The Commercial Courier August/September 2014

THE COMMERCIAL/55

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

AUGUST / SEPTEMBER 2014

Historical splendour Bringing a magnificent palazzo to life

NEWSPAPER POST GOLD COLLABORATING PARTNERS

IN THIS ISSUE THE IMPACT OF THE LIBYA CRISIS ON THE LOCAL ECONOMY / MALTA’S MEDIUM-TERM COOPERATION PLAN WITH CHINA / ECONOMIC VISION FOR MALTA 2014-2020 / MINISTER EVARIST BARTOLO ON HOW EDUCATION AND EMPLOYMENT SHOULD WORK TOGETHER / A GRITTY LOOK AT THE MALTESE THROUGH INIGO TAYLOR’S DOCUMENTARY PHOTOGRAPHY PROJECT / FINANCE MALTA CHAIRMAN KENNETH FARRUGIA ON THE BRIGHT FUTURE OF FINANCE IN MALTA / THE LATEST BUSINESS NEWS

THE COMMERCIAL/55

COURIER AUGUST / SEPTEMBER 2014

food trends

85.

10.

42.

42 MEET THE ARTIST

10 COVER STORY

EMPHASISING THE REAL

LIBYA IN CRISIS: THE IMPACT ON MALTA AND LOCAL BUSINESS

Sarah Micallef discovers Inigo Taylor’s documentary photography project, The Maltese, which has been taking social media by storm owing to its gritty brand of photography.

As the conflict in Libya spirals on, Sarah Micallef discovers the far-reaching effects, and how Malta, and Maltese companies based in Libya, are also in the line of fire.

17 COVER STORY “WE HAVE TAKEN RELATIONS BETWEEN MALTA AND CHINA INTO A NEW ERA” Following the signing of a Medium-Term Cooperation plan with China, Martina Said speaks with Prime Minister Joseph Muscat and Economist John Cassar White about what this agreement holds in store.

25 BUSINESS

78 DESIGN TRENDS AN EXPERIENCE FOR THE SENSES

32.

32 INTERVIEW LIVING AND LEARNING Martina Said speaks with Minister Evarist Bartolo about how the spheres of education and employment can work together.

87 CONSTRUCTION

GIVING MALTA ‘20/20’ ECONOMIC VISION

39 INTERVIEW

In light of the recent launch of the Malta Chamber’s Economic Vision for Malta 20142020, Jo Caruana talks to the experts about what these recommendations mean for the island’s economic future.

MALTA BECOMING AN IMPORTANT HUB FOR BANKING AND FINANCIAL INSTITUTIONS

31 IN FIGURES OUR UNIVERSITY… IN NUMBERS A look into the figures related to tertiary education in Malta.

Martina Said speaks with Finance Malta Chairman Kenneth Farrugia about the current status of the local financial services industry, and its bright future on the island.

E

77.

LIGHT AT THE END OF THE TUNNEL FOR LOCAL CONSTRUCTION The decline of the construction industry in recent years has been a sore spot in relation to Malta’s economic growth, but as Sarah Micallef learns, the light at the end of the tunnel appears to be getting brighter.

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

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

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

Publisher

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

Style review

Martina Said meets the people behind the historic Palazzo Castelletti’s restoration, discovering how it went from a home for affluent families, a school and shelter during World War II, and a site for social housing before it became the magnificent catering establishment it is today.

PUBLICATION Sales MANAGER

Matthew Spiteri ADVERTISING Sales EXECUTIVE

Editor

Mark Barbara Jake Davey

Kevin J. Borg

sales coordinator

Editorial Coordinators

Sarah Micallef Edward Bonello

Lindsey Ciantar Tel: +356 2132 0713 Printer

Progress Press Ltd

Content House Ltd Mallia Building, 3, Level 2, Triq in-Negozju, Mriehel QRM3000

Design

Antoinette Micallef ant@box-design.net

Tel: +356 2132 0713 Fax: +356 2132 0714 info@contenthouse.com.mt www.contenthouse.com.mt

ON THE COVER Detail of chair upholstery at Palazzo Castelletti.

Photo by Lionel Galea.

Malta chamber’s silver collaborating partner

04

Malta chamber’s bronze collaborating partners AUGUST / SEPTEMBER 2014

CC Editorial

The Malta Chamber’s driving principle remains that wealth creation must be placed before wealth distribution.

A business agenda to Government

M

alta’s continued prosperity depends on a robust trend of economic growth irrespective of any interpretation economic indicators are given.

The country cannot afford complacency.

At all times, the authorities must ensure that the right policies are in place to allow business and industry to thrive. With the national Budget for 2015 round the corner, the Malta Chamber of Commerce, Enterprise and Industry has once again taken a proactive stance, and has taken the initiative to present a list of budget proposals to the MCESD. These submissions are being positioned by the Malta Chamber as an integral part of two strategic documents launched earlier this year, namely: ‘The Economic Vision for Malta 2014-2020’; and ‘An Industrial Policy for Malta’ which specifically deals with the present and future challenges for manufacturing in Malta.

The approach adopted by the Malta Chamber is intended to provide a business agenda to Government rather than a Government agenda for business.

The Malta Chamber’s input to this year’s Budget process is two-pronged.

At a macro level, the Malta Chamber has compiled a report that makes a number of AUGUST / SEPTEMBER 2014

proposals aimed at addressing the country’s economy and prosperity. These proposals are underpinned by two central priorities – the sustainability of public finances and the safeguarding of the country’s competitiveness.

The sustainability of public finances has always been a priority advocated by the Malta Chamber. To this end, and in order to address this priority effectively, the Malta Chamber is proposing that Government tackles the country’s structural deficit and debt positions effectively; addresses the abuse in undeclared economic activity/ social benefits; eliminates wastages, abuse, bad planning and mismanagement of public resources; and lowers tax burdens on those who honour their tax obligations in a timely manner.

The Malta Chamber’s driving principle remains that wealth creation must be placed before wealth distribution.

In its proposals, the Malta Chamber is also bringing once again to the Government’s attention the situation of unfair trading.

The situation arises from a lack of effective enforcement allowing certain so-called ‘traders’ to go unpunished despite placing products on the local market in total disregard of their regulatory and fiscal

responsibilities.

Even on this occasion the Malta Chamber is once again insisting for the need to urgently set up a multi-departmental single authority that would be empowered with the necessary resources and executive powers to, once and for all, proactively enforce taxes, laws and regulations on those that operate below the compliance radar.

The pre-budget document also covers the sustainability of our pensions system, which in the Malta Chamber’s view is beyond debate stage and now requires the country’s full and constant focus. Further delays in implementing the necessary reform will result in grave repercussions. For this reason, the Malta Chamber has always urged the timely implementation of a voluntary third pillar scheme to supplement the existing Pay-As-You-Go system. The Malta Chamber commented on the two recently published Bills contemplating fiscal incentives to encourage more people to save for their long term future, encouraging Government to increase the tax credit and the capping in order to render this measure more meaningful and effective.

Competitiveness remains central to the Malta Chamber’s ethos. In its proposals for the forthcoming Budget, it is also 07

CC Editorial

In the Malta Chamber’s view [the pensions system] is beyond debate stage and now requires the country’s full and constant focus.

underlining the importance of safeguarding the country’s competitive edge over other economies. The Government must keep an open eye on matters that affect the country’s competitiveness, both from a cost and a noncost point of view.

Elements like energy, labour costs and transport affect the day-to-day activities of businesses. Training and education, RTDI and access to finance also affect the important decision making process of any business when choosing Malta over any other country to invest in.

The Malta Chamber continues to reiterate the importance of revising the COLA mechanism, to incorporate an element of productivity besides inflation to ensure a better alignment between wage inflation and productivity. Besides, a clear definition of the term ‘Exceptional Circumstances’, already contemplated for in the law itself, is required so that the discretion can be given to apply mitigating measures within

the COLA system. Such a definition would guarantee a margin of flexibility during times of challenging and exceptional threats on cost-competitiveness in vulnerable sectors.

On a micro level, the Malta Chamber is currently running a process of consultation with its members at committee level. The Malta Chamber is in the ideal strategic position to understand business, as it boasts an active structure of committees that

represent most business sectors on the island. In view of the upcoming Budget, every business committee within the Chamber has been requested to propose tangible initiatives aimed at improving the business environment within their respective sectors.

In this way, the Budget proposals of the Malta Chamber at a micro level will accurately reflect the views of entrepreneurship in Malta at its grass-roots level. cc

CC COVER STORY

Libya in crisis: the impact on Malta and local business Libya “highly unlikely” to function as a normal state for quite some time - International relations expert Prof. Joe Pirotta While the crisis situation in Libya spirals on and amidst news that ever more Maltese are being assisted to depart from a country that is progressively being deemed too dangerous, the effects are far-reaching — with Malta, and Maltese companies based in Libya — also in the literal and proverbial line of fire. Sarah Micallef discovers the gravity of the situation.

I

t all started, according to Professor Joe Pirotta, international relations expert and former Head of the Department of International Relations at the University of Malta, as a result of the lack of a stable alternative system following the removal of all semblance of governance after the fall of the Gaddafi regime in Libya.

“Since the country lacked any traditional democratic institutions (as we know them in the West), the various armed factions that had conducted the anti-Gaddafi revolution were bound to compete for power with each other. The ready availability of arms, together with the absence of peace-making

mechanisms and a willingness to reach political compromise, ensured that there could never be either a peaceful handover of power or the foundation of democratic government,” he explains.

Indeed, moderate voices that called for caution and a process of national institution building, according to Prof. Pirotta, were bound to be drowned out by those seeking to protect and promote regional and sectional interests. “This was taking place against a background of weak or non-existent security and policing apparatus. As compromise was equated with weakness, resort to arms was just a matter of time.” As a result of this,

“Besides the loss of employment by hundreds of Maltese, there is a very real danger that the considerable amount of Maltese investment in Libya, already under serious threat, could be partially or totally lost.”

- International relations expert, Prof. Joe Pirotta

10

AUGUST / SEPTEMBER 2014

CC COVER STORY

AUGUST / SEPTEMBER 2014

11

CC cover story three main centres of power emerged: Benghazi, Tripoli and Misurata, each with a different political agenda that, at present, seem incapable of being reconciled.

Speaking of the effect of the Libya crisis on Maltese business, Malta Chamber of Commerce Vice President Frank V. Farrugia explains that a sudden halt to normality has taken place, bringing about an abrupt suspension to commerce. The result, Mr Farrugia maintains, is that “companies have had to suspend their operations haphazardly, with very serious repercussions. Payments into companies have stopped, but commitments to third parties in foreign countries are still required to be met. This is leading to great strain on the companies that want to deliver, but in many cases cannot.”

Alberta Group is a case in point, having two branches operating in Libya – Alberta Libya and ISTC Libya, which account for 25 employees and ten in-country team members. The company has previously found success in Libya, in the design, supply and installation of fire and security systems, as well as having set up a subsidiary International Safety Training School in Tripoli, similar to that in Hal Far locally.

Alberta Group Director Liz Barbaro Sant explains, “due to the situation and the fact that we cannot envisage when it will improve or stabilise, all our open projects are halted, which will affect progress payments for all works in progress. Not to mention all the business development efforts and the investments that took place over the last 12 months or so to penetrate new markets, which have now proven to have been superfluous. Aside from this, we also have sub-contractors whom we use regularly for jobs in Libya and who rely on this revenue to sustain their operation.”

Mr Farrugia goes on to emphasize that a number of companies have already asked their staff to avail themselves of long forced leave. “If the situation persists, tough decisions may need to be taken,” he warns, “the Malta Chamber is following the unfolding of the unfortunate developments in Libya closely as it remains close to its members. To this end, in July the Malta Chamber reconstituted its Libya Action Committee to monitor the developments and business interests of the region, and make recommendations accordingly.”

Asked how the fact that employees have been sent back to Malta impacts business, Ms Barbaro Sant explains that in such situations, the top-most priority is to protect the team’s jobs: “all the employees who are directly or indirectly involved were pulled back to base from Libya a few weeks ago.

This means 25 added salaries to sustain, out of budget. Not to mention the team we still have on the ground consisting of ten Libyan nationals and Filipinos who are still on the 12

payroll. These employees are all assets and have been reassigned into similar positions where their talent can be maximised.

Whether Libya re-opens again for business soon or not, their job security is protected.”

However, as Mr Farrugia maintains, the turmoil in Libya does not only affect businesses and their employees within the country. For companies with employees in Libya and in Malta which support the Libya operation, the suspension of the Libya operation automatically affects the Malta operation. Indeed, this also goes for any other business which may not necessarily be stationed in Libya but does extensive business with the country.

How does he envisage business will be affected once the crisis is over? The country has unfortunately taken a serious

blow and needs to undergo a complex and extensive reconstruction effort as much of the infrastructure in Libya has been destroyed, Mr Farrugia notes. The rebuilding of the country will pose a challenge to Libyans and businesses alike. Undoubtedly, when the time comes the Maltese will rise to the occasion and offer their support as they have consistently done. At the same time, this could also bring about potential business opportunities, particularly in construction logistics and related sectors.

In addition, “with important infrastructural needs still missing, Malta could also step in as a support hub for the country. Missing an air-link, a constant maritime link between Malta and Libya may come in handy for businesses,” he ventures.

Apart from this, Mr Farrugia draws on AUGUST / SEPTEMBER 2014

CC cover story

“Payments into companies have stopped, but commitments to third parties in foreign countries are still required to be met. This is leading to great strain on the companies that want to deliver, but in many cases cannot.”

- Vice President Malta Chamber Management Board, Frank V. Farrugia

the fact that the current crisis is the second serious conflict in the span of a few years, proposing, “companies may also consider relocating completely to Malta, leaving only the extremely necessary parts of their operation behind in Libya. Companies need to safeguard their interests and there are only so many times that a company can afford to have its private property at risk.”

Indeed, on behalf of Alberta Group, Ms Barbaro Sant asserts that once the crisis is over, “it will not simply be a matter of mobilising again and starting off where we left off,” as in-country decision makers that were dealt with in the past might change, potentially leading to projects that have already been approved and kicked off having to be stopped. “Libya was never an easy market to operate in but we believe that once this situation clears or improves, whenever that may be, it will be even more challenging and complex,” she maintains.

Asked about the impact of the crisis on their financial year, Ms Barbaro Sant paints a less than rosy picture. “Our projected revenue from Libya for the plan year was €10 million. We have debtors in excess of €500,000. During the last uprising, the government had helped companies like us with quicker VAT refunds which naturally help the cash flow. Ideally, something similar is done this time round and I am sure this is being considered. We have always tried to keep the Libya operation separate from the Malta operation in 14

financial terms so that it is self-sustaining.

However, in cases like this it is a reality that the blow will hit the Malta finances too. If the current situation deteriorates, it will bring about an untenable situation for us, since losses would be too high for the Malta operation to support.”

Certainly, speaking of the impact of the Libya crisis on the local economy, Prof.

Pirotta states that while the effect on the local economy is already negative, he projects that it will get worse before it gets better. “Besides the loss of employment by hundreds of Maltese, there is a very real danger that the considerable amount of Maltese investment in Libya, already under serious threat, could be partially or totally lost. Existing trade agreements and memoranda of understanding will likewise be rendered meaningless,” he warns.

Moreover, Prof. Pirotta continues, “if the flow of Libyan oil is seriously disrupted for a prolonged period of time, this could impact the price of oil worldwide, with obvious economic consequences. Furthermore, the more unstable Libya becomes the greater the flow of irregular migration from its shores, for the people who profit from the plight of these migrants will have even less restraints imposed upon them.”

Moving on to the political implications of the Libya crisis locally, Prof. Pirotta believes the situation could be quite serious. “We

do not yet know what type of regime is going to emerge, or even whether we will be dealing with one or two Libyan states.”

Whatever the eventuality, Prof. Pirotta maintains, Malta will have to have relations with whatever type of Libyan state emerges.

“The relationship will have to ensure that Libya accepts and respects our right to protect ourselves from infiltration by political extremists.” He goes on to stress that care must be taken to ensure that political rivalry – especially of the deadly variety – is not exported to our shores.

“Malta will need to position itself so as to be seen as willing to do whatever is possible to aid the establishment of stability in Libya without becoming embroiled in inter-faction rivalry,” he asserts.

Despite the hope for a quick resolution to the conflict, “in the interest of Libya and its people as well as the interest of businesses who employ thousands in the country,” as Mr Farrugia emphasises, Ms Barbaro Sant believes that due to the complicated issues causing the crisis, “it is not looking very likely that it will be over soon.”

Indeed, asked whether he is anticipating a quick or prolonged resolution to the conflict, Prof. Pirotta’s forecast is not an optimistic one. He states, “given the present circumstances, there does not seem to be much room for optimism that the crisis will soon blow over.” cc

“Libya was never an easy market to operate in but we believe that once this situation clears or improves, whenever that may be, it will be even more challenging and complex.”

- Alberta Group Director, Liz Barbaro Sant AUGUST / SEPTEMBER 2014

CC COVER STORY

“We have taken relations between Malta and China into a new era” – Prime Minister Joseph Muscat

Prime Minister Joseph Muscat has told The Commercial Courier that China is committed to investing across many sectors in Malta. The Prime Minister believes that Malta’s relations with China will flourish in various fields – the energy sector, infrastructure, construction, financial services, information and communication technology, bio-technology, research and innovation, public health, air services and tourism, education, culture, sports and much more. Following the signing of a Medium-Term Cooperation plan, Martina Said speaks with the Prime Minister and Economist John Cassar White for their views on what this agreement holds in store.

S

ince the beginning of his tenure as Prime Minister, Dr Joseph Muscat appeared steadfast on strengthening Maltese relations with China, which he recently set in stone with the signing of an agreement between the two vastly different countries.

Ties with the People’s Republic of China date back to over four decades ago, with Malta being one of the first European countries to establish diplomatic relations with the country in 1972, obtaining considerable economic aid.

AUGUST / SEPTEMBER 2014

Last July, the Prime Minister led a delegation to Beijing to sign a five-year Memorandum of Understanding with the Chinese government. The formal ceremony took place at the Great Hall of the People following a meeting between Premier Li Keqiang and Dr Joseph Muscat, with the two sides agreeing to cooperate in various areas ranging from energy, infrastructure and transportation, to tourism and education.

“We have taken relations between Malta and China into a new era,” says Prime

Minister Joseph Muscat. “Building on the historic cooperation that is well established between the two countries, we are now taking it to another level. It is the first agreement of its kind between China and a European state, and comes at a time when most EU countries are seeking stronger commercial and political cooperation. Malta will benefit from investment as well as the technical and management capabilities of the Chinese, while institutions in the financial services sector will be encouraged to operate in each other’s territories.”

17

CC COVER STORY

“It is the first agreement of its kind between China and a European state, and comes at a time when most EU countries are seeking stronger commercial and political cooperation.”

– Prime Minister, Joseph Muscat

Dr Muscat says that “the two sides will work closely on energy and infrastructure projects. This includes research and development in green and low-carbon energy, the development of renewable energy resources and the production of energy saving equipment. Infrastructure projects could include breakwaters, bridges and monorail ventures, and airlines and cargo carriers will be encouraged to operate direct flights between the two countries, while investment in aircraft maintenance and repair will take place in both Malta and China.”

The education sector also stands to gain from renewed relations, as the Prime Minister points out that exchanges will take place between research institutions and universities. “Confucius Classrooms will be established in selected Maltese schools to promote the study of the Chinese language, and Chinese Universities will look 18

at opening a fully-fledged Mediterranean campus. All these could turn into economic benefits with the right strategic approach.”

Asked about the potential value added to the local economy in the form of foreign investment by China, Dr Muscat says that “China is committed to investing across many sectors in Malta. Cooperation will flourish in various fields – the energy sector, infrastructure, construction, financial services, information and communication technology, bio-technology, research and innovation, public health, air services and tourism, education, culture, sports and much more.”

He adds that the potential to improve services and expand the Maltese economy is substantial — “it is for us and our businesses to take the opportunities that China is offering, not only for them to invest in Malta, but also to seek opportunities in this enormous economy,

which is growing by the day. Malta is part of the European Union and the closest gateway to Africa – this in itself is a great opportunity for the rest of the world to look at us and invest in our island, which is safe and economically sound. All these elements are a recipe for success for business, and we are committed to bring to fruition all our efforts to attract foreign investment to Malta.”

Dr Muscat says Malta is already witnessing the fruit of this relationship and enjoying tangible results of the agreement, most notably in the energy sector. “A Chinese multi-national is making a €320 million investment in Enemalta, which had previously been on the brink of bankruptcy. This deal was struck before the UK negotiated its own deal for Chinese investment in its energy sector. Enemalta is seeking to not only make ends meet, but to partner with the same company to AUGUST / SEPTEMBER 2014

CC COVER STORY

invest in other countries through solar energy initiatives. Our vision for this island is to transform it from a country currently dependent on importing energy to one that acts as a Mediterranean hub for energy. The strategic partnership with Shanghai Electric Power will make this venture take off.”

Beyond the energy sector, the Prime Minister says that various other ministries have been setting out ideas and plans, and determining the projects that are feasible, as well as the level of investment needed.

“Delegations have been to China to talk business; politicians are not the only ones involved here, but entrepreneurs too who value the business ties between the two countries. In all of this, we are thinking about the long term, about laying the foundation for success for the decades ahead.”

During the five-year agreement (20142019) between the two countries, also AUGUST / SEPTEMBER 2014

“Our vision for this island is to transform it from a country currently dependent on importing energy to one that acts as a Mediterranean hub for energy.” – Prime Minister, Joseph Muscat

referred to as a Medium-Term Cooperation Plan, numerous projects will commence.

Dr Muscat stresses however that once an investment is made, the commitment is likely to last way beyond 2019 – “the benefits will stretch unto the next generation and the generation after that.”

“We are truly humbled by the mutual respect existing between the second largest economy in the world and us, the smallest EU country. In Malta they find an honest partner, in a geo-strategic location, capable of offering a good business environment. From our end, we are open to business benefiting our country and see value in strategic partnerships which create wealth and jobs.”

Economist John Cassar White, who is also the Chairman of Bank of Valletta, considers Malta’s agreement with China to be a positive development. “Globalisation has entered a new phase in which countries with trade surpluses are now investing in the EU and the US. For Malta, new investment that promotes economic growth is welcome especially if it helps diversify our economic base.”

He says that Malta suffers from concentration risk because of the size of its economy, arguing that while traditional sectors like tourism and manufacturing are still important, Malta needs more diversified economic activities to make our economy more resilient when recessions 21

CC COVER STORY

hit our traditional markets. “Maltese companies can benefit from the knowhow of Chinese companies to enter new markets, especially in the Mediterranean and North Africa.”

If China’s investment is in such new areas as the green and maritime sectors, says Mr Cassar White, then Malta will gain significant benefits, as its strategic position offers an excellent competitive advantage to attract foreign investment, especially in maritime logistics.

How will the agreement translate into tangible value added to Malta’s economy?

“It is not yet known what specific projects are being discussed by the Chinese and Maltese authorities,” Mr Cassar White

shares. “I have no doubt that China finds Malta’s location as well as our EU membership to be a good combination for setting up businesses mainly aimed at servicing the North African, Middle Eastern and Mediterranean markets. I see interest likely to be more pronounced in maritime services as well as in the green economy.

The presence of the Freeport as well as good air communications should make it easier for Maltese-Chinese ventures to offer support services for the maritime industry as Malta can easily serve as a logistics hub for such activities. Of course, we should also benefit from Chinese investment in Enemalta, which has been underperforming substantially in the last few decades.” cc

“Globalisation has entered a new phase in which countries with trade surpluses are now investing in the EU and the US. For Malta, new investment that promotes economic growth is welcome especially if it helps diversify our economic base.”

– Economist and BOV Chairman, John Cassar White 22

AUGUST / SEPTEMBER 2014

CC BUSINESS

Giving Malta ‘20/20’ Economic Vision Following on from the Malta Chamber of Commerce, Enterprise and Industry’s recent launch of its Economic Vision for Malta 2014-2020, Jo Caruana talks to three key experts about what these recommendations mean for the island’s economic future.

S

imilar to the ethos that prevention is better than cure, the Malta Chamber of Commerce, Enterprise and Industry has chosen to take a very proactive approach to the future of Malta’s economy – by presenting 52 recommendations for the Government’s business agenda.

This recent report, which follows on from the Vision 2015 plan, strives for “a focused and diversified successful economy underpinned by a high quality, dynamic, productive and innovative private sector that positions Malta as a global hub for business and investment leading to increased prosperity.”

But what exactly do Malta’s leading economic experts think of a vision of this kind, and how will it help our development?

AUGUST / SEPTEMBER 2014

Commenting on the report, Professor Josef Bonnici, the Governor of the Central Bank of Malta, explains that he believes the kind of economic diversification outlined in the Economic Vision for Malta 2014-2020 is central to Malta’s long term sustainable growth, even if diversification may be difficult in a small economy.

“Since independence, Malta has diversified its economic and business structure, creating new productive sectors that meet the demand of an evolving international economy,” he says.

“Legacy sectors such as manufacturing and tourism are complemented by relatively new sectors such as financial services and aircraft maintenance. Looking ahead, the appraisal of the island’s economic strategy

Economic Vision for Malta 2014-2020

Full Report

25

CC BUSINESS

“Further investment in the education system is also warranted, as Malta’s capacity to attract quality investment depends on the availability of trained human resources.”

– Central Bank of Malta Governor, Prof. Josef Bonnici

26

is a continual necessity in order to reap new opportunities that the international economy might present.”

Professor Bonnici also believes that the vision highlights the sectors that offer new opportunities for Malta to either move further up the value chain or to promote new sectors such as life sciences, education and health.

“Established sectors may also need to continually reinvent themselves,” he continues. “Sectoral evolution promotes the sustainable growth of such sectors and the establishment of economic clusters.

The success of the financial services can be replicated in other sectors offering related services. The remote gaming sector can facilitate the emergence of digital game production, while a logistics and warehousing sector would evolve in the transhipment sector.”

Professor Bonnici stresses that the implementation of this vision requires the engagement and involvement of all major stakeholders and necessitates an all-encompassing environment to attract investment, both local and foreign.

“This was also reflected by the European Commission’s Country Specific Recommendations for Malta,” he explains, “which highlighted the need for judicial reform that would facilitate the resolution of commercial disputes.

“Additionally, further investment in the education system is also warranted, as Malta’s capacity to attract quality investment depends on the availability of trained human resources. This calls for educational institutions that are responsive

to the requirements of productive sectors, narrowing the skill gap that would dent Malta’s competitiveness.

“Of course, the true driver of such a vision remains the private sector and it is here that banks and financial institutions can support its implementation. Accessibility to credit is also central for new ventures and it is local banks’ funding that would contribute towards the realisation of an economic vision which has the potential of increasing job creation.

Financial institutions need to be supportive by offering competitively priced funding to incentivise private sector investment.”

Meanwhile, Mark Watkinson, CEO of HSBC Bank Malta plc, has also jumped on board to support the Chamber’s economic vision document, and the bank has commended the Chamber for presenting very tangible proposals to various stakeholders, authorities and civil society with the aim of achieving sustainable growth over the medium to long term.

“I personally believe that Malta’s vision should span over a longer timeframe and we should be looking at our economic aspirations beyond 2020,” says Mr Watkinson, adding that HSBC has itself published a report, called The World in 2050, which looks at the macro-economic trends over the next decades and focuses on the change in economic dominance between the developed economies and the emerging ones.

“As for the Malta report, I believe it is paramount that the country focuses on areas of strategic growth that can bring significant income streams – in particular international trade,” he continues. “I am pleased that this

AUGUST / SEPTEMBER 2014

CC BUSINESS

“A key to the successful implementation of the economic vision is that all the stakeholders, public and private, work seamlessly together with a business-minded mentality.” – HSBC CEO, Mark Watkinson

key pillar for growth has been included in the document as Malta stands to benefit from its strategic location in the Mediterranean.

“Our own goal is to make sure Malta attracts trade and trade-related services, such as logistics and warehousing, by leveraging its several unique selling propositions which, apart from location, include the excellent port and airport facilities, the close proximity between facilities, our English language speaking and highly educated workforce, as well as EU membership.

“The trade proposals found in the Chamber’s document fit in with our ‘Malta Trade for Growth’ initiative, as well as the €50m trade fund which is seeing more companies venturing beyond our shores and benefiting from HSBC’s global footprint for international trade opportunities both within established markets such as Europe, as well as in growing and emerging markets.”

Mr Watkinson says that a key to the successful implementation of the economic vision is that all the stakeholders, public and

private, work seamlessly together with a business-minded mentality.

“This entails looking at ways of reducing the time to do business, and winning opportunities. There are several excellent recommendations that need to be followed up and monitored on an ongoing basis – ideally by a committee that should be set up to monitor progress on each one,” he adds.

Finally, economist Gordon Cordina also trusts that the vision exercise will prove very valid in the promotion of important social dialogue. “It has many potential benefits, not only to the constituency of the Chamber but also to a wider stakeholder base,” he says.

“It is, in many senses, a reiteration of points which have long been stressed as being essential for Malta’s continued development, with updates to reflect recent developments.

“In addition, I would like to see this discussion being taken to a consensus within the Malta Council for Economic and Social Development (MCESD), and then translated into concrete measures and deliverables

by Government and other social partners.

While a number of the recommendations are already being implemented, others may need to be prioritised to continue increasing the number and quality of jobs in the Maltese economy,” Mr Cordina concludes. cc

“I would like to see this discussion being taken to a consensus within the Malta Council for Economic and Social Development (MCESD), and then translated into concrete measures and deliverables by Government and other social partners.” – Economist, Gordon Cordina AUGUST / SEPTEMBER 2014

29

CC in figures

Our University…

IN NUMBERS

60%

173

of university students are female

over

600

tumoli of land… size of the University of Malta

700,000

number of books and other publications available at the library of the University of Malta. The Library subscribes to over 60,000 online journals

6,000 SQUARE METRES size of the library of the University of Malta

11,000 STUDENTS

current population at the University of Malta

Source: University Of Malta www.um.edu.mt AUGUST / SEPTEMBER 2014

50

number of students reading for a Ph.D. at the University of Malta

number of foreign students studying at the University of Malta, coming from 80 different countries around the world

23

number of graduation ceremonies in the academic year 2013/2014

2

only 1 female and 1 male are currently reading for a Ph.D. in economics at the University of Malta

37

number of students reading for a degree in Sacred Theology at the University of Malta. Female students in this course are scarce… only 2

over

3,500 anticipated number of students to graduate this year

over

over

over

200

aspiring lawyers in the final years of their LL.D. degree

more than

1,000 number of students who are reading for a Bachelor of Commerce or Bachelor of Commerce (Honours) at the University of Malta

2,600

number of students registered as pre-tertiary students at the Junior College in 2013, which is also managed by the University of Malta 31

CC INTERVIEW

Living and learning Like most other European countries, Malta is currently face to face with the problem of a skills gap, whereby employers from various sectors complain that they are unable to find the right people for the job.

Martina Said discusses the issue with Minister Evarist Bartolo, to find out how the spheres of education and employment can work together.

T

he worlds of education and employment are often far apart when, in truth, they are strongly inter-linked.

Since bringing them together under one ministry, there has been increased hope for growth and prosperity in both sectors – a hope that Minister Evarist Bartolo, who is responsible for the Ministry of Education and Employment, is determined to fulfil.

“Having the two worlds under the same ministerial responsibility makes a lot of sense – it was a choice made by the previous administration, and interestingly enough, Malta is the only EU country with a ministry for education as well as employment,” says Mr Bartolo. However, he is quick to add that while it does make things somewhat easier for the two to work together, it is certainly not automatic.

“Having them work together is very important if we are to have people with the required skills and talent, to create jobs and then to fill those jobs. But I must stress that education is not simply about preparing people for a job – it is much more than that.

We should be focusing more on developing and cultivating in kids and young people the skills of employability rather than skills for a specific job as, I believe, there is no job – whether traditional or new – for which you can precisely forecast the skills needed,” the minister explains. “We live in a fast-changing world, and you might end up preparing

youths for a job that, by the time they are out in the labour market, is no longer there or has changed.”

In view of the accelerated pace at which changes in the workplace are occurring, the ongoing relationship between education and employment cannot be ‘once and for all’. “Getting the right people from industry and education to design a new course can be done, but one must not be disillusioned that it will be valid for a long time. The time horizons in education and employment are quite different: today, companies will tell you they can forecast the future for the next three years, but not much beyond that.”

Mr Bartolo adds that one should not expect the sphere of education to work completely in tandem with that of employment, but what it should be is relevant. “The ability to learn, solve problems, work with others, lead, take initiative, be self-disciplined and work with integrity – these are the skills young people will use later on in life and that are transferable between jobs. Content is important but unfortunately, these aspects are the least developed in our education,” he says. “Employers tell me that these intangibles, the soft skills, are much more important than the hard skills.”

The National Employment Policy, published in May, states that more than half (55 per cent) of the employers seeking

Photos by Lionel Galea

“The ability to learn, solve problems, work with others, lead, take initiative, be self-disciplined and work with integrity – these are the skills young people will use later on in life and that are transferable between jobs.”

32

AUGUST / SEPTEMBER 2014

CC INTERVIEW

candidates for high-skill positions in Malta have reported difficulty in recruiting appropriate candidates for the said roles. In fact, Malta ranks third out of 27 EU member states behind Cyprus (59 per cent), Bulgaria (58 per cent) and Luxembourg (58 per cent) in this respect. In the case of vacancies requiring low levels of skills, 20 per cent of employers reported difficulty in recruiting.

Malta ranks third from 27 EU member states in this sphere behind Cyprus (27 per cent) and Belgium (22 per cent), and in line with Slovenia and Portugal (20 per cent).

The minister considers the shortage of adequately skilled people for jobs to be more problematic for employers than for individuals seeking jobs in their preferred area but not finding work in the exact same field as their area of study. “Although there will be individuals who are disappointed AUGUST / SEPTEMBER 2014

by this, because everyone has a preferred job or type of work, it is not a wrong thing in itself – I consider the shortage of recruits for specific jobs by employers to be a bigger issue and for this, especially in some areas, we really need to get our act together. For instance, we have a shortage of accountants – firms still go overseas, and not just in Eastern Europe but also as far as the Philippines, to recruit accountants, and seeing as the financial services industry is so important here, we need more accountants.”

In order to begin addressing this shortage, Mr Bartolo says that, as from September, accounts will be available as an optional subject for students in state schools, with the aim of “putting it on the radar” of parents and students alike.

In the sphere of iGaming, for instance, a collaboration with the Malta College of

Arts and Sciences Technology (MCAST) is underway to organise and design programmes that give people the skills to work in that sector. “One of the greatest challenges we face today is that for a lot of jobs – and this is where the world of economy and of employment moves faster than that of education – you need a set of skills that cannot be developed by traditional educational programmes that are sectorial and narrow,” says Mr Bartolo. “The same applies for digital gaming and on the whole, I would say, most jobs on the island require up-skilling. We cannot stand still – the rate of economic growth here is positive, the rate of job creation is positive, but like the rest of Europe, we also face a skills gap, and that needs to be addressed.”

Besides tackling the issue of a skills gap, Government is also working to reduce 33

CC INTERVIEW

“We cannot stand still – the rate of economic growth here is positive, the rate of job creation is positive, but like the rest of Europe, we also face a skills gap, and that needs to be addressed.”

the number of early school leavers, which currently amount to 21 per cent. According to the EU definition, early school leaving is understood as having completed compulsory schooling without having acquired the skills and knowledge expected after 12 years of schooling. With such a percentage, Malta ranks third after Spain and Portugal among the 27 EU member states.

“We have an ambitious early school leaving agenda, and the biggest challenge here is to make the educational experience relevant for teenagers so that they want to remain in school. We do not have a problem with youth unemployment, in fact we have the highest number of people working, but that in itself is not a good sign because in reality, they should be in school. The number of those seeking a job between 15 and 18 years of age is minimal, but we are not happy that so many youths between 18 and 25 years of age are no longer in education or training.”

Mr Bartolo continues that in order to address this problem, a youth guarantee scheme has been devised with the aim of attracting as many young people as possible back into education or training. This includes revision classes to enable more people to pass their re-sits in September, so that if they improve their result they have a greater incentive to continue studying; an alternative learning programme for those fifth formers who did not register for SEC exams in their last year of school, which is focused on hands-on vocational training; as well as a revision programme with MCAST for those students who did not get the required level to move upwards in their course.

“We have another programme, which is quite a challenge – 7,000 youths out of 51,000 in the age bracket of 18 to 24 are not in education, not employed and not seeking a job, making them practically unaccounted for, and we want to try and encourage them to continue studying. So far, 400 have shown interest in the programme, but we will keep up contact with the other 6,500 in the weeks to come. Our message here is: do not give up.”

Over the last few years, the number of foreign nationals working in Malta has increased steadily, in part due to Malta’s accession to the European Union. The latest figures for 2012 (based on ETC data) show that around 8,500 EU citizens and around 4,500 third country nationals are, at present, working in Malta. From the new jobs created 34

The latest figures for 2012 show that around 8,500 EU citizens and around 4,500 third country nationals are, at present, working in Malta. each year, how many are occupied by locals and by foreign nationals?

“It varies from sector to sector, but we have a situation in the job market where jobs at the top and at the bottom are taken up by non-Maltese. Locals no longer want to do lower-end jobs, such as cleaning, catering, house-keeping and a wide range of jobs in construction – they complain to us that these sectors are poorly paid and conditions are inadequate, but also because over the last 20 years, we have allowed certain trades to die – such as tilelaying and painting – because there was no transfer from one generation to another, so they have been taken up by people from overseas,” the minister explains. “Then

there are jobs at the top for which we do not have trained people, which is why we need to better connect the worlds of employment and education.”

With that in mind, Mr Bartolo stresses that it is healthy, even for Malta, to have talent from overseas working here. “We form part of a global world, which means a global workforce and people from different cultures and countries working together.

But the rate of job creation in Malta does not warrant xenophobia towards foreigners because they are ‘coming to take our jobs’.

If it is a question of working conditions then let’s address them, but let’s not use that as a reason not to go to work. Get the right skills and you get the right job.” cc AUGUST / SEPTEMBER 2014

CC PROPERTY

A delicate game of supply and demand

Malta’s property market today Sarah Micallef speaks to Frank Salt Company Director Douglas Salt and Commercial Property Division Manager Joseph Pace about the development and current state of affairs of the property industry in Malta, the challenges it is facing and the determining factors for the industry’s growth and development in the near future.

T

he current state of the property market, according to Frank Salt Company Director Douglas Salt, is a healthy one, with a good number of transactions being recorded in various price ranges. A serious lack of available property within the rental market has had an interesting effect, resulting in a return to the purchase of property as an investment, yet Mr Salt warns “we have started feeling a lack of availability of good property for sale in the more popular areas, with much of the supply taken up.”

As for commercial property, Commercial Property Division Manager Joseph Pace maintains that Malta was one of the few countries where the property market remained practically unscathed by the international economic crisis. “This applied not only to the property market, but to the

36

economy in general, so much so that the country has achieved impressive growth in the financial services, gaming and IT sectors.

Malta’s favourable tax regime as well as its enviable climate, way of life and accessibility continue to attract a substantial number of foreigners desirous of setting up all sorts of commercial activities here – so much so that the construction industry is now geared for some major developments in the commercial property sector,” he states.

With regards to Frank Salt Real Estate, Mr Salt asserts, “it has been an excellent year with good growth in all divisions. We have also embarked in the first phases of a five year expansion plan which will see a substantial increase in our human resources, so as to cope better with increased demand for our services. A number of new and extensions of existing

offices is also on the cards.”

Additionally, as Mr Pace maintains, since setting up Malta’s first specialist Commercial Property Division in 2010, “we have developed this into a team of highly trained and motivated consultants offering guidance and support both from Head Office as well as from any of our branches. The range of clients is extensive. We have everything from two-man start-ups who are moving into their own office after using a room in their lawyer’s premises, to gaming companies requiring thousands of square metres. This, coupled with Malta’s largest database of commercial properties for sale or for lease, makes us the commercial real estate market leaders.”

It is not without its challenges however.

Mr Salt believes that the industry in general is suffering from a lack of quality property AUGUST / SEPTEMBER 2014

CC PROPERTY

“The lack of rental properties is becoming a serious problem and could in the long term prevent foreign companies setting up here as accommodation becomes difficult to come by.” – Frank Salt Company Director, Douglas Salt

that meets clients’ expectations. “The lack of rental properties is becoming a serious problem and could in the long term prevent foreign companies setting up here as accommodation becomes difficult to come by. The general infrastructure needs some serious upgrading if we wish to attract more wealthy foreigners to buy here.”

He also adds that permits are an issue – aside from taking too long to be issued, “problems associated with past misdemeanours in the way permits were issued and properties built have not been properly tackled, with a large number of unsuspecting owners ending up with serious permit problems when trying to sell. This needs to be seen to in a fair way to enable these owners to move on.”

Indeed, Mr Pace considers the main challenge that the market will have to face AUGUST / SEPTEMBER 2014

sooner or later is that of sustainability, citing “there is the economic law of supply and demand to be reckoned with.” He mentions the fact that over 100,000 square metres of commercial space is at various stages of construction and/or finishing; the likelihood of two or three more office blocks within Smart City Malta as per the original plans; as well as the recent high-rise policy with some applications already in the pipeline. He asserts, “these developments are not coming a moment too soon, since demand for office space has been growing steadily over the past few years, particularly for properties offering location, good finishing and connectivity.” Having said this, he is quick to point out that a sustained, if not increased, level of demand will be imperative for even greater development.

On the other hand, the issue of overdevelopment, which could render Malta, particularly the highly sought-after parts of the island, less of an attractive place to live in, is not lost on Mr Pace. He takes the Sliema and St Julian’s area as a case in point, maintaining, “although the Maltese might be put off by the lack of parking, many foreign youngsters do not rely on cars and prefer to work in an area with good lifestyle options like shops and restaurants on their doorstep.

Unless accompanied by careful planning and infrastructural improvements, the further planned developments in these locations are likely to lead to over-crowding and overdevelopment. In other words, we need to be careful not to become victims of our own success.”

Certainly, looking towards the property industry’s growth and development in the coming years, Mr Pace asserts, “these considerations are very important for the commercial property industry’s growth and development prospects as developers scramble to find suitable locations for their new projects. Availability of finance is also a determining factor given the banks’ very selective and cautious approach to new projects.”

In light of this, Mr Salt believes that while the future for the industry looks bright, “with the lack of feasible sites available it looks like the future will see more focus on rehabilitation of older buildings than the construction of new ones.”

On his part, it is Mr Pace’s belief that there is no emotion involved in commercial real estate: “whether you are developing, selling, buying or renting, investors are looking at their rental yield or profit margin while buyers are mindful of the economic and fiscal implications. As long as the parties’ expectations find some common ground, the market will keep on doing well and prosper.” He goes on to add that the planned additional commercial space will undoubtedly put pressure on prices, “and this will be more likely felt on properties which are not in prime areas – but only in the event that the current indications of a sustained growth in demand will fall significantly short of expectations.” cc

“Unless accompanied by careful planning and infrastructural improvements, the further planned developments in these locations are likely to lead to over-crowding and overdevelopment… we need to be careful not to become victims of our own success.” – Frank Salt Commercial Property Division Manager, Joseph Pace 37

CC INTERVIEW

Malta becoming an important hub for banking and financial institutions Martina Said speaks with Finance Malta Chairman Kenneth Farrugia about the current status of the local financial services industry, it’s most notable assets and why the future looks bright for the industry on the island.

M

alta’s visibility and reputation in the field of financial services has, in recent years, gone from strength to strength. The industry contributes significantly to the country’s economy year after year and, in the face of a challenging economic climate in different parts of Europe, it shows no signs of slowing down.

Kenneth Farrugia, Chairman of Finance Malta – a public-private partnership set up in 2007 with the aim of strengthening Malta’s financial services brand through a promotional programme, as well as creating networking opportunities for its members – says the country’s decision to join the EU in 2004 and later the eurozone in 2008 was integral to the industry’s expansion, and has boosted its status as a key business hub in the Euro-Mediterranean region.

“Today, Malta is recognised for its pro-business attitude, state-of-the-art infrastructure and highly competitive operational costs for doing business – an EU member state that has become an important financial services hub for business both in Europe and the African continent. This position has not come by chance, but rather was driven by a carefully articulated strategy AUGUST / SEPTEMBER 2014

leading to the development of knowledgebased and value-added service propositions in various other key economic sectors such as ICT, advanced manufacturing, maritime, aviation and life sciences,” explains Mr Farrugia. “As a result, with a population of just 420,000 people, and well into 2014, Malta prides itself as having one of the best-performing eurozone economies, featuring above average economic growth, political and economic stability, and relatively low unemployment. The financial services industry has been consistently expanding by around 25 per cent in recent years with direct intermediation contributing 8.5 per cent to the national GDP.” One key trend among others in the local financial services industry is, according to Mr Farrugia, that Malta has established itself as an important asset servicing domicile, wherein the investment funds and asset management industry is today home to over 600 investment funds, primarily consisting of Professional Investor Funds (PIFs), Alternative Investment Funds (AIFs) and Ucits (as well as non-Ucits).

“A comprehensive range of fund structures may be set up using these fund

categories to include, amongst others: retail funds, alternative investment funds, private equity, venture capital, as well as real estate funds. The development of Malta’s fund industry has in turn brought about service clusters in the fund administration and asset management space,” explains Mr Farrugia.

“In fact, the Malta Financial Services Authority (MFSA) has so far licensed over 120 investment service providers and authorised 28 recognised fund administrators that are collectively servicing the funds industry and also providing their services to funds based outside of Malta.”

Mr Farrugia adds that Malta is also becoming an important hub for banking and financial institutions. “The banking sector, regulated under the Banking Act, has enjoyed strong growth over this last decade. Today, Malta is hosting 26 banks that have established their business on the island primarily consisting of foreign owned banks that use Malta as a strategic hub from where to conduct specialised asset financing, corporate banking and trade finance business.”

On the other hand, the Financial Institutions Act has also contributed to 39

CC INTERVIEW the growth of this sector, and defines the activities of a financial institution to cover various financial services activities, “which include but are not limited to: lending, financial leasing and venture or risk capital, money transmission services, issuing and administering means of payment as well as trading in money market instruments, foreign exchange, financial futures and options, exchange and interest rate and transferable instruments.” Mr Farrugia states that it is therefore no surprise that over these last seven years, the number of financial institutions operating in Malta has nearly doubled to 33, primarily consisting of payment and e-money institutions.

In view of these milestones and achievements, Mr Farrugia believes that the key to Malta’s success in this sector lies in EU membership, since it allows companies licensed in Malta to do business in any of the other EU member states. “As a result of the presence of a carefully designed legal and regulatory architecture, the country has proven to be attractive for companies that want to self-insure or reinsure through captives or cells of Protected Cell Companies (PCCs). Malta’s insurance industry has seen very strong growth in recent years and as of March this year, 60 insurance vehicles were licensed in Malta to include captive and affiliated insurance companies, and PCCs. “Given the size of Malta’s economy, the country’s diversification remains perennially important. Our strong tourism sector, the developments in the aviation and maritime sectors, the ICT business, health and education amongst others, are all being given the necessary thrusts to sustain this diversification. The recent addition of financial services as an important economic enabler has further contributed to enhance our economic diversification,” says Mr Farrugia. “By way of our historic legacies, we have inherited the British way of doing business; we’re quite up front and candid with potential investors exploring business opportunities through and from Malta.

Moreover, our strong service orientation goes a long way to assist international clients to bring their plans to fruition.”

While he believes that more needs to be done on the branding side, Mr Farrugia considers that the brand visibility gap has markedly narrowed over these last seven to ten years, and there is still room for further growth. “In the funds industry, for example, assets managed in and from Malta exceed around €70 billion of assets. Luxembourg’s fund industry accounts for some €2 trillion of assets so there is evidently room to further grow this sector in Malta.”

Since setting up in 2007, Finance Malta identified the five key sectors of insurance and pensions, investment funds and asset management, credit and financial institutions, trusts and foundations, and wealth management as ones in which the 40

country had a strong value proposition.

“Around these five pillars, various initiatives were launched in conjunction with our members to strengthen the visibility of these sectors and highlight their respective key attractiveness criteria,” says Mr Farrugia.

“The results achieved so far speak for themselves. However, I think Malta’s value proposition left its mark, and it is on the back of that where we started seeing international companies and operators setting up in Malta.”

Among the country’s most attractive features for potential investors are its accessibility, its adaptability, the natives’ widespread command of the English language which facilitates business, the availability of a highly-skilled and qualified

workforce at competitive rates for all areas of the economy, and a sophisticated telecommunications infrastructure. Mr Farrugia believes that the country’s reputation in this industry is strengthening – “foreign companies operating in Malta comment favourably on the operating environment and the modest costs of setting up and managing a business, and so, Malta is becoming the go-to country for growthminded entrepreneurs and multinational companies. There is more that needs to be done, but I am confident that with the appropriate levels of support and on the basis of our ability to sustain the competitive factors that have contributed to the growth of the industry so far, the future is a bright one for the industry.” cc

“Today, Malta is hosting 26 banks that have established their business on the island… and use Malta as a strategic hub from where to conduct specialised asset financing, corporate banking and trade finance business.”

AUGUST / SEPTEMBER 2014

CC MEET THE ARTIST

42

AUGUST / SEPTEMBER 2014

CC MEET THE ARTIST

Emphasising the real Sarah Micallef chats to Inigo Taylor about his documentary photography project, The Maltese, which has been taking social media by storm in recent months, owing to its unique and gritty brand of photography.

S

ince UK-born photographer Inigo Taylor decided to share his photography project, The Maltese, on Facebook, he was blown away by the response, generating over 5,000 likes in a matter of months. While still a work in progress, he maintains that the work has been a long time in the making, with the end goal being to compile the photographs into a book which will serve as “a sort of gift for the Maltese people.”

Hailing from Lincolnshire, in the Northeast of England, Inigo began his relationship with the Maltese islands as a boy, spending childhood summers in Gozo, where his grandparents had a house. Choosing to study photography at University, he went on to travel to countries like India and Morocco, with the main intention of taking photographs.

“I’ve always been really interested in documentary photography,” he states, outlining the difference between photojournalism and documentary photography. “Often a photojournalist and a documentary photographer are the same; however a documentary photographer takes a long time to look at something and build a body of work that says something about what they’re interested in or what they feel they need to express.”

Upon finishing his studies four years ago, AUGUST / SEPTEMBER 2014

Inigo joined his parents, who had since made the move to the Maltese islands permanent.

Rather than capturing the scenery however, Inigo turned his eyes to the people, who he calls vibrant and expressive. “I’m interested in photographing people, and reality. I’ve got respect for all different types of photography, but for me, what I get the most from is something happening in front of me, seeing it and putting it across – preserving it, even if it is just for me to see.”

Indeed, The Maltese features street photographs of real people in the Maltese islands, and includes shots taken over his years in Malta and Gozo. Expressing a preference for what he calls the more real, sometimes gritty side to life on the islands, Inigo avoids more conventional shots depicting Malta, explaining, “I don’t want my work to be a postcard book of nostalgic pictures, I want to get everything. As much as I love photographing fishermen with their boats and that sort of thing, there are modern things – like kids at carnival with funny haircuts – that are equally ‘Malta’.

When I go to a feast, I rarely photograph statues; I turn around and photograph the people.”

Speaking of how he selects his subjects when taking photos, he says “you look at somebody and get a feeling that a particular person is a character. Sometimes it’s as

“[Malta] is in such a unique situation at the moment – there’s so much happening but there’s also so much tradition and heritage, which together is really interesting.”

43

CC MEET THE ARTIST

simple as liking where a person is standing in the context of what they’re doing. It’s a feeling.”

Knowing that people can be apprehensive about getting their photo taken, I ask, has he had any negative experiences? “I’ve only had a few instances where something’s gone wrong, and it’s always rectified by local people... I think because I’m quite small, blonde and have multicoloured shoes on,

44

people don’t take me that seriously, so it works, though I’ve had instances – I’ve had a person take a swing at me in Gozo”, he says, though adds that the locals were quick to point out that such behaviour was not a surprise from the person in question, who was “a bit of a crazy guy”.

Apart from the interesting people, Inigo believes Malta’s current situation is a very exciting one, maintaining, “[Malta] is in

such a unique situation at the moment – there’s so much happening but there’s also so much tradition and heritage, which together is really interesting.” Describing his photography style as much like a mirror, Inigo believes that it reflects “what Malta is like now” through his eyes.

Making reference to Robert Frank’s The Americans – a Swiss photographer who photographed American people in the 1950s – Inigo believes there is something interesting about an outsider’s view of a country. “There are lots of very talented Maltese photographers, but I think they would see Malta differently. They might have prejudices, political bias, religious bias, whereas I’m completely open. I’ve lived here long enough to understand Malta in my own way, but I’ve deliberately kept my distance from politics and such things, because I believe that it would interfere with it.”

Admitting that at first he wasn’t keen on the idea of exposing his work to the public via Facebook, he maintains that that all changed one day. “I just had this positive thought to put it all out there, to not be a snob and think that it’s better than Facebook, which is what I ultimately thought, believing that it cheapens things. I thought that that wasn’t the way I should be, and that Facebook is democratic – people can see and interact with it.” The decision turned out to be a good one, he confirms, maintaining, “I’ve had an AUGUST / SEPTEMBER 2014

CC MEET THE ARTIST

“Sometimes it’s as simple as liking where a person is standing in the context of what they’re doing. It’s a feeling.”

unbelievable response. As a photographer, or any artist or creative person, you think to yourself, ‘is it good enough?’ This platform has given me a real boost and gave me confidence in it.”

Indeed, despite the instant popularity of the Facebook page dedicated to the project, the photographer maintains that his ultimate goal with The Maltese is to compile his work into a book, but admits he doesn’t have a concrete finishing date in mind. Because of the nature of the work, with Valletta 2018 coming up, he sees it is a potentially good platform in order to exhibit his photography.

“For me, this project is a celebration of Malta.

I think it’s something different. There needs to be some work out there that is like this – real, gritty.”

“As a photographer so far I’ve done lots of work but I haven’t got something that I can say ‘that’s what I did, that’s what I said’.

That’s what I really want – to have something finished to share with people, and not just on the internet or in a portfolio, but something that people can ultimately buy and look at, and can either come to Malta as a tourist and take away as a piece of Malta; or Maltese people can buy and be proud of, and send to their relatives abroad.”

In fact, the most moving response to his project so far, Inigo asserts, has come from Maltese people who have been away from the islands for a while, and “within it they see some of the idiosyncrasies of Malta, or something beautiful like a little girl running around at a feast and it can remind them of when they were children running around at a feast. It took me a long time to realise it but that is, for me, what documentary photography is.” cc AUGUST / SEPTEMBER 2014

47

Best Dressed

After a summer characterised by highlighter-coloured clothes and eye-catching prints, autumn’s sombre tones make for a truly welcome change.

Martina Said looks into the upcoming season’s most notable trends.

01. Military ensemble The military trend is back and bolder than before, with sailor-style buttons, braiding and epaulettes. Some clothing items in this military trend are simply timeless, such as combat jackets, mid-length coats, sweaters, and uniform-style dresses and shirts, typically reflected in camouflage prints and an overall masculine and structured look. This trend is especially fitting for autumn – the toned down colours of khaki, grey, brown and blue match the more conservative clothing choices of after summer and are best worn with complementing and neutral attire.

02. Sneakers Many top designers are leading the way in giving men and women’s feet a break from uncomfortable footwear, and are declaring sneakers as the footwear of the moment.

This means you could comfortably spring from meeting to appointment in a much smoother and hassle-free manner. Opt for a plain black or white pair of sneakers if you’re willing to embrace this trend, as it is more likely to match with a variety of outfits than a pair that’s laden with prints, patterns and colours. This classic humble shoe is being reinvented into something bigger and more approachable than before, attracting men especially in the same way that women are attracted to handbags.

03. Powder pink Pastel colours are especially popular in spring, but powder pink has held its own and retained its status in the collections of various designers for the cooler seasons, seen in the form of soft coats, jackets and blazers, as well as bags and scarves. Nothing spells delicate and romantic like powder pink – replacing the bold, highlighter clothing items in our wardrobes from the previous season. Look out for pastel pink in whimsy dresses and loose blouses too – the shade is ultra-feminine and right on trend.

02.

AUGUST / SEPTEMBER 2014

STYLE

REVIEW

04. In check The kilt fabric has been reinvented in different styles for decades, and will reappear this year in a variety of colours. Look out for checks in red, green, blue and black plaid – if you opt to go all out with a fully checked trouser suit, keep the rest of your outfit plain and clean with block colours and minimal accessories. Conversely, a checked blazer or blouse paired with plain trousers for men and women or a plain pencil skirt could complete a fashionable ensemble.

05. Brown is the new black Men’s suits in navy blue and dark grey have been making waves in recent years, substituting the traditional black with a hint of colour, however dark it is. But this year, brown appears to be the next bold choice of colour, in rich, dark hues that complement a variety of skin tones. Matching a tie and pocket square to a brown suit isn’t too hard either – burgundy would be a perfect pick as well as dark blue and bright yellow.

06.

01.

06. Limited edition luggage Gone are the days of the black-luggageblack-suit executive, and Disney needn’t be about kids only. The last decades have shown that creativity is the new currency, and this luggage is a definite must for the creative soul. The Samsonite Malta store has just received a small quantity of the Cosmolite® Disney Limited Edition luggage line, specially created to mark the launch of Disney by Samsonite®. Constructed with the revolutionary Curv® material exclusive to Samsonite in the luggage arena, this inimitable collection boasts the same innovative qualities, technology and standards synonymous with the Cosmolite Samsonite main collection. Call the Malta store located at the Malta International Airport on T: 2202 1401 to secure your limited edition luggage, with prices starting at €325. cc

04.

03.

05.

49

CC make the headlines

Giving visibility: NCPE’s online directory to tap professional women A report issued by the European Commission in March 2014 brings to light the under-representation of women in senior positions in the EU and confirms that Malta, at just 2.1 per cent, sits at the lower ranks in percentages of women occupying decision-making positions among the member states.

The present situation of underrepresentation of women denotes an untapped potential of skilled human resources. Barriers to women’s empowerment spring from gender-based stereotypes, which hinder women from contributing to the economy, both at national and EU levels. UK research findings in 2011 reveal that a gender balanced board is more likely to pay attention to managing and controlling risk combined with strong organisational and financial performance.

Moreover, gender equality enables women and men to contribute to and benefit from political and social participation.

The European Commissioner for Justice, Fundamental Rights and Citizenship, Viviane Reding, called on member states to set themselves a target to voluntarily increase the number of women, being the underrepresented sex, on boards to 30 per cent by 2015 and 40 per cent by 2020. These voluntary initiatives include governance codes, charters, training, mentoring and databases promoting female candidates.

Other initiatives to increase women on boards include the introduction of gender quotas, where women who are as equally qualified as men would be given the opportunity to occupy decision-making positions. In November 2012, the European Commission proposed to introduce legallybinding gender quotas, in which publiclylisted companies would be requested to raise their proportion of women on company boards to 40 per cent.

In order to address this challenge of gender imbalance on boards, the National Commission for the Promotion of Equality

AUGUST / SEPTEMBER 2014

(NCPE) embarked on a project entitled ‘Gender Balance in Decision-Making’, which is co-financed by the European Social Fund (ESF). The aims are to increase the number of women in decision-making positions and to empower and enable women to take up top level positions. In this context an online Directory of Professional Women is being developed as one way to reach such targets.

The aim of the Directory is to give visibility to professional women and their competences.

What is the Directory of Professional Women?

This Directory shall be an online database with profiles of professional women from various fields and backgrounds. It will include information about the qualifications, experience, skills and areas of interest. The main aim of the Directory is to enhance the opportunities of women to assume decisionmaking positions. Moreover, the Directory aims to highlight the women’s achievements in the various fields of specialisation and occupations as well.

useful tool for the employer to find a fully qualified professional to appoint on a decision-making board/committee. The online Directory will give the possibilities to locate a professional woman in the relevant field by saving both time and money as this service is free of charge.

• The Directory can be a powerful networking tool for women to identify and find other professionals in Malta and Gozo.

• The Directory is accessible to the general public and can be used by every company, business and enterprise.

Who is eligible to apply?

Who can benefit from the Directory?

Since the Directory is aimed at professionals, women with the below criteria will be eligible to register as users on the Directory: • Have five (5) years’ experience in a decision-making/management position AND/OR • Have ten (10) years specialised expertise in a particular field/s. Fields include finance, entrepreneurship, banking, accounts, architecture, engineering, politics, social wellbeing, tourism, sciences, education, humanities, health and law among others.

• This Directory shall empower and give more opportunities to women to be appointed to senior positions in the public and private sectors or to assume decisionmaking positions in the labour market and elsewhere. In addition, the Directory can also provide a window for women to contribute and participate in politics.

• The Directory is a service for all those who are looking for a qualified and experienced female professional. This could be a very

Those interested to be included in the ‘Directory of Professional Women’ are invited to register their interest and send their contact details together with the area/s of expertise to the National Commission for the Promotion of Equality (NCPE) by sending an email on equality@gov.mt or by contacting our offices on 2590 3862.

51

CC make the headlines

Every little bit helps – reducing our carbon footprint at BOV In a constantly changing world, extreme weather conditions and climate change are, very often, ascribed to global warming. A definite certainty is that the future is uncertain and that if we fail to take the necessary steps to tackle the issues leading to global warming more abrupt climatic changes are guaranteed.

If everyone had to give their little share, however small that may be, together we could make some difference.

We have instilled this thinking early on at the planning stages when the bank decided to build its own Head Offices premises in Sta Venera. This was an opportunity for Bank of Valletta to apply green measures throughout its planning process and take proactive steps in furthering its ‘green’ step.

The development of this edifice ensured that this Centre was to be as energy-saving as possible, so much so that it has the potential to achieve substantial saving on the normal energy requirements. The premises are also equipped with the latest technology in energy-saving such as Lux setting with

AUGUST / SEPTEMBER 2014

variable intensity according to the available light, and sensor-controlled lighting that switches off when the offices are vacated.

The atrium inside the building is also designed in such a way to make optimal use of natural light.

In 2011, we decided to give these issues greater importance by dedicating a ‘Green’ manager, whose sole focus is to motivate and implement strategies that will further reduce BOV’s carbon footprint. This role has since continued on the bank’s intentions of taking proactive steps in the environmental arena. More positively-green changes have been implemented and very recently BOV announced a further 144,000kg reduction in carbon dioxide. This was made possible by

reviewing the consumption of light bulbs and replacing the existing with more modern, less energy consuming alternatives.

The installation of photovoltaic cells across BOV sites is producing more renewable energy. We believe that this is the way forward – maximising and utilising better our space to the benefit of our surroundings and the future to come. So far we have generated more than the 250,000 units of electricity through photovoltaic cells.

Our recent and exciting venture has been the state-of-the-art project at the House of the Four Winds in Valletta where all materials and other debris have been separated at source and disposed of in a responsible manner. Double glazed windows will ensure the maximisation of temperature retention and thus the reduction on the reliance on heating or cooling energies. The House of the Four Winds has also been adorned with intelligent LED lighting systems aimed at reducing unnecessary lights. These are only a few of the measures undertaken as part of this new project.

This year was also about contributing towards the reduction of carbon dioxide build-up in the air with a total of 1,600 trees being planted in different locations around the Maltese islands. In one year a total of circa 11,280kg of CO2 emissions would have been absorbed by these trees.

Let us also not forget one of the greatest resources of life – water. This is increasingly becoming a more limited and vulnerable resource; vital to safeguard and precious.

Through an extensive water-saving programme currently being run by the bank, we have so far saved circa 2,844,000 litres of water.

Being environmentally-friendly is not a destination but a journey for the bank.

It is a question of harmonising the needs of mankind with his natural environment.

As simply-put by Margaret Mead “we won’t have a society if we destroy the environment”.

This will continue to be our philosophy – continuing to build on sustainable development and acting as responsible and caring citizens. That is a promise we made and we will remain confident that we will see this through. cc

53

CHAMBER/55

NEWS 01.

Qatar’s first Ambassador in Malta visits the Malta Chamber The first Ambassador of Qatar in Malta, H.E. Ali Saad A. Al-Kharji visited the Malta Chamber on 16th July 2014. The Ambassador met with Frank V. Farrugia, Vice-President, Tonio Casapinta, Board Member and Chairman of the Middle East Business Council (MEBC), Kevin J. Borg, Director-General and Klaus Pedersen, Internationalisation Manager. The Ambassador was accompanied by Third Secretary, Ibraheim Nasser E.S. Al-Nesf.

Mr Farrugia spoke about the Malta Chamber’s relations with GCC countries in general and with Qatar in particular. The Ambassador said that the Qatari Embassy in Malta would work for Qatari companies wishing to do business in or via Malta and also for Maltese companies wishing to do business in Qatar. Mr Casapinta outlined the objectives of the MEBC and summarised the Malta Chamber’s recent visit to Qatar and the meetings held with the Qatar Chamber of Commerce as well as the Qatar Businessmen’s Association.

The Ambassador promised to assist the Malta Chamber in establishing a MaltaQatar Business Council, as agreed with the Qatar Chamber of Commerce.

The establishment of the embassy is the result of the visit of His Highness, the Emir of Qatar, Sheikh Tamim bin Hamad bin Khalifa Al Thani to Malta in 2010.

01.

02.

Dinner with the President of Malta H.E. the President of Malta and Mr Preca held a dinner in honour of the Malta Chamber’s Board of Management at San Anton Palace on 16th July 2014. On behalf of the Board, President David G. Curmi, thanked Her Excellency for acknowledging

the Malta Chamber’s endeavours in the interests of the Maltese business community.

Mr Curmi spoke about the Malta Chamber’s belief in Responsible Entrepreneurship which it promoted actively. He said it was beneficial to the economy and the country that businesses contributed to society and the environment on which they depended. The Malta Chamber promoted Country Specific Recommendations (CSRs) and also sought to influence the manner through which businesses channelled their CSR initiatives.

In conclusion Mr Curmi said that the Malta Chamber was keen to cooperate with the President in the best interests of Maltese society and the economy. The Malta Chamber is of the firm belief that when business worked well, the country worked better and this is for the benefit of the entire nation.

03.

Roundtable discussion about the 2014 Country Specific Recommendations for Malta

03.

AUGUST / SEPTEMBER 2014

The Malta Chamber’s Head of Policy Development Andre Fenech attended a roundtable discussion about the 2014 Country Specific Recommendations (CSRs) for Malta. The event was organised by the European Commission Representation in Malta. These recommendations are based on a thorough assessment of every member state’s plans for sound public finances (Stability or Convergence Programmes) and 57

CC news

03. policy measures to boost growth and jobs (National Reform Programmes or NRPs). The event was attended by all the major local stakeholders and discussed issues related to sustainability of public finances, pensions and healthcare reform, competitiveness, energy and the labour market, education and skills.

The roundtable was a useful opportunity for the Commission to explain the main findings of its Staff Working Document and recommendations, and also to exchange views with the various stakeholders on challenges facing the Maltese economy. During his interventions, Mr Fenech presented the Malta Chamber’s position about each issue.

04.

Way forward on apprenticeships and work based learning The Malta Chamber is participating in activities related to the reform of the apprenticeship schemes in Malta. Andre Fenech was invited by the Ministry of Education and Employment to attend a stakeholders’ meeting with a delegation from the German Federal Ministry of Education and the Research Office for International Cooperation in Vocational Education and Training (GOVET). During this meeting, the German officials presented the German VET Dual System, which is a dual education system that combines apprenticeships in a company and vocational education at a vocational school in one course.

Minister for Tourism Hon. Edward Zammit Lewis, Ambassador of Malta in Germany 58

Dr Albert Friggieri and officials from the German Embassy in Malta were present at the meeting. The meeting served as the right framework for Malta to introduce parts of the German system within the reform that is currently underway. Mr Fenech also attended a second meeting of the MCAST Industrial Action Committee which is currently tasked with the reform of the apprenticeship system in Malta.

05.

Meetings with Palumbo Shipyards The Executive Committees of the Shipping and Bunkering Business Section and of the Association of Ship Agents at the Malta Chamber recently met Antonio Palumbo, Chairman of Palumbo Shipyards.

David G. Curmi, President of the Malta Chamber of Commerce, Enterprise and Industry was present for this meeting. Mr Palumbo requested the meeting in order to discuss ways of improving the services provided by the Palumbo Shipyard as well as to exchange ideas and opportunities.

Those present also discussed the importance of promoting Malta as a high standard maritime hub and the need for a common method for its promotion.

A second meeting was held on 15th July 2014, this time over lunch at Palumbo Shipyards. Members of the Executive Committees of the Shipping and Bunkering Business Section, and the Yachting Services Business Section and of the Association of Ship Agents as well as Kevin J. Borg, Director-General at the

Malta Chamber were present for the lunch which provided a further opportunity for discussion on matters of common interest.

06.

Economic Vision for Malta 2014-2020 The Malta Chamber of Commerce, Enterprise and Industry has launched the ‘Economic Vision for Malta 2014-2020’ – a document featuring 52 recommendations for Malta’s economic future. The document is designed to guide investors and stakeholders about Malta’s future economic direction, thereby facilitating a more efficient allocation of resources.

The document builds on the existing vision 2015 plan, takes stock of Malta’s limited resources, the global scenario and our economic strengths, and past achievements before recommending a way forward that maximises prosperity for the country.

During a press conference held at Exchange Building on 22nd July, the Chamber President said that Malta should aspire towards a “focused and diversified economy, which is underpinned by a high quality, dynamic, productive and innovative private sector.” This is required to help Malta position itself as a global hub for business and investment leading to increased prosperity.

In this context, the Malta Chamber’s vision is built around targets and opportunities for growth in 11 sectors of business.

The document further singles out six fundamentals that are required to secure AUGUST / SEPTEMBER 2014

CC news

Economic Vision for Malta 2014-2020 Full Report

successful growth in the sectors identified.

The six fundamentals are in turn elaborated upon in 52 recommendations for concrete measures needed to drive sectorial growth.

In its vision, the Chamber identified a wide range of sectors because it believes that the preservation of a diversified economy is key.

Diversification promises economic strength and resilience in challenging times. A healthy co-existence of traditional sectors with knowledge and IT-enabled services is vital.

David G. Curmi concluded, “this Economic Vision document provides a novelty in the sense that it is the first one which was articulated by 20 prominent business leaders in the country. It is positioning our Chamber in an ever more proactive role, providing a business agenda for Government rather than accepting a Government agenda for business. In the coming months, the Malta Chamber shall continue to promote our vision with all stakeholders and champion progress for the economic benefit of the nation and our people.”

Signatories to the document are: Anton Borg, Charles Borg, Prof. Juanito Camilleri, David G. Curmi, Louis A. Farrugia, Matthias Fauser, Victor A. Galea, Andy Gatesy, Margarith Lutschg-Emmenegger, John Magro, Christine Pace, Alfred Pisani, Joaquim Silva Pinto, Balesh Sharma, Jonathan Shaw, Ernest Sullivan, Kevin Valenzia, Sergio Vella, Winston J. Zahra and Adrianna Zammit.

the Malta Chamber was the discussion point in two separate editorials on the Times of Malta, as it served as food for thought about pertinent economic issues.

Described as refreshing and ambitious, the Times commends the fact that the Economic Vision is signed by some of Malta’s foremost entrepreneurs. It also comments that “if taken up [the Economic Vision] could help propel Malta forward in its attempts to bring about a higher living standard and improved quality of life.”

The editorial continues to discuss how the Malta Chamber “hits the nail on the head”, when it proposes a culture of excellence in order to ensure economic growth.

In a separate editorial, the Times once again takes cue from the Malta Chamber’s Economic Vision, this time concentrating on its views about the Malta Council for Economic and Social Development (MCESD). It notes the Malta Chamber’s disappointment about the Council, and continues to say that “this is a real, not perceived challenge, one that needs to be taken up with urgency if this country is to hold its own in the greater competitive environment that is developing today following the financial crisis and subsequent recession.” The Times editorial comments that the Chamber’s “outburst ought not to be allowed to fall by the wayside.”

08.

Chamber President calls for political courage Malta Chamber President David G. Curmi called for political courage by the Government in a talking point

published recently in the Times of Malta. He was discussing the Chamber’s Economic Vision for 2014-2020, and how our leaders need to take certain tough decisions that are necessary but that will come at a political cost.

Mr Curmi also appealed for political maturity, as he warned that anyone trying to score cheap political points would be costing the country dearly in the long run. “We need to understand that the whole country is in it together and we must face the coming challenges with a united front,” he commented.

The Chamber President said the Chamber’s Economic Vision is devoid of gimmicks, economic rhetoric or political fodder and is a technical blue-print of the way forward for our country. He called on the political powers to get the engines in motion and start implementing this programme in order to perform the quantum leap the country requires.

09.

Backing action on illegal trade Following action taken by the Customs Department on two men who were apprehended importing alcohol without making the necessary declarations and hence not paying the relevant taxes, David G. Curmi expressed his support of the authorities for their action. It is his view that the situation whereby merchants could import large quantities of cargo without satisfying the necessary documentation was creating an unfair environment, to the detriment of honest merchants who respect all legal obligations at great cost.

07.

Malta Chamber praised in Times leader... twice In the span of three days, the Economic Vision for Malta 2014-2020 published by AUGUST / SEPTEMBER 2014

06.

61

CC news

He asserted that the situation was leading to substantial revenue loss for the Government that would have to be shouldered by the tax payer in the long run. Furthermore, the Chamber President said that the decision to merge the VAT and Inland Revenue Departments would strengthen market intelligence. Whilst reiterating that the Malta Chamber is not against individuals purchasing goods for their personal use from member states, David G. Curmi concluded that this merge would grant the authorities more resources in order to better detect suspicious trends.

10.

Malta Chamber monitors business situation in Libya

13.

The Malta Chamber yesterday held talks with the Head of the recently installed Libya Crisis Unit Dr Theresa Cutajar, in a bid to maintain a constant effort in favour of Maltese businesses affected by the unfortunate events unfolding in Libya. In light of these developments, the Malta Chamber discussed a number of issues on the situation in Libya, and how Maltese businesses can be supported.

Matters discussed during the meeting were support towards maintaining payroll costs whilst business is at a standstill; support towards maintaining senior foreign staff and direct or indirect financial assistance to mitigate cash-flow pressures for affected businesses.

The Malta Chamber is scheduled to continue raising these points with other senior stakeholders in the coming days.

community that creates the country’s wealth, which is then distributed by households.

More so, in the case of the outage, it was the business community, in a wide cross-section of sectors, that suffered the greater blow. Losses suffered by businesses were considerable and included loss of business by tourism, hospitality and logistics operators; loss of hours of productivity in the manufacturing sector as well as loss of considerable stock by importers, distributors and shop owners across the board.

The Malta Chamber therefore strongly reiterates its view that businesses should rank before households on the scale of the planned compensation.

11.

Business should benefit from blackout compensation

12.

Higher cargo handling charges will make Malta less competitive

In the wake of the August blackout, the Malta Chamber of Commerce, Enterprise and Industry issued a press release claiming it was surprised and disappointed at the news confirming that businesses would not benefit from any compensation for losses incurred as a result of the blackout.

Coherent with its stance that wealth must be created before it is distributed, the Malta Chamber has always argued that such incentives and initiatives should be provided to the business community first, and then extended to households. This same stance was taken by the Malta Chamber in the case of the reductions in energy tariffs.

In the same way, the business community should be the first beneficiary of such compensation, as it is the same business

The Malta Chamber of Commerce, Enterprise and Industry expressed its concern and disappointment following news that the Valletta Gateway Terminal (VGT), has decided to increase cargo handling charges, that came into force on 1st September 2014.

In light of Malta’s physical isolation and minute domestic economy whereby international business activity is key to its economic survival, cost effective and competitive communication lines with other countries, especially at port level, are of fundamental importance.

Increases in charges would affect importers at point of importation, while the manufacturing industry would incur these costs both at point of entry, as well as at point of exportation.

62

The Malta Chamber underlined that in a post-recession scenario, the country must refrain from placing further self-induced obstacles in the way of its competitiveness.

The Malta Chamber therefore urged Transport Malta to continue to vigorously object to the planned increases.

13.

Malta Chamber meets MEP Dr Alfred Sant The Malta Chamber received a visit from Member of the European Parliament Dr Alfred Sant in August, during which economic matters were discussed. During the meeting, subjects discussed included interest rates, the Banking Union, the curbing of abuse of free movement of goods, industry and the Malta Chamber’s Economic Vision for Malta 2014-2020.

The meeting also discussed international relations, especially relations between the European Union and the United States; and between the European Union and the Russian Federation in view of the possibility of sanctions coming into force. Bringing the discussion closer to home, the current situation in Libya and its developments were also discussed.

Dr Sant said that points raised by the Malta Chamber were most instructive and that he would endeavour to take them into account in the course of his European Parliament interventions. He also said that he would do his best to keep in touch and offer his support on matters which could be of relevance and importance to the Malta Chamber and its members. cc AUGUST / SEPTEMBER 2014

CC corporate sTRATEGY

Do we have the right strategy?

By Simon Grech Corporate Strategy is probably the most fundamental and complex element of an organisation’s decision-making process. But what exactly is Corporate Strategy?

A

n elaborate definition was provided

by Johnson and Scholes in 2002 (cited in Partridge et al, 2005, p 3) stating that “strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations.”

The aim of this analysis is to study the relationship between competitive advantage, strategic capabilities and organisation culture.

AUGUST / SEPTEMBER 2014

Competitive advantage Ehmke (2008) holds that it is “an advantage gained over competitors by offering customers greater value, either through lower prices or by providing additional benefits and services that justify similar, or possibly higher, prices.” Ehmke feels it essentially answers the question: why should a customer purchase from this operation rather than the competition?

Porter (1980) is the creator of the ‘Five Competitive forces’ framework. This holds that an industry’s attractiveness is influenced by five forces: threat of

entry; threat of substitutes; power of buyers; power of suppliers; and rivalry between competitors. The author states that there are two forms of competitive advantage a firm can have – low cost or differentiation, and that these stem from an ability to deal with the five forces better than competitors. These two forms of competitive advantage can effectively lead a business to adopt one of three potential strategies.

The first strategy refers to cost leadership and revolves around the ability to maintain lowest possible costs 65

CC corporate sTRATEGY for delivering the products or services, maximising flexibility and economies of scale whilst at the same time maintaining market standards that will enable the firm to charge a reasonable price. To succeed, the firm must be the and not a cost leader.

Differentiation refers to a strategy wherein a firm can sell at premium prices within an industry because it is manifestly superior to competition in a valued attribute of the product or service. The costs for creating the advantage must of course be lower than the premium that can be achieved, which in turn must not be excessive in terms of what customers are prepared to pay for the product superiority.

The third strategy is based on focus.

In essence, this strategy combines the other two but concentrates on a specific target segment wherein cost-leadership or differentiation can be better achieved than by trying to target the wider market.

Strategic capabilities Strategic capabilities refer to some of the internal factors influencing an organisation’s success and survival.

Hartman defines strategic capability “as a business’ ability to successfully employ competitive strategies that allow it to survive and increase its value over time.” This capability focuses on the organisation’s assets, resources and market position.

Johnson et al (2011, p 84), explain that there are two components of strategic capability, these being resources and competences.

Due to the ever-changing nature of the business environment, strategic capabilities need to be ‘dynamic’ if they are to ensure an organisation’s prolonged success. Teece et al (1997), view dynamic capability as a “firm’s ability to integrate, build and reconfigure internal and external competences to address rapidly changing environments.” It is a generally accepted principle that dynamic capability is crucial for a business’ long term retention of competitive advantage.

Organisation culture Group culture is defined as “a pattern of shared basic assumptions that was learned by a group as it solved its problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems,” Schein (2004).

The above, oft cited definition indicates the importance of corporate culture within a business. A number of authors simply take its essence as meaning “the way things are done around here”. Corporate culture therefore clearly presents 66

both an opportunity and a challenge for organisations in terms of gaining competitive advantage.

Flamholtz and Randle (2011) argue that a strong company culture can be a valuable asset if the values are constructive and supportive but can also be a liability if they are negative and dysfunctional. The authors go on to state that culture “can even be the ultimate source of sustainable competitive advantage”.

Relating competitive advantage, strategic capabilities and organisation culture Now that the importance of these three areas in terms of corporate strategy has been outlined, it is interesting to establish more clearly the relationship between them. Apart from the obvious effect of the external environment on a firm’s competitive stance, it is equally obvious at first glance that both strategic capabilities and organisational culture could be major contributors to a firm’s chances of achieving competitive advantage.

We have established that internal resources are one of the primary strategic capabilities of a firm. In his explanation of the resource-based view, Wernerfelt (1984) explains that “by a resource is meant anything which could be thought of as a strength or weakness”. Wernerfelt goes on to explain that the advantage of holding a resource may make it more difficult for others to enter or remain in the market competitively. He calls this the resource position barrier.

Grant (1991) holds that a firm’s ultimate strategy should build on its sources of competitive advantage, which in turn

should be influenced by its resources and strategic capabilities.

The resource-based view of the firm holds that sustainable competitive advantage can be achieved if the firm’s strategic capabilities meet the VRIN criteria (Johnson et al, 2011). In essence this means that capabilities need to have value, rarity, inimitability and nonsubstitutability.

Barney (1986) argues that for a “firm’s culture to provide sustained competitive advantage, three conditions must be met: the culture must be valuable; rare; and imperfectly imitable.”

In summary, therefore, it can be assumed that a sustained competitive advantage can be achieved by: adopting a strategy of optimising the use of internal resources and competences; through the creation and maintenance of a functional corporate culture, or, better still through a combination of both. cc

About the author Simon Grech has 29 years of banking experience and is currently Head of Corporate Services at Banif Bank Malta Plc. He is also the current president of the Maltese Institute of Financial Services.

The research work disclosed in this publication is partially funded by the Master it! Scholarship Scheme (Malta).

This scholarship is part-financed by the European Union European Social Fund (ESF) under Operational Programme II – Cohesion Policy 2007-2013, “Empowering People for More Jobs and a Better Quality Of Life”.

Operational Programme II – Cohesion Policy 2007-2013 Empowering People for More Jobs and a Better Quality of Life Scholarship part-financed by the European Union European Social Fund (ESF) Co-financing rate: 85% EU Funds;15% National Funds

Investing in your future AUGUST / SEPTEMBER 2014

Tech Review

From technology fitted to our eyes to cars that drive themselves, it is no secret that technology truly knows no bounds. Martina Said looks into some of the top tech trends to take note of.

01. The smart contact lens There is clearly no limit to wearable technology, as Google has shown us with its novel smart contact lens, which it is developing with pharmaceutical giant Novartis, intended to help patients manage diabetes. This move has enabled Google to expand from its own eyewear technology (so far limited to Google Glass) into the healthcare field. A low-power microchip and almost invisible hair-thin electronic circuit are fitted within the lens, which are able to measure diabetics’ blood sugar levels directly from tear fluid on the surface of the eyeball. The system sends data to a mobile device to keep the wearer up to date.

02. Custom clothing There’s something a little unnerving about wearing technology on your eye, but having technology incorporated into your clothes, well, could prove to be interesting. As chips get smaller and more powerful, they are increasingly being turned into wearables beyond gloves and wristbands. Take, for instance, the incredible nanocoating technology that’s already been applied to clothing by some leading international brands, capable of keeping the wearer dry by repelling water, while also making clothing more breathable. In the not-so-distant-future, technology could produce garments that also contain washable electronic circuitry, through which your socks, shirt or back pack might pack in as much tech as your smartphone.

03.

GADGETS

03. Waterproof anything As phones, tablets and devices get more complex, they also get more expensive, and so our desire to keep them safe from puddles, sinks and bathtubs somewhat increases. Liquipel has a solution: it uses nanocoating technology that allows any device to be covered in a super-hydrophobic layer of particles inside and outside the device. A vacuum first sucks all air out of the device and replaces it with a gas that binds the surfaces and circuits, repelling any liquid that might come into contact with it, therefore waterproofing the item. Another US company – WaterFi – makes use of a rubbery insulator that is injected into the device along with a protective coating against corrosion and chemicals, allowing you to take a dive with your iPod or Nike FuelBand in tow.

01.

04. Self-driving cars Big automotive news for 2014 is the emergence of self-driving cars. Google originally began pioneering technology for other vehicle manufacturers, but is now building its own self-driving car, which will have a stop-go button but no controls, steering wheel or pedals. It resembles a city car in appearance, and is designed to look ‘non-threatening’ in a bid to encourage people to accept self-driving technology.

The front end of the vehicle is designed to be safer for pedestrians, where a traditional bumper is replaced by a soft foam-like material, and a more flexible windscreen which may help reduce injuries is installed.

05. Data security We are hooked to our mobile devices – tablets and smartphones are great for business and we can work from anywhere, have improved turnaround time, increased accessibility and increased flexibility too. But what happens if a mobile device crashes?

Is all data lost? What happens if a mobile device has access to our network and is not protected against viruses and malware? We tend to forget that these wonderful, powerful little gadgets demand the same treatment as our PCs and laptops, but we certainly shouldn’t neglect them, and Kinetix can help with just that, through simple solutions that provide you with peace of mind.

T: 2013 2000; E: info@kinetix.com.mt cc

02.

04.

05.

AUGUST / SEPTEMBER 2014

69

Shaker fabrication project

CC OFFICE DESIGN

Creating a modern office environment From striking décor to vital life-saving machinery, the modern office has a complex job to do. Jo Caruana gets advice from the experts on the latest trends and technology to transform your workspace.

W

orkspaces vary vastly. For some, they are purely a room with a desk and computer, for others they are a tailored environment, such as a kitchen or a garage, while for others still they are complex warrens where numerous aspects and people have to work holistically to facilitate success.

Regardless of all that, one thing most workplaces will have in common is the need to welcome clients or guests. For that reason, ‘reception areas’ are becoming increasingly popular, with businesses choosing to invest in this part of their building.

“We have seen that more and more of our clients are choosing to embellish their reception areas with a well-designed counter that includes integrated features such as logos and corporate colours that effectively portray their identity,” says Danica Falzon from Shaker Ltd, which specialises in solid surface design and fabrication. “The right choices can really transform commercial

AUGUST / SEPTEMBER 2014

and public spaces into works of art, with customised products that give a truly unique feel to the space.”

Beyond the public areas of an office, there has also been a move towards the improvement of staff spaces, such as common rooms and kitchens.

“At Shaker we also customise office kitchens and we have seen the benefit of this. It is important to create a space for your employees to dine, as well as a platform for relaxation, communication, inspiration and idea generation.”

Danica explains that the latest technology integration in counter tops has made solid surfaces the preferred option. Additionally, trends are also moving towards creating open spaces that increase collaboration, flexibility and mobility, and which are supported by vibrant colours and designs.

“Make the most of your space by taking the right colour applications into

consideration,” Danica continues. “Deeper and darker colours are great for large spaces, while brighter and lighter hues work perfectly for smaller spaces. If you are lucky to have lots of space, I would suggest including wall shelving or bookcases to help you utilise the whole area. This sort of storage also works well in smaller areas, as it reduces clutter on the floors and distributes the furnishings around the enclosed walls.”

Meanwhile, health and safety has become another priority for the modern office. In fact, health has never been a more spokenabout topic than it is today.

“There are so many different personal, social or work related factors that nibble away at our health, that every company stands to lose if it does not adopt an attitude towards health and safety at work,” explains Simon Cusens, the CEO at Technoline, a company that has established itself as one of Malta’s leading pioneers in the medical and 71

CC OFFICE DESIGN

“A healthy workforce that is in harmony with its workplace presents a formidable opportunity to any organisation.”

– Simon Cusens, Technoline

Shaker fabrication project

“The right choices can really transform commercial and public spaces into works of art, with customised products that give a truly unique feel to the space.” – Danica Falzon, Shaker Ltd

scientific industries.

“A healthy workforce that is in harmony with its workplace presents a formidable opportunity to any organisation, while accidents at work send shockwaves and create stress and anxiety which are obstacles to keeping the focus on business goals and success.”

As a result of this, many businesses are now choosing to install an Automated External Defibrillator (AED). This is vital should an employee suffer heart failure, as it reactivates the heart through an electrical stimulus.

“Given that such events mean a matter of life or death within minutes, investing in an AED for the workforce may not only spare the company from a catastrophic event with potentially huge consequences but rather permit the company to restore or preserve the life of a dear colleague – with the obvious positive life-changing and bonding effects upon the workforce that come with that,” explains Mr Cusens.

“Having an AED within reach can truly make a difference, as it is highly unlikely that the paramedics or ambulance crew will

Accessible defibrillAt

ion At work

Act today, so you can save an employee tomorrow.

Shaker fabrication project

72

AUGUST / SEPTEMBER 2014

CC OFFICE DESIGN

“Offices have a lot of waste, and it is important for workers to start recognising the different types of waste and how to manage it.” – Mary Gaerty, Green Skip Services Ltd

Shaker fabrication project

reach the patient within the short timeframe available, and the cost investment is low enough that all businesses should be able to afford to make it.”

Of course, one other key aspect that modern businesses have become acutely aware of is the need to be more green. One person keen to help them achieve this is Mary Gaerty, the managing director of Green Skip Services Ltd. “Offices have a lot of waste, and it is important for workers to start recognising the different types of waste and how to manage it. Naturally, paper is the most common type of office waste.

“In my opinion, waste minimisation should be every office’s main aim in this area, followed by waste reuse. If your office is thinking of starting a recycling plan, you should first assess the type of waste that you generate – such as beverage containers, food waste or metal. You also need to decide whether to individualise your waste management by giving each employee a bin, or to create a centralised station of colourcoded bins.”

Mary explains that, regardless of the logistics, each employee should be encouraged to participate in making the office more waste-focused and eco-friendly.

“It helps to share figures related to waste minimisation and recycling as this will encourage them to keep going.”

Mary and her team help businesses to

go green by really learning about the way they work. “There’s a lot to consider – such as the space available, the office set-up and the number of employees,” she says. “We cover everything from the advisory aspect to the collection. And while the whole process

may seem daunting at first, we know that our clients have been very pleased with the results, especially as there are economical benefits to reap too – and that is definitely something that every modern office will want to encourage!” cc

Shaker fabrication project

Shaker fabrication project

74

AUGUST / SEPTEMBER 2014

Finishing Touches Does your office need a little brightening up? Make your workspace pop with Sarah Micallef’s pick of cool and sometimes quirky office accessories.

01. Fun desk accessories Fun and unique desk accessories can take your office from drab to fab in seconds.

Add a little whimsy to your workspace with interesting conversation starters like distinctive letter openers, magnifying glasses, desk blotters and trinket boxes which will put a smile on your face when you’re having a hard day. Cool desk accessories, like this giant sharpener pencil holder by Folly Home, instil a sense of casual style.

02. Vintage desk lamp Fancy yourself a bit of a Don Draper? Bring a vintage element to your office or study by introducing a beautiful Emeralite desklamp. Generally referred to as ‘banker’s lamps’ owing to their link with banks and their tellers, these classic beauties have been around since 1909 when they were produced by H.G. McFaddin & Co. in New York, and have remained a popular choice for those seeking old-world charm.

03. Two-in-One fish tank Keeping a small fountain, plant or aquatic life could have substantial soothing effects when stress levels are high. This creative tank does double duty, acting as both a planter and fish tank, and coupled with its stylish design, also functions as interesting office décor. The plants serve to purify the air, which can be a little stifled in a stuffy office, as well as bring a touch of the outdoors to your working environment.

STYLE

Putting your feet up and relaxing in a hammock are hardly things you’d associate with work, but thanks to the innovative little foot hammock, you can breathe a little easier without going on vacation.

Consisting of a narrow strip of canvas and a set of clips to mount on either end of your desk, the foot hammock adjusts to fit to different desk sizes, and with a lower setting for work and a higher position for rest, your feet are bound to thank you for it.

05. Speak-er Creative product design serves to elevate ordinary products you’d find anywhere into interesting and jealousy-inducing additions to your home or office. These speakers, known as Speak-er, are moulded into speech-bubble shapes, and plug directly into your MP3 player or computer. Online gadget magazine Engadget enthusiastically calls them “the most awesome set of desk speakers this planet has ever known”, and at just four inches tall, they won’t take up too much precious desk space.

AUGUST / SEPTEMBER 2014

04.

06. Unique storage solutions Every office needs space to store all sorts of files, equipment, accessories and other knick knacks, but boring old cupboards aren’t particularly stylish. If you’re looking for an interesting way to store and display an array of items, units like this Cubby Organizer

by Pottery Barn, which was inspired by old-fashioned front-desk organisers used in hotels, could make an interesting feature and nicely highlight a few collections of small items built around an overall theme. cc

01.

05.

02.

03.

REVIEW

04. Foot hammock

06.

77

CC DESIGN TRENDS

An experience for the senses The historic Palazzo Castelletti has witnessed a lot in its lifetime – having been used as a home by affluent families, as a school and shelter during World War II and later for social housing. Now restored into a magnificent catering establishment, Martina Said meets the people who had the palazzo’s best interest at heart from the very start.

W

ith its imposing red doors, restored façade and antique stone walls, the 17th-century Palazzo Castelletti stands tall in the very core of Rabat – like a grandfather figure, protecting the achievements and milestones of its family, this marvellous building is steadfast on protecting the integrity of what exists within its walls, aided by its owners who have painstakingly restored it to its original splendour.

Upon entering the palazzo, the picturesque courtyard immediately captures your attention, within which lies the imposing

78

sculpture of St Andrew, with his right arm lifted in a gesture of blessing. Inside, patrons can enjoy a tasty snack at the Castelletti Salumeria and Patisserie or a spot of fine dining at San Andrea restaurant. On the first floor, visitors can dig into a laid-back meal on the outdoor terrace of RedWhite while looking over the quaint streets of Rabat and, in the winter, the same eatery is taken downstairs into the cellar, which doubles up as a stylish wine bar.

I meet Edward and Maryann Pullicino, siblings and owners of this historic property who were heavily involved in its renovation,

AUGUST / SEPTEMBER 2014

CC DESIGN TRENDS

Photos by Lionel Galea

as well as Keith Psaila, the Managing Director of the palazzo and the mind behind its concept and design. Edward goes back in time to tell of its history and lineage, explaining that the first people known to have lived here belonged to the noble Theuma-Castelletti family, around the same time of the French Revolution.

“There are rumours which have never been confirmed that Adeodata Pisani lived here for a very short period, and the last member of our family who lived here was Mons Carmelo Grima. It was subsequently used for a brief period during World War II by the Sisters of St Joseph as a school, and during that time they also dug out the shelter, which is now used as a cellar.

After that, the property was rented to L’Isle Adam Band Club, and when it relocated to the premises opposite, Government had requisitioned the property to be used as social housing, where a number of families AUGUST / SEPTEMBER 2014

lived for many years.”

Around ten years ago, Edward and Maryann began negotiating with the tenants to take the family property back, which they succeeded in doing, and went on to purchase alternative accommodation for the tenants. “It was in a very bad state,” Maryann explains. “Many internal alterations had been made resulting in extensive damage, such as dividing walls and additional rooms. Everything needed to be restored – we started with the cellars, which were cleaned out and later excavated under the supervision of archaeologist Edward Calleja and the Superintendence of Cultural Heritage. It was discovered that the building rests on the remains of an ancient Roman village, dating back around 2,000 years.”

The building’s façade also needed to be restored, and the paving redone. A fresco adorning the walls of one of numerous rooms within the palazzo, painted by Maltese artist

Mikiel Fsadni in the 50s, was revived by restorer Fr Charles Vella, displaying intricate floral motifs and marvellous designs. This same room now hosts guests for a private and intimate fine dining experience. In an adjacent room, referred to as the altar room, an altar which was patiently put together after it was collected in pieces buried in the soil is nestled in a corner alcove.

Edward says that everything that was old and original to the building was retained, including the main door, the flower pots in the courtyard, the altar in the lounge area and the fountain in the courtyard. But with the creative eye of Managing Director Keith Psaila, the palazzo was given a new lease of life, and transformed into a space that patrons can appreciate and enjoy.

He explains that the concept of housing three eateries within the palazzo emerged from the fact that the building is so large. “It wouldn’t have made sense to have the whole 79

CC DESIGN TRENDS

“There are rumours which have never been confirmed that Adeodata Pisani lived here for a very short period, and the last member of our family who lived here was Mons Carmelo Grima.

It was subsequently used for a brief period during World War II by the Sisters of St Joseph as a school, and during that time they also dug out the shelter, which is now used as a cellar.”

– Owner, Edward Pullicino palazzo offering the same thing, so in order to maximise its use, we split it into different culinary experiences. The palazzo being what it is, immediately seemed logical to offer a fine dining experience with great food, but without the usual stiffness associated with fine dining,” says Keith.

“The idea of the Italian style salumeria sought to introduce something innovative that is not found in most other touristic places, where one can enjoy good food and good produce at very good prices, while the third option of a wine bar emerged due to

80

the fact that we have beautiful cellars here, but apart from that, a nice roof terrace too, so the concept of a wine bar is turned into an open-air eatery in summer, while in winter we

take that all down to the cellars.”

The design and décor of the palazzo revolved around these primary ideas, distinguishing each eatery from another in terms of style, finish and mood. For the classic fine dining section, which is privately sectioned off in a quaint and cosy room on the ground floor and continues in another room overlooking the courtyard on the first floor, the ambience is classic luxury in an old Venetian style, with upholstered wooden chairs, mirrored tables and fine linens. For the salumeria, a rustic setting with wooden tables, chairs and shelving seemed fitting, displaying Italian and Maltese gourmet products available for people to buy.

“We wanted the kitchen to be the focal point of the palazzo. The original plan was to house it on the first floor, but for reasons of practicality and for it to be visible to customers, we constructed it on the ground floor by the courtyard. It is a state-of-the art open kitchen with equipment typically found in hotel kitchens,” Keith explains. “As for the courtyard, we were after nice outdoor furniture resistant to all weather conditions, and which complements the salumeria that is open in the morning but is also appropriate for the evening. We put a lot of thought into AUGUST / SEPTEMBER 2014

CC DESIGN TRENDS

“We wanted the kitchen to be the focal point of the palazzo. The original plan was to house it on the first floor, but for reasons of practicality and for it to be visible to customers, we constructed it on the ground floor by the courtyard. It is a state-of-the art open kitchen with lots of equipment typically found in hotel kitchens.”

– Managing Director, Keith Psaila the lighting of the courtyard, such as hidden lights behind pots, creating a lovely effect in the evening. The main bar on the ground floor – which is another focal point of the palazzo – exudes a classic look with wood and Giallo Valenzia marble.”

As for the eatery on the second floor, which goes by the name RedWhite and was only recently opened for business, the ambience is laidback but equally chic, with its very own kitchen, funky furniture reflecting the restaurant’s name (including white and red chairs, tables, pots and a lit-up bar), and red and white uniforms for the staff.

“We settled on RedWhite because we liked the outdoor furniture in those colours, and we wanted to create a connection with the colours of the Maltese flag. Also, we wanted to link it to red and white wine, seeing as the name will be retained for the wine bar in the cellars in winter, thereby establishing a sense of continuity. The winter menu, however, will evolve to include more trattoria-style dishes, without competing with the other eateries at Palazzo Castelletti.”

The cellars, which are soon expected to be completed, will retain their original and charming characteristics, such as numerous arches and alcoves, and will be complemented with wooden furniture and hidden ambience lighting. “There will also be a viewing platform from the stairs leading down to the cellars, so people can stop and observe the remains of a recently-discovered Roman village found below before heading inside,” says Keith.

Keith adds that different professionals were roped in on the project for their valuable input, namely retired Michelin-star chef Wayne Leadon, who offered plenty of helpful advice on the design of the kitchen, the types of culinary experiences to be offered within the palazzo and the design of the menus; as well as interior designer Patrick Galea and lighting expert Peter Cutajar, who each played their part to help bring the building to life.

“The palazzo is very versatile – apart from AUGUST / SEPTEMBER 2014

the different culinary experiences it offers, we also host business lunches, both private ones and for groups, conferences, functions as well as private parties and weddings too, all while enjoying great food in a pleasant atmosphere,” says Keith, confirming that this marvellous palazzo is more than just a historical building or collection of restaurants – it is an experience for the senses. cc

83

Food of the future With taste buds tingling at the mere thought of the tasty foodie trends making waves in recent months, Sarah Micallef discovers what you can look forward to seeing on menus in the near future.

01. Biscuits While in Europe the term is associated with something altogether different, a biscuit in the US is a small bread with a firm browned crust and a soft interior, which could be matched with sweet or savoury foods, and is similar to a British scone. You’d do well to familiarise yourself with it, as the American biscuit is set to become the next ‘it’ ingredient, replacing the bun in a variety of moreish sandwiches and burgers.

02. Waffle tacos The comfort food trend has given rise to all sorts of interesting variations of goodies. The latest in the line up is the waffle taco, first introduced by Taco Bell, which has caused a major buzz in the breakfast industry this year.

The composition of the waffle taco is simple, with a tasty waffle used in lieu of a taco shell, and stuffed with breakfast goodies like eggs and sausage. If you’re looking for a novel way to eat your weekly naughty breakfast, this should certainly be a contender.

03. Tea While tea has been loved by many for years, the time has come for it to up the ante – showing up in all sorts of drinks and cocktails, as well as featuring as an ingredient in food. Indeed, tea is set to become an ingredient in more food items through various forms of cooking, with variations including tea-poached salmon and tea-smoked chicken. Similarly on the beverages front, tea is looking to be stepping out of coffee’s shadow, with jasmine, hibiscus and green tea being mixed with gin, aperol and tequila, while Absolut have even released a Wild Tea variant.

04. Veggies With the health food movement gaining ground worldwide, and more and more people choosing to go veggie, it is no surprise that greens are going from supporting act to star player. A recent study by food industry market research company Datassential discovered that one-third of restaurant chains in the US nowadays offer at least one vegetarian entrée; while a poll commissioned by the Vegetarian Resource Group in 2012 found that nearly half of Americans eat at least one nonmeat meal per week. While tomatoes and onions remain the most popular veggies on restaurant menus, up-and-comers include foraged foods like mushrooms.

FOOD&WINE

01.

05. Cauliflower Of all the veggies gaining popularity, cauliflower is set to rule them all – becoming the new ‘it’ vegetable. It’s got a lot going for it – as well as being loaded with nutrients; it can also be prepared in several ways, performing double and triple duty. Use cauliflower to thicken your soup without cream, as a stand-in for calorific potatoes, or make it into tasty patties for a yummy treat.

06. Contemporary éclairs First there were cupcakes, then came macaroons, and now its éclairs’ turn to enjoy the sweet tooth spotlight. From the world of French pastry comes the new and improved, colourful and fun éclair, courtesy of Parisian pastry chef Christophe Adam. Gone are boring old chocolate éclairs – in their wake is something sleeker and sexier, in a bright palette and boasting tasty contemporary flavours like popcorn and salted caramel. cc

02.

03.

06.

05.

AUGUST / SEPTEMBER 2014

04.

85

CC CONSTRUCTION

Light at the end of the tunnel for local construction The decline of the construction industry in recent years has been a sore spot in relation to Malta’s economic growth, but the light at the end of the tunnel appears to be getting brighter. Sarah Micallef discusses the current state of affairs with the experts, and finds out what the future holds for local construction.

T

he local construction industry has experienced a turbulent time over the past decade, “correcting a bubble of unrealistic business” which, according to Council Member of the Chamber of Commerce and CEO of QP Management Perit David Xuereb, came about as a result of ever-present markets despite mediocre construction work and an “unprecedented increase in property prices over the years, which gave confidence to seasoned developers and amateur developers alike to engage all forms of construction industry firms to provide products to the relative markets in a profitable manner.”

Further reasons for the decline in the construction industry, according to

AUGUST / SEPTEMBER 2014

Construction Director at AX Construction Ltd Denise Xuereb, were “the global economic crisis which made an impact on the industry since the banks were not financing projects as easily, as well as the tougher regulations being imposed by MEPA, leading to permits being delayed and a decline in both private and public works.”

Once the surge of previous years came to a halt, it challenged developers and contractors to “re-think targets, markets and methods,” and, according to Perit Xuereb, after a considerable amount of correction, the outlook now appears to be bettering.

“Amateur developers are seeking business elsewhere and seasoned developers seem to be addressing the signs of the times by

seeking to improve the act of development from concept design right up to sales, and this includes the engagement of quality contracting firms installing quality products by experienced personnel,” he explains.

Ms Xuereb is in agreement, maintaining, “the construction industry as a whole is still at a lull when compared to a few years back, however, the situation has improved in recent months. The industry today has made big advancements and has come a long way from the typical construction work we are used to – the industry has diversified and there are specialised contractors for various types of work.”

This change, of course, has not come without its challenges. Perit Xuereb believes 87

CC CONSTRUCTION

that Malta still does not motivate younger generations to choose a career in the field of construction. “This may be due to a number for reasons, including limited industry reputation, relatively demanding physical effort, increasing risk and decreasing profitability,” he explains. Indeed, as Ms Xuereb asserts, “the industry in itself poses hard and strenuous working conditions, meaning that the young generation are not choosing construction as their career path.”

In reaction to this state of affairs, various stakeholders within the industry including the Chamber of Commerce, Enterprise and Industry are coming together at the Building Industry Consultative Council to address these matters and raise the profile of the industry amongst our youngsters.

“Recognising the needs of the industry in the near future has motivated the need to identify the gaps in the required skills to address these needs. The Malta Chamber together with the BICC and MCAST have conducted a detailed study of these needs in order to enable a focused approach to the development and investment in the updated and specialised skills that are necessary to

move forward if we are to achieve these new targets. Such new targets include improved quality, energy efficiency, building integrated renewables and green installations,” Perit Xuereb maintains.

Moreover, the industry is also faced with the challenges of addressing a low reputation, popular adverse reactions from the general public and negative perceptions from the green lobby. Indeed, as Ms Xuereb affirms, “a lot of pressure is being put on improving the image of construction and in being more considerate towards the neighbourhood while works are being carried out.” Linked to this, she asserts, is the increase in emphasis on health and safety measures in an attempt to make the industry safer – “although the industry is safer today than it was a decade ago, it still remains a high risk and dangerous industry for all workers involved in one way or another.”

In addition, Ms Xuereb goes on to maintain, another factor that is posing a threat to the industry is the fact that “public tenders are mostly awarded to the cheapest tenderer rather than placing weight on the various parts of the tender submission or

“Amateur developers are seeking business elsewhere and seasoned developers seem to be addressing the signs of the times by seeking to improve the act of development from concept design right up to sales.” – QP Management CEO, Perit David Xuereb 88

AUGUST / SEPTEMBER 2014

CC CONSTRUCTION using the three envelope system. This means that certain inexperienced contractors are being awarded a number of projects compared to more serious and experienced contractors, as ‘cheap’ contractors cut corners which could result in sub-standard health and safety practices, cheap work methods, inexperienced workers and so on.”

Perit Xuereb believes that obstacles relating to negative public perception can be overcome by “moulding the updated industry with a design and development brief that is centred on professionalism, quality product and sustainability,” which has been successfully mobilised by various stakeholders in the industry and “will no doubt have a positive impact on the industry and its various players in the months to come.”

Moreover, in Ms Xuereb’s view, in order for the industry to grow and stimulate the economy, “MEPA needs to be more efficient when it screens project applications, especially when it comes to larger projects, since it is these projects that generate a lot of direct and indirect construction

work. Banks’ confidence in the industry contributes to growth.” She goes on to maintain that construction projects have become increasingly complex and present more of an administrative burden, while project contracting has followed suit; hence requiring professional project managers, which she believes Malta lacks: “project management is a specialised field in its own right, and this should be treated as a separate subject even at University level in an attempt to have graduates specialising in this area too.”

Indeed, while she reiterates that the construction industry has undoubtedly made improvements in recent years; it is Ms Xuereb’s view that the economy as a whole will continue to improve, which will in turn influence the construction industry. In addition, Ms Xuereb maintains that Government projects planned to be embarked upon in the coming months are also set to continue to improve the situation: “Government plans favouring large infrastructural projects should stimulate construction activities even further.” cc

“The construction industry as a whole is still at a lull when compared to a few years back, however, the situation has improved in recent months.”

– AX Construction Ltd Construction Director, Denise Xuereb

CC make the headlines

The setting up of a fully-fledged Managed Warehousing System A company’s success is also determined by its capability to diversify in order to widen its service offer. This was the philosophy behind Express Trailers’ decision to consolidate its warehouse processes and the derived customer-driven solutions when in 2004, upon Malta’s European Union membership, Express Trailers was granted a customs license to operate a customs-bonded store on its premises.

“In 2004, one of our larger clients who had production facilities not only in Malta but also in China and Korea, was looking for a global solution in its supply chain that would connect his operations in China and Korea to Europe via Malta. Together with its global logistics manager, we helped devise a global solution that through Malta, we would consolidate their production and eventually deliver directly to their clients across Europe on the contracted day. This we could offer by taking advantage of Express Trailers’ existing wide export network into Europe,” explains David Fleri Soler, the company’s Head of Sales and Business Development.

“This made us realise that there existed a gap in the supply chain and that clients were increasingly looking for a more complete logistical solution where Express Trailers would be involved even in the final delivery to their end customers. This led us to implement a Warehouse Management System software which was integrated in a way that complemented our existing customised freight-forwarding set up. We gradually established a specialised Managed Warehousing service offering receiving cargo, barcoding, pick and pack, stock inventory and live visibility, different storage solutions and distribution from a centralised location,” adds Mr Fleri Soler.

Through these services, more international countries are now using Malta as a European Regional Distribution Centre.

92

Express Trailers plans shipments from various countries on a weekly basis, handles the customs clearance, receives goods in bulk, re-organises them in pallets according to clients’ orders, warehouses these pallets and prepares them again for export, all on the instruction and on behalf of the client.

“Over the years, the need for this service kept growing and more clients are seeking our expertise. This eventually started opening up new opportunities in other sectors such as furniture, industrial goods, hazardous goods, foodstuffs, fashion and white and brown goods. Today, from a business development perspective, our Warehouse Management System has helped us achieve double digit percentage growth in business volume both in local handling of cargo and in handling of temperature-controlled cargo,” elaborates Mr Fleri Soler.

Such a complex operation, developed over years of investment, also depends on the synergy and infrastructure that support it. Today Express Trailers employs a suite of top managers each with decades of experience and academic qualifications, supported by 190 employees, all having important roles in the company’s operations. It operates a fleet of 98 tractor units and vehicles, 254 trailers, 55 pharma-certified and temperature-mapped trailers, eight warehousing facilities, two temperature-controlled pharma warehouses and a network of routes across Europe,

North Africa and the Far East.

One of the most crucial developments happened when Express Trailers obtained a warehouse and distribution license (WDL) to store temperature-controlled medicines and in 2013 also obtained a Goods Manufacturing Practice License (GMP) from the Malta Medicines Authority to be able to warehouse under quarantine imported medicines from non-EU countries awaiting patent expiry for eventual distribution into EU countries.

“Our warehouse management system means that today we have a centralised operation that allows us to ensure better reliability in internal processes and adoption of Standard Operating Procedures, more control over stocks, constant communication with clients on an electronic and recorded manner, economies of scale when preparing orders for distribution, more visibility and control of items in stock through the provision of data dashboards, efficient invoicing engine, easy retrieval of warehouse goods through better location positions, better planning of inbound and outbound requisitions by the client and the ability to maximise space through the use of technology platforms that show available space.

“Whilst the main outcome of our Warehouse Management System is that it provides peace of mind to our customers who can now outsource their warehouse and stock management function within their operations allowing them to concentrate on their core business, and freeing up a lot of their storage space, the implemented system is just a tool. Our main investment and competitive advantage at Express Trailers is the culture, the tone at the top, the commitment and the obsession to serve the customer. This is the unique Express Trailers fabric. Besides leveraging our competitive advantage, all this has strengthened our position as leaders in the hubbing industry,” concludes Franco Azzopardi, Chairman and CEO. cc AUGUST / SEPTEMBER 2014

CC make the headlines

Risk Management Services (Malta) concludes an iGaming survey The iGaming industry is celebrating its ten-year anniversary. Thanks to a coordinated effort by practitioners and officials at the Lotteries and Gaming Authority the industry has flourished, employing thousands and Malta can proudly claim to be one of the main hubs in Europe. As happens with any other industry following a decade of constant growth, this can lead to a level of complacency in the sector, thinking there is no other mountain to climb. Complacency is not hoodwinking the regulator; on the contrary there is a drive to actively “future-proof the industry”, quoting the words of the Chief Executive Officer of the LGA, Joe Cuschieri.

In light of this, Risk Management Services (Malta) Limited embarked on a study this year to analyse the mood of existing operators, testing their sensitivity for change and directly enquiring whether they have immediate and near-future plans for the regeneration of the local iGaming industry.

The survey which is the sole property of Risk Management Services (Malta), as it is not sponsored or supported by LGA or the industry trade associations, was circulated to circa 150 companies that collectively hold 450+ licenses. In addition to the survey, Risk Management Services (Malta) conducted one-to-one meetings with major operators, ranging between 100+ to 500+ employees, from which it had a golden opportunity to obtain a deeper appreciation of the challenges and solutions which face the industry.

In brief, we are now proud to present a summary of our online survey with the aim to help the industry consolidate on the strengths of its first decade.

To start with, the introduction of the Point of Consumption Tax in Britain, henceforth referred to as PoC ushered in a sea of uncertainty whereby operators are still weary of how this taxation will work. In fact, when asked if the operators targeting UK customers would like to attend conferences/information sessions organised by the LGA on the subject, a staggering 94.6 per cent confirmed their wish to attend. Given that the impact of tax is still somewhat unknown, operators were hesitant to gauge the loss, if any, to their UK market. An important argument was that in the case of operators that target solely the UK market, the Maltese license would forfeit some of its comparative advantages.

This, notwithstanding the fact that if other EU jurisdictions had to follow suit and each impose a POC, then the Maltese authorities may have to offer improved incentives to

AUGUST / SEPTEMBER 2014

retain existing operators.

The most upsetting comments came from smaller companies as they questioned their future in Malta given the fact that as it stands today their products are competitive in the UK but in the near future as they cannot afford to absorb the PoC tax, consequently their future is not a bright one. Given the fact that as previously stated the PoC taxation is still an unclear journey with an unknown final destination, when discussing tightening of fiscal regulations in other jurisdictions some respondents did not have clear ideas of possible repercussions to be suffered. A good chance of relocation to Malta may arise for some of the UK facing operators currently domiciled in Gibraltar, Isle of Man and/or Channel Islands.

Thinking out of the box, and after studying developments in licensing frameworks in other jurisdictions a high percentage of respondents (73.17 per cent) opted for the suggestion that LGA introduces a master license with the possibility of a sub-license.

When the operators were asked if they would expand their horizons by tapping alternative markets, 78.05 per cent replied that they would indeed be interested in doing so. Without any doubt, the LGA is encouraged to sign more Memoranda of Understanding with third countries.

Signing of Expressions of Interest were also encouraged while educating licensees via outreach programmes was considered to be the least helpful. Other hiccups included the existence of a skills gap and 75.61 per cent claimed that they find it difficult when recruiting personnel in technical areas. The concluding section asked the licensees for feedback on their ongoing experience and interaction with the regulator, and the replies showed inter alia that staff at the LGA are perceived to be knowledgeable and helpful. cc

Enquiries can be forwarded to Lynsey Schembri – Senior Statistician on email lschembri@pkfmalta.com T: 2148 4373; E: info@pkfmalta.com; www.pkfmalta.com; www.tunemalta.com

95

CC make the headlines

The value of relationships

Parker Randall Turner is a long established entity with offices located both in Malta and Gozo, serving both local and international clients. Our practice begins and ends with the value of relationships.

We view every client relationship like a partnership, and truly believe that our success is a result of their success. Parker Randall Turner’s services are first choice for every business, regardless of its size, status, or nature.

We offer all the traditional services offered by audit firms together with assurance services, accounting, business re-engineering, consultancy, marketing, marketing research services and trust and fiduciary services through our licensed company As part of our consultancy services we give advice to non-resident clients on the various benefits that are available to non-resident persons who are interested in becoming Maltese tax residents. One of such programmes is the Global Residence Programme. This programme attracts persons who are neither EU nationals nor nationals of Iceland, Norway or

‘Blink’- An innovative online solution for eCommerce service providers Nowadays, consumers are spoilt for choice when it comes to selecting a store for their online shopping. It is therefore, increasingly important for companies to ensure that their websites stand out from the crowd.

This can only be achieved if traders can find the right expertise and support when setting up an online store or extending their business online. Finding the appropriate help in such cases is certainly no mean feat, and this often discourages businesses from taking the plunge to invest in digital technologies.

The Malta Communications Authority (MCA) has broadened its efforts to address such a gap by setting up an online directory branded ‘Blink’. This is the first of a host of initiatives stemming out of the National eCommerce Strategy, covering a seven year period (2014-2020), which the Authority was tasked to draft, and subsequently implement. The strategy aims to ensure that entrepreneurs are equipped with

96

Liechtenstein, Maltese long term residents or Swedish nationals.

In order to be eligible for this programme the applicant must own or rent property, known as qualified property either in Malta or in Gozo and subsequently occupy this property as his principal place of residence.

The property must be of a minimum set value. For example if the owned immovable property is in the South of Malta it must have a value of at least €220,000 whilst if it is in any other place in Malta it must have a value of at least €275,000. On the other hand if the property is situated in Gozo the property must have a value of at least €250,000.

Similarly if the property being rented is situated in the South of Malta or in Gozo it must at least be rented at €8,750 per year whereas if situated in any other area in Malta it must be rented at €9,600 per year as a minimum.

In conclusion the applicant must, apart from the above, satisfy a number of other factors such as having a stable and regular income, enough to maintain oneself and his dependants. Moreover one must have a valid travel document with health insurance that again covers both oneself and dependants.

Last but not least, the applicant cannot carry out the application himself but must be represented by an authorised registered mandatory who can be either an advocate, legal procurator, notary public, accountant or member of the Institute of Financial Services practitioners/Malta Institute of Taxation/ Malta Institute of Accountants/Malta Institute of Management. cc

the necessary means to capitalise on opportunities brought about by eCommerce.

It also addresses a number of challenges businesses are facing in eCommerce, one of which is the availability of information on the skill sets required to take the bold first step to sell online.

Blink is a practical resource that provides easy access to all the information required by businesses who wish to take their operations online. It is a directory specialising in eCommerce service provision and has been purposely designed around a number of stages that reflect the different phases required to set up an online shop. This complements the Authority’s efforts to provide essential information to entrepreneurs interested in providing eCommerce services. Back in 2009, the Authority had published the ‘eCommerce Guides for Business’ with the intent of creating a one-stop shop of information for those who offer eCommerce services or intend doing so. Therefore, Blink, is a step further in assisting potential online traders.

It will be officially launched in October aimed at providing an extensive list of the entities that offer ancillary services to online traders, making it easier for the latter to source the products and/or services they require for

their eCommerce project.

The MCA is inviting businesses and selfemployed individuals who offer eCommercerelated services, to submit their details online via the link www.mca.org.mt/blink to form part of this online tool, according to the categories selected in the online form.

Although, the Authority has tried to be as exhaustive as possible in the identification of areas that are related to eCommerce, it welcomes any suggestions in this regard. The listing in this directory is on a voluntary basis and completely free of charge.

Blink, a trader’s first step towards investing in eCommerce. cc

Parker Randall Turner Head Office, 13, Curate Fenech Street, Birzebbuga.

T: 216 54567; E: info@prturner.com.mt; www.parkerrandallturner.com

AUGUST / SEPTEMBER 2014

CC make the headlines

“Economies adopting RMB trade hold advantage” - HSBC Commercial Banking As the notion of the Asian Century starts to become a reality, economies that conduct business in renminbi (RMB) – the Chinese currency – hold the advantage for their exporters, according to a recent HSBC Commercial Banking survey.

The 11-market survey notes that whilst twothirds of companies in mainland China and Hong Kong said foreign firms doing business with China gain financial and relationship advantages from using RMB, awareness of these potential benefits varies widely overseas.

Overall, 59 per cent of decision-makers surveyed said they plan to increase their cross-border activity with mainland China over the next 12 months, rising to 86 per cent in the UK, 73 per cent in the UAE and 63 per cent in France. At the same time, only 22 per cent said their company currently settles business in RMB. HSBC Malta’s Head of Commercial Banking Michel Cordina explains: “the findings confirm the growing importance of RMB as a world currency. As part

Creating a better climate for businesses to operate The setting up of a new Business Development Unit within the Planning Directorate is enabling the Malta Environment and Planning Authority (MEPA) to provide a more efficient and business-oriented service, with a strong emphasis on reducing bureaucratic procedures and increasing efficiency.

Over the past months the Authority introduced a number of new measures and initiatives to create a better climate for businesses to operate and grow. One of the first measures is the substantial reduction of fees when submitting a planning application. On average, planning application tariffs for a proposed commercial development have seen a 34 per cent reduction. To further encourage businesses to invest and regenerate our village cores, works associated with the restoration and rehabilitation of old buildings are exempt from a planning application fee.

To reduce red tape and bureaucracy on development applications, the Authority extended up until March 2015 the validity period of all expired planning development permits issued after 3rd August 2006. It also AUGUST / SEPTEMBER 2014

of HSBC Group, HSBC Bank Malta, which is the only bank in Malta offering Direct Trade Settlement in RMB, is well positioned to assist its customers wanting to carry out transactions in RMB as well as facilitate trade through this currency, as part of our ongoing Malta Trade for Growth initiative.”

The Head of Global Banking and Markets for HSBC Malta James Woodeson says: “the growing use of China’s currency worldwide is also generating capital investment and financing opportunities for companies doing business internationally. The benefits for corporates using RMB include improving working capital, simplifying processes and

mitigating payment risks.”

Other highlights of the survey note interesting facts: RMB adaptability outside of China is the highest in France (26 per cent) and Germany (23 per cent) respectively; that of all the companies using the RMB to settle cross-border business today, 59 per cent expect to use it more over the next 12 months; and that 32 per cent of companies that do not use the RMB already expect to do so in the future.

The survey also notes that the main reasons for using the RMB include requests from trading partners, reducing FX risk, convenience, winning new business and gaining better pricing. cc

increased the validity period of a compliance certificate from six weeks to three months.

Over the past months the Authority has worked intensely on updating and enacting a number of new planning policies, making them more pertinent to today’s realities.

Such policies which have a strong bearing on the commercial sector include the publication of a new legal notice regulating the Use Classes Order, the Floor Area Ratio Policy regulating tall buildings and the revision of the Hotel Height Limitation Policy.

Other policies and plans that are relevant to businesses and are being updated include the Structure Plan and Local Plans, the Solar Farm Policy, the Development Control Policy and Design Guidance, and the Fuel and Service Station Policy.

A protocol aimed at addressing grey areas regarding accessibility for people with mobility problems has been agreed with the National Commission for Persons with Disability (KNPD). This protocol will facilitate that certain commercial activities will be exempt from the ‘access for all’ regulations.

In the coming weeks,

the Authority will further enhance the One Stop Shop concept, which will make the procedure and system for applying for a development permit simpler and cheaper.

Furthermore, MEPA continues to welcome suggestions from the public and the business community on how to further reduce bureaucratic procedures and increase efficiency within the Authority. These suggestions can be made by calling the coordination unit on 2290 2005. cc For more information about the Businessense measures and initiatives visit www.mepa.org.mt/businessense

99

CC make the headlines

FlexiFit: Now in your office For your business, the implications are clear: encouraging physical activity translates to fewer health issues and improved employee performance – a fact that many large companies figured out long ago. One key action you can take to achieve this goal is to find a way to motivate your employees to start – and keep – exercising.

However, it is also clear that not all employees are young and fit. Age, excess weight, injuries and medical issues, do not always permit employees to take part in high impact, high energy exercise. Employers also require the type of exercise regime to have a direct correlation with the office space. This is why FlexiFit is a leader in the field. FlexiFit offers different fitness programmes that your employees are going to be more likely to stick to, working on posture and reducing back pain, keeping employees active at work and injury-free. Exercises are graded and ideal for people with back and knee problems including sciatica and slip discs, overweight employees, middle aged and elderly. This is because exercises are based on functional movements (such as standing tall and

climbing stairs), strengthening areas which are directly linked to office performance.

These exercises are recommended by doctors and physiotherapists as they greatly reduce back pain and repetitive strain injuries.

Plethora Dance at Work Enjoy a team experience to remember with our ultra-fun dance and fitness themed days, from dance-offs to performances, or a day of relaxing movement. These events can be naturally incorporated into a conference, form part of an evening function or dinner or serve as a standalone team building event.

By moving together, in an atmosphere of physical and emotional safety, teams will learn to react to the unexpected and plunge into challenges with confidence! Our experience means anyone, regardless of age or gender, can enjoy and excel with our workshops.

We offer a huge portfolio of activities you can choose from. Have a look at some of our ideas on www.plethoradance.com and give us a call on 9949 0896 or email us with your brief on plethoradance@gmail.com and be prepared for exciting activities we will recommend to you. cc

Experience the difference at San Andrea Restaurant San Andrea Restaurant within Palazzo Castelletti, Rabat, is the latest addition to the list of top restaurants that one can find in Malta. It is a restaurant different from the ordinary, especially given the high standards that it reaches when it comes to food quality, service levels and amazing palazzo surroundings. The level of skill and art involved in the food preparation are just unrivalled. In addition, the high quality service being offered in a historic setting is simply delightful.

San Andrea Restaurant, specialising in contemporary Mediterranean cuisine in a creative and innovative way, offers something different for the palates of all good food lovers. The menu is also changed every quarter to ensure that it remains amusing and enticing for regulars who are guaranteed there is always something new and varied to look forward to. As a matter of fact the new San Andrea Autumn menu has just been released in the beginning of September. The foie gras and chicken liver parfait, the fillet of local lampuki meuniere and the trio of chocolate fondant, brownie 100

and white chocolate mint delice come highly recommended as starter, main and dessert respectively.

Interestingly the management has also thought about going that extra mile for all dining patrons by offering a free Park and Ride shuttle service from Saqqajja Hill to Palazzo Castelletti and back, every Friday and Saturday evening.

Palazzo Castelletti also caters for group party celebrations and special occasions in any of the catering outlets apart from San

Andrea Restaurant. Indeed within the same palazzo one can also find the RedWhite cellars as the perfect backdrop for an Italian trattoria night out or Castelletti Salumeria and Patisserie as the homely new concept eatery.

All lend themselves perfectly to classy parties celebrated in style with a difference. cc For reservations or more information call Palazzo Castelletti on 2145 2562 or 9910 9911 or visit www.palazzocastelletti.com AUGUST / SEPTEMBER 2014

CC INTERNATIONAL BUSINESS

A planned internationalisation strategy towards the Middle East In the midst of a campaign by the Middle East Business Council aimed at enhancing Malta’s visibility in the Middle Eastern region, The Commercial Courier catches up with MEBC Chairman Tonio Casapinta for an insight into the road ahead.

S

ince its inception, the Middle East Business Council (MEBC) within the Malta Chamber of Commerce, Enterprise and Industry has endeavoured to establish itself as a credible entity to represent and promote business opportunities that exist at both ends of the scale. Currently half way through a campaign aimed at enhancing Malta’s visibility in the Middle Eastern region, MEBC Chairman Tonio Casapinta affirms that it is badly needed, stating, “in spite of sporadic past efforts, Malta is not currently well-known in this part of the world.”

AUGUST / SEPTEMBER 2014

“The fact that the Gulf is the region of opportunities is known to all, specifically countries like Dubai, Abu Dhabi, Qatar, Oman, Kuwait, Bahrain and Saudi Arabia. Malta has established diplomatic missions in Kuwait and Riyadh, and it is hoped that a Maltese embassy will be opened in Qatar in the near future. We also have an active Trade Office in Dubai. However, officers are not enough.

Malta needs to have regular presence in the region through visits and events,” Mr Casapinta maintains.

One of the first projects proposed to Government by the MEBC was the Ministerial

delegation that visited Dubai, Adu Dhabi and Qatar last March. From the outset, the event was a success mainly because the Malta Chamber, along with Malta Enterprise and Finance Malta, had a solid focus on what needed to be achieved prior to the visit through thorough market research of the regions being visited.

The delegation, headed by Dr Chris Cardona, Minister for the Economy, Investment and Small Business, was composed of private sector companies already established in the region, together with representatives from various other 103

CC INTERNATIONAL BUSINESS

“The fact that the Gulf is the region of opportunities is known to all, specifically countries like Dubai, Abu Dhabi, Qatar, Oman, Kuwait, Bahrain and Saudi Arabia. Malta has established diplomatic missions in Kuwait and Riyadh, and it is hoped that a Maltese embassy will be opened in Qatar in the near future. We also have an active Trade Office in Dubai.

However, officers are not enough. Malta needs to have regular presence in the region through visits and events.”

Government entities including Malta Enterprise, Malta Industrial Parks, Finance Malta, The Malta Freeport, Identity Malta and others. Various meetings were held at the Chambers of the three countries visited, and presentations about Malta and its offerings for trade and investment opportunities were presented.

Speaking of the visit, Mr Casapinta asserts, “a Memorandum of Understanding was signed with the Abdu Dhabi Chamber of Commerce, whilst strong ties have been forged both with the Dubai Chamber and the Qatari Business Association.”

Notwithstanding, he goes on to emphasise the importance of follow-ups, maintaining that an agreement has already been reached for such visits to be made on a regular basis, while looking at the various opportunities available in the region. A repeat mission is now planned for 20th September 2014, with a visit to Dubai.

Meanwhile, as a follow-up of the March mission, Mr Casapinta and the MEBC hosted the President and CEO of the Dubai Chamber, H.E. Hamad Buamim for a business forum at the Malta Chamber on 9th June. On this occasion, Mr Buamim underlined the economic performance of Dubai with growth rates hovering around 5 per cent in both 2013 and 2014. He also spoke of the future for business in Dubai and of the main pillars of new growth as envisaged by the Dubai Chamber.

Besides the Dubai Chamber of Commerce, the MEBC is also endeavouring to host representatives from other organisations which were visited in March. During such visits, Mr Casapinta explains, officials will obtain first-hand information about investment opportunities as well as about Malta’s potential contribution as a landing zone and gateway to Europe and North Africa. This will also be achieved through the signing of a Strategic Partnership Agreement with the Dubai Chamber of Commerce in September, which will put in place a mechanism that will be organising an annual 104

forum on a bilateral basis in each country.

“Considering the much needed followup to outbound delegations, we aim to enhance our approach with market research to shed light on which countries offer local companies the best opportunities for penetration and what kind of business opportunities our members are looking for,” Mr Casapinta maintains. Moreover, the MEBC together with Finance Malta will be participating in the World Islamic Economic Forum, where Malta can be promoted as an emerging base for Islamic Finance designed services. MEBC will also have a presence at the African Global Summit – both events will be held next October in Dubai.

Additionally, similar requests for cooperation were proposed to the Oman Chamber of Commerce, whilst the first session of the Qatari-Malta Business Council is planned to be held in Malta in the near future. “Such activities augur well for our

future presence in the Middle East,” Mr Casapinta says, explaining that Malta would have eventually had two trade missions: a Ministerial visit and participation in two conferences in 2014. “This is a good start, which bodes well for an aggressive visibility campaign.”

In light of this, Mr Casapinta declares that the MEBC welcomes the recent announcement by the Prime Minister in a leading financial publication in Dubai, that the Maltese Government is considering the issue of Sukuk (more commonly known as Islamic Bonds). This, he affirms, serves to send out a clear political message that Malta is well placed as a future Islamic financial jurisdiction.

“These plans are laying the necessary foundations for the private sector to act and find open doors to do business in the region,” the MEBC Chairman states, referring to the private sector as the primary driver AUGUST / SEPTEMBER 2014

CC INTERNATIONAL BUSINESS behind economic prosperity, yet emphasising the need for it to operate within a national strategy that encourages the generation of new business opportunities through internationalisation.

On the other hand, Mr Casapinta goes on to highlight the fact that Malta is seen to have a safe and stable economy – a destination for international business and investment. “This we have seen through the results of FDI efforts in recent years, which resulted in an influx of companies and senior executives relocating to Malta from neighbouring countries together with their families, especially following the Arab Spring.

Existing Middle East derived investments in such sectors as telecommunications, banking and real estate provide a good basis for attracting additional projects,” he expounds.

Within the Malta Chamber, the MEBC will continue to promote Malta and its attractive business environment, having intensified its efforts to reach out to new and emerging markets through the Chamber’s

Internationalisation Desk, covering such added value to membership, whilst also strengthening bilateral ties with other Chambers and local institutions such as Malta Enterprise, Finance Malta and the Ministry of Foreign Affairs (through participation on the Joint Stakeholders Working Council).

In light of this, Mr Casapinta on behalf of the MEBC strongly suggests that Government considers the establishment of commercial offices both within the embassies on the ground in the region and also in countries considered to constitute lucrative niches for trade and investment opportunities. These offices will complement the Chamber’s internationalisation efforts, broaden the Chamber’s presence and benefit members.

Africa and the Middle East represent important emerging markets for Maltese business, especially in areas such as financial services, ICT, maritime and logistics services. With this in mind, the MEBC will

“Considering the much needed follow-up to outbound delegations, we aim to enhance our approach with market research to shed light on which countries offer local companies the best opportunities for penetration and what kind of business opportunities our members are looking for.”

be organising and participating in the organisation of events and activities aimed at facilitating internationalisation and raising awareness about Malta. This includes the organisation of information meetings on ‘doing business’ in different countries, trade missions abroad in cooperation with Malta Enterprise and Finance Malta, as well as welcoming business delegations visiting Malta. “Here, we also see opportunities of FDI, in spite of the fact that such delegations are primarily export-oriented, as nevertheless, it is important for us to be in a position to turn similar opportunities to our advantage,” Mr Casapinta maintains.

As an intrinsic part of the Malta Chamber, the MEBC will also continue to pursue the mission to encourage more companies to begin the journey of internationalisation.

This, according to the MEBC Chairman, is the only way for business expansion in our small island economy. “After all, through experience gained so far, the Malta Chamber now understands that our Business Councils are a very efficient way to help firms venture abroad. The model has been vindicated by the results obtained within the various Councils which in their own right have created a vast international business network for our Chamber, fully supported by the Internationalisation Desk through its constant updates of members’ knowledge.” cc