COMMERCIAL COURIER

THE COMMERCIAL/87

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

DECEMBER 2019/JANUARY 2020

A refined experience Luxury in Gozo

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE MALTA IN 2020: MALTA CHAMBER MANAGEMENT BOARD SHARES FORECASTS, RESOLUTIONS AND OUTLOOK / TRACING DEVELOPMENTS IN THE MEDICAL CANNABIS MANUFACTURING INDUSTRY IN MALTA / THE BENEFITS and incentives tied to BUYING AN ELECTRIC CAR / A CHAT WITH VETERAN ARTIST PAWL CARBONARO / THE LATEST BUSINESS NEWS

THE COMMERCIAL/87

COURIER DECEMBER 2019/JANUARY 2020

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FOOD TRENDS

16 COVER STORY ALL EYES ON 2020 Malta Chamber Board members discuss what needs to be done to make 2020 another positive year for the Maltese economy.

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37 IN DEPTH

89 ENVIRONMENT

With an eye on 2020 as a pivotal year for the country, Director General Kevin J. Borg and President David Xuereb tell Martina Said what the organisation has in store.

SEEDING THE MEDICAL CANNABIS SECTOR

THE CASE FOR GOING ELECTRIC

Rebecca Anastasi seeks to discover whether the medical cannabis sector will water the burgeoning of a unique industry on the island.

Martina Said delves into the incentives, benefits and reasons for going electric.

33 IN FIGURES

80 MEET THE ARTIST

ECONOMIC INDICATORS PUBLISHED ON BUDGET DAY… IN NUMBERS

LIFE OF A MASTER

25 IN DEPTH DEFINING MALTA’S FUTURE AND PROSPERITY

A look into economic indicators within Malta’s Budget 2020.

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STYLE REVIEW

108 DESIGN TRENDS CREATING A UNIQUE CULINARY JOURNEY

Caroline Curmi visits celebrated art veteran Pawl Carbonaro to decipher the enigma behind his illustrious persona.

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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 month of December 2019/January 2020.

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

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

Sarah Micallef speaks with the team behind the design of Gozo’s Vini e Capricci, Francesca Miceli, Rosianne Schembri and Keith Schembri of Keiro Architects.

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

Kevin J. Borg Editorial Coordinators

Sarah Micallef Edward Bonello Publisher

Content House Ltd Mallia Building, 3, Level 2, Triq in-Negozju, Central Business District, Birkirkara CBD3010 Tel: +356 2132 0713 info@contenthouse.com.mt www.contenthouse.com.mt

DIRECTOR OF SALES & BUSINESS DEVELOPMENT

Matthew Spiteri CORPORATE SALES & BUSINESS DEVELOPMENT MANAGER

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ON THE COVER Detail shot from Vini e Capricci Photo by Hush Studios

Malta chamber’s bronze collaborating partners DECEMBER 2019/JANUARY 2020

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CHAMBER/87

EDITORIAL

Ethical business investing in tomorrow The Malta Chamber of Commerce, Enterprise and Industry has always championed the importance of the educational system because it holds the keys to the country’s future economic success. Not only would future generations benefit from a strong education system, but it would also prove advantageous to the country’s economy and business sector in general.

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he Chamber has been vociferous on education being given a central focus in the country’s efforts to continue strengthening and protecting its economic stability. For the past years, the Chamber has stated the importance of investing in today’s generation to meet future business and industry needs. This includes determining the skill sets required for future workers and creating adequate training programmes to equip today’s generation with such skills.

For this reason, the Chamber has always been in direct contact with the University of Malta and the Malta College of Arts, Science and Technology (MCAST), and has collaborated with these institutions, and

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others, in supporting various projects and initiatives. Recently, the Chamber supported MCAST in launching the project ‘Achieving vocational excellence through enhanced work-based learning’, aimed at consolidating MCAST structures in the context of apprenticeship and work-based learning.

The Chamber is four-square behind this initiative because it strongly believes that apprenticeship programmes are an effective tool to improve the skill set of young people.

Addressing the launch, Chamber President David Xuereb said that the Chamber believes that such projects are fundamental in improving the employment opportunities of school leavers and those pursuing vocational

studies, while they further reduce the skills gap that prevails in Malta. In addition, the Chamber is a firm believer in job exposure at various stages of the educational system as it supports work-based learning activities such as internships, apprenticeships and work placements.

The Chamber also took part in a conference on skills and education organised by the Ministry for Education and Employment.

Chamber Deputy President Marisa Xuereb gave a detailed explanation of what the Chamber and businesses are doing to bridge the gap between industry and academia, and elaborated on the need to solve our chronic problem in sourcing skilled employees.

DECEMBER 2019/JANUARY 2020

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EDITORIAL Young Enterprise project, for a number of years because it always believed that such projects complement the Chamber’s vision that young people should be inculcated with an entrepreneurial culture from a young age.

The Chamber considers teachers and educators to be one of the most crucial factors behind the success of the academic sector. For this reason, apart from focusing on student training and educational programmes, the Chamber also gives attention to these educators through projects, such as the GO4Industry teacher internship programme, which is aimed at exposing teachers of science subjects in secondary schools to the opportunities and technologies in Malta's private sector. In turn, the programme helps teachers become more knowledgeable and better positioned to guide their students towards their future careers.

The second edition of GO4Industry was held this year, during which Ms Xuereb spoke about the key role of teachers when facing challenges in the science, technology, engineering and mathematics (STEM) areas.

The influence of teachers on their students is considerable given the inspirational role teachers can have in young people’s lives. Society in general and the business community rely on these teachers to pass on the insight they gain through their experiences in industry to their students.

These interactions are essential to eradicate misconceptions and educate everyone on the exciting opportunities in Malta’s industry today.

The Chamber’s commitment towards education, however, doesn’t limit itself to the open support of institutions behind

this crucial area. In its pre-Budget proposals document, the Chamber put forward some considerations on education matters, which could prove beneficial for all areas of the economy. Suggestions included a forward-looking educational system that starts preparing our students for the jobs of tomorrow, which will become less labour intensive and more technology oriented.

The document also provided certain ideas through which the private sector could be directly involved in assisting the government create and execute educational projects. These included work-based learning opportunities, for both students and teachers, economic development sessions for guidance teachers and advisors, forecasting skills by investing heavily in new applications and tools, as well as involving the private sector in the drafting of secondary and postsecondary curricula.

The Chamber reiterated that an education reform had to take place at primary and secondary levels, focusing on developing soft and technical skills for the future, giving examples of countries like Singapore and Finland, which already adopt a very different educational approach. Another suggestion was that of utilising the stipends system to attract more students to certain career paths that are needed by certain segments of the economy.

Throughout the year, the Chamber has promoted the belief that ‘education is a shared responsibility’. It is up to public institutions and the private sector to work hand-in-hand in achieving an efficient and fruitful educational system. If this is done in a careful and competent manner, the island can thrive thanks to the long-lasting effects of strong academic and economic sectors. cc

The Chamber strongly believes that apprenticeship programmes are an effective tool to improve the skill set of young people.

Another initiative taken by the Chamber, together with Malta Enterprise, was the media campaign ‘Make it’, earlier this year.

It was aimed at promoting careers in Malta’s manufacturing sector among secondary and post-secondary students and their parents, as well as offering work-based learning opportunities to Form 3 and Form 4 students within the business community.

This year, the Chamber also hosted and participated in the annual JAYE Malta programme ‘Leaders for a day’, with Chamber Director General Kevin J. Borg being shadowed throughout the day by a participating student. The Chamber has backed such programmes, including JAYE’s DECEMBER 2019/JANUARY 2020

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CC COVER STORY

All eyes on 2020 While the Maltese economy is highly diversified and has sound macroeconomic underpinnings, there are challenges afoot. Here, five members of the Board of Management of the Malta Chamber of Commerce, Enterprise and Industry consider the changes we are going to have to make if we want to safeguard both the island’s business interests and its environment.

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DECEMBER 2019/JANUARY 2020

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David Xuereb, President “We must develop new and disruptive economic streams, increase environmental awareness, promote sustainable and smart business, and, above all, restore our reputation.”

Photos by Justin Mamo

“In 2020, Malta’s economic growth is expected to continue but at a slower rate,” Perit Xuereb notes, adding that sustainable and smart economic growth should be prioritised. “Our main challenge is ensuring that Maltese business isn’t overshadowed by international competition. But there’s no escaping the fact that we are facing limited resources and ever-increasing costs of employment.”

Perit Xuereb is also cognisant of Malta’s position on the global stage, elucidating that fast-changing global trends will inevitably impact the country. “A case in point is Brexit, the effects of which are yet to be understood but expectations aren’t encouraging. We must remain vigilant to react and proactively adapt.”

Acclimation will also be an indispensable trait in upcoming years when big data and artificial intelligence (AI) are set to change

DECEMBER 2019/JANUARY 2020

lives dramatically. “AI, 3D printing, quantum physics and the early regulation of disruptive industries will take centre stage, which is why I want Malta to become a centre of excellence in education, research and innovation across all segments. We must bridge the gap between our education system and the ever-changing market needs to meet the requirements of future industries.”

On Malta’s objective of reaching carbon neutrality by 2050, Perit Xuereb says: “This is a step in the right direction and should motivate entrepreneurs to work towards securing sustainability in our economy. But a lot needs to be done, and we’re still awaiting tangible policies and legislation. I’d like all companies to increase their sustainability practices and lead profitable, green businesses because this could take Malta to the next level.”

In this regard, the question of the Chamber’s position is paramount. “The Chamber is evolving to assure maximum relevance in the current socio-economic-environmental landscape,” Perit Xuereb remarks. “We are currently drafting the 2020–2025 Economic Vision for Malta together with top players in Maltese industry and, once complete, the Vision’s recommendations will be presented to Government and related entities to drive momentum towards achieving objectives.”

“I’d like all companies to increase their sustainability practices and lead profitable, green businesses because this could take Malta to the next level.”

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Marisa Xuereb, Deputy President “Remaining competitive on the international stage will be the biggest challenge for Malta in 2020.”

Malta’s rising labour costs in tourism, manufacturing, gaming and financial services are stress-testing long-established companies, Ms Xuereb says. “The cost-value relationship is strained, so maintaining and improving product quality is imperative to withstanding the higher cost base.”

“We’re entering a period of ‘clean-up’, in which we must address construction sites that have invaded residential and touristic areas on the one hand, and the repercussions of deficits in institutional and corporate governance that have tarnished our reputation internationally on the other.”

Ms Xuereb is closely following what is happening beyond Malta’s shores. “Brexit’s impact on business is, as yet, unclear, while the US-China dispute remains worrisome.

Locally, though, the necessary shift in real estate seems imminent, and foreign workers will still be needed to meet labour demands.”

“That said, the costs of high labour turnover are eating into margins, so we should see a reduction in headcount and concerted use of technology to streamline operations. I hope education and industry requirements align, particularly vis-à-vis new economic activities, such as blockchain and AI, which will continue to gain traction.”

“As one of the first to establish a regulatory framework, Malta is on the blockchain map but it’s early days and risky.

Blockchain leaders will be those who lead the use of blockchain technology for smart contracts, banking transactions and data sharing, and this all requires more time to develop.”

Ms Xuereb also argues that Malta must invest adequately in infrastructure and sophisticated technologies that support innovative businesses. “We can make a quantum leap by establishing a research and development (R&D) ecosystem and attracting talent that spurs marketable innovation.”

“Long-term prosperity, however, depends on sustainability, and companies are increasingly talking about rebalancing the economy, the environmental impact of economic activities, and the effects on quality of life. I’d like to see more incentives that encourage impactful corporate social responsibility (CSR) activities.”

In her final thoughts on 2020, Ms Xuereb adds: “Cross-sectorial communication is crucial. The Chamber unites the business community in Malta and anticipates impacts to help mitigate adversities and maximise opportunities. Whatever the economic circumstances, the Chamber’s role is unremitting, and that will be invaluable in 2020.”

DECEMBER 2019/JANUARY 2020

“I hope education and industry requirements align, particularly visà-vis new economic activities, such as blockchain and AI, which will continue to gain traction.”

Hugh Arrigo, Vice President “We have to be smart enough to capture the right opportunities, yet astute enough to balance caution with bold action.”

“In Europe, all eyes are on Brexit as we enter 2020. Brexit will impact the entire EU as the UK’s contributions to the EU equal those of the 19 smaller member states. In other words, the EU isn’t simply reducing from 28 to 27 members; it’s losing a major player.”

“As a country, remaining in our comfort zone will do us no favours,” Mr Arrigo points out. As a founding Council member of the Maltese-Chinese Chamber of Commerce he knows the importance of seeking new international opportunities. “I want to see connections between Malta and Germany and Asia being strengthened. Our generation is the product of Germany but our children will be the product of China and we should face this reality with open arms.”

“Germany has long supported Malta;

it was even instrumental in getting us into the EU. Enhancing our relationship will open doors in 2020 and beyond. Likewise, China is a force to be reckoned with, and it will become the superpower of superpowers. We must consolidate our relationship with China to capture Chinese business reaching Europe and the Sub-Sahara via China’s One Belt and One Road global development strategy.”

“We are in a unique, strategic position in terms of geography and language abilities, and we can be an additional door opener for both Germany and China in Sub-Saharan Africa. Ryanair’s transit hub in Malta is a prime example of what we can offer major global players.”

However, Mr Arrigo advises caution in emerging industries. “We have done well to promote industries related to modern technology, such as blockchain and AI, for example, but there are disadvantages. Being in pole position doesn’t necessarily mean that we’ll emerge as the winner. Others will copy us and, when they do, they’ll improve and correct what we’ve done.”

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CC COVER STORY Before anything else, however, Mr Arrigo believes that any kind of long-term prosperity depends on Malta restoring its damaged reputation. “Our performance rating has dropped, and our credibility is at stake. If our reputational shortcomings aren’t addressed, if institutions flout the law and if enforcement continues to be lacking, our opportunities and international relations will be severely at risk.”

“Our generation is the product of Germany but our children will be the product of China and we should face this reality with open arms.”

Liz Barbaro Sant, Officer “For sustainable success, a country must look ahead to where it wants to be in 10 to 50 years’ time.”

As a member of the Chamber’s Board of Management, Director of Trade Malta and Secretary of the Maltese-Libya Chamber of Commerce, Ms Barbaro Sant is attuned to the economic, social and cultural transformations that have occurred in Malta over recent years.

“Malta has witnessed exceptional growth,” she notes, “but this has also triggered major infrastructural and social struggles including a tightening of the labour market and unrealised productivity potential. To sustain

competitiveness, Malta needs to solve these problems and revisit planning strategies to ensure we can serve future generations.”

Reasserting views that Malta lacks longterm vision, Ms Barbaro Sant explains: “Only with a far-reaching vision can Malta pave a path towards this imagined, successful city-state. We must fix today’s troubles without damaging our strategy for future prosperity.”

“I believe that investing in R&D is an investment in our own future. To truly become a knowledge-based economy that thrives on innovation and enterprise, we must first develop that knowledge base by attracting and developing talent. Only then can we build the future we envision.”

Malta’s future, however, is also dependent on proactively tackling sustainability.

“Some companies understand that, besides intertwining business growth with social change, they must effectively facilitate the true integration of sustainability into their culture and ethos. But all companies have a responsibility to contribute to solutions and to foster an approach to CSR that takes more than simply writing a cheque.”

As she considers what 2020 has in store, Ms Barbaro Sant declares: “I’d like to see more productive discussions about long-term development. We must prioritise Malta’s strategic objectives and coordinate with Government and stakeholders to fully realise the country’s economic potential.”

“In this context, we should consider the three emerging markets in which Malta is positioning itself as a potential leader: blockchain, AI, and medicinal cannabis.

The country’s decision to invest in these areas will put it in a competitive and leading position for years to come.”

Andrew W.J. Mamo, Officer “Overlooking our traditional sectors because of the ‘new kids on the block’ is a grave mistake.”

Along with Malta’s economic growth have come unprecedented opportunities.

“Consumers have more purchasing power, encouraging companies to become more innovative and promoting competition,” Mr Mamo says. “Government is also offering funds to companies to enable them to compete within the growing EU market.”

“Having said that, challenges have also emerged. Across the board, business and residential costs have soared. The cost of real estate – both residential and commercial – has risen exponentially, partly due to the gaming industry. We’re also experiencing heightened labour costs as employees expect higher wages, and labour shortages are compounding the problem.”

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DECEMBER 2019/JANUARY 2020

CC COVER STORY

“We must prioritise Malta’s strategic objectives and coordinate with Government and stakeholders to fully realise the country’s economic potential.”

“At the same time, I’m also seeing companies investing in products and services with a lower carbon footprint, which is important because climate change is – and should be – on everyone’s agenda. With consumers demanding greener products, companies are being left with no choice but to supply them.”

“The Chamber itself is committed to nurturing sustainable practices and advocating the long-term benefits of policies for sustainability,” Mr Mamo concludes.

“We’re evolving with the times, which is essential for us to remain relevant to our members and attractive to new sectors.” cc

Unquestionably, problems are rife but “Malta’s economy has been succeeding and progressing thanks to the services industries, primarily tourism, financial and professional services, real estate and gaming,” Mr Mamo points out. And although there may be some slight corrections in 2020, he does not see these segments slowing down soon.

“Following the proliferation of interest in blockchain in Malta, we need to invest in AI. This could assist upscaling efforts across segments. In particular, we’ll be seeing new opportunities emerge in finance and technology, as Malta is on the verge of delving into new industries, such as FinTech.”

Thinking ahead, however, Mr Mamo maintains: “We must remain mindful of our ‘traditional’ sectors – manufacturing, retail, wholesale and importation, and tourism – because they’ve sustained the economy for many years.” He advises assisting ‘traditional’ sectors in their efforts to upscale and adopt disruptive technologies to remain competitive in the long term.

“We must remain mindful of our ‘traditional’ sectors – manufacturing, retail, wholesale and importation, and tourism – because they’ve sustained the economy for many years.”

DECEMBER 2019/JANUARY 2020

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CC IN DEPTH

Defining Malta’s future and prosperity The best interests of local businesses are at the heart of every move the Malta Chamber of Commerce, Enterprise and Industry sets out to make. With an eye on 2020 as a pivotal year for the country, Director General Kevin J. Borg and President David Xuereb tell Martina Said what the organisation has in store.

Photo by Daryl Cauchi

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or four consecutive years, Malta’s economy has grown steadily and surely, registering exceptional growth rates, year-on-year fiscal surpluses and near-full employment. But what will 2020 hold? Taking a look back at the economic buoyancy of 2019, the Malta Chamber of Commerce, Enterprise and Industry says that its members reported encouraging trends, “mainly across the DECEMBER 2019/JANUARY 2020

board, which resulted in a widespread feeling of economic well-being.”

However, such prosperity doesn’t come without its challenges. Kevin J. Borg, Director General at the Malta Chamber, says that “as a Chamber, we have already warned of forecasts that appear to point towards relatively slower rates of economic growth in the years to come.

Lower expansion rates could be caused

by higher rates of inflation, which, in turn, could be explained by wage pressures brought about by the situation of acute labour shortages experienced over the past years. Besides higher salaries, employers are also experiencing growing employment costs due to the increasing number of holidays and work flexibility arrangements that are being imposed or introduced.”

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CC IN DEPTH

Photo by Justin Mamo

Referring to the Chamber’s own internal studies, Mr Borg asserts that employment remained a major challenge in 2019, “and everything is showing that it will still be the case in 2020.” The Director General adds that, according to Jobsplus, the country is generating 10,000 jobs a year, of which only 2,000 are being filled by locals. “We need to become increasingly creative on how to attract the right people to fill these jobs if 26

we wish to maintain the rates of economic growth we have grown accustomed to.”

In view of the optimistic economic environment Malta finds itself in and the challenges that come with it, it was revealed by the World Economic Forum last October that Malta slipped two places in the Global Competitive Index, which raised concerns among the business community, particularly the Malta Chamber.

“Malta could not afford to erode its inherent competitive advantage ingredients further and delay addressing these fundamental aspects of competitiveness in the interest of preserving our current success.”

– Kevin J. Borg, Director General, Malta Chamber DECEMBER 2019/JANUARY 2020

CC IN DEPTH

“When news of this broke, the Malta Chamber called on Government to prioritise Malta’s competitiveness when compared with other competing countries. This is possibly the most important subject, which the Chamber holds in highest regard – the be-all-and-end-all of all economic discourse, and which we are most vociferous about,” Mr Borg says.

The Chamber asked Government to take all actions possible to enhance the country’s attractiveness for investors, namely by addressing the country’s soundness of institutions, skills, market structure and financial systems.

“We explained how Malta could not afford to erode its inherent competitive advantage ingredients further and delay DECEMBER 2019/JANUARY 2020

addressing these fundamental aspects of competitiveness, in the interest of preserving our current success,” he explains.

“International institutions and investors are watching, measuring and sending warning signals of their own, and we cannot continue to pretend it is business as usual.”

The issue of Malta’s competitiveness also comes into play when discussing the 2020 Budget laid out by Government last October, which Mr Borg notes did not contain any unwelcome surprises for businesses. “In a way, it guaranteed an element of positive certainty for our business community at a time when they are busy wrapping up the year, getting ready for the next and, in most cases, gearing up for a hopefully busy Christmas period.”

“Heritage for the Chamber is not a burden that slows it down but a forward-propelling force towards a brighter future.”

– David Xuereb, President, Malta Chamber

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CC IN DEPTH However, this alone is not enough, and Mr Borg asserts that the Chamber feels little was proposed to encourage entrepreneurs to develop and grow, particularly when bearing in mind the new and disruptive industries expected to form the country’s vision for the forthcoming years.

“We feel that Government could have been more courageous in incentivising the growth of the economy the country plans to have tomorrow. One of our main proposals for the Budget was that Government should start giving stronger priority to research, technological development and innovation (RTDI), and look at improving Malta’s current bottomof-the-table standing in this field,” the Director General points out.

He adds that the Chamber proposed serious and tangible investment in this area, which it feels is one of the main, credible solutions to ascertain a level of long-term competitiveness on the global market. “Malta’s economy has developed over the years but we cannot expect to attract investment solely on our pricecompetitiveness,” Mr Borg remarks. “We need to attract higher value-added sectors and this should be supported through investment in product and/or process innovation via RTDI and the associated infrastructure.”

Shifting focus onto the Chamber’s efforts and accomplishments the past year, its President, David Xuereb, who was appointed last March, says his presidency so far “has truly been a ride and a half!”

He says that “becoming President meant that I had to quickly take over the reins of a fast-moving coach, and while presidents certainly bring with them their own style of leadership, I was busy settling into some rather large shoes that I am eager to fill for the benefit of our members.”

Together with the Council he leads, the President kicked off a number of mammoth projects that are underway and “which will change the face of the organisation.” At the forefront of them all is the introduction of a new and ambitious business plan for the Chamber, which will start being implemented in 2020.

“As part of this process, we have restructured internally to be better able to deliver our mission and service to our members. The Chamber has been in existence since 1848 and has remained at the top of the game throughout its lifetime.

This time, we are seeking to extend our relevance to the next generation of Malta’s entrepreneurs,” Perit Xuereb says.

He adds that past transformations of the Chamber brought with them their fair amount of challenges, surmounted by the entrepreneurial spirit of the organisation that is built by business for business. “This 30

“The Chamber has been in existence since 1848 and has remained at the top of the game throughout its lifetime. This time, we are seeking to extend our relevance to the next generation of Malta’s entrepreneurs.”– David Xuereb, President, Malta Chamber

time around, I am equally certain that our fearless drive for change will ensure value and relevance to businesses for years to come. Heritage for the Chamber is not a burden that slows it down but a forwardpropelling force towards a brighter future. To this end, we are upgrading and modernising our organisational structure, our statute, our building, our digital assets and our branding.”

The Young Chamber Network (YCN) is indeed a part of this process. Launched last July, the aim of the initiative is to bring together young entrepreneurs in a unique business networking environment. Through the Network, Perit Xuereb says the Chamber wants to be closer to the leaders of tomorrow and understand what their ambitions are.

“Business does not discriminate by age or background. We have all heard stories of amazing businesses that started with a brilliant idea in someone’s mum’s garage.

This democratisation of business has brought about the most fantastic, aweinspiring stories, which, in turn, are reflected in unprecedented economic growth,” the President remarks. “The Chamber wants to be the natural home for these businesses too. The YCN is proving to be the ideal space for young entrepreneurs to share ideas and grow.”

The YCN is working to bring on board the country’s foremost young business leaders below the age of 45 to actively participate and become protagonists in the life of the Chamber, and to meet like-minded, high-powered individuals and share their experiences in a business environment.

Members gain access to exclusive networking events, inspirational talks by world-class speakers in a variety of relevant fields, and an opportunity to form an active part of the country’s leading business organisation.

Bigger still is the Chamber’s plan to launch its second Economic Vision for Malta, covering the period 2020-2025.

With the contribution of 28 of the country’s

foremost CEOs, the Malta Chamber is in the final stages of designing a blueprint for the island’s economic ambitions for the next five years, “a vision that looks beyond the ideas of old but proposes a vision for a modern 21st century Malta.”

Perit Xuereb notes that the Chamber recognises Malta is at a crossroads and the decisions made now will define Malta’s future over the coming 20 years. “For this, we felt the need to take a proactive role and clearly state where business sees the country going in the coming years.”

“It is the Chamber’s judgement that the fast-moving global, regional, and local challenges, coupled with the rapid changing landscape of disruptive technologies and innovation make this a most challenging and exciting time in which we must decisively lay the foundations or build on existing policies that will determine Malta’s further economic growth and social well-being.”

The Economic Vision is expected to be made public in early 2020 as details of the document will be released in the coming weeks. Perit Xuereb adds that the Economic Vision “will tie into our new business plan as it will become a central feature in the Chamber’s value proposition to members, encouraging them to grow by internationalising, connecting, digitalising and reducing their carbon footprint.”

The Chamber President believes that 2020 will be a pivotal year for Malta, and the right choices will enable the country to evolve in line with a fast-changing world. It is also expected to be an exciting year for the Chamber, with several major projects in the pipeline.

“The most important goal for the Chamber in the next 12 months is to remain relevant to Maltese businesses and continue giving its members a value-added experience through their membership. We are only too excited to continue to be by our members’ side as their trusted business partners.” cc DECEMBER 2019/JANUARY 2020

CCCC COVER CCIN in INTERVIEW BUSINESS FIGURES figures STORY

IN FIGURES: Economic Indicators published on Budget day explained in numbers

€2.6m

4.7%

The growth rate of Malta’s economy in the first six months of 2019.

45.8%

The value of growth in compensation received by employees during the first six months of 2019.

Public debt denoted as a percentage of Malta’s GDP.

14.2%

The increase in investment in the first six months of 2019, a major contributor to the overall growth rate during this period.

5.7%

1.6%

The overall increase in wages and salaries during the first six months of 2019.

The projected rate of inflation for 2019.

4.5%

The increase in private consumption during the first six months of 2019.

7.6%

7.5%

The increase in company profits during the first six months of 2019.

The percentage of gross value added recorded in the first six months of 2019, denoting the output of Malta less consumption of goods and services.

The value at which Malta’s GDP has increased in nominal terms between 2013 and 2019.

Source: All figures were sourced from the 2020 Budget document.

The projected employment growth rate of 2019.

Source: Gozo In Figures, National Statistics Office, Malta

€7bn

4.1%

Source: Malta International Airport DECEMBER 2019/JANUARY 2020

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CC FINANCE

Onwards and upwards through volatile markets Following a busy year filled with geopolitical and economic uncertainty, navigating the financial markets requires foresight and experience. Jesmond Mizzi, Managing Director at Jesmond Mizzi Financial Advisors Ltd, opens up to Helena Grech about the challenges 2019 brought, as well as his view on the road ahead.

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Photos by Inigo Taylor

n a year that saw the US and China impose tariffs worth billions of dollars against each other, the Brexit vote delayed three times and global geopolitical tensions unfold, one could be forgiven for thinking that investors experienced a turbulent year in the financial markets.

Managing Director of Jesmond Financial Advisors Ltd – a company that offers investment and wealth management services to both private and institutional clients – Jesmond Mizzi, sheds light on how the volatility experienced actually led to clients having a positive year as it brought about opportunities amid the challenges.

On the local markets front, he remarks that the Malta Stock Exchange had a positive year, “particularly on the equity side but also on the bond market side,” in line with general global trends.

“The local investor is still very focused on new issues to the market. As is typical for Malta, only a few equity issues were brought to market, whereas more issues were launched on the corporate bond side, which are very popular with the Maltese investor.”

Zooming out on the global picture, Mr Mizzi recalls the final quarter of 2018, when the markets had turned negative.

“We were expecting interest rates to go up, particularly in the US, which caused havoc in the markets and caused a big shift downwards.”

As 2019 began, Mr Mizzi explains there was a shift in the expectation of where interest rates were going to move. “It has been a year during which we saw the US Federal Reserve push down interest rates. The US is led by a very forceful President who is either influencing the Federal Reserve directly or is making other decisions that will influence it anyway, such as through the trade war with China.”

He stresses that this has been the most fervently discussed financial news item throughout the year and that President Donald Trump’s decision to “take action” against China in the form of tariffs left the Federal Reserve no option but to shift its position on the lowering of interest rates.

“Rightly or wrongly, the markets were happy about it. However, the cautious investor who is leaving money in the bank is being squeezed, as interest rates will remain low for the foreseeable future.”

He highlights that “people who thought this year would be a bad one due to various factors, obviously lost money. If you left

Photos by Inigo Taylor

“Because we are strong believers in the fund business, we also have access to third-party funds and that provides peace of mind to underlying investors that they can rely on us to select bonds and equities, as well as third-party funds.”

DECEMBER 2019/JANUARY 2020

CC FINANCE your money in a bank account and delayed your investment decision, you clearly lost a good year.”

Reviewing the effect of international events closer to home, Mr Mizzi showcases his firm’s ability to plan ahead and provide a measured approach to uncertain developments. He observes that the several Brexit delays over the year and the looming UK general election “play into the investors’ hands”. He says that “by and large, notwithstanding this uncertainty, markets were still up.”

As the first Brexit deadline approached in March, the company launched a Sterling Hedged Share Class of the Merill High Income Fund which aims to allow investors who are long Sterling to diversify their portfolio by investing in a fund with a wider sectorial and geographical exposure.

“This is how we manage our business in a dynamic way to actively provide the opportunity for further diversification on an international level,” said Mr Mizzi.

Mr Mizzi believes that 2019 will act as “a good base to move forward for another challenging year, especially within the regulatory aspect.” He laments that the situation is constantly changing, however, concedes that higher demand from regulators forces businesses such as his to remain effective and provide a good quality of service, to both current and new clients.

He adds that a focus on technology and the business model in general will serve to maintain and improve efficiency.

Asked about challenges for investors, Mr Mizzi says that the most difficult aspect is how to administer funds, particularly in relation to smaller clients. “The compliance work needed today to retain a client are significant, both in terms of anti-money laundering (AML) and the Markets in Financial Instruments Directive (MiFID).

In this regard, we are moving towards the direction of giving investors the possibility to buy investments online and consolidate their holdings.”

He observes that Maltese investors have a tendency of using a few firms, maybe four or five, to carry out their business with. “I think this will have to change and investors will have to choose one company in order for the work to be viable for both the investor and the financial advisor.”

Moving onto funds being managed by his firm, Mr Mizzi speaks about the past three years during which the company’s Merill funds “witnessed steady growth with total assets under management now reaching close to €115 million.” He explains that the first sub-fund launched, the Merill Total Return Income Fund, had a specific mandate for a specific institutional investor.

“The aim was to have 70 per cent invested in bonds, 30 per cent in equity and no parameter on where the fund should be invested, whether locally or overseas.

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“The Maltese are changing their thinking to be more in line with trends overseas and are looking for further guidance from their financial advisors on how to manage family wealth and plan for succession.”

On the bond side of the investment, with the exception of 15 per cent, which can be invested locally where bonds have no rating, the remaining percentage is always invested overseas in investment grade bonds.”

He explains that for both bond and equity investments, the financial advisors can invest up to 35 per cent in third-party funds. “Because we are strong believers in the fund business, we also have access to third-party funds and that provides peace of mind to underlying investors that they can rely on us to select bonds and equities, as well as third-party funds, which have the same aim of what we are looking for in a particular period in time. Clients are effectively gaining the experience of Jesmond Mizzi Financial Advisors but also have exposure to very large funds managed by international companies of high repute.”

Mr Mizzi proudly remarks that the Total Return Income Fund today has a four-star rating by Morningstar, “it has surpassed the three-year mark and is performing very well.” He goes on to discuss the launch of two funds in 2017: the Merill High Income Fund and the Merill Global Equity Income Fund. “We knew the high-income fund would attract most business as the Maltese tend to focus on income, so many invest in bonds.” He adds that, in this regard, the company tries to adapt and change the mindset of investors by investing 85 per cent in bonds and 15 per cent in equities.

“We believe that all portfolios should contain equities,” he says. He observes that balance is achieved by investing in a combination of slightly riskier bonds as well as investment grade ones, adding that, in this way, the value of the fund remains as stable as possible.

Just a few weeks ago, Merill SICAV launched the Merill Strategic Balanced Fund. Mr Mizzi highlights that it is a different type of investment, predominantly in direct bonds and equities. “It will be more balanced, with no specific targets in mind but will have a larger proportion of bond investment than shares. It is a US dollar denomination, and we kicked off with $10 million, having now reached $15 million within a month. We believe this could be another way for local investors to diversify between Euro, Sterling and Dollar.”

In addition to fund management, Mr Mizzi shares his approach when developing different aspects of the business, from managing family wealth to institutional clients. Homing in on family wealth, Mr

Mizzi observes that the Maltese are changing their thinking to be more in line with trends overseas and are looking for further guidance from their financial advisors on how to manage family wealth and plan for succession.

For corporate clients, Jesmond Mizzi Financial Advisors have overseen two large bond issues in 2019: Bank of Valletta plc and MeDirect Bank plc. Mr Mizzi remarks that the firm continues to be in contact with existing and new corporate clients and institutions on taking businesses to market. In addition, with the wealth of family businesses in Malta, Mr Mizzi takes pride in assisting such entities on how to restructure their business when the time is right. cc

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Seeding the medical cannabis sector Last year, Maltese Parliament passed legislation permitting the production of cannabis for medicinal and research purposes, which, together with amendments to the Drug Dependence Act, seemed to herald in a new business sector, and slacken traditional attitudes towards pain relief. But, will the medical cannabis sector really act as a panacea and water the burgeoning of a unique industry on the island? Rebecca Anastasi speaks to stakeholders to find out.

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uch has been made in recent years of Malta’s buoyant economy, with many praising the island’s legislative environment for enabling the establishment and rise of the iGaming sector; the strengthening of the financial services industry; and the fomenting of a possible future in blockchain.

And, in the urge to keep the momentum DECEMBER 2019/JANUARY 2020

moving, the authorities, last year, enacted the Production of Cannabis for Medicinal and Research Purposes Act, regulating – and allowing for – the production of medical cannabis, and opening the doors to further research in the area. The hope was – and remains – that the regulatory framework will attract foreign firms to establish roots on the island, employ local staff and push exports out to pump more

revenue into the island. Moreover, prior to this – also in 2018 and laying the groundwork for what was to come – the Drug Dependence Act (Treatment not Imprisonment) had been amended to allow doctors to prescribe medicinal preparations of cannabis to patients in Malta.

Together, these legislative changes seem to be an attempt to further bolster the island’s economy.

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CC IN DEPTH Indeed, the Minister for the Economy, Investment and Small Business, Chris Cardona, has recently claimed that exports of medical cannabis “will reach €1 billion by the industry’s third year of local operations,” as reported on local media, while also asserting that it would only take three years for Malta to start shipping the products out of the island, with the Hal Far industrial estate set to serve as a hub for the sector.

Moreover, within the health sector, Health Minister Chris Fearne has also praised recent developments, while also stating that over 400 patients are already using

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medical cannabis in Malta, though he did acknowledge that the industry still faces an uphill trajectory to fully realise its potential.

In addition, it seems that international players in the sector are also preparing to rally their forces: just this November, the second Medical Cannabis World Forum was organised, bringing together business leaders in the sector as well as policymakers for a three-day conference in Malta, while the first Malta Medical Cannabiz Summit – earlier in the same month – attracted around 1,500 attendees from all four corners of the globe.

“Projects are evaluated using three main criteria: financial viability of the project; due diligence on the shareholders; and the provision of sectorial experiences incorporated in the shareholding structure.”

- Marion Zammit, Head of the Medical Cannabis Cluster, Malta Enterprise

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“Medicinal cannabis should not be considered first-line therapy.”

- Malta Medicines Authority

The Malta Medicines Authority (MMA) has a central part to play in this. In conjunction with the Superintendence of Public Health, the entity regulates cannabis for medicinal and research purposes through the established Advanced Scientific Initiatives Directorate. And indeed, the legislation also authorises the MMA to review and monitor “relevant operations within premises” and decrees that it shall “have the right at all reasonable times to enter and inspect any premises.”

In comments to this publication, an MMA spokesperson underlined the prudent and thorough approach to be taken in the manufacture of such products, which will occur under Good Manufacturing Practice (GMP), among other provisions. “The requirements laid down in the guidelines issued by the Authority for this industry reflect the recognised pillars of good practices and quality standards. Proposals for local manufacture are evaluated in line with the national laws and international obligations, including comprehensive requirements related to GMP certification, responsible personnel, analytical consistency, security measures and reporting responsibilities.”

This careful approach is being extended to the dispensation of medical cannabis products. Indeed, the spokesperson notes that while “four products of the required quality were introduced in local pharmacies and are used by a number of patients, medicinal cannabis should not be considered first-line therapy,” and “it is important to understand the precautions necessary to ensure patient health and safety.” In this regard, the Authority also stresses that “as is standard good practice, it is wise for patients to consult their family doctor about their perceived needs for the use of cannabis products.”

The regulatory function of the MMA within this sector has also pushed the Authority to recruit, the spokesperson goes on to explain, saying that the entity “has expanded human resources, invested in capacity building, and engaged experts to manage this dynamic field, marked by evolving policies and continuous change.” Moreover, the MMA has increased its outreach to ensure that the correct information is distributed.

“Guidance was issued to stakeholders and educational activities unfolded alongside the implementation of the regulatory framework,” the MMA says.

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To this end, training initiatives have also been hosted through the MMA’s Academy.

By way of example, the spokesperson cites a networking meeting – Implications of Cannabis for Medicinal Purposes: The Role of Cannabidiol in the Treatment of Neuropsychiatric Disorders – held this October; and a seminar – Regulatory Sciences, As Applied To Cannabis for Medicinal and Research Purpose – held earlier on, in May. Concurrently, Malta Enterprise – responsible for issuing letters of intent (LOIs)

to firms wishing to invest in the sector in Malta – announced that 24 medical cannabis companies, out of 50 applicants, hold the required documentation, with six at an advanced stage. In response to questions asking for more details on the criteria of evaluation, Marion Zammit, the entity’s Head of the Medical Cannabis Cluster, says that “projects are evaluated using three main criteria: financial viability of the project; due diligence on the shareholders; and the provision of sectorial experiences incorporated in the shareholding structure.”

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“The sector is expected to produce more than “950 full-time jobs” over a five-year period.”- Marion Zammit, Head of the Medical Cannabis Cluster, Malta Enterprise Indeed, she notes that the rejected projects were refused “on the basis of these three criteria.”

Those which have been issued with an LOI originate from “all over the globe”, she underlines, specifying Canada, Israel, Europe and Australia as examples. Some of these firms have been identified by local media and include Australian firm MGC Pharmaceuticals, which, it has been reported, will be investing €11 million to construct a ‘state-of-the-art’ medical cannabis facility in Hal Far; and Supreme Cannabis, a Canadian publicly traded company which aims to extend its portfolio to Malta.

Ms Zammit goes on to explain that Malta Enterprise is confident that the first licenses for such companies will be issued before the end of this year, with the exports kicking off “before end of the first quarter 2020”.

Furthermore, the sector is expected to produce more than “950 full-time jobs” over

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a five-year period, she underlines.

The advantages for these firms seeking to operate from Malta are several, Ms Zammit states. They can benefit from the “existing expertise in pharma and a solid life sciences sector; an enabling and forwardlooking regulatory framework; a robust and growing economy; a clear vision for the medical cannabis ecosystem; and a clear and transparent application process.”

Yet, such firms still need to contend with hurdles which stand in their way. “Rather than disadvantages we should speak of challenges,” Ms Zammit is quick to point out.

“It is a nascent industry and it is expected to have some teething challenges until the wheels are in full motion. Nonetheless, Malta Enterprise is a strategic partner to all operators ensuring that challenges are overcome together and in the best way possible,” she explains.

To this end, one of the ways in which

Malta Enterprise is attempting to aid these companies is by helping them find a site to set up a lap and a clean room, as prescribed in the regulations. “Government industrial land is being allocated through our sister company MIP. Operators can also procure or lease premises on the private market provided they fit in our regulatory framework,” she asserts. She also affirms that ME is aiding the sector in more general terms in “supporting the industry in setting up” and “start exporting product out of Malta.”

Concluding, Ms Zammit underlines the positive outlook for the sector, stating that ME is working towards “creating awareness and promoting what is being done in Malta.”

This work is paying off in dividends, she explains. “In one year, we will have the first companies becoming fully operational. In five years, manufacturing would have been consolidated and the research phase would have started and producing results,” she underlines.

Yet, with the sector still at a nascent stage, it remains to be seen whether the sector will blossom towards the promised trajectory. cc

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Medical cannabis: ‘the potential is huge’ While interest in the medical cannabis sector grows worldwide, Malta is certainly making headway as a potential leader in the Mediterranean region. Jo Caruana speaks to PKF’s Cannabis Advisory team, led by lawyers Marilyn Formosa and Michela Mifsud, to learn more about what the island could offer this dynamic industry.

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he medical cannabis industry is one of the sectors firmly in the spotlight of the Maltese economy at the moment.

In fact, nearly two years on from when the island officially legalised the production and use of medicinal cannabis, various local companies are in a position to offer support to parties interested in drawing up the necessary documentation for the cannabis licensing process. PKF Malta is one of them,

and it is leading the way when it comes to supporting parties considering investing in this budding aspect of the country’s portfolio.

“Over the past five or six years, the Maltese Government has proven to be very clever when it comes to forging new streams of revenue for a country that has virtually no natural resources,” Marilyn Formosa, Head of Legal, PKF Malta, says. “That shows what is possible for the cannabis industry here.”

PKF Malta supports this move, and is making its own investment when it comes to readying itself for what the sector could bring. In fact, the company recently announced its participation at a USA-focused cannabis marketing event that will be held in New York at the start of the new year in collaboration with other international PKF firms that specialise in the sector, including PKF O’Conner Davies in New York, USA, PKF Boston and PKF California.

“Cannabis is considered a promising therapy in medicine for a variety of diseases,” Michela Mifsud says. “So the potential is huge. The plants contain two known active ingredients, CBD and THC. Unlike THC, CBD has no psychoactive effects 44

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Dr Marilyn Formosa Photos by Justin Mamo

but it does have healing powers. Chronic pains, cluster headaches, migraines, multiple sclerosis and side effects of chemotherapy are only a few conditions that can be treated with cannabis.”

With this in mind, the cannabis industry has become an attractive opportunity for many investors globally, and it is considered to be one of the most promising of our time. In fact, Malta Enterprise has already approved an area, measuring 4,000 square metres, for the cultivation of cannabis and Government has stated that approved projects are expected to create local capital expenditure of more than €110 million and 700 full-time jobs, while the island’s value of exports is projected to reach up to €900 DECEMBER 2019/JANUARY 2020

million by 2020.

Delving into more detail about the sector and the science behind it, Dr Formosa explains that the plant cannabis sativex was approved in Malta for prescription in 2015 but no patients were treated with it until 2017. “Then, in 2018, the President of the Republic signed a law legalising medical cannabis, which can be prescribed, as a result of the Labour Party’s electoral pledge.”

“A year later, pharmacies still didn’t consent to importing spray ‘Sativex’ from GW Pharmaceuticals, based in UK. But Malta Enterprise is very much leading the drive in building this new industry and there are many opportunities that are ripe for the taking,” Dr Mifsud points out.

“Government has made promising statements about what the cannabis sector could mean for the economy, and the island is enabling cost-effective investments and direct leverage into the EU.”

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Dr Michela Mifsud

“We expect that, in addition to the jobs that will be created, revenue from export, as well as associated tax revenue, will be generated.”

Internationally, things have moved quickly.

As of 2019, a total of 33 states in the United States have legalised cannabis in some form.

Across the border, Canada has decided to offer US companies the opportunity to list on its stock exchange, something that is not yet open to them on home soil. “And it’s not just US companies using Canada as a base for listing; the country’s own market is predicted to enjoy considerable growth, from $569 million in 2018, the first year of legalisation, to nearly $5.2 billion by 2024,” Dr Formosa says.

Locally, PKF remarks that things are very positive too, with the local media reporting that, so far, over 46 applications have been received, and 20 entities have issued a DECEMBER 2019/JANUARY 2020

letter of intent for the production of medical cannabis. “We expect that, in addition to the jobs that will be created, revenue from export, as well as associated tax revenue, will be generated.”

As expected, the legalities around the sector are stringent. “The licence holder must ensure that the manufacture, provision, dispatch, supply, transport and also the destruction of cannabis will happen as per Article 2, Chapter 578 of the Laws of Malta, exclusively in relation to the production of cannabis for medicinal and research purposes,” Dr Formosa says. “The licence holder must be able to identify himself clearly and be able to associate himself with the substance’s manufacture. In addition, import and export, and also the harvesting and packaging process must be documented in detail.”

She highlights the fact that accurate waste disposal must also be ensured. “One has to complete the application process to have a licence and an EU-GMP certificate before

activities related to cannabis can start, and fees also have to be paid to operate in the industry. Those fees amount to €35,000 at application stage, with an additional annual fee of an equivalent sum being paid too.”

On top of that, entities carrying out activities in the sector are required to pay €1 per unit product transacted, in fulfilment of research and education to be undertaken by the Medicines Authority. “The licence holder also has to engage a ‘qualified person’, which means the company must meet the requirements specified in the Medicines Act,” Dr Mifsud continues.

There have already been a number of exciting announcements related to the sector, including that MGC Pharmaceuticals will be the first medicinal cannabis company to operate in Malta. “The company plans to invest €11 million in the local industry to support the emerging cannabis industry with state-of-the-art equipment,” Dr Formosa says. ‘It is expected that 27 new jobs will be created in its third year of operation.

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“We are excited to be working with businesses around the world to broker relationships and assess new opportunities.”

With this in mind, Government has made promising statements about what this could mean for the economy, and the island is enabling cost-effective investments and direct leverage into the EU.” But it won’t stop there. From growers to dispensaries, companies involved with cannabis are known to struggle with tax planning and filing because, so far, there is little guidance in identifying which expenses qualify for deduction. Thus, to help businesses forecast, manage and meet tax obligations, PKF Malta has positioned itself as a leader that can leverage its understanding of how these rules have 48

evolved in the past, watch out for opinions and rulings, and apply the insights gained from working with other entrepreneurial clients.

And the benefits could reach well beyond the sector itself. Dr Formosa sees the expanding tech industry as something that could directly benefit new cannabis industry operators too. “We’ve been in talks with Malta-based companies that are creating IT solutions to help cannabis companies, and we’re in the process of brokering interactions between those kinds of organisations,” she remarks. “There is so much potential.”

Thus, it is no surprise that PKF Malta has

taken steps to become the ideal partner to the industry on the island. With offices around the world and involvement in the nascent cannabis business since its earliest days, PKF International is uniquely placed to advise investors in this exciting global industry, while the local arm has unique knowledge of Malta and the region.

“We are excited to be working with businesses around the world to broker relationships and assess new opportunities.

We stand ready and able to facilitate any company’s journey into the world of cannabis investment, in Malta or further afield,” Dr Formosa concludes. cc

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Express Trailers’ value is in its people “Leading a company means managing a set of people with different expectations and sensibilities, as well as variating and, at times, contrasting ideas of what really constitutes the company’s value,” says Franco Azzopardi, Chairman and CEO of Express Trailers.

“I

t is true that our business depends a lot on consumption and as long as there is public consumption, business will remain steady. But our growth is not only in terms of business activity. We seek growth based on three important and distinctive pillars, namely space, equipment and people.

As a CEO, I have made it my mission to constantly bring our people together to work as a team without ever losing focus of our main purpose: that of adding value to our shareholders. At Express Trailers, our people are the heart of the organisation.”

Franco Azzopardi joined the company as non-executive Chairman in 2011, bringing with him long years of experience in corporate strategy, risk management, quality control, knowledge and people development.

“One of my first tasks was to action an already drafted succession plan for Express Group. I knew I was joining a family business but what I found was a highly evolved company, whose founders, the Vella brothers, had built meticulously with passion, commitment and goodwill. Eight years down 50

the line since my appointment, I look at Express Trailers as an amazing success story built on a strong and reliable set of services and a unique customer centricity.”

“Today Express Trailers is not only Malta’s largest logistics company but a pioneer and a game-changer, a company that continues to withstand the test of time as it supports Malta’s economic evolution by connecting it to the rest of the world. Our mission remains that of acting as a vital link for hundreds of importers and exporters operating to and from Malta.”

Communicating the value of the Express brand “It’s not easy to communicate value to shareholders when a company is not listed.

What we do is we work very hard to sustain and to keep improving the perceived value by investing in our three main business enablers namely, our equipment, our space and our people, something which Express Trailers has been doing since its earliest days.”

“Our fleet was always at the forefront

of any long-term investment and whenever the company looked at growth, this was always in terms of fleet resources because an upgraded and diversified fleet enables better and more efficient logistics operations that satisfy clients’ increasing demands.

Therefore, as long as we keep investing in new transportation vehicles in tandem with the best drivers, we will keep operating in the safest and most reliable manner.”

“The company’s value is also reflected in the people it attracts. In fact, an indicator of the perceived value of the company is the rate of feedback we receive when we announce vacancies. We focus a lot on our people and we are investing heavily to offer them continuous training and education to turn them into true logistics specialists. The launch of our Express Training Academy last year and our recent huge investment in our new and modern The Logic Training Centre reflect the importance that the company is placing on its employees. Ultimately, they are the ones who can return most value to our customers and our shareholders.”

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“Hard work, courage, passion, dignity, determination and attitude were, and will remain the main ingredients for this company’s future success.” – Franco Azzopardi, Chairman and CEO Photo by Rene Rossignaud

Employees’ experience and expertise to mitigate logistics risk “We have been building the Express Trailers brand on a number of pillars but perhaps one of the most important ones is the management of risk. The idea of risk management in logistics might not be as sophisticated as in other financial sectors such as insurance and banking but this does not take away from the fact that logistics is a sector that attracts a lot of risk.”

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Some risks can be mitigated and others can be transferred, whereas certain residual risks will remain with the owner and the transport operator. It all boils down to how capable a transport and logistics company is at mitigating the risks involved.

“At Express Trailers, we are constantly looking at the perceived risk at all levels of our service delivery. From a governance perspective, we have invested a lot to borrow from and emulate other sectors such as banking, finance and investment in this regard.

In fact, we have a board committee that addresses risk management. We are equipped and experienced to give the highest level of confidence and peace of mind that if operators need a sound and reliable logistics operator, then they can come to us. As logisticians, we operate under the CMR Convention, to which Malta is also a signatory, we have most quality charters in place, and we invest regularly in the top-most equipment to reduce risks of failure.”

“The level of the extent to which we are capable of mitigating risk is one of our strong points. Businesses find a solid partner in Express Trailers. It comes at a price, but that price is reflected in the value and risk

mitigation that we offer which ultimately contributes to businesses’ peace of mind.”

The year ahead In 2020, Express Trailers remains committed to keep focusing on developing its people further especially in view of how the sector is developing in terms of technology and a quest for more sustainable operations.

“In fact, as operators, we will keep focusing to address the trade gap between imports and exports as we will be seeking to also harness the opportunities of big data by using smarter technologies, more mobile applications, automation of technology and workflows. We also plan to renew our focus on sustainability, an aspect which we know should be driving our sector in the coming few years.”

“We have come a long way and it was no easy task. The going was tough, but the tough kept everyone going. Hard work, courage, passion, dignity, determination and attitude were, and will remain the main ingredients for this company’s future success.” cc www.expressgroup.com 51

CC BUSINESS

Legal considerations on marriage separations in the corporate world

By Dr Malcolm Mifsud, Founding Partner, and Dr Maria Camilleri, Associate – Mifsud & Mifsud Advocates

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he falling out of any two spouses may be a messy affair. Questions of the heart more often than not, supersede legal considerations. Any matrimonial dispute may take over every aspect of one’s life, such as the future of the children, financial instability and also where one is to live. An added consideration for those who are in business is whether a personal separation will affect the future of the business, the assets and liability of that business, and how partnerships are going to be effected by such a split.

This article is intended to give an insight

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into some of the aspects of the legal and practical implications of the corporate world, when there is a matrimonial dispute.

Shares in a business or a company are an asset as any other assets. The rules pertaining to assets are identical when one is investigating how best to divide the assets in general. First of all, one has to ascertain whether the assets form part of the community of acquests or whether these are paraphernal. The date of marriage is used to determine whether the assets are part of the community of acquests or not. However, it is not the sole marker. If a spouse inherits

shares, those shares will be his or her paraphernal property. If a spouse held shares before marriage, then those shares do not form part of the community of acquests and therefore, the sole property of that spouse.

In a separation, the spouse holding those shares will be entitled to keep them in full after the separation. However, if the business was set up in marriage or else shares within a company were acquired in marriage, then a full discussion on the division of those shares must be held.

The division of any assets, including shares in a company and a business in general, may DECEMBER 2019/JANUARY 2020

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Photo by Alan Carville

take place in a variety of forms. The spouses may choose to continue to own the business together even after a separation or else one spouse may buy the other out. Valuations of the shares of a business or a corporate vehicle may be essential in order to reach a fair and equitable resolution.

This is a straightforward solution; however, life is not straightforward and there can be many complications in dealing with businesses that the spouses may be involved in. A business may have substantial debts and therefore, this fact may have a considerable bearing on these discussions DECEMBER 2019/JANUARY 2020

when dividing the business among the spouses.

The general rule listed in the Civil Code states that all extraordinary acts of administration of the community of acquests have to be taken by both spouses. However, there are exceptions to this. Article 3124 of the Civil Code states: “Normal acts of management of a trade, business or profession being exercised by one of the spouses, shall vest only in the spouse actually exercising such trade, business or profession even where those acts, had they not been made in relation to that trade, business or profession, would have constituted extraordinary administration.”

Therefore, the law is providing that a spouse who is involved in any business does not need the consent and approval of the other spouse who exercises the normal administration of the business, which includes trade debts and business loans.

However, the key phrase is “normal acts of management”. The Court, in a recent judgement Josephine Grima v. Saviour sive Salvu Grima, delivered on 27th June 2019

by Mr Justice Grazio Mercieca, held that when there are cases where a business is already burdened with heavy debts, the fact that the spouses enter into more debts cannot be interpreted as a normal act and therefore, would require the consent of the other spouse. If the consent is not sought and on the contrary the situation is hidden from the other spouse, the Court held that this situation is illegal and abusive. This was echoed by Mr Justice Joseph Zammit McKeon on 29th November 2019 in Sylvana Tanti v. Noel Tanti, Antoine Tanti u Maria Perret. In this case the Court held that it is normal that companies have overdrafts and loans and therefore, such banking facilities or else purchasing stock on credit, are considered as normal management and therefore are legal if they are part of the normal course of the business.

The fact that no consent was given by

the other spouse may have a very serious consequence, because that transaction may be declared null and void. Therefore, if a business debt is not a normal act of management requiring the consent of the other spouse but this consent is not given or asked for, the said business debt may be declared null and void as well as not being charged to the community of acquests. The spouse who should have sought the consent of the other spouse, could be lumped with the whole debt; in which case the other spouse should not be asked to pay.

A frequent question lawyers receive is whether the income of business forms part of the community of acquests and therefore whether both spouses have a right of reward of the businesses that their spouses have made. The law in my opinion is very clear. Article 1320(b) of the Civil Code states that the fruits of property of any of the spouses, even if paraphernal, are part of the community of acquests. Therefore, any income, whether in the form of dividends or in the form of drawings, derived from the business, is the property of both spouses.

In the case of paraphernal property of any business, although one spouse may own the shares in that business, the other spouse may enjoy the fruits of that business. Therefore, in the case of separation proceedings, the income raked from business will not go solely to that spouse who owned the shares in the company, but the wealth accumulated from that company will be divided between both spouses equally. Obviously after the separation that latter spouse will no longer enjoy the fruits of the business concern.

Therefore, the complexity of the corporate world may be simplified by following a few rules irrespective of whether the shareholders have a matrimonial dispute or not. However, if there is a matrimonial dispute, the path to a resolution may be that easier if these rules are kept in check. cc www.mifsudadvocates.com.mt

The general rule listed in the Civil Code states that all extraordinary acts of administration of the community of acquests have to be taken by both spouses.

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Photos by Justin Mamo

From generation to generation With news of its new Gozo branch and an exciting outreach programme planned, the Family Business Office is becoming evermore effective in helping local family businesses to thrive. Here, Regulator Joseph Gerada talks Jo Caruana through the organisation’s plans for 2020 and beyond.

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amily businesses are absolutely crucial to the economy. Often growing and developing from generation to generation, they can be pillars of the community; brands that are almost as much a part of the fabric of our society as our architecture and institutions.

Thus, succession – the act of passing on a business from one family member to another – is part of their very core. And, while succession can go smoothly if dealt with correctly, it can also prove to be a major challenge for businesses to overcome.

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This is exactly where the Family Business Office, led by Regulator Joseph Gerada, steps in. It is his job to guide family businesses as they take major steps on their journeys, including the transition from one generation to the next.

“Whereas in non-family businesses successors are normally selected on the basis of their knowledge, talent and experience in relation to the business itself, in family businesses it is usually the case that successors are chosen from among family members,” Dr Gerada says, adding that this

can pose challenges.

“On the other hand, in both types of business – family-owned or otherwise – the entrepreneurship element is a determining factor of whether the business will last from one generation to the next or whether it will simply die a natural death because of lack of entrepreneurial ideas and drive. This is where generational renewal becomes critical.”

The Regulator explains that this is what defines the effort required for a company, however small or large, to remain dynamic across generations. “The previous DECEMBER 2019/JANUARY 2020

CC BUSINESS generations that established the business will have become used to a way of doing things that led to success being enjoyed by the business over the years,” he continues.

“However, with changing times, technology, varying needs and demands, all businesses need to open their doors to the new generations who bring new ideas, and who renew and revitalise the entrepreneurial ethos within each particular business.”

“Of course, each business is different, and what works for one business may not work for another. However, the need for the entrepreneurial spirit to be passed on effectively from one generation to the next is a requisite.”

As a business moves towards the end of one generation and the start of the next, it becomes important for the new generation to be involved in the succession plan as soon as possible, while keeping the founder or older generation equally involved at all times. “The majority of family businesses are founded on entrepreneurial knowledge and energy,” Dr Gerada continues. “Thus, family business success often depends on the extensive entrepreneurial knowledge of its founders and their successors.”

“After all, the original founder will have been the person who put technical skills, industrial knowledge, and other commercial knowledge into the business, and this can only be passed on to the next generation if the necessary preparatory work is done over the years.”

Dr Gerada highlights how family members participating in the business can influence how the next generation acquires the knowledge and skills of the previous generation. With this in mind, involving the younger generation as early as possible is of critical importance. “As time passes, the excitement and creative momentum built up in the early years can give way to mindsets that are more preoccupied with safeguarding what’s been achieved rather than exploring new risk-taking opportunities,” he explains.

“And this can inevitably become a shadow that the next generation must live under.”

“It is often the case that, unless the new generation is involved from an early age, its members will naturally lose interest in the family business and start directing their focus and attention towards other opportunities to establish themselves in the working or entrepreneurial world.”

In some cases, those members of the next generation who have the greatest aptitude to take the family businesses into its next stage end up employing their knowledge, talent and skills in other privately-owned companies that are not related in any way to their family’s business. “Avoiding this type of brain drain requires the family business to acknowledge the potential of the new generation as soon as possible, ideally by giving its members a role within the company early on too,” Dr Gerada says.

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And it is this kind of advice the FBO is able to impart. Even the Regulator makes clear there is no one ‘magic formula’ that can be applied to each and every case.

“Each business is different and there are various family business models that could be employed, depending on the nature, trade and sector that the family business operates in as well as the various elements of succession at play.”

He does, however, recommend the Three Circle Model, which effectively connects the family, the company’s ownership, and the business. “This model is based on the involvement of both family and non-family members, and portrays the clear distinction between each of three independent and overlapping groups. Developed in 1978 by Harvard academics Renato Tagiuri and John Davis, this model has been the most applied framework for understanding family business systems around the world, and is used extensively by families, consultants and academics.”

“Beyond that, it is understandable that, very often, family business owners are very good at what they do but lack the knowledge, experience or background to develop their own strategy for the family business or to establish a plan for succession. In such cases, it is crucial that professional consultants and advisors are brought in.”

Dr Gerada is therefore pleased that, in the recent Budget, it was announced that one of the incentives offered to registered family businesses has been renewed for the coming year. “The advisory services incentive can be used by registered family businesses requiring legal, notarial and accountancy advisory services, and provides support of up to €2,500 over a five-year period for the purpose of assistance in the succession or business transfer of a family business,” he explains. “Other fiscal and governance incentives were also renewed.”

Beyond that, the FBO has also announced it will be opening a branch in Gozo, and a space has been identified from which it will

be able to provide its services. “Operations should start in January, and our main aim will be to provide Gozitan family businesses with assistance in an efficient and convenient manner, and for them to have a point of contact in Gozo.”

Looking to 2020, Dr Gerada says that the office has a lot scheduled with regard to outreach too, and he plans to host a number of events throughout the year with the aim of reaching out to family businesses that are not yet informed enough about the benefits of being registered with the Family Business Office.

“Furthermore, it is our aim to pass on information and first-hand experience from family businesses that have implemented good practices in their family businesses, and which have already reaped fruit. It is also our goal to organise educational and training seminars for family businesses in collaboration with institutions and entities such as the University of Malta and Malta Enterprise.”

He stresses the need to push for a change in culture where it is required to ensure the success of a business from one generation to the next. “This requires training and the sharing of best practices,” he continues.

“We intend to focus more on developing the tools that are currently most popular for marketing in this day and age, and will also prioritise the simplification of processes and procedures as we look for ways to make the services offered by the FBO more easily accessible, including through our online portal.”

Last but not least, Dr Gerada sheds light on the office’s intention to increase manpower in the year ahead, helping it to cope with the growing number of family business registrations and the planned outreach programme. “Our workload is increasing. I am currently the only person employed with the office, and I believe we are going to need to have a dedicated staff complement to assist me with all the exciting things we have to come,” he concludes. cc

“The need for the entrepreneurial spirit to be passed on effectively from one generation to the next is a requisite.”

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Food trends

03. A taste of the Afro-Caribbean

‘Tis the season to savour the finer things in life. From Christmas flavours to January savouries, Rebecca Anastasi has the low-down on the best bites and bevvies to relish as the colder weather settles in.

01. Za’atar spice Bon Appetit

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From roasted cauliflower to baked chicken, this Middle Eastern spice blend will add verve to your home cooking. Consisting of oregano, thyme, sumac, ground sesame seeds and salt, za’atar is making its way into kitchen pantries around the globe. Sprinkle some on your soups too for an exotic twist.

02. Meat-free celebrations With concern increasing on the way humanity’s ways are having a dire impact on the environment, you’ll find many family and friends who have opted to go down the vegan route – or you may have done so yourself. Satisfy those hunger pangs and celebrate the festivities with recipes such as a green bean casserole, garlic miso button mushrooms and vegan mince pies.

A Virtual Vegan

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The African diaspora in the Caribbean brought their own flavours to bear on the sunny dishes of this region in the Americas. Using plantain, lentil, fish and yams, Afro-Caribbean food melds cultures and histories in re-imaginings of popular dishes: goat curry with rice and peas, and jerk-spiced fried fish are two of the most popular. Our tummies are rumbling already!

04. Seacuterie The next few weeks will be a flurry of entertaining, lunches and fun-filled dinners.

And, while the charcuterie board always seems to make an appearance – usually as a starter set – this season, seafood will guest star. Octopus salami, shellfish sausages or swordfish ham may sound experimental, but it’s only a matter of time before they are common fixtures on our tables.

05. Healthy kids’ menus Those who have little ones know how difficult it is to keep them satisfied and happy, while also eschewing trashy foods.

And, while parents have been continuously striving to find nutritious, fun alternatives, restaurants and food brands are only now offering delicious, healthy food for kids, such as organic chicken nuggets, salmon fish fingers and baked sweet potato wedges.

06. Makgeolli This Korean milky, yeast-fermented rice wine – considered to be the country’s oldest alcoholic drink, dating back to some 2,000 years ago – has been rising in popularity these last few years, and its ascendance is set to continue. Its light effervescence and weak strength, at 6-7 per cent alcohol, makes it the perfect drink to imbibe night after night with family over the festivities. cc

Healthy little foodies

Yummy Medley

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NEWS Events & Initiatives

01. Child prodigy and young pianist show off talent at Malta Chamber The Honorary Consulate General of the Slovak Republic in Malta held its annual Slovak Republic National Day Celebration Concert at the Malta Chamber of Commerce, Enterprise and Industry, on 23rd October.

This year, the concert featured child prodigy, violinist Teo Gertler, 11, and Antonio Gomena, still only 22 years old, on the piano.

The President of Malta was among those attending the event, during which the two musicians collaborated in performing various renditions of classical pieces, including works by Pyotr Tchaikovsky and Jean-Marie Leclair, among others.

Gomena also performed a piano solo by Frederic Chopin.

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02. Is your business cybersecure?

“Business is, without a doubt, one of the fields that has benefitted most from recent technological advancements,” Chamber President David Xuereb said during the first CyberSecurity Summit, held on 23rd October. He said, “many areas of business have seized the opportunity and achieved significant growth in the last few decades, primarily due to this reason.”

The President noted that these changes cannot be taken for granted and warned that “no business is too small to be at risk of a cyber attack.”

He stated that, although the effects of cyber attacks have also been felt by local companies, “cybersecurity is not a problem to be solved but a continuous threat that demands constant attention.”

Perit Xuereb noted the Chamber’s efforts in protecting and raising awareness of such issues among its members and also among the business sector in general. He mentioned

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how the Chamber welcomed the national cyber security awareness and education campaign, launched in October 2018.

He also referred to the Chamber’s participation in a survey conducted in collaboration with MITA among Maltese businesses. The Chamber also held a focus group session between local SME business owners “to elicit and asses the level of cyber security awareness among SMEs in Malta.”

Moreover, the Chamber President noted that “the Chamber is fully aware of the importance of this subject and has already lent its support to all working to create awareness in this field.” In fact, he went on, the Chamber recently started helping the Malta Police Force to shed light on the most common threats in connection with cyber security.

While expressing the Chamber’s support to the B Secure Scheme that was launched

by the Parliamentary Secretary for Financial Services, Digital Economy and Innovation, Silvio Schembri, Perit Xuereb stated that the “Chamber supports any scheme for the private industry that offers assistance,” adding he is confident the scheme launched “will provide the necessary opportunities for businesses to enhance their cyber security posture.”

03. Malta Chamber committed to manufacturing sector sustainability “The Malta Chamber remains committed to the sustainability and continued development of the manufacturing sector in Malta,” its President, David Xuereb, said when addressing a breakfast meeting titled 'Challenges and opportunities in the manufacturing sector in Malta', on 24th October.

During the event, organised by the Chamber's Manufacturers and other Industries Economic Group, the Chamber presented the results of a survey it conducted among its members involved in the manufacturing sector, which identified the key challenges faced by the sector.

Commenting on the findings, Perit Xuereb said that, at this time and for the foreseeable future, the main issues faced by businesses in the sector were related to the shortages of labour, increased wages and transport costs.

Referring to the manufacturing sector’s share within the context of the greater economy, he said the sector's gross value added grew at a lower rate in the first half of 2019 when compared to the same period last year.

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He noted that industry remained a crucial pillar of the Maltese economy, which employed over 10 per cent of the total workforce and needed to be nurtured continuously by supporting constant improvements to ensure export competitiveness.

During the same event, Economy Minister Chris Cardona and Malta Enterprise CEO Kurt Farrugia congratulated the Chamber for this initiative and took the opportunity to launch new incentives aimed at manufacturing that were not listed in the Budget speech.

The event was also addressed by Patrick Cachia, Marisa Xuereb and Nick Xuereb.

04. Getting ready for the Next Wave Chamber President David Xuereb said the business community was well aware that the Next Wave was inevitable and the opportunities the future brought with it were certainly there for the taking.

Perit Xuereb was addressing the annual attractiveness event organised by EY on 25th October, during which the Malta Attractiveness Survey was published.

The President said the Chamber was encouraged by the fact that Malta was adapting to a forward-looking vision while strongly embracing the digital revolution.

He pointed out that the Chamber had always challenged suggestions of passiveness because it insisted on being the agent that drove the country forward 62

to the new levels demanded by the disruptive world experienced nowadays.

Perit Xuereb stated that the Chamber always firmly believed in being one step ahead of any worrying signals the country might receive. He referred to the World Economic Forum’s Global Competitiveness Index, in which Malta slipped by two places.

He said the Chamber had been airing its views on the matter for some time but also as soon as the report was published.

Concerns such as the constant rise in the overall cost of labour, labour legislation, rent inflation, rising operation costs, taxation structures, transport and logistics, and the prevailing perceptions about Malta abroad, arguably mirrored pain-points raised in the EY survey and needed to be addressed, he insisted.

Perit Xuereb stated that the country could not lose focus of its national competitiveness position which, according to the Chamber’s views, was “the product of a wide array of investment attractiveness factors that must all be given their due priority and attention.”

He continued that “the necessary transformations must continue to take place in a manner that addresses any shortcomings, without losing sight of the fundamental objectives of attracting investment.”

While thanking EY Malta on conducting the survey and organising the event, Perit Xuereb appealed to the authorities to continue to support social

dialogue and consult with the business community through the Chamber. “We have shown, time and again, that ethical business is often the provider of longterm and sustainable solutions.”

05. Malta Chamber and Kamra talPeriti agree to collaborate further The Malta Chamber of Commerce, Enterprise and Industry, and the Kamra tal-Periti signed a memorandum of understanding on 29th October to enhance collaboration between the two organisations.

By virtue of the agreement, the Malta Chamber and the Kamra tal-Periti agreed to cooperate actively on matters of national economic policy that are of common interest to the business community and the architecture and civil engineering profession.

To this end, the parties may assist and provide each other with expertise in relevant areas.

Moreover, the parties shall engage in a meaningful dialogue with a view to support each other on a policy level.

“The memorandum of understanding being signed with the Kamra tal-Periti is the latest in a series of collaboration agreements the Malta Chamber has entered with strategic organisations in a bid to provide members with a stronger network of support,” Malta Chamber President David Xuereb said ahead of the signing.

The agreement was signed by Perit Xuereb and Deputy President Marisa DECEMBER 2019/JANUARY 2020

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Xuereb on behalf of the Malta Chamber, and by President Simone Vella Lenicker and Vice President and Treasurer André Pizzuto on behalf of the Kamra tal-Periti.

06. AI readiness workshop for business “We are proudly organising this event because it serves the important purpose of understanding how artificial intelligence (AI) revolutionised the way companies conduct business and learn how to implement its application to maximise benefits of this next wave of innovation,” Marisa Xuereb, Deputy President of the Malta Chamber of Commerce, Enterprise and Industry, told a workshop jointly organised with the Google Developers Group on 30th October.

Welcoming the Artificial Intelligence Strategy for Malta, launched by Government earlier in the month, Ms Xuereb underlined the Malta Chamber’s commitment to contribute towards helping develop the necessary talent, investment and ecosystem to allow the AI sector to flourish, from start-ups to bigger tech leaders. She added that positioning companies as disrupters rather than followers can attract positive

social and economic transformation for businesses to shape Malta’s future.

Various themes dealing with AI were tackled by the speakers who included Alexiei Dingli and Dylan Seychell, from the University of Malta, and Mark Bugeja, a researcher at the University of Malta.

The event, targeting Chief Executives, Managers, Chief Technology Officers and Business Managers from various industries in Malta, served the important purpose of understanding the purpose of AI, grasping how technology revolutionised the way companies conduct business and applying solutions to organisations.

07. Malta Chamber and Chamber of Engineers sign memorandum of understanding The Malta Chamber of Commerce, Enterprise and Industry, and the Chamber of Engineers have signed a memorandum of understanding, intended to enhance collaboration between the two organisations in the future.

The agreement was signed on 6th November by President David Xuereb and Deputy President Marisa Xuereb on

behalf of the Malta Chamber, and Daniel Micallef and Malcolm Zammit, President and General Secretary respectively of the Chamber of Engineers.

The two organisations agreed to cooperate actively in the interest of the Maltese economy, the upholding of business ethics and the promotion of best practice among their members. They will also engage in a meaningful dialogue and seek to support each other’s stands on key common issues.

The memorandum of understanding provides a platform for cooperation in matters in which either party has expertise.

“The Malta Chamber will commit to making its services available to individual members of the Chamber of Engineers, among which are various internationalisation opportunities through the Enterprise Europe Network,” Perit Xuereb said ahead of the signing.

In turn, the Chamber of Engineers, as an associate member of the Malta Chamber, shall make available its specialised expertise, which will enhance the Chamber’s representational activities. On a reciprocal basis, the organisations will collaborate in joint projects aimed at supporting the growth of members’ business.

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07.

08. Malta Chamber congratulates Frank V. Farrugia The Malta Chamber of Commerce, Enterprise and Industry congratulated Frank V. Farrugia on his appointment as Chairman of the Malta Broadcasting Authority.

Mr Farrugia was appointed to this position by the President of the Republic on the advice of the Prime Minister, following a discussion and in agreement with the Leader of the Opposition, as provided by the Constitution.

Mr Farrugia is a stalwart of Malta’s business community. Throughout his long career, he held directorial positions on several public and private boards.

He was member of the Council, and Board of Management of the Malta Chamber for several years, and served as President between 2017 and 2019.

for 2020 will be how fast and with what magnitude the slowdown in export sectors affect the rest of the economy.

“In the event of a downturn, EU member states should make use of the flexibility provided for in the Stability and Growth Pact to undertake appropriate counter-cyclical fiscal policy, including to support growth-enhancing investments and structural reforms.”

The outlook also takes an in-depth look at the growing problem with skills shortages experienced by European business. Mr Beyrer noted that “whilst there is evidence that companies are increasing wages considerably for professions where shortages are most acute, we need a response from the educational system to address growing skills imbalances.”

09. EU faces economic slowdown due to trade tensions

10. Malta Chamber supports MCAST workbased learning project

BusinessEurope’s Autumn Economic Outlook 2019, which is based on input from its member federations in 35 countries, shows that the EU economy is experiencing an economic slowdown, reflecting declining global demand and uncertainties due to trade tensions.

Launching the publication on 7th November, BusinessEurope’s Director General, Markus J. Beyrer, said: “As a consequence of global trade tensions, European manufacturing output is down around two per cent from its peak two years ago. The big economic question

“The Malta Chamber is a firm believer in job exposure at various stages of the educational system as it supports work-based learning activities such as internships, apprenticeships and work placements,” David Xuereb, President of the Malta Chamber, said when addressing the launch of ‘Achieving vocational excellence through enhanced work-based learning,’ an ESF funded project by the Malta College of Arts, Science and Technology, at the Chamber on 12th November.

Perit Xuereb noted that official figures showed that the number of young people

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of Chamber Deputy President Marisa Xuereb, among others, was chaired by the MCAST Principal, James Calleja. It looked at the projected initiatives and challenges to be addressed by the project.

The event was also addressed by the Minister for Education and Employment, Evarist Bartolo, and the Parliamentary Secretary for EU Funds and Social Dialogue, Aaron Farrugia.

‘Achieving vocational excellence through enhanced work-based learning’ aims at consolidating MCAST structures in the context of apprenticeship and workbased learning. The creation of robust education structures within this context is geared towards increasing academic attainment and employability possibilities of a cohort of students already engaged in the labour market as apprentices.

On this project, MCAST is partnering with the Ministry for Education and Employment, the Malta Chamber of Commerce, Enterprise and Industry, as well as the National Skills Council. The project will be 80 per cent funded through the European Social Fund.

11. not in employment, in education or in training (NEETs) was on the increase.

“This is coupled by a high rate of early school-leavers, which is leaving the country with an unskilled or low-skilled workforce. It is therefore a priority that youth, first and foremost, should keep studying. However, should they decide to take the vocational pathway, rather than the academic one, they should be given the opportunity to learn on the job and have a practical learning experience through placements,” he said.

“Apprenticeship programmes are an effective tool to improve the skill-set of young people,” Perit Xuereb remarked.

He noted that the Chamber strongly supported the recent legal reform of the apprenticeship system. “The Chamber believes that it is fundamental in improving the employment opportunities of schoolDECEMBER 2019/JANUARY 2020

11. Exclusive preview of the upcoming Economic Vision leavers and those pursing vocational studies while further reducing the skills gap that currently exists in Malta.”

In conclusion, the President said that the Chamber was looking forward to providing MCAST with the assistance it needed to ensure this project would be a success.

The President of MCAST’s Board of Governors, Frederick Schembri, reflected on the alarming students’ drop-out rate that was partly attributed to the fact that students were unable to see any connection between what they were learning and what they could one day be doing professionally.

“We need to act differently to the traditional manner in which education and training has been taught. The heterogeneous and fragmented system of job training is proving to be counter-productive,” he said.

A discussion with the participation

The second event of the Young Chamber Network took place on 11th November when members were given an exclusive preview of the Chamber’s upcoming Economic Vision.

The Chamber is well in the advanced stages of drawing up a new Economic Vision for Malta for the years 2020-2025.

In fact, 28 CEOs from Malta’s foremost and leading businesses have been enrolled to share their ideas on where they see their sectors and Malta’s economy in general going in the next five years.

The Chamber is interested to learn what its young members’ take on the topic is and wants to bring them on board this ambitious and exciting journey.

Jo Caruana facilitated the conversation on the subject, which featured Chamber President David Xuereb, Deputy President Marisa Xuereb and a presentation by Director General Kevin J. Borg.

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NEWS Internationalisation

01. Malta Chamber welcomes foreign ambassadors Chamber President David Xuereb welcomed Deputy Ambassador Mohammad Alnuaimi and Canadian Minister Counsellor Edith St. Hilaire during a courtesy visit at the Malta Chamber in November.

Perit Xuereb, along with Kevin J. Borg, Director General of the Malta Chamber, discussed and explored business opportunities with the visitors.

02. Supporting women entrepreneurship by building stronger networks “With the current and projected impact of women-led business on the world’s economies, the leadership-gender issue has become a significant one,” Liz Barbaro Sant, member of the Board of Management of the Malta Chamber, said.

She was addressing the first ArabEuropean Businesswomen Forum at the InterContinental Hotel, in St Julian’s, on 13th November. The Minister for Foreign Affairs and Trade Promotion, Carmelo Abela, Amal Jadou, from the Palestine Ministry of Foreign Affairs, and the President of the UAE Businesswomen Club, Hind Al-Qassimi also addressed the event.

Ms Barbaro Sant noted the importance of closing the gender gap in entrepreneurship and creating a diverse workforce, from gender to culture, which could foster creativity and innovation. She said that “companies which prioritise and promote a diverse and inclusive work environment tend to benefit from the creative and innovative ideas that push organisations to the next level.”

She added that this can be achieved through access to all forms of capital, including funding and training, but also through promoting dialogue on women

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entrepreneurship, gaining insight and advice from exchanging experiences and forging partnerships among governments and stakeholders.

Ms Barbaro Sant remarked that these are all opportunities the forum aims to create and which can further “magnify our impact in our support for women entrepreneurship by building stronger networks.”

In addition, the forum sought to establish connections and business relations

with women entrepreneurs in Europe in different sectors, exploring opportunities of investment, trade and business connections between the EU business society and Arab businesswomen in particular.

Businesswomen from Jordan, Palestine, UAE, Kuwait, Mauritania, Kurdistan and Algeria travelled to Malta and joined the discussions on the various topics which were tackled from European and Arab perspectives. cc DECEMBER 2019/JANUARY 2020

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FIMBank strongly geared for the provision of international settlements As a trade finance specialist, FIMBank has a long-standing reputation for an efficient delivery of international settlements, for a wide range of corporate customers both locally and abroad.

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IMBank is consistently driven to provide tailor-made solutions with a strategy that hinges on the commitment to provide added value to its local and international clients, by focusing on specialised customer service and sophisticated systems.

The bank offers the possibility to execute payments worldwide, with same-day, next-day options, for normal or high value transactions. This is part of its corporate banking suite in the major trade currencies, together with fixed term deposits and foreign currency payments.

Over the years, the bank has built a team of international corporate bankers with experience in identifying customer needs, and matching these with system solutions complemented by dedicated support. FIMBank is constantly listening to its customers and potential business partners in order to offer valued solutions and enhance efficiencies for the customers’ benefit, ultimately helping them to reach their goals.

The quality of the bank’s delivery relies on its team, made up of dedicated 72

on-boarding and helpdesk personnel, relationship managers, and product development specialists. Its work is centred on ensuring that it continuously aligns itself to ever-changing requirements in local and international business.

The delivery of international settlement services is facilitated by the bank’s digital banking platform FIMBank Direct, with a commitment to provide an enhanced banking experience to its customers, based on a strong infrastructure built to support international multi-currency settlements and fixed term deposits. This provides a seamless experience to corporate customers. Coupled with this is the fact that the bank has recently extended its payment cut-off time.

In a bid to enhance its standing as a leading provider of local and international corporate banking products, FIMBank recently announced that payments executed up until 16:00 CET via its digital banking platform, can now be processed on the day, subject to all criteria being met where applicable.

FIMBank Direct provides an efficient and convenient international payments

framework and fixed term deposit products. Corporate and wholesale banking services offered include balance view and management, the ability to book single or multi-currency payments, and access to statements and advices.

Apart from these features, FIMBank’s corporate customers benefit from enhanced security through the innovative authentication app, the FIMBank CAM. This technology allows corporate customers to log in and perform payments, anytime, anywhere, without the need to carry a hardware token.

FIMBank is also a direct participant in TARGET2, a payment system owned and operated by the European Central Bank Eurosystem. TARGET2 is the leading European platform for processing largevalue payments, and is used by both central and commercial banks to process real time payments in Euro. As part of the advantages of TARGET2 payments, FIMBank is directly reachable for Euro payments without the need for payments to go through its Euro correspondents. Membership of the system DECEMBER 2019/JANUARY 2020

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also facilitates the processing of high value priority payment orders in ‘safe’ central bank money with immediate finality, even across borders, thus reducing the inherent risks in payment transactions.

Together with its bespoke offering for immediate and efficient settlement options for corporates, FIMBank offers fixed term deposit accounts for such organisations, at competitive interest rates for a variety of both long-term and short-term tenors.

Once on-boarding is successfully completed, corporates may opt for different tenors and competitive rates, solely via the bank’s digital banking platform.

The bank has always dedicated its focus and resources towards investing in systems geared to cater efficiently for settlement services on a global scale. Its typical customer would be a corporate, transacting both locally and internationally, and using multiple currencies for settlements. Thanks to its product portfolio, the bank is in a position to provide a framework within which its customers can look forward to improving their business profitability. cc To learn more about the benefits that FIMBank offers in relation to its international settlements, contact their Business Development team on cm.businessdev@fimbank.com

Over the years, the bank has built a team of international corporate bankers with experience in identifying customer needs, and matching these with system solutions complemented by dedicated support.

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Products of Quality National Scheme explained Who can apply?

The Products of Quality National Scheme (PQNS) is intended to give consumers certainty that a particular agricultural product has been produced following strict quality parameters. All recognised agricultural producers and processors are eligible to apply for such as scheme.

Food processing plants which take in raw materials and process them to form other products are also eligible to participate in this scheme. Adhering to the conditions explained below will give the right to these operators to use the quality label on their products.

How is quality attained?

Quality in crop production can be achieved in different ways by using best management techniques that limit and control the use of fertilisers and pesticides, as well as other practices such as tilling at specific times using different methods in order to reduce any possible chance of soil erosion. Quality in the rearing of farm animals can be achieved by practicing certain animal housing regimes that permit enhanced animal welfare conditions. The type and quality of the feed given to the animals is certified and monitored by a qualified animal nutritionist. This is to ascertain that animals are receiving an adequate diet during all the stages of their life. This also reduces wastage of food, a practice which also has a lessened burden on the environment due to a reduction of animal waste and subsequent sustainable disposal.

How is quality ascertained?

Quality by means of a control plan determines how a processing plant operates. Any potential contamination needs to be detected and rectified by also making the best possible use of

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What is the purpose of this scheme?

The purpose of this voluntary scheme is to add value to agricultural products produced according to set specifications which characterise the superior quality of a particular product which goes over and above set minimum criteria as stipulated by law.

The superior quality of a particular product can be measured by different parameters such as public and animal health, improved environmental practices, as well as enhanced animal welfare throughout the whole process of cultivation and rearing, processing and distribution.

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All the traceability and autocontrol procedures need to be in place before products can be labelled and marketed with the Quality Mark. resources. In addition, every entity adhering to the PQNS needs to be in possession of a traceability procedure to record and document the story of a product, the origin of the material and the story of the process.

All this information needs to be stored on a computerised information management system accessible 24/7 by the Agriculture Directorate as the competent authority and administrator of the scheme. Apart from the traceability system, each entity needs to be assigned to an independent control body which monitors and audits the entity at specific intervals.

Which sectors will be mostly impacted by the Quality Mark Scheme?

All agricultural sectors that are involved in the production of fruit and vegetables, but also any sector that deals with the production of animal derived products such as meat cuts, dairy products, eggs, honey and other similar products. The living conditions, nutrition and general welfare of farm animals is improved to ensure that at every step of their life, the animals are raised at a higher standard to ensure the highest quality final product.

What were the main challenges faced by the Agriculture Directorate in the implementation of the Quality Mark Scheme?

The biggest challenge is that there are various stakeholders in the industry, with different opinions on what particular standards should be. This is a time-

consuming process. A standard for a particular agricultural product needs time to be developed as it needs to be both attainable by the industry and at the same time higher than the minimum standards that producers are to adhere to. All the traceability and autocontrol procedures need to be in place before products can be labelled and marketed with the Quality Mark.

Why is the Ministry for the Environment, Sustainable Development and Climate Change implementing the Quality Mark Scheme? What are the main benefits for the general public?

Producers and processors need to be compliant with the minimum legal requirments concerning food and feed law and animal welfare, however the Ministry is pushing to implement the Quality Mark as a measure to acknowledge those stakeholders which produce their products at a higher quality level. The Ministry wants to reward investments made by stakeholders by giving them the opportunity to use the Quality Mark in order to distinguish their higher quality produce from others.

On seeing this quality logo, the general public will have the certainty that they are purchasing a higher quality product that went through rigorous auditing and quality control at the various stages of production, processing and distribution. cc For more information: T: 2292 4339; E: ikeltakwalita.mesdc@gov.mt; https:// agriculture.gov.mt

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STYLE

Style Review

REVIEW

03. Chunky chain necklaces

Autumn and winter generally take a step back from the more extroverted styles. Despite an increased reliance on comfort and weather protection, a strong fashion statement is nevertheless possible. Caroline Curmi highlights the trends that are rocking the fashion world and are ready to rock yours too!

True, clothes make statements but nothing speaks louder than chunky accessories.

Current trends point towards necklaces as the emerging centrepiece of this movement, specifically chunky chain necklaces. The allure of dainty jewellery is set to take the back seat, with chunky pieces replacing it.

In this case, style trumps material: whether it is gold, silver, bronze or rose gold, the accessory is a winter staple for any wardrobe.

04. Punk fashion

01. Androgynous fashion Fashion is known to be the right-hand man of various social movements and recent developments on the gender rights and feminism fronts have solidified this claim.

Although a long-standing fashion trend, the previous stigma surrounding androgynous fashion had affected its wearability but now it is governing the season. No heavy expenditure is required to implement the trend; social fiction references, kilts, capes and loose, black, geometric clothing can easily be incorporated and fused with other seasonal trends, with make-up featuring extensively.

02. Camel coat The undisputed staple of any winter wardrobe, the camel coat has been a constant and reliable option for a comfortable and stylish winter coat for decades, if not centuries. Warm, fashionable and highly versatile, this coat can be effortlessly dressed up or down depending on the needs of the day. Just like the Little Black Dress, the camel coat is a timeless garment, which will continue to dominate winter trends for time to come.

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If your first reaction drags you back through teenage memories of horrendous fashion disasters, rest assured that such thoughts are not about to manifest into reality. Punk fashion now has an adult cousin, which balances the trend with more sensible fashion choices. Think along the lines of vintage tees, stilettos, statement boots, oversized blazers and leather coats to punk up your wardrobe without having to step out of your comfort zone.

01.

Ami

05. 1980s comeback Most of 2019 seems to have been an ode to the 1990s and this winter we’re shifting a decade back. If puffy sleeves intimidate you and bold is not exactly your second name, there are more subtle ways of participating in this stylistic throwback without the need to rock neon legwarmers and mullet-inspired hairstyles. Be it by opting for turtlenecks, oversized denim jackets, thick headbands or skirt suits, the possibilities of reworking the decade into your wardrobe are endless.

06. Snakeskin shoes We’ve already experienced leopard and dalmatian prints but now snakeskin is taking over the scene. Although snakeskin bags have been a favourite accessory for modern celebrities, the print is lending itself to footwear. Be it boots, flats or stilettos, the pattern is sure to be the decoration of choice for ankles all over the world. cc

02.

Mango

Dior

Tabitha Simmons

Versace

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04.

Balmain

05.

06.

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GADGETS

Tech trends

03. Light therapy lamp

With Christmas around the corner, these gadgets are ones to consider as gifts, or even as end-of-year splurge presents from you to you. From health trackers to functional gadgets, Jillian Mallia explores the latest trends on the market.

01. Device wireless charger

9to5mac.com

01.

Charging your phone has never been this stylish. The Courant Catch: 2 Device Wireless Charger gives your device that boost it needs on the latest leather charging pad on the market. Toss your phone or AirPods on this patch while you get on with your day and then grab them and go when you’re rushing out. They’ll be ready to help you with your busy checklist when you do.

02. Customisable backpack

ohthattech.com

02.

This is a cool pick to consider for yourself or for a loved one this Christmas. It’s the smartest tech-friendly and totally customisable backpack out there with an LED screen that allows you to design any colourful creation you like. It comes in black, grey and a cool yellow as colour options, and is absolutely waterproof.

Are you a little stressed with your workload and not sleeping much? Then the Philips SmartSleep light therapy lamp will help solve that struggle. The lamp is designed to help sleepers wind down at night, coming with a relax and breathe function, and also simulates a natural sunrise to help people wake up gradually.

04. Cocktail machine Whether it’s for after-work drinks or weekend get-togethers, this cocktail machine is a gadget to consider for your social life. This carefully curated machine will precisely measure your cocktails (like margaritas, martinis and the works) to ensure perfectly balanced cocktails with a blended taste. All you need to do is supply the alcohol and the machine will take care of the rest.

05. Upright posture trainer With many people sitting at their desks for long hours, it is no wonder that many complain of back problems. But this device could be your lifesaver. This little gadget can help you with your posture problems. All you have to do is place it on your back and it will give you a slight vibration every time you slouch. The gadget will also send you results on a downloadable app to help you track your progress.

06. Smart water bottle Even your water bottle can be smart. The Icewater 3-in-1 smart water bottle is the perfect (and also fun) way of getting your daily water intake. It glows, in really cool colours no less, for an hour to remind you to drink and also comes with a Bluetooth wireless speaker.

And that’s not all. It even has a setting that allows you to have a dancing colour lights mode for those that need that extra push. cc

03.

bestbuy.com

engadget.com

05.

06. amazon.com

04.

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bestbuy.com DECEMBER 2019/JANUARY 2020

CC MEET THE ARTIST

Life of a master Building on the foundations set by his father, the late Hugo Carbonaro, he has shaped himself a career that moulded both the artist and the local art scene. Caroline Curmi visits celebrated art veteran Pawl Carbonaro to decipher the enigma behind his illustrious persona.

Photos by David Agius for Hush Studios

A

rtists often fall victim to stereotypes which exaggerate the painter’s eccentric and whimsical traits, yet, Pawl Carbonaro’s embodiment of such claims elevates the general status of misfit and doubles as an unapologetic expression of his disdain for social norms. Sitting in his airy apartment adjacent to ceiling-high windows overlooking the Northern Mediterranean, Pawl immediately sets the tone of our conversation: “I’m not a fan of small talk,” he whispers gruffly in between generous sips of wine.

Initial questions are answered in very little detail, and my inquiry about his usual day resulted in the following answer: “I am rather unsociable before 10am, and between 2pm 80

and 4pm I induce myself into a coma.” His dry humour is as refined as his tastes, and he points me towards his biography to source the finer details of his life journey.

The reasons for foregoing public exhibitions of his work are affected by similar motives. Pawl reveals the attention he receives on such occasions is unsolicited: “it would be far better if, during exhibitions, people looked closer at the art on display than regarded the event as a purely social one,” he explains. For Pawl, socialising is not a trivial matter but a delicate combination of good company, good food, good energy and good timing. The frequent refilling of his wine glass not only acts as a symbol of his appreciation for the good life but also signals

his discomfort in dealing with imposed social intimacy.

Categorising Pawl’s superficially abrasive nature as a cantankerous display of emotion would be a great disservice to the indomitable spirit concealed beneath.

Unbothered by the nuances of social convention, the former Sliema resident has foregone the hustle and bustle of Malta’s increasingly congested streets in favour of self-imposed exile in the Gozitan village of Zebbug. “I avoid Malta at all costs,” the artist admits unremorsefully. Pawl regards the island as a stepping stone in a journey that feeds his unquenchable thirst for greener pastures. “The only reason I will willingly set foot in Malta is to make my way to the DECEMBER 2019/JANUARY 2020

CC MEET THE ARTIST

“The only reason I will willingly set foot in Malta is to make my way to the airport.”

Xwejni Gozo (2019)

airport,” he chuckles heartily, before shielding his grin with his glass.

Pawl’s extroverted yet fleeting display reveals traces of an innate mischievous streak that has characterised his life trajectory.

The walking definition of a bohemian as a youth, his deep-rooted lust for life landed him in more than one pickle but no reprimand amassed throughout the past 72 years has managed to thwart his distinct and highly individualistic relationship with the world.

Even when subjected to what he refers to as a torturous stint as a respectable bank clerk, his focus always lay with finer pursuits.

Despite studying in one of Italy’s most prestigious art academies and effectively following in his father’s footsteps, his choice to relinquish financial stability and a guaranteed pension for a career in art shocked society.

Pawl’s reflections highlight the tremendous shift Maltese society has undergone in the past half-century: “Back then, such a move was classified as taboo because public belief dictated that one couldn’t survive on art,” Pawl says as he leans slightly towards the paintings adorning his living room wall. “I wouldn’t say I’ve performed badly on that front,” he verbalises thoughtfully.

Cliffs (2019)

Lago di Zeo (2019)

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CC MEET THE ARTIST

Burano (2019) - Photo by Pawl Carbonaro

Asked about his artistic process, Pawl’s words highlight his non-linear approach.

On average, he works on seven paintings simultaneously. “Not literally at the same time, mind you,” he clarifies, pointing out that he alternates between different projects, sometimes touching up one painting and then moving on to add a couple of elements to another. I point to one of the paintings and enquire specifically about the process behind its creation – was it governed by instinct or the result of meticulous planning? Pawl rejects my prompts and replaces them with one single word: “recycling.”

The artist reveals that he often recycles sketches, photographs and specific elements sourced from earlier works, and extends their life through a reinterpretation. On days when he is not travelling, his schedule is structured in a strict manner. “Every morning I have a slice of toast and a coffee, and head upstairs,” he says, referring to the apartment above his home, which has been refashioned into a studio. His serious act crumbles as his shoulders shake with laughter. “Granted, I don’t spend long periods of time up there but, at least, I respect the discipline needed to get work done,” he confesses, as he follows this up with another revelation: “I don’t think I’ve worked more than three hours a day.”

While some might consider such an unconfined workday a luxury, Pawl notes DECEMBER 2019/JANUARY 2020

that putting paint to canvas is not an artist’s only job. “You have to remember that visiting museums and sketching sessions both provide material that can later be imported into a painting,” Pawl clarifies. Noticeably more relaxed, the artist abandons his wine glass and invites me to ditch the comfort of his quaint living room for a new world upstairs.

“Back then a career in art was classified as taboo because public belief dictated that one couldn’t survive on it.”

Sorrentino - Photo by Pawl Carbonaro

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CC MEET THE ARTIST

Photo by David Agius for Hush Studios

“You have to remember that visiting museums and sketching sessions both provide material that can later be imported into a painting.”

The stylistic difference between the two levels of the same building is astronomical but before I have a chance to react Pawl justifies the tremendous shift by shooting a reassuring comment my way: “It’s organised chaos.” His words reveal a different kind of paradise to the one we had just vacated.

Littered with benches, there is little room to manoeuvre through the aisles that separate one workbench from the other. Each flat surface houses its own array of countless jars stuffed with paintbrushes, easels propping

up half-finished paintings and various-sized paint tubes, yet, despite the inability to decipher one surface from another, Pawl’s words scream truth.

At face value, the view is an overpowering visual made up of multiple elements crowded in a small space. Yet, despite the sensory overload, it generates an organic sense of peace, warmth and freedom. Like his living quarters, the studio boasts an infinite supply of natural light that fills the rooms with more than literal luminosity.

Pawl leisurely paces around the studio, and, almost as if he perceives my next query, he explains that this is where he has free reign to operate under his own principles. “I know exactly where everything is even though it may not be in clear sight,” the artist remarks. He continues that the agreement he shares with his wife of 12 years is one that benefits both: “My wife is not allowed to alter anything in this studio, and I reciprocate with our living quarters.”

His wife has, however, influenced some of his experimentations. Perched on a table against a wall lies a colourful collection of neatly organised pizze of Venetian glass, out of which smalti are cut. “My wife was the one to introduce me to it,” he admits. This is not the only instance in which he has veered into other mediums, and he patiently explains his involvement in digital art. Inspired to experiment through a British art publication, his attempts proved unfulfilling. “I saw that if I or you, or anyone else, sketched the same object, the final result would be the same,” the artist explains, continuing: “I know there are a lot of different techniques to imitate the real deal but it just doesn’t compare.”

Our morning ends across the street in a semi-underground garage, which has been remodelled into a sophisticated gallery. The venue marks a perfect balance between Pawl’s studio and living quarters, and boasts some of his most spectacular works.

Cliffs (2019) - Photo by Pawl Carbonaro

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DECEMBER 2019/JANUARY 2020

CC MEET THE ARTIST

Pellestrina (2019) - Photo by Pawl Carbonaro

It is often commented that photographs do not complement paintings and this moment marks the ultimate depiction of this remark.

The vibrant and powerful abstractions and landscapes which Pawl’s name has become synonymous with are majestic creations, and closer inspection reveals the intent behind each brushstroke.

His work needs not just be seen but also experienced: it is through standing in front of his works that one is able to relinquish acquisitioned truths and appreciate – if fleetingly – a modus operandi that is not

“I know exactly where everything is even though it may not be in clear sight.”

often given the space to surface in modern society. Most of the collection is up for sale but Pawl has no qualms in admitting that a select few pieces have been priced higher than regular paintings to deter collectors from placing a bid: “I think I deserve to keep some of my work to myself at this point,” he comments, as he bends down to inspect a

stack of shelves.

Pawl rummages through his wine collection, carefully weighing out an imminent conquest. With lunchtime approaching, Pawl’s focus has now shifted to more earthly pleasures. It is my cue to leave, my perception of abstract art (and the artist) completely changed. cc

Photos by David Agius for Hush Studios DECEMBER 2019/JANUARY 2020

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CC ENVIRONMENT

The case for going electric Making the move from fossil-fuel powered vehicles to electric or hybrid alternatives is no longer as far-fetched as it used to be and, in time, it will likely become a necessity.

Martina Said delves into the incentives, benefits and reasons for going electric.

E

nvironmental awareness and the impact of human activity on the natural environment has never been more mainstream and as talked about as it is nowadays, and it’s about time too. Protests, petitions and social media outrage have thrust the issue of climate change into the spotlight, nationally and, even more so, globally, making it virtually impossible for the powers that be to ignore the need for urgent and desperate change.

Among the many topical subjects in Malta under the umbrella issue of the environment is air pollution, which inevitably leads to the discussion of the number of combustion engine vehicles on our roads and all the direct negative effects these bring with

DECEMBER 2019/JANUARY 2020

them. Alongside this, the discussion on electric vehicles has come to the fore and is now a central part of the conversation on how to drastically reduce, and also discourage, the use of fossil fuel-run vehicles altogether.

This ambition was made clear by Government in its 2020 Budget last October.

Finance Minister Edward Scicluna announced that Malta was aiming to be carbon neutral by 2050 and Government will be unveiling a strategy next year on how to achieve it. Part of the strategy will include a cut-off date set

by Government for the purchase of petrol and diesel cars. After this date, new vehicles entering Malta will have to be electric or run on alternative fuels.

Although a cut-off point has raised concerns

of a sharp increase in the purchase of internal combustion engine (ICE) cars in the run up to the deadline, thereby increasing their number on Malta’s roads even further, the counterargument is that an obligation, gradually and over several years, to buy an electric vehicle from the cut-off point will increase demand of electric or alternative fuel models and, therefore, push prices down, making them more affordable to the consumer.

To this end, MEP Miriam Dalli has been tasked with overseeing Malta’s move towards zero and low-emission vehicles (ZLEVs) and has forged an agreement with the EU to have cars and vans emit 57.5 per cent less carbon dioxide by 2030. The MEP also assured that the transition will not burden consumers.

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CC ENVIRONMENT Dr Dalli was reported by the local media last October saying that “people who have cars with an internal combustion engine will need to replace it and we, as policymakers, must guarantee that, when that time comes, the prices of emission-free vehicles are as affordable as combustion powered automobiles.”

Several Government incentives announced in the 2020 Budget highlighted this drive for electric car adoption. Owners of electric cars will be charged a lower rate of €0.1298 per unit for electricity when they charge their car at home as of 1st January 2020.

The Budget also referred to the installation of more charging points across Malta and Gozo for electric cars and all fuel stations will gradually be required to provide gas and charging points for electric cars. A grant of up to €1,500 for scrapping old vehicles will continue being offered as well as a €200 grant for the conversion of petrol-fuelled cars to natural gas-powered.

These incentives build on existing schemes and grants which continue to be made available to anyone looking to buy an electric vehicle. Among them are a €7,000 grant when registering a new battery-electric/ plug-in hybrid M1 and N1 vehicle, and another

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vehicle with an ICE which is at least 10 years old (since its manufacture date) is scrapped, and a grant of €6,000 upon registering a new battery-electric/plug-in Hybrid M1 and N1 vehicle without scrapping another vehicle.

A grant of up to €200,000 is available to companies that change their vehicle fleet from ICE to electric vehicles. Additionally, since 2018, electric and hybrid vehicles have been exempt from registration tax and the annual road licence for five years from the date of registration. This measure was also included in the 2020 Budget.

Although adoption has been slow, the trend of electric cars is gradually catching on. Data compiled by the National Statistics Office on the stock of licensed motor vehicles in Malta by Q3 2019 shows an increase of 164.4 per cent over the same period in 2018 – up from a total of 640 to 1,692 electric vehicles, including passenger cars (1,038), motorbikes and e-bicycles (444), as well as goods carrying vehicles (57).

There’s also been a notable increase in the number of hybrid (electric/petrol and electric/diesel) vehicles on our roads from Q3 2018 to the same period in 2019 – from 1,247 to 1,963 electric/petrol vehicles and from 30 to 53 electric/diesel vehicles.

“The stock of licensed motor vehicles in Malta by Q3 2019 shows an increase of 164.4 per cent over the same period in 2018.”

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CC ENVIRONMENT

Fiscal incentives undoubtedly play a part in the changeover from ICE to electric or hybrid vehicles but so do the release of new models by car manufacturing giants that are taking turns to announce greener versions of their established designs. Flooding the market with emission-free vehicles will help make them more affordable sooner rather than later.

When addressing the cost of electric vehicles last October, Dr Dalli said “the number of available plug-in hybrids and electric cars in 2019 stands at 60; by the end of 2020 we will have 176 car models and by 2025 we will have 333 models available on the market”.

These estimates may become reality sooner than predicted, judging by the several announcements and releases by major vehicle producers. In October, Volvo released its first all-electric XC40 Recharge, along with a whole range of futuristic features, such as an infotainment system built on Google’s android automotive software. The Swedish company also made the gutsy pledge that half its cars will be electric by 2025 and the carbon footprint on each car will be cut by 40 per cent by the same year.

In November, Citroën announced it will offer electric vans across its entire range of light commercial vehicles. The models leading this shift are the Citroën Dispatch (in some countries referred to as Citroën Jumpy) and Citroën Relay (also known as Citroën Jumper), fully electric versions of which will be launched in 2020, while the electric version of the new Berlingo will follow in 2021.

Japanese car giant Honda also announced that all its mainstream car models in Europe will have electric versions by 2022 and, in order to speed up its electric ambition, it will launch six hybrid models over the next 36 months, led by the Honda e, an all-electric vehicle in Honda’s range, and the hybridonly Honda Jazz. The range of vehicles will include mild-hybrids, traditional hybrids, battery-electric and plug-in hybrid vehicles.

Motorbike manufacturers too are jumping on the electric bandwagon. Austrian manufacturer KTM, which also owns Swedish motorcycle designer Husqvarna, is preparing to release a vast variety of e-products from all its brands over the next two years.

Closer to home, efforts are being made to not only encourage the use of electric modes of transport but also to instil a mentality of the need to make the change.

When architect Jonathan Mizzi, from Mizzi Studio, released the Bus Reborn concept, it appeared to marry two crucial components – old and new, nostalgia and change – in the most innovative of ways. The Bus Reborn concept comprises a fleet of electric buses featuring several distinct characteristics of the traditional Maltese bus.

DECEMBER 2019/JANUARY 2020

The benefits of electric vehicles Cost effective Electric vehicles may seem pricey now but they do offer great value for money in the long run. While it’s expected that the more electric models flood the market, the cheaper they’ll become, the cost also largely depends on the sophistication of the model you opt for, the make and the type of vehicle.

Cheaper to run The cost of running and maintaining an electric vehicle is far lower compared to petrol and diesel cars over the course of their lifespan. The engine of an electric car is composed of fewer moving parts that are susceptible to damage, meaning less wear and tear, and less frequent services.

Environmental sustainability You might think this is the last ‘priority’ on your list of reasons but it should be a priority of equal importance. Air pollution is a serious concern in Malta for current and future generations, and adopting an electric means of transport is one significant way of making our air cleaner.

Fiscal incentives Over the last few years, Government has introduced several fiscal incentives to encourage motorists to buy electric vehicles, making the move more affordable from the outset. It isn’t just the vehicle that’s being made more affordable; in the 2020 Budget, Government introduced a measure whereby owners of electric cars will be charged a lower rate of €0.1298 per unit for electricity when they charge their car at home.

A quieter experience An unmistakable feature of electric cars is noise, or lack of it. They’re super silent vehicles, making the driving experience more pleasant and relaxing, particularly when stuck in gridlock traffic.

A better performance Contrary to popular belief, the performance of electric cars, in terms of power, torque and acceleration, is considered to be superior to combustion engines. Because their heavy batteries are mounted in the car’s chassis, they have a lower centre of gravity and, therefore, tend to be more stable, particularly around tight curves and bends.

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CC ENVIRONMENT

“Several Government incentives announced in the 2020 Budget highlighted this drive for electric car adoption.”

The idea drew enough attention to catch the eye of Ian Borg, the Minister for Transport, Infrastructure and Capital Projects, who lauded the design as a forwardlooking one he hopes could be realised in the future. The minister went on to launch the concept in Valletta last October, reiterating Government’s commitment to investing in more sustainable and alternative means of transport, both for a cleaner public transport system and cleaner air.

Change often begins when small steps start being taken to reach a goal, be that on a personal or business level, and, often enough, others begin to follow suit. Local property firm, Dhalia Real Estate, recently made headlines when members from its Gzira office began using electric scooters to get around, with plans to roll out the initiative to other branches, particularly those located in high-traffic areas, such as Sliema and St Julian’s. The scooters can travel over 30 kilometres on one charge and can be folded for portability.

Not only could an initiative like this mitigate environmental damage but it also reduces the number of vehicles on the roads and the number of occupied parking spaces. The solution might not work for

everyone, or for every business, but options and alternatives do exist, making the decision to go green – increasingly a need rather than just a want – easier and more affordable. cc

CC make the headlines

BOV becomes the first local bank to offer digital wallet services With new emerging technologies, digital wallets are becoming increasingly popular around the globe. Bank of Valletta has recently become the first local bank to introduce digital wallet services in Malta with the launch of the BOV Pay app.

The new app, which is currently available for download from the Google Play Store, allows you to register your BOV visa credit and debit card details on your NFC enabled smartphone. From then on, you will be able to effect contactless mobile payments in store without having to carry the actual cards in your wallet.

The BOV Pay app is also available on the Garmin Pay™ platform where contactless payments can be effected by means of a Garmin Watch through the Garmin Connect™ app.

Why should you pay for health insurance?

We understand that health insurance isn’t cheap, especially when you’re already paying a premium on other insurance services such as home or motor and whatnot. However, the unfortunate reality is that you can never truly foresee what medical treatment you might require, and going without health insurance can end up costing you even more!

Learn more about why you should invest in your health.

DECEMBER 2019/JANUARY 2020

The BOV Pay app enjoys the full security features enabled on the smartphone.

Payments are authenticated with the fingerprint security of the phone. In order to effect a payment, the smartphone just needs to be unlocked.

With the new BOV Pay, the future of payments is already with us, and all you need is to just tap and pay the easy way! cc

1. Privacy. With health insurance, you will find that having your own room in a private hospital is actually the norm.

2. Choose your specialist. We understand that for most medically-related incidents, you would prefer to consult with a specialist of your own choosing, and so we promise to provide you with that flexibility!

3. Investment outweighs expense. Even though health insurance is often seen as a bit of a gamble, it will still be your safeguard under the circumstances that you do find yourself needing it.

4. Financial protection and peace of mind.

It goes without saying that the greatest wealth is your health. Even though health insurance may seem pricey, the cost of injury or illness can be even higher. Give yourself the peace of mind you deserve.

5. No waiting list. Despite the fact that public health care in Malta is both very effective and free of charge, it can still come with some long waiting times. By using private healthcare through health insurance, you can avoid these waiting times without having to expend your own savings.

Further information about this innovative and convenient method of payment can be obtained from www.bov.com Issued by Bank of Valletta p.l.c., 58, Triq San Żakkarija, 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).

a number of new and improved benefits for health insurance. At a reasonable additional premium, clients may benefit from: · Our Routine and Preventive Care Cover which allows clients to undergo routine tests as well as monitor chronic conditions.

After all, prevention is simply better than cure. · A Dental Benefit which applies to all individuals with Inpatient and Outpatient policies, and covering a range of dental treatments. · The Waiver of Standard Exclusions Extension which provides customers with the option to waive standard policy exclusions for vaccinations, allergies and clinic fees at an additional premium.

Keep reading to see what else our health insurance policies have in store for you.

Other improvements also include: · An increase in the limits of our existing table of benefits · Worldwide cover varying in line with the scheme chosen and · An extension of our emergency telephone assistance for all levels of cover.

It goes without saying that health insurance can help you bypass the mishap of paying for any costs out of your own pocket by safeguarding your medical expenses for you. cc

Our new and improved benefits As of 2019, MAPFRE Middlesea has introduced

Visit www.middlesea.com/insurance-mt/ individuals/health-insurance for more info.

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CC make the headlines

Introducing the HR Quality Mark Would you like to have your HR practices nationally recognised?

The Foundation for Human Resources Development (FHRD) introduced its HR Quality Mark at the annual HR Conference and Expo on 23rd October 2019. The objective of this award is to recognise and acknowledge the professionalism, competence and contribution of the HR function in any organisation for a period of three years. This will be awarded to organisations, irrelevant of size and sector, which can provide concrete evidence of high-quality HR practices.

Recommendations for HR improvements and practices will be submitted to each organisation.

Organisations receiving this Quality Mark will be nationally recognised and internally acknowledged by raising the status of the HR function. Selected evaluators will assess the participating organisations on seven content areas namely: human resource policies and practices; recruitment, selection and talent management; compensation; employment and industrial relations; performance management; human resource

The FHRD Quality Mark sub-committee at the launch of the HR Quality Mark.

Mark Bugeja, Anne Marie Thake, Matthew Naudi, Claire Farrugia

information systems; and people training and development.

Interested organisations are to submit their completed application form by 31st January 2020. FHRD will verify each HR Quality Mark application. Two evaluators, who are knowledgeable and competent in the HR field, will visit the workplace between February and March 2020 to assess the organisation’s HR practices against the aforementioned

seven content areas. An event will follow in May to award the HR Quality Mark to those organisations deserving of this award. cc If you are interested in applying for the HR Quality Mark, access the application form from the FHRD website www.fhrd. org/hr-qualitymark. For more info contact FHRD on E: qm@fhrd.org; T: 2131 3550; www.fhrd.org

CC focus

The Young Chamber: A growing business movement With the new branch of the Young Chamber Network going from strength to strength, The Commercial Courier looks back on an exciting couple of months of networking, brainstorming and activities from among this pool of young entrepreneurs.

T

he Malta Chamber of Commerce has long been the place for a meeting of business minds; a space where entrepreneurs can get together, share ideas, support one another and bring change. Now, though, a new drive is ongoing to extend its reach further among the younger entrepreneurs on the island, and to encourage them to not only find their place within the Chamber, but to drive it too.

With this in mind, the Young Chamber Network (YCN) was launched earlier this year, and it has quickly become the preferred environment for young entrepreneurs to meet, share their ideas and network. In fact, the scope behind YCN is to bring together a high-powered pool of individuals who can support each other professionally, within the context of the Chamber.

DECEMBER 2019/JANUARY 2020

Photos by Daryl Cauchi

“This concept was well received by the participants who attended the events that were organised so far,” says Chamber Director General Kevin J. Borg. “The launch took place in July in the Malta Chamber’s stunning courtyard and served as an introduction to the new concept. The young entrepreneurs introduced themselves and immediately expressed how they saw themselves participating and making the best of this opportunity.”

“In fact, what may arguably be considered an intimidating forum for new or young members is now being made more accessible than ever. After all, the whole ethos of this new movement is to create an environment that is welcoming to younger entrepreneurs, so that it can help them to establish themselves in the Chamber. The YCN has the power to become an authoritative forum for sustainable business growth.”

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Young Chamber Network members spent an afternoon on the golf course, networking and discovering a new sport.

Activities have continued in earnest since the launch. Organisers moved straight into the planning of the next event, which was held on Monday 11th November, and offered YCN members an exclusive preview of the Chamber’s upcoming Economic Vision.

“The Chamber is well into the advanced stages of designing a new Economic Vision for Malta for the years 2020-2025,” continues Mr Borg. “In fact, 28 CEOs from

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Malta’s foremost and leading businesses have been enrolled to share their ideas on where they see their sectors and Malta’s economy, in general, going in the next five years.”

During the event, the Chamber shared this vision with the members of the YCN, as it is interested to learn its young members’ take on it, and to bring them on board this ambitious and exciting journey.

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Jo Caruana facilitated the conversation on the subject, which featured Chamber President David Xuereb, Deputy President Marisa Xuereb and a presentation by Mr Borg. Following the discussion, those present shared a glass of wine (compliments of Farsons Direct) and refreshments by Infinitely Xara in a relaxed networking environment.

The set-up was provided by Karl Borg Events.

Also in November, YCN members were offered a completely different kind of networking event – ‘An Afternoon at the Golf Course’, during which members of the YCN tried their hand at golfing. The event started DECEMBER 2019/JANUARY 2020

with lunch at the Putter’s Inn at the Royal Malta Golf Club. This was followed by a golfing session, which was held under the guidance of professional coach Henning Schulze Doering from the Royal Malta Golf Club.

“It is already exciting to watch these dynamic young entrepreneurs come together, and the sharing of ideas has been constant.

We can already see great collaboration opportunities in development and have no doubt that, together, they will bring about positive change – not just to the Chamber, but to the future of the Maltese business landscape as a whole,” Mr Borg concluded. cc

“It is already exciting to watch these dynamic young entrepreneurs come together and the sharing of ideas has been constant.”

– Kevin J. Borg, Director General, Malta Chamber

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STYLE

Office trends

04. The importance of outdoors

The office design trends anticipated to take the world of interiors by storm in 2020 revolve around sustainability, flexibility, and community.

Martina Said highlights what to expect.

There’s been a lot of emphasis on bringing the outdoors in over the past few years but now the emphasis is on carving out an outdoor space at the office, no matter how big or small. While greenery and biophilic design is effective, nothing beats breathing in some fresh air and feeling the sun on your face at the office.

01. Sustainable fabrics

05. Community

Demand for sustainable fabrics is on the increase in the world of interior design after gaining popularity within the fashion industry. Eco fabrics, such as bamboo, recycled wood, organic cotton and hemp are increasingly replacing synthetic and man-made fabrics as they are friendlier towards animals and the environment.

As everything, including work, becomes increasingly digitised and, therefore, remote, the emphasis on community has never been greater. Office design is revolving around making the workplace more appealing, comfortable and inviting, and this includes using innovative features such as an in-house canteen or restaurant, drinks, fridges, fitness areas and even showers.

02. Clashing colours Muted and neutral colour palettes are being replaced by loud, contrasting and, sometimes, clashing colour choices in office design. Just as fashion houses debuted collections featuring colours we didn’t think we’d see together – such as pink and red – furniture designers are catching on and making the trend their own.

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Porthos

06. Flexibility Multifunctional workspaces have climbed the popularity ladder in recent years, leading to the importance of flexibility, translated through a move away from heavy, bulky and immoveable furniture to lightweight, ergonomic, portable and multifunctional office and design elements that can fit into any space. cc

De Vorm Pod

03. Acoustics With all the benefits of an open plan office comes one major downside: the lack of privacy. Interior design trends in 2020 are pointing towards furniture and set-ups that are shielded, reduce surrounding noise levels, and allow a certain level of confidentiality through stylish and sound-proof chairs, pods and booths.

REVIEW

02.

www.idealhome.co.uk

03.

04.

www.officesnapshots.com

05.

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www.officesnapshots.com

06.

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Creating a unique culinary journey Around this time last year, the sister isle welcomed a unique foodie concept the likes of which Malta and Gozo hadn’t seen before. The sleek Vini e Capricci by Abraham’s, a product of owner Abraham Said’s vision and the stellar work by the team at KEIRO Architects, brought together a state-of-the-art wine cellar with a cutting-edge kitchen and suite, combining a whiskey lounge, retail space and vinoteca in a welcoming space where the public can not only purchase but also experience quality food and wine first-hand. Sarah Micallef speaks with the team behind the project, Keith Schembri, Rosianne Schembri and Francesca Miceli, about how it all came about.

“I

t started out as a compact shop, which had become outdated and restrictive,” begins Keith Schembri, lead architect and designer of the design team behind Vini e Capricci. “Our client, who frequently travels around the world to source new products, had lots of ideas of new ways of displaying products but didn’t have the space and the facility in the existing shop to do it,” he maintains, explaining the owner’s vision to take customers on a culinary journey within the shop.

At the time, most of the space within the building itself was used as stores and offices, so the architects began with some minor structural alterations to open the space up and bring more natural light in. “The client’s offices were transferred to the top floor, also designed

by KEIRO Architects, so the space they were occupying was liberated to increase the retail area,” fellow architect Francesca Miceli adds, “while the stores were shifted to another location,” continues architect Rosianne Schembri. Having opened up the space, 108

the architects prioritised shelving space while keeping full circulation throughout, creating different connections between the different zones in the retail space and using innovative shelving solutions to subdivide the space into different zones; “In the case of the whiskey lounge, for example, we sectioned it off using open shelving so clients are cocooned in, yet the space is still open,” states Rosianne.

Speaking of the client’s brief, Keith notes that, apart from creating a unique culinary experience in the form of a journey, the idea was to move as far away as possible from the ‘supermarket’ concept, where you’re just there to shop and leave. “We incorporated warm and calming lighting, and added seating throughout to encourage visitors to stop and relax,” he says, adding that customers can even taste certain delicacies before purchasing, creating a very different experience, or even sit down at the vinoteca and sample the incredible fare prepared by the in-house chef and his team.

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“It’s not fussy or overpowering.

Everything is subtle and there for a reason.”

Photos courtesy of Hush Studios, KEIRO Architects – www.keiroarchitects.com & Vini e Capricci - www.viniecapricci.com

DECEMBER 2019/JANUARY 2020

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The shop includes a ‘live kitchen’ where a chef cooks in front of the clientele using products available at Vini e Capricci, allowing them to taste the products and suggest innovative recipes. This was consciously placed in the central part of the deli and butcher area, forming the heart of the room and inviting clientele to access the vinoteca through one of the links to savour the à la carte menu or request platters, particular cuts of meat, or bottles of wine to enjoy there and then.

“It’s all linked. If you’re dining at the vinoteca, you can select your own wine from the wine cellar,” Francesca says, adding that there are different entrances to the vinoteca, which make it easier for the adventurous client exploring the outlet to discover it.

The architects looked to the products that would be the stars of the show for inspiration when it came to the design of the space. “We noticed that the majority of the items were fine and premium foods, which needed to be displayed in a particular way, using fitting materials. The DECEMBER 2019/JANUARY 2020

emphasis is on quality. We also didn’t want the shelving to overpower the products, so we chose warm coloured woods to add warmth and richness,” Keith continues, noting that additional detailing went in the

whiskey lounge, as they wanted to showcase the whiskey area as a jewel of the space.

“It wasn’t just a case of putting items on shelves; we wanted to give the products the importance they deserve.”

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“The majority of the items were fine and premium foods, which needed to be displayed in a particular way, using fitting materials.”

Keeping lower levels of lighting, the design team chose pendants for focal points and used flexible lighting solutions that enable the client to add or reduce light as needed. The primary materials used were wood, Carrara marble, glass, paired with leather for the vinoteca seating and metal. They also incorporated some traditional elements as a nod to local culture, such as the Maltese gold lion doorknobs located in the whiskey lounge and vinoteca entrances.

The result is a contemporary and clean aesthetic that doesn’t compromise on warmth and comfort. “It’s not fussy or overpowering. Everything is subtle and there for a reason,” Keith points out. “It feels cosy and warm. It’s not somewhere that makes you feel like you’re in a rush to get out,” Francesca adds.

The delicate balance between aesthetic appeal and practical usage of space was of utmost importance, given the nature and multiple uses of the space. “The client wanted to include as much shelving and equipment as possible to make the most of the space, so we needed to cater for that but, at the same time, we needed to create enough space for people to move around in comfort,” Francesca explains. Indeed, apart from shelving and counter space, the team needed to look at accessibility and functionality. “The shop is completely accessible, due to the fact that most of the retail space was designed on one level and an elevator was added to link the lower level,” Keith affirms.

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CC DESIGN TRENDS Armed with a clear vision and the full support of their client, the KEIRO Architects’ team’s main challenge was timing. “The timeline was a bit tight,” Keith admits, explaining that the project was assigned to them in August of last year, and the race was on to open before Christmas of the same year. “We designed it in a few weeks and commissioned a foreign company to create all the custom elements, which were produced abroad and assembled locally according to our designs,” he says.

This posed a challenge. “We were designing everything locally, and all the furniture was being produced in a different country,” Keith remarks, adding that technology helped for all parties, located in different countries, to constantly keep in touch. “Because of the tight timeframe, site works were ongoing while the furniture was being produced, so everything on site had to be exact to the millimetre. If we were opening a doorway, we needed to make sure that all the measurements were exactly as per issued drawings.”

Having not worked with this foreign company before, the team at KEIRO Architects could only hope they would fulfil their vision. “They promised to deliver within the timeframe, and they did. We prepared all drawings, documentation and visuals, and they understood exactly what we were looking for. Despite the challenges,

everything came together during the last week.” There were a few heart-stopping moments when it looked like different items wouldn’t arrive on time due to shipping delays, they reveal, but it all worked out in the end, with some of the seating even arriving a few short days before the deadline.

Looking back on the process, I ask about their proudest achievements, and the team agrees: the whiskey lounge. “The atmosphere and the way the lighting worked out in this space is something we’re very proud of. We wanted to celebrate the colour of the whiskey and had a very specific vision for the lighting in that area,” they say, adding that it was quite a challenge, involving a last

minute compromise through which they had to modify the lighting detail and the electrician had to modify each individual shelf to incorporate the lighting. “With all the manufacturers working on the project, it was certainly the most time-consuming room, and it’s our biggest achievement.”

They also admit that working with a client with a clear vision and complete trust in the team was a big part of the success of the project. “Abraham gave us his vision, told us what products he wanted to display and left it in our hands. We were happy to have quite a blank canvas to work with, and he was happy with the way it all worked out in the end.” cc

“Because of the tight timeframe, site works were ongoing while the furniture was being produced, so everything on site had to be exact.”

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