The Commercial Courier April/May 2018

THE COMMERCIAL/77

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

APRIL/MAY 2018

Of art and science

Liliana Fleri Soler’s combined disciplines

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE IS YOUR BUSINESS PREPARED FOR THE NEW GENERAL DATA PROTECTION REGULATION? / A LOOK AT THE LOCAL GAMING INDUSTRY IN 2018 / ANOTHER RECORD YEAR IN TOURISM / HSBC CEO ANDREW BEANE TALKS BLOCKCHAIN, BIOMETRIC TECHNOLOGY AND MALTA’S ECONOMIC OUTLOOK / THE WINNERS OF DIN L-ART ĦELWA’S ARCHITECTURAL AWARDS 2018 / THE LATEST BUSINESS NEWS

THE COMMERCIAL/77

COURIER APRIL/MAY 2018

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OFFICE trends

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THE BUSINESS OF DATA PROTECTION The introduction of the General Data Protection Regulation (GDPR) has wideranging consequences for businesses operating in the EU as well as outside the bloc. Marie-Claire Grima finds out what it means for Malta.

29 IN FIGURES TOURISM IN 2017… IN NUMBERS A look into the figures related to tourism in 2017.

97 DESIGN TRENDS BINJA LAPARELLI, MACINA AND THE COACH HOUSE: THE REMARKABLE WINNERS OF THE DIN L-ART ĦELWA AWARDS FOR ARCHITECTURAL HERITAGE Sarah Micallef meets the architects behind the winners of Din l-Art Ħelwa’s Awards for Architectural Heritage, discovering what went into them and why they are deserving of the title.

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37 COVER STORY IS 2018 A SAFE BET FOR MALTA’S IGAMING INDUSTRY?

31 INTERVIEW BANKING ON THE FUTURE As he looks firmly towards the banking trends of tomorrow, HSBC CEO Andrew Beane talks to Jo Caruana about blockchain, biometric technology and Malta’s economic outlook.

The rise of the iGaming sector in Malta has resulted in buoyant economic figures, increased employment and sizable investment opportunities. Rebecca Anastasi finds out if the island will continue to enjoy this winning streak.

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style review

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.

This issue covers the period April/May 2018.

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

All rights reserved. Reproduction in whole or in part without written permission of the publishers is strictly prohibited.

133 MEET THE ARTIST EXPLORING BEAUTY IN ART AND SCIENCE Liliana Fleri Soler chats to Martina Said about her life’s passions, her most recent exhibition of sculptures, and the joy of sharing art with others.

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

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ON THE COVER Detail of painting by Liliana Fleri Soler.

Photo by Alan Carville.

Malta chamber’s bronze collaborating partners APRIL/MAY 2018

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CC Editorial

Solutions to the HR challenge Malta’s rate of economic growth in recent years has been unprecedented as year after year, the country is registering positive and encouraging trends of economic performance. Several factors have contributed to the country’s economic success, namely the thriving financial services, IT, hospitality and gaming industries, resulting in continued increases in employment, domestic demand and disposable income.

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o upside is ever unaccompanied by a downside, however. The country’s phenomenal economic performance has brought about challenges that the country has never faced in its modern history.

These challenges are related to both social and economic aspects. The single-most relevant challenge that Maltese businesses are facing is the acute difficulty of finding the suitable human resources to fill their everincreasing vacancies.

The country currently enjoys the largest

APRIL/MAY 2018

labour force in its history, a significant increase in the domestic supply of productive hours, the largest cohort of foreign workers and the lowest level of unemployment rates, yet there is still a lack of labour supply to meet the level of demand driven by the rapid economic expansion, resulting in severe labour shortages and a widening skills gap.

Employers are in a constant struggle to recruit the personnel necessary for operations to adequately meet the demands of a growing and vibrant economy.

According to Jobsplus, the economy is creating between 7,000 and 8,000 new jobs every year… Malta’s limited population alone is unable to satisfy such levels of new demand every year.

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CC Editorial

“Numerous workable recommendations aimed at easing the labour supply gap and skills gaps have been put forward in recent years – some of which have been implemented and others which continue to be overlooked despite their proven success in other economies.”

According to Jobsplus, the economy is creating between 7,000 and 8,000 new jobs every year. This growth is the main driver behind the country’s economy success, however, Malta’s limited population alone is unable to satisfy such levels of new demand every year.

A number of statistics, such as the birth rate, the age cohort percentages, Ordinary Level examinations registration figures, tertiary education enrolment data, graduate figures, labour market participation rates, retirement rates, immigration and emigration rates, and the number of foreign nationals in Malta, among others, clearly depict a situation in which the country is unable to depend on its own resources to meet the demands of the economy – a reality that threatens sustainable growth.

The Malta Chamber of Commerce, Enterprise and Industry is aware of the many issues resulting from the country’s lacking human resource and has consistently made such representations to the relevant authorities. Numerous workable recommendations aimed at easing the labour supply gap and skills gaps have been put forward in recent years – some of which have been implemented and others which continue to be overlooked despite their proven success in other economies.

As it always has, the Malta Chamber remains available and offers all relevant authorities and players its services and experience to help solve the human resources challenge the country is currently facing. cc

CC COVER STORY

The business of data protection The introduction of the General Data Protection Regulation (GDPR) has wide-ranging consequences for businesses operating in the EU as well as outside the bloc – but what does it mean for Malta? Marie-Claire Grima spoke to a number of businesspeople on the process of becoming GDPR-ready and the implications that go beyond 25th May.

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he General Data Protection Regulation (GDPR) will take the European Union’s commitment to privacy and data protection further than any other piece of legislation before it. Through the GDPR, from 25th May onwards, the existing privacy rights of EU residents will be expanded, and consequently, a wide range of compliance obligations will be placed upon businesses operating both in and outside the EU. Both data controllers – those who determine when, how and why personal data is to be processed – and data processors – those who process data on behalf of

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data controllers – have new duties and requirements to adhere to. Failure to comply will subject them to potentially severe fines; the first tier of fines is up to €10 million or two per cent of the company's global annual turnover of the previous financial year, whichever is higher, while the second is up to €20 million or four per cent of the company's global annual turnover of the previous financial year. Furthermore, GDPR makes it much easier for individuals or groups who feel that their privacy has not been adequately respected and safeguarded to lodge complaints or engage in litigation

with any companies or entities that they feel may have misused their data.

“As is normal practice for all responsible businesses in Malta, preparations for compliance with GDPR were taken very seriously and many businesses have taken the necessary steps to get in line with the new legislation,” says Kevin J. Borg, Director General of the Malta Chamber of Commerce, Enterprise and Industry. “This does not mean, however that everyone is ready for 25th May. I view the situation as a mixed bag: some businesses are prepared, but others are struggling to meet the deadline.”

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CC COVER STORY Mr Borg says that the introduction of GDPR is expected to bring about an increased level of credibility and accountability for businesses. “This is expected to reflect in a greater sense of trust and enhancement in the business-customer relationship. The new legislation is also needed as new technologies enabling on-line communication and transactions are posing greater risks to businesses and consumers alike. This demands a concerted response to ensure that we are well-prepared to prevent any undesirable eventualities.”

Furthermore, up to this point, individuals’ private data has been protected by laws that varied widely from one country to another, with different levels of sanctions, ranging from modest fines to a slap on the wrist.

“With the introduction of GDPR, businesses will now also have one single set of rules to contend with, when it comes to issues of data protection,” Mr Borg says.

Mr Borg also comments on the difficulty that businesses of a certain size may have had in facilitating the implementation of GDPR without bringing in outside resources.

“Every change, however, no matter the size, will always have an effect on businesses, especially SMEs, as these will be geared on the running of their businesses and seeing to the needs of their clients. Businesses will typically have to momentarily divert their attention from their day-to-day operation to address such changes, hence affecting their productivity. So every change means a lot to businesses, especially a wide-ranging piece of legislation such as the GDPR.” Mr Borg says that in the past few years, the Malta Chamber organised a number of information sessions as well as informative seminars on the subject, which were open to the public and members to update themselves about the upcoming Regulation.

Photo by Cristof Echard

“The new legislation is also needed as new technologies enabling online communication and transactions are posing greater risks to businesses and consumers alike.”

– Kevin J. Borg, Director General, Malta Chamber of Commerce, Enterprise and Industry APRIL/MAY 2018

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CC COVER STORY

“I think that when it comes to Maltese businesses overall, GDPR will reshape the way they approach data protection measures, due to the new rights of data subjects and the penalties that can be imposed for breaches.”

– Antoine Aquilina, Information Security Officer, BOV

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“During each event, members were exposed to information given by experts both from the public sector, which is expected to regulate GDPR, as well as the private sector, which offers services to companies on the subject. As always, the Malta Chamber remains available to help businesses that may experience difficulty in this area, within the context of its mission to enhance the business environment of the country.”

The comprehensive nature of GDPR meant that even companies that were

already up to speed with data protection principles had to up the ante in order to be compliant with the new legislation. “Bank of Valletta’s initial reaction was that while the core data protection principles were not significantly altered, the enforcement and reporting framework of the Regulation was significantly more onerous,” says Antoine Aquilina, Information Security Officer at BOV. “Today we can say that our assessment was correct. Following the publication of the GDPR, the bank conducted an impact analysis in order to identify those areas which required changes in order for the bank to fully comply with GDPR.” Mr Aquilina says that the Payment Services Directive 2 (PSD2) – which came into force on 13th January this year, and aims to make payments safer, increase consumer protection and foster innovation and competition – and the GDPR are two new major pieces of legislation, which, although unconnected, share common objectives with regards to personal data.

“However, when implementing these highlevel principles, challenges and conflicts quickly became apparent, particularly in the area of consent. This matter, among others, needs to be tackled well, as this may risk the successful implementation of either legislation.” The biggest takeaway from the process, Mr Aquilina states, is that GDPR cannot be considered in isolation but must be implemented taking into account other current regulations such as the fourth AntiMoney Laundering Directive (4th AMLD) and PSD2.

FEBRUARY/MARCH 2018

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“The bank was already subject to the Data Protection Act, however GDPR has strengthened the focus on data-centric approach, quality and control. I think that when it comes to Maltese businesses overall, GDPR will reshape the way they approach data protection measures, due to the new rights of data subjects and the penalties that can be imposed for breaches.”

Gordon Micallef, RSM’s Business and Technology Advisory Partner, states that as the understanding of GDPR grew, the company was able to absorb the fact that many principles reflected good data governance, and that while many activities had not yet been formalised, they were already practised. “The largest implementation efforts revolve around the retention policies and effective disposal of data that is no longer required for the processing objective,” he says. “We carried out an impact assessment plan to understand where the gaps are, and to have visibility of the overall plan, in order to align ourselves with the new Regulation. Based on the overall plan, we were able to prioritise our actions and monitor the compliance programme.

Clear data owners were assigned to have good governance maintained beyond the preparation.”

Mr Micallef says that in the process of preparing for the introduction of GDPR, RSM experienced improved, streamlined processes around data collection, together with improved governance over data retention, and the effective disposal of data when no longer needed.

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“GDPR has shown that many organisations were not aware of the existing regulations, and have only become conscious of some serious obligations through the overall market awareness of GDPR in the events attended and articles read by controllers.”

– Gordon Micallef, Business and Technology Advisory Partner, RSM

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CC COVER STORY

“Maltese companies have a major issue when it comes to holding on to data that they don’t need, especially when it comes to employee data.”

– Josef Busuttil, Director General, MACM

“As a company, we collect a lot of data, some we may not have necessarily needed.

GDPR has shown that many organisations were not aware of the existing regulations, and have only become conscious of some serious obligations through the overall market awareness of GDPR in the events attended and articles read by controllers.

GDPR implies better governance of data and improved cybersecurity practices. The most important lesson we’ve learnt from preparing for GDPR is the need to be more transparent in the processing of personal data to data subjects.”

Josef Busuttil, Director General of the Malta Association for Credit Management (MACM), says the organisation has been lobbying for increased data protection for several years. “The MACM went to the Data Protection Commissioner about 10 years ago to create improved legislation that would help regulate our industry. We provide information to the business community, but I

believe strongly in data protection; especially when it comes to protecting the information of the man in the street.

“I think that companies that were already compliant with data protection will see little difference in their operations – but those that had a lot of catching up to do to begin with, should have started working on this at least a year ago,” he cautions. “There’s a lot of work to be done – carrying out data protection audits, figuring out what information is being kept, how long it is being kept for, and why it is being kept. Maltese companies have a major issue when it comes to holding on to data that they don’t need, especially when it comes to employee data. Plenty of major companies hang on to old employee data, even when those people don’t work there anymore; or CVs of prospective candidates, even after a recruitment drive is over.

Would they have informed the prospective candidates that they will be holding on to their information for a period of six months, or a year, or more? Not necessarily.”

Mr Busuttil states that as Director General of the MACM, he believes the business community should be aware of the GDPR, how to comply with it, and the consequences if they don’t do so. “The penalties for non-compliance are hefty, and I believe the business community needs to be well-prepared to comply with GDPR. As the MACM, we’ve carried out all the audits, and are very close to being fully GDPR-compliant – by 25th May, I can guarantee that we will be so. Naturally, we’ve been pushing our members to follow suit; we’ve carried out information sessions for our members about preparing for this legislation, and how GDPR will affect their relationships with their own clients as well as our own organisation.”

“GDPR highlights the fact that we live in a potentially scary world where personal data needs to be protected from misuse and

fraudulent use, and where privacy needs to be safeguarded,” states David Grech, CEO of Medicare Malta. “Our initial reaction to the introduction of GDPR was somewhat apprehensive, given that as occupational healthcare providers we are responsible for the data of thousands of employees of our corporate clients. Naturally we had prior documentation in place already, which nonetheless required revision and redrafting.

We have engaged the assistance of a data protection consultant and formalised our procedures and data archiving and consent processes further to make them compliant.”

Dr Grech believes that the company’s data collecting, archiving and usage consent processes are more streamlined and efficient as a result of these changes.

“There is of course a compliance cost, and one needs to be wary of defensive practices in response to frivolous complaints of data misuse. The long-term benefits in terms of corporate governance and business-toclient relationship management can only be positive ones.” cc

“GDPR highlights the fact that we live in a potentially scary world where personal data needs to be protected from misuse and fraudulent use, and where privacy needs to be safeguarded.”

– Dr David Grech, CEO, Medicare Malta 16

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CC BUSINESS

Getting in line with the General Data Protection Regulation Are Maltese businesses prepared for the General Data Protection Regulation (GDPR) which comes into force on 25th May? Martina Said chats with five local companies with expertise on the matter to find out how the Regulation will affect businesses and what solutions exist for their perusal.

Kristoff Zammit Ciantar page 20

Curt Gauci page 20

Dr Antonio Ghio & Dr Paul Gonzi page 24

Francois Grech page 23 Alan Alden page 23

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CC BUSINESS

Kristoff Zammit Ciantar – CEO, Aqubix What aspects of the GDPR have posed the greatest challenges and opportunities to local businesses?

I believe that the greatest challenge would be the shift in mentality of how businesses process and protect data. Data has become key and should be the central focus of any process. This changes the way we think, the way solutions are implemented, the way we collect and protect data. If we had to focus on a particular task, however, the most challenging would have to be the identification of the third-party data map that a business processes across the entire business.

What services and solutions do you offer to businesses in so far as GDPR is concerned?

As a company, we focus a lot on automating the operational aspect of compliance, especially the work that is done manually.

After the success of our previous product – KYC Portal – we started thinking about the manual intervention required for GDPR. The larger the company is, the greater

the hassle to ensure you have people to process requests, make sure everything is in place, and so on, so that’s where the idea for GDPR Auto stemmed from. It is both a technical and a business solution that delivers the required automation, as well as the embedded legal advice that dictates this Regulation. It provides a starting point in the form of a set of legal audits, so that companies can self-assess and identify where they stand.

Do you offer solutions for smaller businesses as well as larger organisations?

Even though it will still prove to be quite a challenge, small companies handling a few subjects can likely get away with bringing their processes up to scratch manually.

Such an approach might work in the shortterm, however it is not a sustainable model knowing that GDPR is here to stay. For larger companies, or companies with an ambition to grow, GDPR Auto will save a lot of time and effort, not just now, but in the coming years too.

Do you think Maltese businesses, by and large, are equipped for the GDPR which comes into force this May? The first year following the ratification of GDPR will most likely be a period of adjustment to the new legislation. But as we’ve seen with previous measures and Directives from the EU, it is only when fines start being levied that we will start seeing serious action being taken by businesses.

Curt Gauci – Managing Director, Kinetix IT Solutions What aspects of the GDPR have posed the greatest challenges and opportunities to local businesses?

From my experience, the greatest challenges and opportunities revolve around the subject requests, protection of personal data and reporting obligations. A lot of data is being stored and the majority of this data lives in document format and/or email. This data has limited or no classification, and no deletion or retention policies are applied. The lack

of structure makes it very hard to identify where personal data is residing, and makes it even harder to locate the data pertaining to a particular data subject. From a data protection angle, some organisations have given less attention to the protection of certain personal data when compared to the attention given to other confidential data. Changes in the way we work have also put more pressure on data protection, since data is no longer being accessed exclusively from within the organisation’s premises, but also accessed and stored on mobile devices and non-company-owned devices.

In addition, we realised that though data control and security systems are in place, they are disjointed, which makes it difficult to identify breaches and the extent of the breach, impinging on our ability to report.

What services and solutions do you offer to businesses in so far as GDPR is concerned?

We offer assessments to help organisations understand their GDPR scope and where they stand in the preparation towards compliance. We then assist in the actual implementation to close the identified gaps through solutions, including data discovery and classification, identity management and data access management, data encryption and leak prevention, and AI solutions which, through machine-learning capabilities assist in identifying breaches

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and limiting the damage during a breach.

We also assist with recommending changes to IT and business processes to promote a more secure and effective collaboration platform within an organisation, such as the centralisation and management of client contacts into a CRM. Do you offer solutions for smaller businesses as well as larger organisations?

Yes, we do. GDPR does not revolve around the size of data that you store, it revolves around the type of data which falls within the scope of GDPR and the type of controls needed to meet compliance. The majority of the technologies we use are cloud-based.

Since these multitenant tools are subscribed to, smaller organisations can gain access to the same enterprise features used by larger organisations even for a small subset of users.

Do you think Maltese businesses are equipped for the GDPR which comes into force this May? Though there are a number of organisations that started looking into GDPR months ago, there is still a large portion of Maltese businesses that started looking into GDPR very recently or that have not even started looking into GDPR as yet. These businesses need to take a risk-based approach and do their utmost to action around the areas of greatest risk exposure first, and then continue their journey towards compliance.

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CC BUSINESS

Francois Grech – Executive Director, Exigy What aspects of the GDPR do you believe will pose the greatest challenges and opportunities to local businesses?

Local businesses tend to have various unstructured processes, which would have developed across the years as the business evolves, resulting in lack of clarity of what data is being kept and recorded, and for what reason it was being done. GDPR surfaces these issues and local businesses should take

the opportunity to review and structure their internal processes, especially in view of the high staff mobility being experienced in the last couple of years.

What services and solutions do you offer to businesses in so far as GDPR is concerned?

Exigy has been providing CRM solutions based on Microsoft Dynamics 365 for a

number of years. CRM Solutions enable an organisation to centrally store customer information and associate it with not only quotes and orders, but also customer service cases, documents and email communication in one unified solution. Dynamics 365 offers the necessary security roles to restrict access to specific customer information only to the people that need to use such data for carrying out their job within an organisation.

Do you offer solutions for smaller businesses as well as larger organisations?

Dynamics 365 is a scalable solution, but it is very applicable to small organisations as well, as it brings the best practice business processes to young organisations in terms of customer management.

Do you think Maltese businesses are equipped for the GDPR which comes into force this May? Most businesses are definitely aware of the GDPR implications coming into force this May, and a good number of them have started to put in place an action plan to address the GDPR implications. However, I believe the implementation of such a plan will most probably extend beyond May.

Alan Alden – Director, Kyte Consultants What aspects of the GDPR do you believe will pose the greatest challenges and opportunities to local businesses?

Many businesses that try to attract customers through direct marketing by sending out emails and/or SMSs will need to ensure that the database they have contains opt-in or consent of the data subject. They must also be able to remove anyone who withdraws consent or opts out. This is of course painful to do, but unfortunately, there isn’t a way out and they have to comply, losing out in part on a marketing channel. If you are marketing to companies and use a generic email address, then the GDPR does not apply. Security must be beefed up on systems where there are special categories of data being processed – for instance, health data – such as with clinics, hospitals and health insurance companies.

Companies whose business is data would be affected the most, and B2B companies the least. For consultancy businesses, law firms, and IT security companies, this has created an opportunity as there is currently a huge demand for assistance in achieving compliance. We must not, however, put all data controllers in the same basket – a basic risk assessment should gauge the impact on the business and the level of effort required to achieve compliance.

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What services and solutions do you offer to businesses in so far as GDPR is concerned?

We can provide them with assistance in assessing their risk and level of preparedness, and then with the preparation of the controls required to mitigate risks identified. We can also provide Data Protection Officer services for companies that either are obliged to have one appointed or those that decide to appoint one even if not mandatory for their type of business.

as the obligation to inform the authority and/ or data subject if there is a security incident that affects personal data. The fines have also increased considerably. How many businesses have complied with the DPA? What will happen six months after 25th May when all the controls are implemented?

Enforcement, or lack thereof, is the issue with Malta. Having said that, very few businesses process personal data just to create profiles and sell them off. Volumes of data are also not that extensive, so the risks aren’t very high for about 90 per cent of local businesses.

Do you offer solutions for smaller businesses as well as larger organisations?

Our first step is to carry out a risk assessment, and we then adapt the level of assistance required and our fees accordingly.

In this way, customers pay for what they need and receive from us as a service provider.

Do you think Maltese businesses are equipped for the GDPR which comes into force this May? I think the problem here is more with the mentality. The Data Protection Act has been around since 2003 and the GDPR reflects that law with some important additions, such 23

CC business

Dr Antonio Ghio & Dr Paul Gonzi – Partners, Fenech & Fenech Advocates What, in your view, are the most crucial points of the GDPR that companies should be aware of?

GDPR encourages businesses to map out their processing activities, consolidate and streamline their processes, ultimately permitting more efficient and secure use of the personal data within lawful parameters.

With GDPR, it is no longer sufficient for an organisation to simply say it is compliant.

Organisations must retain records, implement policies and have effective protocols to demonstrate compliance and permit effective prevention and remedy.

They must measure their risks, understand their obligations and implement rules, including to manage data-subject rights, such as the rights to access, to be forgotten and the new portability right. Staff must be well-trained to handle these issues – and many organisations must now nominate a Data Protection Officer to oversee GDPR compliance. Getting it right is crucial, and failing to do so, or suffering a data breach caused by such failure, even if externally provoked or accidental, will trigger harsh fines (which can reach four per cent of global turnover or €20 million, whichever is higher) apart from payment of damages and reputational damage. EU regulators have made it clear that there must be equivalence across the EU. What happens in Malta can no longer be seen in isolation.

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What aspects of the Regulation do you believe will pose the greatest challenges and opportunities to local businesses?

Mapping out processes and getting compliance documents in order to maintain ongoing compliance is a challenge. It is tough for larger organisations that have complex and cross-border processes, yet it is also tough for SMEs that might not have the resources to cope. The challenge is augmented where local organisations rely on foreign service providers to process their personal data that might not be keen or able to collaborate towards achieving GDPR compliance.

What services and solutions do you offer to businesses in so far as GDPR is concerned?

Our TMT team is well-positioned to assist businesses work towards GDPR compliance.

We train key stakeholders to understand the GDPR language and be aware of how to map out their processes. Next, we facilitate this exercise by sharing the F&F Inventory Tool, an in-house tool developed for this purpose, essentially getting the organisation to lay down its thought process behind the processing activities. Our team reports back with a gap-analysis, flagging priority concerns and making recommendations.

Last, we work with our client to ensure that all gaps are ironed out – from providing

customised policies and protocols, to revising contracts to general data protection advice and assisting with Data Protection Impact Assessments.

Do you think Maltese businesses are equipped for the GDPR which comes into force this May? As with many compliance obligations, many local businesses, especially smaller ones, are yet to come to grips with what is expected of them, so the reality is that it is doubtful whether all businesses will be completely compliant from the word go. We have advised international companies which started their GDPR compliance process as early as 2016 who are still at it. Our message to local businesses is simple. Better late than never, and better safe than sorry. cc

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CC CASE STUDY

Streamlining the GDPR process As the deadline for the implementation of the General Data Protection Regulation (GDPR) draws closer, many companies are still scrambling to get in line with the requirements. But what will happen beyond that date? Aqubix CEO Kristoff Zammit Ciantar speaks to Marie-Claire Grima about GDPR Auto, the tool that takes a long-term view in dealing with all aspects of the new legislation.

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he upcoming enforcement of the General Data Protection Regulation (GDPR) on 25th May 2018 has thrown more than a few companies into a state of panic and confusion, largely due to the breadth and reach of the legislation, not to mention the severity of its sanctions. Every single company that processes data for clients within the EU will be affected by the new legislation, and the penalties for noncompliance are nothing to laugh at – fines can reach up to €20 million, or up to four per cent of the annual worldwide turnover of the preceding financial year. While data protection legislation has been at the forefront of EU policy for nearly two decades, with GDPR it is the first time that such legislation will be enforced across the board, with no exceptions or variations across jurisdictions.

The manual intervention required to become compliant with GDPR legislation drew the attention of Aqubix, which set about designing a product that would streamline the work people would have to carry out on their data in order to make the organisation GDPR-ready. “As a company, we focus a lot on the operational aspect of compliance, especially the work that is done manually,” says CEO Kristoff Zammit Ciantar. “After the success of our previous product – KYC Portal – we started thinking about the manual intervention required for GDPR. The larger the company is, the greater the hassle to ensure you have people to process requests,

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make sure everything is in place, and so on, so that’s where the idea for GDPR Auto stemmed from. We presented a beta concept of the programme, which we showed to a large number of companies, and people soon realised that with the focus currently being on ticking the right boxes before 25th May, nobody is really thinking beyond that.

How will I manage the data? How do I start auditing everything? How will I make sure everything is being handled within 30 days of the request?”

Mr Zammit Ciantar explains that GDPR Auto is the industry's first and only tool on the market that will make any organisation of any size a step closer to becoming fully GDPR-ready and compliant. “It's not only a technical solution but a business solution that delivers the required automation, as well as the embedded legal advice that dictates this Regulation. It provides a starting point in the form of a set of audits, so that companies can self-assess and identify where they stand,” he says. The responses to the legal audit provide a full GAP Analysis report highlighting all the aspects that the company needs to start working on, in order to achieve GDPR compliance, with a detailed list of actions reflecting the answers to the audit provided by the company.

At this stage, if it is determined that any internal policies relevant to the data types being handled are required, the system will make all legal documentation available in the form of text templates, allowing the company to bring their processes in line with the Regulation. “Of course, this does not replace the need for human legal counsel – in fact, Aqubix works with law firm AMJ Legal, which allows it to provide both technical and legal hours to clients as part of the GDPR Auto package, giving clients peace of mind,” Mr Zammit Ciantar adds.

Another requirement that forms part of GDPR which an organisation may find particularly difficult to do manually is the mapping of data processes. Again, here GDPR Auto simplifies and streamlines what would otherwise be a taxing and longwinded process into a simple function. “One of the tools GDPR Auto provides allows all the data elements that are stored across the organisation to be mapped out, be it in systems, in physical locations, and any other medium, into one dashboard, along with the owner managing that location,”

“As a company, we focus a lot on automating the operational aspect of compliance, especially the work that is done manually.”

Mr Zammit Ciantar says. “Keeping this data map updated allows GDPR Auto to automate all client requests efficiently, simplifying the management of such processes whilst auditing all the required actions being carried out within the respective time period. Users can also define the internal policy of data retention at field level, so that a company can adapt the system to their specific needs, without running the risk of withholding data on subjects past retention.”

While the standardisation of new data is challenging enough under the new legislation, making sure past data, collected long before GDPR compliance was a concern, is another issue that has been a stumbling block for many firms. “When some companies realised that some of the data they held was not fully GDPR-compliant, they considered purging their collection of data entirely, some of which spanned several decades. This would have been a huge and valuable loss,” Mr Zammit Ciantar points out. GDPR Auto has a solution for this too – once subject data is mapped out, the programme allows for individual and bulk opt-in audited consent acquisition, as well as regular/scheduled reconsent processes across all aspects of the APRIL/MAY 2018

CC CASE STUDY

Photos by Alan Carville

data being held. “This feature allows the user to instantly identify what data is authorised for specific use, and immediately excludes use that is not permitted under GDPR. At the same time, it manages the requirement for individual assent that the customer may not have even thought about or agreed to at the time, ensuring that the company is in full compliance with the legal provision.”

Individuals whose data has been collected are provided with a means to update their data and ensure that whatever information being kept is correct; namely a secure portal, bolstered by two-factor authentication, through which data can be managed and requests for updates to be sent. Once reviewed by the Data Protection Officer, such change requests are communicated internally over the platform for execution keeping a full audit trail of accountability with system owners and third-party processors. “Through the same mechanism, GDPR Auto also lets subjects send in termination requests instantly, triggering alert-based notifications when such requests have been submitted ahead of internal assessment for validity and compliance within stipulated timeframes,” Mr Zammit Ciantar states. The four types of termination provided APRIL/MAY 2018

by GDPR Auto are deletion, which leaves no trace of the initial record; anonymisation, which replaces all identifiable data with a specific randomised irretrievable key; pseudonymisation, which allows the retrieval of the original data on a subject through a key that the subject controls; and finally, internal anonymisation, which protects a company from the risk of storing data in view of any legal obligation there may be. “All inbound requests and internal processing interactions are automatically recorded in a tamper-proof, system-wide audit trail, ensuring tangible proof of compliance.”

GDPR Auto has garnered interest from a wide range of businesses within the EU, as well as non-European companies that do business with Europe, including firms from the US and Turkey. Its adaptability for companies of different kinds and sizes has also made it a versatile tool for businesses to have in their arsenal. “Even though it will still prove to be quite a challenge, small companies handling a few subjects can likely get away with bringing its processes up to scratch manually.

Such approach might work in the short term, however it is not a sustainable model knowing that GDPR is here to stay. For larger

companies, or companies with an ambition to grow, GDPR Auto will save a lot of time and effort, not just now, but in the coming years too.”

When it comes to discussing how GDPR will affect the business landscape in Malta, Mr Zammit Ciantar believes that most of the advantages GDPR will introduce, will mostly apply to protecting the individual and not to businesses per se. “Companies will be penalised for acquiring data in ways that are not authorised, and the legislation will safeguard against data breaches, ensuring that everyone is fulfilling their remit. This is a significant problem in Malta – companies found to be misusing private information would previously get away with nothing more than a slap on the wrist. GDPR will change all that.” However, he maintains a realistic view of how long it will take before results begin to make themselves visible. “The first year following the ratification of GDPR will most likely be a period of adjustment to the new legislation. But as we’ve seen with previous measures and directives from the EU, it is only when fines start being levied that we will start seeing serious action being taken by businesses.” cc 27

CCCC COVER in IN INTERVIEW figures FIGURES STORY

IN Figures

2017: another record year for tourism

2.3

16.5

1.1

The total number of inbound tourist trips from January to December 2017, an increase of 15.7 per cent over 2016.

Total nights spent by inbound tourists, up by 10.3 per cent.

The increase in tourist figures in eight years – from less than 1.2 million in 2009 to around 2.3 million in 2017.

1.9 Million

The number of tourists from EU member states who visited Malta in 2017.

1.6 Million

The number of tourists for whom it was the first time visiting Malta. Another 614,000 tourists were repeat visitors.

The only age bracket that registered a decrease in tourist numbers in 2017, down by 3.9 per cent.

Million

€1.9 670,135 Billion

Total tourism expenditure in 2017, 13.9 per cent higher than that recorded for 2016.

The number of cruise passengers who visited Malta, up 7 per cent.

57% 41,000

The largest share of guest nights was spent in collective accommodation establishments.

The number of cruise passengers who stayed overnight in 2017, up from 22,500 in 2016.

€856

342

Total expenditure per capita, a decrease of 1.5 per cent when compared to 2016.

Source: Gozo In Figures, National Statistics Office, Malta

65+

Million

The number of cruise liner calls in 2017, with an average of 1,959 passengers per vessel, up from 316 in 2016.

Source: NSO

Million

Source: Malta International Airport APRIL/MAY 2018

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CC INTERVIEW

Banking on the future As he looks firmly towards the banking trends of tomorrow, HSBC CEO Andrew Beane talks to Jo Caruana about blockchain, biometric technology and Malta’s economic outlook.

Photos by Jan Zammit

APRIL/MAY 2018

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CC INTERVIEW

I

t is an interesting time for the world’s economy. Wavering stock markets seem to hint at a possible downturn while, for most businesses locally, trends still seem to be on the up.

One gentleman carefully monitoring the situation is Andrew Beane, the CEO at the helm of HSBC’s operations in Malta. As we begin our chat, I question Mr Beane on the state of economy at large and he explains that, at the moment, there are a number of reasons to be positive.

“The eurozone economy is showing signs of improvement and the local economy has done really well,” he says. “Here, our GDP growth has continued to be strong, unemployment is technically zero, Government finances are in good shape with a surplus, and everything seems very optimistic. Now, though, it is important to keep moving forward with sustainability in mind, and to ensure there is a good diversification of sectors and risks in the way we build up the local economy. This strategy has helped Malta very much in past generations, and it bodes well for the future, too.”

Switching his attention over to HSBC specifically, Mr Beane explains that 2017

32

marked the end of a significant multi-year restructuring process. It was a route that helped the bank to simplify its business model after the 2008 financial crisis. “In today’s world, complexity is something you have to manage very thoughtfully, especially in this highly-regulated industry of ours,” he says. “As a Group we have since decided to do less, but do it better.”

The bank has also had to go through a variety of high-level compliance exercises which have been transformative in terms of the defences that financial institutions in general need to provide against the risks of financial crime. “It’s a bit like security at an airport – you have to go through the inconvenience of it, but, in the long run, it is of benefit to you if you’re not one of the tiny minority of people with bad intentions.

Having largely completed this exercise, we are pleased with the progress we have made. And HSBC continues to exceed all of our ECB capital and liquidity targets which has enabled us, for the first time in almost 10 years, to be able to pay exceptional dividends to our shareholders, some €20 million in addition to our ordinary dividend.

“This is also a really important sign of regulatory confidence in HSBC.

“The period of dramatic change at HSBC is coming to an end and we are ready and confident to grow our business again.”

APRIL/MAY 2018

CC INTERVIEW We’re a different bank to the one we were in the past, but we are a better and stronger bank now. We have a platform for sustainable growth for the future. The period of dramatic change at HSBC is coming to an end, and we are ready and confident to grow our business again.”

With this in mind, Mr Beane underlines a few of the exciting ways that the bank is responding to its customers’ changing lifestyles. “We are really pleased with the progress we’ve made on social media, for instance,” he says. “We now reach some 150,000 visits via our social media platforms every week, and we have been really thoughtful about how we have set that up – we don’t censor the content we get, whether it’s positive or negative, and we have a team of dedicated employees who work solely on responding to customers online. It’s an excellent system.”

Banking is also set to get more modern in other ways, with a number of digital innovations due to be unveiled in the months to come. “We will continue to roll out our contactless payment cards, having already launched these to our Premier clients who hold a MasterCard.

This means that users don’t need to worry about carrying cash or cheques, even when making low-value transactions.”

Another service that has just been launched is biometric technology for

APRIL/MAY 2018

personal customers. “All you need to log on is your fingerprint – so there’s no need to remember passwords or other information.

I think it’s brilliant because of the ease of access and convenience it provides, but also because it is so secure.”

Mr Beane goes on to explain that it is this type of innovative technology that HSBC is looking to spearhead. “Among our other initiatives is the introduction of electronic signatures, which is currently being piloted.

This will mean customers can now sign all their necessary forms with a digital signature, which is both convenient and environmentally-friendly.

“We believe it is initiatives like these that really set the tone for proper, modern banking and the way that customers experience it. In fact, our business customers already enjoy some of the most advanced capabilities out there and we will continue to innovate; so much so that we are currently in the process of testing blockchain financing for trade in Singapore. We are experimenting with this, and plan to develop new capacities for customers in the future.”

As for other new offerings, Mr Beane explains that the bank has recently relaunched HSBC Fusion, its small business banking solution. “The critical thinking behind that was two-fold. Originally this service was quite centralised but we have now decentralised it so customers can walk

into any HSBC branch and get business banking services. Plus, we have added a whole new suite of tech solutions that enable you to manage your business and personal banking through one set of logins. Given the fact that 98 per cent of businesses in Malta are small or micro, this is an important new development.”

Mr Beane looks towards what the rest of 2018 will offer. “I think the local position will remain positive, although I look forward to seeing faster progress on the digitalisation of the economy. As for HSBC, we are firmly focused on building back our business after this period of change, and we are eager to innovate. We’re confident, and believe our customers can be confident in the knowledge that HSBC sets the highest possible standards, which is important in today’s world. We are certainly optimistic,” he adds.

Finally, when it comes to the recent Bloomberg article that claimed that HSBC Group could exit or sell its Malta operations, Mr Beane says, “the bank is operating our business as usual. The article was about the Group’s strategy and was published by an international news agency and reported locally. It is based on rumour and speculation and, as a bank, we do not comment on such speculative reports. I reiterate that nothing has changed and we are operating normally.” cc

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CC COVER STORY

Is 2018 a safe bet for Malta’s iGaming industry?

The meteoric rise of the iGaming sector in Malta over the past few years has resulted in buoyant economic figures, increased employment and sizable investment opportunities. But, will the island continue to enjoy this winning streak? Rebecca Anastasi reaches out to some of the stakeholders to find out what lies ahead in 2018.

M

alta’s online gaming industry has experienced year-on-year growth since its inception, and now accounts for over 10 per cent of the local GDP, with over 6,400 employed in the sector and 275 iGaming companies operating within the jurisdiction.

“The industry is on a healthy growth trajectory,” says Parliamentary Secretary for Financial Services, Digital Economy and Innovation, Silvio Schembri. He asserts that APRIL/MAY 2018

“Malta is the place to be for any start-up as well as fully-fledged and operational gaming set-ups,” since “we have the know-how, the experience and the necessary regulatory logic to supervise, accommodate and service such set-ups.”

Indeed, buoyancy in the market, Mr Schembri states, is reliant on Malta’s “worldclass reputation, cost and other financial competitive advantages, good living standards, strong IT and connectivity infrastructures,

as well as regulatory positioning aimed at a more focused approach to develop businessto-business activities.” The latter include enhanced efficiency of regulatory processes across all areas of activity, and flexibility with respect to technological developments and market demands.

Despite this positive outlook, Mr Schembri still underlines the need for an attitude of humility and “a sense of vigilance in the wake of disruption and the changes it brings with it.”

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CC COVER STORY

“We are expecting an increase in jobs in this sector and, to this end, as Government, we are aiming towards putting together a number of measures aimed at enhancing human capital.” – Silvio Schembri, Parliamentary Secretary for Financial Services, Digital Economy and Innovation

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He highlights the essential dynamic nature of the remote gaming sector, emphasising that innovation is critical. “We should all embrace change,” he says, since “we need an industry that reinvents itself before being forced to do so.”

Indeed, these significant gains have not come without concern from various quarters regarding the industry’s regulation and future sustainability and, in order to address some of these issues, a new Gaming Bill was recently tabled in Parliament, which will, according to a report published online by the Malta Gaming Authority, ensure that the regulator – the MGA itself – has the necessary resources and power to monitor and oversee the industry, thus protecting consumers in forthcoming years.

Mr Schembri is an enthusiastic advocate of

the new Bill and notes that this new gaming law will lessen bureaucratic procedures experienced by operators and strengthen the MGA to ensure the sector continues to “be run responsibly, fairly and free from criminal activity”. The priority for the future, he says, is for the sector to “provide a safe and enjoyable leisure activity to the public, which is also an important source of revenue and jobs”.

Mr Schembri refers to a recent economic impact assessment of the proposed new Gaming Act, conducted by the authorities, stating that “the results look positive”.

The new legislation, Mr Schembri says, will reposition Malta at the forefront in gaming regulation. “We hope that the measures we are adopting now will ensure that the industry will continue to grow in Malta.”

APRIL/MAY 2018

CC COVER STORY The Parliamentary Secretary also refers to measures aimed at increasing human resources to meet the future requirements of the industry. “We are expecting an increase in jobs in this sector and, to this end, as Government, we are aiming towards putting together a number of measures aimed at enhancing human capital.”

Increasing “the impetus of the educational system to provide the skills in the required numbers and quality” is essential, according to Mr Schembri, who goes on to mention the recent launch of the European Gaming Institute of Malta (EGIM), following an agreement signed between the MGA and MCAST; the new institute aims to “lead to the development of talent in the gaming sector,” he says.

Other measures are equally important, according to the Parliamentary Secretary, who also lists “incentivisation, through fiscal and other measures,” and facilitating the ability of the local sector to attract “international talent, by providing lifestyle amenities for families,” as essential.

Moreover, the sourcing of talent from the international pool is not only necessary, he goes on to say, “in view of the small

APRIL/MAY 2018

scale of the Maltese economy and the rapid technological advances globally,” but also “desirable to sustain an orderly growth of digital economy activities in Malta.”

Another requirement for the development of the industry in 2018 and in the years after this, in Mr Schembri’s eyes, is for the parties concerned, including Government, to “embrace upcoming disruptors to provide the right environment for new businesses and systems to flourish.” He mentions the rise of cryptocurrencies and blockchain, and refers to them as technological opportunities “to innovate on the digital payments side of the value chain by providing an alternative (payment) mechanism for players who want to make use of virtual currencies.” Despite this, he also notes, “it is important that such a disruptive innovation operates within a properly regulated environment.”

He refers to recent work conducted by the MGA in this regard, “in identifying a potential way forward to develop the right balance of measures to safeguard the industry but without stifling innovation and suffocating the legitimate use of cryptocurrency,” going on to say that the regulator will be looking into adopting “a sandboxed approach to

the acceptance of cryptocurrency”. Indeed, this form of payment will first be introduced “in a controlled framework and for a period of time to be able to manage the various variable risks and allowing for a track record of cryptocurrency usage in the industry to be built in a controlled manner,” he asserts.

However, Mr Schembri also insists that this continued investment in the area cannot solely rely on the MGA or on the authorities concerned, but requires “interventions by various public and private sector entities,” specifying that “active collaboration of all stakeholders involved” is a must. He also emphasises the need for continual dialogue with and between stakeholders “who on their part have the ability to shape the future of gaming regulatory policy.”

Betsson, one of the industry’s leading remote gaming companies – and the island’s chief employer in the sector – is one such stakeholder. Jesper Svensson, CEO Betsson Operations, echoes Mr Schembri’s perspective in his belief that “continued investment in innovation and infrastructure is crucial for Malta to keep providing a favourable environment for iGaming and other high-tech industries.”

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CC COVER STORY

“[Malta] must make sure to remain an attractive hub for the industry. This includes providing a robust regulatory environment and also offering an attractive tax regulation.”

– Jesper Svensson, CEO, Betsson Operations

42

He refers to the current trends emerging on the international market, with more and more EU countries introducing gaming licences, specifying that for Malta to remain competitive in 2018 and beyond, it “must make sure to remain an attractive hub for the industry. This includes providing a robust regulatory environment and also offering an attractive tax regulation,” he asserts. Due diligence is not at odds with the needs of the market, he states, emphasising that “if the market shall function long-term, there must be a robust regulation and thorough due diligence.”

He points to several factors which can keep Malta at the forefront in the remote gaming sector, stressing that “financial stability, proper governance and smooth administration are essential” for Malta to retain its reputation internationally and within the EU, as well as “to be perceived as a valid and serious actor.”

He stresses that online gaming is still

growing internationally, and there is even more scope as more and more people shift from offline to online gambling. “Still more than 85 per cent of gambling is offline and we believe that the shift towards online will continue. With robust regulation and a good supply of well-educated people, there is no reason Betsson Group and Malta should not continue to prosper,” he asserts.

In line with this, he also makes reference to the importance of attracting the best talent, locally and abroad. He delineates developments which can increase the local workforce. “To stay at the forefront of online gaming, it is important that the industry can recruit well-educated employees. Malta needs to continue to improve the availability of qualitative higher education within relevant areas,” he asserts. For those who are qualified, and up to scratch, “the iGaming industry offers plenty of opportunities to get an interesting, qualified job,” he affirms.

Mr Svensson also points to the recruitment culture at Betsson Group as a way in which private stakeholders can contribute towards strengthening the sector. “At Betsson Group, we are powered by people. Since we are the largest iGaming company on the island, we can offer ample opportunities for our employees to grow and develop within our company, as well as provide competitive benefits,” he stresses.

Human capital is also reliant on the bigger picture, according to the CEO. He mentions the rise in housing prices, emphasising, “Malta also needs to invest in infrastructure and environmentally-friendly initiatives in order to provide a welcoming environment for all inhabitants of the island.”

Indeed, according to the CEO, “being ‘the Silicon Valley of the industry’ also implies more than just creating a tech hub.

Social and environmental concerns need to be taken into account in order to create favourable conditions to live and work in an area.” He recommends more childcare provisions and environmentally-friendly initiatives to attract, and retain, the best of the industry.

Concluding, Mr Svensson notes that 2018 – and the following years – will see the iGaming sector continue to grow and “if Malta remains the well-respected gaming hub it is today, it will continue to flourish.” And this will have a knock-on effect on Maltese society. “Hopefully, the success of iGaming can continue to have positive spill-over effects on Maltese society in general. If we do well, Malta does well,” he states.

Reflecting Mr Svensson’s perspective, Karin Klein, the Chief Regulatory Officer (CRO) at Tipico – another industry leader with local offices – underlines what she sees as the future of the remote gaming sector in Malta in 2018 and beyond. “Actual figures show that the iGaming industry will grow continuously in the next years. The market APRIL/MAY 2018

CC COVER STORY will heat up and competition, especially when it comes to skilled staff, is getting fiercer.

Online growth will continue, and mobile phone usage will strongly increase. The global rise of e-sports and fantasy sports might have a positive impact on the sector,” she states.

She believes that buoyancy in the market is reliant on regulation which will help retain quality in the industry. She advises the authorities to “continue to regulate new products and to shape regulation for the future.” Moreover, since the industry develops swiftly, “frameworks and directives must be adjusted when necessary” to keep responding to technical advances, and “a high-level consumer protection” must be kept as this is the key for a successful regulated market, according to the CRO. “The MGA needs to continuously renew itself and adapt to new products and technologies to remain at the forefront of

gaming regulation,” she explains. She refers to the forthcoming Gaming Act, explaining that the effects will only be seen from July 2018. “As with any new law, it will only show its impact on the industry when it comes fully into force,” she states.

Furthermore, Ms Klein also points to the integral responsibilities of private companies in maintaining the processes and procedures implemented by the regulatory body. These can become quite complex, operationally and technically, due to the different requirements “across several jurisdictions without any convergence between them”. Despite this, she insists that “gaming companies need to continue embracing regulation including requirements such as due diligence, as it is the norm and way forward for any regulated industry.”

Ms Klein also refers to the need for education to be tailored to meet the required necessities. “The education system must

be adapted according to the needs of the sector. Courses at the university tailored to the industry with leading experts need to be established,” she asserts. The industry will continue its growth and it is expected that more operators will open offices in Malta. There is a high demand of skilled staff, especially as the market is getting hot, and there will be more competition when it comes to employees.”

Another of the main issues, according to Ms Klein, is attracting and training the required resources to work and settle in Malta. “As a country, Malta needs to invest in providing more qualified and specialised resources, maintain a competitive package with respect to expected salaries, rental prices and cost of living, and improve its infrastructure as well as other amenities which impact the day-to-day life of employees in the gaming industry living in Malta,” she contends. cc

“Figures show that the iGaming industry will grow continuously in the next years. The market will heat up and competition, especially when it comes to skilled staff, is getting fiercer.” – Karin Klein, CRO, Tipico

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CC BUSINESS

Servicing Malta’s dynamic iGaming industry From rental assistance to advisory services, the iGaming industry requires all sorts of ancillary set-ups.

Jo Caruana speaks to some of the companies dedicated to providing exactly that.

John Paris page 48

Jeff Buttigieg page 48

Etienne Gatt page 51

Paul Giglio page 51

Alan Alden page 52

APRIL/MAY 2018

Joseph F. Borg page 52

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CC BUSINESS

John Paris – Managing Director, Broadwing Ltd Broadwing Ltd is a start-up recruitment agency incorporated and licensed in Malta at the start of 2018. It boasts an international network of recruitment partners with a focus on the banking and finance, legal and compliance, IT and iGaming, and sales and administration industries.

From your perspective, how has the iGaming industry developed in recent years and what have the highlights been?

The iGaming industry in Malta has gone from strength to strength in recent years thanks to the hard work of the Malta Gaming Authority and industry leaders who are continually building upon the existing framework through changes in licenses and facilities to aid iGaming companies. This has had a positive impact on the local economy through an increase in employment, while attracting foreigners to Malta who, in turn, feed the economy through more property rentals and better spending power. The exposure for Malta as a whole has been phenomenal thanks to the likes of Gaming Malta, SiGMA and other events hosted by individual companies, with GiG having recently brought Steve Wozniak to Malta for the first time. More importantly, for us as a recruitment agency, the industry has raised the bar locally in terms of a better working environment and more employee benefits,

albeit being at the detriment of other industries that are finding it hard to compete with what the iGaming industry has to offer.

How does Broadwing Ltd service the sector?

As a recruitment company, our main offering is that of sourcing candidates to fill their ever-growing list of available jobs, including both customer support to senior management, and anything in between. We also offer consultancy services to companies with the aim of improving their image for HR purposes, not only to attract the best new candidates but also to motivate and give a higher level of job satisfaction to their existing workforce.

How do you see the iGaming industry and your services to it developing in the years to come?

The industry is continuing to grow on an international level, with 2018 seeing the biggest ICE conference yet with an increase of 11 per cent since last year, while SiGMA, held last November, was also an astounding success for the local market. Having attended both these events, we noticed a big increase in fantasy sports, social gaming, and the adoption of blockchain technology, which may cause quite a disruption in the industry.

We look forward to working closely with the

iGaming sector, keeping up-to-date on the latest developments and ensuring that we are able to offer solid advice to those looking to start a new career in iGaming, both locally and abroad.

Jeff Buttigieg – COO, RE/MAX Malta REMAX Malta provides professional assistance in finding residential or commercial property for sale or for rent, with years of specialisation in the iGaming market.

From your perspective, how has the iGaming industry developed in recent years and what have the highlights been?

I recall that we were the first real estate company to service the iGaming industry,

back when Love Bets – an Irish company – came to Malta in 1999. From then we have seen the sector grow exponentially, and that growth was one of the reasons we first decided to organise MiGS – the iGaming conference; it had 75 attendees in its first years, and skyrocketed to 450 in 2015.

From a real estate perspective, we have seen the landscape change completely; what started as old apartments with pine furniture has developed into a sector with contemporary offerings that people love to live in. However, demand is still higher than supply, so expectations have changed too in that respect.

How does RE/MAX Malta service the iGaming industry in Malta?

We provide a full rental service, whether that’s commercial or residential. Besides providing the main services – for which we are number one in the industry – we also give a fully-rounded service, whether that’s organising internet, cleaning services, being available 24/7 and so on. We are also proud to give a fantastic after-sales offering, to both our clients and landlords.

It’s a service that developed organically

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over the years, and which dates back to when we secured Skanska as a client, back when they were building the hospital in 1999. We rented properties to around 800 people, which was a huge deal back then. That set the ball rolling and, since then, our lettings team has grown from around six people to 35.

We have also seen Betsson grow from a five-person outfit to one that employs over 1,000 people. We have watched so many companies grow in that way – and we have grown with them, by delivering services throughout. We have always had a particular interest in the sector, and even launched iGaming Idol and the iGaming Social to further build on that.

How do you see the iGaming industry developing in the years to come?

We believe it will continue to grow, with bigger and bigger companies setting up here. One of the top three British gaming companies is among them, and has just landed on the island. We also expect to see more companies setting up here as a result of Brexit. From our end, we will continue to adapt to the needs of the industry and to service it in the best way we can.

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CC BUSINESS

Etienne Gatt – IT & iGaming Recruitment Manager, Konnekt Established in 2008, Konnekt adopts a partner-level approach with clients and candidates, and is strongly knowledgefocused. Its team of recruiters is constantly provided with industry-specific training in order to ensure that they understand the market dynamics and, therefore, their clients’ needs. This enables a more accurate matching of people to jobs and vice-versa.

From your perspective, how has the iGaming industry developed in recent years and what have the highlights been?

Backed by strong legislation, the industry has grown in record numbers, and in a very short timeframe. It has radically changed the labour market, causing many companies to up their game through aggressive attraction and retention strategies, and put Malta on the map for companies and candidates to set up locally. It has changed the employment market into one driven by the candidate, with companies vying between them to attract the best talent.

Now, attracting top talent to Malta is key to ensure the competitiveness of the island.

This needs a concerted effort, from the regularisation of renting fees to the everstrengthening of the technical infrastructure.

We must also speed up the modernisation

of our road infrastructure and a well-oiled set-up across Government entities to ease the process of settling in Malta. Employment licenses and the opening of bank accounts are painful processes for any relocating candidate. These surely do not resonate with the aspiration of Malta to be at the forefront of the digital world.

How does Konnekt service the sector?

Our model is primarily candidate-focused and we value quality over quantity. We would rather be precise in recommending good candidates that are thoroughly assessed by our technically-savvy team. Clients primarily value us for our honest and direct approach.

People at Konnekt have a common trait: an openness to learning and knowledge acquisition in whatever they do. It is what makes them best placed to provide this level of service and support.

How do you see the iGaming industry and your services to it developing in the years to come?

Whilst the myth that ‘iGaming companies are not stable’ is a thing of the past, it is now recognised that the industry is more mature.

Volatility does exist, but in my view the advantages far outweigh the cons. iGaming

is in a consolidation phase when possibly less but bigger players will be characterising the market through increased M&A strategies as we have seen in the past months.

Konnekt will continue to provide a high level of service, developing more in-depth partnerships with the industry.

Paul Giglio – Tax Partner, Mazars Mazars is one of Malta’s leading multidisciplinary audit, accounting, tax and business advisory firms with specialist knowledge in the gaming, insurance and financial services sectors.

From your perspective, how has the iGaming industry developed in recent years and what have the highlights been?

The gaming industry is facing a dynamic and highly-complex economic and financial environment, compounded by major regulatory changes, including the new Gaming Act that will be discussed in Parliament over the next few months. We also see an environment where, for some

time now, there have been several mergers and acquisitions. Our long-term outlook for the market is one where the ‘big boys’ are the principal actors, with the larger companies acquiring smaller operators and start-ups, whose strategies are often geared towards a buy-out.

How does Mazars service the sector?

We have been servicing gaming companies since the onset of the industry in Malta. We believe that our role as advisors is to help our clients to think and act long-term. We aim to ensure that our services are relevant, that they bring added value to our clients and their many stakeholders, and to help clients meet their business objectives. We provide a one-stop-shop service, assisting in corporate structuring, tax planning, licensing, VAT optimisation and compliance, as well as accounting and audit services. We are also approved MGA compliance and systems auditors, and have been serving in this role for the past seven years.

How do you see the iGaming industry and your services to it developing in the years to come?

I think that consolidation is already a reality, and the industry will see fewer and larger

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players in the market. As these continue to grow and mature, greater emphasis will be placed on efficiency, innovation and technology. I expect to see greater investment and initiatives in the automation of operational processes, thus reducing cost and improving player experience.

Understanding customers through business intelligence and data analysis will also continue to play a critical part in product innovation, personalisation and optimisation.

In the meantime, current developments continue to centre on the OECD’s measures on Base Erosion and Profit Shifting (BEPS), while, in 2019, the EU’s Anti-Tax Avoidance Directive will also kick in and affect areas such as thin capitalisation rules. Transfer pricing for the acquisition of intra group services will also need to be analysed in this context. However, most of our clients are already developing their structures with such a framework in mind.

In the gaming sector, many companies are currently ‘getting their house in order’, especially those that are preparing for an IPO and want to showcase the highest level of corporate governance. I am glad to say that the various listed companies which feature in our client portfolio are very much ahead of the game in that regard.

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CC BUSINESS

Alan Alden – Director of Kyte Consultants Ltd and

Contact Advisory Services Ltd, General Secretary of MRGC

Contact Advisory Services comprises a team of top professionals with decades of experience in consulting. Together, they offer a unique blend of key services, resulting in a one-stop-shop for consulting and assurance services that include remote gaming, corporate services, back office and internal auditing.

From your perspective, how has the iGaming industry developed in recent years and what have the highlights been?

We’ve seen the rise and fall of poker, and the increase in national licenses (and not just in Europe, but globally). Everyone wants to offer as many games as possible. Gamification has also become popular. Demand for licenses has decreased, as most operators are now already here and new entrants have to contend with extensive regulations such as AML, GDPR, and also the decrease in available markets, so costs for start-ups have risen considerably.

How does your company service the iGaming industry in Malta?

We provide all the assistance required to set up in Malta and obtain gaming licenses here. Services included corporate, legal and technical, with experts in each area. Due to the decrease in demand for new licenses, we have now turned to post-licensing compliance

assistance. We specialise in AML, GDPR, ISO 27001 and PCI DSS, and all companies need assistance with compliance. We stand out because we do not only highlight the problems but we sell the solutions.

How do you see the iGaming industry and your services to it developing in the years to come?

New licensees will certainly keep coming, but the pace will slow down even more.

The new licensing regime will reduce our workload, especially since only one license will be needed, and system and compliance audits should also reduce. So we need to continue expanding on our service lines for post-licensing compliance, and we are also looking into other industries where we can provide similar services utilising our core competencies. For example, all subject persons need AML assistance and training, and all data controllers need assistance with GDPR, ISO 27001 and PCI DSS, which are also not limited to gaming. In fact, we already have a number of non-gaming clients, and customers from the health sector, insurance, payments, crypto, banks, pharmaceuticals, e-commerce businesses, and so on. There are always opportunities, it’s just a matter of realising that they are there and then having the tools to

enter the different sectors.

The iGaming industry has to work to make people aware that they are not as bad as everyone makes them out to be. Journalists should speak with the industry before plastering headlines that would indicate that all gaming companies are in collusion with the mafia and destroying families. This achieves nothing good and only harms the industry and provides ammo for the other EU member states to attack Malta. I do not mind the truth being told, but we must not generalise.

Joseph F. Borg – Partner – Gaming Advisory and Blockchain Advisory, WH Partners Dr Joseph F. Borg is an advocate and partner at WH Partners, heading the Blockchain Advisory and the Gaming and Gambling Advisory sections of the firm. He is currently the vice-president and co-founder of Bitmalta.

From your perspective, how has the iGaming industry developed in recent years, and what have the highlights been?

Malta was the first European Union member state to regulate iGaming by publishing the Remote Gaming Regulations in 2004.

The Maltese gaming regulatory framework managed to attract the gaming industry towards our shores, not just because it was the first to regulate but also because the regulations are technology-neutral and game-neutral. Furthermore, the Malta Gaming Authority or Lotteries and Gaming Authority (LGA) as it was called at the time, has always proved to be approachable and business-friendly, while being able to put the safety and security of players at the forefront. This has been achieved through a regulatory approach which favours innovation and business development, while ensuring that player protection is at the centre of the regulatory framework.

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Why did Malta feel the need to update its gaming laws?

The Malta Remote Gaming Regulations (S.L 438.04) had undergone very few changes throughout the years. In fact, some players in the industry had wondered whether it was time for an overhaul to take place to accommodate changes in the business, both from a commercial and a technological perspective. The most eagerly anticipated change is probably the simplification of the licence classes from the current cumbersome fragmented multi-licence system tied up to each product within an operator’s offering, which will be replaced by just two licences: B2B and B2C. This will allow operators more time to market for new products, whilst freeing up resources within the MGA to concentrate on more significant matters.

How do you see the iGaming industry developing in the year/s to come?

These are interesting times for the Maltese gaming industry and all stakeholders are looking forward to the next steps to be taken by Government and the MGA. The ultimate aim is to strike the right balance between maintaining and, if possible, lifting the jurisdiction’s reputation, raising the bar with respect to player

protection and at the same time, providing the ideal environment for operators to operate with minimal bureaucracy and under an efficient and innovative regulatory framework. In the coming months, we will see a large number of operators bringing a lot of staff to Malta, particularly those moving from Gibraltar due to Brexit. Over the next few years, we will see further consolidation of the industry in Malta and in Europe. Probably, the growth rate of the industry will slow down, and the current trend of mergers and acquisitions within the industry will continue. cc APRIL/MAY 2018

CC CASE STUDY

A dynamic new force in local recruitment Sarah Micallef meets Broadwing Ltd Managing Director John Paris and Directors Ben Pace Lehner and Alan Cini, part of the team behind the vibrant new employment agency, and discovers just how much has been achieved in a mere few months, as well as their big plans for the future.

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s I meet the team behind recentlyestablished employment agency Broadwing Ltd, my first impression is that these guys mean business. Their sleek offices within The Penthouse at the Ewropa Business Centre in B’Kara are a fitting setting for this dynamic team, which is brimming with energy and ideas.

I sit down with Managing Director John Paris and Directors Ben Pace Lehner and Alan Cini, who founded the company, together with Director Richard Padovani. They introduce Broadwing as a state-of-the-art employment agency which targets businesses and candidates alike, offering recruitment and HR services to a broad spectrum of sectors.

“Our goal is to provide exclusive employment expertise within online gaming and IT, sales and marketing, legal and compliance, as well as within the financial services industries,” they say.

With the aim of connecting top-tier talent with industry-leading employers, the team behind Broadwing focus on attracting, shortlisting, appointing and selecting suitable candidates for the placement of permanent, part-time or contract staff on behalf of their clients. And they do this by utilising a combination of a leading global recruitment CRM software with a cutting-edge website, solid brand, effective marketing and enthusiastic recruiters.

The core people behind the creation of Broadwing combine entrepreneurship and varied specialised skills including legal and financial fields, computer systems and software engineering, design and marketing.

Speaking of how the company first came about, John explains, “I have a background in credit management which is where I met Richard, and moved into recruitment three years ago. I knew Alan as we had worked together in the past, so I was familiar with his work. Ben and Alan also have their own digital marketing company, Rocksteady, and we saw

that there were a lot of synergies between us.”

“One of the things that helped us come together is the fact that we all have different areas of expertise,” adds Ben. “John has a background in finance and accounting, Alan has an IT, design and marketing background, while I have an IT and business background, so between us, we can sit in on interviews and raise points that are relating to our area of expertise. It’s a great start, and as we continue building the team, we’re looking into using people with different specialisations.”

Asked about their core values, the partners affirm that they value quality and specialisation, focusing their resources on identifying unparalleled, highly-qualified individuals across their disciplines. “We build and maintain exclusive relationships with our clients and candidates, enabling our team of professionals to identify the most suitable fit,” they say. Identifying a number of areas of service which form the backbone of the company, they name “confidentiality, sector specialisation, quality service, transparency, communication, strong relationships, knowledge of employment trends, consistency with recruiters, understanding the employer, branding and corporate culture, integrity and professionalism,” as key factors.

And while it was only late last year that the team began to discuss the possibility of a recruitment company, they certainly hit the ground running. Right away, Alan explains, they began looking into creating a structure, and shortly after attended London Bullhorn Live 2017 conference, where they learnt about the global leader in CRM and operations software for the recruitment industry, and met up with their first international recruitment partners – Williams Kent. “I learnt about the system and how it works. Coming from an

IT background, I knew it would be great for us, so we decided to bring it down and build a site around it. The conference was out-of-thisworld, and we partnered up with a number of recruitment companies in London, as well as in other countries including Poland, Cyprus and Portugal. In January we got the system and set up Broadwing,” Alan says.

Speaking of the cutting-edge software, the directors explain, “more than 7,000 firms rely on Bullhorn’s cloud-based platform to drive sales, build relationships and power their recruitment processes from end to end. Our main recruitment website integrates with Bullhorn and acts as a ‘shop window’ for the business, with its primary function being to promote the available jobs and allow potential candidates to register, manage their profile and apply for a job.”

Delving into the ways in which technology is shaping the recruitment industry, they maintain that implementing technology has never been more critical to success. “More than just a luxury, agencies that don’t take advantage of technology are at a competitive disadvantage when it comes to delivering a remarkable candidate and client experience,” Alan affirms, adding that while it is important to utilise the latest technology, it will never take the place of the human element.

“Automation is a key technological driver to improving user experience and drive down costs. An example of this is the application process we are using, which implements chatbots to conduct the initial screening process. These are quick and the candidate gets an instant response,” they explain, yet while such measures are a help, they do not apply for the entire process. “You can’t automate the entire process,” Ben says, adding, “a computer cannot make a decision when it comes to

“More than just a luxury, agencies that don’t take advantage of technology are at a competitive disadvantage when it comes to delivering a remarkable candidate and client experience.”

Photos by Alan Carville

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APRIL/MAY 2018

CC CASE STUDY

L-R: Ben Pace Lehner, Alan Cini and John Paris

“As the digital space has matured in the last 20 years, so has the need for recruiters to mature their data collection and processing transparency.” determining whether a candidate is suitable, but it does give you the tools to facilitate the decision.”

Alan is in agreement: “if you were to ask whether technology can take over for a recruiter, I’d say no. They have to work in sync.

Technology is a great help, but at the end of the day, whether it’s a face-to-face interview or a video interview with international candidates, you need a personal connection.

AI (Artifical Intelligence) can’t do that.”

Moving on to a hot topic within the business world at the moment – the upcoming implementation of the General Data Protection Regulation (GDPR) in May, I ask, what impact will this have on the recruitment industry?

“Recruitment is about relationships and increasingly about data, and data is the key to business success,” they explain, maintaining that GDPR compliance is further complicated for recruitment agencies that manage data and consent not just from customers but also from thousands of candidates. “Recruiters need to be able to demonstrate that they use people’s data appropriately and fairly. As the digital space has matured in the last 20 years, so has the need for recruiters to mature their data collection and processing transparency,” they add.

Still, if anything, this has worked in Broadwing’s favour. “We give a lot of importance to the GDPR, and the fact that APRIL/MAY 2018

we are newly set up gives us a big advantage, because we are starting afresh, so we don’t have to re-evaluate our system. We already have everything in place,” says John. “We started off making sure that any technology we implement is already compliant, so that we don’t have to go back and change it later on, as well as ensuring our own internal processes are compliant,” Ben continues.

Looking ahead towards the future of the recruitment industry locally, the directors stress the importance of remaining innovative.

“Technology has impacted the world of work massively over the last 10 years. Over the next decade, its effects will only increase. People are engaging with technology in ways never seen before, meaning recruitment leaders need to invest in the right technology to keep up. Candidates and clients are agile, techsavvy, and looking for a great experience,” they explain.

While cold-calling is still used to a certain extent, it is clear that the skills required in tomorrow’s recruitment market may not be the same as today’s. “Recruiters need to use technology in their favour. If you resist, you will lose out, but if you embrace it you’ll come out on top,” Alan maintains. Meanwhile, Ben also foresees a greater emphasis on HR from a recruiter’s point of view. “I think the industry will move a lot more towards HR and assisting companies in the process in so far as consultation and guidance.”

Turning their attention to their own plans for the future, I ask, what’s in the pipeline for Broadwing Ltd, moving forward? “Following the set-up of the main recruitment portal and website, we will begin implementing secondary industry specific job board websites which will allow companies to purchase packages to promote their jobs on the site and other various mediums, depending on the package purchased.

Candidates can then apply for a job directly with the employer,” they divulge.

An additional revenue stream will be a global portal for recruitment in the yachting industry through yachtingcareers.com, which the company already owns. “We already have a lot of contacts within the industry, so it’s a natural progression. I do a lot of sailing myself, and most of my family works on super yachts – the connections are already there,” says Ben, explaining that the aim is to build a database of jobs and candidates looking to work in the yachting industry in Malta before leveraging their international yachting connections to expand globally.

As things stand, the shareholders are motivated by the brand, the team behind it and how much has been achieved in such a short timeframe – and there’s much more to be done.

“We have lots of plans, including expansion and pushing the brand,” Alan says, before John adds, “we don’t want to divulge all our plans!”

Sharing a laugh, it’s clear that there’s a lot on the horizon for the start-up, and Alan sums it up perfectly: “a lot has been done in four months, give us a year and see what happens!” cc www.broadwing.jobs 55

CC CASE STUDY

Malta: the jurisdiction of choice for blockchain businesses?

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here is an absolute buzz about cryptocurrencies at the moment, as well as whether to invest in them, or to put them down to a scam. Either way, the business world is fascinated.

One expert on the subject is Dr Joseph F. Borg, an advocate and partner at WH Partners, who heads the Blockchain Advisory and the Gaming and Gambling Advisory sections of the firm. On top of that, he is the Vice-President and Co-Founder of Bitmalta, which is a non-profit organisation that promotes and stimulates discussion about blockchain technology and cryptocurrencies in Malta.

“Let’s begin by explaining what a cryptocurrency actually is,” Dr Borg says.

“Essentially, it is a type of convertible virtual currency secured by cryptography that is built on top of the blockchain – a type of distributed ledger technology which does away with the need for a third-party clearinghouse and central issuer. As a result of their underlying decentralised technology, cryptocurrencies have introduced muchneeded competition in the digital payments industry and have the potential to contribute positively to citizens’ welfare and economic development, including in the financial sector. Some of the most popular touted benefits of cryptocurrencies are their ability to lower transaction and operational costs,

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to promote financial inclusion, to enhance the resilience and speed of payment systems, and to increase users’ security and privacy, among others.”

Nevertheless, the idea presented by cryptocurrencies – the first of which was Bitcoin – was not in fact new. A number of similar virtual currency systems including e-Cash, Bit Gold and RPOW, were introduced in the 1990s.

“The true innovation of cryptocurrencies following the ‘Bitcoin model’ is their innovative approach to addressing the ‘double spending problem’,” Dr Borg continues. “This refers to the inherent difficulty of sending money or anything valuable over the internet since a digital asset essentially comprises a digital file that can be duplicated or falsified.”

Pre-Bitcoin, existing virtual currency systems required the use of an intermediary or clearinghouse to manage and verify the transaction (and ensure that the same money was not spent twice). The blockchain, which underlies cryptocurrencies, does away with the need for such an intermediary by keeping a record of every transaction on a time-stamped database that is dispersed among the different users of the network.

“Blockchain’s solution to the ‘double spending problem’ has been described as its ‘revolutionary promise’ and the hype factor surrounding the technology has now led multiple companies to unveil a multitude of blockchain initiatives,” the advocate continues.

“The hype is really about blockchain and not cryptocurrencies per se.

Cryptocurrencies are really the very first application of blockchain technology, and which have the potential to disrupt the payments industry (once they have achieved the level of mainstream use).”

On the other hand, blockchain has more widespread potential applications, in myriad industries, including but not limited to the spheres of finance, healthcare, energy and entertainment. “The buzz surrounding blockchain technologies continues to grow, and this is most evidently illustrated by the rapid increase in the creation of not only new cryptocurrencies (the so-called ‘altcoins’), but also by the creation of self-executing digital contracts (smart contracts), intelligent

Photos by Alan Carville

Government looks favourably on the world of blockchain, and this could lead to the island becoming a hub for related activities.

Here Dr Joseph F. Borg, an advocate and partner at WH Partners, talks Jo Caruana through the history of blockchain and highlights its potential path in the future.

“The buzz surrounding blockchain technologies continues to grow.”

assets which may be controlled over the Internet (smart property), and decentralised autonomous organisations (DAOs) which can operate over a network of computers without human intervention, among many other applications,” Dr Borg says.

Locally, Government approved its National Blockchain Strategy in April 2017 and, just a few months later, launched a Blockchain Taskforce with a view to establish the Maltese legal system as the leading international hub for digital technology innovation.

“Currently, the only concrete step undertaken by Government towards achieving a comprehensive regulatory framework for operators wishing to provide services incorporating blockchain technology is the Supplementary Rules for Collective Investment Schemes Investing in Virtual Currencies, issued by the local financial regulator, the Malta Financial Services Authority (MFSA),” Dr Borg says.

Following on from this, a consultation document was published on 16th February 2018 proposing three legislative instruments: the Malta Digital Innovation Authority (MDIA) Bill, the Technology Arrangements (TAs) Bill and the Virtual Currency (VC) Bill. The MDIA Act is envisaged to provide APRIL/MAY 2018

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for the establishment of a national regulatory body that will oversee the voluntary certification of TAs such as smart contracts and cryptocurrency platforms, and the registration of Technology Service Providers (TSPs) including the auditors and administrators of TAs. The MDIA will be responsible, inter alia, for the protection of users and consumers which interface or use DLT, the harmonisation of practices and the adoption of standards in the Maltese sector, and the promotion of legal certainty in the application of laws to DLT businesses, in both a national and a cross-border context.

“Mindful that the disruptive nature of blockchain technology renders it apt to have spill-over effects in an array of sectors, the MDIA Act is proposed to prescribe a Joint Coordination Board with the responsibility of fostering effective cooperation between national competent authorities like the MFSA and the Malta Gaming Authority (MGA),” Dr Borg continues. “The consultation document also proposes a VC Act which will largely follow the principles laid down in the MFSA’s discussion paper on ICOs, virtual currencies and related service providers. It is projected that the VC Act will provide for a Financial Instruments Test which will determine APRIL/MAY 2018

whether a particular cryptocurrency, within the context of an ICO or on a stand-alone basis, constitutes a ‘financial instrument’ which must comply with applicable local and EU investment services legislation.

“With this in mind, Government evidently looks favourably upon blockchain-based businesses and is actively seeking to create a workable regulatory framework to further promote this nascent industry and to become a pioneer in regulating DLT and blockchain technology. While other jurisdictions have chosen to regulate blockchainrelated operations in a piecemeal fashion, focusing only on the areas that the respective governments/states consider to be of importance (such as issues of taxation or money laundering), the Maltese Government is considering a holistic, all-encompassing regulatory approach to creating the most attractive environment for blockchain start-ups to choose Malta as their base. Evidently, the recent announcement by cryptocurrency exchange Binance (the largest cryptocurrency in the world in terms of volume) is proof that Malta is indeed becoming a melting pot for blockchain

businesses, start-ups and industry giants alike.”

Finally, Dr Borg assesses the main challenges that lie ahead of making Malta the jurisdiction of choice for companies engaged in blockchain technology and cryptocurrencies.

“While the debate surrounding the possibility for centralised rules to regulate decentralised technologies remains unsettled, there seems to be consensus by the stakeholders and market players of the blockchain and cryptocurrency industry that some form of regulation (especially in the form of guidance) is important,” he says.

“The greatest challenge to make Malta the jurisdiction of choice for blockchainbased businesses therefore rests in any proposed regulatory framework not falling prey to over-regulation. The test for local policymakers and regulators will be the development of a regulatory system which addresses the primary policy concerns of blockchain technologies (such as money laundering and illicit activities), without smothering the benefits which the new technology and its various applications are poised to provide to legitimate users, including companies,” he adds. cc 57

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GDPR – from challenge to opportunity If anyone wanted to understand what the ins and outs of the new General Data Protection Regulation (GDPR) are, this couldn’t be a better time to figure them out.

By Dr Paul Gonzi and Dr Antonio Ghio – Fenech & Fenech Advocates

Not only is the GDPR’s day of reckoning literally around the corner, that being 25th May 2018, but the already very topical subject of data protection has just been catapulted to the forefront with a certain chilling panache.

The muddle of facts and allegations tied to the Cambridge Analytica (CA) and Facebook affair, an affair having intricate spin-offs tied to the controversies of Trump, Brexit and more (including one that is closer to home) are just ripe for the picking.

Let’s face it, the ingredients have the makings of an outstanding thriller movie.

Mass secret surveillance by companies and politicians alike. A Big Brother lurking in the shadows of innocent people’s homes (circa 87 million of them, please note), covertly gathering and analysing their data, their preferences, their behaviour, their contacts, APRIL/MAY 2018

friends and foes, their likes, shares and emojis – absorbing millions of sets of data to learn what inspires them. In turn, they feed back personalised information using subliminal messages, convincing them to be something that they are not, to decide one way and not the other, all without them even knowing, let alone consenting to it; for instance: influencing them on whether they should buy the latest car, or vote for a particular candidate. That is the profiling and automated decision-making happening in today’s technological world.

So how is this all relevant to GDPR? Well, GDPR is intended to be the force against this sort of (alleged) abuse. It is the Version 2.0 of the data protection law in the EU. It raises the bar for those who process personal data, increases the rights

of individuals whose data is processed and seriously ups the ante with tremendously pumped-up sanctions in case of breach, reaching €20 million or four per cent of global turnover, whichever the higher. To top that, it has a scope that extends beyond Europe’s shores, supposedly impacting all those who process personal data belonging to persons in the EU, whether in China, India, North Korea or Timbuktu.

Take Facebook as a hypothetical example.

Post 25th May, a breach by this global giant could potentially mean a whopping $1.6bn fine, four per cent of its circa $40bn worldwide turnover in 2017. And if all this weren’t enough, GDPR contemplates other potential liabilities, including sanctions of a criminal nature and potential civil damages that any person (arguably those in the EU) who suffered a breach could claim.

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CC make the headlines But it doesn’t stop there. The risk of getting GDPR compliance wrong will come with an obligation to report the breach to the authorities and possibly having to communicate it to all those individuals who may have been impacted. A marketing nightmare and a reputational disaster – a risk which is amplified by the fact that a breach under GDPR can also subsist in cases of inadvertent or negligent loss of personal data where there is no malicious intent.

On that note, it is reported that since the mid-March CA outburst, Facebook has lost approximately $100 billion in share value and counting. And who knows what the consequences would have been had this occurred post 25th May? In the meantime, the data protection regulator in the UK (the ICO) has since raided CA’s operations. Of course, Facebook and CA deny any wrongdoing, which is yet to be seen. So we must continue to watch this space. Yet, as we do watch and wait, we must nonetheless realise that GDPR is not a law designed just for the multi-billion corporations.

On the contrary, in the midst of all this hype, every small, medium and large organisation is expected to comply with the broad principles and rigorous rules imposed by the GDPR. Data protection must become the mantra, by design and by default, says the GDPR. There is no escaping it. The Article 29 Working Party (where all EU authorities get together to issue joint opinions that carry weight) have underscored the principle of equivalence; fines must be comparable across the EU and they are not to be used as a last resort!

Therefore, ignoring GDPR is an option, but a bad one.

Long story short, GDPR mandates protection of all data which directly or indirectly identifies a person: addresses, ID numbers, personal details, and location data

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Dr Antonio Ghio

– even an IP address can be personal data.

Processing of personal data essentially means anything you can think of doing to it: sharing, storing, backing-up, deleting, losing it – literally anything.

And to process personal data lawfully, six principles must be complied with cumulatively, one of six grounds must be satisfied (and more in case of ‘special categories’ of data, such as biometric or health data). Principles of accountability, transparency, lawfulness and others translate into heaps of requirements, including information obligations, recordkeeping, appointing a DPO, carrying out DPIAs, reporting breaches and handling data-subject rights.

And lo and behold, there are many such rights: the right to information, to access, to restriction, to rectification, to erasure, to portability, to object, to withdraw…

So where does one even start?

Well, first and foremost, an organisation must engage the right experts to facilitate the process. Next, absorb the basics of GDPR – learn to speak its language.

Then, it is time to figure out what personal data is being processed

by whosoever within or beyond the organisation, for what purpose/s, using what means – essentially, a data mapping exercise.

Once that is done, it is time to analyse the legitimacy of that processing. Are the grounds for lawfulness being satisfied? Is there an overriding interest that prevails?

Is there an exception to the rule? Should consent always be relied upon and if so, is it validly obtained? Is there automated decision-making? Is there a risk which requires a DPIA to be executed?

Following that, the organisation must weigh the risks of getting it wrong. Are the organisational and security measures sufficient to secure the data against accidental loss of data? Is the organisation prepared to defend against external malware attacks? Are the necessary protocols and procedures in place for an effective reaction to complaints, suspected breaches and data-subject requests? Have pseudonymisation and anonymisation mechanisms been contemplated? This requires a gap-analysis exercise designed to highlight room for improvement, flagged by priority. Only then can the organisation work towards filling in those gaps.

Several surveys show that there are still many organisations that are not even close to complying with the GDPR, which means they are exposed to significant risk – some more than others. Yet it is never too late, and getting the ball rolling towards compliance is better than having nothing to show. GDPR mandates accountability – record retention, with the ability to demonstrate compliance.

So, for those organisations that do not want to be part of the hype, or the guinea pig upon whom the fines are first tested, it is best to pull your socks up and get the ball rolling. After all, understanding what data you hold, how to streamline your processes and how to better exploit the data in a lawful way is, really, an opportunity worth investing in. You can convert this challenge into a long-term investment, conserving ongoing GDPR compliance as you move along.

As someone recently said, data is today’s oil. So do this once, and do it properly. cc

Dr Paul Gonzi APRIL/MAY 2018

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From multi-channel to omni-channel: devising a strategy and selecting the right technology Retailing has inarguably been transformed over the last few years. Developments in information technology and the proliferation of digital channels – mobile, online, social media, and so on – have aggressively altered consumer patterns, and consequently, retail business models and the buying process itself.

As new touch-points become available to customers, the retail industry is reacting with a noticeable shift from a multi-channel approach to what is now being referred to as omni-channel retailing. Interestingly, research indicates that the success of businesses is heavily tied to their ability to respond to the transition to omni-channel: businesses which adopt omni-channel strategies achieve considerably greater year-over-year customer retention rates compared to businesses that do not.

A winning omni-channel strategy is necessary. Yet despite its ubiquity, the term omni-channel is not always properly defined or distinguished from multichannel. In brief, multi-channel refers to brand presence which infiltrates through several, alternative physical or virtual channels, through which customers can make purchases, but which nevertheless work disjointedly. Omni-channel, on the other hand, works towards dissolving the boundaries between those various channels, unifying them so that they become inseparable. Increasingly techsavvy consumers want to have the ability to shop across multiple channels, anywhere and at any time, and they expect consistency during each encounter with the brand as they move across channels to make a purchase. To give an example, a customer may wish to use a digital channel to look at stock availability or prices, and then complete his or her transaction by purchasing, or simply collecting, pre-paid items from the closest physical store.

Predicting the sequence of a customer’s engagement with the various touch-points, however, is tricky, if not impossible. This difficulty is best addressed by cultivating a flexible and integrated omni-channel service, which empowers customers to determine their own path of purchase, allowing them the liberty of switching freely between channels and interacting with the various points in the order they desire. The task of the competitive retailer is therefore to mirror consumer behaviour and to devise a seamless shopping experience that succeeds in attracting new customers and simultaneously retains the loyalty of the regulars by making its products, as well as unified information about them,

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available to its customers through various seamlessly integrated touch-points.

A successful progression into omnichannel business comes with its challenges and inevitably requires investment.

Certainly, it calls for the organisational culture of a business – along with its operations and practices – to evolve and adapt. Furthermore, the key technologies selected by a company to facilitate the journey towards a customer-centric approach are often at the root of the success, or failure, of that strategy, thus demanding the careful selection of strategic technology and retail partners.

One such supplier, LS Retail, is a worldleading developer and provider of all-in-one business solutions for retail and offers a powerful suite of high-quality, costeffective, and highly configurable solutions.

Their extensive experience assisting retailers worldwide to optimise their

business processes and increase revenue by creating the desired unified shopping experience across platforms makes the challenge of developing an omni-channel strategy significantly less daunting.

Entrusted with the unique retail strategies of household names such as Nike, IKEA, Juventus F.C., PUMA, Armani Exchange, H&M, and Victoria’s Secret, LS Retail can support businesses with creating optimised retail operations and customer experiences that are superior, consistent, and personalised throughout. LS Retail and its local Solution Partner, Exigy, can assist companies with providing the necessary technology to ensure their customers receive a superior, omni-channel shopping experience and outstanding customer service. cc Francois Grech is the Executive Director of Exigy Ltd. E: fgrech@exigy.com

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CC make the headlines

Strengthening the regulator and exploring new economic niches The past years have seen the igaming sector grow at a steady rate. It now represents the single most important economic sector in our economy, contributing to 12 per cent of the Gross Domestic Product and employing around 6,000 employees directly.

It is now time for the legislative framework regulating this sector to be upgraded, to make it more responsive to the needs of the industry and the changing external environment. The new Gaming Act is a result of an extensive consultation with the stakeholders of the industry who expressed the need for an overhaul of the gaming legislation.

Last summer, the Malta Gaming Authority launched a public consultation on the White Paper proposing major reforms. In the past years, the gaming industry has evolved, putting the Maltese jurisdiction at the forefront of this sector. The new Gaming Act reflects a sense of modernisation, future-proofing and simplification through dynamic, streamlined and technology-neutral provisions to achieve better regulatory and policy objectives while mirroring European legislation and regulatory principles. The new Gaming Act up for discussion in Parliament is based on three fundamental principles: efficiency, relevance and sustainability.

With regards to the first pillar, that of efficiency, the new Bill is proposing the replacement of the current multi-licence system with a system in which there will be two different types of licences – B2C (Business-to-Consumer) and a Businessto-Business licence, thus reducing the administrative burdens faced by operators.

The new Gaming Act will not stifle innovation and it will ensure that the regulatory objectives are achieved. It will broaden the APRIL/MAY 2018

regulatory scope to increase MGA oversight and allow intervention where necessary. At the beginning of this year, new regulations came into force with regards to the European Union’s Fourth Anti-Money Laundering Directive. The new Gaming Act strengthens MGA’s powers to better achieve the regulatory objectives, in line with anti-money laundering and funding of terrorism obligations.

By means of this new Act, Malta will continue to present itself as the primary jurisdiction which welcomes operators that are socially responsible and that imposes strict requirements in this area. In other words, the new Gaming Act will elevate Malta’s excellent reputation in this sector, will strengthen the MGA’s efforts against money laundering, will guarantee stronger protection for the consumer and will give a stronger voice to the operators.

Government is fully committed to do more to help relieve the concerns of the entertainment sector representing an area for economic growth, innovation and dynamism.

In fact, Malta has recently welcomed the THU, Trojan Horse was a Unicorn, which will be hosted in Malta over the next three years. This was possible by means of joint efforts between people from the Secretariat for Financial Services, Digital Economy and Innovation, together with other entities and the Office of the Prime Minister. Whoever is into game development and game design surely knows about the unique experience THU offers. THU will play a vital part in Malta’s digital creative

ecosystem but will also add impetus to our vision to enhance the digital creative industries whilst prioritising innovation, education and attracting talent. A one-week event will be the focal point for the development of a new economic niche and a great experience for local industry to tap into the digital arts.

Students and budding artists can use this as a platform to familiarise themselves with the industry and pursue an exciting career in this sector. As a Government, our aim is to continue providing the right environment for digital skills to prosper, ensuring that Malta attracts the best global talent.

These milestones would not have been possible without the work done so far and the determination to achieve more. Just a few months since the launch of the policy ‘Malta – A Leader in DLT Regulation’, the largest company in crypto exchange, Binance, announced its decision to relocate to Malta. This shows that Malta’s drive for innovation is attracting the attention of the international sphere that wants to be part of the vision of creating new economic sectors.

We have seen the gaming industry becoming one of the main contributors to Malta’s economic growth, and now have a strong ecosystem ready to explore new niches within this thriving sector. We have come this far but we haven’t arrived yet. Embracing new technology is key, and Government is determined to make this country future-proof by building a strong and resilient infrastructure, both physical as well as legislative. cc 65

CC make the headlines

The GDPR – don’t be a deer caught in headlights

By Dr Sharon Xuereb, Senior Associate, Camilleri Preziosi Advocates

The imminent implementation of the General Data Protection Regulation (Regulation (EU) 2016/679) (GDPR) on 25th May 2018 has attracted significant attention from regulators, industry players, business players and the advisory community alike.

The GDPR requires extensive internal assessment to be carried out in order to determine whether an organisation is required to update (or altogether abandon) its current data processing practices in favour of more stringent, robust and compliant data policies. It is, and has been for some time now, key to get organised to avoid being caught off guard when implementation date arrives.

The legal obligations stemming from the GDPR necessitate that any personal data which is processed by a data controller or data processor be necessary, adequate, relevant and limited to the purposes for which the data is processed. Essentially, this means that the GDPR requires organisations to start off by conducting a gap analysis to internally assess the ways in which they process personal data and the reasons for such processing. Indeed, the GDPR explicitly stipulates that both data controllers and data processors are to keep a detailed internal data processing register. A well-kept and up-to-date register will be taken into consideration should a data breach ever occur within the organisation in question, and with fines capable of reaching up to €20 million or four per cent of the total worldwide annual turnover of the business’ preceding financial year, whichever is higher, it is crucial that organisations instil a data protection culture which promotes the all-over protection of personal data. This would also mean having the required policies in place, such as a data breach reporting policy, information security policy, and a policy on retention of personal data.

Other than the requirements set out by the GDPR in terms of businesses’ internal compliance, the Regulation will also introduce an array of new rights which must be imparted onto the data subjects themselves. One of the rights enshrined in the GDPR is known as ‘the right to be forgotten’ which entitles data subjects to have their data completely erased by the data controller when prompted, subject to exemptions listed within the Regulation. Importantly, withdrawal of consent is included as one of the lawful bases of processing on which the right to be forgotten may be exercised. Businesses must ensure that they have the appropriate procedures in place to allow for the erasure of such data when the data’s erasure is permitted.

Additionally, it is important to bear in mind that the GDPR is not a standalone piece of legislation and its provisions should be read in conjunction with other laws, and construed in the context of other obligations, prevailing at both a national and a European level.

Interestingly, there are several overlaps with the GDPR, such as in the case of anti-money laundering laws, gaming regulations and banking obligations, to name a few. The obligations found within these areas of law must be balanced together with the obligations set out by the GDPR, as the GDPR does not supersede them.

In preparing for the onset of the GDPR, particularly by updating data protection policies and procedures given that compared to previous data protection legislation, the GDPR casts a very wide net of applicability, every business will have its own unique requirements to address. Generally applicable to-dos include devising a GDPRrelated plan of action, allocating the necessary budget, identifying

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“The legal obligations stemming from the GDPR necessitate that any personal data which is processed by a data controller or data processor be necessary, adequate, relevant and limited to the purposes for which the data is processed.” risks, exposure and liability, carrying out a data protection audit, and erasing any unnecessary data currently retained on internal systems.

The changes and requirements brought about by the GDPR are here to stay and burying one’s head in the sand will only make matters more complicated once the Regulation is in force. Daunting as it may sound, with the appropriate support, expertise and advice, GDPR compliance could be a manageable task which is well within reach. cc E: sharon.xuereb@camilleripreziosi.com

APRIL/MAY 2018

STYLE

Style Review

REVIEW

04. Pencil skirts

01. Tonal dressing A huge upcoming trend in menswear is tonal dressing – wearing different shades of the same colour spectrum in the same outfit. Blue or grey are easy enough to pull off, but don’t be afraid of lighter neutrals and even pastel shades.

Remember – three is the magic number.

The pencil skirt is a classic for the ages, but this time around, the silhouette will be longer-lined, making it much more flattering for all shapes. Style it with a tucked-in top or a tailored blouse left on the outside.

01.

Canali

Spring has officially sprung, and a glorious new wardrobe awaits!

Marie-Claire Grima looks at the fashion trends sweeping catwalks and streets around the world, and figures out how to style them for the day-to-day.

05. Trench coats Whether deconstructed and warped or classically cut and adhering to tradition, trench coats are effortlessly wearable, and perfect for making that transition from cold weather clothing to spring attire. Best of all, they look great on anything from weekend t-shirts to boardroom attire.

06. Belt bags

Athleisure shows no sign of letting up, and side-stripe trousers toe the line between ultra-casual and smart. Pair them with a smart knit, a blazer or a slim-fit shirt to get the most mileage out of the look.

03. Tropical print shirts No, we’re not joking – as the weather gets warmer, tropical shirts are actually a good way to add a little bit of summer fun to your outfit. To avoid the Florida-retireeona-cruise-ship look, seek out designs in pared-back colour palettes and combine with dark tailored chinos or jeans.

Zara

Gucci

02. Side-stripe trousers

A certain bag trend stands head, shoulders, and waist above the rest this season, and it is the belt bag (a far less embarrassing term for bum bag).

Countless versions exist, from sporty style-setter pouches through to luxe leather options, so you’ll be strapped and ready to go no matter the occasion. cc

02.

06.

05.

04.

03.

Ted Baker

Celine

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APRIL/MAY 2018 Ted Baker

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NEWS Events & Initiatives

01. Industry insights As part of its drive to reach out to the entrepreneurs of tomorrow, the Malta Chamber of Commerce, Enterprise and Industry, in collaboration with the Faculty of Economics, Management and Accountancy (FEMA) within the University of Malta, once again offered students a course titled ‘Industry Insights’, with the aim to expose management students to the realities of business in Malta.

Kevin J. Borg, Chamber Director General, explained how the Chamber makes it a point to be close to young and prospective entrepreneurs with a series of projects and initiatives. ‘Industry Insights’ is the Chamber’s reach out programme with University students, who are likely to take up a career in entrepreneurship in the future. The course is also a way of bringing business closer to academia in a bid of dialogue and collaboration.

The semester-long course, which was offered for the fourth consecutive year, provided students with knowledge on an array of subjects championed by the Malta Chamber, including Manufacturing, Small and Medium Enterprises Policy, and Internationalisation, among others.

02. Chamber members attend gdpr information session The Chamber, together with the Office of the Information and Data Protection Commissioner and RSM Malta, organised an information session to discuss the General Data Protection Regulation which comes into effect on 25th May. Chamber Director General, Kevin J. Borg, welcomed the participants to the very wellattended event, on behalf of the Chamber

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President, and thanked the Office of the IDPC and RSM Malta for collaborating to provide the business community with an opportunity to better understand the Regulation and how to prepare to meet its requirements.

The Commissioner of Information and Data Protection Saviour Cachia, together with Ian Deguara, Director Technical Affairs, explained the Regulation and its provisions, and how these need to be addressed. The presentation concluded with a series of Take Home Messages to help businesses identify and prioritise the actions needed to ensure adequate readiness.

Gordon Micallef, RSM Malta Partner for Business and Technology Consulting

Services, explained some of the main concepts and highlighted the obligations from a business perspective while giving some pointers on best compliance practices.

Mr Micallef also provided the audience with the main points of an Action Plan for businesses to follow in order to come up to speed with the new Regulation.

03. Wines from six regions sampled at the Malta Chamber's wine tasting evening The Malta Chamber welcomed guests to its iconic courtyard at the Exchange Buildings as six of the country’s leading wine importers and manufacturers showcased their finest wines for those present to enjoy.

Participation in this event was free of charge, yet guests were asked to make a donation which the Chamber will shortly be presenting to the Malta Hospice Movement.

The evening of good wine and lighthearted networking took place at the Malta Chamber on 12th March. Charles Grech & Co. Ltd; M. Demajo (Wines & Spirits) Ltd; Farsons Beverage Imports Co. Ltd, Marsovin; S. Rausi Trading and Red October Co. Ltd presented wines from six different wine regions and countries around the world, during the wine tasting evening.

The President thanked all the participating companies for their cooperation in organising this event, as well as Continental Purchasing Co. Ltd, Professional Marketing Services Ltd and Villa Arrigo Ltd without whom this event could not have been possible.

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03.

04. Malta yachting industry challenges notice by eu Commissioner The Maltese yachting industry challenged a notice sent to Malta by the EU Commissioner in connection with the Maltese VAT rules for pleasure yachts.

In a statement, the Malta Maritime Law Association, the Malta Maritime Forum, the Yachting Services Trade Section within the Malta Chamber of Commerce, Enterprise and Industry, the Institute of Financial Services Practitioners and the Super Yacht Industry Network Malta said that they denounced the notice in light of the fact that the Maltese system is fully in line with EU law.

The associations also challenged the fact that no similar notice was sent to member states which apply the same principle under the EU’s VAT Directive.

The organisations clarified how Malta’s system did not exempt yachts from payment of VAT but rather provided guidelines (as allowed for by the EU Directive) regarding deemed use outside and within EU territorial waters such that yachts using such guidelines will always pay VAT at varying degrees.

“We believe that neither the Italian nor the French systems infringe the EU VAT laws. Therefore we cannot understand why Malta’s system should be singled out,” the statement said.

In conclusion, the organisations appealed to the President of the European Commission, Jean Claude Juncker, to intervene in the matter so as to 74

ensure that there is no discrimination against smaller EU states like Malta.

05. Seminar zooms in on sick leave issues Employers and doctors discussed issues related to sick leave management in today’s working environment, in a seminar organised by the Human Resources Committee within the Malta Chamber.

The seminar, held on Thursday 15th March, brought together numerous

stakeholders including public and private sector employers, company doctors, family doctors, trade unions and employment lawyers to explore whether traditional practices in sick leave management remain relevant and effective in today’s rapidly changing society and work environment.

Moderated by Human Resources Committee Chairperson Catherine Calleja, the event was addressed by Dr David Attard, an occupational health specialist and practising company physician, Dr Zammit Montebello, Vice President of the Association

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06. of Family Doctors, Ray Debattista, BOV HR Executive, Yakob Zahra, Director for People Support and Well-being within the Office of the Prime Minister, Dr Lara Pace, Associate at Ganado Advocates as well as GWU Secretary General, Josef Bugeja, and UHM Voice of the Workers Secretary General, Josef Vella.

The event followed a meeting the Human Resources Committee held with Principal Permanent Secretary Mario Cutajar to discuss common issues related to absenteeism faced by employers in both the public and private sectors on 21st February.

06. Event discusses cashless economy The Malta Chamber, in collaboration with HSBC Bank Malta plc and EY Malta organised a seminar on developments leading towards a cashless economy. The session was moderated by Dr David Zahra, Chairman of the Financial Services Business Section.

Attendees were welcomed by the President Frank V. Farrugia, who stated that the Chamber recognises the numerous opportunities and benefits at hand for both businesses and consumers in Malta, benefits based on increased convenience, safety and traceability. He also said that Malta must develop its own strategy in this respect as what works well in other jurisdictions might not necessarily work well within the realities of our local market.

The attendees were also addressed by Andrew Beane, CEO at HSBC Bank Malta plc, who spoke at length of the initiatives being taken by the bank. He stated that Malta remains one of the most cash intensive economies in Europe. He further contended that banks’ compliance and regulatory costs are bringing about a change and will make the use of cash and cheque payments less prevalent in the long term.

The event was also addressed by Emanuele Vignoli – Regional Head of Global Liquidity and Cash Management at HSBC, Grace Camilleri, Associate Partner, Banking Advisory Services at EY Malta, Michel Cordina, Head of Commercial Banking at HSBC Bank Malta plc and Ronald Attard, Managing Partner at EY Malta.

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07. Chamber President addresses agm President Frank V. Farrugia addressed the Annual General Meeting of the Malta Chamber which was held on 26th March.

Addressing members in the Agostino Portelli Hall, Mr Farrugia noted how his intention was to build on the work of his outstanding predecessors and consolidate the Chamber’s position as the leading and foremost private sector representative.

“It is my primary intention to ensure maximum focus on our core business of making policy recommendations in favour of a competitive and favourable environment for business to generate economic growth,” Mr Farrugia said.

Mr Farrugia said that upon his election, he declared that he would be seeking to reinforce the Chamber’s influence and reputational status to ensure financial viability of the organisation.

“We contributed directly to the electoral campaign by means of a special 40-page document in which we maintained our consistent positions on a variety of issues such as the protection of our country’s reputation, ascertaining a sustainable future for Air Malta, and investing in research at a national level,” he said. The same

was done ahead of the 2018 Budget.

Mr Farrugia identified two areas in which the country must remain particularly vigilant to ascertain continued economic success, namely labour market challenges, followed by preventing and overcoming attacks on Malta’s economic success.

The President also noted how Malta’s economic success was also threatened by the constant attacks on its reputation as a worthy centre for international business – particularly in terms of financial services and yachting.

Speaking about the Chamber’s consultation efforts, Mr Farrugia said that besides making direct representations with political leaders, the Chamber had been busy conveying messages also through other channels such as important national boards namely the MCESD, MEUSAC, the Employment Relations Board, Jobs Plus, Malta Enterprise, the MCCAA and various others.

Mr Farrugia also spoke about the Chamber’s contributions in national debates on subjects such as the minimum wage, and the Equality Act, among others.

Mr Farrugia moreover noted how the Chamber made very significant contributions to the economic prosperity of the nation and is generating relevant services that are

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of a very high standard. Mr Farrugia hence appealed to more members to get engaged and actively involved with the Chamber.

The complete speech can be downloaded from the Malta Chamber’s portal www.maltachamber.org.mt.

08. Serious threats to Malta's competitiveness In a Talking Point that appeared on The Times of Malta of 27th March, Malta Chamber President Frank V. Farrugia argued about the importance of safeguarding the country’s competitiveness, especially in the light of the populist proposal for a directive about work-life balance.

The President said that if the rate of increase in the cost of labour were to continue to outpace that in productivity, the country would soon out-price itself to the competition, having to face the painful consequences.

Referring directly to the proposal for a directive about work-life balance, the President said that the Chamber was deeply troubled by the European Union’s drive to legislate across the board and for all countries.

The President asked who would foot the bill for the proposals. “Because if this will be lumped on our businesses, we will certainly be giving our competitors the golden opportunity to step in and take away entire sectors we have worked hard to build,” Mr Farrugia wrote.

“We are also aware of how enticing this purely populist measure will appear to governments. But as all fellow entrepreneurs will attest, this should not be done at the cost of businesses. It will turn round to bite us, and ultimately it will be the economy that suffers,” Mr Farrugia concluded.

09.

09. Director General provides highlights of Chamber's year Addressing the Annual General Meeting of the Malta Chamber, Director General Kevin J. Borg updated members on the highlights of the main achievements and activities of the organisation’s last 12 months.

Mr Borg said that the Chamber’s membership continued to grow, as the organisation managed to attract new businesses in the past year. The majority of members were representatives of Corporate Members and the second most popular category among members was that of Individual Members.

The Chamber also included 17 Past Presidents within its numbers.

He also explained that filming for an ITV series called ‘Girlfriends’ featuring Miranda Richardson and Phyllis Logan took place at the Chamber.

During 2017, Mr Borg said, the Chamber continued to issue certificates of origin and successfully completed a Quality Management reclassification to the new ISO (9001:2015) Standard.

A total of 23 information sessions on subjects such as Brexit, Sick Leave

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management, Cashless Economy, and the Employment of Third-Country Nationals were also held since March 2017.

The Director General also shed light on the two policy documents the Chamber published ahead of the June General Election and the Budget for 2018 respectively.

Focusing on Malta’s Presidency of the European Council, Mr Borg said that the Chamber organised a three-day programme better known as COPRES (Council of Presidents), as a member of BusinessEurope.

The actual Council of Presidents meeting took place at the Chamber’s main hall and was followed by lunch in the courtyard.

The Director General also spoke about the work of the Internationalisation Desk within the Chamber and its role as part of the consortium managing Enterprise Europe Network locally.

10. Members receive training in circuit board design Twelve participants from six manufacturing member companies of the Malta Chamber, attended a course in circuit board design in April. The course, which led to the certification of the participants in the subject, was organised by the Malta Chamber Electrical and Electronics Manufacturers Executive Committee.

The IPC training course focused on the design aspect of printed circuit boards.

Although product design is not one of the main activities of Maltese manufacturers in this sector, it was felt that a good understanding of product design parameters would help businesses identify possible design solutions to overcome faults encountered in the manufacturing process.

This course was the latest instalment in a programme of work that the Electrical and Electronics Manufacturers Executive Committee established, which included the provision of relevant training opportunities for the Business Section members. The course was held within the Chamber premises.

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NEWS Internationalisation

structures to deepen trade and investment flows between our two countries. I am encouraged by your presence here today and I am sure that our meeting can only contribute to take our trade relations to the next level,” Mr Farrugia said.

The President explained how the Chamber was constantly looking for new markets and new opportunities for its members by extending its existing international network of contacts.

01.

01. Supply chain challenges – the German and Maltese perspectives The challenges related to the supply chain, as seen from the varying perspectives of Maltese and German businesses were discussed during an event organised by the German-Maltese Business Council (GMBC) within the Malta Chamber of Commerce, Enterprise and Industry on 6th February.

Armin Eckermann, Chairman of GMBC, moderated the event which delved into challenges being faced on a day-to-day basis by Maltese companies, such as transportation, logistics and the labour supply, and how they are being solved, if at all.

Furthermore, the seminar featured a case study of Seifert Systems Ltd and its experience as a German company managing its supply chain in Malta.

Armin Dullinger, Managing Director of Andreas Schmid Logistik AG was invited to illustrate the German experience, solutions and best practices.

The other presentations were delivered

by Emanuel Farrugia, Head of Supply Chain at ProMinent Fluid Controls Ltd;

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Ing. Ruben Cuschieri, General Manager of Seifert Systems Ltd and Clyde Caruana, Executive Chairman at Jobsplus.

The event, which was sponsored by the Embassy of the Federal Republic of Germany, Seifert Systems Ltd, Farsons and World Express Logistics, closed with a networking reception following a Q&A session and a factory tour of Seifert Systems Ltd.

02. Hungarian Minister for Trade and Foreign Affairs visits Chamber Malta Chamber President Frank V. Farrugia welcomed the Hungarian Minister responsible for Trade and Foreign Affairs, Péter Szijjártó to the Exchange Buildings, for a meeting on trade potential between the two countries on 23rd February.

The meeting formed part of the Hungarian Minister’s official visit to Malta.

Welcoming Mr Szijjártó, the President said that the Chamber was eager to take advantage of his presence to illustrate the potential for enhanced trade relations between Malta and Hungary.

“Our prime mission as a national Chamber of Commerce, in a small country that is dependent on internationalisation is to consolidate networks, relations and

03. Malta Chamber signs mou with Croatian counterpart Frank V. Farrugia, on behalf of the Malta Chamber, signed a Memorandum of Understanding with the Croatian Chamber of Commerce in Zagreb, as part of a Business Forum. The MOU was countersigned by Luka Burilović, President of the Croatian Chamber of Commerce, in the presence of the President of Malta Marie Louise Coleiro Preca and the President of Croatia Kolinda Grabar-Kitarović.

The Malta Chamber President said that a mutual ambition existed to continue building on the relations Malta and Croatia already enjoyed. “Today, this business forum and business delegation is clear testimony of the commitment to take our healthy relationship to the next level,” he said.

Touching on the various aspects of the Maltese economy, Mr Farrugia said that several sectors in Malta had registered growth in the past years, while other areas were proving themselves as they were being flagged for potential. He also spoke in detail about various sectors such as financial services, the ICT sector, education, as well as tourism, among others.

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and Industry of Tunis; the Tunisian Union of Liberal Professions and Malta Federation of Professional Associations; as well as the Tunisian General Union of Veterinarians and the Malta Veterinary Association.

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04. Malta Chamber committed to sustaining excellent business relations with Tunisia The second Malta-Tunisia Business Forum in six months was held on 12th March, with the aim of bringing entrepreneurs from the two Mediterranean countries together in a bid for commercial collaboration.

“The Malta Chamber is committed to sustaining and promoting the excellent business relations between Malta and Tunisia, and will continue to strive to bring businesses closer together, for the mutual benefit of both sides,” said Frank V. Farrugia as he was welcoming delegates to the Malta-Tunisia Business Forum.

“I am confident that as a result of our mutual efforts and this Business Forum today, we shall be successful in achieving our objective,” Mr Farrugia said.

The Business Forum was organised by the Malta Chamber in collaboration with its counterpart in the North African country, the Chamber of Commerce and Industry of Tunis.

Mr Farrugia referred to the previous Malta-Tunisia Business Forum which was held in Tunisia in November 2017. “This is the second time we are meeting in a Malta-Tunisia Business Forum in less than

six months, as I am pleased to welcome you to our Chamber, in reciprocation,” he said.

“In fact 26 Maltese business representatives from 19 Malta-based companies participated in a successful two-day trade mission last November. I am pleased to note that today, we have more than 150 business-to-business meetings which are planned to take place. I am confident that these meetings, which are being facilitated through the Enterprise Europe Network, will once again bring Tunisian and Maltese investors together, and result in a number of collaborations and investment opportunities for the benefit of both sides,” Mr Farrugia concluded.

The Business Forum was also addressed

by H.E. President of Malta, Marie Louise Coleiro Preca, Secretary of State of Foreign Trade of the Republic of Tunisia, Hichem ben Ahmed, the Minister for Foreign Affairs and Trade Promotion, Carmelo Abela, the President of the Chamber of Commerce and Industry of Tunis, Mounir Mouakhar and the Vice President of the Tunisian Union of Agriculture and Fishing, Mr Aljani.

As part of the same forum, Memoranda of Understanding were signed between the Malta Chamber of Commerce, Enterprise and Industry and the Chamber of Commerce

05. “The future of the world economy will depend directly on what China does or does not do” Addressing the launch of the first edition of the China International Import Expo on 12th April, Hugh Arrigo, Member of the Board of Management of the Malta Chamber of Commerce, Enterprise and Industry said that the future of the world economy will depend directly on what China does or does not do.

“Today the importance of the Chinese economy is apparent for us all to see,” Mr Arrigo added.

Mr Arrigo noted that the Malta Chamber considered China as a strong partner that provides Maltese businesses with immense opportunities on both incoming and outgoing directions, and thus was supporting the launch of the expo.

Taking the podium, China’s Ambassador for Malta H.E. Jiang Jiang, said that in the next five years, China expected to import products and services worth more than $10 trillion.

“China welcomes Malta and other countries to access the Chinese market and benefit from its growth,” he said.

The event was also addressed by the Minister for Foreign Affairs and Trade Promotion Carmelo Abela.

Head of Internationalisation Lino Mintoff introduced the event and explained the active role the Malta Chamber was taking in supporting and helping businesses participate in the China International Import Expo. cc

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CC make the headlines

The importance of treasury in FIMBank Group Treasurer at FIMBank, Michael Davakis discusses the role of treasury within an established financial institution and shares his views on some key trends.

“Treasury has a dual role to play in terms of bank performance. On the one hand, we influence the bottom line directly by making the bank more efficient.” This is accomplished by implementing sound business practices such as Asset & Liability Management (ALM) and Funds Transfer Pricing (FTP). “It means determining the optimal profile of where the bank’s borrowings, loans and investments should be, by currency and tenor, to achieve net interest income streams without sacrificing liquidity or regulatory compliance.”

“On the other hand,” Mr Davakis adds, “the Bank’s dealing room staff engages in transactions in the bond, foreign exchange and money markets to generate profit without undertaking excessive market risk in its various forms.” In summary, therefore, treasury activity has a significant impact in that it generates revenue via optimisation as well as via interaction with third parties.

“Our financial performance reflects this.

In the past, the treasury department has been one of the most profitable units within FIMBank.”

We asked Mr Davakis to elaborate on the operation of treasury, and he explained that in a regulated commercial bank such as FIMBank, a trade finance specialist, the mission of treasury can be described as focusing on the following major activities.

“First, we provide support to the bank’s business units in facilitating financial transactions. Second, we act as the bank’s window to financial markets via the access afforded by dealing and information systems. Third, as alluded to above, we manage the bank’s cash position and liquidity ratios. Fourth, we transact foreign exchange with qualifying customers. Fifth, we deal in foreign exchange, and bonds for our own account. Last but not least, we maintain the good name of FIMBank in the interbank markets.”

When asked on his appointment to his current role, Mr Davakis says that he was given the responsibility of Group Head of Treasury & Capital Markets by Murali Subramanian, CEO of the FIMBank Group, as one of the four pillars of the bank, after trade finance, factoring, and forfaiting. “Since my arrival in Malta, we have been able to implement several changes to move the treasury unit forward both qualitatively and quantitatively.” Mr Davakis points out that “internally, the first step to success is the proper functioning of our IT infrastructure and our dealing

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“Treasury activity has a significant impact in that it generates revenue via optimisation as well as via interaction with third parties.”

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CC make the headlines systems. Everything is predicated on that.”

Mr Davakis is quick to add, however, that a positive work environment is crucial and that it starts with traders—i.e. people that are properly selected, trained and motivated to perform. “Treasury team members exhibit a strong sense of curiosity, competence and commitment that, when coupled with a clear view of the balance sheet, facilitates proper decision-making.”

The treasury department is in close communication with the bank’s client relationship managers to develop crosssell ideas while servicing customers. “We are in daily contact with all business units, the cash management team as well as our colleagues in correspondent banking.”

FIMBank has benefitted recently from the introduction of FIMBank Direct, its stateof-the-art digital banking platform, and also from FIMBank becoming a member of Target2, the real-time gross settlement system. “We have an international footprint and customer base, and this diversity has made FIMBank attractive as a counterparty and more resilient to downturns,” Mr Davakis states.

A close collaboration also exists between the treasury, risk management and finance departments of FIMBank, as all three of these units have a key role to play in, respectively, managing, monitoring and reporting the bank’s activity to the regulator. The scope and depth of regulatory and reporting requirements imposed on commercial banks has risen dramatically over the last ten years due to the financial crisis and the subsequent perception of regulatory failure. This takes the form of more exhaustive data requirements, more stringent ratios, and more intrusive oversight. “In addition to market themes such as inflation vs monetary easing, political events, headline risk, or investment trends,” Mr Davakis says, “there are business trends to contend with, such as de-risking, regulation, dis-intermediation and automation to name just a few,” adding, “and I feel we are well-placed to handle these challenges due to the flexibility of our balance sheet and the technical expertise of our banking teams.”

According to Mr Davakis, despite the fact that some trading and settlement aspects will fall under the spectre of automation and could be outsourced to machines or systems, the scope for human judgement presents more value for money than ever in ascertaining mismatches, identifying opportunities and maintaining high levels of execution, especially when systems do not perform as expected. At the treasury level, team members are thus challenged to be generalists in that they must cover many products, as well as specialists in that they must excel in one or two areas. This implies a certain overlap among colleagues 86

in the unit, but also safeguards proper communication.

Mr Davakis concludes by saying that “the treasury unit will continue to play an important role for FIMBank as we implement the bank’s long range plan, and remains an excellent place to be overall in the evolving world of banking. FIMBank is committed to serving its local and international customers in Malta and abroad, and we are proud to be an integral part of that effort.” cc

“Treasury team members exhibit a strong sense of curiosity, competence and commitment that, when coupled with a clear view of the balance sheet, facilitates proper decision-making.”

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The art of advisory Strategic planning is vital for any company, and it is so important to have the right support. With that in mind, Jo Caruana speaks to David Farrugia, one of DFK Malta’s Directors to learn about this dynamic advisory firm’s range of services, and to discover why, for them, 2018 is turning out to be another milestone year.

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value to clients’ needs.

“Being of a medium size means that we have both benefits and disadvantages – like anything else. For instance, this means that we sometimes find it easier to provide a personalised and bespoke service, and offer advice. This is generally appreciated by clients because it is becoming more and more difficult to find – given the rapid pace of regulatory and legislative developments in the financial and fiscal world. We always strive to be different by offering a personalised service in a way that meets the clients’ requirements. At the same time, being a member of DFK International enables our organisation to benefit from technical assistance from member firms around the globe.”

With regards to DFK International, Dr Farrugia explains it is currently present in 93 countries around the world – from Argentina to Japan – with its global presence constantly increasing. “This is extremely beneficial in today’s globalised world, where, for instance, a client may require fiscal or corporate advice in various jurisdictions in connection with a single transaction,” he says. “Beyond that, we also benefit from the various international conferences, activities and literature (technical handbooks and guidance) that are organised and shared by DFK International on a regular basis. Our objective as a boutique advisory firm is to balance our personalised approach with the benefits of the international reach and dimension provided by our membership with DFK International.”

And, already, 2018 is proving to be quite a year for the firm. “Our organisational structure is changing rapidly – due to expansion of our service lines and also because of changes at our managerial level. We are strong believers in organic growth and we are constantly increasing our degree of specialisation by creating and enhancing our departments’ resources. When faced with the necessity of adding or enhancing new posts (due to the ever-increasing pressures to specialise) our first priority is to satisfy such new posts by promoting our staff. This enhances our continuity and ensures that our expansion progresses as smoothly as possible – by having our departments headed by individuals who are well-versed and experienced with our organisation’s core values and principles.”

At managerial level the firm is experiencing the transfer from one generation to another.

“Naturally, our aim is to execute this transfer with the same objective in mind – continuity,”

Photo by Alan Carville

he business world is extremely dynamic.

If you are operating within it, you will know that your regulatory requirements may change overnight, particularly when you consider the current international tax scenario and the ever-changing and increasing antimoney laundering requirements.

It’s as a result of all this that companies so often turn to advisors – like DFK Malta, a specialised medium-sized audit and accountancy firm that has built a sterling reputation on its ability to advise clients and help them achieve success.

DFK Malta’s history dates back to 1990, when it was known as Farrugia, Farrugia & Co. It joined DFK International (a worldwide association of independent accounting firms and business advisers) as a full member in 1998. Since then, the company has grown considerably and now provides a full range of services to various clients.

“We provide our services through three separate entities that form part of the same Group,” explains David Farrugia, who is a lawyer and a qualified accountant, and is the director of the Tax and Advisory Department within DFK Malta. “The services that we provide today reflect the requirements of a typical business in today’s world. As such our services include audit and assurance, tax services (compliance and advisory – including VAT), accounting and advisory (including payroll accounting), business advisory services, corporate advisory and support services, residence advisory and liquidation and dissolution services.”

Over the past few years, the firm has also seen an increasing interest in estate and succession planning, long-term business planning and strategic advisory. “In my role, I am principally involved in this area of advisory, together with overseeing our Corporate Services Department and International Tax queries,” Dr Farrugia continues. “In effect, my work involves advising and assisting clients with estate and succession planning, corporate reorganisation and restructuring, and tax advisory.”

He explains that, these days, clients are increasingly aware of the opportunities that are available and are generally becoming more interested in the benefits of strategic planning and estate planning in such a fluid and competitive business environment. “This is one of the main drivers behind the change in the way that we are perceiving our role in the sector. We are no longer expected to complete tax returns, VAT returns, and prepare audited financial statements without providing added-

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“Our objective as a boutique advisory firm is to balance our personalised approach with the benefits of the international reach and dimension provided by our membership with DFK International.”

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Dr Farrugia says. “Hence our current changes will involve individuals who have been employed at various levels of our organisation – in the vast majority of cases starting off at the lowest echelons. It is by working and facing the clients for every type of situation that a person can really know how the requirements of the clients and the requirements of our organisation can be met.”

The firm is also moving into refurbished offices, in Balzan. This was a project that meant a complete overhaul for DFK Malta – including re-tiling the whole floor and re-designing the reception area, office spaces and boardrooms.

“As expected, these things invariably always take longer than originally expected and we are still in the finishing stage,” Dr Farrugia says with a smile. “However, even though the project is still not finished, we are sure that the efforts and the costs will be worth every penny.

“After all, our workspace is where we spend most of our daily time – and it is only fair and equitable that all of us enjoy a pleasant environment. Moreover, we always strive to offer the best to our clients and, whilst we acknowledge that our location at De Paule Avenue in Balzan is excellent, we were in need of giving our office a fresh look and a better layout to reflect our clients’ needs.”

And there are other reasons for DFK Malta to be looking positively towards the future.

“Firms in our sector enjoy the fruits of a healthy financial services sector in Malta, which in turn benefits from a regulatory and legal framework which can be described as thorough and exhaustive, yet at the same time flexible and dynamic,” Dr Farrugia says. “For instance, fund structures and wealth management services benefit from an innovative legislative framework that is also fully compliant with EU legislation, together with an abundance of experienced professionals.

“Moving forward, we hope Malta can continue to build on its reputation as an investor-friendly jurisdiction by enhancing the cooperation between all the stakeholders involved in this sector. This will provide a precious opportunity to all firms in our sector to keep abreast of the very exciting yet challenging times we are currently facing.”

Finally, Dr Farrugia looks to the future of the organisation. “Last year DFK Malta embarked on a reorganisation of our Corporate Support Services Department and our Tax Department.

This was undertaken with a view to align the operations of these departments with the requirements of our foreign clients and local clients that seek specialised tax services (both corporate and individuals). We are now at the next step – that of supplementing these main departments whilst also enhancing our audit function due to the changes at the managerial level that were discussed earlier. Of course, having a freshly-refurbished office with a new design will hopefully make it even easier to accommodate these changes whilst at the same time helping us to look forward to the rest of 2018 and the coming years!” cc 89

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The Point Shopping Mall – celebrating eight years of growth and success Since opening its doors in 2010, The Point has become Malta’s favourite shopping destination for locals and tourists alike.

It occupies a special and unique space in Malta’s shopping environment, attracting 2.5 million local and overseas visitors annually to a luxury mall of exclusive shops and eateries.

The Point, in fact, enjoys a unique status as Malta’s retail jewel in the crown.

Exuding a stunning five-star ambience, The Point plays host to the largest concentration of exclusive brands in Malta, all conveniently located under one roof.

Its 15,000 square metre mall also provides space for entertaining events and promotions of all types, which are continuous crowd-pullers that create sustainable growth and brand popularity.

Strategically located in the heart of Sliema’s bustling centre, The Point offers a dynamic mix of the latest fashion, beauty, health, and lifestyle stores for convenience and shopping pleasure. Its extensive array of food outlets has been hand-picked to appeal to a cross-section of tastes and budgets.

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Ample parking with 24-hour security completes a package that is the last word in comfort, service and convenience for The Point’s visitors.

“The Point is determined to continue to build on its successes. We have created a must-visit shopping destination that is unique within Malta and we look forward to continuing to provide a vibrant and contemporary shopping experience to the public,” says Chief Executive Officer Edwin Borg.

Mr Borg adds “when customers visit The Point they’re looking for something that goes well beyond the traditional shopping experience. The retail world is challenging, but those challenges also present opportunities for us to adapt and grow. The market will continue to evolve and as we see it, it will be those shopping destinations that can evolve along with it that will survive and thrive.”

A philosophy of putting customers first has always guided The Point’s efforts to create a unique shopping destination attraction in Malta. And it is a destination that enhances local quality of life, stimulates economic activity and contributes to Malta’s famous community life and culture.

Malta takes pride in nurturing an environment that is clean, safe, exciting, fun and vibrant to live in and these cultural values are personified by the upmarket surroundings of The Point.

The island’s most prominent retailers also view The Point as a safe haven, and the demand for leasing space continues to increase year on year.

2017 has also shown consumers in a more buoyant mood with footfall at The Point rising from the previous year; this reflects a growing positive sentiment among our shoppers in experiential shopping.

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CC make the headlines Despite more people shopping online, online shopping simply cannot compete with the total shopping experience a good mall offers. Once again, The Point has proven to be resilient and adaptable to change. Our marketing team is consistently coming up with new ways to attract shoppers through our doors with initiatives such as promotions, special events, the Advantage Card loyalty programme, and a more personalised customer-service approach.

Long gone is shopping at the mall solely a functional purchasing experience. Our shoppers are the beneficiaries of the total experience in which they shop, dine, socialise, play and participate in the various activities.

We found that socialising is a very important part of their experience at The Point, so we take special care to tailor our activities to accommodate our shoppers’ need to use the mall environment to bond with their children, family members and friends.

The key is to continue to encourage dialogue with our shoppers. By better understanding their behaviour, we can continue to build a holistic picture of our customers and tailor our offering accordingly.

Success brings both challenges and expectations of consistent, high-level services so there is no relenting when it comes to implementing our programme of continuous improvements.

To celebrate its eight-year anniversary The Point has proudly unveiled its brand new look and feel after completing a soft refurbishment project to offer a more contemporary and comfortable environment to our shoppers.

Edwin Borg says that The Point’s unique selling point is its comprehensive mix of stores and brands, with a balance of offerings that caters for every age group. The Point hosts family retailers such as flagship store Debenhams, Marks and Spencer and Costa, alongside designer boutique stores like Harmont & Blaine, Lacoste, Guess, Tommy Hilfiger, Massimo Dutti and Tru Trussardi.

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More affordable, trendy, fast fashion brands like New Look, River Island, Berksha, are also available together with sportswear retailers like Adidas and Nike. The sleek stylish design of The Point’s current new look was especially selected to support the best showcasing for the exclusive mix of brands offered in the shopping mall.

“The project, which began last March, Mr Borg reveals, “includes the upgrading of the lifts and escalators across all floors, plush seating areas, ambient lighting, clear, new signage, enhanced entryways, and landscaping.”

The rebranding project has also seen the adoption of a unifying colour scheme where an easy on the eye, serene sea blue has been paired with harmonising cream shades that emphasise the atmosphere of calm, space and luxury within The Point. The result, says Edwin Borg, “is a contemporary upscale interior that is as attractive as it is welcoming.”

Stuart Henry, Creative Director of JUSTSO, the retail design agency behind The Point rebrand says “we drew inspiration from the warm colour palette of the island, with the blue of the Mediterranean and a reference of the cream used in the unique architecture of Malta. Based on the brief, we needed to provide The Point Shopping Mall with a stronger sense of its own branding and a solution that would help them emphasise the strong sense of community at The Point.”

With the renovation works now completed, The Point is shining brighter than ever before, and the new look mall is garnering extremely positive notice.

“We are excited to see the refurbishment received well, The Point CEO Edwin Borg shares, “and look forward to continue providing an innovative and vibrant shopping experience to our customers.” cc For further information write to E: info@thepointmalta.com

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Personalised service for 15 years and counting In recent years the world of investment has been subject to evermore stringent regulations and challenges. Here, Lewis Pitcher talks to Jesmond Mizzi about his 15 years in the changing industry, adapting to new challenges and the importance of maintaining personalised service through it all.

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he investment industry is an evergrowing one in Malta – recent statistics issued by Finance Malta put the total amount of money domiciled in Malta at around €10 billion and climbing. Due to this, it is understandably an industry with serious competition in all aspects. 2017 marked 15 years in business for Jesmond Mizzi Financial Advisors (JMFA) and 15 years for Jesmond Mizzi himself as their public face. Over those years, the company has gone from strength to strength to become one of the country’s leading investment firms, with a specific focus on providing the most personalised services and products on the market.

Established in 2002 in South Street, Valletta, the company started out with only a handful of people on board, all veterans of the financial industry. Other than Mr Mizzi himself, it was comprised of John Catania, experienced in the banking sector among others, and Dr Mark Azzopardi, a specialist in financial risk management. Early on, the company acquired the client base of Paul Azzopardi, a well-known stockbroker, who Mr Mizzi attributes with the firm’s faster growth rate at the start: “it immediately made our client base numbers look bigger, and because of this we were able to offer better service from the start.”

It was this that attracted the attention of the investments wing of the Atlas Group, leading to a merger of the two companies.

Owing to the merger, the company expanded to around 16 people, and the head of Atlas Investments, Jean Gaffiero, joined the team as an investment consultant and shareholder, positions which he holds to this day.

Given the number of changes in the last 15 years, including the recent rebranding, it would be understandable for the company’s

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philosophy to have changed over the years, however Mr Mizzi doesn’t think this is true in their case. “The philosophy has always been what we call a personalised service. We work very hard to keep our staff turnover minimal.

Firstly, there are four shareholders who are active in the business – we meet clients, plan the way forward for the company and so on, which gives us a lot of stability. However, our advisors and back office teams are also people who have been with the company for a long time.”

Mr Mizzi firmly believes that this stable workforce has allowed the company to maintain excellent personal relationships with its clients, and he attributes a portion of its growth to client referrals, whether from friends, family or even colleagues. Regular appearances on national television and other media, giving information on markets, financial issues and investing in general also help with building this level of trust. He adds, with a smile, that “a lot of people stop me in the street. I don’t know who they are, and even if they aren’t our clients, they tell me they appreciate the information we give them. I don’t get paid to go on TV – we’ve spent money over the years informing and educating our clients.”

The personal relationships also extend to the providers the company works with. JMFA are currently the official representatives of Janus Henderson Group in Malta, one of the world’s largest asset management companies, in addition to having close working relationships with giants such as Pictet, Legg Mason and Invesco among others. In fact, Mr Mizzi lists these relationships, and the influence the company has had on international investments through them, as one of the landmark achievements in the history of the company: “despite the fact that these are very big companies, we have managed to establish a good rapport, in that we can discuss with them what we feel we could recommend to our clients so that they can come up with the products which they have not only sold locally but have also worked on in other European capitals.”

Two other major achievements that Mr Mizzi speaks proudly of are the successful move into being sponsoring stockbrokers for companies such as BOV and ME Direct, a market “dominated by established, family companies with legacy and proven track records,” and the launch of the company’s flagship fund, the Merill SICAV. From its establishment in February

2016, assets have grown from an initial capital of €14 million to nearly €65 million in assets under management. For Mr Mizzi, this is a product which he believes can help take the strain off investors, particularly with regards to regulations introduced by the regulators with MiFID II. Under current regulations, on-boarding information is now an ongoing process, meaning that everything must be updated on a more frequent basis, a process Mr Mizzi says is necessary but also “certainly more onerous” when dealing with clients. However, through the société d’investissement à capital variable (SICAV), the company will be able to spare clients from the bulk of the added hassle. “For instance, if a client had 10 different funds, we would have to keep track individually and inform clients accordingly, whereas in the case of SICAV, we would do that but only have to report on the SICAV. This makes our lives easier on the reporting side.

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“The philosophy has always been what we call a personalised service. We work very hard to keep our staff turnover minimal.”

Photos by Alan Carville

but there are legal and regulatory structures to regulate how we operate the funds, where there are a lot of checks and balances to make clients feel comfortable that where they are putting their money is safe, well-regulated and well-managed. This gives us a better avenue to continue to offer the service, not only to highnet-worth clients, but also to clients who may have around €10,000 or €20,000 to invest.”

The Merill SICAV, while a key part of future plans for JMFA, is not the only target Mr Mizzi sees going forward. Expansions into the pensions sector, both individual and companybased, and a promotional drive to encourage more regular investment to tap into the large cash deposit base of local banks are two areas the company is looking into. One endeavour Mr Mizzi speaks highly of is the company’s pioneering step into the prospects market, establishing itself as one of the first local companies to venture into the sector. Prospects bonds are seen as an alternative to raising money traditionally through a bank or similar APRIL/MAY 2018

service, instead generating capital through private sources, and are available to companies of a range of types: “so far we have assisted two companies within this market – one relatively new but very dynamic called Anchovy, an up-and-coming digitalisation and marketing company. The company issued a prospects bond, and we raised the money through our base. The second company, Orion, is a longestablished business that wanted to enter this market. This is an area that’s not only attractive to small businesses but also to issuers, and there is a lot of potential for companies to come to the local market, so we want to grow that business and will be adding resources to the current department.”

However, Mr Mizzi also admits that one of the greatest challenges limiting growth in all of these areas are human resources. On top of standard difficulties in finding talent, such as language barriers with front-of-house staff and balancing experienced people with up-andcoming prospects, there is also a major issue

of competition. “We are competing with the likes of the gaming industry and back offices.

Because of fiscal advantages, they can possibly offer better employee packages. Despite this, we now have a complement of 30 staff members. The growth could have been bigger had we found the right resources. Now we’re looking overseas – our asset management team is led by a foreign person and we are continuing to look overseas to provide a continuously better service to our clients.”

The company looks to only grow going forward. Given the wide-ranging expansion plans that Mr Mizzi outlines, both internationally and locally, it can be expected that the company’s operating scale will only increase in the future, along with its international ambitions. Recently, JMFA stated a target of €100 million in the Merrill funds, which the company hopes to achieve within the next few years. As for the reason behind this target, Mr Mizzi simply states: “that is when people start talking to you seriously overseas.” cc 95

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Binja Laparelli, Macina and the Coach House: the remarkable winners of the Din l-Art Ħelwa Awards for Architectural Heritage

Photo by Cyril Sancereau

Last February, three noteworthy architectural projects on the Maltese islands were recognised for their outstanding contribution to local architectural heritage, via the XIII edition of Din l-Art Ħelwa’s Awards for Architectural Heritage. Sarah Micallef meets the architects behind the projects, discovering what went into them and why they are deserving of the title.

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he raison d’être of this annual competition is to showcase and reward projects which make an outstanding and significant contribution to architectural excellence within the Maltese context, with a special focus on regeneration, re-use and conservation,” explains Maria Grazia Cassar, Executive President at Din l-Art Ħelwa and Chairman of the Jury of the Din l-Art Ħelwa Awards for Architectural Heritage.

“It is with pride that I express satisfaction at having witnessed great strides in the achievement of such objectives in the various projects that have won this award over the years,” she continues, “and I daresay that this competition has contributed in a significant manner to the positive appreciation of the value of Malta’s built heritage.”

The competition is split into three categories (Categories A, B and C), as well as a Silver Award, which is awarded to the best project over all the categories.

Category A, Ms Grazia Cassar explains, is for Major Regeneration Projects, which refers to “projects which have brought about a significant impact in improving the quality of the urban environment.” This category is intended for medium to large-scale projects which have impacted the urban fabric of an old town or city in a positive way, and have added tangible benefits to the local community. This year’s prize went to Bezzina APRIL/MAY 2018

& Cole Architects & Civil Engineers for Binja Laparelli, which houses the Central Bank of Malta.

Category B meanwhile, is for Rehabilitation and Re-use of Buildings, in other words, “projects which have sought to rehabilitate historic buildings and also re-define their uses”, as well as “projects which emphasise re-adaptation and re-utilisation to the needs of contemporary society, while respecting the historical memory of that particular building or structure,” she says. The projects within this category would go beyond a strict definition of restoration to their original form and use, seeking a positive synergy between the historic fabric and modern interventions, an example of this being St James Cavalier Centre for Creativity in Valletta. The prize this year was awarded to Edwin Mintoff Architects for the Macina project.

Finally, Category C applies to Restoration and Conservation Projects, which include “projects which are intended to achieve comprehensive restoration and conservation so far as possible in conformity with their original physical state and carried out on the basis of scientific restoration methodology.”

This prize, along with the Silver Award signifying best project, was awarded to the Coach House by Perit David Drago of Architecture Project.

“Our urban fabric is dissolving in a cacophony of architectural additions which cannot even be called architecture,” Ms

Grazia Cassar quips, speaking of Din l-Art Ħelwa’s message through these awards.

“Architects need to adopt an approach which introduces an architectural vocabulary that unites the fragments of our historic buildings, thus creating a pleasing ensemble. Through these awards, we wish to highlight best practice and achievements in such projects which should be an example to all,” she maintains.

Asked for her thoughts on the future of the built environment in Malta, and local architectural heritage, Din l-Art Ħelwa’s Executive President affirms that not enough consideration is being given to Malta’s traditional and historical built environment.

“Perhaps, in the haste to establish itself as a modern country, Malta has not identified itself enough with the architectural patrimony which has harmoniously developed over the years,” she laments, pointing out the paradox that while good work is being done on the restoration of our fortifications and monumental buildings, the smaller, humble buildings which form our towns and villages are falling victims to demolition.

“It is not enough to save a doorway, niche or balcony. Unless urgent action is taken, we will be left with a soulless architectural environment which does not augur well for the future. Through these prize-winners’ projects, we hope to show that there are better, alternative ways to move forward,” she maintains.

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Category A (Major Regeneration Project) winner:

Binja Laparelli | Bezzina & Cole Architects & Civil Engineers “Binja Laparelli, The Central Bank of Malta’s new knowledge centre, is intended to serve the Bank, other financial institutions, as well as the interested public. The project involved the demolition of the previous unfinished ex Malta Police Social Club, and the design of a multi-purpose space that fitted harmoniously into the central volume of the St James’ Counterguard, alongside the passageway connecting it to the newly refurbished Triton Piazza and Bieb il-Belt. The judges felt that this new building has successfully achieved its scope within the brief, while at the same time respecting the context of the fortifications. Of particular note was the discreet rational approach, yet imaginative design, in the stone screen created on the Bank’s façade, and the integration of the design elements to complement the exterior walkway, and the historical structures.” – Maria Grazia Cassar, Din l-Art Ħelwa

With the owner and occupant of this building being the Central Bank of Malta, partner at Bezzina & Cole Architects Keith Cole draws on the main objective of the institution – that of “maintaining stability of the financial system” according to the Bank’s own website – to illustrate the ethos behind the project.

“Central Bank of Malta is required to build and maintain an outstanding knowledge base, and Binja Laparelli is intended to supplement and support this research and knowledge transfer function of the Bank,” he says.

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The main spaces of this new building, the architect explains, consist of a foyer, a research library, a training and conference centre, an IT department, archiving facilities and servant spaces. “For national bodies like the Central Bank of Malta, establishing standards is both statutory and routine.

This underlying disposition elicits quality and professional responsibility in the Bank’s staff and in those who serve it. Since all the Bank’s properties reflect this kudos, our firm determined that the design and execution of Binja Laparelli could not be an exception,”

“Our best heritage is one of the indicators confirming that we have the capacity to make this island a better place to live in.

Our worst heritage implies that we also have the capacity to push this island towards oblivion.

As always, the choice is ours.”

- Keith Cole, Partner, Bezzina & Cole Architects & Civil Engineers

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CC DESIGN TRENDS Perit Cole continues, maintaining that it is the employer that originates and moulds the initial brief. “This brief was further expanded by the project team led by the Employer’s Administration Department and including our firm, together with MTS, a firm of building services engineers. The brief is further influenced by the PA’s planning regulations and, in this case, by the Superintendence of Cultural Heritage, among others,” he explains.

Within Bezzina & Cole Architects, the architect continues, “the design architect drew together this brief and distilled its spirit into a contemporary architectural solution, which serves the employer and the user both functionally and aesthetically, whilst respecting the formal and historic context of St James Counterguard.”

Speaking of the team’s design goal, Perit Cole outlines the creation of a sense of place upon arrival, which would be carried on into the interior of the building. “The exterior of the building reflects its context within the fortifications, with a tapered hardstone brise soleil reaching down to the depth of the 1980s excavation. A bronze tubular bridge connects the public passageway to the private realm,” he says, explaining that functionally, this bridge serves as a security antiporta. “As an architectural mechanism, the bronze enclosure draws attention to the main entrance. Walking through the enclosed bridge provides a further experience in that it heightens the element of surprise upon entry into the foyer, high above the floor. A staircase wraps around a twisted lift tower and leads one down to the foyer floor,” the architect maintains.

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CC DESIGN TRENDS “The hardstone exterior walls have been drawn into the building and surround the foyer to suggest a courtyard, this being a further semi-private space in this sequence of ceremonial transitions towards the research library and the training centre and conference hall. The wall between the foyer and the library can be opened up to extend the foyer’s space and function potential, when necessary,” he continues.

Meanwhile, the training centre provides a clear 300sqm space which can be divided into four halls and meeting rooms of various sizes. “The interior design is user-focused, modular and flexible in order to adapt to the required training facilities or high-level Eurosystem meetings as necessary,” Perit Cole says. Moving on to the research library, which provides areas for reading, work stations and archives in multiple levels, all within visual contact, the architect explains, “this arrangement reproduces the quiet but purposeful character of libraries. The vertical arrangement of the floors and a long window reaching down into the depths of the space add light, interest and drama.”

“Albeit not exclusively, light and matter are two symbiotic constituents of architecture,” continues Perit Cole, as he goes on to explain that in the public areas, the predominant material selected to reflect light off the walls was local hardstone. “This material maintains the experience of place. The hardstone panels reflect the natural light prevalent in Malta and suggest that this building is located within the fortifications of Valletta.” And since the building is enclosed on three sides

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by fortification walls, the architects opted to introduce daylight through an array of skylights above the top office floor and foyer, while the east wall provided a further source of light and visual contact with the exterior.

Looking back on the state of the building before works started, the architect affirms that the site within St James Counterguard consisted of excavated fortifications which contained the unfinished shell of a hall or theatre-like structure, built in the 1980s.

It was later in the 1980s that the Central Bank of Malta acquired the use of St James Counterguard, and as the Bank transitioned from an independent island institution into a respected partner within the Eurosystem, it developed these disrupted sites into premises to support its expanding services and responsibilities.

Speaking of the regeneration process, Perit Cole emphasises quality and durability as prime factors, particularly given the client: a national institution which is charged with maintaining the financial stability of the islands. “The main challenge to development was the inaccessibility of the site. It was surrounded by the bus terminus and pedestrian route along the west wall, a deep ditch bordering the east wall and twometre wide barrel vaults to import building materials. This predicament influenced the method of construction. Hence we opted for prefabricated building elements to facilitate delivery and construction,” he explains, adding that both the inaccessibility of the site and the required assurance of erecting a highquality building required longer timelines.

As a firm, he continues, the achievement they are most proud of in relation to this project is that with the support of the Bank, they steered its vision into a well-rounded architectural solution – “on the one hand a functional building, efficient in the delineation of served, shared and servant spaces, and on the other hand a balanced aesthetic, symbolising the Bank which it houses and adopting forms and materials which respect the historical context and local craft.”

Outlining the firm’s raison d’être, Perit Cole goes on to state that for a project to be truly successful, the architect is required to draw together a comprehensive brief which addresses the employer’s intentions and needs, whilst at the same time addressing the context within which it is built. “Our main focus is to satisfy this brief in the interests of both the employer and the user. A further accomplishment is to push the boundaries of design and execution to seek a future-proof solution, thus providing a sustainable longterm investment which flexibly permits future change,” he asserts.

Finally, divulging his take on the future of the local built environment and architectural heritage, the architect maintains, “our society needs to collectively embrace the responsibility of stewardship of the environment, both rural and urban. Our best heritage is one of the indicators confirming that we have the capacity to make this island a better place to live in. Our worst heritage implies that we also have the capacity to push this island towards oblivion. As always, the choice is ours.”

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Category B (The Rehabilitation and Re-Use of Buildings) winner:

Macina project | Edwin Mintoff Architects “This early 17th century building, originally housing the mechanism for ship mast fitting known as a ’macchina’, was rehabilitated and given new life as a guest house with ancillary facilities, including a pool, bar, restaurant and cafeteria. It was a complex project, both technically and philosophically, and the jury were impressed by the quality of the finishes and design choices. Despite creating the necessary luxury, the overall concept retained the military, functional feel of the building’s previous use, especially in the staircase and the courtyard. We felt that this was an example to follow, in the rehabilitation and re-use of military buildings, and were unanimous in our decision to award the Prix d’Honneur for the Rehabilitation and ReUse of Buildings to Edwin Mintoff Architects for the Macina.” – Maria Grazia Cassar, Din l-Art Ħelwa

“The structure known as Macina forms part of St Michael’s bastion, a critical part of the city of Senglea’s landward defence,” explains Edwin Mintoff, architect and founder of EM Architects. Utilised for ship mast fitting from the early 17th century, the bastion originally housed a machine made of hardwood, which was later changed to steel in 1864. By 1927, however, the machine was dismantled in favour of a floating lift crane, and the Macina has subsequently been used for a variety of purposes including the Admiralty’s Head Office, a Trade School and a political party headquarters. More recently, it has been used as an exhibition space for special events.

“EM Architects’ design was based on the desire to preserve and enhance this historical building and restore it to its former glory,” Perit Mintoff, maintains, going on to explain that this was primarily analysed with regards to the site location and surrounding amenities, so as to determine how the project could contribute to the holistic urban APRIL/MAY 2018

regeneration of the Three Cities. “It was also of primary importance that the building was finally protected and restored so that it could be enjoyed for years to come. The new layout was designed to maximise the traveller’s engagement with the history of the building and the culture of the surrounding area,” he says.

After years of disuse and continuous exposure to rain, wind and sea-spray, when it came to the commencement of construction works, the building was badly in need of repair, the architect recalls. “The existing coralline and franka limestone was found to be deteriorated in certain locations, and had to be replaced, and certain areas which had been plastered over had to be cleaned,” he explains. Apart from this, as is common with many historic buildings in Malta, numerous modern alterations and additions were also discovered, which were constructed using methods and/or materials which are incompatible with the older fabric.

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“Malta is well endowed with a stock of remarkable structures which are a product of its unique history and culture. The elegance of these buildings, reflected in different styles of architecture, is a living tribute to the ingenious Maltese craftsmen and skilful artisans of previous generations.”

- Edwin Mintoff, Founder, EM Architects “Many of the post-war repairs were lowbudget and make-shift, like many of the first and second floor ceilings. Certain areas of the existing structure, in particular those which were repaired following the damage caused in World War II, were found to be structurally unstable and impossible to repair. A portion of the building had also been damaged by an arson attack and also had to be replaced, as the fire had severely decreased the area’s structural integrity,” maintains Perit Mintoff.

The design of the building began with the objective of bringing the history of the building and the surrounding area to light: as a shining beacon of Senglea’s proud history defending Malta’s shores from attack.

Looking back on the start of the process the architect explains the building’s layout.

“The structure’s original layout consisted of numerous large vaults constructed within the bastion over three floors. The large office block on the left hand side of the main building originally had four large rooms over each floor with a rear backyard. The second storey, which had a larger floor area, had all its halls roofed by semi-circular vaults, which were supported by thick walls. The original gun platform of the bastion covered the entire area of the roof building,” he explains.

Through the implementation of a ‘new use’ within the existing structure, that is,

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through the creation of a guesthouse and ancillary facilities, life was well and truly breathed back into the beautiful, but at the time derelict, building. “The concept behind all design decisions was to focus on the culture and character of the Cottonera area, so as to satisfy the increasing demand in cultural tourism. The building’s new use was planned so as to cause the least changes to the building,

whilst simultaneously mirroring the original interior and exterior appearance,” Perit Mintoff says.

Indeed, he continues, all modern interventions were designed so as to be visually distinguishable from the remaining original masonry, in particular the reconstruction of the vault damaged in World War II, the introduction of a new pool and the creation of a bridge and lift connecting the Macina and the Annex Building. “The main intervention within the structure was to join the existing two parts of the building, the Macina and the Annex, through the creation of a panoramic lift and a lightweight bridge. The biggest design challenge faced was that of creating an intermediate level within the existing building and connecting the annex and the Macina building, whilst simultaneously respecting the existing building dynamic as well as modern European structural regulations,” he maintains.

Now, the façade has been enhanced through the introduction of black apertures, which add an additional dimension through a contrast and shadow effect with the existing stone façade. The damaged vault was reconstructed using concrete, so that the intervention would be visually distinguishable from the remaining original masonry, which was cleaned and repaired.

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CC DESIGN TRENDS

The façade of the building, meanwhile, was expertly restored with most of the stone being retained and only a small portion of the lower courses being changed, using chiselling techniques and fair-faced finish masonry elements.

Asked to identify the firm’s biggest achievement in relation to the project, Perit Mintoff asserts that the most important objective within the design was to preserve and enhance this historical building, and one of the first design decisions was to make sure that part of the building would be open to the public, and not just to hotel guests. Indeed, the roof, or gun platform level, is now utilised as a restaurant which is open to the public.

“Through EM Architects’ design, the structure has been brought back to life and restored with new purpose, to serve the Senglea area in a different way. The historic structure now consists of a guesthouse with ancillary facilities which include a pool, bar, restaurant and cafeteria, and a future spa, serving to aid in the urban regeneration of the Three Cities, increasing employment, tourism and cultural activities within the area. For us, to see a structure which lay in a state of disrepair and disuse for so many years finally open its doors to the public in August last year was our biggest achievement,” he says.

Speaking of the Din l-Art Ħelwa Award, the architect maintains that having worked on the project for 10 years, every decision, even related to structural interventions, was planned so as to respect the existing building.

“We hope that the Macina building serves as an example and perhaps a benchmark for the restoration and re-design of other historic APRIL/MAY 2018

buildings in Malta,” he maintains.

With an ethos which seeks to “create sustainable development in harmony with nature, to give life to a building to make it both an effective and representative space, and to produce not just an aesthetic design but one which enhances the user’s experience,” Perit Mintoff declares the need to safeguard Malta’s architectural heritage as one that is of utmost importance.

“Malta is well-endowed with a stock of remarkable structures which are a product of its unique history and culture.

The elegance of these buildings, reflected in different styles of architecture, is a living tribute to the ingenious Maltese craftsmen and skilful artisans of previous generations,” he affirms, adding that the

need to safeguard this is not only related to the emotional appeal expressed in terms of beauty and aesthetic value, but also because the buildings of Malta confer a unique character and identity which retain contact with the past.

“The future of the built environment and of our invaluable local architectural heritage depends on our ability to develop urban renewal proposals which ensure the livelihood of our historic fabric. This is only possible if the heritage is conserved in an active rather than passive manner,” he warns, calling on the need for “a creative vision through which contemporary activities are accommodated within a historic structure with the objective of being respectful of the ‘old’ but conscious of the ‘new’”.

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Category C (A Restoration and Conservation Project) winner:

The Coach House | Architecture Project “Despite the many developments in the science of restoration, and growing awareness of the importance of our historic buildings, we are sadly witnessing a spate of destruction of old and traditional buildings, the scale and rate of which is perhaps unprecedented in our country. We therefore greatly admire clients who are willing to take on a restoration and rehabilitation of private non-commercial residential projects. This of course also requires the judicious approach of an architect who responds to the challenge in a most imaginative, yet sensitive manner. In the Coach House, such a challenge lay in the restoration of the fabric of a humble yet historic property, which was a one-storey service building attached to Palazzo Bosio in Balzan. The intervention and extension upon the existing building consisted of a stone volume hovering above the existing fabric. The limestone façade is detailed to mimic a weaved pattern, creating a surface of changing shadows echoing the irregular surfaces of the historical walls below, whilst reducing the impact of the new-built volume. This intervention, together with the restoration and conservation of the existing structure has in the opinion of the jury, earned the Prix d’Honneur in the Restoration and Conservation of a building. The Silver Medal was also awarded to the Coach House for its ability to create a harmonious intervention with the simple historic fabric of the existing farmhouse without overwhelming the existing historic buildings and their traditional construction.”

A Grade 1 Scheduled property located in the heart of Balzan, the site of the Coach House was historically occupied by a series of farm buildings dating back to the 15th century, explains David Drago, founding partner at Architecture Project. “The palazzo was built in the 18th century for Vincenzo Bosio, Commandator of the Knights of the Order of St John, as his own residential quarters, absorbing these rural farm structures into the palazzo’s baroque layout,” he says, maintaining that the Coach House is thought to have primarily served as a service building intrinsically connected to the adjacent Palazzo Bosio.

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“Mons. Gwann Dimech – a respected historian who researched and published studies on prominent members of the Order of St John – in his book Ħal Balzan – Ġrajjietu sal-1999 – dedicates a chapter to palaces and other historical houses in Balzan. According to Mons. Dimech, Vincenzo Bosio, who was at the time a prominent Knight of the Order of St John, made the palazzo his residence in 1780. The book specifically refers to the entrance of the Coach House on the right hand side of the square, as the entrance leading to the area where animals – and the coach – used to be kept,” he continues.

Photos by Cyril Sancereau

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CC DESIGN TRENDS Composed of an outer set of buildings adjacent to the palazzo, the Coach House features a number of rooms on the ground floor – including a large mill room and an adjacent room with corbels – which have ceilings that exceed four metres in height.

“Various features within the rooms clearly show that these rooms were used as a service building, and more specifically, as an area where animals were kept. One of the main rooms within the upper floor of the Coach House originally formed part of the palazzo,” Perit Drago affirms, adding that the main aim of the project was to preserve the functional nature of the pre-existing building while turning it into a home and accommodating the requests of the new owners.

Looking back on the start of the project, the architect describes the state of the original property as dilapidated, with most apertures missing, stone walls lacking mortar joints, and severe biological growth due to the humid environment resulting from the lack of use and maintenance. “The welldefined approach to the project was, first of all, the restoration of the fabric of this humble yet historic, valuable property,” he says.

The architect explains that during the first phase of the process, a number of interventions were carried out to ensure the conservation of the spirit of the place. “This first stage entailed securing all dangerous parts, the removal of elements which conflicted with the authentic organisation of space or with the clarity of architectural forms, and the restoration of architectural details like cornices, mouldings, arches and corbels, considered important for a holistic interpretation of the historical context of the building,” Perit Drago explains. To then turn what used to be a one-storey service building into a home, he continues, “an extension was

Photo by Cyril Sancereau

grafted on the perimeter wall of the pre-existing structure, separated from the historical fabric, clearly distinguishing the intervention from the existing and therefore breaking down the resulting elevation in harmonious components.

The facades are built of limestone dressed like a weave, creating a surface of changing shadows which echoes the irregular surfaces of the historical walls below, whilst reducing the impact of the new-built volume.”

Looking back on the process, he considers one of the main challenges to have been the location of the building itself. Apart from this, the programme also responded to the pressures on the site from both adjacent developments and the historical connection with Palazzo Bosio.

Photo by Cyril Sancereau

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“To preserve our unique built heritage, we have to constantly find new ways of making it ‘accessible’ while respecting it. We are careful to avoid preservation as an ideological battle driven by nostalgia, just as we resist the temptation for easy and immediate financial gain of insensitive developments.”

- David Drago, Founding Partner, Architecture Project

Photo by Julian Vassallo APRIL/MAY 2018

CC DESIGN TRENDS

“Our urban fabric is dissolving in a cacophony of architectural additions which cannot even be called architecture. Architects need to adopt an approach which introduces an architectural vocabulary that unites the fragments of our historic buildings thus creating a pleasing ensemble.”

- Maria Grazia Cassar, Executive President, Din l-Art Ħelwa “Different design solutions were adopted to address these pressures. The apertures in the new extension, for instance, are few and recessed, reducing the impact of sun radiation but also respecting the typology of the pre-existing building and allowing privacy of both the neighbouring properties and of the occupants,” he maintains. A new self-supporting staircase conceived as an independent sculptural structure was also built from solid steel plates to connect the old and new, and their different levels.

Speaking of Architecture Project’s biggest achievement in relation to the Coach House project, Perit Drago maintains that with a programme that allows for the internal interventions to respect the pre-existing volumes, thus enhancing the qualities of the historical fabric with minimal intervention, “the biggest achievement is this balance established between the respect of the original volumes and modern amenities, and the successful combination of contemporary architectural elements in a historical context.”

As for receiving the Din l-Art Ħelwa award, the architect maintains that restoration alone is sometimes not enough to preserve a building and inject new life into it, especially in today’s highly-demanding socio-economic environment. “To preserve our unique built heritage, we have to constantly find new ways of making it ‘accessible’ while respecting Photo by Julian Vassallo

Photo by Cyril Sancereau APRIL/MAY 2018

it. We are careful to avoid preservation as an ideological battle driven by nostalgia, just as we resist the temptation for easy and immediate financial gain of insensitive developments,” he says, adding that the Coach House is the result of an approach which takes into consideration all these elements and finds new solutions to mediate between them through design.

Finally, speaking of the firm’s raison d’être as a whole, the architect and founding partner likens their vision to that of the alchemist, whose research was aimed at converting lead into gold. “Similarly to any other human activity, the ingredients of architecture and design, the materials and finances, the time-scales and legal implications, are often restrictive but fundamental. Our goal is to balance them in such a way that the end result is lifted out of the basic sphere, providing a valuable architecture which is invested with the quality of timelessness.” cc 113

CC SHIPPING

Social security for seafarers in Malta Malta has served as an international centre for maritime and shipping industries since time immemorial. The passage of time proved that it has only got stronger in this sector, offering numerous benefits to all those involved in the maritime industry. Such benefits are evident when it comes to the social security regulations applicable to seafarers in Malta.Â

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CC SHIPPING In operating under a European Union flag, ships registered in Malta lead to advantages such as: 1. The obligation for residents of the EU/ EEA/Switzerland working under a Maltese flag-ship to be registered in the social security system of Malta; 2. A European Health Insurance Card offered to those insured in Malta and an S1 form supplied to those residing in a member state other than Malta; 3. Unemployment benefits in the seafarer’s country of residence, enjoyed in virtue of a U1 form; 4. Pension secured at a rate of benefit reflecting the length of the claimant’s insurance in their scheme paid by any EU, EEA state and Switzerland.

Such benefits are enjoyed in virtue of the international and regional frameworks applied in Malta. Following its accession to the EU, Malta sought to implement Regulation EC/883/2004 wherein the rules regulating social security applicable to seafarers became more streamlined.

Although seafarers and employers are required to pay contributions in the vessel’s flag state, whenever seafarers are remunerated by an ‘undertaking’ in the same member state where they reside, then the legislation of the member state of residence shall apply.

In the past, Malta required seafarers working on a Maltese flag-ship to also reside in Malta. This requirement was however done away with as it was deemed to go against the concept of the freedom of movement of persons embraced in the EU. Malta now offers non-residents of the EU/ EEA/Switzerland working under a Maltese flag-ship, the possibility to opt for the social security system of their non-EU/EEA/ Switzerland country of residence.

Conversely, under this Regulation, seafarers who are residents of the EU/ EEA/Switzerland must necessarily be insured in that EU flag state in terms of its respective laws. The only exception for EU/ EEA/Switzerland residents lies in the case where the employer and employee reside in the same member state, provided that the seafarer is affiliated in that state for social security. This is always subject to the main principle that seafarers can only be subject to the social security system of one member state.

The benefits which a person insured in Malta enjoys include a European Health Insurance Card (EHIC). If a person resides in a member state other than Malta, he may benefit from an S1 form upon presentation of the salary slips showing the contributions.

Those insured in Malta may also claim unemployment benefits in their country of residence, by making a request.

The process of obtaining insurance in Malta is in fact a very simple one. A APRIL/MAY 2018

registration application must be made for each employee so as to obtain a social security number, wherein the employer is simply required to apply for a PE number and an income tax number (under an ‘inactive’ status if a foreign company), whether based in Malta or otherwise. This enables them to carry out the monthly returns.

Contributions are then calculated based on a percentage of the weekly salary if the latter does not exceed the threshold of €438.54.

Once the weekly salary goes over this threshold, then a fixed sum of contributions is to be paid. Given that the level of salaries earned by yacht crew members generally exceeds this threshold, then contributions are capped at €43.85 both for the employer and employee, resulting in a total contribution of €87.70. One must ultimately add €1.32 contribution for maternity fund.

When it comes to pensions, the Regulation introduced the concept of the portability of rights. This means that if a person has worked for more than one year in two or more of any EU/EEA state or in Switzerland, then the Regulation requires that the contributions paid in each of these states be taken into account proportionally to the length of insurance periods in such states. For instance if from a total of 40 years, a person spent 20 years working in Malta, 15 years in Italy and five years in the United Kingdom, then this person should get a pension of not less than 20/40 years of the theoretical amount from Malta, 15/40 from Italy and 5/40 from the UK. All these states will work out the full theoretical rate of pension as if the person worked the whole 40 years there.

Malta ensures that Regulation EC/883/2004 applies to all ships registered under its flag, whereby returns and payments are made mandatory. Naturally this is applicable provided that crew members working on such ships are actually registered with and covered by Malta’s social security system.

Aegis Corporate Services Ltd offers services to brokers and owners so as to ensure full compliance with Maltese laws applicable to them, including EU legislation.

This involves aid in proceeding with the regularising and the registering of EU/EEA/ Swiss resident seafarers working under the Maltese flag.

In addition, Aegis Corporate Services Ltd takes care of the registration of an employer, that is, the entity paying salaries, in Malta as well as the application for Maltese residency for crew members. This will be followed by the registration of crew members with the Maltese social security system, offered irrespective of the EU/EEA/Swiss flag involved, as long as the employer (that is, the entity paying the salaries) is also registered in Malta. cc For more information contact us on E: info@aegis-malta.com 115

Office Trends

Technological and manufacturing advancements are pushing the boundaries of office design, and companies are increasingly willing to embrace them. Martina Said highlights some of this year’s key office trends.

01. Other-level green Last year, companies embraced greenery on a whole other level, where vertical gardens, lawns and massive skylights were mainstream ideas. They’re now kicking things up a notch by applying the idea of ‘green’ to their work processes too, such as renewable energy sources to power the office, locally-sourced food and drink, bike and electric car rental for commuters and more.

02. Open shelving In line with promoting openness in a work environment, stiff cupboards and cabinets are becoming a thing of the past.

Companies are embracing open shelving for storage and filing, and it’s a trend that can easily be applied to office spaces of all sizes, resembling a trendy home library rather than a formal office space.

STYLE

Colour and texture both contribute enormously to breaking up monotony in an office, and there’s no limit to how many can be used (wisely and tastefully) to stimulate the minds and creativity of employees. Consider a mix of textures that reflect your work ethic and personality – exposed brick walls with wood panelling, glass with solid walls, turf with polished concrete. Unexpected combos help create a lively and playful work environment.

06. Private stations While open spaces in large offices are encouraged to stimulate interaction, private workspaces within the office offer the exact opposite, yet still reflect a degree of flexibility with office design. Companies are using all nooks and crannies of their office space to create small and secure hideaways that are ideal for doing work that requires strict concentration. cc

01.

www.cobus-spaces.com

www.omega-pure.com

04.

03. Virtual and augmented reality Far from being reserved for avid gamers, VR and AR are slowly making their way into office environments too, and to great effect. Virtual and augmented reality technologies are proving to be a great resource for employees to demonstrate product development through immersive meetings, as a marketing tool to enhance the experience of a product or service, and for employers to give potential recruits a virtual tour of the office.

REVIEW

05. Mixed textures

02.

www.focalupright.com

04. Ergonomic designs Since employees spend an overwhelming amount of time at their desks, employers are increasingly recognising the importance of ergonomically-correct furniture pieces aimed at preventing aches, pains and injuries related to sitting for a long time, such as moveable keyboard trays, sit/ stand desks and ergo-friendly chairs.

03.

www.videoblocks.com

05.

www.officelovin.com

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06.

JLL

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CC make the headlines

SGS Malta: when you need to be sure Established in 2011, SGS Malta has sought to foster the SGS corporate values and key characteristics that have enabled SGS to become globallyrecognised as the market leaders in the inspection, verification, testing and certification industry.

Significant investments were made between 2012 and 2014, the latter laying the foundations for a fully-fledged petroleum laboratory which today covers the full spectrum of fuel oil and diesel tests. The lab has enabled SGS Malta to set a foothold in a very competitive and dynamic market, and is now catering for both local and international markets.

In an effort to continuously improve its services, the Malta branch obtained ISO 9001 certification and thereafter set out to achieve ISO 17025 accreditation which to date covers in excess of 10 test methods.

Early last year another ambition materialised – from the various assessments and studies performed during the process, SGS was entrusted with the quantification and testing of the first-ever delivery of natural gas to the Delimara FSU. The operation was certainly one of the highlights of the year and gives further reason to invest locally.

The Malta branch consists of a highly-experienced group of individuals who are all committed towards achieving the same aim.

Customer satisfaction is at the forefront of all our operations and for this reason we strive to make use of all the knowledge within the Group so as to provide the best possible service.

In September 2017, SGS Malta reached another milestone with the official launch of the Certification and Training Division. Through our ever-expanding network of auditors and field experts, we now locally offer a wide variety of certifications, such as ISO 9001, ISO 14001, ISO 45001, ISO 50001, IATF 16949, BRC, ISO 22000 and FSSC 22000. A Training Academy is in the making and we are committed to delivering quality and making a difference to society. cc SGSÂ Italia S.p.A. Malta Branch, Andre Escave Industrial Park, Immaculate Conception Street, Birzebbuga. T: 2165 0600; E: sgs.malta@sgs.com; www.sgs.com APRIL/MAY 2018

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HSBC Malta is extending its current range of offers as well as reducing, and in some cases, totally removing home loan fees

HSBC in excellent position to support the residential property market

HSBC is committed to continue its support of Malta’s real estate market through its competitive range of home loans available in branch. This was stated by HSBC Malta’s Head of Retail Banking and Wealth Management, Daniel Robinson, during a networking event for real estate agents at the Hilton’s Spinola Suite, organised by HSBC.

Mr Robinson explained that, in 2018, the business wanted to build on the work it had completed in 2017, treating both compliance and credit quality as important requisites to supporting a strong property market in Malta. HSBC continues to work hard on improving the processes used by its customers whilst providing home loans at market leading rates. “As a result of our work in 2017, today, HSBC Malta is in an excellent position to push on in improving the way we serve our customers better, and help them achieve their personal goals. Key to this is providing an excellent, slick and simplified service when processing home loans, combined with our excellent product range,” Mr Robinson said. “To further show our commitment to the market in Malta, HSBC is extending its current range of offers as well as reducing, and in some cases, totally removing, home loan-related fees for a set period of time.”

The event also featured a presentation by economist Dr Gordon Cordina, entitled ‘The Outlook for the Residential Property Market in Malta’.

“The current boom in real estate appears to be, in the mainstream, well-supported by economic fundamentals, but investment in the quality of residential attractiveness is needed to avoid a market bubble in the longer term,” Dr Cordina said. He presented market statistics that supported the current confidence in the residential property market, while detailing warning signs that economists are always on the lookout for. He specified the positives of the current real estate market, the requisites for continued success, as well as the potential risks that need to be managed to ensure that the market does not experience a downturn. cc

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Blockchain and logistics – is it the next buzzword?

By Edward Micallef, General Manager at World Express Logistics Everyone is talking about blockchain nowadays – it’s expected to be the next quantum leap in information exchange. One of the biggest challenges within a supply chain is definitely timely information exchange. Could blockchain technology tackle this issue, or is it just a buzzword?

The supply chain has become complex – it takes days to make a payment between a manufacturer and a supplier, or a customer and a vendor. Irrespective of which industry you operate in, supply chains have become a headache to most buyers. There are too many parties involved, and when things go wrong, each party blames the other.

There is too much back and forth of emails and telephone calls, and the receiver or buyer doesn’t really know where his goods are and who to blame.

Blockchain could be the answer to many of these issues. This recent technology is what drives bitcoin and other so-called cryptocurrencies. However, it goes much further than a hack-proof way of holding and exchanging money. Blockchain can be used for any kind of exchange, agreements or tracking. In a supply chain, it can apply to anything and could facilitate the exchange of information between the buyer/seller and all the other parties involved, automatically. This means that you can store origin, place of storage, authenticity, property certificates and records. All the necessary information is on a single ledger. All the information being in one place makes it easier to access and creates a transparent supply chain, ultimately passing the savings onto the end consumer.

The logistics and shipping industry is increasingly relying on technology to cut costs, improve processes and increase transparency.

Blockchain technology could be a solution to many of the industry’s issues. However, we must still wait for the technology to be tried and tested to really benefit from it. It is an exciting time for the industry, and it will be great to see which companies will be the first to go for it. cc E: emicallef@wel.com.mt APRIL/MAY 2018

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BDO Malta announces 2,200m2 of new office space in Msida Audit, accountancy and corporate services firm BDO Malta has announced plans to relocate to a new, state-of-the-art office in Msida. The new office block is located in a prime position, enjoying wide frontage overlooking the busy Msida-St Venera by-pass. It is scheduled to be completed by mid-summer, offering a new business address and corporate lifestyle for approximately 120 people.

Spread over a floor area of 2,200m2 on six floors, the new BDO Malta offices will include all modern facilities expected within such developments, including comfortable workspaces, spacious meeting rooms and fullyequipped boardrooms, staff facilities, chill-out areas and sun-washed terraces for team activities and open-air meeting spaces. The building is designed in line with the highest

environmental building standards and will provide office spaces for third-party entities who are seeking to strengthen their presence in Malta while remaining as close as possible to their advisors.

Established as an audit and accountancy firm in 1978, the relocation to the new office block coincides with the firm’s 40th business anniversary. BDO Malta assists clients across a wide range of industries, supported by solid technical expertise, market insights and an international business mind-set plugged into the BDO global network.

John Attard, Founding Partner at BDO Malta says, “we believe that Malta’s positive economic momentum will continue. The firm is investing in new premises to further reinforce its commitment to the BDO brand and to our staff, to continue delivering the highest level of service to our clients and to our country.”

Mark Attard, Chief Executive Officer at BDO Malta says, “we worked hard over the past three years to consolidate the firm’s core business offering and to develop new service areas. 2018 is a special year for us as we celebrate the hard work of our founders and 40 years of driving businesses forward.

While we continue to prepare for further growth, this investment will help position the BDO brand on the frontline of service providers in Malta.” cc

An artistic impression of the new BDO office block in Msida.

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Why the distribution industry is better off with Acumatica Cloud ERP As a sole collection point for all an organisation’s data from multiple sources, an Enterprise Resource Planning (ERP) solution acts as a ‘single source of truth’ – eliminating data duplication, enhancing data integrity and enabling users to drive growth, manage costs and be more productive.

As we know, the distribution industry is a complicated one, and the technology chosen to run systems and processes can make or break a company’s bottom line. If you can’t deliver your orders on time and at the best price, another distributor certainly will be more than happy to do so.

Acumatica Cloud ERP can modernise and scale many processes to meet customers’ demands. It helps manage the unpredictability of the distribution market by empowering distributors to streamline processes from

quote to cash, optimise the supply side of distribution operations, and make better financial decisions.

Quote to cash Distributors who want to serve their customers from quote to cash (and every step in between) are turning to Cloud ERP in growing numbers. Excellent customer service processes require information such as customer order history, shipping schedules, product return protocols, archives for recall processing, etc. Acumatica Cloud ERP makes this possible without needing to upgrade existing IT systems.

Optimised supply chain In today’s marketplace, it’s becoming more and more necessary to connect the supply chain from beginning to end. Inaccurate inventory information hurts efficiency – therefore an exact understanding of your stores, stock, and orders throughout the supply chain is needed for effective decisionmaking. True supply chain automation with Acumatica Cloud ERP enables you to keep a detailed eye on the entire supply chain – as well as taking care of ordering and inventory tracking.

Make better financial decisions Powerful BI and analytics tools collect eye-

watering amounts of raw data that can be used to inform a business’s decisions and direction, but the problem lies in how all this data is transformed into something of value – data is only as useful as the information it delivers, otherwise it’s just noise.

Acumatica Cloud ERP monitors key metrics for each functional business unit. Users can drill down into summary and detailed information, including access to supplemental information. Executive management has immediate access to performance measurement dashboards for fast, accurate decision-making. cc Start making the shift to Acumatica Cloud ERP today.

For more information T: 2149 0700; E: info@computimesoftware.com; www.computimesoftware.com/acumatica-erp

The orange fleet keeps growing bigger and stronger Growth in the local population brings about an increase in consumption, and hence, importation. Sustained consumer demand as well as an increase in the demand for the importation and transportation of heavy machinery and equipment have led Express Trailers to invest in further vehicles for its growing fleet.

The company has just added four new DAF tractor units to its fleet for its domestic operations, one DAF curtain-sided truck which will be deployed at Express Trailers’ Bonds section in Hal Far, two temperaturecontrolled box vans to be deployed by the domestic operations team and a new low loader to be used by both domestic and international operations. Besides transporting special machinery and construction equipment, this low loader 128

can also transport heavy plants for regular operations.

Franco Azzopardi, Chairman and CEO of Express Trailers says that when it comes to its fleet of vehicles and trailers, Express Trailers was never a company to shy away from investment. “Since its earliest days, Express Trailers’ edge has always been based on having the right means with which to operate and a high propensity to invest in its business enablers, people, equipment and space. Its fleet has always been at the forefront of any long-term

investment, and whenever the company looked at growth, this was always in terms of fleet resources. We believe that an upgraded and diversified fleet enables better and more efficient logistics operations that satisfy clients’ increasing demands. As long as we keep investing in new transportation vehicles in tandem with the best drivers, we will keep operating in the safest and most reliable manner,” Mr Azzopardi says. cc www.expressgroup.com APRIL/MAY 2018

GADGETS

Tech Trends

Tech security has had many concerned these past few weeks, but are there digital solutions to safeguard our individual privacy? Rebecca Anastasi looks into some of the latest gadgets promising heightened guarantees, as well as other recently-released gizmos designed to make your life easier.

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01. InvisibleShield Glass + Privacy If you’ve ever been concerned about other people peering into your phone while in public, then this nifty piece of kit is for you. InvisibleShield Glass looks like a normal screen protector – and does the job too – but also shields your phone from curious onlookers. Viewed from the front, it looks normal but, when viewed from the side, it darkens your screen, keeping your Facebook profile and text messages safe.

02. Western Digital My Passport

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Nowadays, our lives are held on our laptops and hard drive backups, which poses significant security risks. Western Digital – the hard drive masters – have now created a solution to all your privacy woes with their new portable storage My Passport. It not only automatically backs up a maximum of four terabytes of data but does so with 256-bit AES encryption and WD Security software. The drive itself is locked after five incorrect password attempts, and you can even add a ‘return-if-found’ message as the password prompt if it ever gets lost.

03. Nest Hello

04. Sage Oracle One Touch

by Heston Blumenthal Be on the alert with a freshly-ground cup of coffee made using the new Sage Oracle One Touch by Heston Blumenthal, an espresso machine which gives you a barista-style brew at the touch of a button. This beauty is fully automatic, using a built-in grinder to pulverize your beans before every cup and allowing you to use its automated touch screen to easily adjust the coffee strength, milk texture or temperature.

Not that you need more encouragement for another mug of the black stuff.

05. Apple iPAD Highly anticipated (of course), the new sixth-generation Apple iPad is the tablet everyone has been talking about. Most is the same as the last version – a 9.7-inch display with a resolution of 2,048 x 1,536 pixels, an 8MP rear camera, 1.2MP front camera, stereo speakers, lightning connector, and a front fingerprint scanner. But, it does now have support for the Apple Pencil and a faster processor, the A10 Fusion, which will leave Apple fans satisfied.

06. New GoPro Hero A cheaper, introductory GoPro? Yes, please! For those who want to dip their feet into the action cam foray, this new camera – simply known as Hero – shoots images you’ll be proud to show off to family and friends. Create HD video at 1440p and 1080p at 60 frames per second or 10-megapixel stills for a fraction of the usual price. And, while it lacks the 4K capabilities and optical image stabilisation features of the pricier versions, this will keep you filming for hours on end. cc

Everything is smart nowadays, even our doorbells. Nest Hello aims to be the golden standard in clever buzzers, working with Nest Cam IQ Indoor and Google Home to announce when someone’s come to visit. It replaces your existing wired doorbell and delivers HD video, live from – you’ve guessed it – your doorstep, even offering 24/7 streaming so you can check it out any time, or all the time.

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CC MEET THE ARTIST

Exploring beauty in art and science Liliana Fleri Soler chats to Martina Said about her life’s passions, her most recent exhibition of sculptures, and the joy of sharing art with others.

Photo by Alan Carville

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n the creative and imaginative world of artist Liliana Fleri Soler, art and science co-exist in the most organic of ways – an uncommon combination of virtues in our modern times, perhaps, although she’s quick to point out that artists of the past, particularly the Renaissance period, considered art and science to be one and the same. The zeal with which she talks about her obsession with art and fascination with science is infectious – and in a true chickenand-egg situation, it’s hard to tell which one came first.

“I’ve enjoyed making things for as long as I can remember,” says Liliana. “I loved painting and simply creating things driven by my own interests as a child. However, as was very common in those days, pursuing art as a career wasn’t something I was encouraged to do. It was simply a time when being an artist wasn’t considered a real profession, unless there was someone in your family APRIL/MAY 2018

who was established in artistic circles.”

Art was an interest she pursued in her own time throughout the years, while she focused on teaching science, specifically biology and chemistry. “I started teaching science at a very young age, around 18 years old or so, and during that time, I experimented with art and different media.

Meanwhile, around 20 years ago, my brother started a framing business, The Picture House. My daughter was born around the same time, and so I stopped teaching, but I often replaced my brother at his shop, which was a perfect place for meeting and chatting with artists and like-minded individuals.”

“After many years, I was able to recognise the immense value of science in my life, and the influence it has on my art too.”

Photo by David Pisani

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Photos by Alan Carville

All this time, Liliana says she read about and studied art obsessively. “There was no formal training, just a thirst to discover more and more.” Her breakthrough moment came rather unexpectedly when she offered to decorate the house of a friend, who would eventually become a client, with some colourful pieces of art. “He had a particular space he wanted to decorate, and I saw it as a chance to get creative with a proverbial blank canvas,” says Liliana. “They were large, floor-to-ceiling pieces, and when he came to collect them, he was impressed and a little surprised that I had kept this skill to myself for so long.

This is when I emerged from my shell artistically, and this experience gave me the impetus I needed to give it a real shot and explore the idea of making, sharing and selling my art.”

From that point on, Liliana’s artistic journey took its own

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“Just as a writer develops characters for a novel without really knowing where the characters will take them, I too let the character of this woman lead me on a journey of exploration.” natural course, but her interest in science never faltered. “For a long time, I dreamed about attending art school abroad, specifically the Slade School of Fine Art in London, and for my formal education to be in art rather than science. However, after many years, I was able to recognise the immense value of science in my life, and the influence it has on my art too. It also came to have many advantages, and the knowledge I gained from my teaching background has helped me enormously.”

In 2012, Liliana was commissioned to do a series of works for Science in the City, the same year that the popular event was founded. She created a set of large, full-size sculptures of humanoid fruit flies during their life cycle, from courting to mating,

which are now housed within the Biology Department at the University of Malta. “That same year, I started Creativity for Life, an artistic programme aimed at helping children express their creativity, which I still run today.

I was commissioned to create another set of science-art sculptures for the same event in 2016, which I have to say are a whole lot of fun to make and a way of bringing science, art and education together, all of which I’m passionate about.”

During this time, Liliana was also busy working on a concept for a new exhibition, which opened in May 2017, titled A Distant Noise of Time, featuring a collection of 13 bronze sculptures and a series of paintings, all of which revolved around a character she created, named The Striding Woman.

Photo by David Pisani APRIL/MAY 2018

CC MEET THE ARTIST

Photo by Alan Carville

The concept was one which evolved gradually and freely over a number of years – her last exhibition of sculptures before this one was in 2011, “so there was a substantial amount of time for thoughts and ideas to brew.”

“Between 2013 and 2015, I spent a lot of time sketching, reading, thinking, writing and generally evolving and shaping the idea, and what started it off was a sketch of a woman in motion, from which a story line and eventually paintings and a series of sculptures emerged,” says Liliana. “Every sculpture shows an alternative facet of the character, and the story evolved gradually. Just as a writer develops characters for a novel without really knowing where the characters will take them, I too let the character of this woman lead me on a journey of exploration.”

Liliana’s figures infallibly draw inspiration from the female form – “I like working with the figure in general, but I identify with the female form which tends to feature in some way or other in my work. Some of

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Photo by David Pisani

Photo by Alan Carville

the figures for this exhibition were life-size, but all were tall and thin, as my sculptures tend to be.” She walks over to the open studio section of her apartment, where a number of works are on display while others are works-in-progress, to pick up one of the

sculptures from the exhibition which she kept for herself. “She’s my favourite,” she says, laughing. “It’s strange how attached you can get after working on them for so long!”

The process for her bronze figures begins with copper wire, with which she creates the bones for a sculpture. She then proceeds to mould the figure with wax, pressing and shaping the wax to create the desired form.

“What I really enjoy is the construction of the sculpture – a stick figure develops into a wax figure, until all the wire is covered. I then move on to the details, which is when the fun begins,” she says. “This one in particular shows the character’s feminine side – she’s wearing a corset with a bow at the back and a pair of culottes, but then accessorises with a masculine pair of boots and a top hat. Once the wax moulds are done, they’re taken to the foundry to be cast in bronze. Only one of each mould is cast in bronze, and I give them all a metallic patina to lessen the gaudy hue of the bronze.”

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Photos by Alan Carville

Photo by David Pisani

“I simply love what I do – all of it – and there’s no working for tomorrow, it’s working for now.”

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Asked whether the collection, and her art at large, is inspired by specific events or experiences, Liliana says it is life in general which influences her work, specifically things that amuse rather than just influence her. “I don’t consider emotions, like pain or sadness, to make me more productive as such. There are instances when people assume your work is tied to your emotions, but it’s not necessarily that deep or complex,” she explains. “One of Alberto Giacometti’s most famous sculptures is called The Chariot, and was labelled as such but not by himself.

Giacometti had revealed that what inspired that sculpture was a wheel of a trolley he had observed during a stay in hospital – he simply liked the form and made a sculpture based on it. The Chariot was a far more elegant name than the trolley, which is what really inspired the sculpture!”

In fact, Liliana admits that she doesn’t like detailing and explaining her art, as she believes that part of the scope and joy of art lies in the audience’s own interpretation of it. “I don’t think the artist should dictate how or what to feel – art is subjective, just like music. When watching or listening to an opera, it doesn’t come with a manual telling you how you should feel or what you should think.”

While the artist has no immediate plans for another exhibition of sculptures, she says the last one gave her many satisfying moments which she cherishes dearly. “At this point in my life, I really cannot say that I’m working to achieve specific goals. I simply love what I do – all of it – and there’s no working for tomorrow, it’s working for

now,” she explains. “Having said that, when a concept translates from an idea in your mind to reality, it’s immensely satisfying for me as an artist. And then of course there’s the satisfaction of selling your work, and of people you don’t always know telling you they have a piece you created. While parting with the work isn’t always easy, there’s a lot of joy in sharing it with others.” cc

Photo by Alan Carville

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