101 MEET THE ARTIST THOUSANDS OF YEARS IN THE MAKING Sarah Micallef takes a trip to the sister isle to learn about Gozitan artist Victor Agius’ deep connection with the earth, and the way in which the tangible link with humanity’s roots comes through in his work.

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.

Publisher

style review

Jo Caruana speaks to two expert analysts for their thoughts on the major socio-political challenges for the EU in 2015, and their suggestions for 2016.

Editor

Kevin J. Borg Editorial Coordinators

Sarah Micallef Edward Bonello

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ON THE COVER Detail of work by Victor Agius. Photo by Alan Carville

Malta chamber’s bronze collaborating partners DECEMBER 2015 / JANUARY 2016

CC Editorial

A platform of opportunity The Commonwealth Business Forum, and the Commonwealth as an organisation can play an important and determinant role in helping smaller countries like Malta internationalise. The Malta Chamber was pleased to contribute directly in the Commonwealth Business Forum in November, as it pushed Malta’s business priorities on the agenda.

n its Economic Vision document, the Chamber sustains that Malta must position itself as a global hub for business and investment that will lead to increased prosperity. Our islands have a long tradition of international business which dates back to the time of the Phoenicians. As one of the world’s most open economies, today and in the coming years, ‘outwards’ has become the only direction businesses should look, as prosperity is propelled by international business. The same unique characteristics that have so well contributed to Malta’s economic success, such as our strategic geographical position and our smallness, also tend to pose serious challenges in the pursuit of our vision. DECEMBER 2015 / JANUARY 2016

In such attempts to venture beyond our national confines, operators are hampered by economies of scale restrictions which are further compounded by additional costs, like transport costs to ship raw materials in and the finished product back out to its intended market. Operators on the mainland are spared from similar disadvantages. Besides such difficulties which are directly related to production and logistics, economies of scale also come into play to increase the cost-base in an indirect manner. The growth registered in our recent past has come principally through the penetration of markets in Europe and North Africa; however, for a variety of reasons, these markets have become increasingly unstable. By 2050, none of the European member

states are projected to be among the world’s largest economies. Malta, therefore, needs to choose very diligently as one dubious decision can affect us and our future economic performance significantly. This is where the Commonwealth comes in. Malta, and all the other 52 members must leverage the contacts and benefits that this strong but latent network can offer.

“One dubious decision can affect us and our future economic performance significantly.” 09

CC Editorial

â&#x20AC;&#x153;We must exploit our membership in the Commonwealth as a platform of evolving economic trends where business opportunities constantly arise.â&#x20AC;?

In so doing, we must exploit our membership in the Commonwealth as a platform of evolving economic trends where business opportunities constantly arise and which we need to make each other aware of at a frequency that is equally constant. Addressing the plenary session on the opening day of the Commonwealth Business Forum, Malta Chamber President Anton Borg called for the establishment of a Commonwealth Chamber of Commerce, which would bring together Chambers of Commerce and Business Federations from across the Commonwealth in a bid to facilitate business and investment collaboration. The pan-continental association would work on the same lines of similar organisations such as EUROCHAMBRES and ASCAME, which have successfully worked toward the improvement of businesses conditions across regions and facilitating access to new markets. After all, the Commonwealth is, above all,

Photo by CHOGM Malta 2015

a coming together of people who are willing and able to engage with one another to maximise the opportunities that arise and to develop close and lucrative economic ties. The Commonwealth offers us the ideal platform on which we can share our strengths, bring about collaboration and aspire for more economic prosperity. The

Malta Chamber believes that through the appropriate political, environmental and economic conditions we can successfully shape the present and future of island states and identify how our strengths and limited resources can be turned into opportunities and used to overcome the threats and uncertainties that may loom before us. cc

CC COVER STORY

Malta’s traffic situation reaches fever pitch The traffic situation in Malta has come to a head in these past months, with reports of gridlock traffic, bad infrastructure and congested roads dominating the news and social media. Earlier this year, a study by the University of Malta’s Institute for Climate Change and Sustainable Development found that Maltese drivers spend a total of 52 hours in gridlock traffic every year – a fact which is hardly surprising, considering that Maltese roads are perceived as the fifth worst in Europe, according to European Commission transport directorate policy analyst Guus van de Schouw. But, apart from increased bouts of road rage, what impact does the current situation have on the country, and the economy? Sarah Micallef asks the experts.

iriam Camilleri, Chairperson of the Chartered Institute of Logistics and Transport (CILT) in Malta believes that the current traffic situation is in crisis, and has been escalating over a long period of time, though perhaps at an even more alarming rate in these past months. “The problem is multi-faceted and there is no magic wand that can put things right by one wave of the hand,” she says. Pointing to the “lack of professionalism and the self-centred and narrow minded approach by all stakeholders” as the root of the problem, Ms Camilleri applies this to both national and local authorities, road planners and engineers, road builders and enforcement agencies along with road users themselves. “If we are honest enough, we should admit that the whole spectrum is somehow at fault, with none of us ready 12

to admit that we are not living up to our responsibilities,” she says. According to Prof. Maria Attard, Director at the Institute for Climate Change and Sustainable Development at the University of Malta, various studies continue to show that the dependence on travel by car has increased in Malta – a fact that certainly doesn’t help matters. “The 2010 National Household Travel Survey shows that over 70 per cent of all trips are done by car, and the recent study by the Institute for Climate Change and Sustainable Development shows that congestion is very high in Malta and is showing signs of deterioration over time,” she states. These studies confirm our car dependence to be one of the highest in the world – but what has caused this? Prof. Attard maintains that the causes run the gamut

from increased household income to a lack of investment on effective public transport systems and spatial planning, which fail to integrate the location of particular land uses and accessibility, as well as a systematic removal of space for people on our roads in order to accommodate vehicles and parking. Angelo Xuereb, Chairman and CEO of AX Holdings Group is in agreement, making reference to a combination of higher disposable income which has made cars more affordable, along with challenges in public transport as being the primary factors which have led people to resort to using cars to get about. “Undoubtedly, once people realise the convenience of owning a car, it is hard for them to turn back to using public transport. This trend is likely to continue as the economy expands. “Road infrastructure development DECEMBER 2015 / JANUARY 2016

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“We have seen a deterioration of enforcement over the years and this has allowed many to disregard rules upon which systems are designed. One cannot expect a road network to function effectively if rules embedded in its design get compromised.” Maria Attard, Director, Institute for Climate Change and Sustainable Development

has not kept pace with the increase in transport and principally the design of road junctions leaves much to be desired, causing bottlenecks. Furthermore, instead of taking steps to make public transport more efficient, steps have been taken to make it more convenient – these are not the same thing. There are too many bus stops, slowing down journey times. People need to get from A to B in a short and predetermined time, and putting more stops on a route lengthens journey time,” he asserts. Indeed, according to Sergio Vella, Vice President of Manufacturing Operations – Western Europe at Actavis, the current traffic situation is one of the major issues that needs to be addressed. “It is costing time and money to passengers, drivers and especially employers. It is also perceived very negatively by tourists and is aggravating environmental air pollution in our islands. The latter is a situation that needs significant attention if we are really serious about environmental sustainability,” he warns.

Certainly, on the business end, Franco Azzopardi, Chairman and CEO at Express Group believes that having over 300,000 cars on the road, the roads and space being what they are, coupled with the propensity of the Maltese towards using their private car versus public transport or two-wheelers aggravates the traffic situation. “I think this is inevitable considering the original scope of build of the road system in contrast to the changes in public transport and increasing population due to foreign workers and tourism. Public transport cannot be improved without reducing traffic on the roads,” he maintains. Glenn Bonello, wedding car specialist and cab dispatcher at Wembleys Motors further hammers the point home, asserting, “I have never seen such traffic in my four years of experience in driving. One morning, it took over two hours to arrive from my home in Rabat to work in St Julian’s. This is disgraceful, apart from roadworks that cause more chaos.”

“The problem is multi-faceted and there is no magic wand that can put things right by one wave of the hand.” Miriam Camilleri, Chairperson, Chartered Institute of Logistics and Transport DECEMBER 2015 / JANUARY 2016

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“Road infrastructure development has not kept pace with the increase in transport and principally the design of road junctions leaves much to be desired, causing bottlenecks.” Angelo Xuereb, Chairman and CEO, AX Holdings Group

So, viewing the chaotic traffic situation in concrete terms, what is the cost of the congestion to the country? Entrepreneur Jonathan Shaw makes an attempt at calculating this cost, basing his estimate on a local workforce of 190,000 and the assumption that 50 per cent of those workers waste an average of 30 minutes a day in traffic, parking or commuting. “Should

one value this lost time at an average rate of €10 per hour, the annual cost of lost productivity will stand at an incredible €124 million,” he explains, warning, “if congestion is not drastically addressed and it gets worse, it might well cost the country €1 billion in five years’ time.” The effect is more far-reaching however, with costs related to the extra fuel used, lack of accessibility, the increase in pollution and traffic accidents also needing to be taken into consideration. Prof. Maria Attard refers to a study carried out this year by the Institute for Climate Change and Sustainable Development, which showed that external costs of passenger and commercial vehicle use are costing the economy a total of €274 million. Shedding light on the seriousness of this number, she adds, “this is equivalent to four per cent of the GDP.” Building on this, Sergio Vella asserts that the fact that an increasing number of people are regularly getting caught up in traffic jams implies a significant socio-economic cost. Adding to the list of mentioned effects, he posits, “the consequences of such traffic jams are delays in starting work, missed meetings and appointments, as well as late deliveries. Costs related to traffic accidents, air pollution, climate change and noise are further significant aspects of this problem.” On a business level, as Express Group Chairman and CEO Franco Azzopardi maintains, both businesses in the service industry as well as businesses that require the movement of cargo and goods are affected. “Commuting is eroding away at personal time and quality of life. Delivery times for goods transported to destinations are becoming ever lengthier with the consequence of creating inflationary pressures that are domestically driven,” he affirms, pointing out that there are many moving parts affecting the economy that are directly dependent on road use. As befits the multifaceted nature of the problem however, there appears to be a consensus that there is no single solution to tackle the traffic situation. According

to Prof. Attard, the reality is that there are still too many fundamental problems with the basics of our transport systems to even contemplate one solution which will resolve the congestion problem. “A medium-tolong-term strategy is required which brings

“[The traffic situation] is costing time and money to passengers, drivers and especially employers. It is also perceived very negatively by tourists and is aggravating environmental air pollution in our islands.” Sergio Vella, Vice President of Manufacturing Operations – Western Europe, Actavis

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“Commuting is eroding away at personal time and quality of life. Delivery times for goods transported to destinations are becoming ever lengthier with the consequence of creating inflationary pressures that are domestically driven.” Franco Azzopardi, Chairman and CEO, Express Group

together both disincentives for those that wish to travel by car and rewards for those that opt for other modes such as walking, cycling, ferries and public transport systems,” she asserts. Meanwhile, infrastructures such as roads, pedestrian areas, open spaces and public transport require significant investment to upgrade. “Education is also important. Many do not understand the implications of car use on public health, the environment and the economy,” she continues, adding that enforcement is another critical area. “We have seen a deterioration of enforcement over the years and this has allowed many to disregard rules upon which systems are designed. One cannot expect a road network to function effectively if rules embedded in its design are compromised,” she says. “The science of transport is multidiscipline, multi-sectoral and multi-level, explains CILT’s Miriam Camilleri. “The multi-discipline approach cannot be ignored, for example sea lanes versus motor lanes. The multi-sectoral involvement is obvious: the authorities, the providers, the users and other third parties. The multi-level spectrum: academic and high-level at one end and at DECEMBER 2015 / JANUARY 2016

the other end the education of the general public going down even to the very young generation, who may be our only hope.” Indeed, Actavis’ Sergio Vella also believes that a mix of short- and long-term measures are required, including an effective public transport system that meets the public’s requirements and encourages people to use it instead of their personal transport; an efficient harbour ferry network; incentivising the use of school transportation rather than parents driving their children to school; a professional assessment of the number of inadequately designed roundabouts and dedicated bus lanes; increased safety on our roads; proper road maintenance programmes to improve the quality of our roads and reduce accidents; proper enforcement of no parking areas and clamping down on abusers who park indiscriminately; as well as the introduction of the UBER system, as has been done in several European cities. Franco Azzopardi agrees that there is no single solution, rather, “an orchestrated effort of push-pull forces put in play.” He mentions incentives towards small cars or penalties for larger cars on a usage basis, maintaining that car registration costs should not be part of the equation. “A small utility car should be compellingly cheaper to use every day than a massive SUV-type vehicle, in terms of parking costs, road licence for use during rush hours and so on,” he asserts. Another suggestion he proposes is a special vignette for rush hours, which could see carpooling incentivised during rush hours, or even penalties for non-compliance. Moreover, he adds, “if road usage is lightened, efforts to improve public transport could be more effective.” Angelo Xuereb, meanwhile, has his own recommendations. For the short term, he feels that tackling bottlenecks at road junctions could just be down to better traffic management. “Many roundabouts are too small, especially when these are located between two, three, or more major roads. Where possible, these junctions should incorporate exit lanes which bypass the use of a roundabout and direct you straight to another major road,” he explains. Other short-term solutions include capping the number of cars on the roads by encouraging buyers of new cars to scrap an old registered vehicle, the creation of an additional lane on some major roads, better traffic management when road works are in progress, and a direct connection between Sliema, Valletta and Cottonera, which he feels will encourage people to use this mode of public transport. On this note, AX Holdings has recently proposed an investment of €10 million in alternative transport links within the Grand Harbour and Marsamxett areas in response to a call by Projects Malta. The proposal features a ferry link from Sliema to Cottonera, by way of a tunnel beneath Valletta. However, this has yet to be

evaluated, following which negotiations will start if the project meets the criteria set in the Request for Proposals issued last August. On a medium-term, Mr Xuereb notes the need to create a number of bypasses with a minimum number of traffic lights and junctions; adequate alternative diversions when road works are taking place; and a bridge that joins Salina and Qawra. As for the long-term, he feels that “there is no option but to invest in an efficient integrated public transportation system that includes an underground and elevated monorail system that handles almost all the commuters using the public transport on a 24/7 basis.” Finally, all potential solutions and recommendations aside, one thing is clear: something must be done, and fast. As Mr Shaw puts it, “if the full social cost is included in the decision-making framework, then things are placed in the right perspective and priority… the €1 billion that will be lost over the next five years should instead be allocated and invested in a state-of-the-art infrastructure solution. Not only will it be paid back in five years’ time but it will serve to generate further economic benefits through the external improvements of dayto-day life and urban living in Malta.” cc

“If congestion is not drastically addressed and it gets worse, it might well cost the country €1 billion in five years’ time.” Jonathan Shaw, Entrepreneur

CC in figures

IN Figures

Cars in Malta

608

the number of cars there are for every 1,000 persons in Malta

the number of EU member states which have more cars per capita than Malta â&#x20AC;&#x201C; Luxembourg, Italy and Lithuania

per cent

of cars in Malta are less than 2 years old

just under a third of all cars in Malta have diesel engines

5,267

per cent more than half of all petrolfuelled cars in Malta are classed as having small engines

per cent

cars in Malta that are more than 10 years old make up the majority

three out of every five newly-registered cars in Malta run on petrol

per cent

the EU member states which have more diesel cars than petrol cars â&#x20AC;&#x201C; Belgium, Spain, Lithuania, Luxembourg and Austria

the number of newly-registered cars in Malta which use diesel

the number of new passenger cars in Malta which run on alternative fuel

out of 36 European countries evaluated by Eurostat have a higher number of alternative fuel vehicles than Malta

Source: Eurostat

nearly one-fourth of all cars in Malta are between 5 and 10 years old

Source: Malta International Airport DECEMBER 2015 / JANUARY 2016

CC COVER STORY

Mending Mriehel Workers in Mriehel are plagued by discarded rubbish, filthy surroundings, terrible roads and a severe lack of parking. But now that a masterplan has been set in motion for this area, Jo Caruana asks local business owners what should be tackled first.

Bjorn Azzopardi

Liz Barbaro Sant

9am and the roads leading into Mriehel are completely congested. Workers and business owners face the same daily struggle – massive trucks clog up the arteries, huge potholes create death-defying car hazards, and the lack of cleanliness… well, that could even pose a serious health risk, as waste collection here simply doesn’t happen. It is a veritable no-man’s land, with no management and, quite clearly, no planning. “Mriehel severely lacks infrastructure,” says Bjorn Azzopardi, the CEO of web company Think. “Proper roads are nonexistent, cleanliness leaves much to be desired and rain water management is a constant nightmare. “Waste collection in particular is an issue as it simply doesn’t exist, because both the relevant Local Councils and Malta Industrial Parks (MIP) refuse to take ownership of the area. This has been a problem for a while now, and there certainly doesn’t seem to be an end in sight.” DECEMBER 2015 / JANUARY 2016

Duncan Agius

Agreeing, Duncan Agius, the managing director of Electrical Supplies & Services (ESS), stresses there are many issues when it comes to doing business here. “Traffic management is a major hurdle,” he says. “This is in part because of the high population of the area, but also because Mriehel is used as a thoroughfare. In my opinion, this is felt by the business owners, employees, and the general public (our clients) in terms of congestion and parking requirements. That said, I don’t think that this problem is unique to Mriehel – it seems to be becoming a nationwide issue.” Asked about her main areas of concern, Liz Barbaro Sant the director of Alberta – a business long based in Mriehel – also highlights the traffic situation, as well as the need for improved transport links, the dire need for road upgrading and, in some cases, total reconstruction, as well as improved lighting, landscaping and waste collection. “The mixed ownership of the many

Sara Grech

businesses here does pose a challenge because there are a lot of different agendas on the table at the same time,” she says. Now, though, a plan is being put in place to bridge all of these gaps and try to mend Mriehel. This masterplan, as it is being called, will include a plan to regenerate the Mriehel Industrial Estate into a business hub. And, while announcing in the recent Budget that this will get started next year, the Prime Minister also stated that the Government will be establishing a PublicPrivate Partnership (known as PPP) to revamp and upgrade the whole of the Mriehel Industrial Zone. Some business owners have been sceptical about how this will work, especially when it comes to blending the many roles that this area has to play – including as host to factories, warehouses, huge showrooms and modern offices. But, Ms Barbaro Sant believes that, “if everyone is involved and committed, and there is a willingness to see 21

CC COVER STORY

“A long-term vision is vital if we want to transform this zone into a mini Canary Wharf.” Liz Barbaro Sant, Director, Alberta

the bigger picture and common good, then these challenges can be overcome. Mriehel needs a holistic approach for regeneration. A long-term vision is vital if we would like to transform this zone into a mini Canary Wharf.” Now, the companies working on the PPP are all setting priorities for improving Mriehel into a modern and attractive industrial area,” she continues. “The Government has committed to extending 50 per cent of the final approved expenses, so we are working with them on the plans for this. Naturally, all the areas earmarked as a priority need to be discussed, reviewed in detail, approved and, subsequently, implemented.” Mr Agius agrees it would definitely help for there to be a clearer vision for the area in terms of planning, regeneration and continual improvement. “Hundreds of millions of euro are invested by the private sector into this area. Now, Government funding is essential to ensure that targets are met and infrastructure projects in the area materialise. I think the setting up of the PPP augurs well and that a clear vision will be established.”

Giving his input on what should be prioritised, Mr Azzopardi stresses that Mriehel needs to be properly represented and managed by one entity – something that is sorely lacking at the moment. “I think the Government is on the right track by setting up a public-private partnership to help the area regenerate itself into a business hub,” he says. “I believe this entity should work on improving the road infrastructure and better organise signage and pedestrian access. It should look into the various businesses that exist so as to better understand their operational requirements, as well as consider the needs of all the employees that make their way to and from Mriehel daily. Given the access to the investment required and the correct management of these funds, I believe

the regeneration of Mriehel will be beneficial to both the users as well as the investor.” Looking to the future, it seems that – despite the shortcomings – many new business owners are considering Mriehel as a solid base. Among them is Engel & Völkers Sara Grech Malta, a company that sees around 200 people walk through its doors every day. “Location was definitely a factor when we chose to move from Gzira to Mriehel, and make it our main base,” says CEO Sara Grech. “Our agents are out and about a lot, so the road connections make it easy for them to get north, south, east or west. “I also feel this is the place to be, with many of the largest, growing companies on the island now based here.

“I think Mriehel needs to be properly represented and managed by one entity.” – Bjorn Azzopardi, CEO, Think 22

DECEMBER 2015 / JANUARY 2016

CC COVER STORY We were able to find a large-enough building to accommodate us, and one which could be transformed to suit our needs. I really can’t express just how happy we are to be here – our agents and staff are over the moon. This was definitely the right move for us. “Now, we’re looking forward to learning more about the masterplan, which I believe will be a fantastic move for the area, and for Malta,” Ms Grech concludes. cc

“Government funding is essential to ensure that targets are met and infrastructure projects in the area materialise.” Duncan Agius, Managing Director, Electrical Supplies & Services (ESS)

“I feel Mriehel is the place to be, with many of the largest, growing companies on the island now based here.” Sara Grech, CEO, Engel & Völkers Sara Grech Malta

CC BUSINESS

Malta Chamber and Content House to launch new business portal in 2016 2016 will prove to be an exciting year marked by new and ambitious digital projects for both the Malta Chamber of Commerce, Enterprise and Industry as well as leading media company Content House. Martina Said discovers what the two organisations have in store for Malta’s business community for the second quarter of 2016.

here’s no mistaking that until now, Malta has lacked a robust and allencompassing online presence in the local world of business-to-business. But this will all change in 2016, with the launch of a comprehensive digital platform spearheaded by two organisations – the Malta Chamber of Commerce, Enterprise and Industry and Content House – that, for over a decade, have collaborated on and delivered a range of successful media products. This new project, however, which is comprised of three different brands, will mark a new milestone in their portfolios. Not only will it usher in first-of-their-kind products that had been missing on the market, it will also expand their business-to-business reach with a new online medium that complements all other media that they offer in this area. The project encompasses three autonomous but complementary areas: a fully-fledged business portal that will generate an extensive range of content; a business-to-business directory and a weekly digital newsletter. Kevin J. Borg, Director General of the Malta Chamber of Commerce, Enterprise and Industry, says the Malta Chamber has long felt the need to move with the times while also ensuring that its communication strategy is both extensive and modern. “We have joined forces with Content House, our exclusive media partners, to extend our present range of print projects with three ambitious digital projects.” The first is the launch of a full-blown business portal, which is a first locally and will use the domain that currently houses the Malta Chamber corporate website, www. maltachamber.org.mt. The function of the site as it is today will be included as a section within the new business portal. “It will include news, developments and announcements related to the activities and work of the Malta Chamber, but for the first time it will also include local and foreign business content updated regularly through a pool of resources by the two organisations.” Jesmond Bonello, Managing Director at Content House adds that the business portal will follow recent international trends where aggregate content is gaining popularity. “The portal will feature latest business and financial news as well as interviews, blogs and analysis. For the first time, business people can get up to speed with events in the business world by going through this official channel.

DECEMBER 2015 / JANUARY 2016

The Commercial Courier, the official publication of the Malta Chamber of Commerce, Enterprise and Industry. In the background: The Malta Chamber’s Economic Vision 2014-2020 and Malta Business Bureau’s Annual Report 2014.

CC BUSINESS

The Business Observer, Malta’s leading business newspaper, distributed with Times of Malta - a joint venture between Allied Newspapers Ltd and Content House Ltd.

There will be a range of lighter reads too for people to enjoy in their downtime, namely features on motoring, food and drink, art and design, and more.” The second project is an official businessto-business directory, branded as a B2B Directory. “In the past, we had a printed version of a so-called Trade Directory, but felt the need to launch an intuitive and interactive business directory to serve the needs of many foreign businesses looking for partners or services in Malta, who frequently approach us to find out what Malta offers and how it can be of value to them. This will also help local businesses find the right partners, services or products,” explains Mr Borg. “There will be two types of listings: an entry-level listing and a full listing. All members of the Malta Chamber will be entitled to a free entry-level listing, which they can upgrade according to their wishes. Non-members will pay a very reasonable fee for a basic or full listing.” Mr Bonello adds that the directory’s intention is not to compete with mainstream business-to-consumer directories. “The idea here is to have an official source that will give foreign and local businesses not just a telephone number or a name, but extensive corporate and business knowledge about each company. It will be aimed at increasing valueadded to both the businesses featured in the directory, as well as those that will be using it.” The third area will involve the revamp and strengthening of Chamber Link, a tool which has enjoyed significant success since its launch. “Chamber Link will be given a new look and feel, using the latest technological as well as creative trends. As part of our 28

communications strategy, we want to exploit opportunities and reach out to members in other ways too, namely through national conferences, which we will organise.” The revamped Chamber Link will be open for static banner advertising for the first time since its inception, which will complement animated banner advertising in various sizes on the main business portal. “We have thousands of corporate clients in our

database,” says Mr Bonello, “and the demand for digital corporate advertising is already apparent. Businesses that are interested in these projects can contact us already – we shall be launching the products on the market in January 2016, and for five full months, businesses will have the opportunity to come on board with our pre-launch offers until the projects go live in May.” The Malta Chamber and Content House

“There was a strong need for modern digital projects in this field, and we are filling that gap in the market.” Kevin J. Borg DECEMBER 2015 / JANUARY 2016

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“There is a whole new generation of business people out there, and I’m sure they would welcome all that these projects have to offer.” Jesmond Bonello

already enjoy a fruitful and long-standing relationship of over 10 years, therefore partnering up for this digital project was a natural development for both organisations. It is also another feather in the media company’s cap, which already enjoys a significant market share in the business-tobusiness and corporate advertising market. Content House publishes The Commercial Courier magazine, The Malta Chamber’s Annual Report and the Economic Vision annual magazine, all of which are projects in conjunction with the Malta Chamber. It is also the co-publisher of The Business Observer newspaper, which is a joint venture with Allied Newspapers Ltd, and publisher of Business Agenda, a quarterly publication of the Malta Business Bureau, as well as the Bureau’s Annual Report. The company is backed by a strong editorial department as well as one of the largest advertising sales departments in the local media industry, which encourages Mr Bonello to invest in and exploit new projects. “Embarking on this project with the Malta Chamber was a natural next step for us to expand our corporate and business-tobusiness portfolio, and grow our business DECEMBER 2015 / JANUARY 2016

by expanding into digital as well,” says Mr Bonello. “Our print products in the corporate and business segment are strong and successful, and we believe we can replicate

that success through these new digital projects we shall be launching with the Malta Chamber.” He adds, “I have always been a strong supporter of the Malta Chamber – besides being exclusive media partners, we are also Bronze Sponsors and have always regarded the Malta Chamber as a credible and objective business institution. I believe these projects will help it interact better with modern and perhaps younger business people. There is a whole new generation of business people out there, and I’m sure they would welcome all that these projects have to offer.” Mr Borg concludes that this digital venture is a win-win not only for the Malta Chamber and Content House, but also for members and non-members of Malta’s business community. “There was a strong need for modern digital projects in this field, and we are filling that gap in the market.” Mr Bonello is in agreement, adding that, as of 2016, business people will have a credible source of information for corporate news, and who is better positioned to offer such a product than Malta’s leading business institution itself? “The Malta Chamber is the body that fights and lobbies the most in the interest of local business and, as a businessman myself, this is undoubtedly a positive step forward for Malta’s corporate community at large.” cc

Business Agenda, the quarterly publication of the Malta Business Bureau.

CC BUSINESS

All in the family The ties that bind a family together have long been found to be a great starting point for many a successful enterprise. Marie-Claire Grima talks to members from eight successful family-run businesses to see what their stories are and how their personal bonds feed and nourish their commercial ventures.

ray abela

simon cusens

george busuttil

luciana aquilina

vinny vella

fabio muscat

ernest sullivan

iannis bonnici

DECEMBER 2015 / JANUARY 2016

CC BUSINESS

u Ray Abela, Managing Director, Peppin Garage Limited – Cabs + How did Peppin Garage start? My grandfather started the business from home in the 1950s, and it was taken over by my father Alphonse Abela early in 1969. He registered his interests in a limited liability company and engaged the services of the latest generation in the family. In 2012, the company acquired full ownership of the freephone taxi or as it is better known in the market, Cabs+. Throughout the years, with plenty of forethought, the right dosage of creativity and a touch of excellence, this humble one-man operation was transformed into a fully-fledged thriving business built from the ground up, and today Peppin is one of the four big names in the land transportation sector.

background who are all working toward a common goal – that of making it happen. You have more room to dream and the free hand to experiment and put new and innovative ideas into practice.

What is the best part of forming part of a family-run business? There are various advantages to being your own boss. It gives you the opportunity to be more creative in a less bureaucratic environment. You are collaborating with people you trust and care about, people with the same

How do you keep the family aspect of the business at the forefront? While our company enjoys the close attention and support of its owners who are always at the front to lead, motivate and support our dynamic team, the company’s structure is flat and makes no distinction between family members and non-family members.

Do you think your family values inform the way you do business? Family values are definitely reflected in our corporate values, which we then transfer and transmit to our business. They play a very important role when making key decisions regarding issues such as business strategy, work motivation, job satisfaction, positive team dynamics, organisational commitment, governance, relationship with the team and direct competition as well as leadership style.

“Family values are definitely reflected in our corporate values, which we then transfer and transmit to our business.”

u Simon Cusens, CEO, Technoline How did Technoline start? The company started out in 1978 in the Libyan market as a technical services provider to big multi-national European companies. By the early 1980s, the company had branched into sales of medical and scientific equipment, quickly establishing itself as a forerunner in this field and achieving many ‘firsts’ in the healthcare and life sciences industry sectors.

“Our biggest triumph was winning Malta’s most prestigious radiotherapy project in 30 years.”

What do you like most about forming part of a family-run company? When you’re part of a family-run company, there is the element of trust which you can always rely on. Trust can be quite relative and subjective these days – it can potentially bring with it great risks to the business, so we make sure that all our staff are treated as members of a large family, with individual attention according to their intrinsic as well as extrinsic needs. My father has instilled the values that guide me in my strategic thinking, which I use to drive our organisation forward today. To a great extent, my upbringing was already greatly influenced by my father and I feel we would not be the caring organisation

we are today if it weren’t for the way he influenced all of us here at Technoline during his 33 years with us. Tell us about a challenge Technoline has faced, and a triumph it has enjoyed. Keeping up with the dynamic and everchanging technology within our sectors is always challenging. Product lifecycles are getting consistently shorter as technology progresses and develops, and with that comes the challenge posed by international mergers and acquisitions, and their effect over our principal brands. On the other hand, our biggest triumph was winning Malta’s most prestigious radiotherapy project in 30 years. It was almost equivalent to a year’s business in a single project. What’s next for the firm? Thinking about the resilience of the company for the future is important. While the family may not be eternal, the values instilled will continue to reflect the raison d’être of what we are trying to convey in terms of our quality statements and company mission.

DECEMBER 2015 / JANUARY 2016

CC BUSINESS

u George Busuttil, Managing Director, GB Jewellers How did GB Jewellers start? Jewellery has been in the family for years – my mother started her own business 65 years ago with a small showcase at her mother’s house, under the name of Antique Jewellery. However, GB Jewellers as we know it today started 32 years ago – my wife Joan and I launched it. After a couple of years in business, we formed our import company, and today we are one of the leading importers in the watches, gold and diamonds segment.

“GB Jewellers as we know it today started 32 years ago – my wife Joan and I launched it.”

How do you keep the ‘family’ aspect of the business at the forefront? Everybody knows about the enormous amount of work that has to be done to achieve the best results, so when it is work, it is work; but after work, it is family. We try to separate work at weekends, for the family to be together and enjoy each other’s company.

Has GB Jewellers ever faced a challenge that turned out to be an opportunity? Some years ago, there was a hold-up on our premises, and my wife and I were held up in the shop during the attack. We were unhurt, but the episode made us take a very big decision. We met as a family and asked each other whether we are going to let these thugs destroy our future or look ahead and continue. In the end, we took the second option and have since diversified our business and opened other shops in Gzira and Valletta. Have the all the members of the family followed you into the business? My wife and I have two children – Karl and Elaine Paula. Both of them have worked in the business however, Elaine seems to be the one more likely to continue in the same field. Our plans for the company will see her occupying more roles and responsibility within the company, taking up the mantle as a member of the third generation of jewellers in this family.

u Luciana Aquilina, Director, Calypso Manufacturing How did Calypso Manufacturing start? My husband Louis used to work for a small company that manufactured sun umbrellas. When the owner was nearing retirement, he approached Louis, who was the backbone of the company, and asked him if he would like to take over the company. Louis agreed and purchased the small manufacturing plant. He re-branded the company as Calypso and it flourished as he worked around the clock. I joined him later, first just in the accounts and finance department, but in time I got involved in the entire operation. Louis gave the company a more polished look and we added more and more products and services. While buying the company was a dream come true, running it, expanding it and making it profitable and successful became our reality. With a lot of hard work, we managed and we can confidently say that the dream was truly worth chasing. Was there ever an incident which tested Calypso’s strength? 18 years after Louis took over Calypso, when he was getting well-established and successful, a fire broke out and destroyed

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everything. Seeing it all go up in flames was definitely the toughest thing that happened to us as a team, as a family, as a business – we treasured it almost as much as a human or another living organism. It was traumatic but we picked ourselves up, showed resilience, found renewed energy and new premises, and started again from scratch. Our dream didn’t die – we revived it in a new Calypso. It took us some time to find our feet again but we did with the help of employees, family, friends, clients and suppliers. Seeing the name Calypso back in place once more after the fire saw us all shedding tears – this time of happiness at the triumph. What’s the best part of being a family-run company? We are a small company with a big heart and we treat everyone, from suppliers to clients and employees, as fairly as possible. I’ve always felt and found that employees, whether relatives or not, are loyal and feel part of the team when they are treated well. I know it sounds awfully clichéd but I do believe that all our employees are part of our family — the Calypso family.

“I’ve always felt and found that employees, whether relatives or not, are loyal and feel part of the team when they are treated well.”

CC BUSINESS

u Vinny Vella, Director, Piscopo Gardens How did Piscopo Gardens start? As a hobby! My father always loved nature and even 20 years ago, Malta lacked that green element. So he set out on his mission to make Malta a greener island by opening Piscopo Gardens. I always loved spending time with my father as well as learning and being around nature and people, so I was already a part of it, even as a teenager – now I’m leading the second generation of the company. I also feel blessed that my husband also loves nature – we’re like two peas in a pod! What’s the best part of being a familyrun company? Like any other business, it has its ups and downs, but the fact that we understand each other and can argue to our hearts’ content and not let it affect our personal relationship is great. The bond you find between employees in a family-run company is different – many times, you would have grown up with the people around you.

Do you think your family values inform the way you do business? I believe family values make up a person’s core whether we admit it or not. Our upbringing leaves a mark on who we become. Having been raised in a loving family, I do my best to share the love we have for each other as well as Mother Nature with others. What’s next for the company? Opening our new pet shop was one of our biggest triumphs – we now not only provide our clients with the accessories and food they need for all their pets, but can also see them taking home a new member of the family! We’re in the process of finalising our current refurbishment, keeping up with new trends by bringing in products on our shelves and of course, constantly improving the service we provide to our customers.

“The bond you find between employees in a family-run company is different – many times, you would have grown up with the people around you.”

u Fabio Muscat, CEO, OzoSystem

“My father has always taught me and the rest of the employees to value trust, honesty and transparency. ”

How did OzoSystem start? OzoSystem started in 1996, back then I was still a baby. My father came up with the idea of creating a leading service company in the cleaning and hospitality industry. Over the past 20 years, we have sustained our growth path through dedication and hard work, tackling seemingly impossible jobs and introducing solutions which nowadays have become the industry standard – for instance, we were the first in Malta to introduce a chewing gum removal system. We obtained a Master Dealership in Malta for cleaning local stone and ceilings without damage or business disruption, and we have worked hard to introduce environmentally friendly cleaning practices, with a strong commitment to quality standards. As a testament to this, we have obtained ISO 9001:2008 certifications.

What’s the best part of being a family-run company? Family businesses have one indisputable defining quality – the individuals reporting to one another, confiding in one another and growing the company together have a visceral understanding of what makes their compatriots tick. A family business turns that understanding into efficiency, that in turn breeds speedier management. Do you think your family values inform the way you do business? Definitely. My father has always taught me and the rest of the employees to value trust, honesty and transparency. These three values have helped us meet our challenges, improve our offerings, and grow as a company. What’s next for the company? Our aim is to continue expanding locally, ensuring our professional reputation with our clients whilst exploring the international markets in Europe and the Middle East.

DECEMBER 2015 / JANUARY 2016

CC BUSINESS

u Ernest Sullivan, CEO, Sullivan Maritime How did Sullivan Maritime start? The Sullivans have long been associated with maritime-related services in addition to other businesses in Malta. After 15 years in the family business I decided to branch out on my own, and in 1996 I set up Sullivan Maritime Ltd. Since then, it has been both a challenging and rewarding experience. Our main objective is to provide our principals and clients with a quality service. In return, we enjoy loyalty and excellent client relationships.

“We believe that we should continue to improve what we already deliver and keep a watchful eye on sound business opportunities that would eventually complement our existing portfolio.”

How do your family values affect the way you do business? I am of the opinion that I have managed to broaden my late father’s philosophy: our clients are our business partners and so are our service providers. This has enabled us to build very strong business partnerships with all our principals, but mainly with the Grimaldi Group of Naples, now going into its third generation. However, what has been

of great importance in our organisation is the focus on our staff. Although times have changed drastically and we are working within an evermore demanding and hectic atmosphere, we always try to ensure a family atmosphere. What’s next for the company? We are pioneers in adapting technology to our trade and this is limitless. We believe that we should continue to improve what we already deliver and keep a watchful eye on sound business opportunities that would eventually complement our existing portfolio. Will any members of your family be following in the Sullivan shipping tradition? My sons Nigel and Karl have already been in the company for five years and we have already embarked on our succession plan to empower their generation. We want to ensure that they will take the high quality branding of the company to the next level.

u Iannis Bonnici, Co-owner, Y Projects How did Y Projects start? Y Projects was founded in 2015 by my brother Yorick, who had already been operating in the turnkey business for seven years. His wife Ilwana heads the Property Management department of our operation. Up until last September, I was working for a local financial services company, but after 12 years I needed a new challenge. My brother told me that he was swamped with work as the company was growing and he asked me if I would like to join in. Three months later, here I am. What’s the most unique aspect of being part of a family-run business? I would say that being part of a family-run business makes you more cautious than you would normally be working in a different company. If something goes wrong, it’s not just your own career at stake, but those of several members of your own family. All your

DECEMBER 2015 / JANUARY 2016

eggs are in the same basket. On the other hand, working with family means there’s no hidden agenda, nobody’s trying to usurp you and take your role within the company. You’re all pulling the rope in the same direction. What is the company working on at the moment? Many of our current projects are centred on Valletta – we’ve completed the renovation of the award winning luxury boutique Ursulino Hotel with CVC Architecture Studio, and we’re working on revitalising the iconic British Hotel. We’re also working on the renovation of the food court at the Malta International Airport with Daaa House, as well as a number of smaller projects involving traditional houses of character. We’re also diversifying what Y Projects can offer its clients – our real estate business is set to open in January 2016. cc

“Working with family means there’s no hidden agenda, nobody’s trying to usurp you and take your role within the company.”

CC INTERVIEW

DECEMBER 2015 / JANUARY 2016

CC INTERVIEW

Sustaining growth Can environmental sustainability and economic growth ever go hand-inhand, or must one always be at the expense of the other? Sociologist and environmentalist Michael Briguglio tells Marie-Claire Grima why the belief that you have to choose either or is a symptom of uncreative thinking.

“W

e need to think outside the box,” says sociologist and University lecturer Dr Michael Briguglio, the former face of Malta’s Green Party Alternattiva Demokratika and a spokesperson for the citizens’ movement Front Ħarsien ODZ. The topic at hand is the environment, an issue that Dr Briguglio is practically synonymous with in Malta; more specifically, whether environmental and economic health can ever flourish sustainably together. I put forward the idea that the general Maltese population isn’t particularly cognisant of many pressing environmental concerns beyond their front door, but when I suggest this, Dr Briguglio is quick to tell me that he disagrees. “No, that’s not it. Environmental consciousness in Malta is actually quite high,” he says. “People are aware that there are a lot of issues, especially when it comes to air quality and land use. Certainly, there are quite a few blind spots. For example water management – one of Malta’s biggest environmental dilemmas – doesn’t factor in what most people consider to be problems that Malta has to deal with.” “But no, the main problem isn’t a lack of awareness. The main problem is forging a link between consciousness and action. You hear people complaining about how many cars there are on the roads, and how dreadful the pollution is, but people still take their cars to work every day. You hear people griping that Malta is being overbuilt, but the appetite to build more is insatiable, and so the cranes keep rising. The University itself promotes recycling – but very little recycling actually takes place on campus. There’s a mismatch between what we say and what we do. And in Malta, instead of thinking outside the box and coming up with lateral solutions to our problems, we continue to act like ostriches and bury our heads in the sand.”

Photos by Alan Carville DECEMBER 2015 / JANUARY 2016

CC INTERVIEW

“All of these problems stem from the same source; they’re separate strands in a huge web of environmental mismanagement.”

Dr Briguglio is one of Malta’s leading environmentalist voices, so I’m almost surprised by the pragmatic yet courteous tone he takes towards the construction industry. “I’m not saying there shouldn’t be construction – far from it. Malta’s level of development has allowed business to thrive and grow, and allowed a good standard of living to continue even during the crisis which battered our Southern European neighbours. However, I do think that we’re handling it in a way that is ultimately unsustainable, and which will hurt us in the near future. There are many construction opportunities that are being overlooked – empty, run-down buildings which can be restored or pulled down and built afresh instead of breaking new ground. Take the area from Pieta to Valley Road in Birkirkara, for example. Many of the buildings there are disused and derelict, prime for redevelopment. Not only would the utilisation of such a site be a coup for the construction industry, it would also regenerate a lifeless area and get rid of an eyesore instead of creating a new one. But yet, there it remains.” Malta’s endemic all-talk no-action stance in the face of environmental damage will have long-lasting and wide-ranging effects, Dr Briguglio says. “Look at one of the most pressing issues – pollution through emissions from private cars. Malta has the most ancient car fleet in all of Europe, a good number of which are only fit for scrapping, and consequently, the highest increase in CO2 emissions from all the EU member states. Not only does this have a serious impact on people’s health, running the gamut from asthma to cancer, but it also has plenty of other ripple effects. The fact that there is no real reliable alternative to private transport continues to cause a demand for personal cars. The disproportionate number of cars on the roads then not only causes huge amounts of traffic gridlock in the morning for commuters – an economic loss in terms of efficiency and wasted time – but also leads DECEMBER 2015 / JANUARY 2016

to a demand for even more roads eating away at Malta’s shrinking open spaces. Fewer open spaces result in fewer recreational areas and places for families and children to relax and enjoy themselves. The lack of open spaces also devalues Malta’s prestige as a holiday destination. Tourists come here for the sun, sea and scenery; they don’t enjoy visiting Malta and finding a second-rate Dubai in the making. All of these problems stem from the same source; they’re separate strands in a huge web of environmental mismanagement.”

“The worst part is that the mismanagement occurs due to the typical Southern Mediterranean reluctance to enforce existing laws. Many of the laws which are necessary to prevent this kind of environmental damage are already in place, but they’re not enforced. Consider the seatbelt campaign. Before the vehicle safety laws changed in the late 1990s, hardly anyone used to wear seatbelts. Enter a widespread educational campaign, as well as cohesive efforts and genuine political will to enforce the new law. 45

CC INTERVIEW Within the space of a few months, wearing a seatbelt in the front seat became second nature – but only because all the correct factors to bring about this change were in place. However, the same cannot be said with regard to the backseat – again, because there is practically no enforcement of the law.” Dr Briguglio has been an environmental campaigner for much of his life and Front Ħarsien ODZ is simply the latest manifestation in a 20-year strong history of activism. On 20th June, the group staged a demonstration in Valletta to protest the construction of a private university at Żonqor Point in Marsascala. The demonstration attracted cross-party support and was attended by more than 3,000 people. “The level of attendance at the protest was very positive – it showed that the environment is really mobilising people to take action. Before that, the biggest turnout for an environmental protest I can recall in Malta was about 500 people. There has been a huge increase in the number of people willing to make their voice heard in public to support the environmental cause.” Beyond staging demonstrations, Dr Briguglio hopes that Front Ħarsien ODZ will spur on MEPA to wield some of its infamous authority in favour of more sustainable and environmentally-friendly decisions, as well

“Many of the laws which are necessary to prevent this kind of environmental damage are already in place, but they’re not enforced.”

as encourage and stimulate discussion and action within society at a wider level. “When it comes to construction and development projects, civil society has a much greater role

to play. The decision-making process should be more open, clear and democratic from start to finish, starting with a proper study and consultation for every new venture.” cc

CC COVER STORY

Looking ahead to the future of Malta’s retail industry Just as many other sectors which form part of Malta’s economy have changed in recent years, some fading away and others experiencing unprecedented growth, the island’s retail industry is also experiencing an uncertain shift. Martina Said speaks to some of the industry’s leading players to find out where its future lies.

n a fast-paced industry that is evolving at an unstoppable rate, there’s no denying that keeping apace with local as well as global developments in the cut-throat world of retail is no mean feat. Malta’s own retail industry, just like the rest of Europe, is ever-changing, forcing industry players to either up their game or lag behind. Frank Farrugia, Deputy President of the Malta Chamber of Commerce, Enterprise and Industry, believes that the local retail industry is an intrinsic part of the economy’s backbone, which is currently being exposed to a changing environment that is challenging the traditional business practices in this sector. “It is natural to ask whether it is time to change the way business is done. Are we quick enough to understand who our customers are and the changing patterns of customer behaviour? Are we innovative enough to deliver what our customers want? What are the best DECEMBER 2015 / JANUARY 2016

strategic options or considerations to make for the future of retailing in Malta?” Mr Farrugia says that the Malta Chamber has attempted to start a discussion that could help provide the answers to such questions through a recent event titled Retail Industry – Changing the Paradigm?, which formed part of the Malta SME Week. A number of experts in the field as well as retail operators discussed new emerging trends in the retail industry and how these affected business. “We all witness on a daily basis how technology is blurring lines and creating a retail industry that is open for business anytime, anywhere and in any way the customer prefers to shop. It is becoming critical for businesses to adopt different approaches that include the traditional brick and mortar stores, which are however supplemented by their equivalent online and mobile devices to engage with customers in a contemporary manner.

“We all witness on a daily basis how technology is blurring lines and creating a retail industry that is open for business anytime, anywhere and in any way the customer prefers to shop.” Frank Farrugia, Malta Chamber of Commerce, Enterprise and Industry

CC COVER STORY

We are beyond the basic requirement of having customer-friendly staff that attracts customers to the stores,” asserts Mr Farrugia. He adds that retailers also need to rapidly embrace the value of data and analytics as key facilitators of success.

“Data and analytics enable retailers to better understand customer profiles and preferences and potentially predict customer purchases. Investing in technology to harness the vast amount of structured data that exists within a business is crucial, coupled with unstructured online data and social

“The fact that Maltese business people keep adding brands to their portfolio is, in my opinion, an indicator that the market is not faring too badly.” Christian Ganado, Retail Systems 50

media which are also becoming an essential part of a new retail environment.” Few others can judge the state of the industry better than the players themselves. Christian Ganado, Director at Retail Systems, says it’s difficult to get a complete picture of the current state of the industry, as some retailers claim to be suffering, while others appear to be doing extremely well. “Besides having successful and ambitious business people, Malta is a great testing ground for a brand. The fact that Maltese business people keep adding brands to their portfolio is, in my opinion, an indicator that the market is not faring too badly,” says Mr Ganado. “The fact that tourism has increased and will continue to do so has a positive effect on retail in Malta; our island is also attracting high-income individuals who either spend stretches of time or work here; various international banks and companies are based here too, meaning that many locals are earning more and as such, increasing their spending power – all of these factors and more clearly affect the performance of the retail sector.” In view of increasingly busier lifestyles and longer commutes to and from work due to the country’s traffic problem, Mr Ganado believes that Sunday trading is ever more necessary. “Rent costs are increasing and retailers want their turnover to do the same – whether one trades six or seven days of the DECEMBER 2015 / JANUARY 2016

CC COVER STORY

“Every business owner has the chance to face this changing landscape as an opportunity to develop and grow, or fall behind.” Holly Pisani, Raca Ltd

DECEMBER 2015 / JANUARY 2016

week, rent costs will not change. It is easier said than done, but unity amongst retailers is a great way of boosting the industry, such as adopting a common loyalty scheme, for example. Retailers must also embrace the fact that ways of reaching out to customers have changed and are constantly changing. Today, anyone with a smartphone or access to the web is a potential blogger, and their comments are seen and shared with an important audience.” There’s no denying that e-commerce is increasingly taking precedence over shopping in brick and mortar stores, and it appears that this trend will only continue to grow. “Over time, e-commerce, m-commerce (on mobile phones) and other forms of digital commerce will grow. M-commerce is already growing rapidly, aided by smart payment solutions, free WiFi in many outlets and various multichannel tools, used to engage with customers or potential customers,” explains Mr Ganado. “Brick and mortar retail will play an important role for many more years, especially in societies like ours, where going to a mall or town centre to shop and meet up with friends or family for a coffee is a way of life. However, online sales are consuming an important piece of the pie. I believe that local retailers must try and get involved in some way or other in web commerce – otherwise, not only will it affect their sales, but they will also miss out on

many opportunities which the digital world has to offer.” Holly Pisani, Marketing Coordinator at Raca Ltd, says that 2015 was an exciting year for the company, with the major refurbishment of their Diesel store in Valletta, and is in agreement that the retail industry is experiencing change, mainly brought about by a shift in the local market towards online shopping, with the introduction of new competing brands, as well as global unrest and the various international crises that unfolded this year. “It was a year of analysing trends, thinking outside the box to approach the local market in new ways and forming a calculated plan for the future,” says Ms Pisani. “Unfortunately global problems contributed to the drop in retail trade but there were also local issues which affected the industry at large. Losing foreign clients in a limited market is a blow to the retail industry, and will likely continue to affect it for the immediate future. Business owners must diversify and develop to face this challenge and broaden prospects across a local market.” In order to boost the islands’ retail industry, Ms Pisani believes that company owners need to focus primarily on satisfying the Maltese market through carefully selected stock choices derived from the analysis of trends in the local market and a renewed focus on customer service. “Sales

CC COVER STORY personnel need to be properly trained and maintain a level of expertise. For instance, in the area of denim, sales assistants need to be well educated on the variety of cuts, fits and washes to be able to properly attend to clients. A personalised service can set brick and mortar stores apart from online ones, and the Maltese retailer needs to embrace technology and utilise omni-channel retailing to accommodate the consumer.” The introduction of large global brands in Malta has introduced more modernised operations and a standardised quality at par with the rest of the EU. This, says Ms Pisani, has the greatest impact on single store owners, as multi-brand groups have more power to command the local market. “However, every business owner has the chance to face this changing landscape as an opportunity to develop and grow, or fall behind,” she asserts. “2016 will be an opportunity to test ideas, introduce exciting new projects and really focus on giving the consumer what they’re looking for. We strive to evolve with our market rather than fall behind it, and true faith in our product means we have the belief to succeed.” Meanwhile, Christine Pace, Director at Dorkins Ltd, believes that, like most other years, 2015 had its ups and downs. “Some brands traded better than others, and we also introduced the new Superdry brand in

both Valletta and Sliema, which was no easy task. Malta’s retail industry, in comparison to other European markets, is still trading quite positively,” she asserts. Keeping up a positive pace, however, requires effort on everyone’s part. “It is important for retailers to work collectively, rather than engage in individual trading methods such as gimmick sales and markdowns on a continuous basis. This, as a lot of foreign companies have seen, is not sustainable and always comes back to affect the retailers in a negative way.” On the exponential growth of online shopping, Ms Pace says is it definitely taking up a big share of local business, the implications being that, in turn, “we have to be conscious of the products, prices and shopping experiences we offer in our stores in order to keep shoppers coming. Online shopping is very tough and not easy to compete with, as the running costs for online are obviously nothing compared to brick and mortar shops,” explains Ms Pace. “However, I still believe that, in a small country like ours, if we continue to work hard on customer service, pricing and products, we will continue to have a strong retail industry. 2016 will be a year in which we focus on what we already have and consolidate our operations, and continue to keep track of running costs – otherwise, time will tell what the year will bring.” cc

“It is important for retailers to work collectively, rather than engage in individual trading methods such as gimmick sales and markdowns.” Christine Pace, Dorkins Ltd

DECEMBER 2015 / JANUARY 2016

Lost on Christmas gift ideas? Read on and be inspired. 01. Fitness bands Once party season is over and the new year rolls around, many people will leap at the chance to get back into shape. Why not give them a fitness aid to kick their efforts off and help them stay on track, such as the Fitbit Charge™ Wireless Activity and Sleep Wristband? It has all-day and workout stats, as well as caller ID notification for incoming calls and sleep monitoring facilities – perfect for catching up on your rest after a few not-so-silent nights.

04. Stylish timepiece The Diesel Chief features a burnished olive leather strap and an oversized gunmetal and black chronograph dial with gold accents for an edgy, iconic look. With a smooth automatic movement, it’s a perfect gift for watch lovers. Available in Sliema and Valletta Diesel stores. €426.

GIFT IDEAS

05. Timeless elegance Montblanc M expresses the modernity of today and the timeless elegance of tomorrow. Made of black precious resin, the writing instruments’ fluid lines flow gently into one another. The innovative magnetic cap-closing mechanism automatically aligns the cap with the Montblanc emblem embedded in the ‘plateau’ of the writing instrument. Available at Diamonds International.

06. The perfect watch

02. Quality first You’re spoilt for choice at Monopole with a wide selection of quality gifts for her and him, aimed at people of all ages. The list is endless: classical and modern gifts in leather or synthetic material such as jewel cases, watch winders, wallets, briefcases, vanity cases, handbags, luggage, perfumes, etc. Visit MONOPOLE, Bisazza Street, Sliema. T: 2131 3909; www.monopole.com.mt

01.

Multifaceted design, always on the pulse of time – all this awaits every male or female wearer of these unique timepieces; the perfect watch for every moment. Quality and passion for the most precious commodity in life – TIME – that’s what Jacques Lemans stands for. Exclusively from G.B. Jewellers and Micallef Watch Dealer. cc

03. Coffee makers No matter what time of year it is, a great cup of coffee in the morning never goes unwelcomed. Give someone a gift that keeps on giving with a quality coffee maker, such as the powerful and speedy Subito coffee machine by Moulinex. It can make up to 15 cups of coffee at a time and has a handy drip-stop system to prevent unsightly coffee stains.

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REVIEW

Seasonal Style

03. Leather A texture that continues to be popular year on year in the colder months, it is hard to ignore leather. Be it in the shape of a purse or shoes, or in the form of a skirt or jacket, leather is a sure-fire winner this season. Look to Louis Vuitton’s leather pants for inspiration, or if you love a bit of rock ‘n’roll edge, Saint Laurent’s high-waisted leather skinnies are hard to beat. Meanwhile, you need not stick to traditional colours – cool colours like aqua and beige are also having a moment.

Stella McCartney

The cold weather is no excuse not to look stylish, and with the wonderful crop of winter 2015/2016 collections on offer, you’ll be spoilt for choice when it comes to stepping out in style this season. Sarah Micallef takes a look at the top trends to be seen in. 01. Flared trousers 1970s fashion was a major influence in 2015/2016 collections, with designers like Yohji Yamamato, Stella McCartney, Ralph Lauren and Vivienne Westwood embracing quintessential silhouettes associated with that time. One such silhouette is the flared trouser, and it looks equally great for work or play. Select a beautifully tailored pair in a solid, bold colour and team with a crisp shirt and fitted jacket or blazer.

04. Reefer jackets Harking back to United States Navy fashions, the double breasted reefer jacket made quite an appearance in Paris and New York fashion weeks this season. Give your festive attire a seafaring military feel by incorporating a reefer jacket into your wardrobe this year – you’re sure to receive a fashion forward ‘Aye aye, Cap’n!’

02. Fur stoles Now that wintry weather has finally decided to grace the islands with its presence, it’s time to wrap up warm! A trend that really shone on autumn/winter runways this year was the fur stole, and could be just what you need to beat the chill while giving your look a touch of class. While we’d never condone real animal fur, the beautiful array of faux varieties that are available today work just as well, and come with the added benefit of being guilt-free too!

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Diane Von Furstenberg

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05. Bold colour The colder months always seem to be associated with an abundance of dark or neutral colours like black and grey, but if you’re looking to inject a little vibrancy into your look, this season’s bold trend is for you. Whether you choose to go for one piece in a block, bold colour or go the whole hog with a top-to-toe statement outfit, look to collections by DKNY, Diane von Furstenberg, Versace and Prabal Gurung for a little eye-popping inspiration.

06. Polo necks While the plunging neckline dominated the hot months, it’s only right that the warm and comfy polo neck is the favourite come winter, and this winter, the polo neck is just about everywhere. Whether you choose to go for a figure-hugging fitted style or a comfy oversized polo neck, there are loads of varieties when it comes to shape, colour and style to choose from, so you’re guaranteed to find one that takes your fancy! cc

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Michael Kors

Reiss

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Jaeger

Hugo Boss

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DECEMBER 2015 / JANUARY 2016

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Cruising to victory Valletta Cruise Port has helped transform Malta’s capital city into a prime cruise destination as well as a popular local hang-out spot through the development of the Valletta Waterfront. Marie-Claire Grima meets CEO Stephen Xuereb to find out how they did it, what the recent changes to its shareholder portfolio will bring, and what’s next for the most picturesque cruise port in the Mediterranean.

“T

he Valletta Waterfront is a destination in itself,” says Stephen Xuereb, the CEO of the Valletta Cruise Port (VCP). “Many cruise ports are industrial and not very picturesque – you have to travel a few miles away from the harbour area until you get to anything worth stopping for. On the other hand, when the ship draws into Valletta’s port, passengers are greeted by this cheerful, cosmopolitan seafront, with good quality restaurants and shops in a family-friendly atmosphere, backed up by the history and the beauty of Valletta itself. It’s a real gem – it’s like a little town,” he adds with candid fondness and pride. It wasn’t always a quaint miniature seafront town, of course. Less than 15 years ago, Mr Xuereb says, the area was a derelict wasteland. Regeneration began in earnest in 2001, when VCP – formerly known as Viset Malta – acquired the site under the terms of 60

a 65-year concession from Government. The changes were extensive and in-depth – some of the historical Pinto Wharf vaults had to be dismantled and rebuilt, and the infrastructure had to be completely rerouted in order to create a pedestrian area which followed the original quay line. Since VCP’s inception, it has experienced an aggregate growth rate of more than 75 per cent, with over €37 million invested in the redevelopment of the area where its sea and land operations are based. However, the company’s tenacious efforts have been handsomely rewarded. Named as the Best Turnaround Port Operator for the fourth year in a row in 2014, Valletta Cruise Port is now one of the most famous and most well-regarded cruise destinations worldwide. Passenger movements in the financial year ending November 2015 are expected to hit 640,000, on board 306 cruise ship calls. “It’s a renowned port of call and a growing homeport. Due to its

location, it’s ideal as a base for east and west Mediterranean cruise itineraries. It also has an excellent reputation for its security, guest and accommodation facilities. Its proximity to the centre of Valletta also makes it very attractive – with plenty of tourist attractions very close at hand, reachable within a 30 minute radius, as well as multimodal transport services that make it easy to get to wherever you want on the island in a short span of time,” Mr Xuereb says. Besides having a great deal of international appeal, the Valletta Waterfront has achieved the remarkable feat of remaining a very popular family outing spot among the Maltese, a status that Mr Xuereb says the company actively tries to maintain. “We hold regular events for Christmas, Valentine’s Day, Carnival, Easter, Halloween… you name it. We try to have something going on all year round, not just during peak DECEMBER 2015 / JANUARY 2016

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“We’re important players in the international cruise arena ourselves, and we’re looking forward to providing useful contributions in terms of human talent and best practices to Global Ports Group and other cruise ports too.”

us as we continue to carry out our plans for expansion.” “And Valletta Cruise Port has a great deal of these plans as it continues on its steady course towards maintaining its reputation as a prime cruise port facility in the Mediterranean. Next year, it is expecting to break its own record yet again, with an unprecedented target of more than 700,000 passenger movements. With 47 new ships on the order book for delivery through 2022, the majority of which are large ships longer than 300m, extensive developments are required in the port, especially on Quays 4 and 5 and towards Lascaris and Barriera Wharf to maintain future growth. Furthermore, following discussions with the Malta Gaming Authority, the Cruise Casino Regulations were enacted this year, which allow cruise liner to operate their onboard casinos between 6pm and 6am while berthing in Malta and its territorial waters. The new gaming legislation is expected to make Valletta Cruise Port a more attractive proposition for overnight stays, maximising

the inclusion of Malta and Gozo in one itinerary for niche cruise lines. Mr Xuereb says that Government support for the cruising industry in Malta has fuelled the symbiotic relationship between the two entities and helped the sector develop. “The cruise industry brings so many benefits to Malta. In 2014 the cruise industry contributed €83 million to the GDP, with €27m of those going straight into Government coffers through direct and indirect taxation. However, there are also other, intangible benefits. When tourists stop in Malta, they’re forming an immediate impression of the place and experiencing a snapshot of what it can offer. And when they’re booking their next holiday, they will remember what a lovely time they had on our island when they stopped here on a cruise – wouldn’t they want to come back here again for a longer stay? That’s what gives us the fuel to keep seeking to exceed our clients’ expectations and striving for excellence in all that we do – and we hope the rest of our partners in the tourism industry are prepared to step up to the challenge.” cc

“When tourists stop in Malta, they’re forming an immediate impression of the place and experiencing a snapshot of what it can offer.”

Photos by Alan Carville

www.pinguimo.com

season. We’re always pushing to do better.” In November, the Turkish investor Global Ports Holding, the world’s largest cruise port operator, acquired the majority shareholding in Valletta Cruise Port. What kind of changes does Mr Xuereb foresee as a result of these developments? “As a titan in the world of cruise port operations, Global Ports will bring us a lot of synergies, helping us consolidate our strategic direction, and providing us with the opportunity for knowledge transfer, partnerships and exchanges. We’re important players in the international cruise arena ourselves, and we’re looking forward to providing useful contributions in terms of human talent and best practices to Global Ports Group and other cruise ports too. Meanwhile AX Holdings, the remaining Maltese shareholder in Valletta Cruise Port has consolidated its shareholding: its expertise and experience in carrying out infrastructural projects will help DECEMBER 2015 / JANUARY 2016

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NEWS Events & Initiatives

01. Members given insight on proposed amendments to public procurement legislation During a consultation session with the Department of Contracts, announcements were made regarding numerous concrete recommendations put forward by the Department, in line with new EU Procurement Directives to simplify and professionalise the procurement process. These were delivered by Anthony J. Cachia, Director General, Department of Contracts, during a consultation session organised by the Malta Chamber in collaboration with the Malta Employers Association on Thursday 15th October. The event, titled ‘Public Procurement – Towards Simplification and Improved Quality Standards’ served to inform participants of the latest developments and proposed amendments to the local and European legislation on public procurement. In his opening addresses, Frank V. Farrugia, Deputy President, voiced the Malta Chamber’s strong belief that further improvements in the quality of tender specifications, the elimination of barriers, efficiency and transparency of public procurement will continue to drive the competitiveness and innovative capacity of local SMEs. It is also being envisaged that all Government tenders, including those published by line ministries, will be published and included on the etenders.gov.mt website. The Most Economically Advantageous Tender (MEAT) system will see wider implementation,

thus enhancing the simplification and quality of public procurement.

02. The good, the bad and the could-be-better Comments by Malta Chamber President Anton Borg about the Budget 2016 were featured prominently in an analysis article titled ‘Budget: the good, the bad and the could-be-better’ appearing in the Business Observer of 22nd October. The article lists reactions of a number of involved parties to the Budget. “The Malta Chamber of Commerce, Enterprise and Industry was thrilled with measures aimed at SMEs,” the article opens. “These include the promise to address the country’s ease of doing business rankings; updating bankruptcy legislation; streamlining tendering procedures reducing the performance guarantees from 10 per cent to four per cent; and the re-establishment of an export credit guarantee scheme.” The article also points out that the Chamber was pleased by newly-announced programmes for business to be administered by Malta Enterprise and furthering of public-private partnerships, as well as the setting up of Malta Marittima, Education Malta and Property Malta, all of which it felt were conducive towards increasing international business for Maltese companies in sector-specific areas. However, the article notes that the Chamber was upset that the Government had shot down the Chamber’s call for lower energy prices for all businesses.

01. 03. Meeting with DG Employment officials Andre Fenech represented the Malta Chamber at a stakeholders meeting with high officials from the European Commission's DG Employment. The officials were in Malta on a fact-finding mission focusing specifically on social and employment policy in preparation for the drafting of the Country report and subsequent Country Specific Recommendations as part of the 2016 European Semester. The meeting was held at Dar L-Ewropa on 27th October and was meant for the officials to monitor the progress in these spheres and to complement the information already available. The discussion primarily revolved around three main themes namely pension reform, female participation in the labour market and foreign and migrant workers. Mr Fenech gave details of the recent consultation about strengthening the pension system.

04. Retail Industry – Changing the Paradigm?

04. DECEMBER 2015 / JANUARY 2016

Opening a seminar organised by the Enterprise Europe Network – Malta in collaboration with Bank of Valletta titled ‘Retail Industry – Changing the Paradigm?’ on 23rd October, Malta Chamber of Commerce, Enterprise and Industry Deputy President Frank V. Farrugia said that the retail industry is an intrinsic part of the backbone of Malta’s economy. This sector, Mr Farrugia said, is being exposed to a changing environment that is challenging traditional business practices. Mr Farrugia asked if it is time to change 65

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by Armin Eckermann Chairman – German-Maltese Business Council.

06. Benchmarking event about setting performance targets

05. the way business is done. “Are we quick enough to understand who our customers are and to understand the changing patterns of customer behaviour? Are we innovative enough to deliver what our customers want? What may be the best strategic options or considerations to make for the future of retailing in Malta?” asked Mr Farrugia. Addressing the seminar, the Minister for the Economy, Dr Christian Cardona said that retail in Malta proved to be robust even during the credit crunch and the eurozone crisis. It demonstrated resilience, flexibility and the ability to fight. The seminar which formed part of the national Malta SME Week 2015, discussed innovative ways to transform retailing into a more competitive sector, the use of digital communication and technologies to enable retailers to ride an increasingly challenging wave.

such as a combination of conservation, preservation and educational tours and walks, mixed with culture, tradition and history. We can no longer sell our island solely on the basis of ‘sun, sea and sand’ as there are several other destinations that can offer this at cheaper rates, and it is certainly not in our interest to compete on price,” Mr Borg said. Addressing the seminar, Leo Brincat, Minister for Sustainable Development, the Environment and Climate Change said that Government is fully aware that ecotourism can bring numerous socio-economic benefits to Malta. It offers new opportunities for small-enterprise investment and employment as it increases the national stake in protecting our biological resources. The event was opened by H.E. Gudrun Maria Sräga Ambassador of the Federal Republic of Germany and also addressed

The Human Resources Committee of the Malta Chamber organised another benchmarking session as part of a series of events open for members to benchmark their current HR practices with those of their peers. The event was held at the Exchange Building on Thursday 5th November and was attended by over 30 practitioners and company representatives in the field. The topic of this event was setting performance targets in a company. Catherine Calleja, Chairperson of the HR committee, welcomed those present and spoke of the importance of performance targets, both financial and non-financial, the use of tools to monitor and review results, and aligning individuals’ and departmental goals with those of the organisation. Addressing the session, James Ashton, Managing Partner at Multiplex Partners spoke at length on the importance of aligning the individual’s work and company’s overall operations. He spoke of the need to set goals as these are not essentially natural but studies have shown that through targets setting performance and productivity can increase between 11 to 25 per cent.

07. Malta Chamber staff attend innovation management training Staff of the Malta Chamber attended an Internal Capacity Building programme intended to improve skills in innovation

05. Opportunities in ecotourism need to be identified, seized and explored further Addressing an event on 2nd November, at the Exchange Buildings, titled ‘Eco Tourism – the way forward for Malta?’ organised by the German Maltese Business Council, the President of the Malta Chamber Anton Borg said that if quality can be ensured across the entire touristic experience, our islands have a premium to offer through landscape, ecology, geology, history and archaeology. The event was intended to raise further awareness about the concept of ecotourism and how it can work for Malta. “Malta has a lot of unique selling propositions to offer the most exigent of tourists with strong environmental interests 66

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management. The training was designed to effectively combine research and theoretical approaches with practical application in a professional environment. The two-day training course provided an overview of the key dimensions of innovation management and how they impact the competiveness and performance of an SME. The main objectives of this capacitybuilding initiative is to enhance the employees’ capabilities to better assist enterprises, to understand the key success factors of innovation management, to provide the skills necessary to better assess the way SMEs manage their innovation and to facilitate the development of effective innovation strategies for the SMEs’ clients.

08. Amendments to the Motor Tractor Regulations During a meeting with the Minister for Transport and Infrastructure and Transport Malta officials, the Malta Chamber was given the necessary assurances that the proposed amendments to the Motor Tractor Regulations will not impact vehicles or trailers meant for the carriage of goods (whether full or loaded). The scope of the amendments is to reduce the presence of low-loaders transporting large construction vehicles, yachts, etc that are limited in speed and mobility during peak traffic hours (7-9am and 4-6pm). The definitions of vehicles falling under the scope of the proposed amendments will be revised and updated to reflect these assurances.

09. We cannot allow events to interfere with relations between Malta and the Arab world The terrorist attacks which took place on 13th November in Paris were condemned by the Malta Chamber unreservedly and without any exception in a Press Release issued on 19th November. “We cannot however, allow such events interfere with the excellent relations between Malta and the Arab world,” the Malta Chamber remarked in a Press Release. “Malta’s long standing relationship with the Arab world is testament of an extended fruitful and mutually beneficial relationship on several levels that goes back centuries. The Malta Chamber endorses remarks made by the Prime Minister in Parliament in the wake of the attacks, when he said that it would be wrong for Malta to turn its back on the Arab world. It should promote trade and exchanges DECEMBER 2015 / JANUARY 2016

with the Arab countries and the rest of the world,” the Press Release concluded.

10. Opening of ‘The Royal Family’ – an exhibition of fine china at the Malta Chamber “Malta’s strong business links with the United Kingdom have characterised our lifestyle for decades. Malta’s long history of trade beyond our shores has moulded the social fabric of Valletta and by extension of the island,” said Anton Borg, President of the Malta Chamber during the opening of ‘The Royal Family’, an exhibition of fine china organised to coincide with the Commonwealth Heads of Government Meeting in Malta. The

exhibition featured limited edition fine china articles and a number of photographs from the private collection of Gio Batta Delia. Mr Borg noted that the link of the Malta Chamber with the current Royal Family could be traced back to 25th November 1949 when Her Majesty the Queen, then Princess Elizabeth, was greeted by the Chamber President Lewis V. Farrugia when she visited the Exchange Buildings, during the centenary celebrations of the Chamber. Since then, a number of other members of the Royal family visited this building with the latest being His Royal Highness Prince Edward, Earl of Wessex in 2011. The exhibition was opened by H.E. the President of Malta Dr Marie Louise Coleiro Preca who congratulated the Chamber for the initiative. 69

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NEWS Internationalisation

01. Malta Chamber participates in Trade Malta business delegation to Istanbul with support of Maltese Turkish Business Council Business relations between Malta and Turkey have historically been excellent and it is Trade Malta’s aim to build on these solid foundations in order to seek new markets and enter new business relationships that would benefit both sides,” said Anton Borg President of the Malta Chamber of Commerce, Enterprise and Industry following a trade delegation to Istanbul, Turkey, that took place from 29th September to 2nd October. “Malta’s strong geographical location as a gateway to Africa can complement Turkey’s strategic position as both countries can build on each other’s assets, to facilitate trade and business opportunities in new markets,” he explained. The trade delegation was co-organised by Trade Malta and the Maltese Turkish Business Council within the Malta Chamber. The Malta Chamber was represented by President Anton Borg and Vice-President Tonio Casapinta, the Chairman of the Maltese Turkish Business Council (MTBC), Dr Mark Bencini and a number of Committee members. Malta Enterprise, FinanceMalta and Transport Malta also joined the delegation.

02. Business conference to be organised in Turkey in 2016 High officials from TOBB (The Union of Chambers and Commodity Exchanges of Turkey) will be visiting Malta later this year with a view to discuss the organisation a joint conference that will be held in Turkey in 2016. The conference will bring entrepreneurs from Turkey and Malta together in order to investigate business opportunities in both countries. This was an outcome from a meeting held at TOBB which is the highest legal entity in Turkey representing the private sector, and which has 365 members in the form of local chambers of commerce, industry, commerce and industry, maritime commerce and commodity exchanges. The 2016 conference will be organised by a working committee which will be composed of six members – three from each side. The working committee shall also be tasked with reviving an agreement that exists between TOBB and the Malta Chamber.

03. DEIK/MUSIAD Business Forum MUSIAD President Nail Olpak said that “Turkey’s exports to Malta in 2004 were $98 million, reaching $1 billion in 2014”. The President of MUSIAD was making the opening address during a Business Forum organised by MUSIAD and DEIK in which the Maltese delegation also participated. Mr Olpak said that trade relations between the two countries included mineral fuels and oils, iron, steel, copper and aluminium, indicating that products such as electric machinery and tools have a significant potential market in Malta. Turkey imports highway/petroleum derivatives used in the production of asphalt, steel, shows the presence of substances used in medicine and the pharmaceutical industry, stressing that all this of course is not enough and much more cooperation is needed. He stated that commercial activities such as this of this morning will help us understand each other better. Anton Borg, President of the Chamber gave a presentation on the Chamber’s activities as well as a presentation on Trade Malta and Finance Malta.

04. Strong relations with business bodies During the Business Mission, the delegation had meetings with a number of business bodies representing various sections of the Turkish business landscape. One such meeting was with officials of the Istanbul Chamber of Commerce, which has 381,000 members in 85 different trade sections and also runs a University of over 10,000 students. Malta Chamber President Anton Borg said that the Chamber had a strong relationship with Malta’s education institutions and was proposing initiatives on ‘Knowledge Transfer Partnerships’ with the University of Malta and MCAST for start-ups and innovation. Reference was made to the Co-operation agreement signed between The Malta Chamber and the Istanbul Chamber in 2012 and it was noted that such an agreement should be reactivated. Istanbul Chamber of Commerce President Ibrahim Caglar suggested to hold a Round Table meeting in Malta to which Turkish high-calibre businessmen would be invited.

01. 05. Indonesia a promising market Addressing a seminar titled ‘Business and Investment Opportunities in Indonesia’ at The Exchange Buildings on 19th October, the President of the Malta Chamber Anton Borg said that Indonesia is an attractive market which holds huge potential for Maltese businesses, however it is a market which needs more awareness locally. Looking at Indonesia’s main sectors, Mr Borg said that there are a number of common sectors that both countries can work very well in. These include telecommunications, real estate, financial services and education. “These are amongst the more vibrant sectors in our economy, so I am more than encouraged that the chances of future trade and investment co-operation are good,” he said. Mr Borg thanked the Consul General Ernest Sullivan and his Consulate for their hard work in making the event possible. The seminar was also addressed by H.E. August Parengkuan Ambassador of the Republic of Indonesia to Italy and Malta who was leading the delegation.

06. Visit to Brussels by the Middle East Business Council Members of the Middle East Business Council visited Brussels between 19th and 21st October to meet with EU and GCCrelated institutions. The aim of the trip was to explore ways on how to collaborate with EU and GCC institutions in order to facilitate business between the EU and the Gulf region. The Middle East Business Council members also promoted Malta as a base for Gulf as well as North African companies which can also serve as a gateway to the EU. This was emphasised by Malta’s geographical proximity and cultural similarity. The visit and the meetings were organised by the office of MEP Dr Roberta Metsola. The delegation met with the MEP Henna Virkunnen, MEP Salvatore Cicu, the European Commission, the European External Action Service, the Embassies of Bahrain and Oman in Brussels, and the Arab-Belgian-Luxembourg Chamber of Commerce. The delegation consisted of Vice-Chairman Peter Frendo, Liz Barbaro Sant, Joseph Camilleri, Mark Vassallo, Dr David Zahra and Lina El-Nahhal. DECEMBER 2015 / JANUARY 2016

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07. Malta Chamber leads business delegation to Moscow Russia “Russia and Malta vary vastly in size and culture, but both sides have never let this come between a healthy business relationship that can only flourish in the future,” said Anton Borg, President of the Malta Chamber of Commerce, Enterprise and Industry, following a trade delegation to Moscow, Russia, which took place on 28th and 29th October. The Malta Chamber was represented by President Anton Borg and DeputyPresident Frank V. Farrugia, who were joined by Trade Malta Chairman David G. Curmi. The business delegation also welcomed a number of Maltese companies who carried out fruitful B2B meetings with Russian companies. The Chamber officials held successful meetings with several Russian business associations including the Moscow Chamber of Commerce and Industry, Moscow Entrepreneurs Association and the International Initiative Development Fund (IIDF). The trade delegation was co-organised by the Malta Chamber of Commerce, Enterprise and Industry, with the valuable assistance of Anastasia Budykho and Sasha Kuznetsova, whose sterling help was greatly appreciated.

08. Meeting with Moscow Chamber of Commerce The Malta Chamber delegation held a meeting with the President of the Moscow Chamber of Commerce Sergey Katyrin who was accompanied by his Vice President Georgy Petrov. Both organisations share a healthy relationship that goes back to a visit by President Sergey Katyrin to Malta in June 2014. During the visit, a Memorandum of Understanding was signed between the two organisations, formally recognising the intentions of collaboration between the business communities of the two countries. The meeting provided the opportunity to discuss further avenues in implementing the provisions of the MoU.

09. B2B meetings between Russian and Maltese companies During a B2B event organised by the Chamber of Commerce and Industry of the Russian Federation, President Anton Borg delivered a presentation about the Malta Chamber and the role it plays in assisting its members in partnering up with potential investors or trading partners to a number of Russian entrepreneurs. This was followed by a short video on Malta Enterprise and a brief explanation of the role of Trade Malta by Chairman Davd G. Curmi. The Maltese and Russian companies attending had the opportunity of introducing their companies and the potential interest they were looking for during the visit. The event was chaired by Vice President Petrov and was immediately followed by B2B meetings of the delegates. A presentation was given to the Maltese visitors on how the Russian Chamber’s members were informed of legal and other matters of interest through the use of webinars.

10. Visit to the IIDF The delegation also visited the International Initiative Development Fund (IIDF), a project that brings together a dove tailed financing programme and a business incubator for startups. IIDF CEO Kirill Varlamov explained how IIDF is operated as a 24x7 serviced office facility for the businesses the fund invests in. It is a living business incubator that provides the necessary support through shared facilities. The ultimate goal of the project is to invest in the right business to generate the best return on investment whilst nurturing entrepreneurs.

11. Visit to Moscow Entrepreneurs Association The President and Deputy President of Malta Chamber also visited the headquarters of the Moscow Entrepreneurs Association (MEA) and held discussions on future possible collaboration between the two organisations with MEA President Andrey Podenok. Both sides agreed to gauge the interest of their respective members and revert to each other accordingly. His Excellency Dr Brincat was also present for this very constructive meeting.

DECEMBER 2015 / JANUARY 2016

07. 12. Ambassadors’ meetings at the Chamber The Turkish Ambassador to Malta and the High Commissioner of Sri Lanka to Malta visited the Malta Chamber in separate meetings this week. Both meetings were intended on underscoring the good relations with the respective countries, while investigating potential avenues of business collaboration. The President Anton Borg and DG Kevin J. Borg welcomed the Turkish Ambassador to Malta H.E. Reha Kesintepe at the Malta Chamber. The meeting followed up on the Business Mission to Turkey which the Malta Chamber took part in last September, as the Ambassador was brought up to speed with business developments between the two countries. The Ambassador promised his full support and guidance in the Malta Chamber’s effort to further Malta’s visibility in Turkey and vice-versa. The excellent business relations between Malta and Turkey were seen as sound foundations for more mutually beneficial activity. The Ambassador was also informed of the endeavours of the Turkish Business Council. Mr Kesintep was accompanied by his Second Secretary Halit Akgün. The High Commissioner of Sri Lanka to Malta H.E. Mr Daya Pelpola was welcomed by the President Anton Borg and DG Kevin J. Borg. The meeting discussed how Malta and Sri Lanka can collaborate in a way that would bring the two vastly different countries closer together on a business level. The meeting was intended to kindle relations with Maltese business and the Malta Chamber especially in light of the upcoming Commonwealth Heads of Government meeting taking place the following week and the related Commonwealth Business Forum. 73

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13. Malta Chamber on Algeria business delegation The President of the Malta Chamber Anton Borg formed an active part of a business delegation to Algeria led by the Prime Minister, with the aim of strengthening and furthering the existent strong ties between the two Mediterranean countries. The business mission, which was organised by Trade Malta, came to a close on 19th November. Mr Borg delivered a presentation at the Algeria-Malta Business Forum, on the endeavours of the Malta Chamber and on how it can facilitate trade collaboration between Maltese and Algerian businesses. The Forum was also addressed by Abdeslam Bouchouareb, Algeria’s Minister of Industry and Mining, Mohamed Laid Benamor, President, Algerian Chamber of Commerce and Industry, Ali Haddad, President, Forum des Chefs d’Entreprise, David G. Curmi, Chairman, Trade Malta, Dr Joseph Muscat, Prime Minister of Malta and Abdelmalek Sellal, Prime Minister of Algeria. A series of business to business meetings followed. Mr Borg was accompanied by Simon Alden, Chairman of the North Africa Business Council (NABC) within the Malta Chamber. The business mission builds on a healthy relationship the Malta Chamber already has with Algeria. On 5th May 2015, Vice-President Tonio Casapinta met with the Minister Plenipotentiary at the Embassy of Algeria in Rome, Mohamed Mellah to discuss matters of collaboration between the two countries.

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13. 14. Doing business with Japan “There is great potential for growth for Maltese businesses in Japan. The two vastly different countries already have a long history of collaboration, yet immense room for development exists,” said Anton Borg, President of the Malta Chamber as he was opening ‘Doing Business with Japan’, an event organised on 20th November by the Malta Chamber aimed at providing the business community with the opportunity to discover potential new markets. “According to the Malta Chamber’s Internationalisation Database which denotes interest by Maltese companies in doing business with a specific country, only 49 out of the 5010 entries in the database are for Japan,” said Mr Borg. “That accounts for just 1 per cent of the total entries which clearly demonstrates

the need to raise more awareness of the Japanese market and hence, the importance of our gathering here today.” “This interest by Maltese businesses is the vital information on which the Malta Chamber builds its Internationalisation policy, and subsequently establishes its Business Councils aimed at promoting and facilitating business between Malta and other markets,” Mr Borg noted. During his address, Minister for the Economy, Investment and Small Businesses, Dr Chris Cardona said that for Japanese companies, Malta offers the potential of becoming a centre for international business in the Euro-Mediterranean region – a reality that is clearly emerging as witnessed by the growing number of companies that are using Malta as their base of operations. “This is an excellent opportunity for both parties to explore opportunities and ask questions about ways to access them,” he said. The Minister for Foreign Affairs, Dr George Vella said that the Government is determined to enhance diplomatic relations and strengthen economic cooperation with Japan. “Although formal diplomatic relations were established in 1965, relations between the two countries date back more than 100 years… Nowadays, both Japan and Malta have grown sagacious of their historical past as they tread the path of democracy, good governance and international dialogue through a globalised system of sustainable and environment-friendly economies linked together by the United Nations, World Trade Organisation and the Asia-Europe configuration,” Dr Vella said. Addressing the event were also Miki Yamada, Parliamentary Vice Minister for Foreign Affairs and H.E. Kazuyoshi Umemoto, Ambassador of Japan to Malta. The event was chaired by H.E André Spiteri, Ambassador of Malta to Japan. cc Cut-off date – 20th November 2015 DECEMBER 2015 / JANUARY 2016

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Contemporary luxury against a historic backdrop

Photos by Sean Mallia

A number of Valletta’s most charming streets and landmarks are undergoing a serious transformation, and so are some of its oldest residential properties. Martina Said meets Peter and Sandro Valentino, founders and architects at Valentino Architects, to discuss one of their recently-completed renovation projects in the capital.

hitewashed walls; warm, earthy colours and symbolic Maltese accents are but a few highlights that typify this newly renovated block of three apartments in Valletta, each one different from the other in the most understated of ways. I meet Peter and Sandro Valentino, founders and architects at Valentino Architects, who transformed the previously derelict apartments into outstanding spaces in approximately 12 months, the results of which are quite remarkable. “We were approached by the client to design three apartments for rent, with a cohesive design yet set apart with subtle differences to give each apartment its own identity. The brief called for contemporary spaces with a local feel and a strong

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connection to their context in the heart of the world-heritage city of Valletta,” says Peter. “Structurally, the building was sound, but all finishes were in very poor condition. Of the three Maltese balconies in the block, two were beyond repair and had to be replaced, and one was restored. As attractive as Valletta properties are, they often need to be reorganised to relate to today’s living standards – by applying a limited number of structural alterations, we were able to achieve this.” They pull up the original and current floor plans of one of the apartments – originally, the two large bedrooms were located at the front of the building with doors onto the big balcony overlooking the street, while the living spaces, which were given little value, were placed further back.

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“You generally buy a property or agree to renovate it because you like it and there’s something about it which speaks to you.”

“In the past, property layouts were very different – lots of importance was given to the bedrooms,” says Sandro. “In fact, and this is a common feature in most Valletta apartments, the bedrooms used to overlook the street, even though they were the nicer rooms.” The architects flipped the layout so that the living spaces get the lovely view, and carried out structural alterations to make this change possible. “We opened up a wall separating the previous two bedrooms and opened the dividing walls leading to the balcony, enabling the Maltese balcony to become part of the living space,” they explain. “This brought the property up to speed with modern standards and lifestyle choices. Whereas before the bedrooms were the most prominent rooms – and the living area, especially the kitchen, kept out of sight – nowadays, more importance is given to the living and kitchen spaces, being the areas that people spend a lot more time in.” While these structural alterations were necessary to elevate the space, Peter says that they were kept to an absolute minimum. 78

“You generally buy a property or agree to renovate it because you like it and there’s something about it which speaks to you. We limited the amount of alterations of this kind, but the ones that we did had a big effect on the space.” Sandro explains that historically, the use and function of the Maltese balcony was rather unique. “It used to be the boundary between inside and outside the apartment, but also a social space, where people – mostly women – would chat and communicate with their neighbours. For this reason, they would want to keep the rest of the apartment beyond the balcony private, which is why they would have a wall sectioning it off. Today, you want to bring the outside in as much as possible, and the use of blinds mitigates any privacy concerns.” Opening up the balcony the way the architects did also enables the apartment’s inhabitants to appreciate the Maltese balcony from the inside, and not just from the street outside. “It also makes good use of the beautiful view,” says Peter, “which extends to Manoel Island. DECEMBER 2015 / JANUARY 2016

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“The Maltese patterned tiles give the apartment a new look and feel while borrowing elements from the traditional, without trying to be old.” The way we brought the outside in, allowing as much natural light as possible into the old building, is probably one of the best aspects of this project.” While there weren’t many outstanding structural elements that merited conservation, they explain that the block’s plan is quite unique in the way the back rooms of all three apartments revolve around a central courtyard. Although it cannot be accessed from the apartment, it was used to draw in more natural light by way of newly-installed windows. While distinct in their own way, all three of the properties display a sense of continuity via the materials used to finish and furnish them. To establish this, the walls were kept white, and a few materials were selected and applied differently in each apartment, namely wooden floors, Maltese patterned tiles, Carrara marble surfaces and a selection of old pieces of furniture. Using patterned Maltese tiles, for instance, they created a carpet at the entrance of one apartment, and replicated that pattern on the bathroom wall, then changed the arrangement of these tiles for another apartment, bringing both the rooms within the same space, as well as the spaces within the same block, together. “All of the original tiles we found were beyond repair, although coincidentally, the blue pattern we used for the bedroom is the same as the pattern at the entrance of the block,” says Peter. 80

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CC DESIGN TRENDS as well as the heights of the ceilings. “For instance, installing gypsum soffits throughout the apartment may not be the right approach, as they do not fit in, and in any case are not always necessary. By installing false ceilings, the proportions of the room change and it doesn’t feel the same, except obviously for areas where you need them, such as in the bathrooms,”

explains Sandro. “On the other hand, we worked to make the interventions more legible,” they add. “For example, we left the steel beams that created the opening in the new living space exposed. When you walk into the building, you can appreciate that an intervention was made there, and the building becomes a historical document that tells its own life story.” cc

“The architects also worked to enhance the original features of each apartment wherever possible, namely by leaving some of the walls unsmoothed and unplastered, in order to reveal the natural texture of the stone. ”

Sandro adds that the varying tones of blue give the tiles a contemporary feel, as tiles of this kind were traditionally made in a limited range of colours. “They give the apartment a new look and feel while borrowing elements from the traditional, without trying to be old. Also, their shade of blue mirrors the colour of the sea, which is visible from the bedroom window.” The architects also worked to enhance the original features of each apartment wherever possible, namely by leaving some of the walls unsmoothed and unplastered, in order to reveal the natural texture of the stone. The choice of furniture was also made in such a way so as to achieve a harmonious balance of old and new. “In the bedroom, for instance, we included an old chest of drawers to contrast with the clean lines of new furniture,” says Peter. “The client was very receptive to ideas, and the line of communication between us was really good – two factors which lend themselves to a good finished product.” The apartments are located within a historical yet changing capital city – did this merit specific design considerations? Peter says, “when you are dealing with a place like Valletta, which is a UNESCO World Heritage site, your starting point needs to be respect towards the building that you have been presented with – your interventions should serve to enhance the original building, rather than dominate over it.” Sandro is in agreement, and adds that one also needs to respect the proportions of the building, including those of the apertures, the rooms DECEMBER 2015 / JANUARY 2016

Tech Trends

The rapid milestones achieved in the world of gadgets and technology are jaw-dropping, and just when you think inventors and creators have done it all, you discover that they’re just getting started. Martina Said delves into the latest tech trends. 01. Ultra-high definition TV Recent innovations in the world of TVs, such as the curved and 4K TV are making way for an even more high-definition unit, if that were even possible. While ultra-high definition sets such as 4K TVs were already capable of stunning picture quality and colour displays, they are already paving the way for an even more impressive 8K format, which is approximately 16 times more detailed than the average highdefinition picture we are accustomed to. The future is looking sharp.

02. Everything on demand

03. A Star Wars icon Star Wars fanatics are biting their nails until the arrival of The Force Awakens, and now, you can take a piece of the action home with you. BB-8 App-Enabled Droid by Sphero is the droid you’ve been waiting for, and it is unlike any other robot. It has an adaptive personality that changes as you play and based on your interactions with the droid, it will display a range of expressions and even perk up when you give voice commands. Leave BB-8 to explore its surroundings autonomously, guide it yourself or create and view holographic recordings.

04.

Doesn’t a concept car capable of driving itself to a destinati2on manually sound exciting? For those that enjoy an occasional day off from steering the wheel, it certainly does. The emergence of self-driving cars, such as this Mercedes-Benz F 015 autonomous driving automobile which debuted at the 2015 Consumer Electronics Show at the beginning of the year, are expected to make it big in 2016. They are automated, robotic alternatives to some of today’s hottest roadsters, and will undoubtedly open new horizons for the global automotive industry.

05. The smart belt

01.

www.fulltrending.com

Electronics manufacturers are ensuring that every item – domestic, commercial or personal – gets the smart treatment, and this motorised belt, which adjusts to your body when you sit down and extends itself as your stomach fills up, is a case in point. French company Emiota created Belty, which not only adjusts itself to your body, but also tracks your waistline and measures your activity. Alongside the belt’s tiny motors are an accelerometer and a gyroscope. Shy to loosen your belt in front of friends or colleagues after a marathon meal? Belty will do it for you.

06. The ultimate kids’ bed The internet has also infiltrated our beds, which almost comes as no surprise. This clever kids’ bed, however, could be every parents’ dream come true. The SleepIQ children’s bed, which syncs with an app on your phone, monitors your child’s slumber and will alert you when they get out of bed. It also has lights underneath it to help guide them if they need to get up in the middle of the night. The bed is fully decked out with a remote control night light as well as a ‘monster detector’ to reassure your kids that no baddies are hiding under there. Genius! cc

02.

www.movey.co.uk

Network television gave rise to cable, and this is now ushering in the next era of video-on-demand services, which beams films and shows over the internet straight to your set. Electronics manufacturers are stepping it up and offering unlimited access to an unimaginably vast range of content and programmes, which are not strictly available for television sets alone. You may access such content from a personal computer, smart phone, tablet or other device, virtually anytime, anywhere.

GADGETS

04. Self-driving cars

05.

03.

www.anonymoustecky.com

www.amazon.co.uk >

www.thecarconnection.com

06. DECEMBER 2015 / JANUARY 2016

www.theverge.com

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Private Equity: Luring the sophisticated investor Businesses need investment to grow and expand. Companies obtain the required investment by borrowing funds (bonds or bank financing) or by listing the company on a stock exchange. Alternatively, companies may opt to seek financing from private investors (referred to as Private Equity (PE)).

The mechanics of private equity Private equity investment includes seed stage financing and start up financing where no revenue is being generated. Due to the high risks involved in this business stage, this phase is sometimes referred to as the valley of death. Private equity financing additionally includes expansion financing whereby breakeven companies are looking to increase their production capacities, efficient refinancing by modifying the mixture of debt and equity cost and replacement capital whereby capital is provided to finance a transfer of business from one venture capital firm to another or reduce leverage. All of the above are generally referred to as venture capital investing. Private equity also includes buyouts which can be subdivided into acquisition capital (capital provided to a company to acquire another company), leveraged buyouts (capital provided to an LBO firm to acquire another company) and management buyouts (capital provided to management to acquire a company, specific product line or division). The majority of private equity firms operate through a fund, which may restrict existing investors from redeeming their shares over the lifetime of the fund. It also limits new investors to pre-defined investing periods. The typical duration of a private equity fund is ten years, generally extendable to an additional two years. The management of the private equity fund is the responsibility of the general partner (investment manager) and financed by investors referred to as limited partners. The limited partners are most commonly institutional and high net worth investors. The differentiating factor when compared to other funds, is the fact that when a PE fund acquires an investment, it is also acquiring control of the company. Characteristics of a Malta PE fund PE funds are targeted to institutional and high net worth investors who are expected to be fully aware of the possible exponential growth of returns as well as the high risks involved. As a result, the fund would be established either as Professional Investor Funds (PIFs) or as Alternative Investment Funds (AIFs). While the former are usually set up by de minimis managers under the AIFMD, the latter are established under the Investment Services Rules for AIFs, a dedicated Rulebook that complements the rules for full AIFMs.

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The partnership En Commandite, or Limited Partnership (LP), is the preferred vehicle for PE funds which legal structure has been specifically optimised for the use of the LP as a PE fund vehicle. The Maltese LP provides investors the option to have the investment schemeâ&#x20AC;&#x2122;s capital divided or not divided into shares. This enhances the transparency of the structure increasing its flexibility. Since limited partners are essentially passive members, the LP structure is particularly suitable for collective investment schemes since it is the general partner who is responsible for the management of the partnership. Setting up a PE fund in Malta At the forefront of opting to domicile a fund in Malta is undoubtedly the strong regulatory regime implemented by the MFSA and in-line with all EU directives and regulations. Thorough due diligence checks on directors ensure that investors have peace of mind when investing in a fund licensed in Malta. Maltaâ&#x20AC;&#x2122;s OECD-compliant taxation regime is among the most competitive tax structures within the EU with over 60 double taxation agreements negotiated with other countries. Maltese funds are not subject to income and/or capital gains tax, or any withholding taxes made on distributions. Malta also boasts an excellent workforce of professional and qualified investment managers, fund administrators and valuers. Ongoing fund costs which mostly consist of fees from service providers are generally less than half of other renowned EU jurisdictions, making Malta a competitive option for fund set-up. As an EU member state, Malta domiciled PE funds have to additionally comply with EU regulations on Collective Investment Schemes and AIFMD. Following the transposition and consequential implementation of the AIFMD into national law, MFSA has classified 33 licensed funds under PE. These funds have AUM of approximately half a billion euro and form part of a growing PE industry in Malta that includes licensed PE managers, PE companies and SPVs set up under the Companies Act, 1995.

Whatâ&#x20AC;&#x2122;s next As a member of the EU, Malta will continue to be at the forefront in implementing EU regulations and develop to become one of the prime jurisdictions for PE fund domiciliation. Furthermore, MFSA is currently working on a set of dedicated guidelines that simplifies the setting up of PE Funds either as PIFs or AIFs. All this augurs well for a bright future in Malta for the PE funds industry. cc Mandy Ducker Camilleri is a senior audit manager at KPMG. She has over a decade of experience in the audit function and is specialised in private equity funds. During her tenure at KPMG, she has worked locally as well as abroad to leverage her knowledge of the fund industry. Mandy Ducker Camilleri is a fellow of the Malta Institute of Accountants (FIA) and the Association of Chartered Certified Accountants (FCCA). She additionally holds a diploma in Fund Administration awarded by the University of Manchester.

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EVSG agent places second in Swedish Golf Championship in Malta The Swedish Golf Championship is celebrating its fifth anniversary. This annual golfing event, held by the Swedish Club in Malta (Svensk Klubben Malta) started in 2011 when some Swedes came together and thought they should make an annual gathering and invite local Swedish people to compete for the title ‘Best Swedish Golf Player on Malta’. Rolf Tomasson took on the challenge and responsibility to arrange these yearly gatherings together with his wife Lissi Tomasson. Malta has currently around 200 members and is growing every year. Being a member of the Swedish Club in Malta does not only provide valuable information but also allows one to be part of a warm community of

Understanding absolute return strategies By Adrian Borg Following the recession of 2008 and the relatively high market volatility which ensued, investors have shown increased interest in new ways of obtaining portfolio diversification. By default, investors do not like surprises in their portfolio performance, especially negative swings. In essence, absolute return strategies pursue returns independently of traditional benchmark indices. These strategies differ from traditional stock and fixed income investing with the aim of reducing market volatility while achieving positive absolute returns in various market conditions. Absolute return strategies use various asset classes and hedging techniques, including derivatives, to achieve stable returns with moderate volatility. An absolute return objective removes many constraints on its fund managers with the intention of allowing them to implement a strategy that is focused on

Swedes living in Malta and Gozo. In this year’s competition, which was held on Friday 6th November in the Royal Malta Golf Club, a total of 29 participants (12 women and 17 men) were chasing the noble title. As per the international golf rules 18 holes were played. The golf match was followed by a dinner and a

lovely prize ceremony. We are proud to announce and congratulate our Engel & Völkers Sara Grech agent Rick Wolverin, who was ranked in second place, just missing out on the first position. He was presented with a silver trophy to celebrate his astonishing achievement. cc

addressing the levels of market volatility exposure within the portfolio. Investments used by absolute return strategies go beyond stocks and bonds and include assets such as commodities, real estate and foreign currencies. These assets are chosen opportunistically as a means to achieve stable positive returns, whilst being excluded when negative returns are expected. The intention behind this combination of investments in different asset classes is to have low performance correlation with the aim of enhancing riskadjusted returns. Absolute return strategy fund managers also make use of a variety of derivate instruments such as forwards, futures and options which enhance risk reduction by hedging against market declines. Derivatives can also be used to help the strategy perform independently of the overall market direction. These assets are generally not accessible to retail investors due to their complicated financial structures. Absolute return strategies offer a complement and can be valuable additions to traditional mutual funds which are generally constrained by specified investment restrictions such as geographical and asset class restrictions. cc

The opinions expressed herein should not be interpreted as investment advice. VFM is licensed to provide Investment Services in Malta by the MFSA. Issued by VFM, TG Complex, Suite 2, Level 3, Brewery Street, Mrieħel BKR 3000, Malta. T: 21227311, E: infovfm@bov.com, W: www.vfm.com.mt. Source Valletta Fund Management Ltd.

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FIMBank organises educational seminar for shareholders FIMBank recently hosted its local shareholders to a seminar during which participants were given an overview of the Group’s global activities as well as the range of trade finance products and services it provides. This information session was held in collaboration with the Malta Association of Small Shareholders and was supported by the Malta Stock Exchange. In his opening address to the event, Dr John C Grech, Chairman of the FIMBank Group, referred to the collaboration between FIMBank plc and the Malta Association of Small Shareholders. Dr Grech explained that “FIMBank was one of the first listed companies to open its doors to the Association. We are committed to the protection of shareholders’ rights and their equal treatment. We are also always looking to keep open, extend and diversify

Introducing Chivas 12 ‘Made for Gentlemen’ by Globe-Trotter Craftsmanship, generosity and a passion for travel are at the heart of the new collaboration between British luxury brands Chivas Regal and Globe-Trotter. Renowned for handcrafting luxury luggage, Globe-Trotter has partnered with Chivas to design an exciting series of three collectibles for the whisky connoisseur and world traveller – the Chivas 12 ‘Made for Gentlemen’ by Globe-Trotter limited edition gift tin, a limited run of Chivas 12 ‘Made for Gentlemen’ by Globe-Trotter 20 inch carry-on cases and a made on request Chivas 12 ‘Made for Gentlemen’ by Globe-Trotter steamer trunk. The Chivas 12 Made for Gentlemen by Globe-Trotter limited edition gift tin houses a bottle of Chivas 12 blended Scotch whisky and showcases a vibrant tale of international travel. Inspired by the tradition of applying stickers onto one’s luggage to proudly

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the channels of communication with all our shareholders, as well as ensuring that the wider community of Maltese shareholders is kept abreast of developments at FIMBank.” FIMBank’s CEO Murali Subramanian expressed satisfaction at the high turnout for this session: “Trade Finance is a traditional business that is at the heart of global commerce. It is the expertise and focus at FIMBank on delivering clientspecific solutions that has given FIMBank a reputation of being a significant and important trade finance provider globally. This is one of the more distinguishing features of FIMBank. I trust that this demonstration of our capabilities and solution orientation came across in today’s presentations.” FIMBank’s presentations were delivered by Dennis Camilleri and Lorna Pillow, senior officers in the Trade and Commodity Finance and Forfaiting businesses respectively. Mr Camilleri explained the nature of FIMBank’s trade finance business, while Ms Pillow gave an overview of forfaiting and elaborated on the advantages of this alternative financing solution. The presentation of the CEO of the Malta Stock Exchange, Eileen V Muscat focused on recent market trends and developments, as well as new opportunities that will be available to local investors and SMEs.

showcase destinations visited, bespoke luggage stickers were hand-drawn by the British illustrator Andrew Davidson to celebrate iconic cities and adorn the contemporary tin design. The exquisite craftsmanship, classic vintage profile and luxurious quality of Globe-Trotter luggage cannot be questioned as the finest not only in England, but the world – quality that transforms a suitcase from just a plain container into a tastemaker and style statement. Globetrotter has been a fashionable favourite for over 100 years, with fans including such figures as England’s Royal Navy members, South Pole explorer Robert Falcon Scott, Winston Churchill, Queen Elizabeth II, Princess Diana (Globetrotter creates bespoke luggage for the royal family), Daniel Craig, Kate Moss and many more. Richard Black, Global Brand Director of Chivas Regal explains: “we are delighted to be partnering with Globe-Trotter for the fourth stage of our Made for Gentlemen journey. There are many synergies in our

Finally, the PRO of the Malta Association of Small Shareholders, Tarcisio Barbara thanked FIMBank for organising the educational activity. Mr Barbara explained that since its foundation MASS has evolved considerably. It is now “fulfilling its mission of increasing financial literacy,” and knowledge of MSElisted companies among local shareholders and investors. cc FIMBank p.l.c., Mercury Tower, The Exchange Financial & Business Centre, Elia Zammit Street, St Julian’s. T: 2132 2100; E: marketing@fimbank.com

values and approach to craft. Modern gentlemen are constantly on the lookout for authentic, stylish experiences and products wherever they are in the world and we believe the three limited editions we co-created with Globe-Trotter could be a passport to just these types of experiences.” cc Chivas is marketed and distributed by Farsons Beverage Imports Co Ltd. Trade enquiry – T: 2381 4400.

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The management of your wealth Wealth Management is generally perceived as the offering of private banking services and investment advice to wealthy individuals and their families. However, it is much more than that. Aldo Scardino, Bank of Valletta’s Executive Head for Wealth Management stresses that the key to wealth management is the relationship with the client. Wealth Management is intrinsically about the management of relationships with the clients focused on the growth of their wealth over time. Indeed, these relationships are carried across generations, with many of our long-standing clients introducing BOV to their children so that we can help them grow their own investments with a view of absorbing their future bequests. Managing a relationship starts with the profiling of the client in order to be able to match appropriate investment vehicles that are adequate for the individual, his circumstances and objectives. All this is a result of a rigorous process, structuring appropriate and suitable investment proposals

and their execution, whilst monitoring investments and the safekeeping of assets. BOV’s ethos is ‘know your client’, and this principle is the cornerstone for the team at Wealth Management. Only by nurturing sound working relationships with our clients can we guarantee a truly personalised service. Our aim is to build a tailor-made portfolio of investments that fits our clients’ financial needs, objectives and risk tolerance. We meet up with every client ensuring we understand his preferences, objectives and individual requirements. Meeting the clients regularly helps us understand the level of risk sought and any other factors deemed important for the investment relationship to succeed. To make the process more robust, we have a team of dedicated researchers who provide our investment advisors with up-to-date information about financial markets and investment strategies. The BOV Wealth Management outfit forms part of the largest financial organisation in Malta, the origins of which date back to 1809, and which to this very date is one of the major drivers of the Maltese economy. We offer the full suite of financial services including personal and private banking, investment management and fiduciary services. Thus, we are in a position to help our clients take charge of, and safeguard their financial future and throughout generations. cc

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

the location in the heart of Malta’s longest established yachting district means a full range of reliable yachting service providers is on hand to carry out an off-season maintenance programme. A total investment to date of over €9 million since 2011 has seen the complete refurbishment of the marina to the highest international standards. With security a priority from the start, yachts berthed in the marina enjoy 24 hour patrols, access controlled pontoons, skips and showers,

Wi-Fi and CCTV coverage. The latest phase of continuous improvement involved the purchase of new offices, with clubhouse and washroom facilities on site. With a strong foundation of excellent natural location, sheltered berthing, experienced and capable staff and top quality facilities, the management of Creek Developments plc is working hard to consolidate the position of the Msida & Ta’ Xbiex Marina as the winter marina of choice for discerning yacht owners. cc

Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, il-Belt Valletta.

Winter berthing in the Msida & Ta’ Xbiex Marina Since Creek Developments plc took over the management and operations of the Msida & Ta’ Xbiex Marina in January 2011, there has been growing interest in the Marina as a winter berthing destination, attracting an ever-increasing number of low season visitors. Despite fierce competition from other Mediterranean marinas, the Msida & Ta’ Xbiex Marina has proven to be a strong contender in the market, offering an unrivalled combination of uniquely sheltered berthing, security, central location and ease of access, in exceptionally comfortable surroundings. Protected from all wind and swell directions by the natural harbour and a breakwater at the entrance to the marina, the winter yachtsman has the best of both worlds: a calm berth with easy access to the open sea. The proximity to an international airport offers the opportunity to fly in for a few days’ sailing at short notice, while DECEMBER 2015 / JANUARY 2016

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Europe in 2015: A socio-political perspective Malta has made noteworthy contributions to the Mediterranean region’s policies in 2015, but what have been the major socio-political challenges for the wider EU? Jo Caruana speaks to two expert analysts for their thoughts on 2015 and suggestions for 2016.

2015 hasn’t been a great year for Europe. Mainland Europe was under siege, with two major terrorist attacks in Paris. Meanwhile, ISIS are penetrating further into the continent and it feels as though their threats have become more real and omnipresent than ever. There have been challenges on an economic level too. So what, I wonder, are the main socio-political aspects that 2015 will be remembered for? Professor Stephen Calleya, Director of the Mediterranean Academy of Diplomatic Studies at the University of Malta and a DECEMBER 2015 / JANUARY 2016

well-known analyst, agrees that 2015 has, once again, proved to be a very challenging year for the global community in general and Europe in particular. “The economic downturn that has been with us since 2008 has continued to undermine efforts to stabilise economic relations across Europe and has also sent negative shock waves across the developing world and China,” he says. “As a result, Europe has continued to struggle to address the economic situation in Greece, thus undermining confidence in the future of the euro.” Professor Roderick Pace, Director of the

Institute for European Studies of the University of Malta and a Jean Monnet Professor, believes that Malta itself fared well in 2015. “As for the EU, though, terrorism and migration rocked one of its central pillars – Schengen and internal free movement,” he says. “The lack of solidarity amongst some member states became more evident. Brexit compounds this negativity, besides being untimely. There are other unresolved problems: Georgia, the Ukraine and relations with Russia. Turkey has gained relevance on migration and defeating terrorism. But it has also named its price for co-operating with the Union.” 95

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“This trend of increased terror acts is already resulting in a re-think of security measures in contemporary international relations.” Prof. Stephen Calleya

Economically, Prof. Pace says there have been some positive signs, as certain troubled countries – Spain, Portugal and Italy for instance – witnessed their first signs of recovery. “That said, growth is fragile and unemployment too high,” he says. “Strong reservations persist on whether the fundamental problems have been addressed. If not, the ghosts of Christmas past may yet return to haunt us. Meanwhile, the Greek problem has been postponed to 2018.” Further afield, Prof. Pace cites that the Iran nuclear deal was a positive step, while the usual standoffs between the Koreas and tensions between Israel and the Palestinians were not. “The Saudi-OPEC price war against US shale oil raged on during 2015, spelling good news for economic recovery, but bad news for climate change mitigation,” he says. Naturally, given the immense tragedies earlier this year, immigration has also been high on the agenda in 2015. “The inability of the EU to introduce a collective strategy to deal with this reality has resulted in a disjointed and chaotic outcome where the victims of civil wars have often ended up suffering even more than they were before they sought refuge in Europe,” continues Prof. Calleya. “We have also witnessed a tremendous spike in acts of terror worldwide that have reached Europe. The most horrific attack in Europe took place on Friday 13th November, when more than 130 people lost their lives in Paris. This trend of increased terror acts is already resulting in a re-think of security measures in contemporary international relations and is certain to result in a more enhanced security policy in Europe and beyond. “In my opinion, if the EU is unable to introduce a more effective Schengen border monitoring system within the EU and significantly upgrade the role that Frontex is supposed to play when it comes to border control with neighbouring non-EU states, then a stronger country by country security framework is likely to emerge, where every EU state seeks to safeguard itself 96

unilaterally,” Prof. Calleya says. ISIS – a word few people had heard even a couple of years ago – has also become a major threat to world safety. “ISIS is a product of our times; of open borders and freedom,” says Prof. Pace. “It cannot be defeated by military means alone. The military campaign should not however be discounted. While the 2003 invasion of Iraq was counterproductive, this war is worth fighting. We must avoid excessive paranoia. Terrorism must not be allowed to destroy our model of society.” Prof. Pace also believes more must be done to defend the EU’s external borders while boosting internal security. “This needs more intra-EU cooperation and information sharing, preferably with the creation of a European FBI. Europeans need to act on

information gathered. This is more cost effective than eliminating Schengen, which will increase costs for business. “Ethnic and religious communities have to be integrated more, and Europe needs to fight extremism and radicalisation of all types. The internet needs watching. We must be careful not to lump Muslims together. I use this analogy: of the millions who attend football stadia, only a handful are hotheaded hooligans who shame the game. We also need to re-examine the ethical, moral and legal borders separating freedom and security, within the confines of the rule of law and the current challenges we face.” Malta, meanwhile, has made noteworthy contributions to the region’s policies in 2015, by hosting the recent Valletta Summit on Immigration and, more recently, CHOGM. DECEMBER 2015 / JANUARY 2016

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“In the EU terrorism and migration rocked one of its central pillars – Schengen and internal free movement.” Prof. Roderick Pace “The Valletta Summit on Migration was a historic moment in Malta’s foreign policy, as it was the first time that, as an EU member state, we hosted and contributed to the EU’s external policy in such a large gathering of states. The most successful outcome of the EU-Africa summit is that it helped to further raise the profile of the important challenge of illegal migration in the Mediterranean.” For Prof. Pace, CHOGM was also positive, “both for Malta and the Commonwealth. It increased Malta’s visibility,” he says. “In her last message to Commonwealth leaders, HRH the Queen urged Commonwealth leaders never to lose trust in one another and to ‘keep talking’. May I emulate her advice? Malta now has a mission to continue to pursue the implementation of the Malta CHOGM and the Valletta Summit conclusions diplomatically.” Looking to the future, Prof. Pace is quick to say that 2016 is likely to be a better but difficult year for the EU and Malta. “Economies go through cycles. I think that in times of economic plenty, Malta needs to build strong buffers against future shock. Older folk used to say that water cisterns to meet future DECEMBER 2015 / JANUARY 2016

needs can only be filled when rain is plentiful, not during the dry months. We need to make more of our economic summer.” Finally, Prof. Calleya explains that he is eager to see Malta continue to play an influential role in EU circles. “Adopting a strategy of being consistently engaged in issues pertaining to Euro-Mediterranean security has enabled Malta to raise its profile as an effective member in the EU external relations decision-making process. This is clearly evident when one recognizes the fact the issues such as illegal migration have today become a foreign policy priority across the EU. “Thus, throughout 2016 Malta is very well placed to continue to influence the EU socio-economic debate as it will form part of the EU Presidency troika that will lead to Malta’s Presidency in the first half of 2017. Malta’s Euro-Mediterranean vocation is certain to further raise the level of EU debate on security related issues emanating from the Mediterranean area which include migration, terrorism, economic stability and good governance capacity building,” he concludes. cc 99

Thousands of years in the making Sarah Micallef hops over to the sister isle to learn about Gozitan artist Victor Agius’ deep connection with the earth, and the way in which the tangible link with humanity’s roots comes through in his work, be it in the form of performance, installation, sculpture or painting.

s I sit with Victor Agius in his bright studio in Xagħra, just minutes away from the megalithic temple complex of Ġgantija, the artist’s connection with the primitive is immediately apparent. Pieces featuring cracked raw clay and soil-strewn plant roots adorn the walls, and several ceramic and clay sculptures appear to grow organically from their surfaces. But this is where his finished work is displayed in an orderly fashion. A minute or so away, I am given the opportunity to visit the studio in which he creates the majority of his pieces – a raw space indicative of the artist’s spirit. “Watch your step,” he tells me, and I can see why. Fragments of past work and pieces which haven’t been finished yet coat every surface, jostling for space with all manner of tools and receptacles holding samples of earth and clay. Still, it isn’t even here that you could consider his work’s place of origin. Rather, the majority of it has been thousands of years in the making. DECEMBER 2015 / JANUARY 2016

The Neolithic temples and prehistoric sites are, according to Victor, the punto di partenza of much of his work. “I find inspiration in the earth, and the primitive. A lot of the materials I use are natural – I go around the islands and pick up different sands and soils,” he says. Describing his medium as primarily made up of objets trouvés, the artist explains that it consists of found items that are displaced, casting a new statement. This hasn’t always been the case for Victor however, who started out as many young artists do, utilising more traditional media. Looking back, Victor tells me that he owes a lot to his father. “My father is a wood sculptor who has his own style – that is where my first contact with art came from. I grew up in his studio – my toys were plasticine, clay and stray bits of wood,” he says. But while his first link with the art world came from his father, he never pushed him in any one direction. “He was wise enough not to restrict me or choose a path for me. It was one of the reasons that I started making the first steps toward something that is my own,” Victor says.

Photo by Alan Carville

Victor Agius, Pulverem Project, performance at Xagħra Parish Cemetery, exhibited at VISTA in 2010. Photo by Nadia Said.

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“Nowadays, I don’t limit myself to any one medium – I use the medium in order to facilitate the message I would like to deliver.” 101

Photo by Alan Carville

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Victor Agius ‘’Sia il firmamento in mezzo alle acque per separare le acque dalle acque’’ 2010. Mixed media on canvas. 90x60cm.

Starting with weekly private lessons with artist Harry Alden as a boy, Victor went on to graduate from the University of Malta’s Fine Art Department in 2004, and began his career in teaching, while still finding time to work on his own projects. Feeling the itch to travel, he went on to further his studies in Perugia, Italy, before attending Central Saint Martin’s College for Art and Design in London. “It was very exciting. The gallery scene and the tours we would have, the tutors who were internationally renowned artists – it opened up many doors.” After his studies and travels abroad, Victor knew that he had to delve deeper, and was encouraged to embrace experiments in conceptual events and installation, adopting them as his language. Recent ceramic work has seen Victor move away from glazes in favour of the raw feel of clay in its primal state, sometimes even left unfired. He tells me that he sources local clay, so as to strengthen the connection and the narrative

hidden beneath the earth which he holds so dear. “If I happen upon a construction site, and I see that they’re digging to make room for garages or a pool, a light bulb goes off in my head – it’s like I’m looking for treasure. I go with my buckets and explain what I need the clay for. I also collect terra rossa (red earth) and rina (yellowish gravel) from such sites. Sometimes they give me the perfect excuse and assume I’m going to use the materials to create a traditional Christmas crib, which is a strong tradition in my village – but I’m giving myself away here!” he laughs. Having said that, clay isn’t the only medium he works with – his practice incorporates performance, installation, sculpture and painting alike. “Nowadays, I don’t limit myself to any one medium – I use the medium in order to facilitate the message I would like to deliver. For me, the important thing is that the message comes through,” he says. Going back to 2010, he recalls a piece

Victor Agius, Ġgantija 2013 Project, Sculptures in terracotta,installed at Unesco site Ġgantija Temples, Xagħra Gozo. Photo by Daniel Cilia.

Victor Agius, Ġgantija 2013 Project, installation view, St James Cavalier, Valletta. Photo by Matt I Am Hush.

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incorporating performance which remains close to his heart. “I had wanted to do something using my body, clay and a burial site, and I was lucky to get that opportunity when an extension was being built to the Xagħra cemetery. It was difficult to get permission, but luckily, the archpriest understood the seriousness of the project and believed in me,” he recalls. Adding a deeper layer of meaning to the work, Victor explains that he used the grave which was bought by his family to carry out the performance, maintaining, “it is the place that I will end up one day.” DECEMBER 2015 / JANUARY 2016

Portraying the message that we are made of earth, and it is the earth we will go back to, the artist used ash from objects he burnt with the project specifically in mind. Looking back, he recalls giving a few of the locals a fright as they came to pray: “they probably thought I had lost my mind!” He would go on to recreate the performance in Croatia for an international contemporary arts festival, and has also exhibited work in several other countries, including the Contemporary Art Biennale in Florence. Victor explains that when it comes to contemporary work, the process becomes as interesting and important, if not even more so than the end result. “The more a work provokes and instills questions and thought, the more you achieve your goal of creating a dialogue, particularly when you have a piece that is not restricted to a gallery wall, but that will experience interaction as public art.” Over the years, Victor has also collaborated with a number of other artists from different disciplines. One such project is the interdisciplinary Ġgantija 2013 Project, for which he collaborated with composer Dr Mariella Cassar Cordina and Dr Immanuel Mifsud. Featuring interventions in sculptures and performance work, the first phase took place at UNESCO World Heritage site Ġgantija Temples. “The challenge was creating an interdisciplinary project that combines contemporary art, musical composition and literature within such a powerful space. We needed to be subtle in the way that we presented our interventions,” he maintains. Part of his work here included terracotta moulds of soft drink bottles placed atop a prehistoric table, which the artist explains is a modern play on the ancient vessels found by archaeologists in the area. The final phase took place at St James Cavalier, featuring sculptures and mixed media work in collaboration with composer Dr Mariella Cassar and writer Dr Immanuel Mifsud. “We didn’t showcase the same work here, as it wouldn’t have made sense within the context. Speaking of the terracotta pieces created for this part, Victor explains how these were not moulded by his hands. “I found prehistoric rocks and boulders, and DECEMBER 2015 / JANUARY 2016

Photo by Alan Carville

“Pressing the slabs of clay against the rock, I removed them when leather-hard, giving a negative of the rock itself – as if there is the spirit of the rock within the material and the space the rock was occupying.”

Photo by Alan Carville

CC MEET THE ARTIST

took negatives of them using flatly rolledout clay slabs of clay. Pressing the slabs of clay against the rock, I removed them when leather-hard, giving a negative of the rock itself – as if there is the spirit of the rock within the material.” At the moment, another collection of Victor’s work is being exhibited at the Mdina Cathedral Contemporary Art Biennale, this time using the account of St Paul’s shipwreck as a starting point. “I collaborated with a number of other artists on this project, using moulds from statues of St Paul, and borrowing the form of something that is still used in contemporary times in Malta while making it my statement by using local soils, sand and clay” he says. The collection also includes rock samples that the artist collected from St Paul’s Islands.

Victor Agius GENESIS, Gozitan blue clay, 268x190x190cm, Installed at the National Museum of Fine Arts, Valletta during VIVA Contemporary Arts Festival 2014. Photo by Elisa von Brockdorff.

“I would like to keep digging and searching. My vision is to continue walking into the unknown.” 105

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Photo by Alan Carville

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our schools needs to be remodelled both in the way it is presented as well as the way in which it is recognised as a holistic educational experience,” he says. As for his own future plans, Victor’s intentions are clear. “I would like to keep digging and searching. My vision is to continue walking into the unknown. If you stop doing that, it’s as if you’re dead.” cc

Victor Agius ‘Ricordi Ancestrali’ 2010, Mixed media on panel, 120x80cm. Image courtesy of Studio 104 Fine Art Space Valletta.

He tells me has been accepted as about his one of six within own troubled a national journey to the competition islands for the for public project, echoing art which St Paul’s legend. will come to “It was really bad fruition. “It weather, but I will be the first found someone time that I create to take me on something that a luzzu. When we will remain arrived, he warned me within the not to be long, as the wind public sphere was picking up, and there was permanently,” no sheltered area for him to he says, explaining tie the boat if the waves got too what the piece will be Victor Agius ‘Mediterranea’, glazed ceramic sculpture. Exhibited at high. I was taking photos, making like. “It will be made up of the European Ceramic Context moulds, documenting and collecting Biennale, Denmark, 2014. a large rock that is sawn in half, samples when he called me and said, ‘I’m enabling people to walk through it. Poetry in coming now or else I’ll have to leave you galvanised steel will be etched into its walls. there!’ It was crazy, he couldn’t come close to The floor will be made of glass, so that when land, so I literally had to jump back and forth people walk through it, they can see the red between land and boat several times carrying soil beneath their feet.” heavy pieces of clay and rock!” Asked about what he thinks of the art Speaking of his creative process, Victor scene in Malta and how it is developing, explains that the starting point will often Victor believes that we are currently come from something tangible – the experiencing a contemporary art texture of an object, its story, and how it renaissance, but there is still much that has changed over time, developing over a can be improved. “A lot of positive projects long process. He goes on to let me in on a are taking place – the trajectory taken project that is still in its infancy – another by St James Cavalier, Arts Council Malta, collaboration with a number of other artists, MUŻA, VIVA International Arts festival, the a marble sculptor, an author, a choir and a Biennale in Mdina – but there is always room composer in a very special place in Malta. for improvement. We need more backing And that isn’t all that’s on the horizon for and spaces to be hired in kind to artists as the artist in the immediate future. Victor has open studios to work on temporary new just received word that his proposal Ħaġarna art projects. Also, the art education in

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Food trends

01. Locally-sourced ingredients With so much anxiety over what’s in our food and where it comes from, knowing the exact origins of the dish you’re eating has become a priority for many. Many restaurants are making it a point to use meat that was sourced close to home wherever possible, and in 2016, we’re also bound to see the rise in use of plenty more home-grown vegetables and fruit, even in restaurant dishes.

modernfarmer.com

The modern foodie is more comfortable than ever with the idea of eating raw fish, so the time is ripe for the rise of poké. Enormously popular and ubiquitous in its native Hawaii, poké is made by cutting tuna, octopus, salmon or crab into thick cubes, drizzling the mix with soy sauce and serving it on a bed of rice. You can garnish with chilli peppers, slices of avocado, fried onion and sesame seeds – or any other ingredient that floats your boat!

What new flavours and fads will be showing up on our menus in 2016 and beyond? Marie-Claire Grima picks the best of the bunch.

Veganism and the paleo diet may seem like strange bedfellows, but it turns out that they’re highly complementary and blending them together provides you with the best of both worlds. Pegans get all the health benefits of veganism, with sufficient protein to boot – meat and eggs are allowed, but not dairy; fruit and vegetables should be low-GI to keep blood sugar levels steady, and the only grains allowed on the menu are gluten-free.

Acai has been touted as a superfood for more than a decade, but it’s been given a second wind by the rise of acai bowls, which have been described as ‘a smoothie you eat with a spoon’. The basic recipe combines acai juice with your favourite fruits and veggies – popular choices include bananas, berries, mango, pomegranate and kale – which is then topped with granola, nuts, seeds or more sliced fruit. They’re tasty, nourishing and lovely to look at.

wholeheartedeats.com

04. The pegan diet

02. Acai bowls

01.

Although quinoa is still enjoying its moment as the darling of healthy lunchboxes everywhere, it may soon be pushed to the side in favour of farro, another ancient grain that has captured the food-loving public’s imagination. Farro offers the same amount of protein and fibre as quinoa, but with less fat and more calcium. It’s also softer in texture than quinoa and has a pleasantly nutty flavour, breathing new life into that tired salad and giving extra heart to your warming winter soup.

03.

Mixing apple cider vinegar, ginger and a dash of maple syrup creates switchel, a beverage which was a popular summer drink in the American colonies in the late 17th century, and is now enjoying a heady revival. It’s refreshing, tangy and good for you – apple cider vinegar is low in calories and has been proven to decrease blood sugar levels. Dilute it with water and drink it to replace electrolytes and boost flagging energy levels, or use it as a mixer and get ready to party like it’s 1699. cc

05.

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poshpescatarian.com

05. Farro

06. Switchel

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FOOD&WINE

03. Poké

02.

04. 52kitchenadventures.com

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CC make the headlines

Third wave of globalisation to reshape trade: HSBC report • Global merchandise trade to quadruple to USD68.5 trillion by 2050 • Economic prosperity to be spread across developed, emerging nations • Eurozone economy to be 40 per cent larger by 2050 The world is on the cusp of a third wave of globalisation which will see global merchandise trade quadruple by 2050 and trade in services accelerate, thanks to increased economic integration and new technology, according to Trade Winds, a new report from Oxford Economics on behalf of HSBC. China, the US and Germany will retain their lead in merchandise trade in the years to 2050, according to the report, with France featuring seventh in the top 10 trading nations worldwide. The Netherlands, Italy and the UK, which are currently among the top 10 trading nations, will be overtaken by the likes of South

Korea, Mexico and other emerging markets, reflecting the trend of economic prosperity being more evenly spread across developed and emerging nations. Ian Stuart, HSBC Europe Head of Commercial Banking, said: “Europe was one of the first integrated economic blocs in history, which is a strength the region can draw upon as we enter the third wave of globalisation.” The report highlights several opportunities available to Europe in this third wave of globalisation, including expansion of the European Union (EU), reduced barriers to trade through the implementation of the digital single market in the EU, and agreement of further mega-regional trade agreements. Opportunities for businesses highlighted by the report include: • The rise of the collaborating specialist:

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Our analysis points to a future for specialists who collaborate with other bestin-class organisations to compete. Small players compete globally: Big won’t always be best, or even necessary to interact internationally. Operating models based on leasing rather than purchasing: New models for revenue income will fundamentally shift how companies operate, invest for the future and grow. Data is king: Using data to track the world today, particularly evolving consumer demands, and using it to forecast for the future will build new intelligent systems and ways of operating. cc

The full report is available via https:// globalconnections.hsbc.com/unitedkingdom/en/articles/trade-winds-shapingfuture-international-business

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Cleland & Souchet in Portomaso Malta’s leading purveyor of hampers and gifts From their iconic food and wine hamper collection to the vast range of exclusive brands and beautiful gifts, Cleland & Souchet is the place where you can find the right present whatever the occasion, and especially at Christmas. The flagship store in Portomaso is split between the ground floor which is dedicated to a wonderful range of gifts for ‘him, her and the home,’ while the first floor is dedicated to the world of quality wines, rare and premium spirits, cigars, fine foods and specialty confectionery and chocolates, most of which are exclusive to Cleland & Souchet. Each area of the store offers an incredible selection of brands and the friendly sales team is always at hand if you are looking for any advice or guidance. The team are also experts at gift wrapping any gift, which

The Palace lends its supports to Maltese talent The Palace, Sliema once again offered its support to local culture in its ongoing endeavour to promote the arts. Consequently the hotel has strengthened its relationship with Malta Philharmonic Orchestra confirming its position as a partner. This recent collaboration reflects the importance that the hotel together with the rest of AX Hotels gives to Maltese talent and culture.

makes the pleasure of giving so much greater. We also highly recommend that you try the C&S Wine Café for an excellent cup of coffee or a glass of your favourite wine as there is an incredible selection of 20 wines

by the glass to choose from to accompany a delightful menu of tasty dishes. cc

feel privileged to support musical groups such as the Cosmos Wind Ensemble. “We are delighted to be associated with the Malta Philharmonic Orchestra, in particular by offering accommodation to foreign artists since this is significant as part of a joint cultural tourism programme agreement,” Mr Callus said. The Executive Chairman of Malta Philharmonic Orchestra, Sigmund Mifsud expressed his gratitude for the hotel’s corporate sponsorship and support, adding that the partnership with The Palace highlights the importance and value of Maltese businesses supporting

the cultural sector. Mr Mifsud also showed his appreciation to V18 for its constant collaboration on a number of projects. The Chairman of V18, Jason Micallef explained that ‘Premieres’ is an association between Malta Philharmonic Orchestra and V18, and it is a new concept on such a high international level, including all Maltese compositions. The overall production of Cosmos’s CD is of high quality both in terms of project and musicianship. cc

The shop is open Monday to Saturday, 10am-7.30pm (9pm in December) and parking for patrons is free.

For further information or to purchase the CD contact T: 2124 4473; E: info@maltaorchestra.com

The Palace hosted the CD launch of Cosmos Wind Ensemble entitled ‘Premieres’, in collaboration with Malta Philharmonic Orchestra and V18. This ensemble has recently performed in Australia as part of the CHOGM Culture Outreach Programme. Next month the company will be performing in Frankfurt as part of the ECB European Culture Days. During this launch, the hotel Manager, Kevin Callus emphasised how AX Hotels are continuously encouraging local talent and Cosmos Wind Ensemble

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A new level of elegance with Garbo Designed to recreate that unique Italian sense of style and elegance, Garbo is the latest fashion boutique that opened its doors last March, at The Point Shopping Mall in Tigné.

Representing renowned Italian brand names like Henry Cottons, Cerruti 18CRR81 and Marina Yachting, Garbo is aimed at those looking for a combination of Italian flair, urban style and excellent craftsmanship. For men and women who love comfort and modernity the Cerruti 18CRR81 line offers stylish casual wear and jeans which are combined with elegance and quality that are the defining characteristics of the House of Cerruti. These collections combine up-to-theminute innovation in fabric technology. They

offer elegance, luxury and quality, which are the defining characteristics of Cerruti, whose distinctive style and key position within the global ranks of fashion, make it a veritable force to be reckoned with. The Henry Cotton’s collection offers an original and refined wardrobe that combines an exquisitely traditional British look with the contemporary and innovative style of Italian design. The stylish and sleek lines of Marina yachting clothes are a precise message of style, innovation and good taste that reaches beyond borders. It is a marine-inspired brand which offers exceptional design, freedom, uniqueness and a love for the sea. A careful balance between marine sportswear and urban elegance, the brand has left an indelible mark on the history of Italian style. Shopping at Garbo is a truly unique experience. cc

Camray entrusted with several prestigious projects Camray dates back to 1988 and since then has developed into a major turnkey and finishes contractor, having been entrusted with numerous prestigious projects. Camray is the brainchild of Raymond Camilleri who combined his entrepreneurial skills with his love for finishes, detail and precision to form a turnkey company completely dedicated to client satisfaction. Camray is also a sister company to Megaline; specialising in mechanical and electrical works, and Elmein; specialising in lifts and escalators, both commercial and residential. Camray has also ventured into Camray Marble, as well as restoration works. Its most recent business venture is Bridgepoint – a new and innovative company exclusively focused on highquality brassware for bathroom fittings, kitchen mixers and accessories. DECEMBER 2015 / JANUARY 2016

Camray’s aim, which has led to its success, is to constantly ensure that projects are carried out within agreed budgets, timeframes and to the required client’s specifications. The reputation and growth of Camray are a direct result of its rigorous adherence to job and time programming, technical assurance, design coordination, and most importantly, immediate response to the client’s needs throughout the project. This is

a result of it’s strong belief in customer care and that good servicing has to be an ongoing operation in order to be effective. This strong servicing culture is evident in its teamwork and client satisfaction. Some of the company’s recent completed projects include the historical St Elmo in Valletta, Sterling and Actavis, which specialise in pharmaceuticals, the newly refurbished MCAST in Kordin, Skyparks, and the Malta Gaming Authority in Smart City. cc For more information T: 2169 6015; E: camray@maltanet.net; www.camraycoltd.com 115

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Firstbridge: Generating business success through tailor-made solutions Firstbridge offers a complete range of professional services which span across accountancy, administration, payroll and backoffice support, to more complex services comprising financial advisory, taxation, consultancy and technical compliance. Established in 2005, the firm has been instrumental to the success of a wide array of businesses which range from logistics to retail, start-ups to mature organisations and service providers to product suppliers. Firstbridge builds on years of experience and comprises a multi-disciplinary team each specialised in their own distinct areas of expertise. As the name implies, Firstbridge positions itself as the first point of call for companies seeking advice of a business or technical

nature. Whether clients are seeking to set up from inception, looking to build on a strong business concept or generally determined to expand further, the firm’s core team is professionally qualified and experienced to support any such scenario. Firstbridge also speaks out to nonresidents seeking to invest in Malta, as the company can be used as the ‘first bridge’ to the Maltese islands. The firm is also able to assist small entities that would find it impractical to employ full-time personnel to handle accounting, administrative or HR responsibilities. Such companies can outsource these tasks to Firstbridge. When commenting about Firstbridge’s service offering, Managing Director Dean Micallef explained how the company seeks

to offer a personalised, tailor-made service, “provided that the clients and the business that we accept are consistent with our core ethical values, our purposely selected and assigned team members look towards a unique, client-centred approach that best suits the particular scenario. Our end goal is to ensure that our clients receive the necessary level of support required in the areas identified in order to allow them to focus on their core business priorities,” concluded Mr Micallef. cc For more information contact Firstbridge on T: 2132 2118; E: info@firstbridge.com

CC EDUCATION

Embracing lifelong learning Education is no longer limited to the young. Universities have never seen more mature students, and the amount and variety of degrees and specialised courses on offer today is such to encourage anyone to go back to school. In fact, both locally and abroad, business people and middle-to-senior management are increasingly opting to enhance and further their education by reading for a Master’s degree or by embarking on specialised courses. Sarah Micallef speaks to the experts to find out more.

“L

ocally, there has been an increase in take-up of both academic courses and short, specialised courses,” says Marvin Cuschieri, CEO at FHRD, which focuses on the development of the human resources profession in Malta. Indeed, he continues, “the need to embrace lifelong learning and the way technology is constantly transforming the workplace has led to an increase in individuals furthering their studies.” Dave Shaw, Head of Campus at Middlesex University, has also noted this increase. “This started more than two decades ago with in-house certificates, diplomas and Master’s degrees, mainly in

DECEMBER 2015 / JANUARY 2016

the area of management, for executives in specific markets,” he says, explaining that Middlesex University works with small, medium and large corporations to develop in-house courses. “Middlesex was a pioneer of work-based learning studies, a system of teaching and learning which builds upon and accredits the knowledge and capabilities engendered within the workplace. This system can create valuable relationships between the University, the employer and the student-employee, and the resulting research projects often brought important and far-reaching change to the workplace – from traffic control by a police force to management techniques within a multi-

national organisation,” continues Mr Shaw, adding that there is certainly a steady rise in take-up as change happens ever more rapidly and companies need to ensure they are ahead of the game. But what options are available to businesspeople locally, when it comes to strengthening their academic credentials? Middlesex University, which opened its third international campus in Malta in 2013, is aimed at delivering courses to people within the IT and financial services sectors. While there are many distance-learning options available today, Middlesex has a fully-fledged campus, with a dedicated academic team and a staff-student ratio which optimises the learning environment. 119

CC EDUCATION “Students can undertake part-time studies whilst remaining in employment, and benefit from all the support and encouragement they would want from a university,” Mr Shaw explains, adding that they can use the workplace as a context for research projects and dissertations. “This enables them to apply the knowledge, skills and capabilities learned during their studies to the realities of the busy everyday work environment,” he continues – an undoubtedly valuable tool for businesspeople. Apart from this, Mr Shaw highlights the fact that Middlesex University offers students the opportunity to upgrade from a Business Diploma to a Bachelor’s degree in International Business Administration, or from a Diploma in Computing to a degree in Computer Networks, Computing Science, Business Information Systems or IT. At Master’s level, the university offers MSc degrees in Investment and Finance, Business Information Systems Management and Network Security and Pen Testing. Meanwhile, the future will see a further expansion in the range of course and subjects available, Mr Shaw says. “We will be looking at expanding our academic provision in the coming years to meet the demands of the Maltese economy. Our aim is to complement the existing academic provision on the island and cater to the needs of ambitious employees in the finance and IT sectors.”

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“Making sure that individuals running operations are aware of what developments are occurring around them and how to embrace them will assist entities in staying a step ahead of the competition.” Marvin Cuschieri, CEO, FHRD

Established back in 1990, FHRD too has, for the past 25 years, offered a number of professional development courses. “Our aim is to provide students with a professional educational experience rather than a solely academic one. We do this by offering short, accredited, specialised courses mainly in HR and business management,” Mr Cuschieri explains, adding that these courses are constantly amended and new courses introduced in order to make sure that recent trends in the business environment are covered. As far as longer term courses at higher levels go, FHRD offers programmes at Certificate, Diploma, Bachelor, Masters and Doctorate level via its partner, the University of Leicester. Mr Cuschieri tells me that courses such as Marketing, MBA, Finance and HR have been offered in Malta since 2000. “These are provided via distance learning so as to enable professionals to continue working whilst studying,” he continues, stating that the University of Leicester was one of the first universities to offer its programmes online internationally. DECEMBER 2015 / JANUARY 2016

CC EDUCATION

“Management which is stuck in a style that was relevant 10 or 20 years ago could hardly describe itself today as top notch.” Dave Shaw, Head of Campus, Middlesex University

“Its first distance learning course was offered back in 1989. Today, Leicester is ranked in the top one per cent of the universities in the world by The Times Higher Education World University Rankings, and is also one of the top 25 universities targeted by leading employers around the world.” Asked why it is important for business people and people that are already within management positions to seek to further their education at this level, Mr Cuschieri cites a recent study which revealed that the top 10 jobs in 2014 did not exist in 2004. “This alone is a valid reason as to why individuals in management positions have to constantly up-skill themselves and keep abreast with developments,” he states, asserting that in the business world, the ability to change is paramount for success. “Making sure that individuals running operations are aware of what developments are occurring around them and how to embrace them will assist entities in staying a step ahead of the competition,” he continues. Mr Shaw is in agreement, affirming that people in middle and senior management positions need to take heed of the ways in which the world is changing, and at a much faster pace than ever before. “Technology, legislation, the impact of terrorism and conflict, the price of oil and shifting social structures all contribute to a rapidlyevolving landscape,” he says, maintaining that in order to take advantage of these changes, managers have to ensure they have the latest information available and that they know how to analyse and present it to others. Certainly, according to Mr Shaw, good managers are aware of new technologies and innovations and their impact on our social, financial and personal health: “management which is stuck in a style that was relevant 10 or 20 years ago could hardly describe itself today as top notch.” cc 122

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