The Commercial Courier December 2018/January 2019 by Content House

THE COMMERCIAL/81

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

DECEMBER 2018/JANUARY 2019

A restored gem Luxury and refinement in the capital

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE BUSINESS AND ECONOMIC OUTLOOK FOR 2019 / LOCAL BUSINESS VETERANS HAVE THEIR SAY ON WHAT’S IN STORE FOR MALTA IN 2019 / REAL ESTATE AGENCIES DISCUSS GOVERNMENT’S WHITE PAPER ON RESIDENTIAL RENT REFORM / JONATHaN SHAW TALKS ABOUT CHANGE AND HIS RECENT BOOK LAUNCH / BUSINESS COACH NATHAN FARRUGIA ON THE IMPORTANCE OF LEARNING TO UNWIND OVER THE FESTIVE SEASON / VISUAL ARTIST PAWLU MIZZI’S CURRENT EXHIBITION AND ARTISTIC JOURNEY / THE LATEST BUSINESS NEWS

THE COMMERCIAL/81

COURIER DECEMBER 2018/JANUARY 2019

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91.

110.

FOOD trends

92 INTERVIEW LET’S PRESS REFRESH CEO coach and trainer Nathan Farrugia shares his advice on why winding down is so important at this time of year, with Jo Caruana.

12 COVER STORY WHAT WILL 2019 HOLD FOR BUSINESSES IN MALTA? Martina Said reaches out to well-established businesses across various sectors to find out about their achievements in 2018, as well as their projections for 2019.

104 PROPERTY

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REGULATING THE RESIDENTIAL RENTAL MARKET: HOW WILL IT AFFECT TENANTS AND LANDLORDS?

31 COVER STORY

76 DESIGN TRENDS

THE WISDOM BEHIND EXPERIENCE

A GLITTERING TRIBUTE TO GENERATIONS PAST

As 2018 comes to a close, five local business veterans share their thoughts on what’s in store for Malta in 2019 with Jo Caruana.

Sarah Micallef meets owner of Domus Zamittello Count Manduca to find out what went into its impressive restoration.

Martina Said reaches out to local real estate agencies for their thoughts on Government’s White Paper on residential rent reform, finding out who stands to gain, and how it will affect the market.

43 IN FIGURES

84 INTERVIEW

110 MEET THE ARTIST

2018… IN NUMBERS

THE ART OF REINVENTION IS KEY

EXPLORING CONNECTIONS

A look into the figures which defined the year.

Businessman and writer Jonathan Shaw speaks to Rebecca Anastasi about the importance of learning and evolving by enabling change – the premise of his book #Forty, Be the Change.

Visual artist Pawlu Mizzi chats to Martina Said about his current exhibition, Kobba, the evolution of his journey and his pursuit to bring artistic projects into the community.

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 Malta Chamber of Commerce, Enterprise and Industry. It is also distributed with The Malta Business Weekly, as well as delivered to leading business people on the island. This issue covers the months of December 2018/January 2019.

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STYLE REVIEW

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.

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

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ON THE COVER Detail from Domus Zamittello. Photo by Brian Grech

Malta chamber’s bronze collaborating partners DECEMBER 2018/JANUARY 2019

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A strong voice in Europe In line with its mission, the Malta Chamber’s activities to represent its members and voice their concerns on the matters that affect their day-to-day operations are not limited to the local context. In the same way that the Chamber acts as an influential force on behalf of members with the local authorities and decision makers, it also makes it a point to be heard at an international level, not less in the European fora, where it rubs shoulders with the continent’s stalwart business bodies.

ne such forum is the BUSINESSEUROPE Council of Presidents which is organised twice yearly in the country hosting the Presidency of the EU at the time. At this meeting, presidents of business organisations from across Europe discuss and debate the issues

of the day. Within this context, Malta Chamber President Frank V. Farrugia had a productive one-to-one meeting with BUSINESSEUROPE President Pierre Gattaz, where he expressed Malta’s entrepreneurs’ concerns on Brexit and other issues currently characterising the economic scenario in Malta.

“The Chamber makes it a point to be heard at an international level, not less in the European fora, where it rubs shoulders with the continent’s stalwart business bodies.” DECEMBER 2018/JANUARY 2019

Mr Farrugia explained that Brexit needed to be dealt with with more urgency, and businesses demanded more clarity about the detail of the process, well before March of next year when it is expected to happen. Businesses whose operations rely on smooth European and extraEuropean relations needed to be sure that their efforts would not be interrupted come March 2019, which would have unimaginable adverse effects on them. 09

CC Editorial During the same COPRES meeting, Mr Farrugia, who was accompanied by the Chamber DG Kevin J. Borg, had a meeting with Confederation of British Industry (CBI) Director General Carolyn Fairbairn, during which they discussed issues of cost competitiveness affecting industry in Malta. The Maltese delegation also met with its German counterpart and spoke about the current debate in Malta on obligatory union membership for employees. While expressing their support for the Chamber’s arguments and position on the matter, the German employers’ representatives said that such a development could trigger a domino trend that could negatively affect and spill into other member states. On a separate occasion, through its Deputy President David Xuereb, the Chamber continued to underline the issues faced by its members. Addressing the European Parliament for Enterprises (EPE), an event organised by Eurochambres bringing together business organisations from across Europe to debate matters in a European context, Perit Xuereb said that societies and markets were being transformed through demographic phenomena and technological advancements. He said that our educational system lacked the ability to keep up with upcoming

trends and provide a suitably equipped workforce for tomorrow’s economy. 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 the continent’s ability to up-skill its human resources, particularly in STEM (science, technology, engineering and mathematics) areas. 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 STEMrelated fields, while Europe is falling behind due to brain-drain and misused resources. There is 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. We need to marry STEM with children’s compulsory education. These two initiatives may notably improve the EU’s supply of the new skills required to meet the demands of

an ever-evolving society and economy. Speaking on behalf of the Malta Business Bureau (MBB), President Simon De Cesare 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. This process however needs to take into account the current intrinsic differences in the level of development, and permanent big-small, and centre-periphery disparities of member states. Time is of the essence and we need to act now through the implementation of structural reforms when they are affordable rather than too painful, and designed to avoid crises of the future not react to them. We also need a Union functioning through democratic and transparent institutions; and with economic competitiveness at the centre of its political vision, as the key for growth, investment and the creation of jobs. The Malta Chamber is committed to its mission to represent its members and their concerns. Malta’s businesses shall continue to find a strong voice through the Malta Chamber, both locally as well as in all relevant European fora in favour of competitiveness and economic growth. cc

“It is evident that securing Europe’s present and future relevance and competitiveness greatly depends on the continent’s ability to up-skill its human resources, particularly in STEM areas.”

DECEMBER 2018/JANUARY 2019

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What will 2019 hold for businesses in Malta? Martina Said reaches out to well-established businesses across various sectors in Malta to find out about their achievements in 2018, as well as their projections for their company and sector in 2019.

018 was a year that stimulated and delivered growth and prosperity across many of the island’s economic sectors, in line with Malta’s stable and growing economy which set the foundations for such growth. But can it be maintained throughout the coming year and beyond? David Xuereb, Chief Executive Officer at QP Management and Deputy President of 12

the Malta Chamber of Commerce, Enterprise and Industry, says that indeed, 2018 was a very good year for his firm, which is a design, engineering and management organisation that employs professionals who deploy services in the international building industry. “This was mainly the result of some very good organisational work that had been developed within QP over the last

four to five years. A clear vision, directed by a strategic mission, was then empowered by focused aims and objectives, which directed the company to focus on developing internationally,” says Perit Xuereb. Testament to the company’s success and growth is its international presence. QP is now represented in nine countries spread across three continents. “2018 was a year DECEMBER 2018/JANUARY 2019

CC COVER STORY easy and as a result, our employee base has increased through intense international recruitment.” Commenting on the country’s economy, Perit Xuereb asserts, “it is clear that the economy in Malta has outperformed any expectations. Projections indicate that 2019 will be a similarly strong year, and I would hence assume that QP will continue to grow in the same manner that we experienced in 2018.” However, Perit Xuereb adds that it is no time to be self-assured about achieved successes. “As the country’s economic performance continues to grow consistently year on year, I strongly suggest we do not remain complacent about the fruits that such circumstances are bearing. Our economic and business environments are changing very rapidly, and while we need to continuously update and improve our operations, we should maintain focus on our economic competitiveness internationally,” he asserts. “Malta’s performance alone should not reassure us, and we should remain focused on the international geo-political climate we are placed within. Internationalisation and increased export of our services from Malta will remain a significant objective in 2019.” As for the company’s future plans, Perit Xuereb says that growth will remain dependent on the organisation’s ability to inspire quality in the services that it provides internationally. “If we remain true to our character, as we grow, QP intends to lead in its vision to maintain trust with its customers and develop innovative and new service products. Technology will assist us in achieving our objectives.”

In the automotive industry, Geoffrey Debono, Managing Director at Michael Debono Ltd (MDL), says that the global industry is experiencing huge disruptions that are impacting every touchpoint of the company’s business. “This disruption is affecting every organisation in the industry in different ways, and we’ve had to take a long, hard look at the way we do things in order to ensure we can adapt and succeed in view of the new reality ahead of us.” Mr Debono asserts that, in 2018, a big part of the conversation focused on and around powertrain technology. “The advancement of electric technology and the obvious challenges of diesel have been high on the agenda. Governments across Europe have started to set bold targets to cut emissions and achieve the near-immediate removal of diesel vehicles from the system,” he explains. “As part of a global organisation that has been one of the pioneers of alternative powertrain technology, we realised that this was a big opportunity for us as Toyota. As at today, self-charging hybrid technology is probably the most relevant powertrain solution on the market, because it is not prone to the challenges still faced by electric vehicles – namely battery life, range and limited charging infrastructure – whilst being a marked improvement on traditional combustion engine powertrains.” MDL has therefore put hybrid vehicles front and centre of its overall offering. “This played out well with customers, who were drawn not only by the eco credentials of our vast hybrid range, but also by the smoothness of the driving experience and the improved fuel economy.

that personified the success derived from the said objectives, and we’re looking to develop this even further in the coming years,” says Perit Xuereb. “QP is a professional brand built on honesty, integrity, passion and hard work. Revenues are only possible with strong and accountable human resources who share the same vision. Seeking serious numbers of qualitative professionals has not been DECEMBER 2018/JANUARY 2019

CC COVER STORY Thanks to this, we are proud to say that the majority of the vehicles we are selling today come with hybrid powertrains, and the community of Toyota hybrid drivers is forever growing.” The company has also pushed for improvements to its customer experience offering, with the aim of bringing change to its internal culture in order to better understand and address the needs of its evolving customers. “Actions range from simple steps such as improving the quality of the coffee we offer in our customer hub, through to more complex improvements such as rolling out a stronger range of vehicle financing solutions that better suit the needs of today’s consumers,” says Mr Debono. “Our actions have helped us register some highs, but there is lots more we need to work on, and are looking forward to, in 2019.” Mr Debono adds that the company’s greatest disappointment is when it lets customers down, and when it fails to deliver what it promises or even meet customers’ expectations. “Today, we have systems and technology in place to learn from these missteps, in order to improve our process and approach, as well as the experience offered to each and every customer.”

DECEMBER 2018/JANUARY 2019

Speaking of Malta’s economic climate, Mr Debono believes that the economy is truly performing, which has translated well for the local automotive industry. “Through vehicle registration statistics we can see that numbers are up across the board – new, used, bikes and commercial vehicles – so 2018 was definitely a good year in terms of volume,” he asserts. “Our hope is that 2019 will continue in this vein, and indicators all seem to point in this direction. We are therefore cautiously optimistic. Having said that, we understand that we need to continue to be driven and pro-active, and we’ve got a strong plan to ensure we do our part to realise the market’s potential.” Looking ahead to the challenges and opportunities in 2019, Mr Debono says that the powertrain discussion will remain topical, as more electric vehicles become available and the infrastructure to support these continues to grow. “The presence of

key Government incentives aimed at helping the rejuvenation and quality of the vehicles on our roads will continue to present a good opportunity for our business,” he asserts. “We are confident that all the brands we represent, Toyota first and foremost, will continue to deliver improved product line-ups throughout 2019. We will be doing our best to harness the opportunities that these new additions to our product offering present.” Over at digital agency Think, 2018 was defined by successful product launches and ventures into new fora for the company. Bjorn Azzopardi, Director at Think, says “we love creating products, and this year, one of the products we incubated was fledged off as a separate company and is operating with its own team. This was definitely one of the company’s highs as it really encapsulates what we love to do. The tool, called Biird, is a localisation tool which makes developers’ lives easier.

“As the country’s economic performance continues to grow, I strongly suggest we do not remain complacent about the fruits that such circumstances are bearing.” – David Xuereb, Chief Executive Officer at QP Management

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It was released and is already being used by a handful of clients. Although it is still early days, the response and outlook seem very promising, and we look forward to seeing it mature in 2019.” Together with Biird, 2018 also saw the launch of another product by Think, one the company had been working on for a while, that is based on loyalty. “Part of the project was to develop a mobile-first loyalty system, which is an independent platform with a set of great features. We successfully implemented this system in some of the largest retail groups on the Maltese islands and are very proud of the feedback we received from our clients.” On the downside, however, Mr Azzopardi says that “having focused a lot of our energy on new projects, there is never enough time to regroup and acknowledge the successes we achieved, as well as work on our new milestones. I am very proud of the excellent team we have and continuously strive to maintain our positive dynamic.” Taking a wider look at the local tech industry, Mr Azzopardi says that it is indeed flourishing, and shows no signs of slowing down in 2019. 16

“As at today, self-charging hybrid technology is probably the most relevant powertrain solution on the market.” – Geoffrey Debono, Managing Director at Michael Debono Ltd

DECEMBER 2018/JANUARY 2019

CC COVER STORY “2018 saw the inception of a number of great ideas and start-ups, especially in the tech industry, which I am sure will create interesting opportunities. I believe it is only a matter of using these opportunities and translating them into new ideas that will work for the industry.” Looking ahead, Mr Azzopardi is a strong believer of having the right implementation strategy at the right time, with the company’s greatest challenge always having been that of finding the perfect mix of resources to design, develop and implement a product. “We are constantly working on improving the dynamics of our team, as well as developing our own knowledge in line with new trends and technologies,” he explains. “This is definitely the biggest challenge we envisage in 2019. Still, this will not stop us from taking on any opportunity 2019 will bring. We are surrounded by great companies with great ideas that allow us to validate our products locally even further. Our combined expertise

DECEMBER 2018/JANUARY 2019

enables us to understand their issues and provide an optimal solution.” In fact, Think will be launching one of its products, ‘Software as a Service’, next year, allowing the agency to reach more markets locally, as well as internationally. “This is the final step in what was, until some time ago, just an idea, and we are all very eager to hit the ground running,” says Mr Azzopardi. “This product will be built on proven technology, one which was implemented numerous times locally and internationally, and it is now just a matter of expanding this to the global market. We look forward to the challenges and hopefully successes that 2019 has in store.” In the retail sector, Sam Borg, Chief

Operating Officer of Bortex Group, says 2018 was a year of shifts and change for the sector where, for the first time, more than half of apparel and footwear sales originated outside of Europe and North America, exemplifying the shift of growth from emerging market countries across AsiaPacific, Latin America and other regions. “Brexit continues to cause uncertainty, and this remains an ongoing low in our sector, particularly in view of the business we currently do in the market. That said, for Bortex, 2018 was a year of more highs than lows, one which allowed us to continue international growth of the in-house brand, Gagliardi, with new store launches in Sweden, Serbia and Russia,” he explains.

“We are surrounded by great companies with great ideas that allow us to validate our products locally even further.” – Bjorn Azzopardi, Director at Think

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“Double digit international sales growth through our online channel continues to exceed our expectations.” – Sam Borg, Chief Operating Officer of Bortex Group

“Double digit international sales growth through our online channel continues to exceed our expectations. Locally, the Bortex multi-brand concept has also sustained a very strong performance in spite of increased competition from other market players and ecommerce. The introduction of a ‘made to measure’ service and increased efforts on our Corporate and Hire divisions have been most encouraging. Lastly, our portfolio of private label customers gives us confidence going into the new year, but we remain humble in the pursuit of excellence in the sector.” Looking at Malta’s economic performance in 2018, Mr Borg asserts that he’s confident the upward trend will continue. “Although one of many markets that we operate in, the Maltese market remains important to our business, and Malta is our operational headquarters. Indeed, the Maltese economic trajectory is promising; with the continued efforts to drive economic fundamentals together with new, innovative and emerging industries being attracted to Malta, we are excited for the future prospects of the island

and the Maltese market in general.” Mr Borg’s outlook on business in 2019 is also optimistic, although he says this varies across value segments. Changes have certainly been noted, for instance, with consumers trading up or down from mid-market price points to affordable luxury or value and discount segments. “We need to capitalise on these movements. Moreover, consumers’ adoption of digital, together with raised expectations of customer experience and higher scrutiny on convenience, price, quality, newness and a personal touch, remain important challenges which we, in turn, view as opportunities for differentiation and competitive advantage.” For Bortex, 2019 is set to be an interesting year – Gagliardi will open its doors in the Polish and Cypriot markets, with lots of interest from the US, China and other markets. “Bortex will also be launching the first Ralph Lauren mono brand store at The Point in late Q1 next year. This is the first of three store openings planned for the coming years.” cc

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Leading businesses shine a light on the year ahead How was 2018 for the business community in Malta, and what does 2019 augur? Key figures from various sectors in Malta share the milestones and achievements that they hit in 2018 with Marie-Claire Grima, and discuss the challenges and opportunities that they will be facing in the coming year.

Ben Lehner Pace Co-Founder and Director, Broadwing

Broadwing is a state-of-the-art employment agency targeting businesses and candidates alike offering recruitment and HR services. Its goal is to provide exclusive employment expertise for accountancy and financial services, online gaming and IT, sales and marketing, legal and compliance, as well as hospitality and catering. Being the first year of operations, 2018 was an exciting year for Broadwing and its directors. We have seen excellent growth thanks to a good work ethic, a strong marketing campaign and a personal approach. While we’ve certainly had our ups and downs, as any start-up does, our team has always pulled together, allowing us to not only overcome obstacles but thrive in the

highly competitive recruitment industry. Our biggest achievement was the launch of our website and optimised recruitment portal, synchronised with Bullhorn, the leading CRM and application tracking system used by the global recruitment industry. We are proud to have received excellent feedback on our portal and services, having been quoted by top companies in Malta as ‘a refreshing change’ in the recruitment market. We are also very proud of the strong international network that we established this year, allowing us to better service companies in Malta, which has a shortage of candidates needed to service an evergrowing economy. The team is always looking for ways to improve the candidate experience, which led us to the launch of CheckMySalary.mt, a simple tool that calculates an individual’s net salary. Without divulging any names, our biggest milestone has been to sign up some of the biggest employers on the island across various industries, including – but not limited to – financial services, legal, IT and gaming, and importation and distribution. Our onboarding has been so effective that we were also able to sign on and service the catering, hospitality and construction industries even though this was not part of our original plan. This has been possible thanks to our international recruitment partners in the UK, Poland, Romania, Germany, Portugal, India and South Africa to date, which have given us access to a much larger candidate pool than is available locally.

It is a known fact that Malta has a shortage of workers, and with one of the lowest unemployment rates in Europe, we are expecting to need around 35,000 new workers over the next five years. This is undoubtedly very encouraging for the recruitment sector, and promoting the island is essential. While Malta is a great destination to travel to, it also offers a great work-life balance and social life. However, the biggest challenges we will face in 2019 are the painstakingly slow process of applying for work permits, expensive property rentals, and the near-impossible task of opening a bank account for foreigners. Fortunately, we have already seen an improvement in the processing of work permits, especially those for highly qualified individuals who can apply through the Key Employee Initiative. Our plans for 2019 include offering more services to companies and candidates alike, including training courses and better relocation packages. We are also in the process of developing a new job portal, yachtingcareers.com, which we plan to launch towards the end of the first quarter. We also have plans for the development of other free online tools related to the HR and recruitment industry. Our team is focused on improving the screening process for clients, while safeguarding the interests of employers and candidates alike. We are also looking forward to strengthen our standing in the iGaming recruitment sector, while establishing ourselves as the leading recruitment agency for the emerging blockchain industry.

“Our on-boarding has been so effective that we were also able to sign on and service the catering, hospitality and construction industries even though this was not part of our original plan.” DECEMBER 2018/JANUARY 2019

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Joyce Borg

Founder and CEO, JMP Malta JMP Malta was established in 1996 with the aim of supplying the highest-quality dishwashing detergents and systems, kitchen hygiene chemicals, housekeeping products and a range of ancillary items to the hotels and restaurants of the Maltese islands. Since then, the company has extended its range of products to become a ‘one-stop-shop’ with the aim of being able to cover any and all cleaning and janitorial needs. JMP supplies goods to hospitality businesses, factories and many other outlets. Since our inception, JMP has had a steady increase in market share and quality customers, resulting in a steady but consistent growth in revenue terms. 2018 was just as successful. Our team has worked hard to increase the output to keep up with our customers’ demands and the fast-moving economy. Our strong and proactive team works hard to maintain healthy relationships with all our valued customers. Our mantra has always been ‘slow but sturdy’, leading to healthy growth. To date, it has served us well. JMP offers its clients a variety of products. Our cleaning chemical range has been around since the beginning, whilst other goods, such as our scent marketing brand, are fairly new. This line specialises in aero diffusers, air fresheners, scented candles and

rattan sticks. These are all made from natural products and hypoallergenic materials which are proving to be a success. We are very excited about this range, and we are now seeing many of our clients signing up for long-term use of these products. Another priority is boosting our ecofriendly products, such as disposable paper made from recycled material, de-inked and not bleached, making it the most environmentally-friendly tissue paper on the market; front-door mats which contain 50 per cent or more recycled material; and public area and room attendants’ tools and trolleys made from second-life recycled plastic PSV. Naturally, we will also tend and nurture our legacy products which are cleaning chemicals, hotel guest supplies, colour-coded hygiene and HACCP-certified equipment and tools, the stainless steel furnishing range for public areas, receptions and restaurants, bins, umbrella stands, coat hangers and colour-coded separation bins, uniforms and first-aid kits. The Health and Safety Act has been in place in Malta for many years. Employers and employees can work together to increase awareness and implementation, and exercising discipline will mean fewer accidents. We have always aided the sector by supplying high-quality certified equipment and products. Since 1996, we have supplied our customers with the necessary data sheets. All our chemicals are compliant with EU standards. We also provide training to our

“Our mantra has always been ‘slow but sturdy’, leading to healthy growth. To date, it has served us well.” customers’ teams for the safe use of all our products. From the start, all our chemicals and cleaning equipment were colour-coded, properly labelled and easy to use. This was one of the reasons why we had such a steady growth throughout the years. JMP prides itself in supplying quality and in giving importance to ergonomics, aesthetics and cost-effectiveness.

Fabio Muscat CEO, OZO Group

Founded in 1996 by Mario Muscat, OzoMalta is one of Malta’s market leaders in the services industry. OzoGroup is comprised of 12 different companies, and employs more than 2,200 dedicated employees, all of whom have been professionally trained in-house at OzoAcademy. Over the past 20 years, OzoGroup has obtained considerable professional experience and built a solid reputation in the service industry, which is what led to its 99 per cent customer retention rate.

“Our main priority is to continue being market leaders in the hospitality industry, while diversifying into retail and manufacturing, an area which has seen a substantial growth in the last term of 2018.” 24

2018 was a very fruitful year for the Group, and definitely one to remember. The company has accomplished so much this year, and we are thankful for all the achievements. Being named national champions of the European Business Awards for the third consecutive year is a very big achievement in itself for us. This year has also marked the end of our two-year journey at The London Stock Exchange, and with great pride we can say that to this day, we are the first and only Maltese company to achieve such a milestone.

We have lots of new projects coming our way in 2019. We are ever-growing, and we are excited! Our main priority is to continue being market leaders in the hospitality industry, while diversifying into retail and manufacturing, an area which has seen substantial growth in the last term of 2018. We will also be inaugurating our €5.5 million head offices, an investment spread on a total area of 5,500 sqm. This will be a state-of-the-art working environment equipped with the latest technologies. We will also be looking to further invest a substantial amount in making the current training academy bigger and better. With Malta’s unemployment rate being next to zero, and one of the lowest in Europe, finding the right personnel has become more challenging. We are looking to further employ 500 new employees to satisfy the market requirements. Last year, we decided to increase salaries above the minimum wage bracket in order to entice more people to work in the hospitality industry, and also for retention purposes. In order to satisfy this demand, we will initiate a lengthy recruitment drive in Malta and across the globe. DECEMBER 2018/JANUARY 2019

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Kyle Debono

Founder, Finance By KD Finance by KD was set up in 2015 by Kyle Debono as a finance-related blog. Besides providing free posts related to investment ideas and finance concepts, Mr Debono also offers corporate entities various services, including non-executive director, independent investment committee member, personalised staff training, investment advisory and portfolio management, and more. 2018 was a milestone year for Finance by KD, as it went from the initial idea of being a purely educational blog on investment-related matters to a portal where professional services on an outsourced basis are offered. This was an important achievement in growing the business and the awareness of Finance by KD. For 2019, the priority is to keep growing the business organically through referrals and widening the network. There are plans to grow the business through complementary business set-ups; things are still in their early stages, but the general idea will be to continue offering complementary investment services (portfolio management, investment committee service) and regulatory services

(compliance and risk). Having expertise in both areas places Finance by KD in an advantageous position, especially when offering directorship or management consulting work. The key challenges in the year ahead are definitely time management and the efficient allocation of hours. There are plans in motion to have other set-ups in place which would complement the current offering and allow Finance by KD to reach the next level of service. Furthermore, taking on roles within entities or a similar set-up or subject to the same or similar regulations allows for a level of streamlining and efficient allocation of resources. In 2019, we should expect a continued period of low interest rates with low probability of any rate hikes. Growth locally is expected to remain high and above the EU average – this is being helped by the low interest rate scenario. However, we might very well experience some inflationary pressure as the housing market keeps heating up, and pressure on wages keeps mounting. On the international business front, the most significant risks remain the pressure on tax reform within the EU and the reputation of Malta in the eyes of foreign investors. The Moneyval evaluation will be a key aspect with respect to the last point.

“On the international business front, the most significant risks remain the pressure on tax reform within the EU and the reputation of Malta in the eyes of foreign investors.”

Marilyn Formosa Head of Legal, PKF Malta

PKF Malta is a fast-growing, progressive member of PKF International, a network of independent firms of accountants and business advisors with more than 440 offices in over 100 countries. PKF Malta provides services to many different organisations both in the private and public sectors. Its focus is on providing practical, realistic solutions tailored to each specific client, underpinned by both technical expertise and local knowledge.

“We will continue to grow our high net-worth and family office representation together with blockchain and AI around a global portfolio with quality partnerships.”

2018 has been an extremely fast-paced year for PKF Malta, with lots of travelling and blockchain buzzwords filling the air. We successfully participated in a blockchain roadshow in Tokyo and Osaka, Japan, last August, and reached new client bases in Hong Kong and Shenzen, China, in October, which were both memorable experiences. It is hard to believe that the year is almost up! This year, PKF successfully passed the high bar exam on DLT and Virtual Financial Assets set by the MFSA, successfully completed a trans-Atlantic audit in the US with $15 million assets under management, augmented our Malta-China desk under the one-belt-oneroad philosophy in the fruits of a two-year

strong journey that we started together with our China offices following a PKF International gathering, and made headway in attracting coveted captive insurance business to our shores. In 2019, we aim to continue supporting Government in the national target to set up an Innovation Hub through American and European investor interest. We have garnered and developed our Israeli ties in artificial intelligence (AI) as the pronounced next mountain to climb. Essentially, we will continue to grow and make relevant contributions to an incredibly fast-changing financial environment. Education is key to a strong foundation, so definitely further training in blockchain and related aspects will be a staple for 2019. We will continue to grow our high net-worth and family office representation together with blockchain and AI around a global portfolio with quality partnerships. In 2019, we will also be gearing up for changes that the new technological revolution is slowly brewing in our direction. While there is consensus that we are not in a cliff-edge stance, it is accepted that change will come and with that, only those capable of adapting survive.

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Adrien Bonnici CEO and Founder, QR Management

QR Management is a small professional entity that provides consultancy and quality auditing services to various industries including in manufacturing, maritime, hospitality and education. Our diverse experience and knowledge of industry requirements together with our hands-on approach has led QR Management to be well recognised. QR-Management embarked on a number of projects after conducting careful analyses of the industry’s demands and needs. We focus on the services we know best and excel in, while constantly maintaining the personal contact with the various stakeholders we do business with. This year we have managed to secure a number of contracts for new projects,

which we have already successfully started working on. The main priority this year is to expand our business in management and quality consultancy, client business development, European funded projects, education and training, as well as student travel, and high-end product importation and distribution. While competition is always a key threat, if we maintain the personal contact and deliver in a professional and efficient manner, we will be able to brave the waves. Consultancy is an ever-growing sector, and as long as companies and small businesses want to expand their operations, they will seek the services of the experts and professionals in the field.

“While competition is always a key threat, if we maintain the personal contact and deliver in a professional and efficient manner, we will be able to brave the waves.”

Robert Spiteri Paris

Co-Managing Director and Head of Lettings, Perry Estate Agents Perry Estate Agents in Malta is a secondgeneration family-run business with nearly 40 years of experience in the Maltese real estate market. Widely recognised as one of the leading estate agencies in Malta, Perry specialises in residential sales, lettings and commercial property. We have had an outstanding 2018 at Perry Estate Agents, as the Maltese property market remains buoyant, underpinned by a strong economy and Government incentives. We firmly believe that this year’s great achievements are also a reflection of the success of our concentration on strategic investment in people and technology over the past years, and a tribute to the quality of our affiliates. Our clients appreciate the depth of experience and knowledge our property consultants provide, and our personal approach and unparalleled work ethic, backed by over 35 years of service in the real estate industry. This year has been a particularly exciting one as we have successfully launched Malta’s leading real restate platform for quality property in Malta – www.perry.com.mt – which sets a new benchmark for real estate portals in Malta. Another great achievement was the publication and distribution of our newly revamped Perry flagship publication, now in its 57th edition. We have doubled the pages in 2018 and our new 84-page publication includes most of our clients’ quality properties. It also features a dedicated page on most leading lifestyle developments, besides various interesting articles. 28

It is clear that Malta is regarded as one of the pre-eminent property investment markets in Europe, and our market and the way in which we do business at Perry, are regarded as the gold standard for investors looking for a safe haven for their capital. Our primary goal is for our established residential and commercial sales and lettings departments to remain at the forefront of the quality property industry, and to ensure that we continue to offer the best advice to clients from around the globe who are looking to invest or simply settle in Malta. Key challenges for the company include ensuring that we continue to deliver quality in everything we do and that we keep up-to-date with the latest trends in our market, allowing us to continue to offer market-leading advice to clients. We live in rapidly changing times and realise that a major challenge is to continuously identify and adapt to new marketing channels and invest and utilise new technologies in our clients’ best interests. As technologies change, it is vital to continue to innovate to be able to offer a superior service at every level. All indications point to 2019 being another strong year for the local real estate market. There are various reasons to expect the local market to continue to steam ahead in 2019. Recently, the rate of house price growth in Malta has left other European cities trailing in its wake. It’s a hot and exciting market, characterised by quick sales and high competition for properties. One of the key factors underpinning recent price growth is the imbalance between supply and demand. Malta also remains relatively affordable; you still

“It is clear that Malta is regarded as one of the pre-eminent property investment markets in Europe, and our market and the way in which we do business at Perry, are regarded as the gold standard for investors looking for a safe haven for their capital.” get a lot for your money, and prices remain lower than many other European cities. Whilst there has been stagnation in other European markets, with prices reaching the limits of affordability, Malta is still some way off this point, with more room for prices to rise. We are confident that the current upward trend in Malta’s house prices will continue in 2019. cc DECEMBER 2018/JANUARY 2019

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The wisdom behind experience As 2018 comes to a close, five local business veterans share their thoughts on what’s in store for Malta in 2019 with Jo Caruana.

Angelo Xuereb is the renowned businessman behind AX Group, a company operational across construction, hospitality and development. He believes 2019 will be another record year for the island, underpinned by the sheer amount of construction activity that he cites as a backbone and motor for many other industries within the Maltese economy.

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“Looking to 2019, I think the biggest challenges we face will come from the political scene, with aspects like Brexit or the image that Malta has as a tax haven. In terms of international politics, my greatest hope is that the EU will be able to adequately respond to Brexit and to the power of China. Locally, we can see more added value being brought to the Maltese economy. This in turn means that there will be more spending power for the people and investment in

improving the standard of living. “In the future I think we need to focus on three key areas. The first is the improvement of Malta’s image internationally. The second is the improvement of the transport system locally, because traffic and congestion is starting to have a real impact on people’s lives. Then, third, it’s vital that excessive bureaucracy is reduced so public services can become more efficient.

CC COVER STORY “At AX specifically, I hope that in 2019 we will continue to witness growth within our Group, supported by the consolidation of our brand. Currently we are working towards opening our seventh hotel under the AX Hotel brand – The Rosselli, a luxury hotel in Valletta – and we are building new headquarters for AX Group in Mosta. We are also hoping to move plans along for the ferry tunnel below Valletta, connecting Marsamxett and Valletta Harbour. “Finally, I believe politicians must find a way of working together to create a long-term masterplan for our islands, looking ahead to the next 50 years. This non-partisan agreement would be the roadmap for the country, regardless of which party is in power. I believe this is a possible way that we can move forward and think holistically about laws and regulations. Just take the transport system; it never had any long-term plan in place. In the absence of a proper masterplan, every government tries to fix one piece of the puzzle without looking at the whole picture. That needs to be remedied.”

Gasan Group Chairman Joe Gasan says that, as long as growth is constant and sustainable, 2019 will be another positive year for Malta. “As an economy that continues to grow sustainably and which allows people to live a better quality of life, I would like to see Malta thrive in status and performance as a European economy that will hopefully lead the way in certain specialised sectors. Sustainability is vital and needs to consider the environment too – but we also need to focus on our most precious resource, our people, who ultimately make the country the success that it is. “There are a number of other challenges to address too. Malta’s infrastructure still needs a long-term approach, and we must begin to think of how it will develop sustainably into the future. Several improvements are being addressed, but the focus and effort need to remain constant. “I also believe that the availability of human resources to execute important projects is, indeed, a major challenge, and that this subject also needs to be given a long-term view. Beyond that, there are of course reputational issues that we need to deal with in order to ensure that these do not derail economic and other progress.

“Politicians must find a way of working together to create a long-term masterplan for our islands.” – Angelo Xuereb, AX Group 32

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“I would like to see Malta thrive in status and performance as a European economy that will hopefully lead the way in certain specialised sectors.” – Joe Gasan, Gasan Group

And, on top of that, it’s important to stress that the environment is a pressing cause and one which, above all, requires a change in mentality. In this respect, achieving a balance between quality of life for this and future generations, and economic progress, is a major challenge. “As for us at Gasan Group, 2019 will see us continue to reinforce our corporate governance and transparency, and we will aim to once again achieve strong financial results in our operations and investments, which are crucial for our continued stability and growth. The coming year will also see substantial progress on a few large, important development projects. “As for Malta, I am eager to witness the continued evolution of the economy and society in general, particularly the infrastructure and transport systems, as well as emerging niches like FinTech, blockchain, robotics and other areas where our increasingly-skilled human resources can generate more added value.”

As Chairman of Farsons Group, Louis Farrugia believes Malta’s economy should continue to grow above the EU average in the year to come, especially given our current performance in the last few years. That said, he stresses that one of the characteristics of modern life is the unpredictability of events that affects business confidence and economic forces. “I have to admit that there are some concerning trends on the horizon that are affecting the world economy and, in particular, the EU economy. Protectionist threats from the US, the effect of Brexit and the current slowdown of the German and Italian economies are all challenges that need to be addressed by world leaders, and our island is not immune to such forces. “Malta’s main challenge is to find workable solutions to the lack of labour supply at all levels of the market. Current solutions of finding expatriate labour may not be sustainable in the long term unless a comprehensive plan to accommodate their integration is worked on by all the social partners. Wage inflation may also affect our competitiveness as a nation. 34

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CC COVER STORY “Nevertheless, our increased economic activity and the budget surplus are positives that are resulting in better living standards. “The full independence of institutions such as law enforcement and regulatory agencies are challenges that Malta has to face and find long-term solutions to if we are to be considered as a true politically mature country where the rule of law is supreme. More work and commitment by both political parties towards this goal is needed to further enhance the attractiveness of Malta as an investment location. “In 2019 the Farsons and Trident Groups will be working on their projects to increase our exports of locally-made beverages and the construction of Trident Park as a ‘Green Office Business Park’. This latter project will be ready for occupation in the first quarter of 2021.”

Lawrence Zammit is a Founding Partner of MISCO, as well as the former Chairman of Malta Enterprise, Air Malta, the Employment and Training Corporation, and Malta International Airport plc. He expects 2019 to be a positive year for Malta but highlights that a number of developments could hinder our economic performance. “I am keeping an eye on the expected increase in interest rates, which could negatively impact the economies from which we attract foreign investment. Beyond that, it’s also important to watch the trade war that is escalating among the world’s leading economies. This could slow global economic growth. “It’s also important to consider other sources of tension, like regional wars. The elections for the European Parliament could be another threat for Malta. A victory for populist parties could have a negative impact on the EU and, consequently, on Malta. Other threats are posed by Brexit (if and when it happens) and the political brinkmanship currently in act in Italy. “When it comes to the challenges for Malta, I believe this primarily lies with our ability to attract new investment and to contain the economy from overheating and causing inflation. First, we must continue to be able to attract such investment in a diverse range of economic sectors. To achieve this we must offer an environment that enables businesses operating in Malta to remain competitive. Second, the increase in property prices, if unchecked, could cause a follow-on effect on salaries, prices for services and eventually products. This may cause our economy to overheat. 36

“Malta’s main challenge is to find workable solutions to the lack of labour supply at all levels of the market.” – Louis Farrugia, Farsons Group

“On the positive side, I think we can look forward to continued high employment and a general feel good factor in the economy. But there are some important decisions we need to take – and they relate to the medium-term and long-term sustainability of our economy.

When I talk about sustainability, I am not referring only to environmental sustainability but also to social sustainability and sustainability of our infrastructure. Can our population continue to expand at the rate it is expanding? Can Maltese society absorb this growth? DECEMBER 2018/JANUARY 2019

CC COVER STORY Can our infrastructure absorb this growth? We must debate these issues rationally and achieve consensus as a country. To what extent can we continue to erode our natural environment? How will our quality of life be impacted by such development? How are we to address economic inequality? There may be less people below the poverty line, but what about those who have seen their quality of life and standard of living deteriorate, even if they do not go below the poverty line? There is too much at stake for us in the medium- and long-term. “As for innovation, I think 2019 will be an important year in most sectors. We have this wonderful opportunity to fund innovation in our country, given the performance of our economy and the healthy state of public finances. By innovation I do not just mean things like blockchain or Artificial Intelligence. Innovation is something that cuts across all

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sectors of the economy and society at large. Innovation will also be MISCO’s challenge for 2019. “Thus, the economy requires more meaningful assistance to start-ups. On this point, we need to appreciate that there are many young people with ideas, who require financial support to bring those ideas to fruition. Our strong economic performance warrants that such people be assisted all the way. These young people represent the country’s future and they deserve to be given the right opportunities. “As we go into 2019, I would argue that Malta is not facing any fundamental issues like it did in the past. However we need to debate what kind of society and what kind of economy we want to have for our country. We have a unique opportunity to look at our long-term future without any crisis looming over us. We must seize the moment as a country.”

“We need to debate what kind of society and what kind of economy we want to have for our country.” – Lawrence Zammit, MISCO

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As a self-proclaimed optimist and someone who has survived 50 years in one of the most difficult property markets out there, real estate guru Frank Salt believes 2019 will be a very good year for Malta. “Being a pessimist gets you nowhere, so let’s be optimistic about what is to come. “In 2019, I think that more and more people will come to work in Malta, bringing with them millions of euro as wages to spend on living expenses, such as food, accommodation and entertainment. Every non-Maltese person coming here and being paid with monies brought in from outside Malta probably brings between €20,000 and €30,000 a year to the island. Let us say that another 10,000 come over here to settle. That’s between 200 million and 300 million coming into Malta each year. Add that to the thousands of people working here already, and that’s a staggering amount of money; plus, there should be many more if blockchain gets off the ground, and there are other projects in the pipeline too. “Of course, the first major challenge is where to put everybody. The second is how we are going to keep our friendly disposition towards our visitors, and how we’re going to ensure that our services can cope. If we can’t cope, then these elements should be rearranged and improved immediately in anticipation, and we also need to find a way

of keeping our prices sensible and not be greedy. “Above all else, I believe Government should make a new masterplan for our islands; one that clearly takes into consideration the way things are going. This should include information on who can build what and where, and where we can put new offices and new apartments for our visitors, without giving the impression that Malta is a permanent building site. It needs to be a masterplan that we stick to as law, instead of chopping and changing around as we have become accustomed to. “If we don’t achieve this, then our problem will be the problem of success: how to cope with it; how to keep our noses clean; how to keep away people who want to do things the wrong way and who will drag Malta down to their level. “We are in a go-go situation. People seem to like coming here to visit, to work and to do business. This encourages the not-too-ethical people to jump on the bandwagon too. These people are not wanted. These are the people who can and will give us a bad name. Malta must take a deep breath and make sure our success will continue correctly and properly. “So, when anticipating a large influx of people coming to Malta in the future, with

tourism, cruise liners, people working in new companies and residents, we must look forward to how we can cope with the influx without disrupting the whole country. Success we want, but success brings problems of a different nature that have to be tackled. “You can build something but, with lots of people using it, it gets worn and has to be maintained. Malta will only be a pleasant place to come to, and a pleasant place to live and work in, so long as we look after it. And I mean really look after it. A lot of the money we earn must be put back into the country to maintain it and service it, with thoughts for the immediate and distant future. “It is important to do this to not only protect our source of income, but to keep the local people happy with what’s going on around them. They, after all, have to live a comfortable lifestyle, otherwise they could get pretty fed up. “I would like a very serious high-level committee to be formed to create an acceptable plan, to place all the new things we need where they should be, and to do this with as least an inconvenience as possible. And when this is done, we must make sure that it is strictly adhered to, so that we can all know what is going to happen and why.” cc

“Malta will only be a pleasant place to come to, and a pleasant place to live and work in, so long as we look after it.” – Frank Salt, Frank Salt Real Estate

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IN FIGURES: A look back at the numbers which defined the year

7.5% €261.8 72.2%

Malta’s GDP growth in the third quarter of 2018, up by €281 million in real terms.

million

Malta’s labour force participation rate, up by nearly 10 points from 2012.

The increase in the trade deficit in the first nine months of the year, reaching €2,272.6 million.

2.1% Malta’s annual inflation rate in October.

€392.7

95.5

€675.9 million

The increase in imports from euro area countries in the first nine months of the year.

million

The number of investors who said they believed Malta is still an attractive destination for Foreign Direct Investment (FDI).

64%

The percentage of online shoppers in Malta.

475,700

The population of Malta at the beginning of 2018, up by 15,400 in 2017.

3.8%

Malta’s unemployment rate, the sixth-lowest in the EU.

6.8

Source: Gozo In Figures, National Statistics Office, Malta

The new voting age in Malta, unanimously approved by Parliament in March 2018.

The surplus registered in Malta, announced in October 2018, equivalent to 3.5 per cent of GDP.

74%

The percentage of graduates who are employed in Malta, the highest in the EU.

million

The number of passenger movements expected through MIA by the end of 2018.

The number of new cars on the road in Malta every day. Source: Malta International Airport

Sources: NSO, EY Malta Attractiveness Survey 2018, Eurostat, European Commission Autumn 2018 Economic Forecast DECEMBER 2018/JANUARY 2019

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ERA: Enforcing environmental protection With the environment very much front and centre of many people’s concerns, a clear need for adequate enforcement has emerged. Here Jo Caruana meets the man entrusted with making sure that enforcement takes place – Lieutenant Colonel Mario Schembri, Director for Compliance and Enforcement within the Compliance and Enforcement Directorate of the Environment and Resources Authority.

ieutenant Colonel Mario Schembri is a man with a plan. As the recentlyappointed Director for Compliance and Enforcement within the Environment and Resources Authority, he knows only too well that something needs to be done to improve many aspects of Malta’s environmental approach – and he believes much of this can be done through enforcement. “The idea of enforcement is fine on paper,” Lt Col Schembri tells me. “But actually achieving it out there in the field is a different kettle of fish, because it’s extremely dependant on the number of people you have on the ground making sure that the rules are adhered to. That’s what’s needed. There’s no point trying to enforce things from an office; you need to have eyes everywhere and the people to act.” And while Lt Col Schembri may be new to ERA, he knows a thing or two about successful enforcement. He is specialised in enforcement and security matters, and carried out his academic and career training at local and international civil and military institutions.

In 1979 he began his career in enforcement as a Police Officer and reached the rank of Police Inspector a year later. In 1985, he moved to the Armed Forces of Malta (AFM) where, during his 27 years of service, he actively took part and led several enforcement operations at sea and on land. During his years at the Maritime Squadron, he was also actively involved in combatting oil pollution at sea. Among other duties, he represented the AFM before the Courts of Law and in media matters. He retired from the AFM in 2011 after being awarded the Long and Efficient Service Medal for sterling service rendered. “As the main environment regulator, ERA protects the environment through various national and international laws and regulations,” Lt Col Schembri continues. “Bridging the gap between legislation and practice is the end goal of compliance and enforcement actions, and the main challenge for the new Compliance and Enforcement Directorate.” Thus, in his new role, Lt Col Schembri is responsible for monitoring aspects that are regulated by ERA, promoting compliance with requirements, and subsequently even resorting to enforcement where this becomes necessary. “The remit of the Compliance and Enforcement Directorate spans a number of environmental sectors, such as securing compliance with nature and biodiversity regulations, trade in endangered species, and the monitoring of adherence with ERA environmental permits and conditions governing operational activities that have an impact on the environment,” he continues. “Now we are putting an enforcement team in place that will be prolific on the ground. They will know the law inside out, and will be assertive enough to be able to act on the law and ensure it is followed through. Of course it’s not easy to tell people that what they’re doing is wrong and that they’re breaking the law, but it has to be done – and the fines they receive could be of up to €2.5 million.”

“The idea of enforcement is fine on paper, but actually achieving it out there in the field is a different kettle of fish.” 44

And Lt Col Schembri says that enforcement is already being taken more seriously – with stepped up operations, even though the number of enforcement personnel is still low. “Plans are in place to increase that number next year and again after that, to the point that they will be increased substantially.” “That said, I have already witnessed an improvement so far – not just with regards to the amount of fines handed out, but how the Directorate is working and the commitment from our people. Our staff feel that, finally, we are achieving something and being effective – even in small ways. So everyone is looking forward to 2019, DECEMBER 2018/JANUARY 2019

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Photos by Alan Carville

when we will have more logistical support, along with vehicles and other much-needed equipment. That in itself is a good step forward because, unless we are confident from within that we can affect change, then change will not come.” Feeling optimistic about what is to come, Lt Col Schembri says he knows there are currently big issues to tackle and that they cannot be dealt with all at once – but that his team will get there. “It will take some time of course,” he says. “And it will need the commitment of not just ERA but all sides of the political sphere, as well as the general public. It’s no use crying about what’s happening and why rules aren’t being DECEMBER 2018/JANUARY 2019

“Of course it’s not easy to tell people that what they’re doing is wrong and that they’re breaking the law, but it has to be done.” enforced. If we all do our part, we can work wonders. We all have a direct effect on the environment – from throwing cigarettes on the floor to not recycling properly – and it’s important for everyone to step up and take responsibility.” Finally, Lt Col Schembri stresses that enforcement is needed at public level too, and that everyone has a role to play with that as well. “Our officers will be out there hunting down illegalities but so should everyone else. I encourage everyone to keep

an eye out and to know when something is being done that isn’t according to the law – and to report it. We even have an on-call system in use during silent hours, so there is always someone you can speak to and we are ready to listen and act . If we want to improve our environment, this is something we must work on together. We will then see the results we are hoping for.” cc For a full list of enforcement regulations or to contact ERA, email info@era.org.mt 45

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eWorld: A journey in IT As a best-of-breed IT enterprise solutions and services company, eWorld is a leading technology solutions provider with nearly 10 years’ experience in designing, implementing and supporting complex IT environments. Here, Managing Director Raphael Micallef Trigona talks Jo Caruana through the company’s past, present and future.

nformation Technology is something of a way of life for eWorld Managing Director Raphael Micallef Trigona. As a warranted engineer, he read for a Bachelor’s degree in electrical engineering at the University of Malta, before undertaking a specialised Master’s degree in microelectronics systems design at Brunel University, UK. Then, after a six-year professional stint in the micro-chip design industry in the UK, he returned to Malta in 1995 to join Intercomp Ltd as Operations Manager and, soon after, was appointed to the Board as Director of Operations. In 2001 he was entrusted with the role of Managing Director of a new company, Systec Ltd – a break-away from Intercomp Ltd, before, finally, being asked to set up and launch eWorld Ltd in 2011. Now very well-established, eWorld forms part of the Alf Mizzi & Sons Group of Companies. “Founded in 2011, it is a customerfacing IT solutions provider and systems integrator,” Ing Micallef Trigona explains. “Our key focus centres around HP solutions and services for the corporate sector, and this is complemented by the Microsoft, VMWare, Sophos and F5 Networks portfolios.”

Talking through the company’s key milestones, the Managing Director highlights eWorld’s achievement of Authorised Gold Partner status with HP and Hewlett Packard Enterprise within its first year of operation. “This was only possible through the successful completion of the demanding curricula of the relative vendor training and certification. This set up the requisite level of expertise and was followed up and extended to include the certifications of the selected partner programmes of Microsoft, VMWare, Sophos and F5 Networks. “Then, last year, we firmly staked our future strategy of digital transformation to the cloud through our appointment by Microsoft as a Tier 1 Cloud Services Provider (CSP). This now allows us to offer our corporate customer base a planned digital migration to the cloud, based upon the Azure cloud platform.” Today, eWorld primarily offers IT infrastructural solutions to the corporate sector, with the preferred solutions being centred in Hewlett Packard Enterprise and spin-off HP Incorporated, for both of which eWorld is an authorised Gold partner. “Our portfolio is vast,” Ing Micallef Trigona continues. “This includes the digital workspace, and encompasses the traditional corporate laptop and desktop PCs – including security and office productivity tools – as well as server, storage, networking and hybrid cloud solutions. These solutions are wrapped around by services that begin with the consultation and design phase, and follow through all the way to implementation and configuration, and even warranty support and post-warranty support and renewal.” Meanwhile, eWorld’s cloud strategy revolves around its status as a Tier 1 Microsoft Cloud Solution Provider, through which the Microsoft Azure platform solutions may be provisioned to customers on-demand and billed on a consumption basis – a service which is quickly gaining traction. Over and above, eWorld offers IT load balancing and acceleration, security through web application firewalls, DDos defence and more. The company’s partner of choice in this field is F5, for which it is also a certified partner. “I would definitely say that the ‘eWorld factor’ we provide comes from the combination of our approach, wherein we adopt a rigorous training and certification regime, as a precursor to placing a solution on the market,” Ing Micallef Trigona continues. “This is key to what we bring to the party, DECEMBER 2018/JANUARY 2019

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Photos by Alan Carville

“Our customers can rest assured that there is a solid knowledge base and technical set-up available to provide support as it may be required.”

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in that our customers can rest assured that there is a solid knowledge base and technical set-up available to provide support as it may be required. In fact, a service level agreement (SLA) is requested by the customer for most of the mid- to high-end solutions that we design and configure. The most demanding of these SLAs come with 24/7 support or even with the repair time commitment of just a few hours. That is no mean feat to contract to and fulfil, especially on the consistent basis that is expected – but it is what we provide.” And it seems that this approach is working, as eWorld’s customers range from small operations encompassing teams with a handful of people, to the largest businesses in the private and public sectors. Typical case studies come from the banking, telecommunications and iGaming industries, and range from the virtualisation of servers, storage and networking, to composable infrastructure, as well as private cloud or hybrid cloud solutions. “While success can be defined in many ways, I believe that we have effectively consolidated our IT solutions and services offering, chiefly through the implementation of new Azure cloud solutions, rolling out F5 network security solutions,” Ing Micallef Trigona continues. “At the same time, in the core areas of expertise, Hewlett Packard Enterprise IT infrastructure and HP Inc digital desktop and print solutions, we have invested further in a state-of-the-art IT demo centre, where customer proofs-of-concept can be successfully executed. These areas of core competence remain the mainstays of our 2018 performance.” Now, Ing Micallef Trigona hopes that 2019 will see the company build on and leverage the new foundations laid in 2018. “We will focus on extending our solutions for digital transition to the cloud thorough the Microsoft Azure platform, corporate network security, application acceleration and delivery via its F5 networks portfolio, all the while seeking to extend our customer base on the HP and Hewlett Packard Enterprise IT infrastructure solutions backed by 24x7 service level agreements,” he says. “One thing is certain, the technological drivers and disrupters steering change across all industries will only increase. This, combined with the ever-persistent and innovative IT security threats and breaches we see and hear about on an almost daily basis, guarantees that there won’t be a dull day ahead – in fact the future looks intriguingly challenging. Bring it on!” cc 47

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FIMBank – Your corporate banking partner In this interview we speak with Chris Trapani, Senior Vice President, Head of Cash Management and Central Customer Services at FIMBank, who discusses the value that the bank offers to its corporate clients.

How is FIMBank geared to offer bespoke corporate services to its clients? FIMBank is an international corporate banking institution which bases its value proposition on execution and efficiency. We are a trade finance bank with a specialisation in cross-border import and export banking products, offered in various currencies. Our ability to settle in such currencies is enabled through our excellent correspondent banking relationships, which we constantly invest in. FIMBank always takes a customer-centric approach to its product and service offering, with a view to finding innovative solutions for, and adding value to its selected customer base. Besides trade related products, the bank is strongly geared to offer a wide range of cash management solutions to its current and prospective clients. Our strategy hinges on the commitment to provide added value to our local and international clients by focusing on specialised customer service and sophisticated systems. The quality of our delivery relies on 48

our team, made up of dedicated on-boarding and helpdesk personnel, relationship managers and product development specialists. Our work and success revolve around ensuring a continuous alignment to ever-changing requirements in local and international business. In doing so we always keep customer needs at the centre of our strategy. Can you describe the products available to FIMBank’s corporate clients? FIMBank offers both cash and credit management products to satisfy the needs of corporates. In terms of cash management, the bank offers corporate account services in all major currencies. Payment settlements in euro including SEPA and T2 may be processed both locally and internationally. We also offer same and next day options for multicurrency transactions including cross-border

settlements. Our products are geared towards efficient business optimisation including payment services, foreign exchange, fixed term deposits, bulk payments and account aggregation. Our international banking products are also delivered through our digital banking platform, FIMBank Direct, which is predominantly geared towards corporate needs. What are the pillars of the bank’s relationship management approach? To be able to conduct our services, we look at a model whereby every client is assigned a Relationship Manager, together with a support team. This ensures a clear understanding of the client’s needs together with a strong representation across the various functions of the bank. These relationship management teams act as the

“To be able to conduct our services, we look at a model whereby every client is assigned a Relationship Manager, together with a support team.” DECEMBER 2018/JANUARY 2019

CC CASE STUDY customer’s voice within the organisation, as well as the first line of defence to conduct our business properly and efficiently. We consider this an important value proposition in meeting and exceeding customer expectations. Can you explain how corporates benefit from FIMBank’s account and deposit offers? As part of our product offering we look into generating and maintaining a strong portfolio of international currencies to support our lending arms. Being very active in the international trade finance space, this is considered as essential. Our appetite for USD, euro and other international traded currencies remains strong. We offer competitive term deposit products to continue attracting liquidity directly from our partner corporates and individuals. Having said this, we are currently offering competitive USD rates for a number of tenors with a view to continue growing our portfolio. In terms of our USD fixed term deposit offering, we have an interest rate of 3 per cent for deposits of one year, up to three years. These deposit products are also available through our digital banking platforms FIMBank Direct, targeting corporates and business entities, and our flagship retail saver Easisave targeted for individuals. This is a no frills and easy to use platform, where retail customers can open their savings accounts and fixed term deposits with no need to visit the bank. This retail account gives one the opportunity to save at competitive rates, allowing easy access and providing a return on both overnight and fixed term deposits.

How is the delivery of the bank’s services facilitated by the FIMBank Direct digital banking platform? FIMBank Direct is a state-of-the-art digital portal, with a service repertoire geared predominantly for corporate customers. This provides an efficient and secure international payments framework, term deposit products, and competitive foreign exchange services. Corporate and wholesale banking services offered include balance view and management, the ability to book single, multi-currency and bulk payments, and access to statements and advices. The system is equipped with best of breed security features through its innovative two-factor authentication, making use of our FIMBank CAM App. This technology

allows our corporate customers to log in and perform payments which can be tiered to different authorisation levels, anytime, anywhere, without the need to carry a hardware token. FIMBank CAM is engineered to withstand sophisticated cybercrime attacks, something which traditional tokens do not have the capacity to withstand. cc If you are interested in understanding more how we can add value to your business proposition, we look forward to hearing from you. Our approach is that of partnering with enterprise in a way that we can serve as a channel to facilitate business transactions in an efficient and secure manner. Get in touch on T: 2132 2100 or E: helpdesk@fimbank.com.

“One key pillar for trade is always the cost-effective availability of international currencies and settlements.”

How do FIMBank’s foreign exchange services benefit clients? One key pillar for trade is always the cost-effective availability of international currencies and settlements. We offer direct access to foreign exchange rates also through our internet portal, FIMBank Direct, for smallto medium-sized settlements, whilst giving the option to contact us directly for specific negotiated rates for high value transactions. We endeavour to offer competitive real-time rates with direct access to our Treasury Department in support of efficient international settlements in USD, EUR and other major currencies. Can you give us an overview of the features of FIMBank’s Business Account? We continuously listen to corporate customers and designed the Business Account proposition that revolves around clients’ needs, where we provide tailor-made solutions. This Business Account opens opportunities for corporates that are looking for customised services that would not normally be part of an over the counter offer. Payments, Forex, term deposits and other special vehicle accounts are offered in line with transaction requirements, thus enabling customers to secure their business needs. DECEMBER 2018/JANUARY 2019

Chris Trapani, Senior Vice President, Head of Cash Management and Central Customer Services, FIMBank T: 2328 0119; E: chris.trapani@fimbank.com

CC CASE STUDY

A practice-driven legal firm offering bespoke solutions Since its inception in 2011, corporate and commercial law firm David Zahra & Associates Advocates has been assisting businesses in coming up with legal solutions which are tailor made to their particular needs. Rebecca Anastasi meets Dr David Zahra to find out more about the spate of services offered by this pragmatic team to family businesses.

ccording to Maltaâ&#x20AC;&#x2122;s National Statistics Office, micro entities â&#x20AC;&#x201C; companies which employ less than 10 people â&#x20AC;&#x201C; form over 97 per cent of the number of businesses operating in the jurisdiction. Of these, many are family businesses, upon which the local economy has been built over

decades of enterprise. And, last year, the Family Business Act underlined the centrality of small, medium and even larger family businesses to the wealth of the country by providing these companies with incentives and a regulatory framework designed to ensure their longevity.

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CC CASE STUDY

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“We’ve become strong and active, as a firm, in helping businesses, from a corporate and legal point of view, whether in retail, construction, hospitality or commodities.” to that taken by family-owned or dominated businesses. “Once a due diligence report is carried out, a typical acquiror will look at the red flags at face value and will make its decision on the basis of the risks, foregoing the sale, if need be. However, in a family-dominated or owned business, we have seen that red flags are interpreted differently because they are mitigated by the nature of the personal relationships established during the acquisition process.” Thus, the unique nature of such firms requires a different mindset, according to Dr Zahra. “It’s a different perspective, and we, at DZ&A Advocates, understand these contexts,” he states. Indeed, Dr Zahra stresses, “a lawyer in this field does not advise a family business in the same way he or she would counsel any other business in which management is separate from ownership.” Rather, legal advisors specialising in this field would understand the “peculiarities of family businesses”, the local context they are operating within, as well as the particular relationship between the main parties to the agreement. “These businesses would generally know who the target company is, in a merger or acquisition scenario, and they could even already be in business with them. The target company could also be another family business, so both parties would understand the risks and challenges. There is this personal link,” he stresses. Therefore, the detail and approach are, necessarily, different, even if the process is the same as it would be for any other type of company, Dr Zahra explains. This bespoke outlook also informs legal advice given in relation to succession planning, though, in this case, lawyers would not be the first port of call, with companies often preferring to seek business, tax and financial counsel first, Dr Zahra explains. “In the case of succession planning, we are generally asked to implement plans devised by their trusted financial advisors from a legal and corporate point of view. As lawyers, we would need to deal with all legal issues that arise such as the community of acquests, as well as any drafting, corporate procedures and authorisations required,” Dr Zahra continues. Integral to this, he further expounds, is presenting sometimes complex solutions in simple terms. “Sometimes, the biggest problem is that there may be a degree of hesitation in getting legal advisors involved on behalf of the companies concerned, for many see lawyers come in with heavy legalese, reading off clauses and sub-clauses, with which family business may not be familiar. Their priority is closing the deal – if this is a merger or acquisition – or establishing a clear, certain and safe succession plan, so a lawyer needs to be very understanding and clear in his or her

approach,” Dr Zahra stresses. Comprehending the specific requirements of each client is, thus, also essential, the founder of DZ&A Advocates states. “I sit as company secretary on a number of family businesses in Malta and it’s something we, as a firm, are very proud of. We’re on the board and we’re present when important decisions are taken. The benefits include knowing where and how decisions are taken, and the complexities and particularities of each situation. This helps us give appropriate advice.” Moreover, Dr Zahra insists on going to companies’ premises “because you begin to understand their needs even better. You need to go there and see what the process is from beginning to end. A big firm might not be in a position to offer that, but we’re flexible,” he asserts. So, “knowing the client, knowing his or her circumstance and context, as well as understanding the level of sophistication required,” is integral to the success of the transaction, Dr Zahra explains. “A company’s first concern is to tie up all loose ends to get on with business, so we highlight all the risks but know which ones to focus on. We are not decision makers, but advisors, and we make it a priority to communicate practical business solutions while keeping an eye on the personal aspects of any deal. We need to take everything into account, and tailor our advice and recommendations according to the situation at hand.” This approach works, according to Dr Zahra, because clients are put first. “We can tell, from our clients’ reactions, that they are happy with what we can offer them, since we are able to provide constructive solutions, which prioritise all aspects of their business,” he concludes. cc

Photos by Alan Carville

“Typically, Maltese businesses are familyowned or dominated businesses,” says Dr David Zahra, founder of David Zahra and Associates Advocates (DZ&A Advocates). “And dealing with them is a science in itself, since the way they tackle challenges is very different from other privately-owned firms.” Indeed, since opening their doors in 2011, DZ&A Advocates, a small firm consisting of 10 legal and administrative staff, has focused its attention on delivering a personal, practicedriven service to family businesses, whatever the size and scope of their operations. “We give clients more than legal advice. We offer tailor-made services and a personal relationship,” Dr Zahra explains, going on to describe the way in which the firm approaches the specific challenges facing this breed of companies. “It is essential to present legal advice that makes practical business and legal sense. Lawyers are risk managers, but we cannot just present the risks. We need to present solutions in an accessible manner.” To this end, the firm offers corporate legal advice on mergers and acquisitions, corporate restructurings, as well as succession planning, working hand-inhand with tax and financial advisors to ensure each family business under their remit prospers. “We’ve become strong and active, as a firm, in helping businesses from a corporate and legal point of view, whether in retail, construction, hospitality or commodities,” Dr Zahra asserts. “We’ve got a wide range of experience with family-dominated companies, and I feel we understand a little bit more what their needs are.” This understanding is a result of the compact nature of the legal firm, in Dr Zahra’s view. “We’re small, so we can be nimble, and we can be practical. Smaller law firms can address the particular needs of these businesses better. The Family Business Act, as well as the recently-introduced reduction in stamp duty from five per cent to 1.5 per cent on the transfer of companies from one generation to the following, has encouraged these firms to look to the future, according to Dr Zahra. “Family businesses are becoming more pro-active and are starting to understand that they might not be able to continue to operate in the same way, since they may not be well-equipped to address challenges in today’s world. They might need to enter other partnerships or even sell, but there are considerations which are not necessarily commercial but are of a more personal nature,” he explains. “Legacy, for example, is central, especially when it comes to companies which have been built over time, and over many generations.” Moreover, to illustrate the particular personality of family businesses – which is based, inherently, on individual relationships – Dr Zahra compares the approach taken by a large corporate when acquiring new entities,

CC make the headlines

Key outcomes of recent Property Law Conference Property, with all its different angles ranging from co-ownership, the constitutionality of laws, public procurement, the new White Paper on rent laws, succession and blockchain, was the subject matter of the Property Law Conference organised by Fenech and Fenech Advocates held at The Malta Chamber of Commerce, Enterprise and Industry on 5th November 2018. Managing Partner, Dr Ann Fenech, opened the conference by welcoming participants, stressing that whilst new areas of the law associated with blockchain and IT were making the headlines, it was equally important to ensure that a fundamental area common to both Maltese and non-Maltese in Malta – property – remained at the forefront of legal development. The important subject of co-ownership and redress on use, lease and/or sale of co-owned property was dealt with by Dr Daniel Buttigieg. He explained how when disagreements arise, the parties resort to the courts to decide on a particular issue or to appointing an administrator to take decisions on behalf of everyone, with redress against misuse involving compensation or eviction. He shared views on the several options to discontinue co-ownership, including a promise of sale drawn up and Court asked to order the sale, and on how alternatively coowners may opt for a division of property or sale by licitation being similar to judicial sale by auction where the price starts at 60 per cent of the property’s total value. Dr Karl Micallef spoke about constitutional issues in rent laws focusing on pre-June 1995 leases. A series of unfair laws in the first half of the 20th century favouring tenants saw lease extensions, prices frozen at 1914 rental values, and governmental powers to requisition. The anti-constitutionality of old laws had long been felt and the European Convention on Human Rights was crucial in developing proportionality and fair balance. The European Court of Human Rights emphasised Malta’s failure in balancing these principles. In 2018, ‘means testing’ was introduced, however Maltese Courts have indicated that this development was not enough.

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The White Paper on rent laws published recently was the subject matter of a panel chaired by Perit Simone Vella Lenicker and included Steve Mercieca, Sandro Chetcuti and Reginald Fava. The panel was introduced by a short analysis of the White Paper by Dr Edward Debono. The panellists gave their views on its impact on owners and tenants, as well as its shortcomings. The lively debate dealt with numerous issues. It was remarked that the recent law was needed for the market, however, the fiveyear period to vacate if the tenant had the means to find another tenant was excessive. It was felt that the law should stop reflecting the past and that the bi-annual rental price increases was considered rather aggressive. Discussion ensued on the need for the state to focus on the housing problem and on how it should encourage the building of smaller affordable apartments. Problems in public procurement were explained by Dr Carl Grech who dealt with proportionality in public procurement. Through case law, Dr Grech showcased the principle’s rationale. Equal treatment/ non-discrimination, transparency and proportionality were outlined for economic and efficient public procurement. These promote fairness by requiring conformity to the terms of selection throughout the submission process. The principle of proportionality is fundamentally important in the application of rules, the absence of which could potentially see public procurement which is anti-competitive and distortive. Succession and estate planning relative to Property Law was dealt with by Dr Rebecca Diacono. She discussed how Malta does not

have inheritance or annual wealth tax but imposes duty on documents and transfers. With property price increases, young people are struggling to buy their first property and increased interest in property transfers by inter vivos and/or causa mortis donations and other structures have been registered. She explained the application of these structures as including companies, trusts and foundations which offer particular benefits. The subjects of taxation and succession, and blockchain were also dealt with by a panel chaired by Dr Michael Borg Costanzi, made up of Dr Sarah Rausi, Dr Pierre Attard, Godfrey Leone Ganado and Dr Antonio Ghio. Panellists explained the importance of giving accurate estate planning advice to both foreign and local clients with reference to individuals’ profiles and family structures. The relevance of the European Union’s succession regulation was explained in detail since this has become more topical with the increased relocation of expats to Malta effecting immovable property transfers within different member states, based on habitual residence or nationality. The session was concluded with reflections on the effect of blockchain technology on property explained by Dr Antonio Ghio. He dealt with how distributed ledger technology can revolutionise the real estate and property industries whilst noting that for this to happen we need to rethink how our official registries function. Technology, Dr Ghio contended, is the easiest hurdle to surpass, whilst noting that blockchain is not some magic dust which will solve all problems, as typically the challenges lie within the administrative layer and not with technological limitations. cc 53

CC make the headlines

Slow the flow Circular Waste Management: Integrating the five Rs principle in the business environment. We are responsible for the everyday choices that we make; from reading emails online to printing them, or eating a take-out instead of a cooked meal, or drinking tap water instead of bottled water. Whether at work or at home, it is imperative to realise that such choices have a profound effect on our environment, whilst also affecting our individual waste footprint. With Malta lagging behind on the EU’s waste table, it’s more important than ever to be aware of the need to reduce waste generation and manage our resources better. We need to make sure that we recover and reuse as much as possible most of our waste, and in doing so, turn what is an environmental and economic problem into a potential business opportunity. In the long-term, everyone has to do their bit, from small households to massive industries. More needs to be done to move waste management up the waste hierarchy. And it’s not that hard. There are so many small individual steps that each and every one of us can take to reduce the unnecessary flow of waste. It’s time to be proactive both in our homes and work, and face this waste issue head on. Just a little effort goes such a long way, benefitting both economically and environmentally. Whilst most of us may consider themselves to be adept at reusing and recycling, the truth is that in Malta we have a high rate of waste which is still being disposed of, or that is not being separated notwithstanding the availability of infrastructure, with the end result being that of landfilling for that waste which cannot be recovered or which is contaminated. We know that both reducing and recycling are positive actions, but there are five Rs to waste management, not just two. The first of these is REFUSE, for refusing things we don’t really need, thus preventing a lot of waste right from the start. It’s also worth investing in good quality equipment which will stand the test of time through good repair and maintenance. Locally, eateries and hospitality outlets are jumping on the bandwagon by refusing to serve unnecessary straws or plastic cutlery which can be replaced by reusable alternatives. Less waste is also generated by focusing on REUSE and REDUCE, where old items can be given a new purpose through upcycling or repair, or by being donated or exchanged with others. Some additional examples include the setting up of an efficient workspace with eco-friendly printers and equipment, the banning of plastic bottles in the office and installing water dispensers, as every 54

little bit helps. Another incentive is the opportunity to capitalise on company CSR, by introducing a sustainable approach in the way that the company is run. By integrating a sustainable approach to the running of a business, less waste can be generated, whereas money can be made in the process. The other two Rs are RECYCLING, which most of us are familiar with, and RECOVERY, which provides us with the last opportunity to save resources before disposal. For example, recovery includes the use of organic waste for the generation of electricity. Government has been working on introducing a number of waste management-related measures and initiatives, such as the recent nationwide launch of the separate collection of organic waste from each household, the introduction of the Beverage Container Refund Scheme envisaged in 2019, a stricter enforcement regime, the implementation of a Waste-to-Energy facility in 2023, and other measures that will support a collective effort to manage Malta’s waste in a more sustainable and circular approach. cc

Locally, eateries and hospitality outlets are jumping on the bandwagon by refusing to serve unnecessary straws or plastic cutlery which can be replaced by reusable alternatives.

For more information on the waste management services available and tips on tackling your waste visit dontwastewaste.gov.mt

DECEMBER 2018/JANUARY 2019

STYLE

REVIEW

Style Review

With party season nigh upon us, it’s time to think of festive fashion for any knees-up and staff do. Rebecca Anastasi has the low-down on what to wear as the holidays approach. 01. The long wrap-coat Nothing screams Christmas like a stunning coat, draped over your shoulders in a laissez-faire style, hair tousled and heels on to complete the look. And, this season, it’s all about the wrap-coat. Opt for a sumptuous mix of cashmere and wool for warmth, whatever the weather.

02. Velvet

Ted Baker

01.

This luxe fabric has truly made a come-back this season – it can be seen on absolutely everything, from dresses and jackets to handbags and shoes. Appearing in vibrant colours in many high street stores, you’d do well to pick the boldest and brightest for the Christmas season. No need to be a wallflower.

04.

03. Colour blocks And, if you cannot decide on one colour, why not go for several? This season sees different tonal blocks in pattern skirts, dresses and jumpers for those who want to inject a little bit of variety into their winter outfits. This is subtle, as patterns go, but imbues your outfit which just enough variety to keep you feeling young-at-heart.

04. Leather The antithesis of the soft, plush velvet, this cooler, sleeker fabric can, just like its warmer cousin, be seen everywhere this season, though the latest styles are more dramatic than they’ve ever been. Long men’s coats in leather have been seen on catwalks internationally, though Paul Smith has also launched a jacket with a hand-painted ‘dreamer’ detail, which is bound to sell out fast.

05. Tartan checks Alexander McQueen has a lot to answer for when it comes to bringing the extravagant into the mainstream. And, here, winter blues are brightened up with coloured checks, a look with more Christmas spirit than Rudolph on the 24th December. But, for those who prefer a more toned-down look, the pattern can also be found in cooler blue shades.

06. Full-on glam Not for the office (but definitely appropriate for your work’s Christmas drinks), this look demands you push the boat out and make heads turn, whether you’ve donned a sparkly little number or a dashing tux. Think jewel-toned sequinned dresses; chunky sparkly necklaces; patent brogues and slim-fitting waistcoats – they may seem slightly OTT, but Christmas is the time to put your Sunday best on, right? cc

02.

Anthropologie

Paul Smith

Jaeger

Massimo Dutti

Coast UK

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06. 05.

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NEWS Events & Initiatives

01. 01. “Seizing the opportunities of the transformative age” “Keeping up with rapid transformations has become a challenge,” said Frank V. Farrugia when addressing the EY Malta’s Annual Attractiveness Event which was held on 24th October. “A challenge that Malta can safely and proudly say it welcomes with open arms.” Mr Farrugia noted how the adoption of rapid advances in technology have allowed Malta to overcome its geographic insularity, so much so that it is now the global pioneer in areas that look to be the present and future drivers of more and more transformation. Referring to Malta’s pioneering legislation in the field of blockchain, Mr Farrugia commended the establishment of the Malta Digital Innovation Authority and plans to design a legislative framework in the field of Artificial Intelligence as opportunities presented by the transformative age and seized by Malta. “The business community understands that change is inevitable as Malta strives to maintain an attractive climate. However, the necessary transformations must occur in a manner that is respectful of society’s present and future wellbeing in all its aspects,” he said.

organisations stressed that the decision to join a union or employer body should be left entirely up to the individual employee or company to decide. They insisted that the right to freedom of association was enshrined in ILO Directives, and the freedom of association implies also the freedom to disassociate oneself from either a trade union or employer organisation. Compulsory membership does not add to anyone’s rights.

03. Chamber urges Minister Cardona to promote manufacturing industry's competitiveness Chamber President Frank V. Farrugia urged Minister Chris Cardona to promote the competitiveness of Malta’s manufacturing industry in any political discussions on measures that would impact competitiveness. Mr Farrugia was opening a special dialogue session with the Minister for the Economy and Malta Enterprise, organised by the Manufacturing Economic Group on 7th November. During the session, members were informed of

the plans and measures for local industry following the 2019 Budget Speech. “As the champion of competitiveness in industry, the Chamber quickly sought to reach out to the Ministry for the Economy and Malta Enterprise because we know that, despite the scarce mention of the manufacturing industry in the recent Budget Speech, there is still significant support and plans for industry,” Frank V. Farrugia said. In his address, Patrick Cachia, Chairperson of the Manufacturing Economic Group, praised industry’s significant resilience and its continued vital importance to the economy but noted the worrying decline in performance during the first half of 2018 compared to previous periods. Minister Cardona, together with William Wait and Mario Galea, Chairman and CEO of Malta Enterprise respectively, provided answers to numerous concerns and issues raised by members.

04. Malta Chamber Budget 2019 full reactions Further to its preliminary public reactions issued on 22nd October, the Malta Chamber undertook an in-depth and fully comprehensive analysis of the 2019 Budget Speech within the broader parameters outlined in the Economic Survey and the financial estimates presented with the Budget. The reactions presented in the document are the result of an internal consultation process collecting feedback from committees and individual members. The detailed reactions can be accessed on maltachamber.org.mt/en/maltachamber-budget-2019-full-reactions.

02. Union membership should be a free choice In a statement issued by the Malta Chamber together with the Malta Employers’ Association, and the Malta Hotels and Restaurants Association, the employer organisations said that union membership should be a free choice. Reacting to the Prime Minister’s statement in Parliament, where he encouraged a discussion about the possibility of introducing an obligation for workers to be part of a union, and for all companies to be associated with an employer organisation, the employer DECEMBER 2018/JANUARY 2019

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05. Start-up event provides information on access to finance Numerous young entrepreneurs attended an event on the availability of funds for start-ups titled ‘Start-Up Strong: Access to Finance’ at the Malta Chamber on 13th November. The event, which was organised in collaboration with BOV, formed part of SME Week. Welcoming a packed hall of new and aspiring entrepreneurs, President Frank V. Farrugia, urged the audience to persevere through the inevitable hardships that one will face during the initial stages of a business’ lifetime, as the result will always make one proud. “I wish all entrepreneurs, and would-be entrepreneurs with us today, the courage and determination to fulfil their dreams. Through your hard work, I hope that you will contribute to the economy and create international brands, innovative ideas and services that will make Malta proud,” he said. Albert Frendo, Chief Business Development Officer (Credit), BOV, explained why established banks tend to tread cautiously when requested to finance start-ups, noting that high risk profiles do not usually fit within the risk appetite of established banks. Maria Micallef, Managing Partner, RSM Malta, provided expert insight on how to build a business plan that guides one’s start-up to growth and success, while also providing the necessary information to potential investors. Moira Attard, Director General, Measures and Support Division, presented the Business Enhance Grant Scheme of relevance to start-ups, namely the SME Consultancy Services Scheme, the Startup Investment Scheme, the e-Commerce Scheme, the SME Internationalisation Scheme, as well as the RD&I Scheme. 62

05. Karl Herrera, Chief Officer Incentive Management, Malta Enterprise, presented Business Start, Start-up Advance, Start-up Finance and Micro Invest; four unique support mechanisms offered by Malta Enterprise to start-ups at different stages of development. The presentations were followed by a panel discussion dedicated to alternative forms of finance and support. Julian Azzopardi, CEO, JAYE, stressed the invaluable importance of mentoring, education and exposure related to entrepreneurship even at an early age. He explained JAYE’s role in guiding many teenagers in possession of raw entrepreneurial talent and ambitions to succeed through practical experience. Concluding the event, Aaron Farrugia, Parliamentary Secretary for EU Funds and Social Dialogue, noted Government’s ambition to have an agile and growing economy supported by both EU grants and various other financial instruments. He noted positive developments in the fact that the EU Commission should be boosting the EU funds budget for SMEs in the next budget.

06. Grants should replace energy efficiency tax credits The Malta Chamber proposed that support measures to help businesses carry out investment in energy efficiency ought to be given in grant form rather than as tax credits, as is the current practice. The proposal was made by the Energy and Environment Committee within the Malta Chamber as part of a consultation process currently underway for the ‘2030 National Energy and Climate Plan’. In a letter signed by Energy and Environment Committee Chair Perit David Xuereb, the Chamber argued that tax credits were no longer an attractive instrument to drive private sector investment, especially in areas such as energy efficiency, where the return on investment tends to exceed a medium-term period of three to five years. The letter addressed to the Energy and Water Agency, clarified “the Malta Chamber firmly believes that in order to have more notable and effective take-up of support schemes for energy efficiency investment projects in the private sector, support measures and/ or incentives must be given in grant form.” DECEMBER 2018/JANUARY 2019

CHAMBER/81

NEWS Internationalisation

01. How to instigate a culture change in occupational health and safety The German-Maltese Business Council within the Malta Chamber organised an event titled ‘How to Instigate a Cultural Change in Occupational Health and Safety: a German Perspective’. Armin Eckermann, Chairman of GMBC, moderated the event which delved into the relevance of a culture of prevention within the local context. Following an opening speech by Olaf Rieck, Head of Economic Affairs within the Embassy of the Federal Republic of Germany, Dr Mark Gauci, Chief Executive Officer at the Occupational Health and Safety Authority, delivered a presentation in this regard. This was followed by a keynote presentation delivered by Dr Ulrike Bollmann, Head of International Cooperation at the Institute for Work and Health within the German Social Accident Insurance. Dr Bollmann spoke about various models of organisational culture, as well as different aspects within the culture of prevention, such as leadership, communication and participation, that should all be incorporated within companies’ strategies when implementing health DECEMBER 2018/JANUARY 2019

01. and safety policies and procedures. Furthermore, the seminar featured a panel discussion which tackled various aspects such as the fast integration of new and foreign recruits with different cultures within a company; the importance of preventive measures and preventive checks to protect against eventual claims; the importance of having competent, certified health and safety supervisors overseeing

projects; and the role of trade unions. The panel was composed of Ing. Ruben Cuschieri, General Manager at Seifert Systems Ltd; Dr Andrew Sciberras, Owner and Audiologist at Loud and Clear Professional Audiology Services; Victor Carachi, President of the General Workers’ Union; Dr Mark Gauci and Dr Ulrike Bollmann. The event closed with a networking reception following a Q&A session. 65

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02. Malta Chamber and Indonesia embassy explore trade opportunities “There is ample room for improving trade balances between Malta and Indonesia, an aspect which makes it worth pursuing not only for the business communities but also for our people,” said Lino Mintoff, Head of Projects and Internationalisation at the Malta Chamber of Commerce, Enterprise and Industry, during a seminar on business and investment opportunities in Indonesia. The event was organised by the Malta Chamber jointly with the Embassy of the Republic of Indonesia and the EU-Indonesia Business Network.

Over the last 10 years, Indonesian GDP has grown at a rate of 5-6 per cent annually and it is predicted that the country will be within the top 10 largest economies of the world by 2030. Last year, Malta registered €4 million imports from Indonesia and €9 million exports, with the major sectors of interest being minerals, paper, cereals, pastry products, pharmaceuticals and fish. Such a scenario provided a context to delve in technical detail on the current economic development and trade opportunities with speakers from the Indonesia Central Bank Representative Office for Europe and the EU–Indonesia Business Network. Addressing Maltese business representatives, H.E. Esti Andayani,

Ambassador of the Republic of Indonesia in Rome, underlined her intention to strengthen common business interest with Malta. This intention follows in the ambit of the sixth round of negotiations between the EU and Indonesia towards a Trade Agreement, which took place in Indonesia a couple of weeks ago. Once established, the trade agreement will provide a legal framework towards the creation of longterm business on various aspects of trade. Indonesia’s 73rd anniversary of Independence was also celebrated by a commemorative reception courtesy of the Ambassador of the Republic of Indonesia, with the participation of the Acting President of Malta Dolores Cristina.

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03. Malta Chamber signs Mou with China Council for the Promotion of International Trade The Malta Chamber and the China Council for the Promotion of International Trade signed a Memorandum of Understanding aimed to further recognise and establish friendly and cooperative relations, as well as support trade and investment promotion between Malta and China. The signing took place at the ChinaMalta Economic and Trade Forum, which featured the participation of the Embassy of the People’s Republic of China, the Maltese Chinese Chamber of Commerce, the Chinese Commercial Community in Malta, and the China Council for the Promotion of International Trade. Addressing those present, President Frank V. Farrugia said that the occasion offered a first-hand opportunity to discuss Malta and China’s relationship concretely. He said that the two nations could synergise and further strengthen their commercial relations. Referring directly to the Trade Forum, Mr Farrugia noted that its purpose was to facilitate bilateral trade between Malta and China by creating the right environment for business matchmaking and attracting investment to Malta, while offering trade facilitation services to Maltese companies doing business in China. “It will also provide interested entrepreneurs with appropriate information about trade, commercial, intellectual property rights and legal matters that can enhance the potential of doing business in our respective countries,” Mr Farrugia said.

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04. Malta Chamber and US Embassy in Malta promote trade opportunities “Our effort to bring our two nations closer and promote business collaboration will undoubtedly result in a prosperous future not only for the businesses communities but also for the people of both countries,” said Frank V. Farrugia, during a seminar on business and investment opportunities in the United States of America, organised jointly with the US Embassy in Malta and AmCham Malta. In his address, Mr Farrugia remarked that improving the international correspondent banking relations will go a long way to facilitate business between the two countries. He remarked that correspondent banks are necessary for commercial transactions with foreign companies and for local banks to trade in the dollar. “A practical and transparent solution needs to be found to ensure that companies can transact easily between our two countries,” he said. cc 70

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CC Finance

The Social Good Foundation – PKF meets a blockchain marvel in Tokyo Malta’s pledge to become a crypto and blockchain hub in Europe mirrors Government’s sponsorship of the mega Delta conference. This local event succeeded to promote this vision, and has put Malta on the map, attracting the attention of giants such as Binance, Okex and BitPay. Perhaps the synergy of giants such as Binance will attract the attention of Social Good to choose Malta as its launching pad. At another conference attended by PKF in Zurich (see photo above) the speakers emphasised the importance of Asian countries giving birth to mega players in the blockchain arena.

KF Malta broadened its marketing horizons when last August, it visited the headquarters of the Social Good Foundation Inc. in Tokyo, Japan. The Social Good Foundation is a company whose ICO raised an impressive $30 million from overseas private institutional investors. What is the Social Good Foundation? This venture prides itself on a business model which promotes a token-based social contribution-oriented ecosystem, utilising blockchain technology. Soichiro Takaoka, the CEO of Social Good says that the company aims to be “the Amazon or 72

Rakuten of the blockchain era.” The Social Good Foundation uses AI and conducts research in the investment industry by analysing a variety of big data to discover investment targets, such as shares that are likely to increase in value. What does Social Heart do? Social Heart holds the funds in reserve so as to maintain the value of the cryptocurrency and establish credibility. The novel idea behind this cryptocurrency is that it allows the holder to receive cashback when shopping at participating stores, part of which is automatically donated to charitable

Soichiro Takaoka DECEMBER 2018/JANUARY 2019

CC Finance

Social Good headquarters in Tokyo

Who is Soichiro Takaoka? Soichiro Takaoka has an impressive biography. After graduating from Tokyo University, he started his career at Mitsui & Co Ltd, where he was engaged in Overseas Investment Review, New Business Development, and M&A in the IT business sector. He then formed the Ayumi Trust Group (formerly the Abraham Group) in 2005 – an IT media business pioneer targeting the wealthy class. He then established and managed a Hong Kong securities company licensed under HKSFC, which he later sold. Mr Takaoka was appointed Representative Director and CEO of each of the Group’s companies, Hedge Fund Direct Co Ltd (FIEA No 532) and Yucasee Wealth Media Co Ltd. He led group companies running finance and media business for wealthy people in the FinTech sector. After establishing a wholesale special securities company authorised by the Hong Kong Securities and Futures Trading Commission, Mr Takaoka is well-versed in the field of global finance, including sales. He also serves as a part-time professor at Kyushu University. In 2018, he was actively promoting the Social Good Foundation to promote social contribution ecosystems applying blockchain technology.

Visiting PKF offices in Osaka

organisations. The foundation submitted a business model patent application regarding a cashback system utilising cryptocurrencies in Japan and the United States early this year. At the end of April, the number of Social Good holders had surpassed 30,000 people worldwide. Social Heart is a neutral fund-rating DECEMBER 2018/JANUARY 2019

organisation; it is positioned to use big data to carefully select superior funds worthy of long-term investment by the wealthy from a huge volume of fund data. Its founder, Soichiro Takaoka, is an accomplished entrepreneur in the FinTech sector, with over 10 years’ experience as both a founder and CEO.

In conclusion, PKF augurs that Social Heart Foundation will follow in the footsteps taken by other heavyweights such as Binance, Okex and BitPay to become the next giant in the blockchain arena in Malta. cc

01. Fitbit Alta HR If you’re looking for a device to track your fitness levels, this is the gadget for you. Unlike an ordinary smartphone, the battery life lasts one whole week, and the slim and discreet band houses plenty of tech. It tracks steps, calories burned, sleep and heart rate, and comes in six colours.

02. Q Acoustics M3 Soundbar If you’ve been searching for the perfect device to jazz up your sound system, Q Acoustics M3 Soundbar will do the job. Its compact and elegant design will fit neatly under any TV, and it’s easy to set up, ensuring maximum performance with minimum fuss! It also features Bluetooth and HDMI connectivity, with the latter supporting Audio Return Channel (ARC). Most importantly, the audio performance is excellent.

Fundamentally redesigned and reengineered, the Apple Watch Series 4 is all new for the better you. Keeping track of your health and steps will help you stay even more active, healthy and connected. Series 4 includes a new electrical heart sensor with emergency SOS, new workouts, cadence and pace alerts, and monthly challenges to keep you active and motivated.

06. Canon IVY Wireless Mini Photo Printer

01.

Canon’s wireless mini photo printer is a game-changer. The pocket-friendly printer travels with you whenever and wherever you desire. Print, peel-and-stick 2” by 3” photos from your smartphone or favourite social media platform to share with your friends and family. You can even customise your photos before you print them by adding frames, emojis, text and the works. cc

www.qacoustics.co.uk

From health trackers to sound machines, this season’s cuttingedge gadgets will do the trick for on-the-go users. Jillian Mallia finds out.

GADGETS

05. Apple Watch Series 4

www.fitbit.com

Tech Trends

02. www.jaybirdsport.com

The Jaybird Run is an all-new headphone set, specifically designed for runners. This pair of wireless earbuds ticks almost every box. With four hours of battery life and a charging case storing enough energy for another four hours of use, they’re perfect for long distances, and they’re so light, you’ll barely notice you’re wearing them. Most importantly, they are water- and sweatresistant, and have built-in tracking features.

04.

04. Anker PowerCore Lite Battery Pack

shop.usa.cannon.com

If you’re constantly on the go and need to remain connected, then this is one product to consider. Its advanced technology ensures fast and safe charging. PowerCore Lite is incredibly slim and light for its large capacity, and is capable of charging a phone over three times and most tablets once. Just slip it into your bag and you’re good to go.

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DECEMBER 2018/JANUARY 2019

www.anker.com

03. Jaybird Run

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05.

www.shape.com

CC DESIGN TRENDS

A glittering tribute to generations past Throwing open its doors last February for a new lease of life as an elegant hotel, the 16th-century Domus Zamittello is a sight to behold as you enter the capital. Its position on the corner of Valletta’s main pedestrianised thoroughfare and Freedom Square means that it is immediately visible as you make your way into the city, and grant its inimitable views of the Parliament building and neighbouring Pjazza Teatru Rjal. Sarah Micallef meets owner Count Alfred Manduca in the hotel’s historic Sala Del Conte, to find out what went into its impressive restoration.

uilt around 1580 during the construction of Valletta, the palazzo became the residence of the Knights of the Langue D’Italie in c. 1633, and some time later, in 1805, it passed on to the family of the present owner, Count Manduca. “It was bought by Sir Giuseppe Nicolo Zamit, a well-known figure in the law courts,” says Count Manduca. “At that time, he made some alterations to his new residence, hence the Baroque-era additions to the staircase and courtyard,” he explains. Fast forward some eight generations, the impressive building was inherited by Count Manduca’s father, and eventually passed on to his brother and himself, although at this stage, it was rather the worse for wear. “When my father inherited it, the house hadn’t been lived in since the 1950s, and all the entrances were rented out and utilised as shops. This included the main entrance, which meant that we didn’t have direct access to the upper floors, so it became neglected and deteriorated to a dilapidated state,” he explains.

DZ entrance

But it wasn’t until two decades later that they could do anything about it, says the Count. “To cut a long story short, some 22 years after my brother and I inherited it, we finally managed to start evicting the shop owners, and it was only then that I could start developing some idea of what we could do with the place,” he maintains, revealing that his original permits were for – believe it or not – a shopping arcade and offices. “This was mainly because the courtyard at the time was covered with corrugated iron and topped with air conditioning units which supplied all the shops, constituting a real eyesore,” he continues, explaining that in those circumstances, there was no way you could do up a hotel of this calibre. Eventually, the strong-willed owner decided to “bite the bullet”, as he calls it, and bought out the tenancy from the last tenant, which occupied the main entrance. This was another step in the right direction for Domus Zamittello as we now know it today, although more hurdles were to follow, comprising a five-year restoration process during

View from terrace DECEMBER 2018/JANUARY 2019

CC DESIGN TRENDS

which the plan changed considerably from shopping mall to a luxury accommodation within an enchantingly renovated palazzo. The owner was passionate about restoring the building back to its former glory and bringing out its soul once again. “In these two rooms,” he explains, motioning around us – we are sitting in the fantastic Sala Del Conte, which lies alongside the Sala Nobile – “this ceiling was falling down, most of it was on the ground.” The coat of arms which now proudly adorns the ceiling of this room, he continues, was half visible, and the silk damask covering the walls was rotten. In the adjoining Sala Nobile, where the hotel’s guests now take their breakfast, the frescoes from the curtain pelmets upwards didn’t exist, and the ceiling was collapsing. “These two rooms alone were a twoyear job, with two people working on them non-stop to restore every nook and cranny. This included the coffered ceiling in the Sala Nobile, as well as the frescos, which were DECEMBER 2018/JANUARY 2019

“When my father inherited it, the house hadn’t been lived in since the 1950s, and all the entrances were rented out and utilised as shops.”

Sala de Conte

CC DESIGN TRENDS

Sala Nobile

painted over, and the ceiling of the Sala Del Conte. The ceiling in this room is a replica of what there was originally – other than the frame in the middle featuring the coat of arms of the five families that owned the place over the generations – which is the restored original.” The central coat of arms, he explains, “is my personal coat of arms as the Count of Mont’Alto which is my title, and the surname is related to Manduca Piscopo Macedonia Zamit.” Enjoying lively past lives as a sitting room and elegant ballroom, these rooms are rife with history, and Count Manduca was adamant in keeping true to their original style. In fact, the only real change here is the blue damask, which is different to the original striped yellow and red. “I didn’t quite like it,” he smiles, “so we came up with the

blue concept and had it woven for us by a specialised team in Italy.” The rest of the building, sadly, was in such a dilapidated state that it needed to be rebuilt, starting from scratch. With permits for a shopping centre still in hand, the ceilings were replaced with concrete slabs as opposed to traditional beams, which, in hindsight, worked in their favour – providing more open space and better areas to maximise as guest rooms. The hotel concept came about after works had actually started. “I saw so much potential in the rest of the building that we changed the concept into a hotel,” says Count Manduca. The plans were to shift considerably throughout the process, he maintains, and at one point, they even considered converting the luxurious Sala Nobile

“I saw so much potential in the rest of the building that we changed the concept into a hotel.”

and Sala Del Conte into suites for guests. Eventually, after gaining permits from MEPA to add another three rooms at roof level, they were able to utilise the fantastic spaces as common areas. “Although they would have been exceptional suites, it would have been a great pity to use them as bedrooms,” he attests. Describing the guest rooms, Count Manduca explains that the 21 rooms include five suites which are named after the five families that lived here, each featuring the coat of arms of the respective family. The rooms here either overlook South Street and the open-air theatre, Republic Street, or the central courtyard lobby lounge, which has been given a retractable glass roof. Each room is different, and the design of the furniture, as well as the beautifully handpainted details on the doors and wardrobes, are very in keeping with the early-19thcentury baroque designs favoured by the family generations ago.

King Superior Room DECEMBER 2018/JANUARY 2019

CC DESIGN TRENDS

“We wanted to bring back everything that was here and maximise the history of the place,” he maintains. And they certainly did, though not without luxurious modern comforts like underfloor heating! Still, getting there was far from straightforward, he reveals. Apart from the challenge of working in Valletta, with works only permitted to take place between 7pm and 11pm in the evening – a factor which understandably slowed down the process and increased the cost – finding the right team to carry out his vision proved difficult. “When we first started the project, I thought of employing foreign designers who had a different vision to the norm, but realised that, because they didn’t have the feel of the building, they couldn’t understand what I really wanted,” he maintains, admitting that he would eventually go through four designers who he engaged and then stopped, “because I didn’t feel that their plans respected what was already here.” Eventually, it fell to the Italian restorers who were working on the aforementioned Sala Del Conte and Sala Nobile. “I really needed someone who could understand the history of the place, and to begin with, sadly, they still didn’t get it right,” he confides, adding that he was about to draw the line when they invited him to visit a factory in Italy, where they would eventually manufacture the furniture. “When I got there, I knew that they had finally got it – and the understanding was there.” The design team was thus headed by this Italian company, with the help of a Maltese project manager 80

Strada Reale Suite

“These two rooms alone were a two-year job, with two people working on them non-stop to restore every nook and cranny.”

who could understand the local context. “My wife was also instrumental in helping me figure out what I wanted,” he adds with a twinkle, going on to describe the style achieved as classic, and “very much the style of the building itself.” As for defining features, he points to the two amazing knockers that adorn the front door as particularly noteworthy. “They’re very intricate, depicting two coats of arms with two ladies supported by two lions. That alone is already part of the story – the main door is the original main door which I found in storage – it hadn’t been here for 60 years, and we managed to restore it,” he explains, adding that the beautiful statues in the main area and the grand courtyard are also characteristic. Apart from that, the Sala Del Conte and Sala Nobile “make the building”, and the terrace is also a major plus – “we’re right in the centre of the entrance to Valletta, with the backdrop of the Triton Fountain.”

As the hotel continues to cement itself as the city’s number one reviewed accommodation, Count Manduca reveals that a restaurant with a separate entrance is next on the agenda, and will open its doors soon, as well as future plans for an underground spa with a gym and swimming pool which will be built within the well and which he reveals has “wonderful vaulted ceilings”. And while the restoration and transformation of Domus Zamittello was a lengthy and at times trying one, the beauty of the building today is testament to a job well done. “There were times when I looked at myself in the mirror and said ‘you’re mad’, because there were so many obstacles and it was such a nightmare at times, but today we’re very proud of what we achieved,” Count Manduca says. “Will I do it again? I doubt it!” he chuckles good-naturedly, though between you and me, I don’t quite believe him. cc DECEMBER 2018/JANUARY 2019

Office Trends

As we bid 2018 farewell, Marie-Claire Grima looks at some of the interiors trends which are set to reign over the coming year. 01. Acrylic Furniture While the rest of the world battles to cut down on overusing plastic, the same cannot be said when it comes to interiors – acrylic and lucite furniture are more on-trend than ever. Clear furniture and accessories are visually light, making them great additions for smaller spaces. Their lack of colour means that they go with everything, and complement almost every kind of office style.

02. Mixed Metal Accents

STYLE

The Art Deco influence is expected to take a much more central role in 2019, and its effects will be seen in all aspects of interior design. Look out for luxurious and ornamental textile design, and sleek and glamorous furniture silhouettes, which will echo the decadence and creativity of the age that inspired them, whilst making the space elegant and office-appropriate.

05. Crittall Windows The iconic Crittall windows have never really fallen out of fashion, but lately, that style of steel windows has been gathering more appreciation for its versatility as walls, rear extensions and room dividers. The sturdy, slim-profile frames tap into the current trend for all things industrial, while opening up workspaces and letting in more light.

An assemblage of two or three different metal accents is a tasteful way to create balance and definition in an environment. Make sure they complement each other – brass, gold or nickel accents mix well with either oil-rubbed bronze or aged iron accents, while silver and pewter can be stylishly combined with bronze and black-brown metals.

06. Spiced Honey

03. Light Wood Floors

01.

Light-coloured wooden floors provide any space with a more expansive look and feel, ideal for maximising smaller office spaces. In shades of birch, beachy white and light oak, these floors reflect more light than their darker counterparts, and can be adapted for a casual office as well as a more formal setting.

No, this didn’t accidentally fall off the food pages – it’s the name of Dulux’s Colour of the Year for 2019. A warm and cosy hue with inviting amber tones, Dulux chose the rich, warming colour as an antidote to the somewhat unsettling nature of 2018, emphasising the need for interiors to be re-energised for the year ahead. cc Neiman Marcus

05.

Lightfoot Windows DECEMBER 2018/JANUARY 2019

REVIEW

04. Art Deco Touches

02.

West Elm

03.

Axiom Workplaces

04.

Duc TayOne

Dulux

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CC INTERVIEW

“The art of reinvention is key” It’s easy to get stuck in a rut, whether professionally or personally. Here, businessman and writer Jonathan Shaw speaks to Rebecca Anastasi about the importance of learning and evolving by enabling change – the premise of his book #Forty, Be the Change.

DECEMBER 2018/JANUARY 2019

CC INTERVIEW

usinessman and writer Jonathan Shaw is a man who has worked for change, both professionally and personally. Three years ago, he did something drastic, though not altogether unfamiliar: he left his business and decided to take some time to re-evaluate his priorities. He believes constant evolution is integral to growth, whether in a company, within a family or even on a private, individual level. And his book, #Forty, Be the Change, which has recently hit bookshelves, aims to convey this philosophy and motivate others to implement adjustments in the way they do things and the way they think, in what he sees as an opportunity to flourish. “Change is a process which requires commitment,” Jonathan says. “People sometimes resist it, because of the unknown, but it needs to be seen as a chance to build something new. You need to work for it, however.” The businessman and writer “personally opted for change”, he tells me, citing a shift in perspective when he hit his 40s. “After turning 40, there’s a switch which goes on and off since you think about life a bit more. That decade is one of the toughest since your parents are older; your kids are as well, if you have them; and sometimes you realise you’re not going to accomplish your dreams. That’s when reality hits. This is where people get stuck in a rut, but it’s also when you start to become more aware.” Jonathan “went through this process” and he “re-engineered” his day-to-day. He changed his lifestyle and diet; read more; and travelled. While travelling he started to jot down some thoughts. “I started writing for myself, as a means of gaining objectivity, and also as a form of release.” He showed his work to two friends of his – writer and actress Jo Caruana, and journalist Chris Peregin – who encouraged him to do something with these reflections. “We met a number of times and we had sessions whereby I would read the concept and we would question it and discuss

it. And from these concepts, we shortlisted 30 powerful ones.” He describes the process of writing and editing as “incredible”, also thanks to the help of another friend of his – Mikela Fenech Pace – who “gave the right perspective.” The end result is a compendium of tips, outlining a more productive, and possibly satisfying, way of living. Between the covers, Jonathan gives advice, such as “80 per cent of your fears will never happen” and “share your plans as much as you can”, which will ring true for many – whatever the age and circumstance. “Publishing a book is daunting, since you’re putting yourself out there, but this is not about me or Malta, and you don’t need to be 40 to read it! We have 30 concepts in there, together with tips and exercises. The magic will happen if you do the exercises,” he explains. Indeed, the exercises are part of a structured package which pushes the reader to reflect on issues which get bypassed in the rush of our capitalist routines. From the often-heard “switch off your mobile phone” and the more reflective “stop to think and list four things you wish to get done in three months” to the corporate-sounding “identify one personal skill or trait that you can improve to become a better negotiator”, this often feels like a survey of dos and don’ts to living, and operating, in the 21st century. “You don’t have to read it from cover to cover. I call it a great book to have in the bathroom,” Jonathan smiles. “At least have a book, not your phone! It’s one of those books you need to feel you want to read it. You need to have the space for it. I still struggle with some of these concepts myself, but I wrote them in such a way so that they could be helpful. You could adapt them in multiple situations and you could have already heard some of these, but there is so much distraction, that often we forget about them and need reminding.”

“I’m not saying there is a need for constant change, but by even moving out of the role you’ve occupied for years, you get the opportunity to discover something new.” DECEMBER 2018/JANUARY 2019

CC INTERVIEW

“Change is a process, which requires commitment.”

Indeed, Jonathan explains how it is often easy to slip down the slope of routine, becoming automatons destined to repeat the same habits and mistakes, even within our own businesses. “If you’re doing something wrong, you may be doing it without knowing. And you won’t be conscious of it until there is a shock, though sometimes that is too late. The older we get, we assume that we are right, but we need to question this,” he stresses. He advocates for an awareness of what we do; formulating an understanding of our weaknesses and using that to constructively become better. “We keep on postponing

thinking about the way we do things, but if you knew how much time you have left, would you change something?” He asserts that money should not be the determining factor to how we live our lives, and that “it’s important to have your priorities right”. He also dismisses the cliché which comes with being called a workaholic in today’s highadrenalin corporate environment, saying that “a workaholic is not someone who works hard but someone who puts aside other important things and ignores them.” He complains that “all I hear is that people are busy” and states that “we need to refrain from upholding ‘busy’ as a benchmark for success.” DECEMBER 2018/JANUARY 2019

CC INTERVIEW At face value, this may seem inappropriate for today’s growth economy, characterised by fierce competition and international trade. However, much of what is spelled out on the pages of Jonathan’s tome applies productively for the business environment too. Here, he emphasises the importance of reinvention, whether from a corporate or an individual point of view. “The art of reinvention is key. I’m not saying there is a need for constant change, but by even moving out of the role you’ve occupied for years, you get the opportunity to discover something new.” He says this is particularly relevant in family businesses which are looking to plan for the future and which have embarked on a process of succession planning. “This applies to a lot of family businesses where the parents or owners don’t want to let go; they don’t reinvent and when the time comes for people to take over, they’re not ready. But there is a way to do it. Sometimes, you get people who are external, who can support you and your loved ones, and who are not emotionally attached. They can then coach the process.” Moreover, in order to keep progressing productively, a questioning stance should always be adopted, according to Jonathan. “Letting go can be a tough one but being

“As a leader you need to know where you need support. So, you need people who are better than you. If you don’t pick the best, your competitor will.” stuck in the past doesn’t help. Being aware of what has happened is important, but you need to be constantly moving forward, as companies, individuals and, even as a country, in an ethical and sustainable way. That is true growth – there is more to growth than numbers.” Indeed, effective leadership understands these challenges, Jonathan says. “You are seeing things no one else can. Your vision is the catalyst. But, you cannot have a vision which stops developing – it should have the momentum and flexibility to adapt to evolving needs.” He notes that this is not the only quality of an efficient leader, but a true captain must realise he or she rests on the work of many. “As a leader you need to know where you need support. So, you need people who are better than you. If you don’t pick the best, your competitor will.” In this regard, he stresses that, while much of today’s discourse emphasises recruitment, retention should also be prioritised. “Who are the people to leave a company first? The good ones. In today’s business environment, we’re used to saying that finding the right

people is tough. But, now, it’s retaining the right people which is a challenge. And, if you cannot retain the right people, the issue is with you, not with them. People need more than a good wage. You need to give them space to grow and you need to give them ownership.” But, how does Jonathan intend to keep growing? “Now I want to prioritise on what’s next, and, come January, I will be hitting the ground running. Time is a luxury nowadays and I’m sensitive to that, so it makes my choices a bit harder.” Among his myriad activities, he has recently become a certified coach in cognitive behaviour – which has enabled him to discover more about “change management and the psychology of change” – but, he stresses, he has “become more process-, rather than result-oriented.” For, indeed, it is the “continuous” journey which counts, for Jonathan, one which starts with the very first step. cc #Forty - be the change, is published by Midsea Books and available from Amazon and Agenda & WH Smith bookstores.

CC CASE STUDY

MaltaPost – Assisting businesses to focus on their core competencies With challenges such as lack of human resources, increased rental costs and longer commute times, more and more businesses are trying to find cost-effective solutions for their back office and logistics requirements. Jillian Mallia speaks to Robert Cassar, Head of Business Relations at MaltaPost plc to find out how MaltaPost has been expanding its business portfolio to meet demands.

altaPost plc’s brand is a recognisable one on the islands, and forms part of a long Maltese heritage. With one of the largest vehicle fleets and retail networks on the islands, MaltaPost’s service offering however is not limited to postal services. “Many say that nowadays, everything is ‘in the Cloud’ implying that everything is going digital,” says Robert Cassar, Head of Business Relations. “However, there are many things which we prefer to have in tangible form, be it the actual devices that access the Cloud or even items such as books and vinyl which according to the latest trends are not going anywhere and are actually ever more in demand. This is where we as MaltaPost come in, forming an integral part of this connection process. Our job is bringing such items from any part of the world, right to you.” On the other hand, Mr Cassar says that MaltaPost has embraced the digitalisation trend and can assist businesses in transferring documentation ‘to the Cloud’. “Many organisations have a backlog of archival documentation in the form of paper. Searching through such documents is inefficient and time consuming not to mention the storage space these require. We can help by taking on these documents, scanning them and assisting in uploading the data into the business customer’s systems.” MaltaPost, as Mr Cassar explains, is ISO 9001:2015 certified in this enterprise which falls under the umbrella of Document Management. MaltaPost ensures that the process of digitising documentation is carried out correctly, efficiently and securely for the

business customer. “As the main postal service provider we have been delivering documents, including confidential ones, for decades and so conveying the processes, knowledge and experience one requires to deliver confidential documents and letters to archiving or scanning such items was a natural diversification step for us.” Many organisations are opting for digitisation, including scanning, necessitating physical documents to be entered into the cloud, and in so doing, leaving valuable storage space available for reuse. MaltaPost takes on this task through a process that is fully customisable to the business’ needs. “Every business customer has different requirements, so we are ready and on hand to customise the service as necessary.” MaltaPost also offers a destruction service, whereby physical data can be destroyed, in any form, from paper to hard drives, guaranteeing full elimination of potentially sensitive information. A business can complement this with MaltaPost’s archiving services. “We have gold-standard warehousing facilities in Malta and Gozo where a business can archive their paper document archiving, as well as off-site media storage services in compliance with many of an organisation’s business continuity plans.” In relation to back office operations, MaltaPost can assist in many facets of administration. For example, MaltaPost can assist in the design, printing, folding, inserting and of course posting of various media such as statements, renewal notices, brochures and newsletters. “We’re basically a one-stop-shop in this area,” says Mr Cassar. In the case of billing statements and reminders, this service is well appreciated by finance departments especially when used in conjunction with Registered Mail, as it gives the shortest turnaround from the invoice issue date to the delivery date, with the added benefit of tracking the item from inception to recipient delivery. In recent years, MaltaPost has been customising its services in logistics too, especially in the eCommerce sphere. “In terms of logistics, especially for the retail industry, we are well set up into the world of eCommerce support. Expanding to other countries via an online shop is something most local retailers are either already doing or wanting to do. We have an online tool called eSeller which can assist these businesses. Through eSeller a business

“The main challenges a business faces, when it runs its own delivery service in-house, are the issues one tackles on a daily basis when vehicles break down, or delivery people are unexpectedly unavailable.”

can prepare all dispatches on location, which means pack everything in-house, determine the destination of these packages, and stamp on the tracking barcoded labels, ready for the items to be sent out. The packages are then picked up by MaltaPost couriers and sent to the relevant destination stream. Whether the destination is Valletta, Victoria or Vancouver, we’ll handle it,” Mr Cassar explains. “The best part,” he continues, “is that this tool is not just facilitating logistics for established businesses but is also a great enabler for start-ups.” Apart from that, MaltaPost also offers the use of parcel lockers called Easipik, a service available in various localities in Malta and Gozo. Parcels can be delivered to these lockers, which are accessible by the recipient on a 24/7 basis. From a business perspective, a company “may want to distribute its products to their customer base and may use this service to distribute in conjunction with their online shop,” he continues. Another of MaltaPost’s customisable solutions is assisting businesses in delivering items across Malta and Gozo, whether it’s for an organisation which needs a network between its various locations or whether it’s for one which wants to deliver products to its consumers. “The main challenges a business faces, when it runs its own delivery service in-house, are the issues one tackles on a daily basis when vehicles break DECEMBER 2018/JANUARY 2019

CC CASE STUDY

Photos by Alan Carville

down, or delivery people are unexpectedly unavailable. MaltaPost is able to mitigate these issues due to our extensive vehicle fleet and human resources.” MaltaPost can handle the logistics requirements of businesses, particularly for those that are not sufficiently equipped with the necessary human resources. This way MaltaPost would be helping these organisations focus on their core competencies, as opposed to them worrying about finding the right logistical solutions. And that’s not to mention the company’s international postal services. Mr Cassar explains that MaltaPost’s international postal services are legislated by the United Nations’ Universal Postal Union, so MaltaPost can send a parcel anywhere in the world. “A business can easily tap into this vast network through MaltaPost, and get access to such a delivery service at a relatively low price. Businesses can come to us and opt for different parts of the whole portfolio of logistical solutions we offer, be they entry level postal services or premium express services, such as 24 to 48 hour delivery within the EU.” Also related to logistical services, Mr Cassar goes on to mention the successful SendOn brand, which has become one of the most used services of its kind in Malta. However, there is also a business perspective to it, he highlights. “Many companies may have spare parts, DECEMBER 2018/JANUARY 2019

samples, prototypes or marketing material, for example, that need to be delivered to Malta. We have various hubs in Europe, the United States, and China that assist in the delivery of business purchases at highly competitive rates.” Mr Cassar also maintains that MaltaPost has just launched SendOn Sicily, which is ideal for companies that have frequent transactions with the nearby Italian island, through which businesses may bring their packages by trucking from Sicily to Malta. But, he continues, not only does MaltaPost assist companies in their logistics and back office requirements; it also offers assistance in corporate gifting, which comes into play more than ever at this time of year. “At the end of the year, many companies give gifts to their loyal clients, and we can offer quite a number of particular options, especially for those that would want to opt for Melitensia. One of our offerings, that is much sought-after, are collectible stamps. We can even customise stamps, including personalised photos, for particular events and occasions – a service that is quite unique and specific to the brand, business or organisation.” “One can also complement this by hosting an event at the Malta Postal Museum, situated in Valletta, where we exhibit some very interesting artefacts including of course those related to the long history of the stamp

in Malta but also, for example, letters or autographs signed by distinguished people in history such as Sir Bobby Charlton, Pope John Paul II or even Lord Nelson.” Finally, MaltaPost truly offers a service for the people, and also initiates sustainable projects to assist Government and the community at large. Mr Cassar concludes by highlighting a service that is directed towards Governmental departments, and one that MaltaPost is very proud of. It’s a document life cycle management service which employs persons with disabilities based in Gozo, in collaboration with Jobsplus and the Lino Spiteri Foundation. “People with different capabilities are therefore handling different aspects of the document management process. We employ over 40 people through this project, and we’re very proud because through it, we are supporting Government in digitisation, we are assisting the community, while at the same time ever increasing our expertise in document management.” In conclusion, Mr Cassar says, “our principal aim is that the local business community sees MaltaPost as their go-to operations partner. By doing so we strive to enable organisations to focus on their core competencies and have us assist them in taking care of the rest… their logistics, document management and back office operations.” cc 89

Food trends

03. Katsu sandos

From the latest from the underwater world to undiscovered regional flavours, Sarah Micallef finds out what’s in store for foodies in 2019. 01. Sour foods It’s out with the sweet and in with the sour! Thanks to the influence of Korean, Filipino and Persian cuisines, sour flavours are set to have a moment next year. Look out for Korean-inspired kimchee tacos, vinegar-based recipes, marinades and sauces derived from Filipino cuisine, as well as Persian calamansi, rhubarb, sour oranges, tamarind and pomegranate finding their way onto restaurant menus.

02. Here come the robots Automation is definitely a thing, and among the industries in which it really stands to make its presence felt is the restaurant industry. It would already seem that robots are making an appearance, reportedly making pizza in France and coffee in San Francisco, paving the way for AI in restaurants the world over. We wonder how long it’ll be before they find themselves in Malta.

Japanese food has been receiving some serious love locally and abroad for years now, with a variety of specialised restaurants setting up shop and offering a number of delicacies. The next Japanese star of the show, however, is decidedly more casual. Katsu sandos are Japanese sandwiches which comprise fried, breaded pork, crustless bread, cabbage slaw and spicy sauce, and we can’t wait to try them!

FOOD&WINE

04. Eco-conscious packaging If anything was ever on the pulse of public sentiment, it’s this. With the damages of plastic pollution ringing in our ears, it’s refreshing to discover that going into 2019, a number of food brands are finally making the switch to eco-conscious packaging. Food wraps made from beeswax, as well as waxed canvas or silicone alternatives to the usual plastic storage bags are increasingly being used for sandwiches and snacks, and it’s great news for the environment!

05. Innovative frozen desserts With so many ice-cream flavours available and more springing up every day, you’d be forgiven for thinking nothing will surprise you anymore! Well, prepare yourself for a new spate of frozen treats which include innovative flavours like avocado, hummus, tahini and coconut water. Still not impressed? How about ice-creams which include ribbons of savoury cheese, or chewy Turkish ice-creams that get their unique texture from mastic? I say bring it on.

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Platings and Pairings

06. Ocean veggies

Don Wagyu

Food Navigator

03.

Greens from under the sea extend a lot further than seaweed, and all manner of previously unseen sea greens are popping up on menus worldwide. And it’s not just the types of sea veggies, but also the treatment that’s unique. Think seaweed butter and kelp noodles, algae and puffed snacks made from water lily seeds and kelp jerkies. cc

Techspot

05.

Neurotic Baker

06. 04.

DECEMBER 2018/JANUARY 2019

02.

World Packaging Design

CC INTERVIEW

Let’s press refresh With the holidays round the corner, business people everywhere face one key dilemma: take a break or get planning for 2019? Here top CEO coach and trainer Nathan Farrugia, who runs Up Your Level, shares his advice on why winding down is so important, with Jo Caruana.

ou know the feeling. It’s Christmas and you want to have time off. But then again you also want to just quickly pop to the office to check that email… and maybe get started on that project for next year… and perhaps even make that call that you’ve been thinking about… And just like that, BAM! It’s the start of work life in 2019 and you won’t be any more relaxed or balanced than you were at your most frenzied moment in 2018. 92

“As a CEO coach, I always enjoy discussions around the topic of work-life balance, and the typical belief that achieving it is an impossible task if you want your business to be successful,” explains Nathan Farrugia, the coach and trainer behind Up Your Level. “And that’s especially true in times of growth or stress, when your work requires your full attention and energy.” But, Nathan questions, if you’re a CEO or business leader, when is there a time

that your work doesn't need your full attention and energy? “I’ve yet to meet a dedicated business leader that felt they weren’t indispensable to their business. And therein lies the problem. I regularly hear: ‘it’s the holiday season and key people in our business need to take time off, so I need to be there to support and guide the team’ as much as I hear: ‘it’s holiday season so we are extremely busy, with all hands on deck. I need to be there to support the team.’” DECEMBER 2018/JANUARY 2019

CC INTERVIEW about what you are doing wrong as a leader. Your absence is a test of your leadership effectiveness. It’s good to ask yourself questions like: ‘does the organisation crumble the minute I am not around to take all the decisions?’ and ‘does all the power to act lie with me?’ “But balancing work and life equally is futile. We have 24 hours in our day; a third is spent asleep or relaxing, and a third is spent at work, which means that what is left, is that for ‘life’? I don’t subscribe to that idea as it just drives guilt. If I’m working late, I feel guilty about not being at home, or at the gym, or spending time with loved ones. If I take a day off, I’m feeling guilty I’m not at work, leading by example. We’ve got it all wrong.” Thus, it’s no surprise that recent research

shows us that great leaders focus their energy and effort on making an impact and adding value to their business, as opposed to the time that they spend in it. “It’s also clear that we’re not using our time as wisely as we should be. We spend around half of it on ‘fillers’, doing things below our pay grade, that we’re afraid to delegate.” So how do we get round that? Well, ultimately, Nathan stresses that we need downtime to be at our best – but simple downtime isn’t enough, it needs to be a particular type. “Sitting on a couch watching a box set of TV junk and eating chips is not good R&R,” he explains. “Our downtime needs to be stimulating, energising and social. We need to be engaged in activities that create a sense of flow, excitement and creativity. Simply ‘switching off’ is not enough.”

“I’ve yet to meet a dedicated business leader that felt they weren’t indispensable to their business.”

Photos by Alan Carville

So, when isn’t there a time when you need to be there to lead and support your team? Nathan explains that many of us are actually in denial when it comes to how important we are for the seamless day-to-day running of our organisations, and that often, our teams are perfectly capable of operating without us. “I’d argue that sometimes we actually get in their way!” Nathan smiles. “If you do believe that your team cannot manage without you, then you probably need to think DECEMBER 2018/JANUARY 2019

CC INTERVIEW That said, some readers will argue that they get the flow, excitement and creativity they need while they are at work. “And I absolutely agree!” Nathan smiles. “That is why work-life balance cannot be measured with time. It’s not how much time you spend doing either ‘work’ or ‘life’ that needs to be balanced, but what you get from them. If work is stressful and overbearing, you need less of it. If downtime is boring, you need less of that too. Or, you need to find a way of being excited by your work, of embracing change and challenge, and of keeping it interesting while sharing the stressful load with your team and not carrying all the weight of responsibility yourself.” So Nathan has advice on how to make the most of the holiday season – both for you, and your team members. “If this is a busy time for your business, then you need to engineer the recovery period another time. Just bear in mind that you and your team have partners and families that often have their time off around holidays, so postponing to another period may not work for them. Being respectful of their needs will mean they will respect you back.

“Our downtime needs to be stimulating, energising and social.”

DECEMBER 2018/JANUARY 2019

Nathan’s life hacks: how to unwind this festive season u Use Pareto’s principle. When on holiday (or during the holidays), focus on the 20 per cent of your to-do list that will have the most impact. First, only answer emails where you are in the To: title, as the Cc: should simply be an ‘FYI’ and not require a response. Secondly, inform your team that any urgent matter must be highlighted in the email subject, with a short description of the issue and their request for you in the first three lines, so that you can read this from your device without actually opening the email. Then, if you think it can wait, skip it. u Level-set your employee expectations as to the levels of urgency they can use when they ask for your input. For example, Level three means ‘I need some advice when you have time’. Level two is ‘we have an issue that can impact the business that needs your final approval’. Level one means ‘the building is on fire!’ You can also say that you will answer Levels two and three by email, but that they should call for Level one. That way you can feel relaxed about not checking your email if you are enjoying your day because you know they will call if they really need you. u Answer your emails at the end of the day, rather than in the morning. If you do this regularly, the same 24 hours will pass between you checking your Inbox, but your replies won’t be answered until the next day. This stops your team sucking you into a long trail of to-and-fro email conversations, and also gives them the opportunity or impetus to solve the problem themselves. You’ll probably get replies like ‘no worries Boss, we sorted that out in the meantime’. It also helps to boost their confidence. u Get over yourself. You are not indispensable. If you have good people, they will probably only realise you’re gone because they are enjoying the peace and quiet. u If you still feel compelled to worry about work, practice mindfulness breathing, go for a nature walk, or do something active that distracts you. Sitting on a beach while your mind chases its tail worrying is not exactly the relaxing break you need! u If you need to do some work, make it planning work. With a clear mind, away from daily hassles, holidays can be the perfect place to think about the future. Explore your purpose, revisit your vision and mission statements, and think about the road ahead. Use this time to bring clarity and focus to what you are doing, and practice gratitude towards your success; by accepting that this break is well-deserved and will charge your batteries for the challenges ahead.

CC INTERVIEW

Photo by Alan Carville

“A day off during the week is useless if you spend it on your email or work chat, but a three-day weekend can work wonders at getting your head out of the grindstone.” “Breaks also need to be well calibrated. We do need a total disconnect from work to fully recharge our batteries, but we can also ‘top up’ with short breaks. A day off during the week is useless if you spend it on your email or work chat, but a three-day weekend can work wonders at getting your head out of the grindstone. And, if you do feel you have to mix some work time into your holiday to help you prepare for the year ahead, make sure that you are specific about the time allotted, and be accountable to someone to make sure you don’t get carried away.” Finally, Nathan underlines the fact that we all need a break, and that we must also be more wary of our state-of-mind when we’re at work. “It’s sad to see people dismiss tools like meditation, exercise and sleep as ‘unimportant’ when their work is ‘all important’. These are some of the most effective business tools you can use. The most important asset of any business is the mental state (or mindset) of its leaders and employees. Why would you not invest every tool and resource available to keep this asset in top form? “So, for those that continue to resist taking care of their health (physical and mental) because they are too busy, just remember the metaphor of the flight steward on your last plane trip. ‘In case of emergency, please put the oxygen mask on yourself before helping others’. In essence, you are useless to others if you are not functional or unconscious. The same goes for your business and your family. Don’t they deserve to have the best version of you around, when you are?” cc DECEMBER 2018/JANUARY 2019

CC make the headlines

Small- and medium-sized business owners see Fusion as a dedicated solution

Popular HSBC Fusion service now open to more small business customers In 2017, HSBC Malta launched HSBC Fusion, a new service focused on supporting small business customers to succeed and making their day-to-day banking easier. Following the success of the service, Fusion is now being extended to small business customers who trade as limited liability companies and partnerships. HSBC Fusion was first launched in October last year, offering business banking and personal banking in a unified service to small business customers with lending needs of up to €100,000 and an annual turnover of up to €1 million. Eligible customers have access to customised lending products, dedicated account specialists in each HSBC branch, a single contact number and a selection of modern digital-banking tools. Gregory Inglott, HSBC Malta Deputy Head of Retail Banking and Wealth Management says that “with Fusion’s introduction to limited liability companies and partnerships, we are extending the many benefits of the service across the business community and improving our customer service. I know our branch managers are very excited to support business owners and the role they play in the economy.” In Malta, 97 per cent of companies are small businesses and provide employment to as much as 34 per cent of the population, while contributing to 26 per cent of the country’s gross domestic product. Research shows that the majority of these customers prefer banking that is straightforward to access and manage. The service is driven by over 100 of HSBC Malta’s trained employees in branches across Malta and Gozo. Furthermore, 21 HSBC Fusion specialists situated in branches act as point of access to customers for their day-to-day needs. cc DECEMBER 2018/JANUARY 2019

CC make the headlines

Filmop International: a world leader Italian company in the professional cleaning market JMP Malta, a market leader in the supply of cleaning and janitorial needs to hospitality businesses, factories and other outlets, have been distributors for the renowned international brand Filmop for the past 20 years. Filmop manufactures top-quality room attendants’ trolleys, public area trolleys, dirty laundry trolleys, colourcoded buckets in all formats and colour-coded bins from 15 litres to 90 litres. The trolleys are strong but light, sturdy and ergonomic, and have a long life span. Moreover, they are easy to clean and smart. Its top lines include Emotion, Alpha, Alpha-Hotel and the new colour-coded separation collection range with soft-closing lids. The company also manufactures colour-coded cleaning cloths, dustpans and squeegees, as well as brooms, wet floor signs, window cleaners and telescopic poles. They are also leaders in cleaning systems such as dusting, mop soaking, flat mopping, disinfection mopping and dry mopping systems. Few companies can boast the supply of plastic second life (PSV). For JMP Malta, the provision of eco-friendly products is a priority. PSV is the first Italian and European trademark for recycled plastic materials, guaranteeing a product’s environmental certification, highlighting and identifying more easily all products manufactured by using recycled plastic, and simplifying the selection criteria for public authorities and for other companies that are interested in buying ecosustainable products. Filmop International has in fact obtained the prestigious eco-label EU certification for its Rapido Super microfiber mops. Moreover, Filmop International guarantees an excellent preand after-sales service, advising its customers on the cleaning system that is best fitted to their needs, while the easy access to parts makes this brand a forerunner in this sector. It has been a pleasure for JMP Malta to work with Filmop throughout the years. The company is quick to respond to our requests and offers unbeatable express deliveries and service. Innovation, research, development and sustainability are the keywords that have contributed to Filmop’s international growth. cc Contact JMP Malta on T: 2141 3154; E: info@jmpmalta.com

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CC make the headlines

Supporting the family way The family has always been the bedrock of Maltese society and this concept has shaped businesses in Malta for decades on end. We have witnessed many success stories of family businesses that have transitioned over time, managing to thrive and regenerate themselves across generations. Nonetheless, family businesses are increasingly becoming more complex, facing diverse issues which, unless tackled, would result in the demise of the business. Bank of Valletta, with its extensive knowledge of the local market, has continuously been at the forefront of assisting local businesses to flourish through the provision of financing solutions tailored to their specific needs. Bank of Valletta, in collaboration with the Family Business Office and the Malta Development Bank, is the first bank to launch an innovative product that offers access to finance for family business succession planning. The BOV Family Business Transfer Loan can be the solution to enable a certified family business (registered and unregistered partnership and company) to take the strategic step to transfer ownership between family members. This finance product will facilitate transfer of ownership/shareholding between members within a certified family business through one or more of the following: · a takeover of the relevant family business · a reduction in the issued share capital · the payment and distribution of a dividend · the repayment of any shareholder loans due by the relevant family business The maximum loan amount is €750,000 at a competitive variable interest rate and can be taken for a period of one to 10 years. Moreover, the Malta Development Bank will partially guarantee each loan transaction under an allocated fund of €10,000,000, thus easing customer’s security requirement and enhancing access to finance. For an enterprise to qualify for this product, it has to be registered under the Family Business Act with the Family Business Office, established and operating in the Maltese islands, economically and financially viable and not an undertaking in difficulty, and not operating in a restricted sector. cc If you are a family business considering succession planning through ownership transfer, you are invited to contact our SME Finance Unit on T: 2275 1529 or at E: smefinance@bov.com to assist you on the way forward. Information about registering under the Family Business Act and other initiatives for family businesses can be found at www.familybusiness.org.mt. All loans are subject to normal bank lending criteria and final approval from the Bank. Terms and conditions are available from www.bov.com. Issued by Bank of Valletta p.l.c., 58, Triq San Zakkarija, Il-Belt Valletta VLT 1130. Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking in terms of the Banking Act (Cap. 371 of the Laws of Malta). DECEMBER 2018/JANUARY 2019

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CC property

Regulating the residential rental market: how will it affect tenants and landlords? Martina Said reaches out to local real estate agencies for their thoughts on the Government’s White Paper on residential rent reform, finding out who stands to gain, and how it will affect the market.

he White Paper published by the Parliamentary Secretariat for Social Accommodation last October on rent reform was a move welcomed by many who are keen to see greater stability, security, transparency and flexibility within Malta’s rental market – all of which the consultation document promises to deliver. But what do industry players make of its propositions? Philippa Tabone, Letting Manager at Frank Salt Real Estate, believes the White Paper puts forward “some very good suggestions that are needed and will definitely help the private rented sector (PRS), such as predictable rent increases, where landlords will not be allowed to increase rents as they please, thus ensuring that tenants do not have to move

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out unexpectedly as they can’t afford the new rental price should they decide to extend their lease.” Other areas of the document that Ms Tabone highlights as positive are the eviction process, most interestingly the mention of a possible arbitration panel for minor disputes on issues such as refund of deposits, or extraordinary repairs, which can be resolved without having to file a court case; the possibility of the introduction of a tenancy deposit scheme, which is used in other EU countries and would be a good way of securing the refund at the end of the tenancy, again without having to resort to the courts; as well as the registration of leases. “The latter, I believe, is a very good idea. An

online portal such as the one we have in place for LES would work, where an agent/landlord/ tenant would be allowed to register the lease with the details of both parties. Should there be a dispute, then either party can log on to this portal, refer to the lease registration number, and call to have the grievance heard before an arbitration panel or a small tribunal. This means that there can also be more fiscal control, as well as a clearer picture of the number of rental properties available, as currently we do not have an exact figure.” Singling out a key aspect of the document, namely the proposed mandatory minimum contractual duration of leases, Ms Tabone says, “I think fixing a minimum term and at the same time allowing early termination DECEMBER 2018/JANUARY 2019

CC property

is a bit of a contradiction – neither party gains much.” On rental prices, she adds, “the property market is an open market and Government should not intervene to fix rental prices, but let the supply/ demand equilibrium determine prices,” she asserts. “What could be done is allow the development of more property that is in high demand, such as one-bedroom units in core commercial areas. Six-month leases are very important and still in demand because many expats relocating to the island have a sixmonth probation period, so they’re usually not in a position to sign an agreement for two to three years to begin with.” However, she adds that the White Paper proposals will not change the fact that rental prices have increased dramatically over the last 10 years, “and the lower-income groups that are looking to rent low-end properties because they can’t afford to purchase a property are finding it very hard to find such properties available. It won’t solve the fact that there is a high demand for low-end properties and the shortage in supply keeps driving up the price.” DECEMBER 2018/JANUARY 2019

“Six-month leases are very important and still in demand because many expats relocating to the island have a six-month probation period.” – Philippa Tabone, Letting Manager at Frank Salt Real Estate 105

CC property

“Broadly speaking, we feel the White Paper is a good first step towards addressing anomalies that we have been highlighting for years.” – Fabio Zuccaro, Chief Operating Officer at QuickLets

While she believes that Malta’s rental market will continue to do well, particularly in view of emerging industries such as blockchain, which will create a healthy demand for property, Ms Tabone believes there’s a need for more properties for the low- and medium-sector of the market. “I do think that a lot has been planned, and some are already in development, which is directed towards the high end of the market. A forward-thinking business person should at this stage focus on servicing the medium end of the market where there is the most demand.” Fabio Zuccaro, Chief Operating Officer at QuickLets, believes the rental market provides a good source of income to a lot of Maltese families, “but we also understand that there are the interests of the lessees to safeguard. Broadly speaking, we feel the White Paper is a good first step towards addressing anomalies that we have been highlighting for years.” The strongest aspects of the consultation document, says Mr Zuccaro, are “undoubtedly the focus on improving the procedure to solve disputes between lessors and lessees. The weakest aspect, however, is that the White Paper largely excludes any safeguarding of real estate agents’ rights,” he asserts. “We understand the need to reduce uncertainty and we would support measures that address such issues as long as they also take into consideration all the stakeholders, including our letting specialists. Currently, our agency fee is the equivalent of one month’s rent, irrespective of the length of the DECEMBER 2018/JANUARY 2019

lease. Addressing the challenge of shorter leases should also include addressing how our letting specialists will be affected since usually, this is their only source of income.” Mr Zuccaro is in agreement that, with the necessary tweaks following a thorough consultation with all stakeholders, the White Paper will add stability and regularisation to the market, as it intends to do, and will therefore affect Malta’s economy in a positive way, as it would increase the trust between lessors, lessees and real estate specialists. His projections for the real estate industry in 2019? “Positive, as long as lessors learn to understand the correct price point by consulting professionals in the market to guide them.” Asked if he foresees a shortage of supply or oversupply of residential properties in the rental market in the coming year, Mr Zuccaro asserts, “the construction industry is catering for more residential units, so I do not believe that there will be a shortage. On the other hand, we do need to promote a smarter approach to the supply of units. There is also the need

for blocks that cater for just one-bedroom units, which are widely used by employers for their international employees. As long as the economy keeps performing well, the prospects are positive.” David Aquilina, a Director at Belair Property, says that in principle, he is not in favour of any form of rental restrictions. “There is always room for reform and improvement, however, the present discussions have incorrectly centred on the increases in monthly rents. We live in a free market governed by demand and supply whereby when demand increases, prices increase and vice-versa,” he asserts. “Since no respectable landlord wants to have a vacant property, they follow these market prices. Rather than rent reform, we should be talking about rent regulation, and there is a distinct difference between the two. We don’t regulate the price of your car, your property, your boat or anything you may own for that matter, the market does that for us, and this is the principle of living in a capitalist country. Genuine rental properties are usually backed by proper rental agreements.”

“Rather than rent reform, we should be talking about rent regulation, and there is a distinct difference between the two.” – David Aquilina, Director at Belair Property 107

CC property In response to the White Paper’s proposition on imposing mandatory minimum leases, Mr Aquilina says that the entire purpose of an agreement is to have two parties agree in advance on the terms and conditions of a specific transaction, in this case the rental of a property. “Both landlords and tenants should be free to dictate and negotiate the terms and conditions of the agreement. Both may choose to accept the terms or otherwise. Mandatory minimum lease terms should have no bearing in this discussion and it should be up to the parties to decide the term of any lease.” Price fixing, he continues, could have far greater consequences if introduced, “since many landlords have sacrificed to purchase a second property for rental, and many are backed by loans and commitments, so the repercussions of price fixing on these individuals could be much greater and a detriment to the economy in general. Should we contemplate restricting the price of electric cars to incentivise a greener island or should we promote the use of electric cars through incentives? The same applies to anything we may own or wish to buy.” Mr Aquilina adds that, in some cases, the absence of a proper rental agreement is the real cause for concern. “One reason why this could happen is the absence of a reputable agent in the transaction. Any reputable agent will ensure that the terms of the lease are properly documented, both because it is in the interest of the tenant and also in the interest of the landlord, and ultimately the agent’s reputation,” he explains. “In our experience, we very rarely come across problematic landlords, but often come across problematic tenants. Why is it so difficult to evict a tenant if the individual is damaging your property or being a nuisance to your neighbours? Perhaps we should incentivise landlords to ensure that a rent agreement is in place and record their rental income by providing remedies to situations earlier described.” Mr Aquilina believes it would be beneficial to have a rental register. “The fact that a rental agreement is registered would mean that all rents are properly documented and income declared, but similarly, should also allow for recourse in the event that one party does not abide to the terms of that agreement. At the moment that recourse is court action, by which time a problematic tenant might have caused irreparable damage to one’s property.” On the sector’s health in 2019, Mr Aquilina believes the recent increase in the country’s population has created a large demand for property, “but in our opinion, there is still room for growth. The demand still exceeds the supply in some areas, and hence the pressure on price increases has come about. However, this has nothing to do with landlords, but more to do with the economy.” 108

“The demand on the lower-end market is there and will remain strong – it will also remain the most expensive per square metre.” – Kevin Buttigieg, CEO at RE/MAX Malta On behalf of RE/MAX Malta, Chief Executive Officer Kevin Buttigieg believes the White Paper is a “good initiative”. He says, “although some areas need looking into, the main point of interest to me is the registration of rental contracts with Government, which should give us good statistics to compare to. Also, having a third party holding onto the deposit is a good idea, as this is often an issue. With the White Paper, I think the rental market will be more transparent and smoother in many ways, if it’s handled in the right way.” Delving into the proposition of imposing mandatory minimum leases, Mr Buttigieg adds, “I am all for pre-determining the lengths of rents – the landlord needs to make a choice about whether they are letting for long or short periods. As for determining the lengths of contracts, I don’t really see what the problem is, as a contract is a contract. I don’t think that if someone rents for five years and when that contract comes to an

end, an owner can actually be told he needs to rent or continue the contract. What needs to be done is protect the tenant and make sure a contract is honoured, and also protect the landlord in terms of tenants terminating their contracts early.” Mr Buttigieg believes that the proposals in the White Paper will help make processes more transparent for everyone involved – this is probably, in his view, the strongest aspect of the document. “On the down side, however, are the uncertainties created by the White Paper, and the misleading fact that people think it will regulate rent.” Looking ahead to 2019, the CEO says Malta’s rental market will likely remain strong and stable. “The demand on the lower-end market is there and will remain strong – it will also remain the most expensive per square metre. The upper-end market has taken a dip and prices have actually gone down over the last few years, with exceptions. 2019 should be an interesting year.” cc DECEMBER 2018/JANUARY 2019

CC MEET THE ARTIST

Exploring connections Visual artist Pawlu Mizzi chats to Martina Said about his current exhibition, Kobba, the evolution of his journey and his pursuit to bring artistic projects into the community.

raphic designer and visual artist Pawlu Mizzi can’t recall a specific event or moment in time which led him down the artistic path he’s on today – “I was surrounded by creatives growing up,” he says. “My mother was a seamstress and my father used to design posters, so I’d say that the urge to express my creativity was within me from early on.” In his adolescent years, Pawlu kept his eye on art and design in his

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studies, and attended the Emvin Cremona Art and Design Centre in Valletta. “I always wanted to pursue that road. When I was a teenager, a lecturer of mine, artist Alfred Camilleri, had told me ‘you don’t have to be shy to assert that you’re an artist’. I’ve tried to apply that throughout my life, exploring different forms of art and using them as a communication tool for life in general.” Learning art academically and pursuing it

professionally happened in parallel for Pawlu, who spent 15 years working as a graphic designer when he decided to read for a Master of Fine Arts in Digital Arts, under the supervision of artist and lecturer Dr Vince Briffa. “The artistic process for creating a work of art is not just about inspiration, but also a lot about research, that whatever it is that you’re presenting has a narrative that can be communicated with a basis in DECEMBER 2018/JANUARY 2019

CC MEET THE ARTIST research,” he explains. “So I’d say that art has existed in my studies and my career simultaneously. I also spent the last four years working for the Valletta 2018 Foundation, pushing for community-led projects.” While having dabbled with various forms of art, including installation art, Pawlu’s work is largely digital – “if I had to describe it in simplistic terms, it’s working on a computer using digital software to create images,” he asserts. “The method I use is called re-appropriation, which is the recycling of existing images to create new ones from it. The recycling and recontextualising of recognisable objects in the contemporary world we live in today is the way forward. Of course, the style and execution will change over time.” This couldn’t be more evident than in the stark contrast of styles between Pawlu’s 2015 exhibition held at the Akkademja Kulturali Pawlina in Valletta, titled Her Majesty, and his current

exhibition, Kobba, both curated by Simon Sultana Harkins. The images of the former are darker, almost disturbing, with lots of layers and textures. “It was a therapeutic process for me at a difficult time in my life, allowing me to deal with it and move on. Kobba, on the other hand, was a reaction to Her Majesty – the style is minimalist, and each artwork is made with basic shapes and colours.” Asked if he can even describe his style, Pawlu says that, if forced to take a stand, he’d say that his art has evolved intentionally. “I don’t like to find a recipe and stick to it – on the contrary, if I have a recipe which works well, I try to push it further. It’s not easy, especially when you know that the work you’re creating is being received well and is communicating. But then, I’m a bit of a rebel, and I like to challenge myself and start from scratch.” For Kobba – a travelling exhibition with 11 different works and 45 limited edition prints of each – Pawlu says he didn’t have a destination in mind when he first started working on it.

Her Majesty - Photo by Clint Scerri Harkins

“The artistic process for creating a work of art is not just about inspiration, but also a lot about research.” DECEMBER 2018/JANUARY 2019

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Photo by Alan Carville

“The red string in Kobba raised many questions for me relating to relationships: who are we related to? How are we related? Do we want to be related?”

“I started experimenting around the time that Her Majesty was being exhibited, creating simple lines and shapes, until a number of things came together that led me to the concept for this series. The first was a poem I wrote that talked about ‘kobba’, which conjures to my mind a ball of red yarn that has no beginning and no end, that gets tangled and that is impossible to restore if it comes undone. I translated it into a metaphor that triggers reflections and discourse about

relationships,” he explains. “Later, I came across a Japanese legend called ‘The red string of fate’, where, according to this myth, the gods tie an invisible red cord around the little fingers of every individual when they’re born, connecting them to someone else for life. Both concepts deal with red string, one unravels and the other brings people together, and thus the concept for Kobba came to be. The red string raised many questions for me relating to relationships: who are we related to? How are we related? Do we want to be related? I wanted the visual of the red string to trigger questions for others too.” The series of artworks shows figures captured in everyday scenarios, and running through them all is the red string, which Pawlu says is not always clear in its direction, or if it even connects the figures together. “Someone who visited the exhibition observed that although the series deals with connections, there’s a certain solitude in the images, which was interesting. As for the style, the works have a light, pop art feel, which contrasted with the concept I was dealing with.” Contrary to his previous exhibitions, Pawlu made Kobba a travelling project, hosting seven exhibitions at seven different locations. “I wanted this exhibition to be completely different to the previous one, so rather than wait for people to turn up, we took the work to the people instead, and set up the exhibition in spaces like pubs, restaurants and private residences.

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Kobba at Gleneagles in Mgarr, Gozo

The idea was borrowed from a project for Valletta2018, which centred on taking performing arts to the community,” he says. Pawlu’s artistic concept was discussed over several months with curator Simon Sultana Harkins, which is where the whole body of work was processed and came together as one new whole. The artist says that the process of preparing for this exhibition was forwardlooking, questioning what lies ahead, “very much to the contrary of Her Majesty, which was a cathartic process triggered by past experiences. Many positive elements came from this exhibition so far, especially the connections I made and the people I got to meet and know.” Prominent in most of his work is the

Kobba at Il-Baxa in Rabat

“Rather than wait for people to turn up, we took the work to the people instead, and set up the exhibition in spaces like pubs, restaurants and private residences.” female figure, a subject that Pawlu has kept central to his artistic language so far. “It is a metaphor through which artists have always spoken about their intimacy, their social lives, and their own lives. I’m following suit.” The works for Her Majesty highlighted these aspects, as related by the six artists, professors and researchers

Photo by Alan Carville

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who contributed to the publication ‘Her Majesty – Essays on Pawlu Mizzi’s Visual Art Exhibition’, published in 2015. “My installation works focus on more political themes, such as activism and social justice,” he added. With his current exhibition nearing its end, Pawlu says one of the greatest satisfactions of exhibiting his art is knowing that it affected and touched people in one way or other. “Of course, I won’t deny the satisfaction of having people buy your work, but the best reward is people’s feedback,” he says. “It’s also really interesting when other artists get inspired by your work; there was a woman who visited one of my exhibitions and got inspired to write a poem. Collaboration between artists is great, and we need more of it.” Looking ahead, Pawlu says he wishes to take his art beyond the island and into overseas communities. He also wishes to publish his writing next. “I’ve started working on some sketches for potential future works but I don’t know where this is heading yet. All I can say is that it feels different to Kobba.” cc Visit www.facebook.com/pawlumizziart for updates on the last instalments of Kobba. DECEMBER 2018/JANUARY 2019