The Commercial Courier - October/November 2018 by Content House

THE COMMERCIAL/80

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

OCTOBER/NOVEMBER 2018

An award-winning conversion New life for Valletta eatery

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE BUDGET 2019: WHAT DOES IT MEAN FOR YOUR BUSINESS? / FINANCE MINISTER EDWARD SCICLUNA DISCUSSES THE BUDGET / MALTA CONTINUES TO REGISTER INCREASES IN THE REGISTRATION OF VESSELS AND AIRCraft / ARE DIGITAL DISTRACTIONS HARMING LABOUR PRODUCTIVITY? / MALTA-UK BUSINESS PROMOTION TASK FORCE HEAD JOSEPH ZAMMIT TABONA ON THE OPPORTUNITIES FOR MALTA FOLLOWING BREXIT / CERAMIST GEORGE MUSCAT TRACES HIS ARTISTIC JOURNEY / THE LATEST BUSINESS NEWS

THE COMMERCIAL/80

COURIER OCTOBER/NOVEMBER 2018

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FOOD trends

114. 78 DESIGN TRENDS

12 COVER STORY

BAKERY TURNED RESTAURANT: AN AWARDWINNING CONVERSION IN VALLETTA

Budget 2019: Will supply be able to meet demand? With robust economic figures all round and investments in new emerging segments, the 2019 Budget looks largely positive – except for where it’s lacking. Martina Said asks the experts to weigh in.

19 INTERVIEW “MALTA’S TARGET IS CONVERGENCE WITH THE REST OF EUROPE” Finance Minister Edward Scicluna discusses the 2019 Budget with Marie-Claire Grima.

24 COVER STORY

Sarah Micallef speaks to Theo Cachia, Design Architect at ARCHi+ who worked on newcomer to Valletta’s restaurant scene Noni, to find out what went into the restaurant’s transformation.

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110 INTERVIEW THE SILVER LINING IN THE BREXIT STORM

33 COVER STORY Is social media distracting employees? Social media has chained us to our devices, shortened our attention spans and made us unable to focus on accomplishing a task without procrastinating. Or has it? Marie-Claire Grima consults industry leaders.

FLYING THE MALTA FLAG As the Malta flag continues to foster its reputation, Joanna Demarco asks professionals in the field why the country is attractive as a jurisdiction, and what the future holds.

SOCIAL MEDIA USE IN MALTA… IN NUMBERS A look into the figures related to social media use in Malta.

This issue covers the month of October/November 2018.

STYLE REVIEW

114 MEET THE ARTIST THE BEAUTY OF SPONTANEITY

41 IN FIGURES

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

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Lewis Pitcher speaks with Malta-UK Business Promotion Task Force Head Joseph Zammit Tabona about the opportunities for Malta that Brexit may bring, and what is being done to make them a reality.

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.

Sarah Micallef meets seasoned ceramist George Muscat, whose tireless energy is infectious, and comes across in each and every piece he creates.

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

Kevin J. Borg Editorial Coordinators

Sarah Micallef Edward Bonello Publisher

DIRECTOR OF SALES & BUSINESS DEVELOPMENT

Matthew Spiteri CORPORATE SALES & BUSINESS DEVELOPMENT MANAGER

Bernard Schranz SENIOR BRAND SALES EXECUTIVES

Jean Mark Meli Matthew Sciriha

Content House Ltd Mallia Building, 3, Level 2, Triq in-Negozju, Mriehel BKR3000

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

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Elena Dimech Tel: +356 2132 0713 Design

ON THE COVER Detail from Noni interior. Photo by ARCHI+

Malta chamber’s bronze collaborating partners OCTOBER/NOVEMBER 2018

CC Editorial

At the heart of the Chamber On the special occasion of its 170th anniversary, the Malta Chamber celebrated the businesses and individuals that have formed the heart and soul of the institution since its establishment in 1848. Historically, many members were entrepreneurs from family businesses that consistently played a crucial role in the growth and development of Malta.

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years later, the majority of Malta Chamber members still operate family businesses, and for this reason, the Chamber organised A Family Affair – Safeguarding Malta and Europe’s Beating Heart, a tribute to the families who have given Malta some of its foremost entrepreneurs and the country’s leading business names. With the conference, the Chamber celebrated the core of its being – a core formed by members whose expert views and opinions have determined the Chamber’s policies and positions throughout the decades. The contributions by members have always been driven by certain objectives, aspirations for a better business environment that allows for growth based on fair competition and quality of service

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– the hallmarks of all respectable family businesses. The Malta Chamber is honoured to share some of the satisfaction behind the many local family businesses that developed from humble beginnings into household names – sometimes even beyond Malta’s shores. It is for this sole purpose that the Malta Chamber exists – to act as a reliable network for Malta’s businesses, a bridge to the country’s decisionmakers and a support system when needed. The conference was headlined by a prestigious line-up of international speakers ranging from international household names to local business sensations. Ferrero R&D Chief Briano Olivares spoke about the great lengths a giant like Ferrero goes through to ensure that their product remains at the top of the game, putting a great emphasis on dedication and quality.

“With the conference, the Chamber celebrated the core of its being – a core formed by members whose expert views and opinions have determined the Chamber’s policies and positions throughout the decades.”

CC Editorial

In an emotional speech, Buffa Founder Paolo Buffa underlined the importance of the family element in his business and the great sacrifices needed to keep a business going through the years, while Grimaldi Lines Director Eugenio Grimaldi spoke about his experience joining his family’s shipping business and introducing new ideas to an already greatly successful business model. They were also joined by leading stalwart Maltese entrepreneurs Joseph Zammit Tabona from Infinitely Xara, Denise Xuereb from AX Group and Benjamin Tabone Grech from Engel & Völkers Sara Grech. The event which was hosted by Chamber Deputy President David Xuereb, and also featured the participation of Christian Cardona, Minister of the Economy, Investment and Small Businesses, Elena Grech, Head of the European Commission Representation in Malta, Etienne Borg Cardona of Capital Advisory, Albert Frendo, Chief Business Development Officer (Credit) at BOV, Maria Micallef, Managing Partner at RSM Malta, David Galea, CEO at BEAT Consulting, Ariadne Massa of Media Insiders, and Sam Borg, Director at Bortex Group.

While the conference saw some extremely insightful presentations by the guest speakers, the Chamber also made sure that a lasting contribution would be made to the area of family business. In fact, in his welcome address, President Frank V. Farrugia announced the establishment of a new Malta Chamber committee, specifically for family businesses. An agreement between the Malta Chamber and the Family Business Office was signed during the conference to ensure a lasting collaboration between the two entities. This Committee will ensure that the Chamber’s dedication towards family businesses continues beyond the day’s

discussions. It shall serve as an excellent platform for constant communication between family businesses, the area’s main policy-maker and other relevant stakeholders. The event would not have been possible without the support of the Chamber’s longstanding collaborators BOV, HSBC, RSM Malta, Air Malta, Content House and Malta Motorways of the Seas, together with the Ministry for the Economy, Investment and Small Businesses, The Family Business Office, Farsons, Karl Borg Events, Infinitely Xara, AX Group and EV Sara Grech who the Chamber partnered with to organise the event. cc

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Frank V. Farrugia President, Chamber of Commerce, Enterprise and Industry “In its pre-Budget recommendations, the Malta Chamber advocated the need to keep the country’s public finances in check – it seems that Government is taking heed of the Chamber’s recommendations in this respect,” says Chamber President Frank V. Farrugia. “In this year’s Budget, we have noted measures aimed at rectifying some of the structural issues that significantly impact the state of public finances through continued fiscal consolidation and elimination of leakages, the myriad undeclared economic activity and abuse in free movement of goods, among others. The Chamber also welcomes Government’s statements that it is not overly reliant on the revenue of the Individual Investor Programme (IIP) scheme, which makes the surpluses achieved this year and next year even more sustainable.” Upon a more detailed inspection of macroeconomic indicators, Mr Farrugia says that the readings are positive, with debt to GDP on the decrease both in absolute terms and as a percentage of GDP, employment rates on the increase, unemployment low and inflation rates relatively stable. “More importantly, forecasts for GDP growth rates in real terms remain positive for this year and 2019, hovering above the five per cent mark. The general Government balance is expected to be in surplus at 1.1 per cent of GDP this year, and is expected to improve further in 2019, reaching a surplus of 1.3 per cent of GDP. The Chamber must once again call on Government to invest the proceeds of existing revenue streams and positive economic performances in order to foster a more sustainable economic model for Malta – one that is not overly reliant on the constant attraction of foreign assets and resources.” Turning his attention to the Budget’s impact on local businesses, Mr Farrugia says it is largely positive, as no new taxes or fiscal measures were introduced. The Chamber further welcomed measures aimed at promoting fair enforcement, the

promotion of new emerging segments in the economy such as the establishment of Tech MT, and the strong focus on pensions. “Nevertheless, this Budget does not address the more adverse challenges we are facing as a country, including aims to scale up our companies in the value chain, the provision of adequate human resources needed for the traditional and emerging sectors to grow and the issue of increased traffic congestion. The Chamber was also expecting the authorities to listen to its calls for a national debate on

a long-term economic plan for the country, which is direly needed to sustain current growth levels in the future.” One segment which Mr Farrugia believes deserved more attention is the manufacturing industry, especially within the context of its 2018 Gross Value Added (GVA), which registered an overall significant decline compared to 2017. “The Chamber is a strong believer in manufacturing and believes that with further assistance to help increase value and lower operating costs,

“This Budget does not address the more adverse challenges we are facing as a country, including the provision of adequate human resources.” 12

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the country can manage to scale up some of these companies in the value chain. A concerted effort by Government needs to be undertaken in terms of reorienting industry towards research, development and innovation in order to make it more sustainable in the years to come.” In its pre-Budget proposal document, the Chamber also called on Government to capitalise on the present economic resilience to invest in the necessary infrastructure and safeguard future sustainability. “The Chamber reiterates that a thorough impact assessment of the country’s ongoing growth should be initiated to set sustainable targets for maximum carrying capacities and output levels in the country’s economic segments. Once this analysis is concluded, a national debate on a new long-term economic, societal and environmental master plan for the country post-2020 would be in order,” Mr Farrugia concludes.

Gordon Cordina Executive Director, E-Cubed Consultants “Malta’s macroeconomic performance is one of the best across the EU, and would in itself serve as a factor to attract investment. Projections for 2019 continue to likewise indicate a robust performance,” says economist and Executive Director at E-Cubed OCTOBER/NOVEMBER 2018

“An economy which relies on low costs and wages for a long period of time in order to sustain jobs and production is not a truly competitive one.” Consultants, Gordon Cordina. “From a more medium-term perspective, the key questions at this stage are the durability of this performance and its resilience to shocks outside of our control. Both depend on the extent to which we are able to direct the dividends of the current performance into investments which serve to enhance the productive capacity and the competitiveness of our economy.” The persistence of fiscal surplus and the reduction in national debt attest to the potential capacity and resilience of the economy, Dr Cordina adds, as they would provide resources for future use to address emerging challenges. “The extent to which the country is currently managing to balance economic investment with the need for better productivity, environmental amelioration and social cohesion is the fundamental question to be addressed by policy-makers, social partners and stakeholders in the Maltese economy. The way in which we address this question over the next few years is likely to impinge on economic performance and the standard of living over decades to come.” Taking a closer look at the measures which will fuel the economy throughout the coming year, Dr Cordina perceives the approach and attitude to the 2019 Budget to be “steady

as she goes” – where the Maltese economy is managing to grow without the need of massive new interventions from Government and from the fiscal budget in particular. Dr Cordina adds, this is not to say that the economy is not facing challenges to growth, particularly in providing sufficient capacity to meet demand, be it in tourism, industrial working spaces and sufficient human capital. “It is however true that Government would be tackling these problems through measures and initiatives being undertaken through various entities, which in themselves do not feature as specific Budget measures, although they would of course appear as line items in terms of their financing.” The economist believes that, in a situation of strong economic performance, the Budget tended to prioritise areas where Government intervention is currently most needed, namely the prevention of poverty – especially that associated with housing – the improvement of road transport infrastructure, and the management of waste as an environmental priority. “Each of these aspects requires long-term approaches which typically span beyond the fiscal Budget time-planning horizon. It is expected that the interventions spelled out in the Budget, which have their obvious merits, would form part of a coherent longer-term 13

CC COVER STORY plan to effectively address current and future challenges,” he maintains. “It is also essential that in their practical implementation, these measures do not create effects which run counter to the intended ones. For example, rent subsidies should be sufficiently focused and surgical so as not to lead to higher rental rates. Likewise, investment in better road infrastructure, which is indeed a must for the country, is to be complemented by measures which promote transport modal shifts.” With the current rate of growth, Dr Cordina says there is an almost autonomous process through which rapidly growing economies experience increases in prices and costs, driven by the expansion in demand for goods and services. “The competitiveness test of the economy would be to continue growing durably as costs, incomes and living standards would be consistently rising over time. An economy which relies on low costs and wages for a long period of time in order to sustain jobs and production is not a truly competitive one.” Does he consider Malta’s economy to be at risk of overheating? He replies, “is the rapid pace of our economic growth an addiction that we cannot do without? Or is it a healthy habit that will serve us well going into the future? The way in which we translate our present achievements into a balanced approach towards investment into the future potential of our economy and society will be key to the welfare of this and future generations.”

more students to study STEM subjects and improving the performance of postsecondary students through more robust apprenticeship schemes,” she states. “These measures have been on the table for several years, but they require major commitment from various stakeholders to implement and are not likely to have an immediate impact. Additionally, such measures need to be supported by a culture of quality, efficiency and innovation to be effective.” Ms Xuereb adds that there was no mention of putting more national funds towards R&D initiatives in the Budget, “when our R&D expenditure is extremely low and we know too well that our industry needs to

constantly reinvent itself to be able to absorb more STEM graduates and survive in a post2020 scenario. We seem to expect to be able to fund our innovative capacity exclusively through EU programmes, but this is the same mistake we made in the past when we limited our expenditure on roads to projects that we could get funded through EU programmes. The establishment of Tech MT is a step in the right direction, which could provide the necessary impetus for a broad long-term growth strategy, provided that it is adequately funded.” With the economy currently running on its own steam, Ms Xuereb says there’s also a great need for measures that balance

“Measures to alleviate the skills gap need to be supported by a culture of quality, efficiency and innovation to be effective.”

Marisa Xuereb Managing Director, Raesch Quarz (Malta) “The figures for 2018 are very satisfactory. The economy is growing at a rapid pace and public debt relative to rising GDP continues to fall,” says Marisa Xuereb, Managing Director at Raesch Quarz (Malta). “Inflation seems to be contained, although there are clear signs of inflationary pressures particularly in the provision of services with high labour content. The projections for 2019 indicate that the economy is expected to keep the same momentum in the immediate term.” One measure that Ms Xuereb believes is expected to help Maltese businesses is the implementation of more rigorous border controls and market surveillance that should mitigate unfair trading practices. However, the biggest worry for businesses at the moment is labour supply, “and there is not much in the Budget that addresses labour supply issues in the private sector, except for the additional day of annual leave which accentuates the shortages.” “There is mention of measures to alleviate the skills gap, such as encouraging OCTOBER/NOVEMBER 2018

CC COVER STORY out inequalities that threaten the country’s social fabric, and measures that ensure that particular segments of the economy do not become casualties of this rapid growth. “The Budget acknowledges that low income earners who are not home owners are at risk of poverty as rental rates keep spiralling up. It also acknowledges that pensioners need to be helped more than those who are able to tap into the labour market. But other aspects of this rapid growth – such as the growing number of vehicles on the road – remain a white elephant,” she asserts. “The environment is given more mention than usual, but what matters is how much we are actually willing to invest in it. We will be spending €100 million a year on the upgrading of roads but just €1 million on green spaces in urban areas. We also need to consider the impact of this rapid growth on sectors such as industry and tourism, both of which are struggling to remain competitive.”

Maria Micallef Managing Partner, RSM “Real economic activity in 2018 is robust and currently at around 5.4 per cent, making it one of the higher ones in the EU. This has had a positive effect on public debt that continues to decrease as a percentage of GDP, with Government also managing to contain inflation that at present stands at around 1.7 per cent,” says Maria Micallef, Managing Partner at RSM. “As a result of

fast economic growth, however, the current pressure on labour resources across the board is likely to continue.” Going forward, Ms Micallef asserts that the fiscal priorities of Government mainly revolve around four areas: redistribution of wealth towards the lower earners; improvement of infrastructure to support strong growth; innovation to harness new niches such as blockchain technology and AI; and a move towards a greener economy, all within an overall context of retaining a Budget surplus. Looking at the bigger picture, Ms Micallef considers that most businesses should be better off with the Budget measures announced for 2019. However, certain measures, such as the granting of an additional day of leave and the increase in the statutory minimum wage, may be regarded as increasing the financial burden of businesses. “These, however, have to be seen in the context of a strong economic performance that in itself is a major positive contributor to growth and improved results.” Zeroing in on the persistent problem pertaining to a shortage of labour supply, Ms Micallef says that measures to simplify the work permit process in the 2019 Budget are welcome, although it has yet to be seen how they’ll work out in practice. “The probability is that Malta has to continue to import labour resources to enable economic growth. Increased foreign labour in these past years was a major contributor to the

mismatch between demand and supply of accommodation, which in turn has had a material effect on the rental prices paid by both foreign labour resources and Maltese people,” she asserts. “The Budget initiatives to expand the rent subsidy programme, build housing units and provide social loan programmes should help to reduce the rental burden, mainly on the locals. The launch of the White Paper on the rental market should go some way to deal with ever-increasing rent prices, which if left unchecked, will increase the risk of uncompetitiveness.” Rising costs across the board, in fact, are increasingly being touted as a concern that may make Malta uncompetitive. Is the country at risk of this? “The foreign investment levels indicate that Malta is still a good destination to invest in. This does not mean that we need not be vigilant on our cost levels – if certain major cost drivers are left unchecked, it will lead to higher cost with no corresponding increase in productivity,” Ms Micallef asserts. “However, costs are not the only issue that can make Malta a less than ideal destination for foreign investment. Another crucial factor is reputation, which is relevant not only for the financial services sector but across the board. This is an area where all stakeholders, be they politicians, policy-makers, regulators, journalists, businesses and service providers need to act responsibly and transparently with full respect towards the facts and the law.” cc

“The Budget initiatives to expand the rent subsidy programme, build housing units and provide social loan programmes should help to reduce the rental burden.”

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“Malta’s target is convergence with the rest of Europe” Finance Minister Edward Scicluna discusses the 2019 Budget with Marie-Claire Grima, and stresses the importance of neither becoming too complacent, nor over-fanning the flames of the economy.

he economy in Malta is currently so active that it may seem to be on the verge of overheating, but Finance Minister Edward Scicluna, who announced the 2019 Budget on 22nd October, believes that Malta is simply catching up to the major economies within the EU. “Overheating happens when demand is allowed to overtake supply across all sectors. The most obvious example of this is wage inflation. There will always be some element of this present, and there are signals which, if not addressed, can lead to overheating, but it doesn’t mean that the whole economy is overheating.” Rather, he says, Malta’s target is convergence with the rest of Europe. “You cannot get convergence by growing at one or two per cent, because that’s what the advanced countries are doing. You need to have a higher rate,” he says. “I think every worker in Malta would like to have the kind of salary they would have in France or Germany, which they currently don’t. But hopefully one day, they will. The way to do it is to grow at a higher rate than the other economies which are already there – at four or five per cent. And that level of growth needs labour force.” The Finance Minister continues by saying that foreign workers were coming to Malta because there are vacancies, not the other way around. “Since the

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economy is expanding fast, there are job opportunities here which they don’t have in their own countries. If there weren’t these opportunities, they wouldn’t come.” He adds that much has already been done to tackle the issue of labour shortages. “Malta cannot get bigger. We can only increase the labour force participation rate. I still remember when we were talking about 2020 targets, which were in the low 60s. Now, the participation rate stands at 71 per cent. We have raised the bar higher and higher thanks to measures such as free childcare. We’re now closer, not to the EU average, but to the labour force participation rate of some of the most advanced countries in the EU. That’s when you reach saturation point. Then there’s the question of skills, which we are working closely with tertiary education institutions to address.” On the other hand, he explains that while there are no plans to ‘put the brakes’ on the economy, it won’t be ‘fanned needlessly’ either. “When the economy is down, you need to pump it up, but when it is up, you don’t need to fan it needlessly, you just have to keep it ticking. You need to keep it going at cruising speed, maintaining altitude, and that’s enough.” Indeed, Prof. Scicluna affirms that ahead of the Budget, the

Photo by Jason Borg

Finance Ministry was subjected to all sorts of pressures from different entities trying to push measures which would ‘fan’ the economy, but many of these were rejected. “It’s the act of managing the economy. You have to ensure that you keep it on an even keel. It’s a daily chore.” Prof. Scicluna also confirms Government’s plans to continue restoring public holidays which fall on a weekend back to workers as additional leave days, year by year. “This measure has been in the electoral programme from the very beginning, and it’s going to be spread across the legislature – one more day of leave per year. As an economist, I know that businesses don’t want surprises, but this is not a surprise anymore. They know it’s coming, they have time to adjust their costs, and when they come to the collective agreement, they will take it into consideration as well.” That’s not to say that Government did not pay any attention to the needs of the business community in the Budget. Indeed, one of the most business-friendly measures was the launch of the Malta Development Bank’s (MDB) financial instrument in collaboration with a commercial bank and the Family Business Office, with the aim of facilitating the transfer of family businesses to ensure sustainability in this sector. 19

CC INTERVIEW “In Malta, most companies are small-tomedium enterprises (SMEs) which are familyowned. When you transfer your business to your children, you’re hit with a five per cent duty. But we decided to give businesses the chance to do it at a reduced rate of 1.5 per cent, and that has been successful so far – so much so that it has been extended for another year. However, apart from that, what’s keeping some businesses from making use of this benefit is that the children who will inherit this business need money. The MDB can provide the guarantee that the inheritors need on the transaction, or the loan, and the commercial bank will provide it,” he continues. The controversial Malta Individual Investor Programme (IIP) and the Residence and Visa programme naturally played an important role in the 2019 Budget, as they have done for the past three years. These lucrative schemes are contributing significantly to Malta’s year-on-year surplus, and the Budget speech included the pronouncement that they would be strengthened and extended for another year. But while Prof. Scicluna doesn’t see any reason to stop them, he doesn’t believe that Malta is overly-reliant on

the profits of these schemes either. “There’s no reason to believe that while other countries – at least half of the EU – have such schemes in place, we should stop them. However, we have voluntarily put at rest any concern about Malta relying too much on the IIP and Visa programme. After we presented our accounts and found that there was a surplus, we removed all the revenue that came from the IIP. Was there still a surplus? The answer is yes. This shows that Government can live within its means and contain its expenditure. We’re not saying the IIP will disappear, but if it were to happen, we are prepared for it,” he maintains. A measure which made its way back into the 2019 Budget was the ‘income tax refund’ or as Prof. Scicluna describes it, ‘negative income tax’; the €40 or €50 cheque in the mail. Although understandably popular, it has also received criticism for being frivolous – after all, it is costing Government €11 million, money which many believe could be better spent elsewhere on more longterm projects. But to the Ministry, this does form part of one of its long-term objectives; that of reducing the tax burden.

“I think every worker in Malta would like to have the kind of salary they would have in France or Germany, which they currently don’t. But hopefully one day, they will.”

Photo by Reuben Piscopo

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CC INTERVIEW

Photo by Kevin Abela

“Reducing the income tax burden encourages work. Reducing it from 35 to 25 over a three-year period had a big impact, so this refund continues to support our objective of reducing tax on work. The principle of negative income tax is that you give more to the lower end and less to the upper end. There are similar schemes in many countries, with Italy’s citizen salary, for instance, but we’re doing it more sensibly, in a modest way. It’s what we can afford and it won’t break the bank, but it’s quite appreciated,” Prof. Scicluna explains. The 2019 Budget also announced the establishment of a competitiveness board within the ambit of MCESD, with a specific financial allocation aimed towards further economic development. Is Malta at risk of becoming uncompetitive? “Malta is doing very well,” Prof. Scicluna says firmly. “I believe we are very competitive, especially when it comes to prices, inflation and productivity; however, I would not rely on the present situation. You have to be careful with the economy, guard it, monitor it, supervise it all the time. If we slip, we can easily lose our competitiveness in tourism, iGaming or manufacturing, so we’re not going to sit and say ah, this is forever. Nothing is guaranteed. I’m very proud of the fact that we are setting up this unit to ensure this. While we have had informal boards of this kind in the past, this will be a more permanent institution within the MCESD, connected to a network all 22

“If we slip, we can easily lose our competitiveness in tourism, iGaming, or manufacturing, so we’re not going to sit and say ah, this is forever.” across Europe.” Prof. Scicluna also expresses his enthusiasm about the survival of Air Malta, saying that its only option is to expand, with further investment in new aircraft and new routes added to the airline’s schedule. He

concludes by giving a succinct summary of what he believes to be the outlook for Malta’s economy in 2019: “if your investment today is satisfactory, and if there is a lot in the pipeline – which there is – the outlook is bright. And I believe it is.” cc

Photo by Jason Borg OCTOBER/NOVEMBER 2018

CC cover story

Flying the Malta flag As the Malta flag continues to foster its reputation as a flag of confidence and of choice, the island’s ship and aircraft registers are growing rapidly. Joanna Demarco asks professionals in the field why the country is so attractive as a jurisdiction, and what the future holds.

ying at the crossroads of Europe, Africa and The Middle East, strategically placed at the centre of a number of important shipping routes, it is no wonder that Malta has always been at the forefront of the maritime industry. And in more recent history, with the introduction of EU compliant legislation, fiscal incentives and the 2010 Aircraft Registration Malta Act, it is not only the maritime industry which has prospered locally, but also the aviation sector. Today, the country is experiencing a rapid growth in the number of vessels and aircraft

registrations in Malta. Chairman of Transport Malta, Joseph Bugeja, paints an accurate picture by explaining that the number of registered aircraft has actually doubled since 2012, with more than 280 aircraft registered in Malta, while the number of operators has increased from 18 to 35 within the same period. The number of vessels registered locally has also increased phenomenally. By way of example, in the past five years, the registration of superyachts has increased by over 97 per cent, meaning there are now over 800 superyachts registered under the Malta flag.

According to Mr Bugeja, it is not only the figures which have increased. “Malta’s ship register has grown not only in numbers but also in repute,” he says, pointing out that Malta is constantly adding high-end vessels to its fleet. What leads to such success? Mr Bugeja expresses no doubt that it is Malta’s legislation. “A strong legislative foundation lies at the heart of our success as a nation. A major prerequisite to Malta’s achievements in both sectors was the enactment of a robust regulatory structure.” OCTOBER/NOVEMBER 2018

CC cover story Other professionals in the field echo the same belief. Some are quick to highlight the benefits, particularly fiscal, which the Maltese jurisdiction offers: the incentives range from the 6/7ths refund regime for aircraft operators to the fixed tonnage tax regime for vessel owners, among others. “Most of the advantages available are unique to Malta,” Dr Cedric Mifsud, Founding Partner at Mifsud & Mifsud Advocates believes, “hence the jurisdiction has been well-placed to attract the assets of high net worth and multinational companies. The Maltese jurisdiction has been very clever at developing these advantages, as this is the only manner in which one can develop an interest in Malta. If we stuck to emulating other jurisdictions, we would not be in the position that we are today; a world leader in services relating to the maritime and the aircraft industries.” Dr Anne Fenech, Managing Partner of Fenech & Fenech Advocates asserts that nowadays, “most countries with a maritime sector both inside and outside Europe offer a form of tonnage tax regime, so we are nothing special any more in that regard.” However, she believes that what differentiates Malta from other countries is that the regime is “probably the only EU tonnage tax regime which has been passed through the mill and is fully approved by the EU Commission.” She lists other benefits which add to Malta’s attractiveness as a jurisdiction, including English being the official language, Malta’s EU membership, and having a ‘solid and stable law’. “The Malta flag today has over 70 million tonnes and is the largest flag in Europe. It is a very impressive statistic,” she adds.

With all of this growth however, are there any consequences? Dr Mifsud says that whilst becoming part of the European Union has given “a big boost” to both industries, as clients generally prefer European Union-based solutions, it has also opened Malta up to more scrutiny. “Being part of the European Union has placed the products we offer under more intense scrutiny following concerted efforts by other member states that are in the same game,” he says. He mentions the investigation of the tonnage tax regime by the European Commission as an example. According to Dr Annelise Abela, Advocate and Associate with multidisciplinary legal firm EMD, another consequence is having to ensure that standards are maintained constantly. “In order to retain such high standards, it is fundamental that Malta maintains its positive track record in offering efficient and attractive administrative services and customer approach, even upon increased demand.” Indeed, despite all service providers interviewed being thrilled at the growth of these industries, they believe that work in maintaining the quality must not falter, and that monitoring the field is crucial. “The Malta flag is on the white list of the Paris Memorandum of Understanding, meaning that fewer and fewer vessels are being detained for breaches of international conventions and regulations,” argues Dr Fenech. “This does not happen by accident but by virtue of implementing all the international regulatory regimes applicable and by ensuring the highest of technical standards.

“Malta’s ship register has grown not only in numbers but also in repute.” - Joseph Bugeja, Chairman, Transport Malta

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“Whilst the maritime industry will continue to grow with new builds, the aviation market will gear itself more towards charter services.” - Dr Cedric Mifsud, Founding Partner, Mifsud & Mifsud Advocates This means that the regulator, the Directorate of Merchant Shipping at Transport Malta and we, the service providers, need to cooperate and work hand in glove to ensure that standards are maintained and that our reputation keeps on going from strength to strength.” “Constant monitoring of what is taking place at an international level is essential,” reiterates Dr Mifsud. “As a jurisdiction we must never be happy with what we have and we have to continue searching for ways to improve our product.” However, other jurisdictions are not the only challenge for the industry, according to Dr Mifsud. “Geo-political shifts affect the aircraft and maritime markets too. “Recently, President Trump’s importation taxes and the retaliatory tariffs placed by the European Union have affected the importation of yachts and other highend assets into the EU. Malta within the European ambit has to see how to overcome the protectionist wave that has engulfed the cross-Atlantic trade.”

The future of vessel and aircraft registration “According to the International Maritime Law Organisation, 90 per cent of the world’s trade is carried by sea, and it is by far the

most cost-effective way to move goods and raw materials around the world en masse,” states Dr Fenech. So what does the future hold for the Malta flag in both sectors? “One can only prospect that the Malta flag, both in cases of ship and aircraft registration, will continue to grow,” says Dr Abela. “The Maltese aviation register has already proposed itself as a flag of confidence, and one can predict that it will follow in the footsteps of the shipping register.” Recently, Malta registered its largest plane yet in the aircraft register, an Airbus A380 double-decker, which is actually the largest operational passenger aircraft in the world. “This augurs well for the flag’s future,” Dr Abela states. “Local advancement in other areas such as the financial services sector and the possibility for managers to conduct their operation from within a Maltese company structure are also important in shaping Malta as a top choice of flag.”

“The Malta flag is on the white list of the Paris Memorandum of Understanding, meaning that fewer and fewer vessels are being detained for breaches of international conventions and regulations.” - Dr Anne Fenech, Managing Partner, Fenech & Fenech Advocates 26

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“One can only prospect that the Malta flag, both in cases of ship registration and aircraft, will continue to grow.” - Dr Annelise Abela, Advocate & Associate, EMD Mr Bugeja agrees and claims that Malta’s maritime industry has not yet reaped its full potential, as building blocks which will push the aviation industry to grow further are still being put in place. “With the worldwide aviation industry growing at a remarkably fast rate, Malta looks forward to continue expanding its already impressive aviation cluster by attracting more aviation companies to set up their business in Malta, as well as related ancillary services,” he says. “The opportunities to establish Malta as a platform for aviationrelated activities exist. As Malta responded to past opportunities, it is important to put in place, maintain and sustain the basic building blocks which are required for the aviation sector to grow... the end goal is to create a high value-added aviation sector, where new job opportunities are created and existing ones are sustained through the availability of a skilled workforce, revenue generation and economic growth,” Mr Bugeja continues. According to Dr Mifsud, although both markets will experience growth in the future, the areas of growth will evidently differ between one industry and another. “Challenges will remain; however, it seems that the maritime and the aircraft markets will continue to grow,” he believes. “They are related markets but different in nature. Whilst the maritime industry will continue to grow with new builds, the aviation market will gear itself more towards charter services. Therefore, aircraft order for business jets might increase substantially as they were in the past.” Dr Fenech concludes by stressing the importance of maintaining a strong work ethic. “Provided that Maltese service providers and the Regulator maintain a first class and efficient work ethic where we all understand that time in shipping means money and that nobody owes us a living, but that international owners and financiers will only continue to come to us provided we give them a first-class service across the board, then I can only see this sector going from strength to strength.” cc OCTOBER/NOVEMBER 2018

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A local firm with global outreach Less than one year after it opened for business, Rosemont Malta is fast establishing itself in the local financial services sector. Martina Said meets its Directors to find out about the company’s portfolio of services and plans for growth.

et up in April 2017 and licensed by the Malta Financial Services Authority in January 2018, Rosemont Malta is a small but growing firm with great aspirations. I meet Mark Ciappara and Rishi Bonello at their office in Sliema – one of a group of offices dotted around the globe forming part of the Rosemont International brand. “Rosemont is an international company with its head office based in Monaco, and with a presence in the UK, Thailand, Hong Kong, Singapore, Andorra, Mauritius and Vietnam. The Rosemont office in Malta is geared to provide a number of boutique services, ranging from the setting up of companies, yacht registration, residency and citizenship solutions to corporate structuring and administrative services, which would target clients mainly from Europe, Asia, Africa and the Middle East,” they explain. The services offered by the firm are varied. Rosemont Malta provides advice on the choice of business entity; company

Mark Ciappara

formation including the provision of registered office, directorship and company secretarial services; back-office support and administration; yacht registration and structuring; tax planning and payroll services. Rosemont Malta is also able to assist clients on local residency and citizenship solutions, where the company holds the necessary licenses to act as an agent for various schemes, including the Individual Investor Programme (IIP) and the Malta Residency and Visa Programme. The Group’s structuring and international nature allows to target clients from all over the Group and hailing from different industries, all of whom are handled by a team of over 70 professionals, ranging from lawyers, accountants and solicitors to tax advisors and notaries. “Although Rosemont is rooted globally through its various offices which are managed separately, we all form part of a well-recognised international brand. We share resources, ideas and knowledge easily across our offices and through the alliances that we have in place,” says Mr Ciappara. One of the firm’s top services is yacht management, with a dedicated company based in Monaco that exclusively focuses on providing such services. “The yacht management service we offer through this company is a comprehensive 360-degree service on yacht structuring – from negotiating to the purchasing or construction of the yacht to the registration, mortgage and management of the yacht, including health and safety, crew payroll and all,” Mr Bonello says. Mr Ciappara adds that this service alone gives Rosemont Malta a competitive advantage in this field. “We can register a vessel in Malta, obtain the Maltese Flag and then co-ordinate with our Monaco Yacht management team to continue with the administration, legal works and the overall management of the vessel. This is

“Rosemont is an international company with its head office based in Monaco, and with a presence in the UK, Thailand, The Cayman Islands, Hong Kong, Singapore, Andorra, Mauritius and Vietnam.” OCTOBER/NOVEMBER 2018

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“Blockchain will be an opportunity for the whole country – it will shape the way we do things and the way Government interacts with civil society.”

Photos by Alan Carville OCTOBER/NOVEMBER 2018

where our synergies work in a very efficient manner.” The Directors are quick to add that the work that’s been done by successive local governments in the yachting sector has been crucial in putting Malta on the map. “The Malta flag is now the fifth largest registry in the world, and considered number one in terms of reputation across the EU.” Moving on to the main challenges within the local financial services industry, Mr Bonello and Mr Ciappara are in agreement over one major challenge, which relates to the local banking sector. “Unfortunately, local banks are shying away from corporate business and hence it is becoming increasingly difficult to open a company bank account for foreign individuals in Malta,” they explain. The Directors add that, while they understand that banks have their own challenges as they’re highly regulated by international bodies too, they are an integral part of the system, which is why it’s important for both sides to come together to find a middle ground. Beyond this, they add that another challenge in their industry is compliance. “Certain improvements on client checks were welcomed by everyone in the industry, as it gives us more credibility and stability as service providers. However, compliance does place a lot of pressure and often, there’s little time to spare to add value to the client, particularly for a firm the size of ours.” Despite the restrictions, the emergence of new technologies, such as blockchain, is proving to be quite the opportunity, which the firm believes is a positive prospect for all service providers, if done properly. “Our international network of offices is already widely involved in blockchain, which is an added advantage for our firm,” say Mr Ciappara and Mr Bonello. “Locally, we intend to obtain the necessary licence to act as a Virtual Financial Assets (VFA) agent, and with Malta being the first country to regulate blockchain and VFAs, being a Malta company operating within the local market is definitely an opportunity for quality business. That said, blockchain will be an opportunity for the whole country – it will shape the way we do things and the way Government interacts with civil society – it will be exciting to see where we will be in a few years’ from now on this front.” The firm believes that Malta offers plenty of other opportunities in different sectors,

Rishi Bonello

One of the firm’s top services is yacht management, with a dedicated company based in Monaco that exclusively focuses on providing such services.

one of which is the real estate sector. “Real estate planning for high net-worth clients is a niche market for our Monaco office, but it has yet to pick up the pace locally. In light of the current construction boom, there are many properties out there over the €1 million mark that can be marketed not just to citizens interested in citizenship or visa schemes, but even to clients who simply want to own property in Malta, and that is something that we need to focus on more as a jurisdiction.” Looking ahead, Mr Bonello and Mr Ciappara are seeking to concentrate on new and emerging markets in the near future, particularly relating to blockchain and real estate planning, but also in the area of commercial shipping. “While already a success story in Malta, Rosemont International hasn’t exploited commercial shipping as yet, having focused on the superyacht segment so far. With Malta being the right jurisdiction to explore this – which, along with Monaco, Hong Kong and Singapore is a strong commercial shipping hub, be it for management or vessel registration – it’s an area that certainly merits looking into. We also intend to expand the workforce of the local office significantly by the end of 2019.” cc 31

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Is social media distracting employees? Social media has chained us to our devices, shortened our attention spans and made us unable to focus on accomplishing a task without procrastinating. Or has it? In truth, opinions vary. Marie-Claire Grima spoke to four industry leaders to find out what they think.

n a world where hardly anybody is ever offline, digital distractions abound. From scrolling through Facebook to getting rapid-fire news updates on Twitter, to idling away on Instagram, we spend our daily lives sailing on a sea of digital chatter which never seems to abate. But what effect is this constant onslaught having on productivity at work, and the ability to focus on a single task without having to stop for frequent social media breaks? How much of an employee’s online persona reflects who they are as a person? And what does it say about them as an employee? “Undoubtedly social media has revolutionised the way we communicate with each other, and at face value it would possibly appear that it brings benefits from a business point of view, in so far as people can connect with each other instantly and receive answers in real time,” says Dr Roberta Lepre, Managing Consultant at Weave Consulting. “However, it is also a fact that the constant access to social media through mobile technology is a great distraction, particularly when it comes to tasks which require substantial focus and concentration. I am not aware of any local studies which have attempted to measure the impact of such distractions on productivity levels, however my intuitive answer is that social media and other forms of digital communication have a negative impact on labour productivity. I would dare say that it has definitively gotten much worse since the widespread use of OCTOBER/NOVEMBER 2018

mobile technology, and the negative impact is widespread amongst various sectors, both those which are desk-based, as well as those which require interaction with customers and suppliers.” Dr Lepre says that when it comes to work which requires substantial focus, the worst consequence of digital distraction is that one loses concentration. “The ability to do ‘deep work’ is diminished,” she says. “With regards to customer-facing tasks, I believe that a ‘distracted’ worker is less amenable to give the customer attention and care.” She states that employees should appreciate that their employer is paying them for their time in order to carry out specific work according to their job description, and that unless social media use is related to the task at hand, social network use during working hours should be substantially limited. “On the other hand, one needs to keep in mind that nowadays an employer-employee relationship is based on mutual trust and respect, and therefore an outright ban might be counter-productive. As with most other issues, a two-way communication system is key. My suggestion to employers is that they should find ways to communicate their concerns to their employees, and allow them to recommend solutions which lead to a winwin situation. I believe that most employees are mature and by engaging them in an appropriate manner, a fair compromise can always be found.” Josef Said, Managing Director of hiring

firm Konnekt, does not consider the rise of social media to have created a particularly unusual phenomenon. “Distractions were, are, and will be everywhere. In the past, the discussion was centred around cigarette breaks or calls received on mobiles.” He says he believes the situation has actually improved in the past few years. “People realise that social media is a time sink. The drop in productivity and a shift in what people do in their leisure time are very hot topics. But there is more awareness that you should control your social media consumption. Apple has also introduced new tools to make their users more aware of how they spend their time.” Mr Said says that trying to enforce a social media ban can backfire, recalling a client the company had in 2010 that blocked access to Gmail, Yahoo, Facebook and a few other sites. “It was not very smart as they soon realised that everyone moved to using their mobile instead of their work PC. At Konnekt we do not monitor or block any sites. People are trusted and they are accountable – they are aware that if they are silly, there are consequences to actions.” He suggests instead that employees have to be made aware of the issue, and that expectations have to be set. “If companies have people spending too much time on social media, they must re-think their staffing requirements. In other words, if their employees have time to spare on social media, then they do not have much to do. 33

CC COVER STORY If someone is abusing, it is simply a question of sitting them down and making your position clear. As explained earlier, nowadays most people have smartphones and mobile data connections are cheap. Playing cat and mouse is useless. The focus needs to be on deliverables and communication.” Another issue that the rise of social media has raised is how employees should conduct themselves in public social media circles. How many times have we come across someone mouthing off on a Facebook group, for example, hovered over their profile information, and discovered where they work? Doesn’t this reflect badly on the company that employs them? “Companies should set expectations with their team members. I believe that guidelines are important,” Mr Said says. A company is made up of people and how those people act is a reflection of the company. If anyone is not comfortable with the guidelines, they can move on to another employer. From my experience, people understand this, and are very much on board with the company position.” Mark J. Galea, Managing Director at Quad Consultancy, agrees that employees need to be made aware that the way they behave also reflects on the company they represent. “Every single person is an individual, and that individual is the same person whether they’re at work, at home, or at leisure. Recently, there was a low-level chef who posted a complaint – on his personal Facebook profile –about the Maltese in general, stating that they know little about food. The negative reaction from the Maltese who saw that post wasn’t only aimed at the junior chef, but also – in the majority – towards the restaurant that employs him.” Mr Galea says that the same also applies to personal conduct. “Statistics show that

Photo by Jan Zammit

“My suggestion to employers is that they should find ways to communicate their concerns to their employees, and allow them to recommend solutions which lead to a win-win situation.” – Dr Roberta Lepre, Weave Consulting many people who make it through the first shortlist of CVs fall through after the prospective employer looks up their profile on social media. CVs and interviews are a sales exercise for the candidate. However, you can get a more realistic picture of the person you may be employing by taking a look at how they behave in their real life.” Mr Galea says that being constantly ‘digitally distracted’ does inevitably lead to a loss in productivity. “In the case of customerfacing employees, the negative effects may be directly experienced by customers who are (not) greeted by employees who are more interested in looking at their screens, rather than serving their customers.” However, on a personal level, he is much more interested in productivity than policing their comings and goings online. “I am completely against banning social media at work. Even if you ban employees’ access from the company’s computers, they can always use their mobile phones.

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“If companies have people spending too much time on social media, then they must re-think their staffing requirements. In other words, if their employees have time to spare on social media, then they do not have much to do.” – Josef Said, Konnekt

Employers can ban social media, but employees may still waste time at the office around the water cooler, in the kitchenette, in the bathrooms, and other places. So what do we do? Remove all water coolers? Lock down the kitchenettes and the bathrooms?” “On the other hand, I am definitely in favour of education. I believe that employees should be trained about being smart with their time. If the members of my team work smart enough and hard enough to meet the agreed deadlines, then I don’t mind that they spend time on social media. It becomes a matter of serious concern if unproductive employees waste their time on other issues instead of focussing on their performance.” Dr Christian Ellul, Director of corporate services provider E&S Group, says that besides the loss of work productivity, overusing social media at work can lead to “weak real-life connections with colleagues, deadlines being missed and low quality of operations. OCTOBER/NOVEMBER 2018

How do the experts deal with digital distractions? “I keep the number of apps on my devices to a strict minimum and switch off the notification function. However, I have still not completely removed all digital distraction from my daily routine, especially since I also use social media for work-related tasks, and therefore drawing boundaries is tricky!” – Dr Roberta Lepre, Weave Consulting “I am mostly in meetings and as a result my mobile is off or on silent. I return all calls in the evening or the following day. Mobile data is off and I only switch it on when I need to check emails or messages. I am not naturally inclined towards social media and disciplined not to have distractions.” – Josef Said, Konnekt “I am focused on my goals and deadlines. There are times when I don’t visit social media and news sites at all. Other times, I may visit these sites late in the evening before I go to sleep. However, if I sometimes have a minute or two to spare, I do pay social media sites a visit.” – Mark J. Galea, Quad Consultancy “I try to concentrate on the tasks one by one, checking the messages once in a while to maintain communication.” – Dr Christian Ellul, E&S Group

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Indeed, we don't approve of wasting time on social networks during working hours, and usually don't provide access to Facebook or Twitter from the desktops in the office, unless the employees are involved in marketing, content writing or communications.” However, he adds that not all social media channels are cut from the same cloth. “Facebook and Messenger can be really distracting while concentrating on a particular task, but Twitter or LinkedIn can be more industry-oriented, as long as you follow the people and channels which publish useful content.” On the subject of employee behaviour on social media channels, Dr Ellul says that there should be a distinction between personal social channels and business networks. “There is no opportunity – and usually no real need – to restrict the behaviour of employees on their own Instagram and Twitter. But on social networks like LinkedIn, employees are obliged to mind their language, their followers and the content they publish. Sharing corporate news in personal media, mixing them with jokes or low-quality personal content does not look that favourable.” cc

Photo by Alan Carville

“Employers can ban social media, but employees may still waste time at the office around the water cooler, in the kitchenette, in the bathrooms, and other places.” – Mark J. Galea, Quad Consultancy

“Twitter or LinkedIn can be more industry-oriented, as long as you follow the people and channels which publish useful content.” – Christian Ellul, E&S Consultancy 38

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CCCC COVER CCIN in INTERVIEW BUSINESS FIGURES figures STORY

IN FIGURES:

SOCIAL MEDIA USE IN MALTA

94%

62%

The percentage of Malta’s population that makes use of the internet.

The percentage of young internet users who are active on social media.

The percentage of Maltese social media users who use these networks solely to look at other people’s content and comments.

83%

71%

The percentage of internet users who own a smartphone.

The percentage of older internet users (between 65 and 74 years old) who are active on social media.

The slim percentage of Maltese social media users who generate new content, indicating a rather passive local social media culture.

87%

73%

Facebook is by far the most accessed platform in Malta.

The percentage of people who prefer to access ads offline, rather than online.

79%

61%

56%

The percentage of internet users who use the web to use online social networks.

Out of all apps, social network apps are the most frequentlyused, followed by maps (58%) and weather apps (54%).

The percentage of people who have been drawn to visiting social media platforms via traditional media.

Source: Malta International Airport OCTOBER/NOVEMBER 2018

Source: Gozo In Figures, National Statistics Office, Malta

The percentage of adult internet users in Malta who are active on at least one social network.

Source: Social Media Usage Trends in Malta in 2018 – Misco, Eurostat

80%

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On the up and up Business Concept International plc, the holding company for management and accountancy firms Fairwinds Management Ltd and Accounting Services Ltd, has been registering year-on-year profit since its inception. Rebecca Anastasi talks to its Chief Executive Officer, Adrian Sciberras, about the firm’s new ventures and growth opportunities.

ince its inception in 2016, holding company Business Concept International plc (BCI plc) has focused efforts on providing corporate solutions to enterprises in various sectors, whether by administering these businesses through Fairwinds Management Ltd, offering accountancy services through Accounting Services Ltd or ensuring productive partnerships which lead to year-on-year growth. “I do not only think of the bottom line – I think as a businessman,” says Adrian Sciberras, the company’s Chief Executive Officer. Indeed, he is a man on a mission, with a ravenous appetite to foster opportunities which will result in concrete profits. His insight into the operations of small, medium and larger enterprises stems from decades of experience in various roles within the business sector. “I learnt how to manage a business by working from the ground up. I started my career 20 years ago, working in a family business while also studying to be an accountant: I went in as a book-keeper, but eventually I became the company’s financial controller. I spent over 12 years there and my position allowed me to take on many different roles and taught me the importance of flexibility: I learnt about purchasing, store-keeping, management and even secretarial work,” Mr Sciberras says. This stood him in good stead, for he was able to understand what makes a business successful.

“When I branched out on my own as a freelance accountant – I was working tirelessly day and night, spending four hours a day driving, on the go 12 hours a day, six days a week – I knew how I wanted to succeed in this business. And within six months, I had 60 clients,” he recounts. It soon got too much for one person to handle, and the Chief Executive Officer was pushed to make a decision. “I kept on getting more clients, so I said, ‘it’s now or never – I need to decide whether to stay freelance or develop this into a business,’” he says, looking back on those early days. He decided to take the plunge – to “take a risk” as he puts it – despite the uncertainty and the apprehension he felt, and he employed the first person in the second half of 2012. “From that period on, I took a small office and started growing, both in terms of people and in corporate terms. And the following year, I decided I wanted to create something out of it – I wanted to develop a name – and this is where the first companies were formed,” the CEO asserts. Fairwinds Management Ltd and Accounting Services Ltd were launched in 2013, and by the end of 2014, the two companies had grown to a complement of eight full-time employees, with the prospect of more business coming through the doors. This growth pushed him to consider the necessity of creating an official structure which would link his business interests. “I was lucky enough to meet an accountant – William van Buren – in 2015, now an Executive Director of the company – who had experience working in a big firm; he was instrumental in advising me and helping me plan the structure of the company.” And in 2016, BCI plc, a holding company merging Mr Sciberras’ different ventures, came into being. The motivation, Mr Sciberras says, was to establish a structure whereby both the sub-companies – as well as future subsidiaries – report to the holding firm, allowing for further growth possibilities. “The plan is to continue to flourish,” the CEO explains. “Today there is a lot of competition and you need to ensure strength in a company. In fact, at the moment, we are raising money through our own profits – from our own ventures and operations – and seeking additional funds from third parties to be able to invest in forthcoming projects. We already have a capital of €500,000, paid up, and we are on track to exceed €1,000,000 in 2019,” Mr Sciberras explains. These will be used to finance new and existing property projects, the CEO states. “The

“I kept on getting more clients, so I said, ‘it’s now or never – I need to decide whether to stay freelance or develop this into a business’.”

property market has been very robust these past few years, with heavy investment being seen in the sector. Our passion for the industry has led us to decide on venturing into creating a property portfolio which will see passive income raised for the company and its shareholders.” This, according to Mr Sciberras, means diversifying their offering to include a variety of rental investments, partnerships with other investors, as well as backing high-end developments. A key element is the building of new head offices for the company on a site earmarked on the Birkirkara Bypass. “We’re growing very fast – 30 per cent year-on-year – and we need new space. The head office will be 400 square metres, double our current space, so it will accommodate us better.” BCI plc is also seeking to grow – and to raise funds for these investments – through mergers and acquisitions. “We’re hungry to develop by OCTOBER/NOVEMBER 2018

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Photos by Alan Carville

buying existing operating companies, those related to our business, such as accounting or auditing firms, which will enable us to bring more partners on board and make it easier to transact and do business.” This strategy, according to the CEO, may involve spending more of the firm’s profits, but is essential for success. “I am sacrificing the bottom line to enable growth in the top line. I need to spend and to invest in order to allow the business to fully develop. The plan is to hire more staff, so we can handle clients better with a bigger structure; and to keep on increasing revenues until the bottom line is healthy. I don’t want to be conservative, I want to create new business opportunities,” Mr Sciberras says. And it’s not only about the accumulation of wealth, but about the smaller pleasures, he says. “My dream is to even have my own brand of coffee!” the CEO smiles. OCTOBER/NOVEMBER 2018

“I do not only think of the bottom line – I think as a businessman.” One of the main drivers of the company’s success and ambition are its growing number of employees, Mr Sciberras states, who have been instrumental in getting the business to where it is today. The CEO describes the way in which he rewards staff at the firm – by donating shares, depending on their loyalty, work and perseverance. “Growing also means involving my people, and those who are part of my success get a small share of my company. My employees currently own two per cent of BCI plc but this will go up to 10 per cent. Everyone can then feel part of the company, and when the company profits, so will its employees. Many – such as Charlene Sciberras who introduced me to the marketing aspect – have been instrumental

in the development of the business. I may be the image of the company, but I consider all my employees to be key to the firm.” This spirit of collaboration even extends to the partnerships the CEO hopes to nurture through the acquisition of funding for forthcoming projects, as well as by means of potential mergers and acquisitions. “Eventually when the company manages to raise the money it needs, we will introduce more roles for nonexecutive directors. I’m going to need partners with whom to share this growth,” Mr Sciberras underlines. But, for the time being, “our focus is on what’s coming up”: the fostering of business relationships and the continued endeavours to provide high-end administrative and accounting services to BCI plc’s slate of clients. cc 43

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A firm belief in a tailor-made service Managing Director Mihai Cheregi and Relationship Manager Ramona Micallef of United International Management (Malta) Ltd tell Joanna Demarco about United’s organic growth within Malta and beyond, and the philosophy which they hold firmly at the core of their services.

nited International Management (Malta) Ltd is one of several local businesses offering corporate services. What differentiates them, however, is that they pride themselves on providing a competent service with a personal, tailormade approach; adopting a philosophy which they believe makes them a trustworthy choice with clients, and, furthermore, competitive among the bigger players in the field. United International Management (Malta) Ltd in Malta is part of United, an independent provider of finance and trust services in the international market. United, established in its current form ten years ago, has grown to mark its presence in a number of countries around the world, including Curaçao, London, Amsterdam and Luxembourg, opening its doors in Malta in 2009. As a service provider, it is licensed by the central banks within each country in which it is present. The locations of its offices are specifically chosen to provide an attractive option for clients, many of whom are multinational, and “vary from high-networth individuals to quoted companies.” Despite the geographical distances, the company strives to provide a service which is both personal and focused, and also comprises a “fully-fledged” bank located in Curacao, which is used by residents and legal entities based in that jurisdiction and in other jurisdictions like Malta, in which there is no

legal requirement to have a bank specifically upon Maltese shores. Office rentals, directorship, address registration, legal arrangements, accounting and, if needs be, liquidation, are among the services the company offers. “We are really at the centre of the companies,” says Managing Director Mihai Cheregi, explaining, “we help clients run their companies in a transparent way through trust and experience.” Growing organically, United now engages about 150 employees worldwide, a number which they consider ‘small’ when compared to other companies in the field. “It helps that we are small because it means that we can work closely with our clients,” says Mr Cheregi. “However, it is also the result of a philosophy which we have adopted since the very beginning. All the people who have joined our venture have been in the business for a long time, many more than 20 years.” Ramona Micallef, Relationship Manager, adds that the nature of the company and the needs of their clients allow them to offer a tailor-made service. “This means that with every client, even if they have different business activities, we can focus on their particular needs and not treat them like just another client within the portfolio. Thus, the relationship they have with us is a strong one.” “This does not make us unique as there certainly are other companies that adopt this

“We help clients run their companies in a transparent way through trust and experience.” - Mihai Cheregi, Managing Director

approach, but it does make us competitive in comparison with the larger firms,” says Ms Micallef. In this field, regulations, both in Europe and internationally, are ever-changing, hence competence is a vital factor at United. “We are very keen on continuously training people, and that is one of our key aspects,” Mr Cheregi affirms, going on to emphasise the vitality of maintaining a strong compliance team, which is a must to handle compliance issues, which only increase in importance as time goes by. “It is very important that we are always up-to-date,” he continues, adding that independence is another key factor which he deems a strength of the company. “What we see in the market is consolidation. The big companies attempt to get the whole market. But I think a group like us, which is strong and independent, is something a client looks for.” So, I go on to ask, what is it about Malta that drew United to it? “Today in Europe, there are several jurisdictions which are very attractive for multinational companies,” Mr Cheregi explains, maintaining that “Malta has a very good shipping and yacht register, great possibilities OCTOBER/NOVEMBER 2018

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From left to right: Ramona Micallef (Relationship Manager), Mihai Cheregi (Managing Director), Angie Galea (Company Secretary) and Christine Fenech (Corporate Services Administrator)

for big companies to function in its airport, as well as a strong entertainment business, among other factors.” “Moreover, Malta is a European Union member state and follows EU rules. I think that makes it a very attractive country to many people, as is the case with Luxembourg and the Netherlands (for other reasons). Each country has its own specific advantages for our clients, and we are trying to find the best jurisdictions to suit them, sometimes even combining jurisdictions.” Ms Micallef also points towards Malta having “a very attractive tax regime” as an additional advantage. “Everyone is looking for a structure [within a country] that is efficient for them, for cash management or logistical purposes; and that is where we are helping our clients

set up and run their structure,” Ms Micallef continues. “However, we will not interfere in their decisions, or tell them where or how to invest.” Looking toward United’s future, Mr. Cheregi and Ms Micallef agree that the company’s main

goal is to continue growing organically. “We are trying to continue to develop and position ourselves, and perhaps look into jurisdictions where we are not yet present,” says Mr Cheregi, to which Ms Micallef adds her hope of seeing United Bank extend to Europe. cc

“With every client, even if they have different business activities, we can focus on their particular needs and not treat them like just another client in the portfolio.” - Ramona Micallef, Relationship Manager OCTOBER/NOVEMBER 2018

CC Economy

A new economic compass 10 years on from the last economic recession, it is a good time as any to ask what Government and policy-makers might learn from this catastrophe and the way forward to prevent and safeguard against future ones. Minister for the Economy, Investment and Small Businesses Chris Cardona shares his take on the local scenario with The Commercial Courier.

â&#x20AC;&#x153;W

ho knows whether we will experience another economic recession in our lifetime? One take-away the 2008 financial crisis has definitely taught us is that the unthinkable can truly happen, and such collapses can happen at any time. The last one seemingly came out 46

of nowhere, and banks have changed the way they operate, resulting in ever-harder access to finance. Although global economic growth has been robust over the past two years, the current economic and political contexts are still somewhat fragile. Ten years on, the European

economy is doing well, but it is in remission rather than cured. Deficits are falling though; 19 countries left the Excessive Deficit Procedure, including ours, and debt levels are steadily declining. However, the most encouraging news is the fact that recovery is broad-based. All euro OCTOBER/NOVEMBER 2018

CC Economy

“We keep one eye on risk indicators and the other on growth.”

area countries are growing above trend and unemployment is declining. Another important factor for the robustness of this recovery is that investment is now playing a stronger role. Its recovery however, has had long-lasting implications, bringing about a wave of populist movements. The effects of failing to take precautions for an economic collapse and inegalitarianism recovery measures have led to an erosion of trust in institutions. Brexit is by no means soley economically related, but the correlation is too striking to be ignored. According to Europe’s populists, the solutions are relatively simple and straightforward. Just close the borders, leave the eurozone, leave the EU and don’t sign any more trade deals in the future. Malta was spared much of this economic turmoil. However being a global player, we are also vulnerable to international vulnerabilities. In building a ‘recession-proof’ economy, as Government we know that prevention is better than cure. We are actively protecting what we already do have, which is just as important as trying to get more. We strive to take bold visionary and inclusive decisions, but we are anything but risk-takers. We look out for risks, pore over them and do our best to eliminate and mitigate risk. Our daring foray into new niche markets such as fintech, blockchain and medical marijuana production were all calculated risks. We keep one eye on risk indicators and the other on growth. Our economy is currently doing extremely well, but we are not resting on our laurels – instead, we’re doing our best to diversify our portfolio. Now more than ever, when we are doing well is the time to rebalance and to remove risk. From day one, this Government’s aim has always been to create significant economic growth in order to cut our deficit in a sustainable way. In that fashion, we have consistently registered a surplus in every quarter for the past year, resulting in the highest surplus in the European Union. Malta’s strong economic performance has been lauded over and over again by various international entities such as the European Commission, the International Monetary Fund and prominent credit rating agencies. In the second quarter of 2018, in real terms the Maltese economy grew at the rate of 5.9 per cent – three times the EU average In 2018, after five years of rapid growth, we are undoubtedly dealing with new social, economic and environmental challenges that are the natural tradeoffs of a booming economy. We believe a sustainable and thriving economy is not merely one with great statistics and more cash in the bank, but an essential part in the nation’s other developmental goals. Building economic resilience to shocks is OCTOBER/NOVEMBER 2018

Photo by Reuben Piscopo, DOI

more important than ever in today’s volatile context, with rapid technological change, geopolitical tensions and unraveling trade deals. Malta’s long history of colonialism, being under siege and having limited resources means being agile and adaptable is in our genes. I truly believe that entrepreneurship is hard-wired into the Maltese psyche, while lateral thinking is a Maltese export. Fundamentally, the do or die of our economy is our ability to embrace innovation, however this goes beyond the limited idea of research and development. I think what the nation has yet to come to terms with is that we are truly in the fourth industrial revolution. If we had to go back only 10 years let alone to when I was young, the way we educate, communicate, work – all dimensions of human life – have changed, and they have changed the reality for millions of people around the world. The new opportunites are bountiful. At the same time however, the classic business model has become obsolete, and requires constant keeping-abreast of market trends. Reinvention is neccessary to stay relevant, let alone stay competitive. A nation too runs the risk of becoming irrelevant, and Government is applying an economic vision that embraces innovation and building on our human capital. In the relatively short period since we became an independent state, a nation boasting no natural resources and limited connectivity, we have revolutionised ourselves into the country with the leading and fastest-growing economy in Europe right now. It is no longer possible to rely solely on efficiency and cost-cutting for economic success. Agility and future-readiness are key in a changing world and in this globalised market, the main currency is ideas. We consistently try to be an administration that is forward-looking and able to break away from the status quo. This encourages innovation at all levels for the best ideas to emerge. As Government, we are striving to establish a modern economy driven by the new ideas of

a whole roster of business people. A traditional economy produces known specified goods, whereas a modern economy dreams of what it might produce and tries to turn their dreams into reality. This can only be brought about by policy. When prejudices are shed, social freedoms expanded and more people are allowed to participate in political, economic and cultural life, the more people are happy to be a part of a society and encouraged to be themselves and to thrive. This is what makes up a dynamic society and economy. It can be disconcerting for members of the old order who want to maintain the status quo, but these are the conditions in which, as history books can tell us over and over again, entrepreneurs have done well. We believe investing in people is good not only for social, but economic outcomes. As a Labour Government, one of our value pillars is addressing inequalities. This is also an important factor in making an economy ‘recession-proof’. Having the few with too much wealth translates into a weak buying base and an economy becomes too weak to support full employment. Sadly the biggest take-away of the last recession is that you never know when it’s going to hit. I hope that all businesses, local ones especially, are not blinded by current growth and learn from the past. To have lived through and witnessed such a historic turning point and not learnt from it is a shame. What’s for sure is that competitive advanced economies rebounded much more quickly. So we are taking the necessary long-term and holisitic steps to gurantee our agility and breeding an innovative and entreprenurial mind-set. As I said, true prosperity is not only statistical figures, but quality of life. Our priority as Government is to raise living standards to achieve equality, sustainabilty and growth that provide opportunities for all members of society. I have no doubt we have the propensity to do that – we have been punching above our weight for a while now.” cc www.economy.gov.mt 47

CC FINANCE

Investing in FIMBank’s most important asset – its people The Commercial Courier speaks with Christine Coleiro, Group Chief Human Resources Officer at FIMBank, about the importance that the Group gives to its people, its investment in their long-term development and career prospects within the bank.

What measure of FIMBank’s success do you attribute to the quality of its people? FIMBank’s customer-centric experience is provided by qualified specialist employees. Undoubtedly, this would not be possible without the dedication and professional competence of our employees based at our Malta Head Office and throughout our international network. Having engaged and committed employees who are strongly aligned with Group goals remains fundamental to our long-term strategy and success. How does the bank manage the continuous professional development of its people? Our employees are encouraged to not only further their studies in their specialised areas, but also to attend various programmes that will enhance their career. FIMBank uses a blended learning approach which amalgamates various modes of learning, from classroom-based to e-learning, to 48

webcasts and virtual classrooms. Over the years, we have intensified our investment in learning and development across all levels. This investment is aimed at providing valid successors for key roles within the Group. Skills such as teamwork, communication, commercial awareness, leadership, influence and problem-solving are fundamental to banking professionals. How do you ensure that FIMBank personnel stay on top of developments in these and other areas? Although employees in different roles require varying knowledge, skills and abilities, the most important characteristic for us is attitude. Our employees have a can-do attitude to achieve results. Business Unit Heads ensure that each employee keeps abreast of developments on the different aspects of their role. FIMBank focuses on developing employees at role level as well as the succession aspect. Employees are nurtured to reach their potential.

What kind of profile would the prospective FIMBank employee possess, in terms of personal and general professional qualities? There is no perfect profile or set of qualifications to become a FIMBanker. The ideal will be a balance between relevant qualifications and attitude. Over the years, we have moved to a more flexible qualification structure to attract varying talent coming from universities and colleges, as well as the industry. It is crucial that since FIMBank’s line of business is different to mainstream banking, candidates need to have a high level of learning ability and agility. The key to thrive in an organisation like FIMBank is positivity and a can-do attitude. We seek candidates who embrace our corporate values. For us, values alignment is crucial. In an ever-developing, fast-paced society, agile working has never been more important. What is the bank doing to develop a culture which allows its personnel to work towards an enhanced OCTOBER/NOVEMBER 2018

CC FINANCE approach to work-life balance? Work-life balance in its various definitions is important for everyone. We are committed to improving our departmental structures to cater for better flexibility as this is not always possible due to lean departmental structures. We continuously fine-tune and seek ways to enhance such arrangements for the benefit of employees and the organisation alike. Apart from the substantial opportunities, the bank’s employees also enjoy various financial benefits, such as subsidised home loans, retirement savings plans, health insurance, child care and fitness allowances. What importance does the bank give to the kind of working environment its people operate in? Can you tell us more about initiatives undertaken in this regard? The work environment is reflective of the people who work within it. We encourage a culture of initiative, empowerment and responsibility, which in turn increases the level of engagement of our people. Through weekly meetings, we encourage communication across all levels and departments. We also have an events team that organises activities designed to strengthen team-building and synergy within and across units through the Group. This year, we also introduced the concept of ‘business casual’ attire which was exceptionally welcomed by our staff.

within the bank where they might contribute more to corporate objectives and perhaps develop their career further? The FIMBank Group offers a diversified range of products and services to a wide client base across the world. This has been developing in line with business and economic trends in our markets. A recent example is catering specifically for the financial requirements of real estate developers in Malta. Nowadays, we have a unit which specialises in this area, and most of the team consists of employees from within the organisation. The key to internal mobility is the employee’s learning ability and agility, and the flexibility of starting afresh. Opportunities are indeed

available all the time. My only advice is that employees need to truly understand what they really want, and after careful consideration, take the plunge and try something different. The outcome leads to greater personal growth, and a broader and more fulfilling professional experience. We have employees who have moved more than three departments in their 10 plus years’ experience and others who have moved to other subsidiaries. We are always seeking talent and we encourage you to come and meet us. You might be the next FIMBanker. cc www.fimbank.com

“The work environment is reflective of the people who work within it. We encourage a culture of initiative, empowerment and responsibility, which in turn increases the level of engagement of our people.”

Technology is becoming a predominant feature in internal communications and the management of personnel interaction within organisations. Have such developments in these areas been embraced by FIMBank, and if so, how is this reflected in the bank's operations? To strengthen cohesion between employees and management, we have introduced a cloud-based self-service platform catering for all HR needs across the Group. We have also introduced an e-learning platform that encourages the concept of instant learning, as well as a blog-based communication tool with contributions from employees across the Group. The use of these new technologies, together with others in the pipeline, are strengthening communication flows between the various functions, as well as between Head Office and our global network. They are also leading to an increased cross-fertilisation of ideas and improved service quality. Career development is usually top of mind for most employees. Can FIMBank personnel look forward to finding opportunities for career development at the bank? Does FIMBank have a policy of encouraging selected personnel to move laterally to other departments OCTOBER/NOVEMBER 2018

CC make the headlines

A new exciting chapter for Express Trailers Engineering and mechanical work have always been ingrained in Express Trailers’ identity of a family business where the family members contribute their own expertise to bring their ideas to fruition. This legacy found its culmination recently when Express Trailers launched its new company Express Engineering Ltd, which effectively sees the company officially entering the manufacturing industry.

“We can safely say that with the setting up of Express Trailers Engineering Ltd, we are taking our company Express Trailers back to its roots when its eight founding brothers started building the company with their own hands through their ‘can do’ attitude, their talent and propensity for mechanics and engineering, and their sense of resourcefulness,” said Franco Azzopardi, Chairman and CEO of Express Trailers in his inauguration speech. The company was launched with an event at its premises, during which it also celebrated its 15 years of professional collaboration with the world leader in proprietary side-loaders: Hammar Maskin. The Swedish company produces proprietary side-loading equipment for trailers made of high tensile and lightweight steel that gives a huge advantage to all logistics operators

handling containers single-handedly – be it cargo, mobile offices for construction and other sites, as well as military mobile barracks and hospitals. Most side-loaders operated locally are Hammar side-loaders. A 15-year collaboration Express Trailers’ working relationship with Hammar started 15 years ago when Noel Vella, a member of the Vella family and one of the company’s directors who is also responsible for all Express Trailers’ fleet of trailers and trucks, started being regularly contracted by Hammar to conduct modification and servicing works to existent side-loaders for re-export. Noel succeeds his father Sebastian Vella, a veteran mechanic and tradesman, a tool-maker in the industry and one of the founding brothers of Express Trailers.

Photo by Rene Rossignaud

OCTOBER/NOVEMBER 2018

CC make the headlines

The Swedish company produces proprietary side-loading equipment for trailers made of high tensile and lightweight steel that gives a huge advantage to all logistics operators handling containers singlehandedly – be it cargo, mobile offices for construction and other sites, as well as military mobile barracks and hospitals. Over the past years in fact, Noel had already rebuilt and upgraded side-loading trailers for Hammar and exported them to customers in the UK, Spain, Portugal and the Caribbean among other countries. Hammar were very impressed with the work, the finishing and the efficiency with which they were serviced by Noel and his team. And being located in Sweden, Hammar also needed a company based in the Mediterranean, in the midst of the main European shipping routes through which to easily send its re-conditioned side-loaders back to its clients. The new company “We happened to have ticked all the right boxes and an agreement was reached between both companies. Growing business encouraged us to reorganise this operation and Noel OCTOBER/NOVEMBER 2018

proposed that this be taken over entirely by Express Trailers under a new company. This was the start of Express Trailers Engineering Ltd, which is now Hammar’s authorised partner in the Southern European region and the only recognised and accredited Hammar equipment rebuilder in the world. We are now being recognised for the highest engineering and tradesmanship quality standards,” says Franco Azzopardi. Express Trailers Engineering Ltd will be operating under the leadership of Noel Vella who will be leading a dedicated team of 25 tradesmen all focused on the work commissioned by Hammar, namely the rebuilding and reconditioning of sideloaders as well as on the servicing of Express Trailers’ heavy equipment.

Turning a risk into an opportunity “Express Trailers is a trusted company and the fact that we are being trusted by what is considered to be the world’s leading specialist manufacturer and supplier of side-loaders, says something,” adds Franco Azzopardi. “Our company’s story is one of constant adaptation and renewal. We realise the opportunity and we put all our expertise at play to turn that opportunity into a profitable venture. Today, we are regarded as specialists in transport and logistics, and therefore, our business is into risk. Everything carries a risk – the whole supply chain is riddled with risks. And in logistics and transport, we face many risks. However, in our job, we use our experience, our infrastructure and most importantly our professional people to turn such opportunities into success stories. I am very convinced that this new company will be another beautiful chapter in our company’s evolving story,” he concludes. cc www.expressgroup.com 51

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Gearing up for challenges in the superyacht industry The superyacht industry, like any other industry, constantly faces geo-political challenges that force it to adapt to the circumstances it is thrown into. Malta is not immune to these changes, and is working hard to be at the forefront of the needs that the industry requires.

Donald Trump and his protectionist approach to the United States market has hit crossborder trade of superyachts hard. The United States Administration has placed hefty tariffs on the importation of a wide range of goods being imported into the American market. The European Union has replied to such approach by applying retaliatory tariffs amounting to 25 per cent of the value to goods imported from the United States, which tariffs have come into force as of 22nd June 2018. These goods include superyachts. One can imagine the havoc that this has created for owners who have not imported their vessel into the EU and have it regulated under a United States regime. This does not only affect owners who have their yachts on other side of the Atlantic, but also includes vessels which are in European water (including Maltese vessels) and which were planning to carry out an importation of the yacht in the near future. The industry as a whole and other interested stakeholders are currently negotiating with both the European Union and the United States as this mutual approach on hefty tariffs has put owners, businesses and jobs at risk. Whilst confident that the situation will continue to develop into a positive solution, it has become ever more important to plan with the proper advice and experts in the field. Taking the wrong step might mean the application of hundreds of thousands, if not millions of euro in tariffs. The disruptions in the market concerning importation have to also be taken in the context of the changes in the yacht lease structures that have been in place for almost two decades. Whilst not on the way out, the Maltese lease structures are being refined to avoid any wrongful interpretation on their application. Changes are to be implemented shortly, and we are confident that the Maltese solution will continue to be attractive when compared to other jurisdictions. Leasing structures have been an important element of our jurisdiction in the superyacht industry, therefore it is essential that we retain the option for the owners and operators out there. Fiscal changes have not only been applied to the asset itself, that is the vessel. Malta has recently seen a shift in the application of national insurance for seafarers. Until recently, owners or seafarer employers were not paying National Insurance for their crew OCTOBER/NOVEMBER 2018

on the basis of an obsolete local law that stated that national insurance is not to be levied on seafarers. However overriding EU legislation necessitates that seafarers are to have their National Insurance paid in the flag state except for specific circumstances. This should be considered as an opportunity for the Maltese flag in view of the fact that Malta has one of the lowest National Insurance rates in Europe. This means that we should see a shift of more vessels towards the Maltese flag in order for owners and operators to regularise their position in a market that is becoming more concerned with seafarer rights. Although there might be a number of

challenges ahead, the superyacht industry has always evolved to become an ever more important player in maritime business. The signs are that the Malta flag will continue to be a strong player with the big toys out there, however this also very much depends on the adaptability of the service provider to the changes taking place. As service providers we must always focus on quality of service, as this is Maltaâ&#x20AC;&#x2122;s best business card. cc Cedric Mifsud is a Partner at Mifsud & Mifsud Advocates and heads the Commercial and Maritime Department. For more information contact us on E: cmifsud@mifsudadvocates.com.mt

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Cryptocurrency: what does it all mean? Is it all hype as some experts/analysts still insist it is? By Remy Damato, Creditinfo Malta Head Credit, Risk and Development

Six years ago, an unknown or unknowns, for reasons of their own, worked hard at designing, coding, creating and implementing a project that has taken the world by the storm – the Bitcoin cryptocurrency. Like technological breakthroughs do, it captivated the public’s imagination, in particular those who want to get rich quickly and those who are active on the wrong side of the fence. It was designed to by-pass all intermediaries and official controls – in other words, peer-to-peer transactions with no questions asked. Cryptocurrency was created specifically to be decentralised money that no central authority controls – decentralisation is at the very core of its definition – it is a currency that only exists digitally and relies on encryption for transaction security to be used by anyone in total privacy. In the cryptocurrency world transactions are recorded in databases known as Distributed Ledger Technology (DLT) and blockchain, similar but not the same. In a controlled environment, records of financial transactions are kept in ledgers that are audited yearly in preparation for the annual returns that generate the much-needed revenue of governments in the form of taxes – this loss of control and revenue, the decentralisation aspect and related anonymity of cryptocurrency has got governments concerned. They have hastily gone to the drawing board to create rules and regulations to clamp on or keep control of cryptocurrency.

With good governance (and elections) in mind, control over the country’s currency is particularly important for the government of the day because of the country’s fiscal policy, business environment, its effort to control crime, stimulate investment and spending, generate jobs, control inflation and recession. Cryptocurrency has a very wild trading pattern that has created millionaires, but which has also wiped out the life-time savings of the naïve. From lows of less than USD1,000, Bitcoin’s value shot up to just under USD20,000 on 17th December 2017, losing about 33 per cent by the 30th and a further 50 per cent in the first week of February this year. Its current value hovers between USD6,500 and USD7,500. The market is very susceptible to whispers of any type of control. In unregulated markets offering anonymity and less supervision than conventional currencies, Ponzi and other illegal schemes thrive. Over the last six years, an impressive record of theft, hacking and exchange closures, wiping out investments and hard-earned savings amounting to millions, is evidence of this. It is very evident that without consumer confidence/trust and the relative safeguards, it will be much harder to be accepted as an alternative currency or financial system. Cryptocurrency requires legitimacy to be accepted as an alternative financial system. Malta, a strong promoter of cryptocurrency, passed, in July 2018, The Malta Virtual

Financial Assets Act, the Malta Digital Innovation Authority Act and the Innovation Technology Arrangements and Services Act, making Malta the first world jurisdiction to provide a muchawaited legal framework. It is evidently clear that cryptocurrency is still surrounded by regulatory concerns, unknowns and lack of user trust, but barring major global setbacks, its forward trust will continue. According to a PwC survey released in August 2018, the continued blockchain platform/network development so essential to cryptocurrencies will enhance “the transparency of financial transactions, strengthen the flexibility of system operation and automate processes, thus affecting the record keeping, accounting and payment settlement methods of financial services.” Notwithstanding the high risks involved and the uncertainty, which are still very much a reality, cryptocurrency assets are now being accepted as security to obtain a fiat loan at up to 60 per cent loan-to-value rate. Being seamless, liquid and globally acceptable as a traded product, it makes it much easier and quicker to turn crypto assets into cash in the event of a loan default. Only time will tell whether it is all hype and whether cryptocurrency will take us back to where it all started. cc Creditinfo Malta Ltd, 199, Eucharistic Congress Road, Mosta. www.creditinfo.com.mt

OCTOBER/NOVEMBER 2018

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Payroll outsourcing: still thinking about it? Payroll processing is a delicate and complex area. Considering the peculiarities of cross-border taxation, tax incentives, tax statuses, fringe benefits and an array of other monthly adjustments, the effort and knowhow required to process payroll are on the increase.

The consequences of any delays in processing, incorrect calculations and lack of privacy can have significant consequences on both the employer and employee. Our dedicated team of payroll and tax professionals can put our clients’ minds at rest that their payroll will be processed confidentially and on time, in accordance with the highest quality standards and in full compliance with tax rules. We have ample experience in managing payroll of local and international clients ranging from micro to large entities. Benefits of payroll outsourcing 1. Time and cost savings allowing HR and management to focus more on core operations 2. Peace of mind that payroll is processed on time should a payroll executive become unexpectedly unavailable 3. Enhanced confidentiality around sensitive employee and executive compensation 4. Support from an experienced team of payroll, tax and accounting professionals fully abreast with the frequently-changing employment and tax legislation 5. Access to the multidisciplinary KPMG network, both at a local and international level 6. No training and software licence costs.

Amy-Jo Portelli

What are the greatest challenges? · Keeping up-to-date with the implementation of new provisions and legislation in the areas of social security, employment and tax rules such as persons returning to work, highly qualified individuals, fringe benefits, part-time work, overseas employment and lump sum payments · The globalisation of employment, crossborder workers and the opening up of the labour markets · Complying with internal and external requirements with regard to quality, processes and checks · Maintaining data confidentiality. How can we help? Our payroll outsourcing service includes all payroll activities from the initial data collection and input, right up to the payment of net salaries and all related administrative requirements. Apart from providing full payroll for all your employees, we also offer ‘executive payroll’ services that many times require added discretion. We work with our clients to help improve processes, though we do so while keeping our client’s present processes and solutions in mind. We therefore devote significant effort to the initial process set-up and agree with you about the most appropriate communication. Our dedicated payroll team can provide you with payroll services either in our offices or at client premises. We can also support your HR team by loaning one of our experienced and trained payroll executives who can temporarily handle payroll processing in the event of temporary staff shortages or where expert knowledge is required. Our outsourced payroll services include: · Setting up of your payroll in our system based on your individual requirements · Registration and deregistration of employees with the authorities · Submission of information required to update the profile of your employees for social security purposes · Calculation of each employee’s monthly net salary, covering also tax, social security and maternity fund contributions, leave balances, etc · Advice on the taxability of fringe benefits (payments in kind and other allowances) and calculation of taxable fringe benefit value

Clifford Delia

· Calculation of gross-ups where there is a net salary agreement · Preparation of monthly payslips and distribution of same to the employees either electronically through password protected emails or by post · Preparation of bank transfers, cheques and/or a bank file for Maltese bankers to execute the payment of the net salary payable to the employee · Preparation of monthly and annual statutory forms required for submission to relevant authorities together with respective payments · Preparation of payroll journal entries for accounting purposes and preparation of an employee listing for bank reconciliation purposes · A basic salary report showing the basic salary rate for individual employees and other customised monthly reports · Handling all communication with the relevant authorities. Our multidisciplinary team will assist you with all the human resources queries in the field of payroll, accounting, taxation and global mobility such as obtaining work and residence permits, preparing personal tax returns, taking advantage of available tax incentives and preparing employment contracts. cc Contact Us: Corporate Accounting Services Clifford Delia, Director. T: 2563 1116; E: clifforddelia@kpmg.com.mt Amy-Jo Portelli, Senior Manager. T: 2563 1292; E: amy-joportelli@kpmg.com.mt OCTOBER/NOVEMBER 2018

STYLE

REVIEW

Style Review

03. All the browns

Brown tones, animal print and clever layering hacks are among the many notable trends that dominated runways this season. Martina Said picks her favourites. 01. Animal print Love it or hate it, you’ll be seeing lots of animal print this season. Embrace these bold and beautiful prints with one, or many, statement pieces that can be dressed up and dressed down in equal measure – think a leopard print maxi or shirt dress worn with boots and a tiger print coat worn over a minimalist outfit.

04. Clever layering

02. Slouchy boots

05. The small bag

If there’s any time of year to adopt this trend, it’s now – when figuring out what to wear is a daily challenge until winter well and truly arrives. Consider a light sweater worn over a midi dress, a chic shirt dress worn over trousers, or a leather skirt worn over a dress – the possibilities are endless.

The slouchy boot is part of the revival of 70s fashion, but we’re not complaining (they’re perfect for tucking jeans or trousers into in winter). As seen on the runways of designers Alberta Ferretti, Balenciaga and Mulberry among many others, ranging from short ankle boots to knee-high boots with little or plenty of slouch, it’s a trend that’s equally versatile and comfortable.

Kenzo

01.

The colour brown and its many shades are universally associated with autumn, and that applies to our wardrobes too. From brown tweed tailored suits and brown leather jackets for men to oversized brown coats for women, it’s a versatile colour that can be paired with many others, and instantly evokes an autumn vibe.

Brioni

03.

If you’re tired of lugging a big bag around with you every day, you’re in luck. Small shoulder bags have come back with a bang, some adorned with chains, logos, straps and other kinds of flashy embellishments, and others the simple, classic kind. Whichever kind rocks your boat, get ready to downsize – your shoulders will thank you.

06. Pastel blues If brown isn’t your colour, blue really should be. This season, various shades of dusky, powdery blues were sported by many designers, from Delpozo to Roksanda to Dries Van Noten, in wintery wares, namely thick trouser suits, long coats, wide fitting trousers and slouchy jumpers – guaranteed to add a little lightness to your winter wardrobe. cc

Alberta Ferretti Chanel

02.

05. 04. 58 Tibi

06.

Nobi Talai OCTOBER/NOVEMBER 2018

GADGETS

Tech Trends

03. Google Pixel Slate The 12.3-inch screen on the Google Pixel Slate belies its ergonomic feel: the device is light and slim to the touch. The rarely-found front stereo speakers are bound to be popular with those who indulge in a spot of streaming on a daily basis. But it’s the flexibility the device affords – with easy connectivity to the Pixel Slate Keyboard, allowing for more business needs to be addressed – which is set to win many over, and might even convince you to forego your laptop.

The focus is on tech giants’ offerings this month with Google, Facebook and Amazon releasing many cutting-edge products onto the market. Rebecca Anastasi has the lowdown. 01. Google Pixel 3 and the Pixel 3 XL Smartphone

www.techrader.com

www.engadget.com

01.

02.

Google’s latest foray into smartphone technology has resulted in a high-end Android 5.5-inch beauty, whose camera capabilities far exceed its competitors on the market. Or at least that’s what Google are aiming for. It’s back camera – at 12.2megapixels – does pack a punch, though it’s likely to be the second selfie camera on the front, which will have millennials heading to the store: its new wide-angle lens means you never have to leave a friend out of shot! The XL version of the device is exactly what it says on the box: bigger and bolder!

04. Dragon Professional Individual Software solutions to common business challenges are constantly being launched, and the Dragon Professional Individual – which allows you to dictate documents with surprising precision – will prove useful to many firms seeking to put words onto paper with speed and accuracy. Available on desktop (PC and Mac), as well as mobile, this new version of the corporate solution puts Siri to shame.

02. An updated Chromecast

05. Facebook’s Portal and Portal Plus

If you haven’t yet experienced the convenience of Chromecast – a Google device which allows you to stream media from your laptop, tablet or phone onto your large-screen TV – then you’re missing out! But, now may be the opportunity to try it out, since the firm has relaunched it with an updated design, faster connectivity (Google claims this is 15 per cent faster than the previous version) and the ability to support streaming 60fps video at 1080p, instead of the previous version’s 720p. www.pcworld.com

www.facebook.com

Social media behemoth Facebook is dipping its very big toe into hardware, with the video chat screen – a video-calling device, consisting of a widescreen display, a 12mega-pixel camera, high-definition video and artificial intelligence software working in unison to create an experience of truly being in the room with the person you’re talking to, even if they’re thousands of miles away. Expect fanboys and girls to be early adopters, but if you live far from loved ones, this might be a game-changer.

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06. Amazon microwave, Echo speaker and the smart plug In an event earlier on this quarter, Amazon launched a gamut of gadgets integrated with its Alexa virtual assistant, allowing for the most basic of tasks and routines to be controlled by voice. While this may be perfect for those into the latest tech, there is some concern over the way data is managed. But, the Amazon microwave, the Echo speaker (which can be mounted on car dashboards) and the smart plug, which lets you voice control your electrical equipment, will have many itching to press the site’s purchase button. cc

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NEWS Events & Initiatives

02. 01. Malta Chamber joins International Certificate of Origin Accreditation Chain The Malta Chamber of Commerce, Enterprise and Industry has become the latest chamber to join the International Certificate of Origin (CO) Accreditation Chain. Created by the International Chamber of Commerce’s (ICC) World Chambers Federation (WCF) in 2012, the CO Accreditation Chain today includes 559 chambers from 23 countries. With its newly established status, the Malta Chamber now benefits from the use of the internationally-recognised CO label. This certified mark assures businesses, traders, banks and customs administrations that their COs have been issued according to the most stringent and harmonised standards. Having followed the ICC WCF International Certificate of Origin Guidelines, which are globally applicable, Kevin J. Borg, Director General of the Malta Chamber said, “[we are] proud to form part of the prestigious CO Accreditation Chain. It is a step towards expanding our global

business relationships to the benefit of our members in Malta whom we provide with a range of tangible, value-added services.” Johanna Calleja, Manager of Statutory Affairs and Administration of the Malta Chamber added, “the Certificate of Origin service is an integral part of the Malta Chamber. We are constantly working towards providing a comprehensive service to our clients and becoming a member of the CO Accreditation Chain gives us a framework on which to continue building.”

02. Gold Partnership Agreement between Malta Chamber and HSBC Bank Malta renewed The Malta Chamber of Commerce, Enterprise and Industry and HSBC Bank Malta have renewed their long-standing Gold Partnership Agreement, strengthening their excellent relations. The agreement was signed by President Frank V. Farrugia and Deputy President David Xuereb for the Malta Chamber, and by CEO Andrew Beane and Head of Commercial Banking Michel Cordina for HSBC Malta.

Addressing those present, Malta Chamber President Frank V. Farrugia said that thanks to the renewed agreement, Malta’s entrepreneurs will continue to benefit from the Chamber’s sterling service, in a competitiveness-focused environment. In the past years, the Malta Chamber and HSBC Bank Malta have collaborated on a number of fronts, through the organisation of events and initiatives that promote a future-proof economy for Malta. “With the support of HSBC, we have organised events on a number of important subjects which are of interest to Malta Chamber members as well as all businesses at large. All events were very well attended and extremely informative, as members had words of praise for their organisation,” Mr Farrugia said. Andrew Beane, CEO HSBC Malta, said, “we are pleased to renew our long-standing support for the Malta Chamber of Commerce, Enterprise and Industry. This important partnership allows HSBC and the Chamber to explore joint opportunities for the benefit of the business community in Malta, reinforcing HSBC’s commitment to support businesses to thrive and the local economy to prosper.”

03. Chamber holds 170th anniversary summer drinks The Malta Chamber of Commerce, Enterprise and Industry held its annual summer reception on 6th September at the Lower Barrakka Gardens in Valletta. The event also coincided with the Chamber’s special celebrations of its 170th anniversary. The event was attended by the country’s foremost entrepreneurs, as well as a number of Ministers and Members of Parliament.

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04. Leading businesses welcome 42 students in day-long job-shadowing exercise Junior Achievement Young Enterprise (JAYE) in collaboration with the Malta Chamber of Commerce, Enterprise and Industry and CORE Malta held the third edition of Leaders For A Day (L4D) in September, an initiative designed to expose young people to first-hand experience of a typical day’s work in Malta’s top-most levels of the private sector. A total of 26 companies joined the initiative, covering myriad industrial and economic sectors. Addressing the participating students, Malta Chamber Deputy President David Xuereb said that many successful business people today will recall how their JAYE days were perhaps the catalyst that ignited their interest in business. Mr Xuereb encouraged the participating students to strive for excellence and always take the ethical path towards their goal. In an age of economic prosperity, a healthy and sound practice is what remains of an entrepreneur’s entire endeavours, Mr Xuereb remarked. “L4D has become and will remain another staple feature of our calendar of events for the Company Programme and I would welcome even more business leaders next year to join this initiative,” continued Julian Azzopardi, JAYE Malta CEO. For more information on JAYE Malta programmes and initiatives visit www.jayemalta.org.

04. 05. Chamber welcomes proposal to establish new building and construction regulator In a statement to all media, the Malta Chamber welcomed the publication of the White Paper to establish a building and construction regulator. The Chamber welcomed the reasoning behind the creation of this authority, not least because the construction and building industries are a crucial segment of the economy which require one focal point acting as a regulator to this industry. “From the onset, the establishment of this new authority promises to increase the quality and standards in this sector by having simplification and codification of the fragmented enacted legislation,” the Chamber said. “It is essential that the new regulator has a research, educative and training arm within its structures which will in turn assist the

industry to further modernise and innovate its current work practices and materials and technology used in construction. The future-proofing of the industry will also require an element of forecasting for the needs and skills required in the years to come. Learning from what other countries are doing can go a long way in helping us achieve this aim," the statement noted.

06. Chamber to set up committee specifically for family businesses President of the Malta Chamber Frank V. Farrugia announced the establishment of a new Chamber committee dedicated specifically to family businesses. Speaking at A Family Affair, the Malta Chamber’s 2018 conference celebrating 170 years of the Chamber, co-organised with the Family Business Office, Mr Farrugia said that the committee ensured that the topics discussed would continue

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beyond the conference. He stated that the committee would serve as a platform for constant communications between policy-makers and relevant stakeholders. Mr Farrugia said that the conference aimed to celebrate family businesses and their achievements, but also to examine their future, discussing themes such as shareholding, structure, governance, the sustainability of existing business models, procedure, finance and succession. “With this conference, the Malta Chamber is celebrating the core of its being, the members which represent businesses from all of Malta’s economic sectors, being manufacturing, importation, financial services, tourism or information technology. It is these members’ views and expert opinions that the Chamber’s positions and policies are based on. They are the centre of the Chamber’s being.” The conference featured a list of prestigious speakers, including representatives of global players such as Ferrero SpA, Grimaldi Lines SpA and Buffa SpA. Mr Farrugia stated that the Chamber looked forward to continue to be there for its member family businesses, supporting them and helping them grow within the context of a healthy and competitive economy.

countries in the CET zone. The change from summertime to wintertime was considered negative by 54 per cent of respondents, while 68 per cent considered the change from wintertime to summertime as positive.

08. Malta Chamber and MBB delegation makes number of institutional visits in Brussels A Malta Chamber and Malta Business Bureau (MBB) delegation led by the Malta Chamber’s Deputy President David Xuereb held a number of institutional visits during a visit to Brussels in October, as part of their participation during the European Parliament of Enterprises organised by Eurochambres. The delegation also included the

Chamber’s Vice President Marisa Xuereb, Chamber Board Members Hugh Arrigo and Charles Zahra, MBB President Simon De Cesare, European Economic and Social Committee (EESC) Employers Group Vice President Stefano Mallia, MBB CEO Joe Tanti, Chamber’s Head of Policy Andre Fenech, MBB Head of Brussels Operations Daniel Debono and MBB Senior Executive Mark Seychell. The delegation had the opportunity to meet Malta’s recently appointed Permanent Representative to the EU, Daniel Azzopardi, Kylä-Harakka-Ruonala Tellervo, Vice President of the Employers Group within the EESC and Maltese Members of the European Parliament David Casa, Francis Zammit Dimech, Marlene Mizzi and Miriam Dalli. During these meetings, the delegation

07. 75 per cent of businesses prefer summertime 75 per cent of Malta Chamber businesses who responded to a survey on whether they preferred summertime to wintertime, said that they preferred summertime. The survey was conducted by the Malta Chamber in September, as part of a public consultation process taking place across the European Union on the subject. The vast majority of respondents expressed a position in favour of summertime, while only a quarter of those who answered the survey said they preferred wintertime. Businesses taking the survey preferred summertime all year long. They remarked that longer days should lead to a more motivated workforce, which translates into more business activity especially amongst retail, hospitality and restaurant businesses. Longer days would also mean that workers would enjoy more daylight after their respective work shifts, leading to a wider feel-good factor among employees, one member said. “This would mean better work-life balance, therefore a happier workforce,” the respondent said. Some businesses also stated that Malta ought to align its time to other European OCTOBER/NOVEMBER 2018

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09. raised a number of concerns in relation to the impact and developments of Brexit on Malta and the European Union, upcoming European Parliament elections, EU regional policy, tax harmonisation and Malta’s

contribution and allocation during the next EU multi-annual financial framework. These visits further served as an opportunity to build even stronger relationships between the local business community and the Maltese representatives in a number of EU institutions, whilst making the Maltese business voice heard within the Brussels corridors.

09. “Education systems are failing to keep up with technologies” – David Xuereb

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Addressing the European Parliament for Enterprises (EPE), Malta Chamber Deputy President David Xuereb said that societies and markets were being transformed through demographic phenomena and technological advancements. “New technologies are emerging at an unprecedented pace yet education systems are simply failing to keep up. It is evident that securing Europe’s present and future relevance and competitiveness greatly depends on our ability to upskill our human resources, particularly in STEM areas,” Mr Xuereb said. The Deputy President said that the European Union must collaborate to ensure that places of education and work adapt to such developments effectively in order to safeguard the continent’s competitiveness.

“At present, Europe’s main competitors are reaping the significant benefits of large preparations and investments in STEM-related fields, while we are falling behind due to brain-drain and misused resources. We have a significant opportunity to transform the priceless human resources that are being lost to youth unemployment or skills mismatches into a new-found resource through ambitious investment,” Mr Xuereb noted. The same session of the European Parliament for Enterprises was also addressed by Malta Business Bureau President Simon De Cesare. The MBB President said that the European Union needed to build trust for deeper cooperation in completing long-term projects that will make it stronger and competitive on a global level.

10. Chamber President appointed Eurochambres Director Malta Chamber President Frank V. Farrugia was appointed Director of Eurochambres during the 124th Eurochambres Plenary Assembly which he attended in Brussels. Eurochambres represents over 20 million businesses in Europe through 46 member organisations, and a European network of 1,700 regional and local chambers. During the Eurochambres Plenary OCTOBER/NOVEMBER 2018

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Assembly, delegates from over 40 different European countries discussed the organisation’s operations as well as a number of topical European issues which were chosen for the occasion. During the same visit, Mr Farrugia also met EESC President Luca Jahier. During the meeting, Mr Farrugia raised a number of issues including the latest developments on the UK’s exit from the European Union, a stronger work relationship between EESC and the Malta Chamber, the Chamber’s national priorities and the upcoming European Parliament elections. Mr Jahier agreed to the need of building a stronger relationship between the two entities and urged the Malta Chamber and MBB to maintain and increase their lobbying efforts with the European institutions. He also encouraged the two organisations to keep a direct contact with their Maltese representatives at the EESC, who in spite of the small delegation, were very active on a number of important dossiers which affected business. Mr Farrugia was accompanied by Stefano Mallia, EESC Employers Group Vice President, the Malta Chamber’s Head of Policy Andre Fenech and Malta Business Bureau Head of Brussels Operations Daniel Debono.

The Malta Chamber made a number of recommendations to tackle the HR shortage present across the board. It proposed that Identity Malta should have more resources to enable better streamlined procedures for recruiting third-country national employees and embarking on an international marketing campaign showcasing employment opportunities and quality of life in Malta. It recommended extending all types of work-based learning across all the postsecondary and tertiary level educational institutes and establishing a new national competitiveness agency to ensure that the economy is not hampered by new and excessive regulations, measures and taxes which negatively impact competitiveness. “Now that the country has achieved unprecedented growth rates, full employment, consecutive fiscal surpluses and relative price stability,

the Chamber reiterates its call on Government to capitalise on the present situation to invest in the necessary infrastructure and safeguard future sustainability,” the Malta Chamber said. “The context in which the Budget for next year is being designed is that of a dynamic business environment characterised by numerous internal and external challenges. For this reason, the Chamber calls for further competitive enhancing measures with a view to protect the recent economic achievements and ensure further sustainable growth.” “Given how quality was a fundamental element in its Economic Vision for Malta 2014-2020, the Malta Chamber is pleased to note that Government is basing its Budget for 2019 on this central pillar of utmost importance. It is only through a renewed vision for quality that the country can make the next leap of value for all.”

11. Malta Chamber Budget proposals build on past successes with long-term vision In the run-up to the annual Budget, the Malta Chamber proposed to Government a complete pre-budget document, following an internal consultation process with its members coming from all sectors of the Maltese economy. In total, the Malta Chamber made 30 key recommendations which included well over 60 practical measures for inclusion in the Budget document for 2019. It said that the Budget exercise should be addressed from a multi-annual perspective, in order to ensure continuity and long-term planning. Government should carry out a carrying capacity analysis (including economic, social and environmental impact assessments) of the country by an independent entity with involvement of the country’s main stakeholders in the social and economic sphere. It recommended that the National Development and Social Fund established through the Individual Investor Programme (IIP) should finance a holistic transport strategy to shift towards a sustainable and effective multi-modal transportation system. OCTOBER/NOVEMBER 2018

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12. Live from Parliament: Budget 2019 For another year running, the Malta Chamber, through its online news portal maltachamber.org.mt, provided members and visitors with constant updates and live reactions to the Budget 2019 speech as it was read out by Finance Minister Edward Scicluna on the evening of 22nd October. The detailed coverage of the Budget speech followed the Chamber’s tradition of providing its members, as well as members of the wider public, with reliable and accurate reporting on Budget day.

13. Malta Chamber's recommendations included in 2019 Budget speech Reacting to the Budget 2019 speech which was read out by the Minister of Finance on Monday 22nd October, the Chamber noted that the Budget was set against a backdrop of an economy that was performing well. “From the data published with the Budget, it has been confirmed that the country has continued to register positive economic expansion, relative price stability and almost full employment, all of which have

generated a positive effect on the state of public finances,” the Chamber said. It was for this reason that the Chamber called for a Budget that seeks to capitalise on present economic resilience to invest in the necessary infrastructure and safeguard future sustainability. At the same time, the Chamber called for further competitiveness enhancing measures with a view to ensure further growth and jobs in the country. All in all, the Chamber was pleased to note that several of its recommendations were, in fact, included in the Budget speech.

organic chemicals, electrical machinery and textiles,” Mr Farrugia said. He remarked that the two countries were experiencing a deepening business relationship that was adding reciprocal value to trade operations. “This level of trade can only grow as a result of the close collaboration between the two countries and strengthening of our institutional links,” Mr Farrugia concluded. The Business Forum was attended by 30 Maltese business and institutional organisations who had meetings with 15 Indian business representatives in a fruitful networking session at the Malta Chamber. The event was also the backdrop to the signing of a Memorandum of

Understanding between the Malta Chamber and its Indian equivalent the Associated Chambers of Commerce and Industry of India. Frank V. Farrugia signed on behalf of the Malta Chamber while Pavan Abraham, Chair ASSOCHAM North America Chapter countersigned the MOU which sets out grounds for further collaboration between the two organisations. The forum was also addressed by H.E. Marie-Louise Coleiro Preca, President of Malta, Carmelo Abela, Minister for Foreign Affairs and Trade Promotion, H.E. Shri M. Venkaiah Naidu, Vice President of the Republic of India and Shri Shiv Pratap Shukla, Minister of State of Finance. cc

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NEWS Internationalisation

01. Strengthening institutional links leading to trade growth between Malta and India Welcoming guests to the Malta-India Business Forum in September, Chamber President Frank V. Farrugia said that cooperation between Malta and India was translating into a better exploitation of Malta’s geographical position, facilitating the transhipment of goods from India to Southern Europe and North Africa. “This is reflected in bilateral trade between Malta and India, which has been rising in the past years, mostly through trade activity in pharmaceuticals,

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DasCoin: strengthening Malta’s position as a blockchain island “The courage and the boldness of being the first worldwide – that cannot be over-emphasized,” the CEO of DasCoin Michael Mathias told delegates at October’s Delta Summit 2018 – the first official conference launching Malta as a regulated virtual currency and ICO centre.

“That takes leadership. It's hard to do because we don't know all the answers. But Malta took the right approach and I think that you can see that,” he continued. Mr Mathias – the innovator behind DasCoin – the blockchainbased currency at the centre of a unique digital platform known as Das33 – has rapidly become an outspoken member of Malta’s blockchain community, having established a presence here in 2016. “I am an entrepreneur. My background is in financial services and technology. What I saw was this amazing opportunity with the convergence of those two areas and I have created a worldwide platform built around Distributed Ledger Technology. The idea is really to find all the opportunities for innovation in a space like financial services – but that's just one of many areas where innovation is possible, and Malta is a place that's embracing that innovation,” he said. Mr Mathias singled out the introduction of the Malta Digital Innovation Authority as an example of how the country is approaching blockchain in a more holistic manner than many jurisdictions. “That is the right approach,” he said. “Because this is not completely about financial services. It is a new realm that needs to look at all of the issues [surrounding blockchain] while working with the existing financial services institutions.” Mr Mathias says that blockchain technology

will allow Maltese businesses to grow without disturbing the Mediterranean lifestyle they cherish. This is something he is well placed to comment on. As founder and President of location-based social media company Mojo Media, as well as founder and CEO of marketplace network TREKA and online gaming company Change Gaming, Mr Mathias has a proven track record of harnessing future trends. He spent 10 years as a strategic consultant working with a variety of business clients including JP Morgan Chase’s Private Bank and five years as an executive in the financial services industry with American Express and T. Rowe Price. Blockchain is the future of business Blockchain will be an efficient system that allows businesses to expand into new territories, Mr Mathias says. This is because by removing the need for third parties to manage transactions and keep records, blockchain technology massively reduces transaction costs. The positive impact of blockchain adoption is hard to overstate. Essentially, blockchain is a Distributed Ledger Technology, which allows a user to transfer a unique piece of digital property to another user, with the knowledge that the transfer is guaranteed to be safe and secure, where everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer.

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CC make the headlines And while cryptocurrencies have a difficult reputation, Mr Mathias has ensured that every member of the DasCoin community is fully authenticated using the banking-standard KYC (Know Your Customer) process. This means users can access an established market of pre-approved customers that is continually growing. “The community can act as a growth engine for your business and operates according to internationally-accepted bank-standard protocols,” the entrepreneur says. Transparency is clearly important to the company. The DasCoin codebase is open source and can be viewed on GitHub. You can also visit DasCoin Explorer to see blocks built in real time. Built around DasCoin is the recently launched Das33, a revolutionary platform within the Das ecosystem. Das33 allows independently-vetted businesses to issue their own tokens on the DasCoin blockchain and can be funded with DasCoin (DASC) or Bitcoin (BTC) via a DasWallet account – an easy to set up and secure wallet that requires KYC validation. Why Malta? Malta’s blockchain-friendly environment is attracting dozens of crypto-companies to the island. This is all part of the Maltese Government’s blockchain strategy, which aims at putting the country at the forefront of this emerging technology in a transparent and clearly regulated way. These things are close to Mr Mathias’ heart. At a recent special Das33 briefing coinciding with the 73rd regular session of the UN General Assembly, Mr Mathias announced that the platform would support the UN’s Sustainable Development Goals. He presented Greenstorc, a disruptive heat-to-power energy solution and the first project on the Das33 platform, as an example of how quickly Das33 is putting this into action. The initial funding round of €1.5 million for the project on Das33 was raised in just 60 hours. “People care about people,” said Greenstorc CEO Paul Flynn at the time. “People want to help but they also need to know where that money is going.” In the same vein, Malta’s pro-crypto legislative environment has allowed the island to evolve into an internationally-recognised cryptobusiness hub – encouraging and facilitating sensible blockchain-use within its jurisdiction. Malta’s competitiveness is derived primarily from its taxation benefits, cost structure and fiscal incentives. An EU member since 2004, part of the eurozone since 2008, and with the euro as its national currency, Malta was assigned a Fitch Rating of ‘A’ with a stable outlook in April 2013. In another report, also published in April 2013 by Standard & Poor’s, Malta was praised for its strong and secure banking system. From any standpoint, having an entrepreneur of Michael Mathias’ calibre on our shores is sure to continue strengthening Malta’s position as a blockchain island. cc Visit http://das33.io for more information. OCTOBER/NOVEMBER 2018

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Bakery turned restaurant: an award-winning conversion in Valletta Newcomer to Valletta’s restaurant scene and winner of the Commercial Interior Category within the recent Malta Architect Awards, Noni has fast become a hot topic – both for its stunning design and exceptional food. Sarah Micallef speaks to Theo Cachia, Design Architect at ARCHi+ who worked on the project, to find out what went into the restaurant’s transformation.

“T

he first time I walked into the space that is now Noni, it was a jazz bar,” says Design Architect Theo Cachia, recalling many an evening spent listening to local bands at Django, as it was formerly known. Some time later, his reaction, upon his first visit on-site for it as a project, was markedly different. “It was a bit of a rude awakening,” he admits, recalling that the makeshift conversion wasn’t ideal. “All of the original 78

masonry walls were covered with gypsum boards and painted red,” he explains, and as with any building of a certain age, more discoveries were in store when works began. “As we started our intervention, we discovered several levels of tiles buried under the existing floor level. There’s also a wood-fired oven which is original to the place and which was still visible, but because of the extra layer of tiles, some of its openings were jammed,” he recalls. Indeed, prior to

its days (or rather, nights) as a jazz bar, the space was originally a well-known bakery and confectionery – hence the sign advertising Xmun Borg & Sons, still attached to the façade. “It was nice discovering the layers of history, though unfortunately, not everything we discovered could be salvaged. In the main area for example, we found small hexagonal cement tiles which had two or three layers of tiles installed on top of them, so they were beyond repair. Still, in order to give them a bit of a nod, OCTOBER/NOVEMBER 2018

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Photo by ARCHI+

Photos by Brian Grech

we decided to use traditional cement tiles, some of them with hexagonal patterns,” he continues. Walking me through the space, Theo explains that now, as you enter the restaurant, you’re met with a welcome bar at ground level, which leads on to a small dining area and a staircase heading down into the main dining room. Speaking of this area, Theo reveals that the double height stairwell where the original staircase is located was heavily modified over time. When the architects looked at older plans and permits, they found that it contained necessary mezzanine levels for a very long time so they dismantled the makeshift one found and put an upgraded one in, taking the space itself into consideration. “Originally it was across the whole area, and in our intervention, we left some parts open so that people could still experience the double height space,” he maintains. OCTOBER/NOVEMBER 2018

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“As we started our intervention, we discovered several levels of tiles buried under the existing floor level. There’s also a woodfired oven which is original to the place and which was still visible.”

As you walk down the staircase, you’re met with a snapshot of the kitchen beyond, before making your way down to the main dining area through what used to be an awkward passageway beneath the stone staircase. “We didn’t want to remove this completely, so we did what I consider to be a highlight of this project,” Theo smiles, referring to a fantastic custom furniture piece moulded out of arching timber sections. “I really like the way we used the space underneath the staircase – an area which most people automatically relegate to storage,” he continues, admitting that while they did still manage to get some storage out of it, the talented team of architects also succeeded in making the entrance into the culmination of the restaurant – the dining room – a bit more interesting. OCTOBER/NOVEMBER 2018

CC DESIGN TRENDS Looking back on the process, Theo explains that the project kicked off with several meetings with the client, Chef Jonathan Brincat – after which the restaurant is named – and investors. The architect notes that the team was left quite free to execute their vision of the space, adding that the clients wanted to keep a classic feel, so the only initial resistance was when it came to introducing contemporary elements, although he feels they married the two well. “Most of the outlets in Valletta really want to drive the ‘authentic’ point home, but then proceed to design strictly traditional interiors. Noni is authentic because it’s also of its time. We still kept a bit of a vintage feel, but certain elements such as the wooden panelling are very minimalist and almost modern,” he says. The first step in the design process was finding a layout that maximises and makes the best use of the space provided, Theo goes on the explain, and like most buildings of this period, it wasn’t a simple rectangular space. Survey in hand, the architects went on to try a few different layout options, and even considered having the kitchen in a different place, but the fact that the existing wood-fired oven was present, served as an incentive to do otherwise. “We then moved on into 3D space, where we detailed all the things you don’t see on

the plan – the soffits, furniture, flooring and changing levels, and how they come together, as well as the arched walkway that we created under the stairs. This phase is followed by photo-realistic renders to show it almost as it would eventually be to the clients,” he continues, shedding light on the process before works began. Works on site took a mere few months, from gutting to finishes, and on to custom steelwork by David Attard Ironworks and

furniture, for which the team at ARCHI+ commissioned Fino, who used an Italian team to bring the designers’ vision to life. Speaking of the primary materials and finishes used throughout the space, Theo explains that a stained oak finish was chosen for all the timber, as well as a green sprayed finish inspired by the original sign and main door, and black sprayed steel. I point out that it’s quite a masculine palette, to which he agrees, adding that the curves and soft lines balance it out somewhat.

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Another counter to the masculine element are the pastel-toned Maltese tiles used for the dining room. While the option is a traditional one, the way in which the architects went about it is decidedly contemporary. “There are standard patterns for Maltese tiles which are filled in according to a mould, and they’re almost always filled in the same way, such that the pattern of the tile shows completely,” Theo explains. “But we filled much of them in the white base, and then had three shades of green – the dark green that is similar to the furniture and two shades lighter – which we used to fill up different sections.” Illustrating the schedule of tiles made up of custom patterns, the designer maintains, “we wanted it to look bespoke, and since the space isn’t large, we could afford to go into this detail.” Moving on to Theo’s own pièce de résistance, he recalls that originally, the whole area beneath the stairs was higher up, so the architects excavated down and added contemporary stairs, using the same black marble on top – a black pietra lavica – to cover the threads of the original staircase. “We then came up with the geometry of the new walkway in 3D, and sliced it into different sections which were fused together. In the last panel we included a door, from which the area beneath the staircase can be accessed, and which is used as storage. Finally, an inlet integrated into the wood serves as a waiter’s station.” OCTOBER/NOVEMBER 2018

Another interesting element stems from the original bakery sign on the façade, which was itself restored and given a new lease on life. “The sign is a scheduled sign, so it was important to keep it. We first took it to the restorer, and overlapped it with a piece of glass sporting Noni’s logo in line type,” he says.

“I really like the way we used the space underneath the staircase – an area which most people automatically relegate to storage.”

CC DESIGN TRENDS And with Theo’s personal interest in typography, the sign’s influence can also be felt indoors, by way of a playful typographic mural adorning an interior wall. “I always wanted to play around with the beautiful signs of Valletta, so I traced the 3D effect of the original sign, and enlisted Starcross Project, a company associated with Bloom, who did the branding for Noni, to paint a mural I created using the type over the tiled wall above the stairs. It was also broken down in such a way so as to spell out ‘noni’ vertically,” he adds. Speaking of Bloom, Theo admits that in commercial projects, there’s often a disconnect between the people that take care of the branding and those that are tasked with the design, and “as an amateur graphic designer myself, I feel that to have discussion and links between the people who work on the brand and the people who work on the material of the place – the actual stuff you touch – is important. It’s good to have a balance – the absolute is almost never the best option, you have to collaborate.” Finally, asked how he’d describe the finished design of the eatery, Theo explains that the design style takes a lot from the industrial modern eatery, albeit softened by curved edges, wood and pastel tiles, which give a nod to its history as a confectionery

too. “I guess you could call it industrial lite,” he smiles. And ARCHI+’s particular brand of industrial lite seems to have gone down well – so much so that Noni earned them the Commercial Interior Category within the recent Malta Architect Awards – a doubly great feat, considering it was also the most crowded category of the night, with 15 nominated projects. Expressing gratitude for the recognition, Theo

maintains, “as everyone knows, Valletta is currently a hotbed of high-end development. Unfortunately, despite the years of heritage and craft inherently present in a lot of buildings in Valletta, not every intervention is a completely positive one. We are happy and honoured that although our site was relatively unassuming and compact, we were still recognised for the time and attention to detail we gave this project” – and judging by the results, they certainly show through. cc

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STYLE

Office Trends

REVIEW

04. Abstract design

Office design is changing fast and often, but some trends that are expected to emerge in 2019 are revisiting the past, while others have an eye on the future, as Martina Said finds out.

Solid walls and wallpaper patterns have sort of met in the middle with this trend – where bold-coloured walls feature abstract designs, either painted directly onto the wall or by way of decorative wall art. The more contrasting, the better – it’s a bold trend that merits bold execution.

01. Old meets new

05. Hand-crafted décor

In an age of design-driven work spaces, this ‘old meets new’ phenomenon could inject life into an office in intriguing ways. Increasingly, old and abandoned buildings, sometimes with historical value, are being transformed into fantastic work spaces, while antique bits of furniture or décor that might otherwise be disregarded as ‘too classic’ are combined with modern furniture with top-notch results.

01.

As artisanal, hand-crafted and locallysourced products continue to rise in popularity, companies are increasingly turning to local artists and designers for office décor items, be it cushion covers for the lobby sofa, a painting for the conference room, or decorative vases for the entire office.

06. Workspace wellness

02. Moss walls The green wall made a big hit, but isn’t a viable choice for all offices due to insufficient lighting or unsuitable irrigation set-ups. Cue the moss wall – a perfectly green alternative which is easier to maintain than a green wall, survives without perfect light controls, and is also easier on the pocket. Made using an assortment of preserved mosses, it’s an eye-catching office feature that adds a refreshing touch of green.

The importance of wellness at the office isn’t going anywhere fast, aimed at combatting illness related to work, which often means stress-induced illness and that related to long periods sitting down. Sit stand desks, yoga rooms and exercise balls are but a few of the perks companies are offering their employees, which are often more than welcomed. cc

Photo by JFAK Architects

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03. Cement Cement finishes have been hugely popular in home trends, and they’re becoming a current choice for office design too. Microcement is especially sought-after – besides being durable and easy to install, it’s highly versatile and suitable for floors, walls and furniture too. Although grey tones are the most popular, the selection of colours is extensive.

06. The Silk Company

04.

World Market

Dania Furniture

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HouseofLyonDesign on Etsy

FOOD&WINE

Food trends

From plant-based eating to cooking with less waste, Rebecca Anastasi looks at this season’s culinary highlights and learns that it really is all about the environment. 01. Plant-based eating

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Veganism has been on the rise for many years, but with recent research showing a direct correlation between the survival of the planet and the adoption of a plant-based diet, it’s no wonder that more are choosing to shun meat and dairy. But not all’s lost for those who just cannot rid themselves of their carnivore habits. Today’s chefs are creating dishes using methods traditionally associated with meat: smoked, grilled, roasted and marinated produce means you won’t even taste the difference!

02. Hyper-local food

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Being an island, Malta is heavily reliant on shipping, which puts a strain on carbon emissions. But luckily, the island has much going for it in terms of local ingredients. This season put a focus on artichokes, aubergines, beetroot, broccoli and tomatoes – you’ll not only feel healthier, you will also be contributing to the local economy, as well as helping stem the tide of climate change. Mario Galea - viewingmalta.com

03. Nootropics Memory-enhancing food has made its way into the limelight – and might prove to be a game-changer in how we consume and look at our sustenance. While a lot of focus has been placed on gut health over the past few years, culinary experts are looking at the benefits of dark leafy greens, chocolate, eggs, green tea, extra virgin olive oil and blueberries on how we think and how we remember.

04. Mushrooms Shiitake, enoki, portobello – how well do you know your mushrooms? Whatever your level of expertise, mushrooms are set to be a big part of plant and meat-based diets, thanks to their umami qualities. This is in no small part down to the vegetable’s flexibility, with the ‘shroom featuring prominently in vegan burgers, stir-fries and drippingwith-gravy sandwiches. This season, keep ahead of the game and watch out for the more obscure maitake and eryngii.

05. Less-waste cooking Food trends are now also extending to the ways in which we prepare and consume our meals. Minimising waste has become a priority and there are techniques you can adopt to ensure nothing useful is discarded. Use leftover stock in rice, or blitz the remaining parsley or herbs with some garlic and olive oil to create pesto. And don’t throw away any stems – they really pack a flavour punch.

06. Fermented foods For centuries, Asian cuisine has used fermented fruit and vegetables as daily staples. Kimchi in South Korea and tamari soy sauce in many countries of the Far East have become embedded in the ebbs and flows of people’s routines. Even Germany has its own version: sauerkraut. But, you don’t need to limit yourself to fermented cabbage. Onion and radish add some crunch to your meals and can even be used in soups – perfect for the colder months. cc

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Korean Bapsang

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TradeMalta’s internationalisation knowledge platform now live Business people and entrepreneurs in Malta with an interest in going global can now utilise a new online platform to seek advice and hunt down international opportunities: the recently-launched TradeMalta website – www.trademalta.org.

With a focus on an easy-to-navigate user experience and plenty of pages full of helpful information, this one-stop portal enables online visitors to apply for export assistance, discover international opportunities, learn about exporting, research potential markets and build export capabilities. Meanwhile, it also assists international companies to connect with businesses based in Malta. “We understand that that first step towards internationalisation can be a daunting one,” says TradeMalta’s CEO, Anton Buttigieg. “And that is exactly why this revamped portal has been designed to take the edge off and focus on giving interested businesses all the help they need. It is a complete service, and our genuine aim is to encourage and support local entities to become successful players in the global market.” In fact, the website offers a vast number of services in the field, including helping companies to join trade missions, carry out market research, perform a gap analysis and even access international databases to find new customer leads. “There is nothing more exciting for the team at TradeMalta than watching a local business excel internationally, and that’s exactly what we hope to see more of thanks to this website. If you are considering taking steps towards internationalisation or if you’re already exporting, visit our new website and register to learn more – and we look forward to working

with you,” Mr Buttigieg adds. TradeMalta will officially be launching the new portal on 15th November. On this occasion, they have also invited international speaker Fraser Doherty, a Scottish entrepreneur and founder of multimillion euro business, Superjam. At the event, Doherty will share his story of how at a very young age, he grew his company from a small home startup to an international

business. He will also be giving a training workshop on how to apply the principles set out in his book 48 Hour Start-up, to access new markets quickly. cc Places for this training session are limited and applications will be accepted on a first-come-first-served basis. Those interested in signing up should apply online at www.trademalta.org.

Fraser Doherty, Scottish entrepreneur and founder of multimillion euro business Superjam

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Here’s why businesses should offer healthcare benefits Health insurance is important as it helps protect an individual or family from financial loss for costs incurred because of sickness or injury.

Health insurance is considered to be the foundation of a comprehensive benefits package for employees. This is an insurance policy that covers medical private treatment when needed. Employer-provided health insurance policies, also branded as group health insurance policies, offer employees several different options for insurance coverage. Employer-provided policies vary in coverage. Nowadays, employers are understanding the importance of workforce health. There are several reasons why it makes good business sense for companies to offer insurance benefits to their employees and their families. Some of these are listed below: · Reduce workplace stressors · Help employees improve their coping skills and flexibility · Help staff improve their physical and mental comfort · Help individuals build their own health consciousness to make healthier choices · Help staff choose options that will improve their health · Help staff be more physically active · Give employees access to tools to manage personal, relationship, financial and other significant tasks. There are many welfares that one can offer through any business, company and organisation, but there’s one winner that rules them all and is unquestionably health insurance. Over the past years, GasanMamo Insurance has established itself as a quality provider of insurance products in Malta. Having been in the industry for over 60 years, the insurance firm has the necessary experience and knowledge to support Maltese businesses and organisations with their insurance requirements. Health insurance is one of GasanMamo’s collection of fast-growing insurance solutions that can provide an ideal plan which is customised to the requirements of your business and at a practical and reasonable premium. “Healthcare benefits play a big part in employee fulfilment, satisfaction and retention; however, at times some companies do not see the significance of this. It’s interesting to note that a recent survey, which was conducted by a top international insurance company, shows that a good percentage of the employees who say they have good healthcare benefits 94

also report high job satisfaction. No doubt businesses need to look at their benefit offerings to make sure they are as effective as possible as a preservation tool for their

workforce, whilst reaching other business objectives,” said Mark Mamo. cc www.gasanmamo.com OCTOBER/NOVEMBER 2018

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Circular economy closing the loop in the commercial sector For over a century, the world has operated on the traditional ‘linear’ economic model, where raw materials are used to make a product, and any waste generated, such as packaging, is simply thrown away. As the world’s population continues to increase, the strain on our environment is becoming more and more evident, especially due to the greater demand for food, water and housing, as well as the pressure on existing infrastructure. To ensure that prosperity continues in a more sustainable manner, various countries have begun to rethink the linear economy and are transitioning towards a circular economy, which is less wasteful, renewable by design and aims to retain as much value from waste resources as possible. The ethos behind circular economy is to keep resources in the economy for as long as possible, thereby minimising waste generation while advocating long-term sustainability. In an economy based on the principles of reuse, reduce and recycle, products are manufactured in a manner which is conscious to the environment, where processes like maintenance, upgrading and dismantling for repair are integrated at the planning and design stage of the product. While significant progress has been made in reducing the impacts of waste generation, the challenge still stands, especially given the high volume of mixed waste that is still sent to landfill in many countries due to lack of waste separation, even though in various cases the necessary infrastructure is already available. A conscious shift in waste management practices is an indispensable element in ensuring waste reduction and of the recovery of valuable secondary resources. This is in alignment with the EU’s efforts to develop a sustainable, resource efficient economy, whilst boosting competitiveness, innovation and growth in all sectors. The key to ensure that integrating a circular economy in a business environment is both viable and cost efficient lies in combining competitive business practices with sustainable approaches, while introducing waste practices that consider waste as a resource and as a source of revenue. A circular and closed loop economy can be beneficial both from an environmental aspect, with less resources consumed and also from a financial aspect, with less money spent to dispose of waste, the purchase

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The ethos behind circular economy is to keep resources in the economy for as long as possible, thereby minimising waste generation while advocating long-term sustainability. of secondary raw materials and the cost value that can be derived from separately collected recyclable waste. At the same time, businesses can also improve their green credentials with the introduction of circular approaches. The main scope of a circular economy is to phase out waste from industrial systems, making them less dependent on resource reserves which have an expiry date. In this way, businesses will be able to tap into new sources of value and help create more resilient and new and emerging markets and supply chains which are more likely to have a longer term sustainable and positive effect. By being more effective in how materials are used and reused, their value is enhanced,

as is the opportunity to create new markets, or develop existing ones in new directions. In line with this shift towards a circular economy, customers, employees and investors are becoming increasingly interested in sustainability and the impact each one of us leaves on the environment. The result is a more modern approach which aims to create a most cost-effective and sustainable way of business practice. As a result, businesses which introduce cleaner and more sustainable practices will strengthen their brand equity and enhance their corporate image, while meeting customers’ increasing demands for more environmentally sound products and services. cc

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HSBC Malta launches new international business service HSBC Bank Malta has launched a new service aimed at international companies that have a presence and operate in Malta.

HSBC Malta’s International Subsidiary Banking team led by Nicholas Elias (seated, middle) together with Michel Cordina (standing, middle)

This service is being provided via the bank’s International Subsidiary Banking proposition which ensures that HSBC customers worldwide receive the same level of service and a holistic understanding of their business and expansion plans throughout the bank’s global network. To be able to service these international companies, HSBC Malta has set up a specialist team in Malta made up of five dedicated relationship managers and three analysts. This team is able to offer a comprehensive suite of corporate services, working alongside the bank’s Global Markets, Global Trade and Receivables Finance and Global Liquidity and Cash Management product partners. “HSBC’s Commercial Banking and Global Banking customers can benefit from the bank’s global presence spanning across more than 50 territories, including Malta. Corporate customer value from International Subsidiary Banking is growing substantially, evidencing the strength of HSBC’s global network,” says Michel Cordina, Head of Commercial Banking of HSBC Malta. The team is led by Nicholas Elias, who previously worked in Corporate Banking with HSBC in London, and who reports directly to Michel Cordina. “The International Subsidiary Banking team in Malta has been set up as part of the global proposition aimed at servicing such clients. We serve and support our international business customers to the highest standards by leveraging local and international expertise whilst working with our internal product providers. We provide dedicated relationship management which allows us to gain a meaningful understanding of our clients’ businesses and the industries within which they operate,” explains Nicholas Elias, HSBC Malta’s Head of International Business. “We are proud to be part of the HSBC International Subsidiary Banking proposition and to actively help promote Malta to our international customers as an attractive location for expansion,” he adds. cc

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Four steps to protecting your business with a trademark

Step one is to have an innovative trademark. An eye-catching and innovative trademark attracts a greater number of consumers to your product or service. In todayâ&#x20AC;&#x2122;s world, however, that may not be quite enough. Step two: Your trademark needs to be easily recognisable and distinguishable from marks used on products and services that are similar or in the same line of business. This will help consumers to recognise the product or service that you offer by immediately associating it with your company or business. Step three: Your trademark needs to be registered. One obvious advantage of registration is that your trademark will not only be distinctive but also robust, as you will enjoy exclusive rights to the name or logo, whose reputation you will have built after much time and effort. A strong registered trademark can be an effective tool to prevent third parties from taking advantage of the reputation of your trademark, by using a trademark that is similar or identical to yours. One other advantage is that it can be licensed, transferred, as well as form part of the assets of your business or enterprise. For further information on how to protect and register your trademark in Malta, visit the Industrial Property Registrations Directorate (IPRD) section on the Commerce Department website at www.commerce.gov.mt or phone Business 1st on 144. Step four: Register a European Union Trademark (EUTM). A robust trademark can open up a vast range of opportunities for your business to grow and gain recognition, even abroad. You can protect your brand abroad by registering a European Union Trademark (EUTM) at EU level. The EUTM system co-exists with and is complementary to the national trademark registration. You will only be required to file one application. When registered, it will give you the exclusive right in all 28 EU countries. Should you be interested in protecting and registering your trademark in the European Union, you may visit the European Union Intellectual Property Office (EUIPO) at www.euipo.europa.eu. Protecting and registering your trademark is an important factor towards making your business successful. cc

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Your right to healthy air In recent years, there has been significant focus on the hazards associated with outdoor pollution. And recently, one of Malta’s MEPs, Miriam Dalli, was approved to lead EU legislation for cleaner cars in Europe. However, insufficient emphasis has been placed on the potentially greater dangers associated with contaminated indoor environments. We all have a right to healthy indoor air. The World Health Organisation found that up to one third of buildings in industrialised countries are sick. Surprisingly, in Europe, the laws dealing with indoor air quality emphasise fresh air quantity in relation to occupancy, but there are no laws or regulations regarding mould exposure affecting indoor air quality. Repeated exposure to organic materials of bacterial or fungal origin commonly found in indoor air can result in allergies such as asthma and rhinitis, extrinsic allergic alveolitis (a group of lung diseases), hyper-sensitivity pneumonitis (which has flu-like symptoms), headache, fatigue and mucosal complaints, or organic dust toxic syndrome (recognised by tightness of the chest and bronchitis). What can we do? Cleaning your filters isn’t enough, because it’s what you can’t see that can harm you and your family. The moist environment created inside your air conditioner through its normal operation is the ideal environment for mould and bacteria to grow and flourish in as little as three months. The best way to ensure that your home and office are protected is to have the mould, fungus and bacteria removed from your air conditioner, then have treatments applied that protect against recontamination. 12 months’ peace of mind for the health of your family and friends The residual action of AerisGuard treatment products means that the active ingredients are released over a period of months. More efficient air conditioning means you’ll save money, too. Treating your air conditioning system with AerisGuard is completely non-corrosive and will immediately restore efficiency, reduce energy costs and even extend the life of your unit, so it’s a win-win situation in every respect. Ask for AerisGuard by name. So, ask your air conditioning technician to not only clean it, but to AerisGuard it as well. cc Aeris Environmental Europe; E: info@aerisenvironmental.eu

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Scheduling and rostering available with Spektrum Workforce Management Spektrum, the Workforce Management application from AIS Software, now includes a new module called Scheduling and Rostering. It is the essential tool for companies whose employees work with a range of shifts, schedules and rosters. Spektrum helps you create and manage flexible work schedules according to your business needs. The interface is web-based, allowing managers and employees to view schedules and upcoming rosters and provides access to the data from anywhere. Spektrum Scheduling and Rostering supports the time and attendance needs of companies in a wide range of sectors. Scheduling and Rostering is built for organisations working with fixed or flexible working schedules. From a small team with basic rules to a multicompany structure with a variety of schedules and rosters, Spektrum is the right workforce management solution for your business. The process is as easy as 1-2-3: 1. Set up your fixed or flexible schedules for your teams 2. Create rosters for the upcoming calendar period 3. Assign users to rosters, and you are good to go! Spektrum has an easy and intuitive interface, leading to quicker schedule and roster generation. Reduce the burden on HR personnel by handling shifts, schedules, rosters and employee absences from a single application. Spektrumâ&#x20AC;&#x2122;s reporting features allow easy calculation of overtime periods, hours worked and detailed breakdown of employee absences. The ability to include employee absences, such as vacation or sick leave, and non-working periods, such as shutdowns and public holidays, ensures that attendance records give you the full picture in real-time. Report generation is a breeze with a custom report designer supplementing pre-included reports. All information is exportable to common file formats for quicker payroll processing. Scheduling and Rostering generates accurate employee attendance information from any web browser, allowing business owners to manage their workforce effectively. Spektrum reduces administrative overheads, leading to improved productivity and reduced costs. Built on the Microsoft Azure platform, there is no need to worry about backups, upgrade costs or accessibility issues. Spektrum is secure and reliable, available 24x7. Subscribe to Spektrum today to benefit from our launch offer until the end of the year. cc AIS Software, BLB903, Bulebel Industrial Estate, Zejtun. T: 2180 3350; E: sales@ais.com.mt

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Investor risk profile as the front and centre of an investment strategy Jesmar Halliday - Portfolio Manager at BOV Asset Management Limited

Following the recent global financial crisis, global retail investors have become more recognisant of potential downside risk. This altered investor behaviour results in greater attention towards myriad investment risks. The BOV Investment Funds were conceived on the premise that retail investors are mindful that investment returns result from the ultimate risk exposures. Accordingly, the risk element was propelled at the front-end of the investment strategy. Focusing on the underlying risk parameters, retail investors have the choice to select the best-suited asset allocation which represents their risk profile. The three sub-funds available vary in terms

of allocations and risk buckets. These are known as the BOV Conservative Portfolio Fund, the BOV Balanced Portfolio Fund and the BOV Growth Portfolio Fund. The investor life cycle proposition underscores the concept behind the creation of the BOV Investment Funds which seeks to address different types of needs throughout the investor spectrum. Conventionally, investors still in their early stages of their life have greater capacity to bear risk, hence the Growth Portfolio Fund which is exposed more to growth assets will be the investment of choice for a typical investor. As the investor progresses through life, the ability to bear risk declines. This will result in a shift by investors to the Balanced Portfolio Fund and eventually the Conservative Portfolio fund. The BOV Investment Funds provide investors with the adoption of a global mandate which ensures a degree of diversification, unprecedented when compared to traditional local portfolio structures. Each fund is structured to cap the underlying risk of the fund based on a predetermined Synthetic Risk and Reward Indicator (SRRI). The latter is used to classify the investment funds into one of three different risk categories (low risk, medium risk, high risk). Additionally, the funds adopt a multi-asset approach which allows a high level of flexibility, which ensures that

the fund pivots risk exposures in line with market opportunities. The three investment funds also provide for a legal formation arrangement which is cost-effective, whilst at the same time providing all the legal entitlement and protection for retail clients. Effectively, the retail client has access to a discretionary management team that undertakes decisions to the ultimate benefit of the retail investor at a fraction of the price associated with this type of service offered by major institutions. cc www.bov.com

Moak People Training: the new Maltese training academy for professional caffè baristas and coffee aficionados Moak People Training (MPT) is the training academy for baristas and aspiring professionals in the ho.re.ca sector. The school is hosted by Moak International Distributors, in Mdina Road, Mriehel. The training centre also serves as an office hub for the Maltese branch of Caffè Moak, an Italian coffee roasting and distribution company which has been established for the past 50 years. MPT offers training courses designed for people who want to learn to be baristas, and for coffee professionals who want to certify their skills and exploit them internationally. The courses are held by a team of specialised trainers coordinated by Marco Poidomani, OCTOBER/NOVEMBER 2018

AST trainer of SCA (Specialty Coffee Association) and Italian champion 2017 of Coffee in Good Spirits. Participants will be able to take courses in cafeteria, latte art and food and beverage of various levels – from basic and intermediate to training courses aimed at expert baristas. At the academy, moreover, you can follow the ‘Roasting’ modules at professional and intermediate levels, which are dedicated to those who want to understand the roasting process and be able to recognise which sensory notes a specific mixture can give off. In fact, the goal of Moak People Training

is the complete training that revolves around the coffee universe, from the plant to the preparation in the cup, to the alternative methods of extraction, to the experimentation of new combinations and coffee cocktails. Today’s consumer is more and more curious, educated and loves to follow new trends, therefore whoever is in charge of the counter needs to have the ability to relate to the public, as well as have knowledge and competence in the sector. cc For information and reservations: T: 2347 9980; E: mandi@moakmalta.com. Follow us on Instagram: @midmalta 107

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Thomas Smith reaches new destinations with Far East container groupage service Thomas Smith’s specialised freight and logistics transport services have now reached new territories by expanding their existing groupage route to a wider network in the Far East. Together with trailer services operating from European destinations, Thomas Smith now has a hub in Singapore to cater for clients’ growing shipping needs. Thomas Smith is now able to offer clients groupage services to Malta through the Indian Ocean and the Middle East shipping routes. Through this avenue, extensive alternatives have been made available for cargo imports originating from Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Vietnam and the United Arab Emirates. Merchandise from all the above territories is consolidated through

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Thomas Smith’s hub in Singapore, with a 16day transit time, with an average of 30 days conveyance from all 17 destinations. The Far East groupage route was introduced to ensure customers get the best shipping service, irrespective of where cargo is imported. Thomas Smith will handle imports of various commodity types, excluding hazardous and temperature-sensitive products. Cargo from Far East routes will be consolidated weekly and placed on the first vessel from the Singapore hub to set sail directly to Malta within the fastest timeframe. Thomas Smith representatives will offer the best guidance based on client requests and timelines, in light of time-sensitive deadlines. With an array of approved international partners, gathered along years of operations

in the shipping field, Thomas Smith promises its new route will match the rapid handling and qualified service offered through all the company’s current freight services. cc For a complete logistics solution for your business, contact our Business Development Manager on T: 2205 8134. Thomas Smith Group is one of the longest-established service group of companies on the island, specialising in international shipping services and insurance. The Group holds a leading market position in most shipping-related services, namely port agency, freight forwarding, project cargo, logistics, reefer cargo, airfreight, express services, groupage, trailers and full load containers.

www.tcsmith.com

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The silver lining in the Brexit storm With Brexit looming large on the horizon, governments and businesses alike are scrambling to find out exactly what is going to happen when the deadline hits. Some, however, are looking more optimistically to the future and making the most out of a troubled time. Lewis Pitcher speaks with Malta-UK Business Promotion Task Force Head Joseph Zammit Tabona about the opportunities for Malta that Brexit may bring, as well as what is being done to make them a reality.

he air around Europe has been chaotic since the UK’s shock decision to leave the EU, against all predictions made by the most seasoned political and commercial forecasters. However, rooted in the belief that there is always a silver lining to every cloud, the Maltese Government has set up the Malta-UK Business Promotion Task Force to bridge the new gap that will be formed in March of next year. The task force is headed by Joseph Zammit Tabona, a widelyrespected figure in the business circles of both countries, who details just some of the work his team has carried out to find the best opportunities for the island. “What we’re doing is working with UK institutions and organising events with the likes of the Confederation of India Industry, Institute of Directors, London Technology Club and other UK institutions. Our main aim is to promote Malta as an EU base for the future, with those companies and groups in the UK that have previously relied on the free movement of goods and services within the EU. India, for example, is one of our main focuses, as there is a strong base of Indian companies within the UK that do a great deal of business with other European countries,” Mr Zammit Tabona explains, adding that Malta is soon to be the only EU member state, along with Cyprus, which forms part of the Commonwealth once the UK leaves next year. “On top of that, we have the advantage that we are one of the few English-speaking nations in the EU in that our official business and legislation is all done in English primarily. I think that there are real opportunities for Malta to reap.” The approach to these discussions has been far more hands-on and face-to-face than many may realise. “Back in February, we organised for the Prime Minister to have lunch with a sizeable number of representatives from Indian businesses in the UK. That, in turn, led to a familiarisation visit here at the end of May of about 20 people led by Lord Bilimoria and Lord Gadhia. I personally currently spend three or four days in London a week, continually talking to people and trying to bring them to Malta for short visits filled with meetings with key persons around the island. I believe that having these people visit Malta can make our

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talks with them that much more successful,” he maintains. There has also been a need with these projects to make the absolute most of individual skills and experience. “Our main limiting factor is funding; we don’t really have the ability to have anyone working full-time within the team. As a task force, we did engage two research companies to look into specific areas such as manufacturing, but the majority of our work has to be done through connections and networking. Our close relationship with the Indian business community started about a year ago, and in part came about because I was fortunate enough to have a few contacts in the London business world who have been able to keep sending important persons in that community my way,” Mr Zammit Tabona admits. He also explains that there is a lot of thought and preparation going into doing business in the other direction, once the UK becomes a new market separate from the EU. “As part of our work we have visited Gibraltar with a view to use it as an option for those Maltese businesses that wish to operate within the UK. Gibraltar has just signed an agreement with the UK to allow for a natural process of passporting, making movement much easier post-Brexit. We are currently looking into what opportunities this could bring to Maltese companies and will likely be recommending that those companies wishing to establish themselves in the UK use Gibraltar.” Unfortunately, the ever-present doubt that persists around Brexit causes problems for every project linked to it. “One of the biggest issues with Brexit in general right now is that no one really seems to be sure of anything,” Mr Zammit Tabona laments, explaining that “different rumours have suggested that Theresa May is hoping to delay the deadline, others say that if no deal is arranged in November, there won’t be a deal at all. There are even some with professional insight who suggest that, within 10 years, the UK could be reapplying for membership, even though that would mean adopting a much worse arrangement than the previous one.” This continuing chaos is having dramatic effects on various sectors, he continues, revealing, “I’ve been told on serious authority

“Our main overall aim is to promote Malta as an EU base for the future, with those companies and groups in the UK that have previously relied on the free movement of goods and services within the EU.”

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“We have visited Gibraltar with a view to use it as an option for those Maltese businesses that wish to operate within the UK.”

that, within the City of London financial sector, thousands of prospective jobs for the future have already been lost to the Brexit uncertainty. For instance, foreign banks which were looking into setting up a UK branch have backed out and looked elsewhere, which was a loss of thousands of potential jobs with them alone.” Still, these companies retreating from the UK do not necessarily pose a prospect for Malta, Mr Zammit Tabona points out, adding, “in reality, these bigger firms are not really viable for Malta, both in terms of space and more importantly in terms of labour force required. These companies are expected to need anywhere from 1,500 to 2,000 OCTOBER/NOVEMBER 2018

employees, which is impossible in a labour climate where local companies requiring only 300 employees are struggling with recruitment.” “That is why we are looking into bringing the smaller companies here, as small companies that came to Malta 30 or 40 years ago have become huge employers now. This includes companies like Playmobil, that started with somewhere around 50 employees and now has over 1,000. These companies got to know the culture and work ethic here in Malta, and continued to invest more and more into their operations here. Thankfully, while there is a shortage of talent in some areas, the Maltese Government is

more than willing to invest in training where it is needed most,” he continues. Mr Zammit Tabona also believes that one of the most offputting aspects of setting up in Malta is one that is often mentioned by individual expats too. “One of the biggest hurdles reported by companies migrating to Malta is not the process of establishing the company itself, which for many industries can be relatively easy, but is simply the opening of a bank account. The opening of an account here can take at least three months if not up to four or five, and this remains a huge issue; in many cases, companies are forced to set up accounts overseas just to get started here,” he asserts. 111

CC interview Having said that, aside from the difficulties, Mr Zammit Tabona believes that the increase in companies coming to Malta could be beneficial for more than just the local economy. “Maltese companies would certainly benefit from the exposure which could open up many doors for them to grow and expand. There are certain companies currently in the process of setting up a base in Malta that are also transferring several services performed by companies elsewhere to equivalent local companies. At the same time, many of these local companies are already actively attending conventions organised by the various Maltese authorities, and have been establishing links and connections with the foreign companies present. I encourage local business owners to network as much as possible at this time,” he says. This advice, however, does come with a word of caution about the latest trends in the business world that are gaining momentum through such connections. “When I attended the DELTA Summit held in Malta a few weeks ago, I noticed that there was a huge number of Maltese looking to jump on the bandwagon with things like blockchain and cryptocurrency. I think that Maltese businesses should exercise caution; these are still very new

“One of the biggest hurdles reported by companies migrating to Malta is not the process of establishing the company itself, which for many industries can be relatively easy, but is simply the opening a bank account.” concepts, and while they have potential for success, there is also a great potential for people to get their fingers burned. There is the famous case of bitcoin, which at

one point reached a value high of around $20,000 but then dropped to around $6,000 in a flash. There is no such thing as easy money,” Mr Zammit Tabona warns. cc

CC meet the artist

The beauty of spontaneity Sarah Micallef meets seasoned ceramicist George Muscat, whose tireless energy is infectious, and comes across in each and every piece he creates.

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CC meet the artist

t’s not often that you meet someone who’s so enamoured with their craft that their excitement and energy towards it is infectious. This was my experience upon speaking with ceramicist George Muscat, who, despite an artistic career spanning several decades, harbours a passion and enthusiasm for ceramics that is difficult to convey. “With ceramics, you can either read a lot about it, or you can learn through experimentation,” says the ceramist, who received his education at the Salvatore Dimech School for Craftsmen under the tutorship of Gabriel Caruana between 1975 and 1978. He went on to attend various courses by Maltese and foreign artists which, together with a good deal of experimentation, contributed in making him an excellent thrower, as well as enabling him to acquire several hand building and glazing techniques. George’s first encounter with his treasured medium came about at the tender age of 14. He recalls sitting for an entrance exam to get into what is now MCAST in Targa Gap. The exam consisted of a still life drawing and creating a clay tile, and George placed first. “It was the first time I had ever touched clay,” he smiles.

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CC meet the artist building a house for his young family. Standing now within the studio of the house he built, he looks around and says, “it took me two years and eight months to finish this house, part-time, after work.” And once he had his own studio, there was nothing else for it: it was finally time for George to focus on

ceramics properly. “I bought my first kiln and started working, holding my first exhibition in 1997. It all went from there,” he recalls with a smile. “Art critic Emanuel Victor Borg would always tell me that it’s selfish to work and not exhibit, because art is made to be shared, so I put up my first exhibition,” he says, and after that, another art critic, George Glanville, gave him a valuable piece of advice that would spur George to push himself ever harder. “He told me, ‘there is no looking back now.

“With ceramics, you can either read a lot about it, or you can learn through experimentation.”

Being taught by celebrated artist Gabriel Caruana, who George fondly refers to as ‘maestro’, George likens his approach to ceramics to Gabriel’s own in their preference for spontaneity, albeit, he admits, it wasn’t always the case. Directing me to a sculpture from his first exhibition in 1997, the artist explains that the sculpture, denoting Dwejra in Gozo, took him a week to complete. “It wouldn’t be the case today,” he says, explaining, “today, I’ll just create clay canvases which allow me to be spontaneous,” pointing at a few he has on his workbench. “These take about an hour to do, and I’ll have three, four or five ready for when I’m feeling inspired. For me, the faster I complete a piece and the more spontaneous it is, the more I like it.” He links this immediacy to casting, which is among his specialities. “Casting is the closest I can get to photography – to capturing a moment,” he asserts, “if I were to cast your hand, the mould captures it, in that moment. Filling that mould with clay or resin is like developing a photo.” Looking back on his journey, George recalls having to make the decision to work in construction after completing his studies, and despite his true passion being art, he admits that the experience taught him a lot. “I realised that I couldn’t make a living from art, so I started working with my father. I branched out on my own and became selfemployed some time later,” he says, adding that for 10 years, his main focus was work, comprising mainly of construction and tile laying. He’d still join his mentor, Gabriel Caruana, for classes in the evenings, and was eventually entrusted with delivering evening ceramics classes for adults at the same school in which he had studied. He taught for a while, before taking a break to focus on OCTOBER/NOVEMBER 2018

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Photo by Inigo Taylor

There’s a ladder you have to climb.’ And after each successive successful exhibition he’d warn me, ‘you’re climbing the ladder quickly, be careful not to lose your footing. It’s OK to keep to the same step, so long as you don’t move a step down.’ That put a lot of pressure on – it’s what makes putting on an exhibition stressful once you gain a reputation,” he laughs. Asked about his technique, George shudders, “I don’t keep to a technique. It’s more about finding new things 118

“Art critic Emanuel Victor Borg would always tell me that it’s selfish to work and not exhibit, because art is made to be shared, so I put up my first exhibition.” and trying to apply them. I’m constantly changing.” The ceramist explains that to him, having a style is akin to falling into a comfort zone. “Why would you only do this?” he asks, gesturing at a cast. “Should I only do plates, because they sell like pastizzi? No – I do what I feel in that moment. Sticking to a style is like working in a

production line in a factory, and I’m afraid of that,” he laments. “If there’s anything that I’d like people to take away from my work it’s happiness,” he continues, adding that he wants his work to make people happy. Apart from the evening ceramics class, George also introduced Japanese pottery technique raku as a course in Malta, going on to give raku lessons at MCAST Institute of Art and Design. And despite enjoying teaching and planning to return to give evening classes now, he admits that long term, his primary focus remains his art. Asked about his creative process, George can’t resist joking, “the worst is when you have commissions! I would love to work when I’m in the mood, but when you have a commission, you can’t do that.” OCTOBER/NOVEMBER 2018

CC MEET THE ARTIST more – it makes you want to control it, and leaves you frustrated because you can’t.” He directs me to three rectangular pieces coated in finely crushed glass, which are waiting on his workbench to be fired at a later stage. They denote the Vitorja, the crucifixion and the resurrection of Christ, he explains, and were all done quickly, in one day. Pointing to the area around each piece that shows where the clay has contracted and shrunk, he explains, “these need to sit for seven to eight weeks, in order for the clay to lose 80 per cent of its moisture,” and only then can they be fired and the results be seen.

Photo by Inigo Taylor

The animated ceramist brings out a slab of clay to illustrate the spontaneous element he favours in his work, and the changeability of his chosen medium. He carves out a small section of clay and works it with his hands, forming a ball before throwing it and flattening it against the table. “This is the beauty of spontaneity,” he says, using a tool to make markings in the surface of the clay. “This technique is called stretching,” he explains, as he picks up the piece of clay and with the skill of someone who’s done this many times before, begins to throw it, at an angle, against the table. With each throw, the scored markings stretch and change, transforming the surface of the slab entirely. It’s no surprise then, that the artist is so inspired by his medium. “Once you begin working with clay, it makes you want to know

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“I don’t keep to a technique. It’s more about finding new things and trying to apply them. I’m constantly changing.”

And it was in Egypt in 2000 that George met his idol, ceramist Nicolas Pit. “My work was included in a book featuring the work of 500 artists that was published from that trip, and as luck would have it, they placed my work on the same page as that of Nicolas Pit,” he grins. And with nine personal exhibitions under his belt, I ask George, what’s next? His reply is humble and once again, reveals his tireless energy towards his craft. “I just want to keep working, so my wish is to be able to do so. One of my primary focuses at the moment is casting, and I’d like to continue exploring that, as well as nurturing and helping other artists, and forming part of other artistic projects. And hopefully, there will also be another exhibition on the cards soon.” We can’t wait to see what’s next. cc

And with an artistic journey spanning so many years, the ceramist is bound to have highlights. Looking back on the myriad pieces he’s created, he reveals, “one of my personal favourite pieces is hanging in the main hall of the ONE TV studio in Marsa, and it’s called Malta. It’s a big, colourful piece that denotes what makes up our island, and looked at from afar, taking in all the different pieces, it takes the form of a fish. Across from it, there is another of my pieces called The Day After – a landscape filled with recycled glass, which I also really like. Another memorable piece was one I did for then-President of Malta Dr George Abela, which is at Verdala Palace.” His work has also taken him across the globe, with travels to Egypt and China among several trips during which he represented Malta alongside other international artists. 122

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