The Malta Chamber of Commerce, Enterprise & Industry Administrative Report 2013 by Content House

THE MALTA CHAMBER OF COMMERCE, ENTERPRISE AND INDUSTRY

Administrative REPORT March 2O13 - February 2O14

gold collaborating partners

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Contents 08

Foreword by President David G. Curmi

Introduction by Director General Kevin J. Borg

Council of the Malta Chamber of Commerce, Enterprise and Industry 2013/2014

Economic Groups Executive Board Members

The Malta Chamber of Commerce, Enterprise and Industry Staff

Events Highlights

Malta Chamber Publication La Borsa - The People, The Building, The History

Policy Positions 2013

Relations with Diplomatic Corps

Economic Groups Importers, Distributors and Retailers Business Sections: HealthCare; Importers; Pharmacists Pharmacy Owners; Wines, Spirits, Beverages and Tobacco Manufacturers and Other Industries Business Sections: Electrical and Electronics; Food and Beverage Processors; Pharmaceutical Manufacturers; Plastics and Rubber Manufacturers

Marketing 81 Research, Technology, Development and Innovation 81 SME and Family Business 84 The Malta Electronic Communications Providers Task Group 84

46 47

51 55

Services Providers 61 Business Sections: Financial Services; Information 61 Technology; Real Estate; Remote Gaming; Road Contractors; Shipping and Bunkering; Tourism; Yachting Services

Policy Committees Environment and Energy 69 Human Resources 71 Internationalisation 74

GOLD SPONSORS

SILVER SPONSOR

Executive Committees - Business Sections, Policy Committees, Business Councils

Malta Chamber Commissions set up by Statute

Consultation Malta Council for Economic and Social Development Malta-EU Steering Action Committee

89 92

Examination Services

Surveys

Administration

ISO:9001

Malta Chamber Foundation

Corporate Social Responsibility Project

Public Relations

101

Media Releases

102

International Scene BUSINESSEUROPE 102 EUROCHAMBRES 105 European Economic and Social Committee 106 Malta Business Bureau 107

105

Nominees on Boards and Committees

113

Make it an event to remember at The Exchange Buildings â&#x20AC;&#x201C; The Seat of the Malta Chamber

110

BRONZE SPONSORS

The cut-off date for information published in this Annual Administrative Report is 28th February 2014. Events occurring after this date will appear in the 2014-2015 report.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013

Milestones achieved by the Malta Chamber in 2012 and 2013

â&#x20AC;&#x153;My election to the post of President coincided with a change of Government and a period of adjustment and building of new relationships with incoming Ministers and people in key public sector positions. Despite this unusual scenario of change, we are pleased to report on our milestones and achievements for business over the March 2013 - March 2014 period.â&#x20AC;? David G. Curmi

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Open Dialogue with our Political Leaders Within the scenario of the change in Administration, our Chamber sought to consolidate its position as a leading representative of business with the country’s political leaders. This position was acknowledged from an early stage of my Presidency when the Prime Minister was invited to a lunch given in his Honour by the Chamber and attended by the general membership. The Prime Minister, in fact, had encouraging words for the Malta Chamber and the manner in which it had established itself as the leading business organisation on the island. He complemented us for our researched and constructive manner in which we consistently presented our objective positions to his Government. In January this year, Dr Muscat also accepted an invitation for dinner with our Council members and spouses and, in February, the Hon Dr Joseph Muscat addressed a two-hour, informal dialogue session with our members. Similarly, the Leader of the Opposition was also invited to address and Council members during the year. We believe that these events give great value to our members as they provide a perfect opportunity for them to air their views directly before the powers that be. Policy As indicated above, the period under review was characterised by active representations aimed at ensuring the right conditions in the country for business to prosper and grow. As the champions of national competitiveness, we consistently emphasised the need for Malta to embrace a balanced economy and that national competitiveness needed to be continuously enhanced. Economic Vision Our Chamber was proactively engaged in the formulation of an Economic Vision for Malta, since, at the start of my Presidency, it was apparent that the country required a blueprint to guide all stakeholders in the allocation of scarce resources with a view to maximise their wealth creation potential in the country. I am pleased to announce that our document shall be launched soon. Our plan has been formulated over the past months, by a group of twenty CEOs of leading companies in Malta and the Rector of the University. It is therefore, not a top-down, command-economy type of approach with which we do not agree. Our Vision is for Malta to have “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” until 2020. The time-frame coincides with that of the European Union’s Multiannual Financial Framework and overlaps into a subsequent legislature. We shall therefore seek the support of all political parties and the Social Partners at large for our proposed Vision. An Industrial Policy for Malta In connection with the Economic Vision, our Chamber kick-started a process of updating its proposed Industrial Policy which it had originally presented to Malta Enterprise in 2012. The Malta Chamber perceives Manufacturing as a key important pillar of its Economic Vision and supports the objectives of the European Commission and Business Europe for Industry to contribute 20 per cent of GDP across Europe by 2020. Proposals to reach this ambitious objective are outlined in BusinessEurope’s Industrial Compact to which our Chamber contributed. BusinessEurope’s proposals were formally submitted and presented to the Presidents of the European Union’s three institutions in January 2014. On this occasion, our Deputy President, Anton Borg made an intervention, appealing for a fairer and more equitable state of affairs between all European operators and citizens to better facilitate a fair contribution to European Industry by operators located in small peripheral states.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

The Individual Investor Programme Perhaps, the Chamberâ&#x20AC;&#x2122;s most visible contributions were those made in the context of the Individual Investor Programme. We were pleased to note the recent agreement reached with the European Commission on the subject and that the country can now put this controversy behind it and concentrate on other urgent matters to business. Our Chamber, once again, took a proactive approach in making its recommendations to both Government and the Opposition. We are pleased that all our proposals were accepted by both sides and that virtually all our ideas were incorporated into the final version of the scheme, thereby rendering it more workable and acceptable. It is pertinent to note that we only intervened after discussions on the matter had shifted from whether Malta should in principle offer citizenship to non-EU nationals to the actual terms and conditions under which citizenship should be granted. Naturally, we would have been much happier had political consensus been reached and we also commented that we would have also appreciated a better handling of the matter by Government. This would have avoided the matter being so long drawn out, causing unnecessary reputational damage to the country. Health Care Reform Another area where the Chamber strived to bring about political consensus was in Health Care Reform. Our efforts culminated in a national conference we held in our Building last January to discuss the way forward for an efficient, fair and sustainable healthcare system. The event was addressed by the Health Minister, the Shadow Minister and the Bishop of Gozo. Three relevant Business Sections within our Chamber tackled the matter jointly for several months. In the process, I accompanied them to important meetings where they discussed their ideas with the Prime Minister, the Health Minister, the Shadow Minister and the Church. Our Sections suggested schemes that apply the benefits of â&#x20AC;&#x153;prevention is better than cureâ&#x20AC;? to the national resources dedicated to healthcare. Our suggestions ensured that medicine distribution would remain free in accordance to the positions of the two main political parties. At the same time, we suggested methods to secure the rights and welfare of the least privileged. We suggested ways to free up resources for the State to be in a position to widen the medicine formulary with important and advanced drugs, which would help keeping patients healthier and reducing their need to seek urgent attention at Mater Dei and Health Centres. Proposal for revision of electricity rates for energy-intensive operators Our Chamber embarked on another proactive initiative to study and quantify the possibility of lowering the electricity rates for the highest energy intensive companies on the Island. To this end, a position paper was presented to Government and Malta Enterprise. The paper presented aggregated data of the annual consumption of the highest energy consuming manufacturing companies in Malta. The Malta Chamber recommended that electricity rates should be lowered in such a way that the resulting average effective rate is reduced to bring it in line with the EU average. The exercise also estimated the impact of a reduced rate in terms of savings for industry and allowed the costing of some potential alternatives for Government. Our study highlighted the urgency for the required reforms need to be implemented without further delay, ahead of the March 2015 target announced by Government.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Regional Aid Intensity Guidelines

“I would like to emphasise that the achievements recorded in the last twelve months were largely a team effort made by my colleagues on the Board of Management, Council and permanent staff.”

Another in-house formulated study addressed the impact of new Regional Aid Intensity Guidelines on Malta’s investment incentives framework. This position paper was submitted to Government and Malta Enterprise last November. Based on investment data collated from major manufacturing companies, the position paper outlined objections to the EU’s application of Regional Aid policy which was resulting in unfair and inconsistent classification and treatment towards Malta, as it ignored the permanent handicaps of a small, peripheral island-state. It explained that business operations at a local level are affected by significant and permanent geographical disadvantages typified by our country’s remoteness, insularity and small size. These factors restrict our access to economies of scale and to sizeable markets. It also affects costs indirectly, because the country’s small size, for instance, also has a bearing on the maximum efficiency levels it is able to achieve in generating and distributing electricity. It proposed that Malta’s permanent disadvantages are addressed by permanent compensatory measures and are not allowed on the basis of variable factors such as the measure of GDP. The Chamber also recommended the adoption by the EU of the principle of common but differentiated responsibilities rather than the “one-size-fits-all” approach. These proposals and recommendations were raised on several occasions at BusinessEurope and during meetings with the European Parliament Office in Malta as well as other occasions organized in anticipation of the European Parliament Elections. Overseas Representations As part of our representation work overseas, I joined State Visits to Palestine, Israel, Austria and Slovakia. I am indebted to fellow members who covered business delegations to other important business destinations including Germany and the Middle East. Besides, as part of my duties as President, I represented our Chamber at important BusinessEurope Council of Presidents meetings held in Dublin and Vilnius. Furthermore, we have kept regular contact with the majority of foreign ambassadors accredited to Malta. Malta Chamber Foundation The Malta Chamber Foundation, established in 2012, experienced a period of transition this year mainly due to the changeover between EU funding periods. The principal aims of the Foundation are to identify relevant EU funding opportunities in-line with the requirements of Malta Chamber members. This year, our Vice President Frank V. Farrugia took over the Foundation’s reins from Helga Ellul who stepped down from her official Chamber positions to run for a seat in the European Parliament. The work of the Foundation during its second year of existence is elaborated upon within this publication and centred on the delivery of its responsibilities in the Build-Up Skills project in which it actively participated. Our deliverables here consisted mainly on the preparation of a study that outlined the skills gaps in the local construction industry in the area of green building. Conclusion It gives me great pleasure to report the above summary of our extensive work undertaken since March last year. I would like to emphasise that the achievements recorded in the last twelve months were largely a team effort made by my colleagues on the Board of Management, Council and permanent staff. I can certainly vouch for the selfless attitude adopted by all in dedicating precious time and effort towards ensuring a prosperous economy for Malta and a favourable business environment for our members. As stated above, the profile of the Malta Chamber is ever increasing and I look forward to another year of hard endeavour, leading the Malta Chamber to further success for the benefit of members.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

DG REPORT

“As Director General, it is my pleasure to summarise the Malta Chamber’s major achievements this year.” Kevin J. Borg

number of highlights characterised my work and that of the 18-strong team in the 12 months under review. Amongst these were the launching of the La Borsa Publication; winning the first and second prize in the National Enterprise Support Awards; the closing of the successful CSR Project; and the rolling out of new projects such as the launching of the Middle East and Portuguese Business Councils. This, besides the organisation of a number of well-attended, high level events for the benefit of members and a successful re-classification in the ISO 9001 (2008) Quality Management Standard for the organisation.

Main Policy Contributions ➤ Economic Vision 2014-2020 ➤ Regional Aid Intensity Guidelines ➤ Proposal for High-Energy Intensive Operators ➤ Waste Management Strategy ➤ Justice Reform White Papers ➤ Early School Leaving Strategy ➤ National Employment Policy ➤ Individual Investor Programme ➤ Budget 2014 Consultations ➤ Family Business Act ➤ Healthcare POYC White Paper ➤ Eurochambres Economic Survey 2013 ➤ Public Procurement Simplification

Policy and Consultation During the period under review, I oversaw the formulation of a number of policy positions adopted by the Malta Chamber and its autonomous groupings. Budget Consultations Besides the listed policies, due to this year’s extraordinary circumstances, we experienced the passing of two Budgets in Parliament in less than twelve months – those for 2013 and 2014. Naturally, our Chamber participated actively in the consultations taking place both before and after. In all instances, we called for fiscal consolidation as a primary objective to complement Malta’s relative economic strengths as well as to make certain of a stable economic environment which could generate enough wealth to finance the social security system that our people have become accustomed to. At the time of presentation of the 2014 Budget, we were satisfied to note that a vast number of our proposals had, in fact, been included in the Budget including the commitment towards public finance consolidation and the introduction of voluntary third pillar pensions to supplement the current PAYG system. Whilst also supporting – in principle – the shifting of the burden from direct to indirect taxes, the Chamber did not agree with the increases in Excise Duties on alcohol and other commodities due to Malta’s poor track record in enforcing indirect taxes. Without the necessary

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

safeguards and enforcement, the Chamber felt that the increases would fuel further abuse and unfair competition between honest and dishonest operators. For similar reasons, we supported Government’s announced evaluation of Eco-Contribution. Our consistent stand on the matter is that this tax should be eliminated because, so far, it could not be effectively enforced. In terms of the Budget, the Chamber welcomed measures that support small and micro enterprises. These included efforts to address excessive bureaucracy and initiatives that facilitate access to finance such as the extension of the JEREMIE fund, Micro Invest and the introduction of the Hybrid Venture Capital Fund. National Employment Policy As part of our representation within the Jobs+ Committee, the Malta Chamber submitted extensive feedback on the formulation of a renewed national employment policy. Our submissions focused on three main principles which in our opinion remain the most important issues to tackle if the country is to achieve a better functioning labour market. These were (1) structural labour market factors; (2) low labour market participation; and (3) the skills challenge. It is believed that further labour market reforms are needed to reduce unneccessary rigidities which hamper productivity and competitiveness levels. Nevertheless, we recommended caution in implementing the reform to ensure a healthy balance between the employer and the employees. Fiscal and Market Surveillance Within a number of fora, we continued to insist on the removal of enforcement disprepancies which resulted in an unfair level playing field between companies that operated under full legal compliance and others that did not. This situation was affecting a number of sectors in both trade and services to the detriment of lawabiding companies, government revenues and consumer interests. We continued to advocate the setting up of a multi-departmental single authority armed with the necessary resources and executive powers to, once and for all, proactively enforce taxes, laws and regulations on those that operate below the radar and beyond the knowledge of any authority including fiscal. The consolidation of scarce resources of the various entities presently responsible for enforcement was needed to reverse the unacceptable practice of bona fide operators being subjected to continuous and selective inspections. Experience showed that companies with long and impeccable track records of fiscal compliance bore the brunt of continuous scrutiny and inspections because this was the most convenient approach for enforcement officers. This approach intensifed the unlevel playing field. At the time of writing, the Chamber was insisting on closure of this long overdue matter. Programming of European funds for Malta for the 2014-2020 period As a primary stakeholder in representation of the private sector, the Malta Chamber sought to take an active role in the consultation process on the Programming of European Funds for Malta for the 2014-2020 period. Our position in the use of EU Funds for the forthcoming programming period centred around the role of the private sector in contributing towards Malta’s socio economic balance whilst the country, in turn, supported the achievement of Europe’s 2020 targets. The Malta Chamber regarded the degree of allocation of funds in aid of private enterprise as essential to enhance national competitiveness. In this regard, we submitted a number of concrete proposals aimed at enhancing the private sector’s role. The Malta Chamber further argued the need to simplify the application processes for SMEs and larger firms as well as introduce shorter reimbursement periods. It was argued that over the course of the previous programming period, the Chamber was obliged to make repeated representations on difficulties experienced in the implementation of EU Funded schemes.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Social Dialogue During the period under review, I represented the Chamber on the Jobs + Committee, the MCESD Restructuring Committee as well as on the main MCESD Council where our Chamber actively raised its prime policy concerns for discussion with the country’s social partners. As usual our arguments were always backed by thoroughly researched position papers. The principal issues discussed regularly at MCESD throughout the year were education policy, precarious work, access to finance, waste management and the 2013 and 2014 budgets passed in April and November 2013 respectively. Throughout the year, we made a number of attempts towards strenghtening the consultation process amongst the social partners. To this end, we held several individual meetings with MCESD officials and participated in the Restructuring Committee of MCESD. On these occasions, we recommended measures to improve the relevance and autonomy of MCESD and suggested measres to ensure better management of meetings and building of an agenda that addressed, in a holistic manner, the economic and social priorities of the country. All throughout, we insisted that MCESD is afforded the necessary financial and human resources it required to conduct research and formulate technical reports to complement the discussions. We continued to oppose the inclusion of further organsiations on the Council unless these were ‘national employers’ or ‘workers’ organizations’ and unless there was consensus amongst the present Council members. We believe that increasing the number of members on MCESD would upset the current formula and render meetings even less manageable. Besides MCESD, we also made active contributions within the MEUSAC Core Group, Malta Enterprise Board, the RPI Management Board and the Employment Relations Board. La Borsa Publication This year the Malta Chamber published its premium quality book entitled ‘La Borsa – The People, The Building, The History’ edited by Judge Giovanni Bonello. The launch event, last December, brought to a close several months of planning and intensive work. The book, in fact, includes a variety of articles both general and specific. A history of the Malta Chamber is addressed from a number of angles; the general history, the links between “The Chamber and Malta’s Bankers” and “The ‘Borsa’, a social meeting place with cultural aspirations” are among the titles of extensive essays found in the book. The publication discusses the architecture of the building and also features information on the sculptural group which once adorned the façade and the building that stood in place of La Borsa. A sizeable part of the book is dedicated to the portrait gallery with appreciations of each painting. The “Vedute” or Valletta paintings are studied in depth as is the contemporary art collection. The book also includes articles about the personal experiences of prominent personalities when doing business in the 1980s. The final section of La Borsa is dedicated to the personal memoirs of Past Presidents gathered into one essay. This publication served as a testament to Malta’s strong commercial foundations so much so that, in his foreword, Judge Bonello described the Malta Chamber as a “force impossible to ignore and difficult to challenge.” CSR Project In January this year, we successfully concluded our joint Corporate Social Responsibility (CSR) project which we undertook with Bank of Valletta. The project was brought to a close with the launching of an audio-visual toolkit and report. These exposed messages of best-practice in CSR from a number of entrepreneurs and business operators. Overall, the project involved a number of interested members and aimed at mapping out the conduct and development of CSR initiatives by Maltese companies, giving additional promotion to the concept of responsible entrepreneurship amongst

“We believe that increasing the number of members on MCESD would upset the current formula and render meetings even less manageable.”

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

the business community and maximising the benefits of CSR to both business and society at large. Internationalisation Our Internationalisation Desk – under the guidance of a dedicated Committee – continued in its mission to bring foreign markets closer to the local business community. The work of the Internationalisation Desk is based on three strands: Information, Co-operation and Service Projects, and is supported by the existing Cooperation Agreements with HSBC, FIMBank and Regus (Malta). The tasks of the Internationalisation Desk are demand-driven by the results of an extensive profiling exercise of members’ current and planned internationalisation efforts. This task is ongoing and is facilitating a more personalised and relevant service to companies, while enabling qualified input to the national debate about the priorities of trade and investment promotion. It was for this particular initiative that the Chamber was awarded first prize in this year’s National Enterprise Support Awards. The prize ceremony was presided by the Minister for the Economy, Investment and Small Business. Besides, the Internationalisation Desk carried on in its work to assist members in finding new alternative markets through contacts and networks at its disposal. It was also responsible for supporting Chamber representatives travelling on business delegations abroad and for our active participation in ASCAME which is the Association of Mediterranean Chambers. Business Councils From the experience gained in recent years, we now know that Business Councils are a very efficient way to help firms venture abroad. In fact, Business Councils provide the ideal forum to connect Maltese business people with international companies based in Malta in order to share experiences, information and intelligence. Over the past twelve months, our Internationalisation Desk launched two new Business Councils for the Middle East and Portugal – the latter with the kind support of Banif Bank. These are now added to the recently established German-Maltese, Scandinavian and Tunisian-Maltese Business Councils. All Business Councils were exceptionally active in promoting commercial opportunities with their respective territories during the period under review. The activities of our Business Councils are amplified upon in the Internationalisation section of this report. High-Profile Events A number of high level events were held at the Chamber to complement the profile of the organization. These events were very well attended and included separate events with the Prime Minister - a lunch for members (July) and a Dialogue Session (February); a Euro-Mediterranean Conference on Textiles and Clothing (April); a National Conference to launch the EY Malta Attractiveness Report (October); EESC – Lessons from the Economic Crisis (October); a Conference to Promote Business Opportunities in Innovation and the Environment with the Netherlands (January); and a National Conference on Health Care Reform (January). In conclusion, I thank all my colleagues at the Malta Chamber for their dedication and team-work. Under the guidance of the Board of Management, Council, Economic Groups and Committees, I look forward to another award-winning year of service to the business community.

â&#x20AC;&#x153;Business Councils provide the ideal forum to connect Maltese business people with international companies based in Malta in order to share experiences, information and intelligenceâ&#x20AC;?

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Council of the Malta Chamber of Commerce, Enterprise and Industry 2013-2015

COUNCIL Board of Management

Past Presidents

President: Mr David G. Curmi Deputy President: Mr Anton Borg Vice President: Mr Frank V. Farrugia Member: Mr Tonio Casapinta Member: Mr Sergio Vella Member: Mr Charles A. Zahra

Mr Louis Apap-Bologna Mr Adrian Bajada Chev. Baron Adrian Busietta Mr Joseph R. Darmanin Mr Anthony S. Diacono Mrs Helga Ellul Mr Louis A. Farrugia Mr Martin Galea Mr Victor A. Galea Mr Francis T. Gera Mr Stefano Mallia Mr John E. Sullivan Mr Joseph N. Tabone Mr Tancred Tabone

Members Mr Norman Aquilina Mr Martin Borg Mr Charles Brincat Ms Claudine Cassar Mr Matthias Fauser Mr Reginald Fava Mr John Huber Mr Andrew W.J. Mamo Mr Mario Spiteri Mr Christopher Vassallo Cesareo Perit David Xuereb

Hon. Legal Advisor: Dr Hugh Peralta Hon. Architect: Mr Stephen Mangion Hon. Chaplain: Fr. Thomas Moore

* By virtue of article 4.22 of the Statute of the Malta Chamber of Commerce Enterprise and Industry, following the resignations of Mr Stefano Mallia and Ms Helga Ellul in view of their candidacy to the forthcoming European Parliament elections, Mr Tonio Casapinta joined Council as provided by Rule 4.8 of the Statute. The other position will remain unfilled for the remainder of the term as there were no further candidates from the Service Providers Economic Group in the March 2013 elections. Mr Casapinta was also elected as Member of the Board of Management at the Council meeting held on 8th August. Mr William Wait resigned from the Board of Management, as required by Article 4.12 of the Statute, in order to take up the post of Deputy Chairman of Malta Enterprise. Mr Wait could no longer serve on Council following a change in his Corporate Membership

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Economic Groups Executive BOARDS Importers, Distributors and Retailers Mr Andrew W.J. Mamo – Chairman Mr Martin Borg – Deputy Chairman Mr Christopher Vassallo Cesareo – Vice Chairman Mr Reginald Fava Mr Frank V. Farrugia Mr Charles A. Zahra Manufacturers and Other Industries Mr Matthias Fauser – Chairman Mr Norman Aquilina – Deputy Chairman Mr Sergio Vella – Vice Chairman Mr Anton Borg Mr Charles Brincat Services Providers Perit David Xuereb – Chairman Ms Claudine Cassar – Deputy Chairperson Mr John A. Huber – Vice Chairman Mr Tonio Casapinta Mr Mario Spiteri * By virtue of article 4.22 of the Statute of the Malta Chamber of Commerce Enterprise and Industry, following the resignations of Mr Stefano Mallia and Ms Helga Ellul in view of their candidacy to the forthcoming European Parliament elections, Mr Tonio Casapinta joined Council as provided by Rule 4.8 of the Statute. The other position will remain unfilled for the remainder of the term as there were no further candidates from the Service Providers Economic Group in the March 2013 elections. Mr Casapinta was also elected as Member of the Board of Management at the Council meeting held on 8th August. Mr William Wait resigned from the Board of Management, as required by Article 4.12 of the Statute, in order to take up the post of Deputy Chairman of Malta Enterprise. Mr Wait could no longer serve on Council following a change in his Corporate Membership.

The Malta Chamber of Commerce, Enterprise and Industry Staff Mr Kevin J. Borg - Director General Mr Andre Fenech - Head – Policy Development Mr Lino Mintoff - Head – Sectors Mr John B. Scicluna - Head – Quality & Administration Ms Johanna Calleja - Manager - Statutory Affairs & Administration Mr Klaus Pedersen - Manager - Internationalisation Ms Rachel Bartolo - Executive – Sectors Ms Lina El-Nahhal - Executive – Internationalisation Ms Marilena Gauci - Executive – Policy Ms Claire Rizzo - Executive Assistant to the President and Director General Mrs Elena Scicluna - Executive – Education Ms Diane Seychell - Executive – Marketing & Communications Mr Robert Tabone Valetta - Executive – Sectors, Development & Research Mrs Dorianne Formosa - Front Office & Events Co-ordinator Ms Bernice Azzopardi - Support Secretary Mr Anthony Tanti - Examinations Clerk Mr Joseph Fenech - Support Staff Mr Charles Maione - Support Staff

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Events highlights

The malta chamber of commerce, enterprise and industry

Minister Cardona addresses Malta Chamber Annual General Meeting

Annual Administrative Report 2013

David G. Curmi Elected Malta Chamber President

peaking at the Malta Chamber’s Annual General Meeting in March 2013, Minister for the Economy, Investment and Small Business Chris Cardona said that the newlyelected Government was a government which cared, and a Government built after thorough consultation with social partners who would be fully-involved. The Hon. Chris Cardona also expressed his intention to invite the three Economic Groups making up the Malta Chamber’s membership, to meeting to discuss this prospects, views and challenges. The Minister said that the new Labour Government wanted to be an ambitious Government which would target 28 per cent of foreign direct investment coming into Europe, and also commented that it was crucial to constantly look into ways of how Malta could better attract new investment. The newly-elected Government intended to make Government authorities accountable and transparent. Minister Cardona declared that the Government is committed to fight bureaucracy. A system would be put in place whereby the setting up of a new business would require applying for just one permit, instead of several. The issue of utility bills was high on the Government’s agenda and during the month of April the Government would be issuing an international call for expressions of interest for its energy plan, the Minister said. The Hon. Chris Cardona also referred to a number of business sectors which the Government would treat with the importance they merit. Among these were the manufacturing sector which was very relevant for the future of Malta, and emerging sectors like maritime, ICT, multimedia and gaming sector would be given prominence. The Government believe in a diversified economy, and to this end it would be committed to enhance the infrastructure and skills base available in Malta. In so doing, the Government will also be ensuring that jobs are safeguarded and that new ones are created. The Minister concluded by thanking the Malta Chamber for the opportunity to address its members who were ultimately the protagonists of Maltese business, and pledged commitment to sustain what was working well and to listen to what the business community has to say.

avid G. Curmi was unanimously elected President of the Malta Chamber for a two-year term. The election was uncontested and took place during a Council meeting held on 4th April. Mr Curmi is the Chief Executive Officer of MSV Life p.l.c., Chief Executive Officer and Director of Growth Investments Ltd., Director of Middlesea Assist (a Mapfre company), Director of Plaza Centres p.l.c., Director of Midi p.l.c., Council Member of the Malta Insurance Association, Director of the Protection and Compensation Fund, and Chairman of L.B. Factors Ltd. He is an Associate of the Chartered Insurance Institute of the United Kingdom and a Chartered Insurer. Mr Curmi is a regular lecturer on various insurance topics at the University of Malta and at the Malta Insurance Training Centre. He joined the Malta Chamber in 1988 and previously served as Vice President in 2002 and 2003, as well as in other Board of Management positions. He was also active in the merger process between the Malta Chamber of Commerce and Enterprise and the Malta Federation of Industry, particularly in the drafting of the Statute for the merged Chamber. Upon his election, Mr Curmi thanked his fellow Council members for their confidence and support and pledged his full commitment to reciprocate their trust. He expressed his belief in inclusive leadership and that he would also seek the widest possible participation of Board and Council members in leading and representing the organisation. Malta Motorways of the Sea renews agreement with Malta Chamber

alta Motorways of the Sea has renewed its Bronze Support Agreement with the Malta Chamber. The new three-year agreement was signed by Dott. Emanuele Grimaldi, Chairman at Malta Motorways of the Sea and Mr David G. Curmi, President of the Malta Chamber. “Malta Motorways of the Sea have supported the Malta Chamber since 2009. Prior to the merger, the company previously supported the Federation of Industry, and has renewed its commitment ever since,” Mr Curmi said. The Malta Chamber President also praised Malta Motorways of the Sea Managing Director Ernest Sullivan and General Manager Joseph Bugeja for their active participation in Malta Chamber committees and activities.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Events highlights

The malta chamber of commerce, enterprise and industry

Dott. Grimaldi said that Malta Motorways of the Sea was proud to associate itself with the Malta Chamber. He said that the Malta Chamber’s national mission and role to promote enterprise and growth to the benefit of all its members, the economy and nation were worthy of his company’s special support. He also mentioned his company’s wider role in the context of serving the local business community via modern vessels equipped with latest technology so as to ascertain the highest level of service and efficiency to the local business community. Malta Chamber wins first prize for National Enterprise Support for Second Consecutive Year

he Malta Chamber was once again awarded first prize in the National Enterprise Support Awards 2013, an event sponsored by Government and the European Commission, in recognition of those entities and organisations who have made exceptional efforts to assist SMEs. This was the second consecutive win for the Malta Chamber, who this year also managed to secure the second prize. The Malta Chamber was awarded first prize for its “Internationalisation Survey” project. The Internationalisation Survey project is the cornerstone of the work conducted by the Malta Chamber’s Internationalisation Desk. The Desk continuously looks for companies with international activities or ambitions, and proceeds to interview them personally in order to ascertain which countries they target, what activity they undertake there and what sector they belong to, among other variables. The data collected from this profiling exercise is then inputted into a database which the Desk uses to make general assessments about the international orientation of Maltese companies. This database acts as a prime source of inspiration for projects and initiatives taken by the Internationalisation Desk, not least the formation of Business Councils. The Malta Chamber won second prize with its Linking Enterprise project. Linking Enterprise is a service the Malta Chamber offers its members, consisting of company visits, and giving members the unique opportunity to share best practice from other companies. The Malta Chamber represented Malta with its Internationalisation Survey project at the European Enterprise Support Awards in Lithuania in November.

Annual Administrative Report 2013

A Message for Growth to the Prime Minister

he Malta Chamber hosted the Prime Minister in what was a sell-out event attended by 150 members. “This is evidence to our business community’s genuine eagerness to dialogue with Government and contribute to the nation’s well-being” said Malta Chamber President David G. Curmi, upon welcoming the Prime Minister. Mr Curmi referred to the international economic climate and declared that Malta must aim for growth. He said that the Malta Chamber believed that national competitiveness was the only determinant to growth. “Growth is the ‘be all and end all’ of Malta’s path to future prosperity”, he said as he listed a number of factors which the country needed to get absolutely right in the context of maintaining national competitiveness. These included ensuring a healthy, balanced economy within which the private sector is empowered to invest to maximize its output, offering the investor a flexible labour market with the required skills at competitive wages and conditions, consolidating public finances including the control of government-guaranteed debt and the sustainability of pensions and free healthcare system, supplementing the efforts of the private sector with a modern, well-resourced and efficient public sector, supporting innovation, research and education, through the consolidation of efforts and scarce resources, and exploiting lucrative opportunities in the international market because, ultimately, any growth in Malta must be export-led. In this context, the Chamber President maintained that political determination and leadership were essential. He said, “there are decisions to be taken and reforms to be made some of which, our country can no longer afford to postpone. The solutions we require are not of the ‘quick-fix’ kind. We need long-lasting, sustainable solutions.” Mr Curmi pledged the Malta Chamber’s commitment and eagerness to work closely with Government in order to find the necessary solutions in the interest of the country’s well-being and in order to mobilise investment, facilitate access to credit and focus on growth rather than austerity. The Chamber acknowledged the projects and initiatives - for which “expressions of interest” were recently issued - as drivers for growth in the coming years and months. Government’s proactiveness in reinstating the Global Residence Scheme was similarly acknowledged as a means to stimulate a wide range of business sectors which this scheme will impact in a more than positive way.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013

Events highlights

On this occasion, Mr Curmi announced that the Chamber was in the process of mapping out an Economic Vision for Malta for the 2014-2018 period. To this end, it formed a “high profile think-tank” made up of a select group of entrepreneurs and CEOs from within its membership base to contribute towards the process which shall commence in the coming days and is expected to be finalised by October. Mr Curmi concluded by highlighting the resilience and dynamism of the private sector which, given the necessary direction and the right impetus to invest, will create jobs and growth. Growth and job creation, he said, were a primary social, political and business priority. “Give us the right environment for business to invest and prosper and let us do the rest. Let us together give economic growth a chance. Our members will not let this country down” concluded the Chamber President. On this occasion, the Prime Minister was accompanied by the Deputy Prime Minister and Minister for European Affairs; the Minister for the Economy, Investment and Small Business; the Parliamentary Secretary for Competitiveness and Economic Growth; and the Chairmen of Malta Enterprise and the Malta Council for Economic and Social Development.

Scicluna; and Parliamentary Secretary for Competitiveness and Economic Growth, the Hon Edward Zammit Lewis, as well as the Leader of the Opposition, the Hon Simon Busuttil, and the Deputy Leader of the Partit Nazzjonalista, the Hon. Beppe Fenech Adami, who all had the opportunity to mingle with members in an informal and relaxed atmosphere. This was one of a series of functions organised by the Malta Chamber to allow members the opportunity to meet with their business associates in a social context.

Malta Chamber Staff Training

Vodafone Renews Agreement with Malta Chamber

seminar for all Malta Chamber staff took place on 18th September. The purpose of the seminar was to discuss the present and future needs of members and ideas to improve on the service currently offered. The seminar was facilitated by David Spiteri Gingell. The seminar started with a group discussion about the Chamber, its mission and the way forward. This was followed by brainstorming sessions and a final summing up by Mr Spiteri Gingell. Similar training and team building sessions will be held on a regular basis. Malta Chamber Summer Event

he Malta Chamber Summer Event was held at the Xara Lodge on 24th September. Over 170 members attended this annual event, which this year took place with the city of Mdina as its magnificent backdrop. The President of the Malta Chamber, David G. Curmi welcomed members and also the Minister for Sustainable Development, the Environment and Climate Change, the Hon Leo Brincat; the Minister of Finance, the Hon Edward

odafone renewed its Bronze Support Agreement with the Malta Chamber. The two-year agreement was signed by then Vodafone CEO Balesh Sharma and Malta Chamber President David G. Curmi. Through this agreement Vodafone pledged special support to the Malta Chamber’s national mission and role to promote enterprise and growth for the benefit of all its members, the economy and ultimately the nation. Whilst thanking Vodafone for its support, Mr Curmi remarked that the Malta Chamber considered Support Agreements as constructive alliances. He said it was through commendable actions such as Vodafone’s that the Malta Chamber was able to generate benefit and value to the local business community. Mr Sharma said “we are happy to continue supporting the Chamber in their mission of creating favourable economic conditions which, ultimately, benefit the wider community. We look forward to build on this successful relationship over the coming two-year period.”

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

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Events highlights

The malta chamber of commerce, enterprise and industry

Wine tasting evening

he sixth edition of the Malta Chamber’s Wine Tasting Evening took place on 18th October. This event has become a fixture in the Chamber’s annual calendar and one which is well-supported by those members who produce or import wine and also by the general membership. The number of persons attending seems to be rising every year, with over 200 persons at this year’s event. The Malta Chamber does not charge a participation fee but it does ask for those attending to make a donation at the entrance. The money collected this year will be presented to Caritas Malta. The participating companies were: Antonio Piscopo Co Ltd, Cassar Camilleri Ltd, Charles Grech & Co Ltd, Farsons Beverage Import Co Ltd, Francis Busuttil & Sons (Marketing) Ltd, M Demajo (Wines & Spirits) Ltd, NM Arrigo Ltd, Red October Co Ltd, S Rausi Trading Ltd, and Wembley Stores Co Ltd, who presented wines from: Argentina, Australia, Campagna, Chile, France, Friuli Venezia Guilia; Malta, Northern Italy, Piemonte, Sicily and South Africa. The event would not have been possible had it not been for the sponsors Continental Purchasing Co. Ltd who supplied Schott Zwiezel Glassware, Villa Arrigo who provided the food and Professional Marketing Services Ltd who printed the invitations. National Conference marking the launch of the EY “Malta Attractiveness Report”

Annual Administrative Report 2013

n 25th October, Malta Chamber President David G. Curmi welcomed 160 persons to the national conference entitled “The Economy – Today and Tomorrow” on the Malta Attractiveness Survey 2013 which was co-organised by EY and the Malta Chamber. The event was held to discuss the results of the survey carried out by EY. The Malta Chamber supported this initiative because it believes that local and foreign investments were crucial to Malta’s economy. In his opening address the President said that the Malta Chamber was a key stakeholder in ensuring the best conditions for investors and that through this report EY provided a concrete tool to assist in fulfilling this mission. He said that it was imperative for Malta to retain its objective of aiming for export-led growth from its balanced and diversified economy. Mr Curmi spoke about the results of the annual EUROCHAMBRES Economic Survey and the industrial confidence index compiled by the Malta Chamber on a monthly basis for the European Commission. The emerging sentiment was positive but net employment generation had tapered during in the past three years. The economy remained heavily reliant on the performance of export-oriented operations with local companies registering a decline in exports in 2013. This showed a need to be vigilant in safeguarding competitiveness especially when considering the competition from countries which had instituted pay cuts as part of austerity measures introduced to recover from the economic crisis. He said that Malta must take heed of the evolving competitive dynamics. Nothing could be taken for granted but the Malta Chamber sometimes doubted whether other social partners were on the same wavelength in understanding the urgency of this need. For several years the Malta Chamber had championed the cause of competitiveness, expressing its concerns about rising labour costs and labour market inflexibilities. Mr Curmi cited precarious work, the Maternity Leave issue and the failure to introduce a measure of productivity in the COLA mechanism as examples. In closing Mr Curmi said the report was a valuable tool for the Malta Chamber to further develop its policies and to better prepare for dialogue with government and other social partners. The findings of the report were what the Malta Chamber thought about the country as a domicile for business. He said that rendering the economic environment more attractive to investors was an ongoing process. The Malta Chamber appreciated the opportunity to discuss a topic which was so essential to the interests of members, to discuss the findings of this survey and start to find the answers to the question: how can we make Malta a better place to invest in? The conference was also addressed by the Hon. Prof. Edward Scicluna, Minister of Finance as well as Prof. Jan Peter Balkenende, former Prime Minister of the Netherlands and currently a Partner, Corporate Responsibility at EY. Other speakers included Mr Ronald Attard, Country Managing Partner of EY Malta, Mr Matthias Fauser, Chairman of the Malta Chamber’s Manufacturers and Other Industries Economic Group, the Hon. Dr Mario de Marco, PN Spokesperson on Economic Affairs.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Events highlights

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013

Graduation ceremony for the Diploma in Manufacturing Excellence

President’s Annual Reception 2013

n November, the Malta Chamber hosted the graduation ceremony for fourteen graduates who successfully completed the Diploma Course in Manufacturing Excellence between the years 2011 and 2013. The graduates were congratulated by Malta Chamber President David G. Curmi, who said that he was greatly encouraged by the graduates’ initiative to specialise further in manufacturing. Mr Curmi emphasised the importance for businesses to continuously invest in their employees’ education as this was one of the foremost pillars upon which Malta’s economy must be built. A Diploma provided students with an opportunity to formalize that which they have learned through experience, whilst having their knowhow and capabilities validated. In conclusion, Mr Curmi said that “our country will benefit from a relevant and skilled workforce, providing our industry with a better chance of building and retaining a more resilient and competitive position.” Also speaking at the graduation ceremony was Stephen Cachia, Principal and CEO of MCAST, who gave a brief account of the idea behind the initiative to launch this Diploma, which was initiated from a close collaboration between the College and the Malta Chamber. This course, accredited by the City and Guilds, was aimed at individuals who were already working at a supervisory level in a manufacturing environment so as to provide them with enhanced knowledge that could ultimately lead them to a progression in their tasks and responsibilities. Mr Cachia thanked the Malta Chamber for helping MCAST stay well updated on the business industry’s ongoing developments and requirements. This was of extreme importance for the College as it provided it with a relationship with stakeholders, together with continuous industry feedback. The Malta Chamber President, Mr Cachia and Mr John Sciberras, Director of Institute of Electrical and Electronics Engineering presented the graduates with their Diploma certificates.

he Sir Agostino Portelli Hall was once again the venue for the Malta Chamber’s Annual Reception on 10th December. The 2013 event was attended by over 200 members and guests. Amongst the guests at the reception were President of Malta HE Dr George Abela, Ministers the Hon Louis Grech, the Hon Evarist Bartolo, the Hon Chris Cardona, the Hon Leo Brincat, Parliamentary Secretary the Hon Edward Zammit Lewis, the Leader of the Opposition, the Hon Simon Busuttil and PN Deputy Leaders, the Hon Beppe Fenech Adami and the Hon Mario de Marco. The diplomatic corps was well represented, as were leading banks and businesses. Bank of Valletta renews Gold Support Agreement with Malta Chamber

three year agreement was signed between Bank of Valletta and the Malta Chamber, renewing the Bank’s Gold Partnership with the Malta Chamber. The agreement was signed by CEO Charles Borg and Chief Officer Operations and Multi-Channel Banking Michael Galea on behalf of Bank of Valletta and Malta Chamber President and Deputy President, David G. Curmi and Anton Borg respectively. The latest agreement will formalise co-operation between the Malta Chamber and Bank of Valletta until 2016. This extends formal co-operation between the two organisations to beyond a decade since the signing of the first agreement. The two organisations will continue to work together on a number of initiatives, and will seek to focus on creating a platform that supports local SMEs. The services will be

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013

provided through a “BOV SME Advisory Office” within the Malta Chamber building. In a brief address, Mr Curmi said that the Malta Chamber was proud to be supported by one of the main players in the island’s economy. “Bank of Valletta has offered tangible support to the Malta Chamber for several years and this support has gone beyond monetary contribution. The local business community has been the major beneficiary of this long history of support and this latest agreement will concentrate on SMEs and their valuable contribution to society.” Speaking during the signing Mr Borg said “This agreement is another important milestone for the Bank, giving tangible evidence of its commitment to support and promote SMEs to achieve their full potential. Through this agreement, both parties will capitalise on their leading roles and expertise to assist SMEs. In addition we look forward to the possibility of collaborating on joint projects for the benefit of the business community.” Linking Enterprise visits at Regus and Vodafone Malta

Events highlights

by Area Director in Malta and Italy for Regus Group, Mauro Mordini, who gave a brief overview of the Group’s strategic vision and operations. Regus Malta General Manager Jankarl Farrugia delivered a detailed presentation relating to how internationalisation of businesses is fundamental to recovery and eventually growth. The Vodafone event was held at the recently launched Head Offices at Skyparks. Participants were welcomed by Malta Chamber Head of Policy Development Andre Fenech, and by Head of Human Resources at Vodafone Malta Martin Gregory. Committee Chairperson Catherine Calleja gave a brief overview of the Committee and explained that the Committee’s foremost objective was to further involve itself in members’ concerns and continuously create initiatives in the best interest of members. This was mainly achieved by raising awareness and disseminating information in areas related to education, human resources, social policy and employment, both at national and European levels. Ms Calleja went on to explain that the Committee was currently rolling out its calendar for the year 2014 which specifically included a Benchmarking Session on tackling the topic of flexible working arrangements. A detailed presentation on work/life balance measures was then delivered by Mr Gregory who spoke about Vodafone’s philosophy and how this allowed employees to benefit from working hours that enabled them to balance their working life with other priorities, including parental and other caring responsibilities, lifelong learning opportunities, charity work, leisure activities and other interests. Mr Gregory explained how this helped foster a culture where employees felt central to the company’s success story. Mr Gregory concluded his presentation by saying how flexible working hours provided employees with the ability to achieve a reasonable balance between their responsibilities and commitments inside and outside of the work environment. This is believed to positively affect their performance at work and ultimately the success of Vodafone. Dialogue Session with the Prime Minister

T A

s part of its Linking Enterprise programme, the Malta Chamber organised two separate events – at the Regus Malta Business centre focusing on best practices related to internationalisation and changes in the working environment in April 2013, at Vodafone Malta focusing on flexible work arrangements and work-life balance measures in February 2014. The Regus event was addressed by Malta Chamber Internationalisation Manager Klaus Pedersen, who gave an overview of the internationalisation support services available to Malta Chamber members. Participants were welcomed

he Prime Minister participated in a dialogue session with members of the Malta Chamber on 12th February 2014. The Hon. Dr Louis Grech, Deputy Prime Minister and Minister for EU Affairs and Implementation of the Electoral Manifest, the Hon. Prof. Edward Scicluna, Minister of Finance and the Hon. Dr Edward Zammit-Lewis, Parliamentary Secretary for Competitiveness and Economic Growth were also present. The event was attended by over 100 members. In his opening speech, Malta Chamber President David G. Curmi welcomed the Prime Minister and Ministers and said that the intention of the dialogue session was to give members the opportunity of a direct open and frank discussion. He said that the Malta Chamber’s views were apolitical and that its objectives were to achieve the right socio-economic balance to breed confidence and stability – the two key factors on which both politics and business thrived.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013

The President spoke about the Individual Investor Programme. He said that the Chamber had been the first organization to, on its own initiative, provide prompt feedback on the IIP by rendering the programme more workable and acceptable. The Chamber’s feedback was also aimed at ensuring that the final version of the IIP was compatible with Malta’s positioning as a financial centre and business domicile of international repute. It had chosen to take the proactive route in seeking to influence policy and was satisfied that its contribution was found to be valuable to Government. The Malta Chamber had also been the only organisation to have contributed towards seeking a solution on the European Union’s new Regional Aid Intensity guidelines and Malta’s loss of what was previously known as Objective 1 Status. This was a particularly serious matter especially with regard to Malta’s attractiveness to foreign direct investment in the manufacturing industry where Malta and Gozo were gradually losing their appeal. The President asked for Government’s support in arguing the case with the European Union in order to avoid a crisis in this sector. The President also referred to other factors which contributed to an erosion of competitiveness, these were: energy, labour and internal transport. In November 2013, the Chamber had submitted to Government a study based on the annual consumption levels of the 21 top energy consuming companies. The study emphasised the need for a reduction in energy costs for heavy consumers. The President insisted that heavy consumers should start benefiting from electricity rates reductions much earlier than March 2015 bringing them in line with the EU average and serving as an important message to FDI companies by showing commitment towards addressing rising operating costs. The President spoke about the formulation of the Malta Chamber’s Economic Vision for Malta. The document was close to completion and would shortly be presented to the Prime Minister and other stakeholders. The Malta Chamber had grouped together 20 CEOs from leading companies in Malta and the Rector of the University of Malta to articulate the Plan. The vision was for Malta to have “a focused yet 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” until 2020. The Economic Vision aimed at taking Malta a step higher in its economic development. This would require an enhancement in the country’s resources particularly in the skills of the workforce. This would lead to better jobs and justified higher wages. The Chamber wanted Malta to be in a position to sustain the trend in salary increases. The Malta Chamber insisted on the need for the COLA formula to be revised to ensure better alignment of wage and productivity development through a formula that incorporated a measure for productivity besides inflation. The President said that the Chamber would champion the cause of Malta’s competitiveness and would point out policies and measures that could be harmful to future economic growth and prosperity. The Chamber believed that wealth creation should

Events highlights

precede wealth distribution. The President spoke about reforms which would ensure the sustainability of a stable economic environment. The Chamber shared the EU Commission’s emphasis on pressing certain recommendations, these were: the justice system, waste management, labour market rigidities, internal transport (of both goods and people), COLA, pension and healthcare reform, water resources and bureaucracy. The Malta Chamber had been very proactive on the national debate on healthcare and had provided exhaustive feedback, organised a national conference on the subject and tried to broker political consensus on the matter. The President said that the Chamber was committed towards offering and affording a sustainable healthcare system. The President said that the Malta Chamber felt that the MCESD was losing its relevance and autonomy. Certain priority issues had not featured on the Council’s agenda, it lacked resources resulting in it meeting at the Ministry rather than somewhere neutral and being unable to employ experts to conduct research and formulate technical reports to complement the discussions. The Chamber did not see the benefit in widening the composition of the Council which it felt should be composed of ‘national employers’ or ‘workers’ organizations’. In conclusion the President quoted from the editor’s note in the recently published book “La Borsa – The People, The Building, The History” in which Judge Giovanni Bonello described the Malta Chamber as a “force impossible to ignore and difficult to challenge.” He said that the Chamber was eager to contribute and participate actively in discussions leading to the formulation of policies directed at rendering the country more competitive and prosperous. He assured the Prime Minister that the Chamber was always ready to provide Government with objective and meaningful opinions. The Malta Chamber had the interest of the country at heart and was willing to contribute to ensure that companies operated in the right environment for growth. The President thanked the Prime Minister for the high regard in which he held the Chamber. The Prime Minister agreed that similar meetings would be held on a six monthly basis.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

La Borsa

The People, The Building, The History

n April 2012, the Malta Chamber of Commerce, Enterprise and Industry embarked on an ambitious project. This was to publish a premium quality book on the Malta Chamber’s history, the Exchange Buildings, its works of art and its protagonists. It was felt that the magnificent building, the excellent collection of paintings and portraits as well as the history and recollections of Past Presidents and others who over the years have been close to the Chamber merited the publication of a prestigious book. The Malta Chamber approached Judge Giovanni Bonello to pilot this project and was honoured that he believed in the concept and accepted the task. An editorial team composed of Judge Giovanni Bonello, Mr Kevin J. Borg, Miss Johanna Calleja and Dr Theresa Vella was formed to work on the project. Work commenced immediately with the identification of contributors and the topics they would tackle. Research was carried out, the archives searched and photographs taken. After months of hard work, a very handsome book was published and launched on 18th December 2013.

The book is divided into five sections. Section one on the “History of the Malta Chamber” including contributions by Robert Micallef “A History of the Malta Chamber”; “The Chamber and Malta’s Bankers” by John A. Consiglio; “The Borsa, a Social Meeting Place with Cultural Aspirations” by Vicki Ann Cremona; “Challenging Times at the Chamber” by Alfred Zahra de Domenico and “Good Old Bad Days” by Michael Mallia; Section Two: “The Exchange Buildings” with the main article on “Modernity and Exchange” by David Felice accompanied by photographs by David Pisani. Two other articles in this section are by Theresa Vella and are entitled “Before the Borsa on Strada Reale” and “Sculptural Figures over the Borsa”. Section Three is dedicated to the Malta Chamber’s outstanding collection of Portraits (all of Past Presidents) with an analytical appreciation by the late Emmanuel Fiorentino and Krystal Farrugia and photographs by Peter Bartolo Parnis. Each painting is accompanied by information about the painting, the artist and also about the Past President. Section Four deals with the Malta Chamber’s art collection and includes an article entitled “Picturing Valletta: The Vedute at the Malta Chamber” by Theresa Vella and another on the modern art collection by Charlene Vella. The final section and possibly the most unique is a compilation of the memoires and personal experiences of Chamber Past Presidents and staff past and present by Petra Caruana-Dingli. The publication of La Borsa is a testament to Malta’s strong commercial foundations, to the Malta Chamber’s diverse and colourful history and to its place as the leading business organisation of the past, present and future – the soul of the business community.

The editorial team

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Positions

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

During 2013, the Malta Chamber closely followed a number of issues on which it formulated position papers. Pre-Budget Proposals

he Malta Chamber submitted its proposals for the 2014 budget to the Minister of Finance in September. The Malta Chamber called for cost competitiveness and fiscal discipline to be maintained and improved to stimulate growth and further job creation. The Malta Chamber made over 40 specific recommendations related to unfair competition and fiscal evasion, eco-contribution, sustainability of the pensions and healthcare systems, the high energy costs for enterprises and the promotion of renewable energy sources and energy conservation, high labour costs and wage indexation, efficient transport links, access to finance, reduction of administrative burdens and Government induced costs, promotion of research and innovation and education and skills. National Employment Policy

s part of its representation within the Jobs+ committee, the Malta Chamber submitted extensive feedback to the formulation of a renewed national employment policy. The main scope derives from the fact that the European Commission is requesting each Member State to submit policies/strategies in order to access resources from the next EU funding programme. The Malta Chamber’s document particularly focused on three main principles which in the Chamber’s opinion remain the most important issues to tackle in order to have a better functioning labour market, these are: 1) Structural labour market factors 2) Low labour market participation 3) The skills challenge It is believed that further labour market reforms are needed to reduce the rigidity of the same which in return is affecting our productivity and competitiveness levels as a country. Attention should be given to the way the reform comes into play not to affect the balance between the employer and the employees. Lessons should be learnt from other European models such as Germany and Scandinavian countries but finally there is no quick fix or one size fits all solution and Malta has to guarantee reforms that apply for its specific situation.

Feedback on the programming of European funds for Malta 2014 -2020

s a primary stakeholder in representation of the private sector, the Malta Chamber of Commerce, Enterprise and Industry has sought to take an active role in the consultation process on the Programming of European Funds for Malta for the 2014-2020 period. The Malta Chamber’s position in the use of EU Funds for the forthcoming programming period centred around the role of the private sector in contributing towards Malta’s socio economic balance whilst the country, in turn, supported the achievement of Europe’s 2020 targets. The Malta Chamber regarded as being essential to enhance our competitiveness the degree of allocation of funds in aid of private enterprise. The Malta Chamber further argued the need to simplify the application processes for SMEs and larger firms as well as introduce shorter reimbursement periods. It was argued that over the course of the previous programming period, the Chamber was obliged to make repeated representations on difficulties experienced in the implementation of EU Funded schemes. Justice Reform

Malta Chamber ad-hoc was formed by the Council to review the consultation process of the Justice System reform. The committee was formed by Anton Borg and Reginald Fava. Andre Fenech and Lino Mintoff from the Malta Chamber’s secretariat prepared two extensive documents in which it put forward the business community’s views for a more effective and transparent system. In principle the Malta Chamber welcomed the two consultation documents in which it established that the rule of law remains the main bedrock of our society and its democratic credentials. The reports argued that Malta’s justice system has over the years been expanded and reformed under various administrations. Nevertheless results have been few and far between. The general perception remained that the Law Courts are one of the most archaic and bureaucratic institutions on the Islands. The Malta Chamber also agreed with the concepts raised in the review namely that the members of the Judiciary will be chosen on the basis of their integrity, knowledge of legislation, diligence and practice within the law courts. The Malta Chamber argued that it was believed that the reform was a bold initiative, that if effectively implemented and given the right resources and budgets, it could bring about a major change within our justice system and that it was also of the belief that a major overhaul is required but one needed to first of all identify the main barriers for reform and resistance to change and tackle those problems first.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Positions

Healthcare Reform

he Malta Chamber’s endeavours on healthcare reform date back to 2012 when the Pharmacists Pharmacy Owners Business Section drew up a proposal for a Reimbursement Scheme which would replace the Pharmacy of Your Choice Scheme. The Business Section’s scheme was presented to the Prime Minister, Minister of Health and Leader of the Opposition of the time. As a responsible organisation, the Malta Chamber felt obliged to discuss its concerns and offer tangible solutions to the healthcare situation in the country. Healthcare reform had been delayed by political factors. Consequently, the country has an inadequate and unaffordable system which did not achieve its objectives. The unsustainability issue was due to financial constraints, wastage and the fact that it entitled people to trivial items/services which meant that it was not possible to cater for serious life-saving medication. As a result patients were often forced to resort to charity or other drastic measures to retain their chance of recovery. In August of this year the three Malta Chamber Business Sections involved in healthcare (Healthcare Business Section, Pharmacists Pharmacy Owners Business Section and Pharma Manufacturers Business Section) joined forces to promote reform. Meetings were held with the Prime Minister, the Minister of Health, the Shadow Minister for Health and also with HE Mgr Charles Scicluna, Auxiliary Bishop. The Malta Chamber’s suggested scheme aimed at improving procurement and by-passing public sector inefficiencies in ordering, stocking and distributing medicine, whilst at the same time ensuring that medicine remains free and that the rights and welfare of patients were safeguarded. The Chamber’s proposals were based on the principle of “prevention is better than cure” as also applied to the national resources dedicated to healthcare – in particular Primary and Secondary healthcare. If resources were freed to enable a widening of the medicine formulary and to afford the purchasing of important and advanced drugs, people would be healthier and their need to seek urgent attention at Mater Dei and Health Centres would be reduced. More efficacious medicines would result in shorter hospital stays or reduce the need for hospitalisation. Political consensus was required on fundamental issues, such as agreement on the need to eliminate waste as well as to remove free entitlement to trivial items/services, whilst upholding the interests of society as a whole. Saving our healthcare system required a holistic approach and political maturity. On 4th November the Ministry of Health published its White Paper entitled “Ensuring Your Right to Entitlement Medicines at the Time You Require Them”. The White Paper laid out four options, all of which were considered by the three Business Sections. Representatives of the three Business Sections studied and discussed the document in detail and were in principle in favour of Option 4 which was listed as “Local Suppliers of Medicine Distributing POYC Medicines to Community Pharmacies”. The system would mean that distributors delivered POYC medicines direct to

the community pharmacy and for the community pharmacist to pay the distributor. An e.Health smart card would be introduced for each patient. The card would include the patient’s medical records, medical entitlement and would also serve as the method of payment to the community pharmacist. The card would be topped up as required. Option 4 also provided for the introduction of e.Prescriptions. The Executive Committee was against the proposal regarding the recycling (or return) of unused medicines and also for refunds being paid to a patient for unused allowances. The Malta Chamber had recommended that the new system commenced on a gradual and trial basis and with a good educational campaign. In order to round off the consultation process the three Business Section came together to organise a National Debate on Healthcare Reform. With the participation of the Minister of Health, the Shadow Minister and the Bishop of Gozo the debate took place at the Malta Chamber on 17th January 2014 – the final day of the consultation process. The debate discussed the way forward for an efficient, fair and sustainable healthcare system. The event was addressed by the Chamber President, the Health Minister, the Shadow Minister, the Chairperson of Alternattiva Demokratika, the Bishop of Gozo, and a representative of three Chamber Sections related to healthcare. The discussion was proactive and constructive. The Malta Chamber’s recommendations were faithful to the solemn promise made ahead of the last election for medicines and healthcare services to continue to be free. The Chamber was encouraged by the feedback received on its proposals. It was also encouraged by the manner in which the political parties approached the situation. The Chamber shall continue to work towards facilitating a process of political consensus to pave the way for the country to be in a position to offer an affordable healthcare system. Early School Leaving strategy

he Malta Chamber of Commerce, Enterprise and Industry put forth its formal reactions on an ‘Early School Leaving Strategy’ through the drawing up of a position paper, following a consultation meeting addressed by the Ministry’s Permanent Secretary, held within the Malta Council for Economic and Social Development on 6th May. In essence, this report identifies and analyses the main economic and social challenges posed by the problem of early school leaving, whilst presenting the Malta Chamber’s general approval to the Strategy. In all, the report proposes thirty two strategic actions

Policy Positions

The malta chamber of commerce, enterprise and industry

for the regulation, monitoring and provision of information on the success rate of the measures that the Strategy presents. Above all, the Malta Chamber reiterated its recommendation for extending school hours, in view of the favourable impact upon the combination of academic and non-academic activities which ultimately enhances students’ scholastic experience; hence, preventing drop-outs. Other recommendations stand in favour of providing students with adequate employability skills for the assurance of an active and competitive labour market. In view of this, a major skill that the Malta Chamber proposed is that of introducing entrepreneurial skills in schools’ curriculums. Malta Chamber’s Reactions to Family Business Act

ollowing Government’s proposal to establish the Family Business Act, the Malta Chamber of Commerce, Enterprise and Industry put forth its formal reactions through the drawing up of a position paper, following a consultation exercise addressed by the Ministry for the Economy, Investment and Small Businesses in July 2013. This was carried out in the light of establishing improved regulation of local family businesses. In essence, the Malta Chamber put forth its support towards the two foremost missions behind the proposed law, these being: • “to encourage financial responsibility on the side of business’ • “reducing administrative bureaucracy on the side of Government.” The Malta Chamber, through its SME and Family Business Committee, established its principal aim to facilitate family businesses’ operations with focus upon the founding and permanence of good governance and smooth succession planning. With this, the Malta Chamber proposed for the development of appropriate tools that provide the planning of family business transfers with the required assistance. Above all, it is crucial that a strong academic knowledge base on family businesses’ dynamics is established prior to the legislation’s establishment. In all, the Malta Chamber stated that the family business sector in Malta is the engine behind the country’s economy; thus, its support towards enacting a Family Business Act that lays down a statement of principles that distinguishes the local family business sector. Proper groundwork must be laid down for family businesses’ long term existence to be ensured, and more importantly, safe guarded. Proposed revision in electricity rates for energy-intensive manufacturing activity

position paper recommending lower rates for manufacturing companies was presented to the Deputy Prime Minister in November by the Malta Chamber President. The Malta Chamber expressed its concern of rising operational costs and called Malta to bring its operating costs in line with other European countries and regions.

Annual Administrative Report 2013-2014

The paper presented aggregated data of the annual consumption of the highest energy consuming manufacturing companies in Malta, and estimated an average cost of effective rate of €0.148 per unit. The Malta Chamber recommended that electricity rates should be lowered in such a way that the resulting average effective rate is reduced to bring it in line with the EU average. The exercise also estimated the impact of a reduced rate in terms of savings for industry, and allowed the costing of some potential alternatives for Government. The Malta Chamber highlighted the urgency for the required reforms need to be implemented without further delay. The need for investment incentives: Mitigating for pressures on the competitiveness of Malta’s manufacturing sector

position paper addressing the impact of new Regional Aid Intensities, and the impact on Malta’s investment incentives framework was submitted in November 2013 to Minister Grech, Minister Cardona and Dr Mario Vella, Chairman Malta Enterprise. The position paper outlined objections to the EU’s application of Regional Aid policy which was resulting in unfair and inconsistent classification and treatment towards Malta, as it ignored the permanent handicaps of a small, peripheral island-state. The Malta Chamber argued that Malta suffers the implications of a gap in the Regional Aid Guidelines which do not recognise this distinct position. Based on investment data collated from major manufacturing companies, the paper also presented the practical impact of the reduced investment incentives, concluding that the cost of investment would effectively double for similar projects carried out in the 2007–2013. The risk to the wider economy was highlighted, as a continued shrinkage of Malta’s manufacturing base, if unaddressed is expected to lead to rising structural unemployment and long lasting socio-economic repercussions. The Malta Chamber insisted on the urgent need to address the resulting vacuum in Malta’s investment support framework, which is putting at huge risk Malta’s capacity to achieve a balanced pace of growth and employment in all sectors of the economy. Malta Chamber position on an Industrial Policy for Malta

he Malta Chamber continued to contribute to the Industrial policy debate in 2013. During the year BUSINESSEUROPE

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Positions

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

started to put forward its proposals for an industrial compact and a pro-Industry support framework. This was recognised by the European Commission which took up the discussions on an Industrial compact. In April 2013 a position paper highlighting the fundamental priorities for a competitive Manufacturing sector was submitted by the Malta Chamber to BUSINESSEUROPE as feedback for the draft paper entitled “BUSINESSEUROPE industrial policy and growth strategy”. In its position paper BUSINESSEUROPE calls for this Compact to provide an overarching framework to facilitate the targeted increase in the Industrial share of Europe’s GDP from its current 15.3 per cent to 20 per cent by 2020. The Malta Chamber noted with satisfaction that BUSINESSEUROPE’s policy recommendations were in conformity with the proposed priorities for Industry in Malta. In December 2013, the BUSINESSEUROPE recommendations were formally submitted and presented to the Presidents of the European Union’s three institutions in

January 2014. On the occasion the Malta Chamber Deputy President Anton Borg made his intervention, appealing for a fairer and more equitable state of affairs between all European operators and citizens, and a shift away from one-size-fits-all approach which renders it impossible for small peripheral states to achieve the required targets. The Malta Chamber has now kick started the process of updating its position paper for Malta’s Industrial policy, as an important pillar of the Malta Chamber Economic Vision for 2014-2020. The Malta Chamber position will address the growing urgency for an effective national Industrial Policy, in an increasingly competitive environment as countries emerge from the economic crisis, and in recognition of the fact that Malta’s realities still goes unrecognised at a European level. An effective strategy will need to implement compensating measures which neutralize the natural disadvantages that industrial operators in Malta are obliged to face in terms of added costs and logistical hurdles.

Relations with Diplomatic Corps Date Country 2013 01 11 Saudi Arabia 2013 01 30 Israel 2013 02 05 Indonesia 2013 02 12 Peru 2013 03 06 Russia 2013 03 01 Karlsruhe, Germany 2013 05 02 Genova 2013 05 08 China 2013 05 09 Kuwait 2013 05 13 Australia 2013 06 11 Santa Cruz, Bolivia 2013 07 24 South Africa 2013 07 24 Madagascar 2013 07 29 Vietnam 2013 07 31 Nepal 2013 08 01 Krakow 2013 08 01 Poland 2013 09 09 Arequipa, Peru 2013 10 16 Graz, Austria 2013 11 29 Austria 2013 12 16 The Netherlands 2014 01 08 Denmark 2014 01 16 Embassy of Yemen in Tripoli 2014 01 16 Embassy of Sudan in Tripoli 2014 01 17 Canadian Embassy in Rome 2014 01 21 Romania 2014 01 27 Qatar 2014 01 29 Japan

Ambassador/Honarary Consul H.E. Dr Stephen D Borg Prospective Honorary Consul Dr Daniel Blankleder Ambassador of the Republic of Indonesia, H.E. Mr August Parengkuan Protocol and Consular Affairs, Mr Yugama Muchtar, First Secretary Counsellor, Socio and Cultural Affairs, Mrs. Nindarsari Utomo Prospective Honorary Consul Chev. Eduardo Montenegro y Soria Prospective Honorary Consul Mr Dmitry Samokhin Prospective Honorary Consul Dr Dieter Pawlik Honorary Consul for Genova, Mr Augusto Cosulich H.E. Mr H.E. Cai Jinbao H.E. Mr Faisal S. Al-Musaileem High Commissioner, H.E. Ms Jane Elspeth Lambert Prospective Honorary Consul, Mr Mario Paredes Prospective Honorary Consul, Mr Bernard Cassar Prospective Honorary Consul, Mrs Danie Akesson Honorary Consul, Mr Huynh Trung Nam Honorary Consul of Malta for Nepal, Dinesh Shrestha Honorary Consul, Ms Kaminska Former Prime Minister of Poland, Mr Pawlak Prospective Honorary Consul, Mr Mauricio Chirinos Chirinos Prospective Honorary Consul, Mr Alois Sundl H.E. Dr Petra Schneebauer H.E. Mrs. Rita Dulci Rahman Prospective Charge d’affaires, Ms Elaine Cutajar Charge d’affaires, Mr Ahmed Al Jahrani Charge d’affaires, Mr Osama Mohammed Yasain Senior Trade Commissioner, Mr Emmanuel Kamarianakis Honorary Consul, Mr Jonathan S. Diamantino Third Secretary, Mr Ibrahim Alnisf Non-resident Ambassador, Mr Andre Spiteri

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

In 2013, the Importers, Distributors and Retailers Economic Group Executive Board sought to establish an accurate insight of the issues that were deemed to be the most important and upon which action needed to be taken. It emerged that market surveillance, unfair competition, Government-induced bureaucracy and EU funding, were the most salient issues that needed immediate action or attention. The Executive Board participated in a consultation session on ‘New Product Safety and Market Surveillance Regulations’ which was organised by MEUSAC. Although the Board agreed with the principles and aims of the regulations, it had reservations and concerns on the way it is going to be implemented. The Board expressed its concern against any added costs for the implementation the said regulations, which would be burdensome for Importers, Distributors and Retailers. The Board is following up on the development of the regulations through necessary discussions with the authorities. During the annual trade fair, the Executive Board was concerned about reported illicit trading by non-Maltese traders at the venue. The matter was brought to the attention of the VAT department to ensure that all vendors were in conformity with legal requirements. The Board made its view clear, about ensuring a level playing field for all economic operators. In anticipation of the new EU programming period 2014-2020, the Executive Board committed to increase communication with the members as well as organise an information session on EU funding opportunities. The Board carried out a request for information among its members to identify any priority areas of need in their business that could be covered by possible EU-funded projects. The information enabled the Board have a full picture which truly reflects the wishes and needs of its members. As the allocation of EU funds through the Operational Programmes for the new programming period was nearing finalisation, the Executive Board held a meeting with the Malta Business Bureau (MBB) regarding EU funds available for importers, distributors and retailers, including information on best practices. During the meeting, the MBB went through its major recommendations which it made to Government in a report entitled ‘The Allocation of EU Funds in Aid of Private Enterprise: 2014-2020’. The information session for all the members of the Economic Group, highlighting the available funds for start-ups, and for firms wanting to invest and/or innovate their business is due to be held in 2014. Later in the year, an analysis of the demography of the Economic Group was carried out to ensure that the members are getting the best value and benefit for their membership. In this, the exercise was also useful to determine efforts required to reach out to areas of business that would best be represented by this Economic Group. Online shopping has been increasingly growing as a phenomenon, but it is also being considered as a concern and the competition of the importation, distribution and retail industry. To this effect, the Executive Board embarked on the initiative to organise an information session for its members on the use of ICT for online shopping as well as on the use of social media as a marketing tool to help address the gap. Finally, the Executive Board is also keeping track on the developments taking place with regards to the Budget 2014 proposal on the extension of shop opening hours and days.

Importers, Distributors & Retailers Economic Group Executive Board The Importers, Distributors & Retailers Economic Group Executive Board met throughout the year to discuss issues relating to the Business Sections that fall under it namely: Healthcare; Importers; Pharmacists & Pharmacy Owners; Wines, Spirits, Beverages & Tobacco.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Importers, Distributors and Retailers Economic Group Business Sections

HealthCare Business Section The HealthCare Business Section Executive Committee was elected during a General Meeting held on 18th April 2013. At its first meeting, the Executive Committee decided that regular meetings with all members of the Business Section should be held in order to keep members updated on the work of the Executive Committee. Meetings have been held on 16th October and 6th December 2013. The Executive Committee continues to hold regular meetings with the Central Procurement and Supplies Unit. Besides dealing with the now customary problems of payments and communications, these have resulted in a number of changes. Following the successful introduction of the single performance bond for departmental tenders, this will now be extended to cover all tenders and be administered by CPSU. Pricing history is now available to all during CPSU working hours through a computer in their reception area. CPSU is also publishing a forecast of consumption for all items and a new ordering system has been introduced which will enable suppliers to better forecast their orders. Various problems encountered by members which are communicated to the Executive Committee have also been appropriately escalated where possible and advice has been given accordingly. The Chairman had spoken at a seminar organised by the Malta Chamber together with the Malta Business Bureau entitled “Facilitating Public Procurement – An SME Perspective”. The Chairman’s presentation had provided a step-bystep analysis of the e-procurement system from the users’ perspective. Problems encountered by users were highlighted and suggested enhancements to the e-tendering system were proposed.

A meeting was also held with the Medicines Authority. A number of issues were discussed and proposals put forward. It is expected that there will be a follow-up meeting imminently after which more should be known about the direction being proposed by the Authority. The Executive Committee has held meetings with the Air Malta Cargo Services Manager regarding retaining of the cold chain for pharmaceutical products. A copy of the Medicine Authority’s Good Delivery Practice together with the standards required by pharmaceutical companies had been sent to Air Malta and to Globe Ground Ltd. There has so far been one meeting called of the Working Committee on the Pricing of Medicinal Products (WCPMP). During this meeting, it was made very clear that the system being used did not make any sense and had no relevance to the real market situation in Malta. It was suggested that until the results of the white paper on Pharmacy of your Choice (POYC) reform are known, it is of no use to continue with these meetings. The members of the committee have also been involved in a series on meetings and consultations held with regard to the white paper published by the Ministry of Health on 4th November 2013 entitled “Ensuring Your Right to Entitlement Medicines at the Time You Require Them”. These meetings have been carried out under the umbrella of the Malta Chamber in coordination with the Pharmacists Pharmacy Owners Business Section and the Pharma Manufacturers Business Section. More details can be found on page 42. Finally a meeting had also been held with the Chief Executive Officer at Mater Dei Hospital regarding delayed payments and with the Medicine Authority to discuss the transposition of a clause from the directive into Maltese law as well as the inclusion of expiry dates and batch numbers on distributor invoices.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Importers Business Section The Importers Business Section Executive Committee held a number of meetings throughout the year to discuss mainly illicit trading, market surveillance and online shopping. Early in the year, the Committee expressed its satisfaction that the new Government administration was taking forward the merger between the Inland Revenue Department, the VAT Department and the Customs Department. However, the Committee is of the view that there still were a number of challenges that importers were facing with the VAT Department. The lack of effective structures for the enforcement of market surveillance has allowed discrepancies between operators to ensue, leading to widespread abuse in free movement of goods. The Executive Committee also discussed the issue of online shopping and its possible application as an opportunity for business. The Executive Committee is collaborating with the Importers, Distributors and Retailers Executive Board to organise information sessions for all members on the use of ICT for online shopping and the use of social media as a marketing tool.

Pharmacists Pharmacy Owners Business Section

Wines, Spirits, Beverages & Tobacco Business Section

During 2013, the Pharmacists Pharmacy Owners held five Executive Committee Meetings, two general meetings, and met with representatives of the two main political parties in the run-up to the general election. It has since also met with the Chief Executive of the Pharmacy of your Choice (POYC) scheme; Minister for Social Dialogue, Consumer Affairs and Civil Liberties Dr Helena Dalli; and with the Minister of Health Dr Godfrey Farrugia.

The Wines, Spirits, Beverages & Tobacco Business Section’s main focus for 2013 was on excise duties. Indeed, ahead of the National Budget presentation in Parliament, the Executive Committee made representations to the Minister of Finance to express its concern at the potential increase in excise duty. The Committee requested that the excise duty rates remained unchanged. It urged the Government to consider the fact that bona fide local operators were not in a position to sustain any increases that could strain irreversibly the competitive position of the operators.

In the last few months, the Pharmacists Pharmacy Owners Business Section joined forces with the HealthCare Business Section and the Pharma Manufacturers Business Section in order to consider the proposed Healthcare Reform. Together, the three business sections have met with the Prime Minister, the Minister of Health, the Shadow Minister of Health and the Archbishop’s Curia in order for the Malta Chamber’s to offer its assistance and expertise to propose improvements to the present healthcare system and in particular the distribution of free medicine and pharmaceuticals. This, for the benefit of the patients, the country and also the respective business sectors. The basis of the discussion was the Section’s paper entitled “A Proposal by the Pharmacists Pharmacy Owners Business Section of the Malta Chamber of Commerce, Enterprise and Industry for the Re-Organisation of the Pharmacy of Your Choice Scheme Incorporating the Reimbursement System”. This campaign by the three sections has culminated in the organisation of a National Debate on Healthcare Reform held at the Malta Chamber on 17th January 2014. A report on the Malta Chamber’s contribution to the Healthcare Reform appears on page 42.

The Executive Committee reacted to the announced increases in excise duty during the Budget Speech for 2014. The Committee reiterated its disappointment at the lack of consultation with the relevant stakeholders and operators, prior to the increase. Furthermore, it stressed on the need to gradually close in on the difference in Malta’s Excise Tax to bring it more in line with neighbouring markets, rather than retaining the status quo, in order to make overseas purchases less attractive. The Committee explained how the combined effect of illicit trading and the increase in excise duty both on beverages and tobacco would endanger local employment and investment opportunities in this sector due to an unlevelled playfield. Another concern which the Committee tabled was with regards to the repackaging of banderoles for tobacco products, wherein apart from the cost implications, various operators would have ordered up to three years of stock. To this end, the Business Section sought clarification of deadlines and that operators would be duly notified in advance of their obligations to pre-empt having tobacco products on the market that would not be in line with the forthcoming legal notice, by the stipulated deadline. Finally, the Wines, Spirits, Beverages and Tobacco Executive Committee requested a meeting with Minister of Finance Edward Scicluna and is awaiting to be granted an appointment to further discuss these matters.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Manufacturers and Other Industries Economic Group The Manufacturers and Other Industries Economic Group (MEG) Executive Board continued to meet regularly in 2013, focusing on the top priority factors which are considered to be impinging on manufacturing competitiveness. Developments in Regional Aid Regulations and the implications on investment incentives was the top priority for the MEG, together with other cost factors including electricity rates, transportation and labour costs.

Elections

n March 2013 elections of the MEG Board, and the executive committees of the respective MEG Business Sections were held.

Investment incentives and Regional Aid Regulations

n March 2013 the MEG met with Malta Enterprise officials to discuss the country’s position with the EU Commission, with regard to recognising Malta’s permanent disadvantages and reflecting this in the EU funding framework criteria. The meeting recognised that it was important to ensure that EU funding schemes, as well as an eventual Industrial Policy were practical, relevant to manufacturers and easy to understand. Following a meeting of the Malta Chamber with Minister Louis Grech on the programming for EU funding 2014-2020, the MEG felt it was important to put forward concrete project proposals to Government that effectively mitigate the reduction in allowable state aid intensities which reduce investment tax credit incentives. The MEG also proposed solutions for the best utilisation of the EU funds allocated for the benefit of the manufacturing sector. To this end, a brainstorming session was held with a number of CEOs, with the aim of generating ideas for project proposals and incentive schemes for the manufacturing industry. A position paper was finalised in November 2013 and submitted to Minister Grech, Minister Chris Cardona and Malta Enterprise Chairman Dr Mario Vella. The position paper objected to Malta’s classification and treatment by which the EU does not give due consideration of the economic restraints that make this island strikingly different from other member states; and more urgently, communicated the need to address the competitiveness of large manufacturing firms resulting from a vacuum in Malta’s investment support framework. The MEG Board also liaised with members to encourage them to benefit from the 2007-2013 investment aid guidelines-regime for projects realised after 2013 provided that the project proposals were submitted to and approved by Malta Enterprise not later than June 2014. Further developments are expected as the MEG continues to emphasise the need for an adequate incentive framework for investment through meetings and other communications with relevant authorities. Electricity rates

n May, the MEG Board formed part of a Malta Chamber delegation which met Minister for Energy and the Conservation of Water Dr Konrad Mizzi. The Malta Chamber presented an in-depth report on the effect of utility tariffs on industry and the impact on national competitiveness. The report compared data of utility rates in Malta and the rest of the European Union and highlighted the increase of the effective rates for Industry in Malta during recent years, while reiterating its proposals to alleviate the situation. In view of ongoing discussions with Government, an exercise was also conducted to determine the total annual consumption and electricity costs for high energy consuming companies in Malta, allowing the costing of some potential alternatives for Government. A position paper recommending lower rates for manufacturing companies was concluded and presented to the Deputy Prime Minister in November 2013 by the Malta Chamber President.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Transportation

he MEG was consulted by Transport Malta on Roll on-Roll off Services to establish the basis for a renewed Public Service agreement by Government. The MEG expressed its view that not only is there risk of market failure and necessity of a renewed Public Service agreement, but also the need for improvement on the flexibility of services provision and the high costs which place Malta at a significant competitive disadvantage. The MEG stated that in spite of reforms in our ports, Industry is penalised with high import and export shipping costs discouraging business activity. Labour costs

he MEG Board also prioritised the issue of the unrealistic labour costs increases since 2007, in a period when employee compensation levels were kept in check by other European countries. In communication with authorities, the MEG Board traced this situation to the COLA which as yet fails to incorporate a measure of productivity, and numerous add-ons stemming from collective agreements which are out of synch with the economic realities faced by enterprises today. The Board also commissioned a country review of labour productivity, to benchmark Malta against other European countries and identify mitigation measures. Economic and Industrial Policy developments

n April 2013, a position paper highlighting the fundamental priorities for a competitive Manufacturing sector was submitted by the MEG to BUSINESSEUROPE as feedback for the draft paper entitled “BUSINESSEUROPE industrial policy and growth strategy”. The MEG also provided BUSINESSEUROPE a report on the impact of new Regional Aid regulations on Manufacturing in Malta. In October 2013, the Board met with Central bank officials to discuss indications in Industrial Production Index indications, which signalled a challenging period for manufacturing in Malta. The meeting noted that this was also confirmed by the Malta Chamber Confidence Surveys. The MEG Board confirmed that due to the rising cost factors, manufacturing in Malta was struggling to compete for production with other European countries. In December 2013, the MEG discussed the draft Industrial Compact Policy Paper by BUSINESSEUROPE to which the Malta Chamber was actively contributing. The MEG noted with satisfaction that the draft policy recommendations were in conformity with the priorities for Malta expressed by the MEG and that a Malta Chamber delegation was invited to Brussels for the formal submission of this document to the Presidents of the European Union’s three institutions. Subsequently the MEG started the process of updating its policy position paper to reflect the latest developments, and to increase pressure on authorities to devise a national strategy for manufacturing. EU funds allocation 2014-2020

he MEG Board prioritised lobbying with authorities for adequate funds to be allocated to projects which would be effective in improving the sector’s competitiveness. In November 2013, the MEG submitted a paper to the EU projects working group set up between the Malta Chamber and Government representatives, shortlisting 10 initiatives considered priorities for Manufacturing and which were linked to EU funding priorities.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

MEG Discussion Seminar on Competitiveness

discussion seminar chaired by the MEG Chairman was held in March 2013 for members of the Manufacturing and other Industries Economic Group, during which presentations were delivered by Prof Joseph Falzon, and Dr Frank H. Bezzina, Dean and Deputy Dean of the Faculty of Economics, Management and Accountancy. Prof Falzon delivered a detailed presentation which outlined the Manufacturing sector’s economic contribution to the economy, and compared its performance and competitiveness with that of other countries, pointing out that contrary to mistaken perception, manufacturing remains an important and top contributor to the economy. Dr Bezzina presented a research study of the manufacturing sector conducted with the collaboration and participation of MEG members, which sought to identify the factors reinforcing competitive advantage, the effectiveness of existing incentives and future challenges for the sector. Rent policy developments

he Manufacturers and Other Industries Economic Group set up a task group with Malta Industrial Parks Ltd (MIP) to review certain aspects of the rent policy agreement which were not covered by the Memorandum of Understanding signed in 2012. The members of this task group are Matthias Fauser, Charles Brincat, Kevin J. Borg and Lino Mintoff. In August 2013 the Task Group discussed the issue of rent on extensions for already existing companies. It was agreed that this matter merited a detailed analysis of the present procedure used in such instances. MIP confirmed that it would ensure that there was no unreasonable and unjustified burden on existing companies who were in the process of expansion. Further discussions are expected to take place.

Manufacturers and Other Industries Economic Group Business Sections

Electrical & Electronics Manufacturers Business Section The Electrical & Electronics Manufacturers Business Section met regularly, focusing mainly on exploring purchasing collaboration possibilities and updating members on the Waste Electrical and Electronic Equipment Directive (WEEE) directive. A successful training and certification seminar was also coordinated.

IPC training The Executive Committee undertook to coordinate a short training course delivered by a foreign trainer in the industry standard module IPC-A-610, Acceptability of Electronics Assemblies Training and Certification Program. The training & certification sessions were successfully held over three days at

the Chamber, with 12 participants from 10 different companies. Through this training, the participants became qualified to train and certify their company employees as IPC application specialists, thereby raising the standard of skills available in their companies.

WEEE directive The Executive Committee revisited the WEEE directive, in view of the recast directive to be transposed in national laws by February 2014. A seminar followed by a Q&A session was held in October at the Malta Chamber with a focus on the arising obligations for manufacturing companies, chaired by Simon Alden. MEPA officials Kevin Mercieca and Yvette Smith Rossignaud addressed the attending members. Following the seminar, a short guide to interpreting the WEEE was distributed to all manufacturing members, in order to facilitate understanding of the scope and obligations of the WEEE directive.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Horizontal Purchasing Consolidation (HPC) The Executive Committee started exploring the possibilities of joint purchasing collaboration between companies in the sector. To this end the committee has ongoing discussions with both University and Malta Enterprise about the possibility of further study to develop a working model for the local context. A presentation of a research study undertaken in the field was given to the committee in April by Jurgen Spiteri. Mr Spiteri’s presentation addressed the main related issues such as advantages and disadvantages of HPC, the critical success factors, the interest expressed by the companies in different forms of HPC, purchasing procedures and common suppliers, and possible models of implementing HPC. The committee met with the Faculty of Economics, Management and Accountancy (FEMA) Dean, Prof Joseph Falzon; FEMA Deputy Dean and Lecturer – Operations Research, Dr Frank Bezzina; and FEMA Lecturer – Operations Management and Supply Chain Integration, Dr Martin Zammit to discuss the possibility of a collaborative research project with the FEMA and the possibility of introducing the subject as an option for Masters research. A meeting was also held with Malta Enterprise to discuss the available support and funds for cluster activities. In addition the committee intends to investigate consolidation of courier services as a ‘pilot’ exercise. To this end, in order to evaluate the feasibility of this initiative, the committee is surveying interested members for the yearly usage (volumes) of courier services and the service providers employed.

Food & Beverages Processors Business Section The Executive Committee of the Food and Beverages Processors Business Section liaised with authorities on the upcoming new Food Information Regulation, and participated in another yearly seminar of the Food Advisory Platform coordinated with the University of Malta. The committee also put forward its position to authorities on excessive fees charged for export health certificates, and monitored the policy debate on plans for a national Water Management Plan and a Health/Food Policy in consideration of possible impacts on the food and beverages industry.

Food Information Regulation The Executive Committee kept ongoing discussions with the Environmental Health Directorate to keep abreast with developments on the new Food Information (Labelling) Regulation (EU) No 1169/2011 which will start coming into effect as from 13th December 2014. A meeting was held with the Director of Environmental Health where a number of general questions related to the regulation were raised by the Executive Committee, aimed at ensuring clarity in the interpretation of the new rules. Complete information to members was subsequently circulated to members, including online resources and a Q&A document based on feedback provided by authorities. The committee is still following and participating in consultation, as transposition to national law is expected early in 2014.

Food Advisory platform – Seminar A workshop was held in October 2013, through the collaborative platform set up in 2012 between the Department of Food Studies and Environmental Health at the University of Malta and the Malta Chamber Food and Beverage Processors Business Section. The seminar addressed relevant issues to Food and Beverage companies and was also attended by faculty staff and numerous students from the Department of Food studies. This ongoing collaboration facilitates the organisation of events which are of direct relevance to the industry, whilst fostering mutual awareness of activities and issues in industry and academia. Head of Department, Dr Anna McElhatton kicked off the seminar, giving an overview of the facilities and activities of the Department, including the new BSc of Science (Honours) in Applied Food and Nutritional Science. Dr McElhatton explained that this will involve visits by students to Industry in their second year and placements in their third year. Dr Vasilis Valdramidis presented a number of interesting research projects currently ongoing, many of which with potential direct impact on food industry processes, including techniques of bacterial reduction and shelf-life extension. This was followed by an interactive workshop guided by lecturer Petra Jones where participants were asked to draw and present mock HACCP and traceability plans. This also provided a valuable opportunity for interaction between students and industry professionals. The second half of the seminar consisted of a brief intervention by Wilfred Kenely, who explained the role of the Knowledge Transfer Office at University and the UoM Research, Innovation and Development Trust. This was followed by an overview of funding mechanisms which Industry can access to develop research and apply innovative products and processes, including the R&I fund by MCST, Malta Enterprise schemes and the Horizon 2020 programme.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Export documentation fees The Executive Committee considered how a number of required documentation and charges can be minimised and administratively simplified. The committee specifically addressed the service fee charged for the â&#x20AC;&#x2DC;Combined Health/Radiation Free Certificateâ&#x20AC;&#x2122; issued by the Health Inspectorate Directorate which is often required for outward shipments to non-EU countries because of legal prerequisite in the importing third countries. After seeking and considering feedback from members, the committee communicated to the relevant authorities. The committee argued that the charged fee is not in proportion to the effective cost of issuing such a certificate and that it is intensifying the cost burdens faced by Maltese exporting companies, especially in view of already high port charges. Discussions are expected to go forward in 2014.

Pharmaceutical Manufacturers Business Section A number of issues were discussed by the Executive Committee of the Pharmaceutical Manufacturers Business Section, including the implementation of the Health Care reform, the national patents registration system, the Pharmacovigilance Directive, the impact of pricing strategies throughout Europe, and the upcoming Delegated Act on the unique identifier, scheduled for publication in 2014.

Health Care reform The committee reviewed and gave its feedback on the white paper for National Health Care reform published in November 2013, and actively contributed to the Malta Chamberâ&#x20AC;&#x2122;s involvement in the public debate with all the different stakeholders during the consultation period, in unison with the Healthcare business section, the Pharmacists Pharmacy Owners Business Section.

Malta Patents Act The committee continued to follow developments on the long forthcoming draft national legislation noting the main difficulty in enacting the law was the lack of technical competence in the patent registration process and the law courts, which would be required to handle cases following the enactment of this legislation.

Professional Indemnity Insurance The committee discussed L.N. 389 of 2013, transposing the EU CrossBorder Healthcare Regulations, which was enacted in October 2013, which amongst other provisions, requires any legal or natural person rendering a healthcare service to have a professional liability insurance. This was a new situation for Malta and

the committee undertook to follow up through any necessary discussions with other involved stakeholders, including insurance companies.

Pharmacovigilance directive In August the committee submitted its written feedback to the Medicines Authority on the national regulations which implemented Directive 2012/26/ EU. The new directive amended the community code relating to medicinal products for human use, addressing gaps and introducing harmonised EU wide triggered arbitration procedures to enhance patient safety in the decision-making process. The directive provided clear roles, responsibilities and obligations for industry and regulators.

Student placements The committee started considering how to help consolidate and strengthen the student placements initiative carried out by the Department of Chemistry at the University of Malta. It was felt that the current system of ad hoc placements should be improved through a formal cooperative initiative under the umbrella of the Memorandum of Understanding signed between the University and the Malta Chamber Foundation, as this would facilitate the promotion, planning and management of the placements by the Department and improve collaboration with industry. The committee is in the process of reviewing the related documentation, including proposed general agreements between host companies and the University.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Plastics and Rubber Manufacturers Business Section During 2013, the Plastics and Rubber Manufacturers Business Section continued to work on a number of initiatives including its efforts to enhance the availability of trained plastics process technicians, exploring opportunities to consolidate clustering activity, and kicking off a sector profiling exercise. The committee also started planning the organisation of knowledgesharing sessions between the section members on topics such as energy saving and automation technology.

Increasing the cohort of plastics process technicians The Plastics and Rubber Business Section continued to coordinate with MCAST for promotion of the Polymer Technician Diploma, a 3-year apprenticeship diploma set up in collaboration between the two parties. The course kicked off in 2012/2013 with the intake of nine students who are now in their second year. The students have already started undergoing apprenticeship experience with companies accompanied by theoretical training at MCAST. A meeting in June was held with Aurelio Micallef Grimaud and Ray Vassallo (Mechanical Engineering Institute) to discuss the re-launch diploma for 2013/2014. Member companies also participated in the information session on courses by the Mechanical Engineering Institute as part of the MCAST EXPO programme. Companies contributed through presentations and participation in a Q&A session, promoting the industry and its employment opportunities with students and their parents. Company visits were offered also for interested students.

In 2013/2014, there are for the first time two classes for the full-time course in Manufacturing, as the total number of students increased from 39 to 45. However, due to the low take up of the Polymer Process Technicians Course, the Executive Committee started discussing the possibility of revisiting the scope and structure of the diploma, as well as introducing further initiatives. The Executive Committee started evaluating the possibility of providing evening certification courses intended for ‘upskilling’ of operators already employed with current companies, thus facilitating a transition to technician level. The interest of companies in such initiatives is already being gauged, with encouraging feedback received indicating a potential significant number of participants.

Sector profiling A questionnaire was circulated with Malta’s plastic processing companies in an effort to profile the activity in the sector. The committee recognized the importance of quantifying the activity related to plastic injection moulding, including direct employment involved in this activity, and the contribution to the economy’s value generation. Further information including the number and type of machines currently used in the industry is also important in consideration of energy efficiency improvement initiatives. Replies to the questionnaire will continue to be received in 2014. The committee also considered the possibility of enhancing the online information on the Plastics and Rubber Business section, including contact information and the possibility of listing companies by their specific processing activity. The sector profiling exercise is expected to provide the basis for such this initiative.

Enhancing sector clustering activity In June, the Executive Committee met with Malta Enterprise to discuss a project bid by Malta Enterprise aiming at enhancing cluster management expertise. Member companies supported Malta Enterprise in its bid for this project by submitting a letter of interest in forming a cluster group, with the scope of receiving future assistance in achieving an EU-approved cluster management quality label. Proposed cluster activities include – exploring solutions for increased efficiency in energy consumption; promoting the industry as a viable employment opportunity with prospective students; exploring possibilities for a joint purchasing framework; a knowledge sharing forum on technology; developing a cluster brand for internationalisation/attracting FDIs; work with research institutions. The project was approved for funding in December and additional discussions are now expected to be held to outline the scope of the project and the opportunities for member companies to consolidate further as a cluster. In July, the Chairman of the Business Section, also met with Daniel Gottschald and Irina Nunberger, Managing Director and Project Leader, respectively, of Chemie Cluster Bayern. Chemie Cluster Bayern is a public private partnership based in Bavaria, aiming to facilitate clustering in industries with a common relation to chemistry and chemical products. The possibilities of collaborating with members of the Malta Chamber were discussed as was a potential collaboration with the GermanMaltese Business Council and joint participation in EU-funded projects.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Services Providers Economic Group The Services Providers Economic Group Executive Board met throughout the year to discuss issues relating to the Business Sections that fall under it namely: Financial Services; Information and Communications Technology; Real Estate; Remote Gaming; Road Contractors; Shipping and Bunkering; Tourism and Yachting Services.

Service Providers Economic Group Business Sections

In 2013, the Services Providers Economic Group Executive Board held a number of meetings. The objectives and plan of action for the term included the Executive Board’s strategic and political support to the specific issues raised by the various Business Sections falling within the Service Providers Economic Group. The Executive Board focussed on facilitating liaison between the business sections in addressing crosssectoral issues and challenges and reaching out to non-members. It was decided from the outset that the priorities of the Economic Group and that of the Executive Board will be determined by the various ongoing maters raised by the Business Sections. An analysis of the demography of the Economic Group was carried out to facilitate focus and prioritisation. This exercise was also useful to determine efforts required to reach out to areas of business that would best be represented by this Economic Group or to motivate potential new Business Sections within this Group. Throughout the year, the Economic Group Executive Board followed up on efforts and good work developed by the outgoing Executive Board, primarily aimed at reviving a Tourism Business Section. Various established associations and individuals joined membership of this Economic Group following a fruitful reach out to potential members already operating within the tourism sector but distinct from the established hotels and restaurants. Finally, a meeting for these specific members was organised in September to set up the Tourism Business Section and elect its Executive Committee which would serve its term to the next Council elections in 2015. The Executive Board held regular meetings with the Chairpersons of the respective Business Sections that fall within the Services Providers Economic Group.

Financial Services Business Section The Financial Services Business Section Executive Committee held meetings concentrating mainly around the Single European Payments Area (SEPA) Regulation. This in view of the deadline estavlished by the Regulation for SEPA implementation. In this regard, the Executive Committee worked to raise awareness of the Regulation, its implications and the preparations needed for its implementation. In fact, the Financial Services Business Section, in collaboration with the National SEPA Committee, the Central Bank of Malta and the Malta Bankers’ Association organised two information seminars for all Malta

Chamber members on 17th June and 26th September. The panel of speakers gave presentations on SEPA, highlighting its aims and benefits as well as practical information on how the business community should prepare from a practical and IT perspective. Particular importance was given to the need for business to start the organisational preparations for migration to the new system at all levels, as well as talks and consultation with the businesses’ service providers and banks, in view of the fast approaching deadline which left a few months for migration. During the year, the Executive Committee also kept track on the developments taking place in the Pensions Reform and the introduction of the third pillar.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Information & Communications Technology Business Section The Executive Committee of the Information and Communications Technology Business Section held a number of meetings during 2013. Early in the year, the ICT Executive Committee held a meeting with the Ethiopian Ministry of Information Technololgy. At the meeting, the Committee stressed on the importance of joint ventures and proposed that the Malta Chamber through its Internationalisation Desk, could work in collaboration with the Ethiopian Chamber of Commerce to match potential partners. The matter was further discussed with the Malta Chamber’s permanent staff in order to coordinate and work closer with the Malta Chamber’s. Once the new Government Administration took office, the Executive Committee invited Parliamentary Secretary for Competitiveness and Economic Growth Dr Edward Zammit Lewis, for a meeting with all members of the Business Section. Dr Zammit Lewis was also accompanied by Emmanuel Darmanin, Department Manager of Strategy and Planning at Malta Information Technology Agency (MITA). At the meeting, the Committee presented the Industry’s recommendations, highlighting the importance of having a more specialised skill-base, the possibility of government support to help the Industry set up an ICT Malta, MITA’s strategy on outsourcing, Internationalisation, the possibility of reducing administrative burden for firms to access funding, as well as possible initiatives with regards to venture captial for SMEs. Dr Zammit Lewis assured the Industry of his full support to enhance the sector’s growth through a focused strategy, which MITA and the Malta Communications Authority (MCA) were commissioned to formulate for the period 2014-2018.

The ICT Executive Committee continued in its endeavour to reinstate the publishing of the MITA Procurement Outlook. MITA took on board this request during the year. Later on in the year the Committee invited all of its members to discuss and formulate proposals which were then submitted to MITA in relation to its outsourcing framework. The Business Section welcomed MITA’s stated target to outsource all systems to the private sector while retaining core sensitive critical systems, and further made its recommendations for a comprehensive outsourcing strategy. The Executive Committee sent its position paper with regards the ‘Digital Malta – National ICT Strategy’ for the period 20142018. It was pleased to note that a number of initiatives were in line with the suggestions the Business Section had been recommending for a number of years. Nonetheless, the Committee highlighted the importance of having an adequate budget allocated to the National Strategy including an outline of the allocation of funds to each project/ initiative; the development of a yearly strategy outlining the timeframes of when initiatives/ objectives for each year would be met; as well as coordinating and consolidating the numerous committees and their activities under ICT Malta. Finally, the Executive Committee committed to further contribute towards the implementation process and urged the Government to keep the Business Section involved in the consultations to follow. The ICT Business Section was invited to participate in a collaboration with Malta Enterprise on an EU-funded project for Cluster Excellence. The interested companies forming the cluster discussed the project parameters and clarified expectations. It is expected that during 2014 the Cluster Group with be formally set up with the assistance of Malta Enterprise.

Finally, the Business Section worked on various other issues, events and iniatives to promote and help the Industry during the year. These included a Seminar entitled ‘Tendering Opportunities for SMEs’ which was organised by The Malta Chamber, the Malta Business Bureau and Malta Enterprise as part of the SME week. Francois Grech participated as one of the speakers who highlighted a number of issues in ICT tendering procedures to the attention of the Department of Contracts Director General, Anthony Cachia. Mr Cachia shared the Industry’s concerns and affirmed his commitment in addressing the issues raised in the best way possible.

Real Estate Business Section The Real Estate Business Section Executive Committee held a number of meetings during the year. The main focus of these discussions centered around the re-instatement of the old Permanent Residence Scheme into the Global Residence Programme, which was introduced by the new Government Administration. The Real Estate Business Section had been following the matter since 2010 and was appreciative of the fact that a number of proposals were in line with the suggestions which the Section had been recommending for a number of years. Considerable effort was also put into discussions and close collaboration with the Financial Intelligence Analysis Unit on formulating the anti-money laundering guidelines pertaining to the real estate industry. During the year, the Executive Committee also put forward numerous budget recommendations and has been working hard on plans for more proactive marketing of the Maltese lifestyle and property market overseas. It meanwhile continued to reach out to operators in the industry who are not yet members of the Business Section.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Remote Gaming Business Section The Remote Gaming Business Section Executive Committee held a number of meetings throughout the year to address a number of challenges pertaining to the industry and to promote the interests of its members. These included meetings with Parliamentary Secretary for Competitiveness and Economic Growth Dr Edward Zammit Lewis, Member of the European Parliament Roberta Metsola and the Executive Chairman of Lotteries and Gaming Authority Joseph Cuschieri. Among the issues that were discussed during a meeting with Dr Zammit Lewis, the Executive Committee went a step further to suggest a number of initiatives. These included the possibility of consolidating audit processes, a review of existing regulations which would permit leveraging of new technologies, as well as the possibility of streamlining licences of the same class within the same company or group of companies. At the end of the meeting, the Remote Gaming Business Section Executive Committee agreed to commission a report which has now been presented to Dr Zammit Lewis as well as to the Mr Cuschieri. In July, in anticipation of a vote in the European Parliament which would approve a resolution on online gambling, the Executive Committee held a meeting with Ms Metsola. They discussed a number of issues within the resolution which would compromise Malta’s attractiveness in the sector. Ms Metsola shared the Committee’s concerns and committed to lobby and safeguard Malta’s position in the European Parliament. The Executive Committee’s Chairman George Debrincat was invited on a panel of speakers at a public dialogue entitled ‘Online Gambling in the Internal Market – Public Dialogue with MEPs and Stakeholders’ which was organised by the European

Parliament Information Office in Malta and the Malta Business Bureau. Mr Debrincat participated in the panel debate by expressing the views of the Industry and the concerns on the impact such a resolution would have on Malta should it become legislation. At the end of the year, the Executive Committee met the newly appointed Executive Chairman of Lotteries and Gaming Authority Mr Cuschieri. During the meeting, the Committee stressed on the importance of consultation with operators in the industry relating to the introduction and implementation of legislation impacting the sector. Both parties committed to cooperate to ensure that such an important sector in Malta’s economy is always one step ahead of its competitors.

Road Contractors Business Section A number of meetings have been held throughout the year, both at the Executive Committee level, as well as with the group of Business Section members who are participating under Level III of the Framework Agreement. These were often held to discuss and tackle various issues which were frequently followed up with representations to the relevant authorities. The most important meetings held during the year were those with Transport Malta in light of the upcoming Framework Agreement which would be replacing the previous one. The main issues dealt with during these meetings included the revision of prices in the Framework Agreement; arrears and the late payment for works carried out with the resultant effects on liquidity; emergency works; utilities works; traffic management and the burden of unnecessary guarantees. The Executive Committee held a number of meetings with the main purpose of bringing to an end the ongoing discussions on the proposed revised prices for works carried out

for Transport Malta under Level III of the Framework Agreement. The crux of the problem lay in the fact that most of the prices had been the same for over a decade and the rates did not reflect their costs. To this effect the contractors revised the existing rates also in view of the upcoming agreement and sent their submission to Transport Malta. The Committee also made representations to Transport Malta to ensure that pending compliance certificates and related payments were given priority for clearance. In November, the Road Contractors also held a meeting with then Chief Executive Officer of the Water Services Corporation (WSC) Frederick Azzopardi. During the meeting, the Executive Committee highlighted the major issues being faced by the road contractors which included the issue payments in arrears, and the revision of prices. Indeed, early in the year, the contractors had submitted a revision of the prices for works to cater for the substantial increase in the price of certain qualifying raw materials to WSC.

Shipping and Bunkering Business Section The Executive Committee of the Shipping and Bunkering Business Section works closely with the Executive Committee of the Association of Ship Agents. A meeting was held on 20th June 2013 with the Chief Executive Officer of Transport Malta James Piscopo. The purpose of the meeting was to brief the new CEO on the role of the Shipping and Bunkering Business Section and all aspects of this line of business and its problems and challenges. The Executive Committee has discussed the viability of a Cruise Liner Terminal in Gozo and was monitoring developments. It

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

has been noted that the Valletta Gateway Terminal was preparing to be able to offer facilities to cruise liners at their terminal and also that Palumbo Shipyards were pressing principals whose vessels were at their facility to utilise their services in place of those normally provided by ship agents. The Committee had also been informed that the site previously occupied by Malta Shipbuilding had been designated as a service centre for super yachts. The Executive Committee has met with the Parliamentary Secretary for Competitiveness and Economic Growth Dr Edward Zammit Lewis on two occasions. The meeting had been held to discuss career opportunities in shipping and the lack of training available and also the possible introduction of legislation for the setting up of Ship Management companies. A further meeting on the topic was held with Minister of Transport Joe Mizzi. The difficulties of the bunkering trade and the bad image of those providing the services has been discussed with various authorities. The matter falls under the responsibility of the Minister for Energy and Conservation of Water with whom a meeting had been requested. The Executive Committees had discussed the introduction of a European Maritime Safety Agency which was expected to provide an Integrated Maritime Policy. Transport Malta had identified a few ship agents for the pilot project. The software which would possibly replace Portnet was being tested for introduction by 2015.

Tourism Business Section In September 2013, the Malta Chamber revived the Tourism Business Section. This Business Section would cater for operators that support and engage in services to the tourism industry.

At its first meeting, the Executive Committee started discussing the Business Sectionâ&#x20AC;&#x2122;s plan of action for the coming year. It was established that the Business Section would represent those sectors which are ancillary to the hotel and catering sectors and ensure that Malta remains a centre of excellence in Mediterranean tourism through its work and collaboration with other entities.

attract yacht owners. The Committee also recommended the introduction of fiscal incentives for captains and crew, the development of a new marina at Sa Maison and connection flights from Nice. The Committee is pleased to note that following its efforts, Hon Dr Zammit Lewis committed to address the plight of operators and ensure that connections to the South of France are introduced to resolve the matter.

Finally, the Executive Committee sought to re-establish a close relationship with the Ministry of Tourism and the Malta Tourism Authority (MTA). To this effect, the Committee requested an introductory meeting with the Minister together with MTA Chairman Dr Gavin Gulia and CEO Josef Formosa Gauci discuss the Business Sectionâ&#x20AC;&#x2122;s immediate roadmap and objectives for the coming year, as well as feedback on what can be expected from this important sector in the economy.

The Executive Committee have remarked to Government with regards to the lack of representation of yachting operators on the National Maritime Strategy Committee which would also be serving as an advisory body for the Parliamentary Secretary for Competitiveness and Economic Growth. The remit of this Committee was clarified by the Ministry in that it is essentially an internal public administrative function. However, Parliamnentary Secretary Hon. Dr Zammit Lewis affirmed his commitment to keep the Yachting Services Executive Committee consulted and updated with the developments.

Yachting Services Business Section Throughout 2013, the Yachting Services Executive Committee met on a number of occasions with the main objective of addressing and raising the Industryâ&#x20AC;&#x2122;s challenges with the relevant Authorities. The Executive Committee reiterated its position as an important consultation partner with Government when it comes to practical issues, initiatives and challenges of the industry. This was done at a meeting with Parliamentary Secretary Hon Dr Edward Zammit Lewis. The Committee also raised a number of challenges pertaining to the sector such as the lack of hard standing facilities in Gozo, issues within Malta Environment and Planning Authority (MEPA) in relation to pending applications and unissued permits for new marinas, the issue of the environmental impact on marine plants like posedonia, as well as the limited leisure opportunities within the immediate vicinity of Marinas to

During the year, the Executive Committee also discussed other issues such as safety and hyigiene at sea and the licensing of noncommercial vehicles for charters. It is also insisting that the MEPA should have appropriate maritime technical expertise available especially when dealing with maritime issues and deciding on initiatives which would impact on the maritime sector, especially the yachting one.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Committee Energy and Environment Committee During the year under review, the Energy and Environment Committee held several internal meetings of the Executive Committee and external meetings with Government departments and authorities and other stakeholders in the energy and environmental sectors. Meeting with Parliamentary Secretary for planning and administrative simplification Dr Michael Farrugia

Meetings with Minister for Sustainable Development,the Environment and Climate Change Leo Brincat

Malta Chamber Energy and Environment committee delegation led by President David G. Curmi, attended a meeting with Parliamentary Secretary for Planning and Simplification of Administrative Processes Dr Michael Farrugia on 27th May. This meeting, formed part of the Semma’ Leħnek consultation on how the planning system and other procedures within the Malta Environment and Planning Authority (MEPA) can be simplified. Dr Farrugia welcomed the Malta Chamber delegation and thanked it for the initiative and the interest shown in this consultation. He said that before the decoupling of the authority was implemented, the Government was committed to consult extensively with all the major stakeholders. Mr Curmi reiterated that previous experiences with reform had not been positive and that the Malta Chamber had agreed in principle to the separation of the planning and environmental arms of MEPA as long as both authorities were given the same financial and human resources to implement their respective remits. Mr Farrugia stated that this reform would enable Government to have a more streamlined entity focusing on planning matters, whilst the new Environmental agency will be given a new remit and resources to operate effectively. He mentioned the need for more innovation at design level, the simplification of procedures as long as there was cooperation from all stakeholders including developers and architects and the increase of enforcement of rules already in place. Other members of the Malta Chamber delegation raised a number of issues amongst them, the lack of enforcement across the board, clarity with regards to ODZ development, the need to learn from best practices abroad and apply what is best suited for the country, compliance certificates, land reclamation, need for extension of yacht marinas, clarity of MEPA policies and sustainable development. Mr Curmi presented the Parliamentary Secretary with the recommendations of the Malta Chamber with regards to the consultation. He also made a formal request for the organisation to form part of the working group overseeing the reform.

uring the year under review the committee met the Minister for Sustainable Development, the Environment and Climate Change Leo Brincat on a number of occasions. Malta Chamber President David G. Curmi led these meetings, accompanied by representatives of the Malta Chamber’s Energy and Environment Committee. Minister Brincat acknowledged the role of the Malta Chamber as a principal stakeholder in the representation of business, for consultation purposes with his ministry. The Malta Chamber appreciated the Minister’s disposition to listen to its views on a number of issues such as; ecocontribution, waste packaging, waste electrical and electronic equipment, the role of Wasteserv, landfill fees, MEPA, green jobs, energy efficient buildings and emission trading schemes. On the subject of eco-contribution, Mr Curmi stated that this was clearly not functioning and neither was it serving its intended purpose in terms of businesses’ environmental obligations. The Malta Chamber was therefore calling for the removal of this tax in favour of participation in waste management schemes. It was explained that the loss of revenue from eco-contribution would be neutralised by efficiency gains resulting from future private sector involvement within the country’s waste management strategy. The Malta Chamber pledged its full cooperation to the Ministry to ensure workable schemes for its members and which should also cover electric and electronic products and batteries. At the same time, the Malta Chamber would also be insisting for the immediate resolution of outstanding refunds on packaging waste related to 2009 and 2010. During these meetings, the Minister announced that a comprehensive study has been commissioned on various aspects related to Wasteserv’s operations. Both sides expressed their commitment towards open discussions on the future of Wasteserv once the conclusions of the study are made known.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Outstanding Eco-Contribution Refunds

he Malta Chamberâ&#x20AC;&#x2122;s Energy and Environment Committee has continued to follow the matter related to payment of outstanding Eco-Contribution refunds for 2009/2010 period with the new Government. The matter was raised with the Minister for Sustainable Development, The Environment and Climate Change during a number of meetings. Both parties identified the overdue Eco-Contribution refunds as the most urgent issue that was discussed during the meeting and agreed to collaborate towards seeking an early solution.

Meetings about waste strategy with Ministry officials

s part of the consultation process launched in May by the Ministry for Sustainable Development, The Environment and Climate Change in relation to a renewed waste plan for Malta, the Energy and Environment Committee was extensively consulted during several meetings with Ministry officials. Two extensive documents based on a number of principles, these included the need to:

1) clarify the situation in relation to the EcoContribution exemptions/refunds for waste packaging, WEEE, batteries and waste oils; 2) assess the future of the Eco-Contribution Act including the possibility of major amendments or outright abrogation; 3) increase enforcement on those companies which are not following their legal obligations. 4) clarify wasteservâ&#x20AC;&#x2122;s role as a regulator and reduce its active dominant position on the market, and allow the private sector to flourish. 5) Create schemes of assistance to help the waste management sector to invest locally and open further facilities for pre-treatment; 6) Organise effectively the collection from Local Councils possibly on a regional or district basis and introduce targets for separation for every locality; 7) Finance a national media campaign to inform the general public to separate and recycle their household waste. During the second phase of the consultation concluded in December 2013, the Malta Chamber presented another document which besides feedback to the Governmentâ&#x20AC;&#x2122;s plan also included extensive proposals on the possibilities of privatisation waste management options currently operated by Wasteserv. These documents were also presented to the Minister towards the end of the year.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Committee Human Resources During the year under review, the Committee focused on a number of issues including absenteeism, early school leaving, and the national employment strategy amongst others. Malta Chamber participates in “Qatt Tieqaf TitgHallem” conference

n 24th May, members of the Malta Chamber Human Resources Committee participated in a conference that focused on Early School Leaving (ESL). Member of the Committee Ruth Farrugia, delivered a short presentation in relation to the proposed national strategy on ESL. The Malta Chamber’s report, drawn up in 2013, identifies and analyses the main causes of early school leaving and proposes 32 strategic actions which regulate, monitor and provide information on the success rate of these measures. During her intervention, Ms Farrugia addressed several essential points, amongst which was the Malta Chamber’s agreement with the setting up an inter-ministerial committee. Ms Farrugia expressed the Malta Chamber’s willingness to form part of this working group. She maintained that the education system should aim to develop the full potential of each individual. In this regard, it is believed that one of the major challenges being faced by the education system is the duration of the scholastic year, which is less than 30 weeks long in Malta. Ms Farrugia noted that the social partners should discuss the possibility of extending the hours that a child spends in school, where different professionals could introduce extracurricular activities. She continued that such a policy action could be conducive to a higher female participation rate in the labour market. Furthermore, Ms Farrugia maintained that repeated absenteeism was one of the factors that contribute to early school leaving. The Malta Chamber encourages the incentivizing of attendance and participation through other related policies that can be dovetailed, an example of which could be the tablet policy.

Ms Farrugia concluded that with the constant changes in the global economic scenario, all students are to be given adequate employability skills to ensure that they remain active in the labour market. One major skill that the Malta Chamber promotes is inclusion of entrepreneurial skills in the curriculum as well as improvement of spoken English language skills Benchmarking forum on staff absenteeism

he Committee organised a Benchmarking Forum event focusing on absenteeism on 25th June. Chairperson Catherine Calleja explained that the aims of benchmarking fora were to share information, discuss best practices and compare company policies on the subject being discussed. The session discussed absenteeism, including injury, vacation and special leave, and its implications on member enterprises. Those attending had prepared information on their companies’ practices. Through this information, those present were able to compare methods of measuring absenteeism, absenteeism rates, significant trends, measures to reduce sick leave, policies and procedures, issues related to data protection, and preventive programmes. An overview of National and European legislation relating to absenteeism, sick leave entitlement, injury leave, and recent European Court of Justice Rulings was provided by Mariella Scicluna from the Malta Business Bureau. In general it was noted that the lost time rate varied between 2 and 4 per cent, with the highest rates being registered during the months of January and February and the lowest during June and December. Companies operating on a shift basis recorded the highest rates of sick leave during the Friday evening shift whilst the most common weekday for sick leave was Monday and the least common Friday. More sick leave was taken by junior younger members of staff. Many members noted that implementation of initiatives discussed during the previous forum in 2011 had reduced absenteeism. Measures included a follow-up interview on an employee’s return from sick leave, the use of company doctors, clear sick leave related policies and procedures, staff and organisational awareness programmes and courses run by the Richmond Foundation and Sedqa. One company specified in its contract that it had the right to ask employees to undergo substance abuse tests. Problems relating to doctors were excessive leniency on behalf of the doctors and also differences between the days of sick leave recommended by a family doctor and the company doctor, where some company doctors were actually giving

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

more sick leave days than family doctors had already given. It was noted that employees were not required to disclose their illness unless this compromised hygiene and/or safety or if the sickness was related to the company or work practices. Various meetings with Minister for education and employment Evarist Bartolo

uring the year under review, the committee met on a number of occasions with the Minister for Education and Employment Evarist Bartolo. The issues discussed during such meetings included early school leaving , traineeships and apprenticeships and further collaboration between the Malta Chamber, the University of Malta and MCAST. During a visit to the Chamber, the Minister met a delegation led by Malta Chamber David G. Curmi, and included members of the Board of Management and members of the Human Resources Committee, as well as permanent staff. During the meeting, Minister Bartolo explained that his Ministry was preparing an extensive strategic plan for education which would include an overhaul of the current system. He explained the need to create better links between education and the world of employment and also made reference to the importance of promoting entrepreneurship. He added that Government was embarking on an exercise to audit the current curricula of the various subjects being taught at secondary level to enable the authorities to identify the existing gaps. He said that the private sector had a strong role to play and invited Chamber members to actively participate in this exercise especially through assisting the Ministry in modernising the current guidance teacher set-up. He said that continuous communication between industry and academia was key in establishing the skills gaps that existed within the workforce. Mr Curmi explained that the private sector was identifying difficulties in finding the appropriate skills required in today’s modern and ever changing economy. He explained that in many instances certain expertise could not be found in Malta and companies were required to import this knowledge from abroad especially from non-EU countries which further complicated matters due to VISA requirements and residence and work permits. Other issues raised during the meeting included the importance of internship schemes to give students valuable job exposure and using the next EU programming period to allocate further funds towards training and employment. Schemes such as the Training Aid Framework and

Employment Aid Programme had been beneficial in spite of the administrative problems encountered by companies to receive reimbursement. The Minister assured those present that lessons had been learnt and that the Ministry for European Affairs was currently finalising its Operational Programmes with regards to the net EU funding allocation. Other issues discussed during the meeting included increasing female participation in the labour market, the early school leaving strategy, tracer studies, parental sick leave and pensions. It was also agreed that Ministry and Chamber officials would meet periodically to discuss updates and developments in these areas. National conference on enhancing social dialogue & labour institutions

ommittee member Antoinette Caruana attended the national conference on enhancing social dialogue & labour institutions organised by the Department of Industrial and Employment Relations (DIER) on 5th December. In her capacity as member of the Malta Chamber Human Resources Committee, Ms Caruana focused on the importance of taking stock of the mechanism and climate of social dialogue to seek continuous improvement for the benefit of the economy and society at large. Ms Caruana spoke about the distinct levels of social dialogues. On a national level Ms Caruana emphasised the importance of identifying partners, agreeing upon representation, ensuring effective communication, having a process that was manageable and which made optimal use of scarce resources, and being prepared with the required information and technical papers. In conclusion Ms Caruana said that social dialogue was not “an end in itself” but rather “a means to an end”. It was a tool which required the correct policy, mechanisms and structures, as well as the right commitment, communication and relationships so as to deliver improvements to the way business was carried out. Ultimately, this should lead to economic betterment and a better future for the country. Jobs+ Committee

uring the year under review, the Malta Chamber was represented by Catherine Calleja and Kevin J. Borg on the newly-formed JOBS+ committee. This committee which was formed under the auspices of the Ministry for Education and Employment is further composed of employer organisations and trade unions. The aim of this committee is to promote and implement active labour market policy actions as agreed upon by all social partners. The main issue being discussed is the updating of the employment strategy for Malta. The Committee met on a number of occasions to discuss this matter. A final document was presented to the Government in November. The main conclusions of the Malta Chamber’s recommendations included three priorities which are 1) structural labour market factors, 2) low labour market participation, 3) and the skills challenge.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Committee Internationalisation Committee The Internationalisation Desk operates under the guidance of the Internationalisation Committee and is manned by Manager Klaus Pedersen and Executive Lina El-Nahhal.

he role of internationalisation is gradually growing in importance to the average member of the Malta Chamber, and the number of activities which have to do with foreign companies and organisations is also growing steadily. Consequently, the role of the Internationalisation Desk at the Malta Chamber is becoming increasingly important. The work undertaken is import reactive, responding and reacting to inquiries from members and foreign companies and organisations. The two main thrusts of the Deskâ&#x20AC;&#x2122;s work is demand-driven and stems from a membership profiling exercise - a project for which the Malta Chamber was awarded first prize at the National Enterprise Support Awards as part of an EU-wide competition, and went on to represent Malta at the European Enterprise Awards in Lithuania. This is complemented by the activities of Business Councils, another initiative pioneered by the Desk, and which have been a tremendous success. The Desk also deals with several other matters. One of these is trade consultation, where the Desk is responsible for consulting with members on issues related to trade policy. This is mainly done by processing the information received from the Economic Policy Division within the Ministry of Finance and disseminating this information via the Malta Chamberâ&#x20AC;&#x2122;s weekly e-newsletter, targeted e-mails and at times, by contacting the affected companies directly.

The Internationalisation Database - Winner of the National Enterprise Awards 2013

he project for which the Internationalisation Desk won the prestigious award was conceptualised by the Internationalisation Committee and created by the Desk. It is a database, which bases itself on an ongoing survey. The Internationalisation Desk identifies Malta-based companies which are engaged in international activities and contacts them in order to conduct a telephone interview. The data gathered identifies the countries in which the company does business, as well as the countries in which it would like to do business. For each of these countries, the activity and sector are identified. The resulting data allows the Desk to draw conclusions about the internationalisation activities of Maltese companies at a macro-level, but it also allows the Desk to identify individual companies when there are contacts or activities which may be of relevance. Business Councils

usiness Councils have taken on a much greater importance in 2013. For the first time since the inception of the Internationalisation Desk, the majority of events organised by the Desk were organised in conjunction with Business Councils. This is a very important development because it ensures that the activities undertaken are demand-driven and involve members of the Malta Chamber. Business Councils are horizontal committees within the Malta Chamber that focus on promoting business exchanges between Malta and specific countries or regions. The concept was developed as an internal policy by the Internationalisation Committee as a way of creating entities within the Malta Chamber, so that the secretariat can ensure greater coordination, control, continuity and integrity, than can be exercised over with bilateral chambers that operate completely independently of the Malta Chamber. These Business Councils have proven successful in activating members and even generating membership attraction. They have become catalysts for the creation of events and activities which benefit the participating members as well as the Maltese business community at large.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

German-Maltese Business Council

Maltese-Portuguese Business Council

013 saw a number of activities and initiatives by the German-Maltese Business Council (GMBC). Apart from the two activities listed below, the Committee met various stakeholders and key individuals. The Committee is currently planning another event in 2014, the details of which should be available shortly.

Events: 2013 05 30 – Conference on “The Financial Services Industry Development in Malta – Present & Future” held at the new FIMbank building in St. Julians. Key note speakers were Minister of Finance Edward Scicuna and Professor Bannister from the Malta Financial Services Authority. 2013 11 19 – Meeting of representatives of German companies in Malta –“Wirtschaftsstammtisch”, held at the Malta Chamber in collaboration with the Embassy of the Federal Republic of Germany. The Embassy in Malta has held this event a number of years, but this was the first time it was done in collaboration with the GMBC at the Malta Chamber.

he latest in the family of Business Councils was officially formed in 2013. The Maltese-Portuguese Business Council (MPBC) was launched in a high-profile event at the Malta Chamber on 26th February 2014. Malta Chamber President Mr David G. Curmi, opened the event and spoke about the importance of Business Councils to the Malta Chamber’s internationalisation strategy, pointing out that the Chamber has taken this approach in order to avoid fragmentation as well as to ensure the continuity and integrity of the business councils. Maltese Portuguese Business Council (MPBC) Chairman Mr Garry Crossan said that the launch was the result of a year’s preparations, during which the committee had defined the mission statement, contacted and met with relevant stakeholders and created the corporate identity of the Business Council. Chairman of Banif Bank plc and former Portuguese Minister of Foreign Affairs Mr Louis Amado, spoke about the economic outlook for Portugal and the economic recovery that the country is currently experiencing. The event was also addressed by the President of the Confederação Empresarial do Alto Minho (CEVAL), Mr Luis Ceia, who showed a short video about the main business sectors in Portugal and later spoke about CEVAL’s objectives, which included that of developing enterprising, supporting the creation of new companies, and providing corporate information for companies and associations, amongst others. Ms Maria Rauch, policy advisor to Minister for the Family and Social Solidarity spoke about AICEP, Portugal’s trade and investment agency. She also mentioned the prominent business sectors in Portugal and the advantages of doing business in Portugal. The Hon. Dr Chris Cardona, Minister for the Economy, Investment and Small Business delivered the closing remarks where he congratulated the Malta Chamber on this initiative and described Banif Bank as a perfect example of cooperation between Portugal and Malta. Minister Cardona further expressed his hope that Maltese businesses would seize opportunities by reaching out to the Portuguese market. A number of Portuguese companies attended the launch and exhibited their products and services in the Malta Chamber’s courtyard during a networking reception that followed. They also had one-to-one meetings with Maltese companies the following day as well as a visit to Gozo. The MPBC has been very active, meeting regularly and conducting meetings with various stakeholders, including FinanceMalta, Malta Enterprise and an incoming delegation from the confederation of Employers’ Association in the Minho Province in Northern Portugal.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Middle East Business Council

Scandinavian Business Forum Malta

hile the foundations for this entity were laid in 2012 with a call for expression of interest, the entity started working in earnest in 2013 under the chairmanship of Peter Frendo. During the year, the chairmanship was passed on to Tonio Casapinta. One can read more about the Middle East Business Council (MEBC) on its website: www.mebc.com.mt This Business Council has been extremely active throughout the year and apart from the activities listed below, the Chairman accompanied by members of the Malta Chamber Council and representatives of the secretariat, has held a large number of meetings with many key stakeholders in Government, organisations, institutions and private companies. These meetings have resulted in the events listed below as well as in a business mission to the Gulf, which is being planned in 2014 in collaboration with Malta Enterprise.

Events:

Tunisian-Maltese Business Council

2013 03 27 - MEBC committee members met with a number of prominent journalists from the United Arab Emirates during their visit to Malta and obtained good exposure in the Gulf Cooperation Council countries from this exercise.

his very active committee had another busy year under the leadership of its dynamic Chairman, Dr Mark Fenech. This year, the efforts of the Scandinavian Business Forum Malta (SBFM) were especially directed towards the consolidation of its website: www.sbfmalta.com, which has been developed and launched by ICON, one of the SBFM’s official sponsors, together with Frank Salt (Real Estate) Ltd and SEB Bank. Event:

2013 11 28 - SBFM seminar on customer loyalty with guest speakers Dr Gege Gatt, ICON Studios and Mikkel Korntved from Loyalty Group A/S of Denmark. Mr Korntved spoke about customer loyalty and customer retention and Dr Gatt focused on how one can use the internet to attain higher customer and brand loyalty.

In 2013, The Tunisian-Maltese Business Council (TMBC) organised the two events listed below and also held a number of meetings with the Tunisian Ambassador in Malta, H.E. Mme. Souad Gueblaoui. Events: 2013 04 08 – Tunisian Business Forum organised for representatives of FIPA, CEPEX, APIA, UTICA – trade and investment promotion agencies in Tunisia. Members of the Tunisian side of the TMBC were also present.

2013 10 10 – Launch event held at SmartCity Malta with guest speaker Dr Ahmed Al Banna, CEO of Dubarch Architectural Engineering Interior Design Consultancy.

2013 11 29 – Seminar on business ethics and culture in the Arab world – two years after the “Arab Spring” held at the Malta Chamber with guest speakers Dr Ranier Fsadni, professor at the University of Malta; and Sanaa El-Nahhal, Director of the Arabic Culture Information Society. 2014 01 17 – Think tank meeting on tender consortia formation in the Middle East and North Africa region organised at the Malta Chamber.

2013 06 27 – Tunisian Business Forum organised in collaboration with Malta Enterprise and the Chamber of Commerce of the Center, Tunisia. B2B meetings followed between the representatives of the delegation and their Maltese counterparts.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

The following are some of the other activities undertaken and/or supported by the Internationalisation Desk: 2013 05 6-20 - Aspects of Internationalisation: Strategic and Practical Considerations for SMEs Going International

Internationalisation Desk Manager Klaus Pedersen, together with several guest speakers, was involved in delivering a course on Aspects of Internationalisation. The course stretched over 5 lectures of 2.5 hours from 6th to 20th May 2013. 2013 02 21 – Doing Business with Spain

The ‘Doing Business with Spain’ event was organised at the Malta Chamber in conjunction with the Spanish-Maltese Chamber of Commerce. 2013 03 22 – Doing Business with South Africa

Outgoing business delegations

alta Enterprise is usually the main organisation coordinating outgoing business missions, with a dedicated staff and budget to undertake and financially support such activities. As part of a declared policy of working closely with Malta Enterprise, the Internationalisation Desk at the Malta Chamber participates in these missions by: • Contributing to the annual plan for outgoing missions, with a basis in the research done as part of our profiling exercise, • Disseminating information about upcoming missions, via e-newsletters and dedicated mailing lists, • Identifying a participant from the Malta Chamber to represent the organisation on such missions, typically a member of the Board of Management or the Council, • Supporting Malta Enterprise with contacts to local chambers of commerce, • Supporting the participating officer with addresses and market information as necessary, • Preparing MoUs with other Chambers when necessary.

In 2013, there were outgoing business missions to the following destinations:

Date: 9-13 June 203 City: Sfax, Sousse, Tunis Country: Tunisia Malta Chamber Rep: Ms Lina El-Nahhal

On the occasion of the visit of Minister Plenipotentiary Delina de Villiers Steenkamp, the ‘Doing Business with South Africa’ event was organised in collaboration with the Honorary Consul of South Africa in Malta Ivan Mifsud.

Date: 15-17 October 2013 City: Tel Aviv, Ramallah Country: Israel, Palestine Malta Chamber Reps: Mr David G. Curmi, Mr Anton Borg, Mr Frank V. Farrugia Date: 19-20 November 2013 City: Sharjah Country: United Arab Emirates Malta Chamber Rep: Mr Tonio Casapinta Date: 24-27 November 2013 City: Vilnius Country: Lithuania Malta Chamber Rep: Mr Klaus Pedersen Date: 21-24 January 2014 City: Vienna, Bratislava Country: Austria, Slovakia Malta Chamber Reps: Mr David G. Curmi, Mr Joseph R. Darmanin

2014 01 23 - Doing Business with the Netherlands

Ambassador of the Netherlands HE Rita Dulci Rahman addressed the Doing Business with the Netherlands event held at the Malta Chamber. Top Dutch level speakers came together to discuss sustainable growth, innovation, green ICT and gaming.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Incoming business delegations

hroughout the year, a number of foreign delegations come to Malta on business-related missions, be they institutional visits, delegations of businessmen, politically-led missions or groups of journalists on exploratory visits. In all cases, the Internationalisation Desk is one of the first ports of call from the planning stage, through promotion and dissemination, up to the actual meeting and hosting of such delegations.

The following are some of the delegations that we have received this year, either at the Malta Chamber or as part of events organised at Malta Enterprise:

Date: 2013 05 03 Name: Mr Ronnie Micallef from British Council in Ethiopia visited Malta Chamber with official from Ethiopian Ministry of Agriculture Country: Ethiopia Date: 2013 04 08 Name: FIPA, CEPEX, APIA, UTICA Country: Tunisia Date: 2013 06 04 Name: Odemis Country: Turkey Date: 2013 06 20 Name: Business Delegation Country: Nigeria Date: 2013 11 12 Name: CEVAL Country: Portugal Date: 2013 06 27 Name: Maltese-Tunisian Business Council, Chamber of Commerce of the Centre Country: Tunisia

Meetings with stakeholders and the diplomatic corps

ne of the declared objectives of the Desk is to work closely with stakeholders, especially Malta Enterprise, FinanceMalta, relevant ministries and the diplomatic corps in Malta, as well as that of Malta abroad. It is therefore natural that a lot of time is devoted to meetings and communication with these entities. Furthermore, the Internationalisation Desk of the Malta Chamber is increasingly the first call for many stakeholders and businessmen who visit Malta from abroad. It invests time and effort in meeting these visitors, in the hope of these meetings leading to contacts for Malta Chamber members. It also explains to visiting companies, the possibility of becoming Malta Chamber members through the newlyintroduced International Membership. These meetings are announced in the Malta Chamberâ&#x20AC;&#x2122;s weekly e-newsletter for the benefit of members interested in being put into contact with these Consuls.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Committee Marketing Committee During 2013, the Malta Chamber’s Marketing Committee took on the added task of assisting the Malta Chamber in its own internal marketing functions and activities.

he Marketing Committee was set up in order to bring together like-minded people who work in marketing in order to raise the flag for the marketing profession in Malta and to promote best practice. 2013 saw the reinforcement of the Committee with new members joining. During the year under review, the Malta Chamber’s Marketing Committee took on the added task of assisting the Malta Chamber in its own internal marketing functions and activities. A number of projects and initiatives were taken in this regard, including providing invaluable input to come up with the design of the forthcoming new version of its e-newsletter – ChamberLink. The revamped e-newsletter will serve to reinforce the value given to members from membership and to raise the profile of the Malta Chamber with members, potential members and stakeholders, including social partners, Government and international entities.

The Marketing Committee now looks forward to embark on a membership reach-out exercise, together with the Malta Chamber’s new Marketing Executive Diane Seychell, in order to implement the Malta Chamber’s marketing strategy. The Executive is responsible for an exercise which involves membership retention and attraction to companies who are currently in business, and also to students who are ultimately the entrepreneurs of tomorrow. The Marketing Committee will be responsible to guide the Marketing Executive and advise on related matters accordingly. In 2014, the Committee will continue working to contribute to the development and recognition of the marketing profession, help businesses embrace the marketing function and offer guidance on marketing matters. In view of this, the Committee will be working to hold its first event for members in 2014.

Policy Committee Research Technology Development and Innovation (RTDI) Committee The Malta Chamber’s RTDI committee met six times to discuss the R&D strategy which had been formulated in 2012. Meeting with the malta council for science and technology regarding a Smart Specialisation Strategy

ead of Policy Development Andre Fenech met representatives of the European Commission and the Malta Council for Science and Technology to discuss the drafting of a “Smart Specialisation Strategy” for Malta which forms part of the National R&I Strategy 2020. This exercise needed to be based on a process of ‘entrepreneurial discovery’ based on close collaboration with the business sector in order to identify the major strengths and opportunities for Malta in order to focus future funding efforts to these areas. Following this initial consultation, Mr Fenech and Head of Sectors Lino Mintoff were involved in a number of sectorial focus groups during which a sectorial smart specialisation strategy was drafted for such sectors as value added manufacturing, renewable technology, and niche tourism amongst others.

Meeting with DG Research and Innovation (RTD)

n 22nd March, then Malta Chamber Executive Marylyn Hili, together with Prof. Joseph Cilia and Dr Jeanine Rizzo from the RTDI Committee, participated in a meeting in the field of research and innovation which was hosted by the European Commission Representation and addressed by Fotini Chiou an official from DG RTD responsible for the Europe 2020 strategy in Malta. The aim of the meeting was to help the Commission in understanding better the issues and concerns of key players in this important policy area and will serve as input in the drafting of the forthcoming assessment of the 2013 national reform and stability programmes for Malta. During this meeting, Prof. Cilia made a very strong and valid point whereby he highlighted the various obstacles that SMEs encounter when trying to apply for funding and emphasised the fact that procedures are unnecessarily bureaucratic. Amongst

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

other comments he also pointed out that once a company acquires funding this should be monitored periodically in order to assess the return and the value added created by such funding. At the end of the meeting, Prof. Cilia presented a copy of the RTDI document to Ms Chiou and explained the importance of the document which highlighted several issues and recommendations in relation to Malta’s situation. Various meetings with Parliamentary Secretary for Research, Innovation, Youth and Sport dr stefan buontempo

n June, the Malta Chamber Deputy President Anton Borg welcomed Parliamentary Secretary Stefan Buontempo to the Malta Chamber for a discussion on research and innovation. Malta Chamber RTDI Committee Chairman Ing. Roger Galea, presented a document entitled “Meeting the RTDI Needs of Industry” that had been developed by the members of the committee as well as the secretariat. Ing. Galea gave an overview of the eight themes in the document, which amongst others included Innovation management techniques, education preparedness, linkages between academia and business, access to finance and intellectual property rights. Out of the 31 proposals presented in the document, three main suggestions were put forward during the meeting. The first proposal was the suggestion of setting up a technical working group, the Malta Business Research and Innovation Body, which would be chaired by the Malta Chamber and would include representatives from public entities, namely the MCST, Malta Enterprise, ETC, University of Malta and MCAST. The second proposal that was put forward was the importance of educational preparedness and enforcing linkages between academia and enterprises. Members mentioned the importance of promoting collaborative industrial research, which needed to be backed by an equitable and appropriate IP policy framework. The members present gave practical examples based on their experiences explaining how the interaction between University and enterprise accelerates the commercialization of knowledge and creates value-added products and services.

The third proposal focused on the importance of meeting the R&D targets set by the EU. The importance of further investing in R&D was highlighted, particularly by developing programmes schemes for the private sector. Mr Borg referred to Malta’s National R&I Programme, which funded a total of 30 projects between 2006 and 2011 as well as the ERDF Research and Development grant scheme that was made available through the ‘20M for Industry’ programme that was managed by Malta Enterprise. The committee members commended these initiatives and said that the industry’s overwhelming response to both schemes was a clear indication of the need for continuous investments in funding programmes and. Mr Borg continued that alternatives need to be found as industry could afford to stand still until other schemes were announced and commence in 2014 through the next programming period. Dr Buontempo pledged his office’s commitment to participate in RTDI related events organised for Malta Chamber members. As a follow up to this meeting the Parliamentary Secretary welcomed Mr Borg and RTDI Committee members to the Ministry for Education and Employment for a discussion on research and innovation. During the meeting Mr Borg proposed the establishment of a Board dealing specifically with Research and Innovation. The Board would include the Malta Chamber’s RTDI Committee Members together with representatives of the Secretariat. It was recommended that the Board was developed to provide the best economic benefit to industry and business. The Board would also serve as a tool for identifying areas in which SMART specialisation could be carried out. The possibility of setting up a government-funded scheme to link business and academia link was also discussed. The difficulties experienced by researchers travelling from third countries to Malta were also acknowledged. Dr Buontempo was in agreement with the proposal for the setting up of this Board as a matter of priority. He agreed that the Board should be business-driven.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Committee SME and Family Business Committee Coinciding with the new Malta Chamber term 2013-2015, the previous SME Committee was renamed “SME and Family Business Committee” to reflect the importance of family businesses in the economy. The newly elected committee discussed issues of interest and undertook a number of initiatives throughout 2013.

he Committee discussed and prepared a position paper on the Family Business Act which was forwarded to the Ministry for the Economy and Industry and Business. It is also actively participating in the Inter-Ministerial Family Business Act Committee which has been entrusted with the drafting of the legislative document. During the year a survey was conducted to identify the issues that SMEs are experiencing in order to focus on relevant matters that have an impact on the members. The Committee is also engaged in continuous discussion with the respective authorities responsible for public procurement procedures. The SME Committee has forwarded its main proposals for the simplification of public procurement

procedures and to ensure that SMEs have a better chance of participating in tendering opportunities. In line with this initiative, the SME Committee chose to organise a seminar as part of the SME Week to address practical issues impacting the tendering procedures for different business sectors. EU funding opportunities for SMEs was also an important subject being tackled by means of on-going meetings with the respective authorities to identify possible projects that could assist SMEs. The Committee is also analysing the specific aspects of EU legislation and recommendations such as the Smart Regulation, reduction of regulatory burdens and matters arising from the implementation of the Small Business Act.

Task Group The Malta Electronic Communications Providers Task Group The Malta Electronic Communications Providers Task Group (MECPTG), which is an industry body, was launched in May 2013 representing electronic communications providers.

ECPTG’s vision is to promote a sustainable electronic communications industry in Malta and enable Malta’s digital agenda. MECPTG aims to achieve its vision by: • Representing the industry. • Promoting an improved understanding of the electronic communications industry and its contribution to the Maltese economy and community. • Advising on matters of public policy, regulation and legislation. • Generating consensus on common industry issues. • Improving the level of engagement between the industry, stakeholders and the community.

MECPTG members represent an innovative and dynamic industry with combined annual revenues exceeding €250 million and employing more than 1500 people in Malta. MECPTG members invest more than €50 million a year. The electronic communications industry is one of the pillars of the economy and connects Malta to the rest of the world. The industry enables firms to enhance productivity and is crucial to attracting foreign investment and also provides a platform for entertainment, education and the general well-being of society.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Business Sections Executive Committees Electrical and Electronics Mr Simon Alden - Chairperson Dr Ing. Conrad Pace - Deputy Chairperson

Mr Stefan Farrugia Ing. Anthony Galea Mr Noel Micallef Mr Robert Tabone Valetta Financial Services Mr Peter Sant - Chairperson Mr James Bonello - Deputy

Importers Mr Gino Cutajar - Chairperson Mr Anthony T. Camilleri -

Plastics and Rubber Manufacturers Mr Kenneth Caruana -

Deputy Chairperson

Chairperson

Mr Charles Borg Mr Josie Ellul Mercer Mr Charles Mercieca Ms Rachel Bartolo

Mr Olaf Zahra - Deputy

Mr Michael Cooper Mr Stephen Parnis-England Mr Peter Sullivan Ms Johanna Calleja

Information Technology Ms Claudine Cassar Chairperson

Mr Francois Grech - Deputy

Chairperson

Mr Mark Richard Hogg Mr Michael Scerri Ms Rachel Bartolo

Mr Marcel Joseph Cutajar Mr Keith Fearne Mr Roland Scerri Ms Rachel Bartolo

Food and Beverage Processors Mr Stephen Bonnici - Chairperson

Pharmaceutical Manufacturers Dr Claude A. Farrugia -

Mr John Sammut -

Chairperson

Deputy Chairperson

Mr Patrick Cachia - Deputy

Mr Benjamin Brincat Mr Joseph Pace Mr Chris Degiorgio Mr Robert Tabone Valetta

Chairperson

HealthCare Mr Robert Magri - Chairman Mrs Vanessa Said Salomone Vice Chairperson

Mr Paul Apap Bologna Mr Marcel K. Mifsud Mr David Stellini Ms Johanna Calleja

Chairperson

Mr Joseph Borg Mr Robert Borg Mr Ivan Gerada (co-opted) Mr Nathan Muscat Mr Walter Vigar (co-opted) Mr Robert Tabone Valetta

Mr Jurgen Azzopardi (coopted) Mr Vittorio Giromini Mr Dino Mangion Mr Robert Tabone Valetta Pharmacists Pharmacy Owners Mr Reginald Fava - Chairperson Mrs Marisa Dalli Deputy Chairperson

Mr Anthony Sant-Portanier Prof. Anthony Serracino-Inglott Mrs Eliza Vella Ms Johanna Calleja

Real Estate Mr Ian Casolani - Chairperson Mr Douglas Salt - Deputy Chairperson

Mr Trafford Busuttil Mr Kevin Buttigieg (coopted) Mr Luke Coppini Ms Rachel Bartolo

Shipping and Bunkering Mr Alfred Pace - Chairperson Mr Leslie Brooks - Vice

Tourism Ms Genevieve Abela - Chairperson Mr Ian Fitzpatrick Deputy Chairperson

Mr Ivan Mifsud Mr Robin Oakes Mr Iain Tonna Ms Rachel Bartolo Wines, Spirits, Beverages and Tobacco Ms Christina Busuttil - Chairperson

Remote Gaming Mr George Debrincat Chairperson

Ms Olga Finkel - Deputy Chairperson

Ms Simona Camilleri Mr Anton Dalli Mr James Palmier-Gonzi Ms Rachel Bartolo Road Contractors Mr Vincent Borg - Chairperson Perit David Bonnici - Deputy Chairperson

Mr Mario Agius Mr Joe Vella Ms Rachel Bartolo

Mr Stephen Rausi - Deputy Chairperson

Mr Alexander Arrigo Mr Stephen Ellul Mr Tarcisio Piscopo (coopted) Ms Rachel Bartolo Yachting Services Mr Edward Anthony Woods - Chairperson

Mr Pierre Balzan - Deputy Chairperson

Dr Ann Fenech Mr John Huber Mr Niki Travers Tauss Ms Rachel Bartolo

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Policy Committees Executive Committees Energy and Evironment Perit David Xuereb Chairperson

Mr Godwin C. Micallef - Vice Chairperson

Mr Mark Bajada Ing. Charles Cuschieri Mr Mario Duca Ms Mary Gaerty Mr Adrian Mallia Ing. Mario Schembri Ing. Adrian Vigar Mr Andre Fenech Ms Marilena Gauci Human Resources Ms Catherine Calleja - Chairperson

Mrs Madeleine Camilleri Dacoutros Mrs Antoinette Caruana Ms Teresa Fabri Ms Ruth Farrugia Ms Alexia Frendo Mr Joseph Pace Ms Marilena Gauci Internationalisation Mr Peter Grima - Chairperson Mr Tonio Casapinta Mr Michael Farrugia Mr Karl Aquilina Mr Kevin J. Borg Mr Klaus Pedersen

Marketing Mr Louis Olivieri - Chairperson Ms Anna Agius Mr Charles Mizzi Mr Morgan Parnis Mr Chris Vassallo Cesareo Ms Emma Diacono Mr Kevin J. Borg Ms Diane Seychell RTDI Ing. Roger Galea - Chairperson Prof. Ing. Jonathan C. Borg Prof. Joseph Cilia Dr Jeanine Rizzo Ms Marilena Gauci SME and Family Business Mr Frank V. Farrugia - Chairman Mr Alex Aquilina Mr Tonio Casapinta Mr Joseph Cortis Mr Michael Farrugia Ms Maronna Filletti Mr David Marinelli Mr Peter Sant Mr Chris Vassallo Cesareo Mr Lino Mintoff

Business Council Executive Committees

German-Maltese Business Council Mr Karl Aquilina - Chairperson Ms Audrienne Buedinger Mr Matthias Fauser Mr Michael Farrugia Mr Armin Eckermann Mr Ivan Mifsud Mr Kevin J. Borg Mr Klaus Pedersen

Portuguese-Maltese Business Council Mr Gary Crossan - Chairperson Mr Kevin Busuttil - Deputy Chairperson

Mr Charles Mizzi Mr Chris Naudi Ms Maria Rauch

Scandinavian Business Forum Malta Dr Mark Fenech - Chairperson Middle East Mr Pierre Mifsud Business Council Mr Stefan Magnusson Mr Tonio Casapinta Mr Christer Gustafsson Mr Karl Diacono Chairperson Mr Neville Cutajar Mr Peter Frendo - Vice Mr Klaus Pedersen Chairperson Mr Mark Vassallo Mr Joseph Camilleri Dr Michelle Gialanze Mr Tony Muscat Dr David Zahra Mr Simon Azzopardi Mr Bernhard Meidl Mr Mohammed Hassan Tunisian-Maltese Mr Klaus Pedersen Business Council Ms Lina El-Nahhal Mr Simon Alden - Chairperson Ms Mary Gaerty Mr Mario Duca Mr Kevin Alamango Mr Anthony Farrugia Mr Patrick Spiteri Staines Dr Hugh Peralta Mr Klaus Pedersen

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Malta Chamber Commissions set up by Statute Commercial Agents Commission

Conflicts Resolution Panel

(Statute Art 11.1)

Mr Michael Mallia (Chairperson) Mr David G. Curmi Mr Mario Duca Mr Michael Scerri Mr Joe Pace

Mr Louis A. Cuschieri (Chairperson) Mr Anthony T. Camilleri Mr Josie Ellul Mercer Mr Frank V. Farrugia Mr Charles A. Zahra

(Statute Art 10.1)

Electoral Commission

Ethics & Disciplinary Commission

(Statute Art 6.1)

(Statute Art 8.2)

Mr Josie Ellul-Mercer (Chairperson) Mr Victor Camilleri Mr David Catania Mr Michael Cutugno

Mr Albert P. Mamo (Chairperson) Mr Louis Apap-Bologna Mr Louis A. Farrugia Mr Martin Galea Mr Michael Scerri

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

CONSULTATION

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Malta Council for Economic and Social Development

Over the course of 2013, the Malta Chamber was actively engaged in discussions on the conduct of social dialogue at the national level, in particular with the functioning of the Malta Council for Economic and Social Development (MCESD). It was represented by Malta Chamber President David G. Curmi, Deputy President Anton Borg, Council Member Norman Aquilina and Director General Kevin J. Borg. The principal issues discussed regularly at MCESD throughout the year were education policy, precarious work, access to finance, waste management and the 2013 and 2014 budgets passed in April and November 2013 respectively. As usual the Malta Chamber’s arguments were always backed by thoroughly researched position papers. Restructuring

hroughout the year, the Malta Chamber made several recommendations aimed at strenghtening the consultation process amongst the social partners. To this end, a number of individual meetings with MCESD officials and participated actively in the Restructuring Committee of MCESD which was reconvened in January. On these occasions, the Chamber recommended measures to improve the relevance and autonomy of MCESD and suggested measures to ensure better management of meetings and building of an agenda that addressed, in a holistic manner, the economic and social priorities of the country. The Malta Chamber expressed its views that the MCESD should prioritise Malta’s economic and social challenges appropriately. To this end, it suggested that over the year, the MCESD should discuss such matters as the potential effects of

the international scenario on the Maltese Economy; Regional Aid Intensities; Economic Strategy for 2014-2018; Energy policy beyond 2013; Pension and Health Reform; and Labour Market Competitiveness including COLA, Precarious Work and Family Friendly Measures adopted on a National Scale. All throughout, the Chamber insisted that MCESD is afforded the necessary financial and human resources it required to conduct research and formulate technical reports to complement the discussions. The Malta Chamber consistently opposed the inclusion of further organsiations on the Council unless these were ‘national employers’ or ‘workers’ organizations’ and unless there was consensus amongst the present MCESD Council members. The Chamber believes that increasing the number of members on MCESD would upset the current formula and render meetings even less manageable. meeting with Chinese delegation

ead of Sectors Lino Mintoff and Head of Policy Development Andre Fenech represented the Malta Chamber in a meeting held on 18th April with a delegation from The China Economic and Social Council (CESC) led by Vice Chairman, Gouqin Feng. This encounter, which was also addressed by Minister for Social Dialogue, Consumer Affairs and Social Liberties Helena Dalli, gave the participants the opportunity to share views and experiences on the function and role of the respective Councils. During the meeting, both sides also identified areas of interest on which there could be closer collaboration for mutual benefit. The possibility of foreign direct investment, better accessibility to and from China, campaigns for active employment and Tourism in general were amongst the topics discussed. Early School Leaving Strategy

he Malta Chamber participated in a national consultation meeting on “An Early School Leaving Strategy” held within MCESD on 6th May. The meeting was addressed by the Minister of Education Evarist Bartolo. The Chamber subsequently submitted its formal reaction to the strategic document following Council approval. The Malta Chamber recognized the economic and social challenges posed by the problem of early school leaving and gave its general approval to the strategy. Furthermore, it reiterated its recommendation for extending school hours with a view to enable the provision of a better mix of academic and non-academic activities to enhance the students’ scholastic experience and prevent drop-outs. This would also serve to assist working parents to concentrate on their work. Other Chamber recommendations were in favour of additional resources to follow children in early education (Kindergarten 1 – Year 2) and earlier career guidance.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

JOBS+ launch

ollowing the signing of the JOBS+ document by the social partners at MCESD, the Union Ħaddiema Magħqudin (UĦM) JOBS+ initiative was launched on 2nd May by the Prime Minister. This policy is driven by an Active Labour Market Policy Counselling and Action Committee coordinated by economist Clyde Caruana. The Malta Chamber had already commended this wellresearched policy document and it now looked forward to contribute actively towards its successful implementation through participation in the ALMP Counselling and Action Committee. The Malta Chamber has consistently favoured the Jobs+ document because it identified very closely with many recommendations made. For instance, it agreed with the need for “investing more resources into the skills of the workforce”. At the same time, the Malta Chamber believes that in order to be competitive, the country must ensure that it is efficient all around, and that working practices are aligned to the current needs of business and the economy. The Malta Chamber has always been active in strengthening the links between industry and academia through our participation in various projects aimed at identifying skills gaps, and subsequently providing the necessary educational programmes, thus contributing towards an active labour market policy. Examples of such training include the joint Diploma in Manufacturing Excellence organised with MCAST. The Memorandum of Understanding signed with University in March also provides a framework that promotes collaboration between industry and academia. Consequently, the Chamber was invited to form part of the national Jobs + Committee through Mrs Catherine Calleja, Chairperson on the Chamber’s Human Resources Committee and Kevin J. Borg. Access to Finance

irector General Kevin J. Borg represented the Malta Chamber at a series of MCESD meetings called to discuss the Malta Business Bureau’s (MBB) report on access to finance in May. Besides MBB President George Vella, the meetings were further addressed by Minister Prof Edward Scicluna, Prof Josef Bonnici, Prof Joe Bannister, Prof Joseph Falzon and James Bonello on behalf of the banks. The suggestion of setting up a development bank to work in partnership at commercial banks was repeated at these meetings. The Minister of Finance subsequently set up a workinggroup to study Access to Finance and Mr Borg was nominated as its representative. A report was drafted by the Working Group and this was subsequently discussed and approved at MCESD before being submitted to the Minister.

CONSULTATION

During the Working Group, Mr Borg supported the idea of the setting up of a development bank and said that the Malta Chamber would be eager to contribute to discussions. He also made recommendations aimed at improving the take-up of EU funds by business. He also suggested the idea of Malta linking to the recently established European venture capital funding network to overcome local bottlenecks related to critical mass. Mr Borg also commended Maltese banks that leveraged a European Investment Bank fund to the tune of 580% to provide €51 million in JEREMIE funds as these were all taken up by SMEs. He pointed out that Malta needed to come up with quick alternatives to ensure that investment by SMEs did not experience a sudden drop which could be driven by the unavailability of the advantageous JEREMIE loan conditions to which SMEs had become accustomed. Precarious work

he Malta Chamber also participated actively in the series of MCESD meetings held to discuss precarious work. The Chamber insisted that any measure to address the issue was to be limited to those sectors where the problem seemed to be localized. It criticised a decision to outlaw subcontracting from public tenders because, in the Chamber’s view this was counter-productive to SMEs and their ability to cluster and co-operate in tenders. The Malta Chamber was pleased to note that the regulation in question was subsequently amended to allow the necessary flexibility and in order to allow sub-contracting under clear conditions. During the final MCESD meeting on the subject held in July, the Malta Chamber concluded that, having heard the opinions of all social partners, it was apparent that the different positions were not too far apart and that the basis existed for a way forward. Beyond definitions, it was clear that abusive and illegal practices needed to be addressed via enforcement of regulation using existing structures. On the other hand, dubious employment conditions would require focused, ad hoc, regulation. The discussion at MCESD identified cleaning, security and carers to be the main problem areas in terms of precarious work. In this regard, the Chamber reiterated its stand that the effect of such regulation needed to be directed solely at these sectors and should not encompass the entire labour market. The Chamber recommended that in issuing additional focused regulation, Government should impart a clear message that the scope of additional regulation would be widened to further sectors should the need arise. More importantly, any additional regulation should be made to pass the SME test in terms of Better Regulation. This would ensure that the new regulations would not be detrimental to SMEs and their chances to create growth through clustering and their participation in public procurement opportunities. Indeed, as has already been remarked, sub-contracting, in itself, is not to be considered a mal-practice. Likewise, definite-period contracts of employment are also useful instruments for both employers and employees to approach fixed-term projects. These should not be generally deemed as tantamount to precarious work and should not be placed

CONSULTATION

The malta chamber of commerce, enterprise and industry

under any dubious spotlight unless in cases where there is clear abuse such as in cases where an employer is awarded a three or four-year tender and the same company employs staff on a rolling one-month arrangement or less. The Malta Chamber had already gone on record to state that the issue of precarious work is part of the larger labour market competitiveness picture in which Malta has been scoring consistently low within such measures as the World Economic Forum ranking. Over zealousness in dealing with the matter of precarious work can lead to further slippage down this score which the country can ill-afford. It is vital that social partners come to a reasoned and agreed way forward with Government because unnecessary restrictions to labour market flexibility can be counter-productive to economic expansion particularly in the current circumstances when job creation remains a primary objective. Pre-Budget meetings

he Malta Chamber presented its 2014 pre- Budget proposals to the MCESD during a meeting held on 21st October in the presence of the Minister of Finance Edward Scicluna and the Minister for Social Dialogue, Consumer Affairs and Social Liberties Helena Dalli. The objectives of the Chamber’s proposals for 2014 were two-pronged. They called for increased economic growth through continued enhanced competitiveness and the rationalization of public finances. A number of concrete proposals were made in terms of both overriding objectives. On 1st November, the Malta Chamber was represented at another MCESD meeting to discuss the 2014 Budget in the presence of the Minister of Finance. On this occasion, the Chamber was represented by the President, the Deputy President and the Director General. On presenting the Chamber’s priorities, Malta Chamber President David G. Curmi insisted that the forthcoming budget needed to aim at public finance consolidation and on the enhancement of national competitiveness to facilitate exportled growth. Reference was made to recent negative indicators in export-related data which are reinforced by internal data collected by the Chamber. The need to render operating costs more competitive was made especially in the light of austerity measures that were being taken in other countries to the benefit of their cost-competitiveness. At this meeting, the Chamber continued to insist for clarifications on the indirect tax measures proposed by Government. It continued to claim that due to a lack of enforcement capacity, further increases would continue to create market distortions between Chamber members and operators that imported goods through informal channels.

Annual Administrative Report 2013-2014

Gozo priorities

irector General Kevin J. Borg represented the Malta Chamber at a special MCESD meeting which was convened to discuss the economic and social priorities of Gozo. The meeting was held in December and was addressed by the Minister of Gozo, the Hon Anton Refalo. The focus of the meeting centred on transport and accessibility issues, tourism and the creation of jobs on the sister island. Malta Chamber participates in Citizenship meetings with Government and Opposition In January, representatives of the Malta Chamber participated in meetings of the Malta Council for Social and Economic Development (MCESD) on Citizenship. The first meeting on 7th January with Leader of the Opposition, the Hon. Dr Simon Busuttil was attended by Malta Chamber Deputy President Anton Borg and Director General Kevin J. Borg. The aim of the meeting was for Dr Busuttil to provide a thorough explanation of the Opposition’s objection to the scheme. These were that in his view the Government had failed to address the fundamental objection that citizenship could not be offered for sale and that the scheme had tarnished Malta’s reputation. Another objection dealt with the regulations laid out in the legal notice which the Opposition described as flawed. On 10th January, President David G. Curmi, together with the Deputy President and the Director General attended an MCESD meeting with Prime Minister Dr Joseph Muscat. During the meeting, the Prime Minister clarified aspects of the scheme saying that any Maltese service provider could obtain clearance from Identity Malta to attract clients without the need to go through other parties. He confirmed that there would be a four-tier due diligence process on applicants and this would take a minimum of six months by which time legal notices will have been debated. Another MCESD meeting with the Prime Minister was held on 4th February, after the Individual Investment Programme (IIP) regulations were amended following agreement with the European Commission. Dr Muscat explained that the meeting with the European Commission was a positive one, and that now the next step was to look at the structures which needed to be established so that the Programme would be successful. He referred to the IIP as a programme which will promote investment, and which will continue to safeguard and boost Malta’s competitiveness. The Prime Minister also spoke about the National Fund for Economic and Social Development and expressed his interest in receiving the social partners’ suggestions with regards to its terms of reference. In his intervention, Mr Curmi said that the National Fund for Economic and Social Development should focus on human resources, being the most important resource in Malta. He also said that innovation should be a priority, together with a skilled workforce, and an excellent education system. He concluded that the investment of the funds which will be coming in is highly important because if they are not properly invested, they will ultimately run out.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Malta-EU Steering Action Committee

uring the year under review, the Malta-EU Steering Action Committee met on a regular basis to discuss various issues of importance on an EU level. Representing the Malta Chamber in the MEUSAC Core Group were Council members Claudine Cassar, Chris Vassallo Cesareo and Head of Policy Development Andre Fenech as an alternate member. Amongst the numerous core issues addressed by the MaltaEU Steering & Action Committee throughout the year 2013, the following were raised: • the National Reform Programme 2013; • investment in foreign projects for the production of energy to Malta; • the issue of water scarcity; • increased usage of photovoltaic panels on large scales; • the possibility of government contracts awarded to companies adopting environmentally friendly measures; • the Green Paper of the European Commission Framework Policies Climate & Energy 2013; • Government’s holistic policy in the field of energy for cheaper and cleaner air; • better governance in the areas of pensions and health; • the European Commission’s proposal to update EU rules on the management of air traffic; • the need for Malta to have some control in managing air traffic given its economic impact; • the European Commission Communication – ‘Working Together for Young People of Europe: Call for action on unemployment among youth’; • measures by which young people are incentivised to enter the world of work or further education and training; • supporting job creation and youth employment; • Banking Union in the EU; • the importance of banks to the Maltese economy; • the need for further information and education to consumers and businesses for increased confidence in banks; • the package of legislation on the Single Telecoms Market; • the proposal for a regulation establishing measures to complete the European single market for electronic communications; • harmonisation of prices and practices; • common tariffs for fixed and mobile telephony; • protection of consumer privacy; • the common European policy on security, economic and monetary union, economic and social policy; • report of the Task Force of the Mediterranean and Energy;

CONSULTATION

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Malta Chamber hosts meeting with MEUSAC delegation on Way Forward Deputy President Anton Borg welcomed a MEUSAC delegation to the Chamber on 30th April.

he meeting served to confirm that the current structure and the need for some improvements to renderthe consultation process more effective. He also said that it was important that the entities represented on the MEUSAC core group were prepared to discuss the dossiers on the agenda. Andre Fenech confirmed that a good preparedness by all delegates was of crucial importance as was the need to discuss matters on the European dimension. Both sides agreed that it would be beneficial if Ministers and Parliamentary Secretaries attend the meetings and present the dossiers in similar fashion to what happened at MECSD level, whilst agreeing that the core group needed some changes especially with regards to introducing terms of reference and in the manner that discussions were carried out. This would assist in the process of retreiving important answers to questions made by MEUSAC Core Group members. In relation to EU funding programmes, Dr Xuereb stated that MEUSAC was taking an active role in assisting NGOs and Local Councils in completing application forms for EU projects. Mr Fenech said that companies were facing enormous problems with regards to the training and employment grants administered by ETC, whereas companies which offered training to their staff in 2009 were still awaiting refunds. He continued that the level of bureaucracy that existed within PPCD and other bodies which manage EU funds needed to be reduced. This was not conducive to the proper absorption within the economy of these important funds. For this reason, the EU commission was reporting that Malta had one of the lowest absorption rates of EU funding amongst all Member States. Deputy President Mr Borg also insisted that there have been long delays in relation to the ERDF grants administered by Malta Enterprise. It was agreed that there were too many levels of auditing and this was creating delays in disbursement. He insisted that the new administration promised a 25 per cent reduction in administrative burdens and this bode well once the new programming period started being operational. The Deputy President also made a specific request to have the direct representation of the Malta Business Bureau on the core group, explaining that this would help the group focus further on EU related issues. He also said it was important that rapporteurs for the sectoral committees were nominated so that they could report to the core group of their activities. He also added that the lack of focus at core group level could be mitigated if entities were allowed to send technical representatives depending on the matter being discussed. He also suggested that each organisation should have one spokesperson so that there was less repetition of the same arguments and meetings were not protracted unnecessarily. Mr Xuereb thanked the Malta Chamber for its constructive criticism and said that they would take note of the comments made. The Malta Chamber delegation was also presented with copies of the MEUSAC annual report.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

he Malta Chamber believes English as a business language is an important element for the Maltese economy, giving the Maltese community a competitive edge in numerous sectors. English is spoken, to a greater or lesser extent, by almost the entire population. Besides supporting tourism, English language proficiency assists the country in attracting foreign direct investment and establishing itself as a centre for international business. Businesses that require client-facing employees to be proficient in the English language are increasingly requiring potential applicants to submit an IELTS test report form as part of the recruitment process. This will confirm their ability to communicate in English across all four language skills â&#x20AC;&#x201C; listening, reading, writing and speaking. Many students travel to Malta to study the English language, they practise their skills within the community and assess their proficiency by attaining an IELTS qualification. Proficiency in English is a pre-requisite for individuals who would like to immigrate, seek higher education, attain professional registration or secure miscellaneous employment opportunities. The Malta Chamber is the only official testing centre in Malta for IELTS. In 2013, IELTS Malta provided testing to 807 candidates and will continue to provide the secure and customer-focused test in the future. The Malta Chamber has experienced a substantial growth of candidate numbers. Last year we offered 15 IELTS test sessions. Candidate projections for 2013 were achieved with a surplus growth of 30 per cent. Additional information pertaining to the IELTS test can be sourced at www. maltachamber.org.mt/ielts

Surveys

The Malta Chamberâ&#x20AC;&#x2122;s Survey Work

n 2013, the Malta Chamber continued its work on the Business Confidence Surveys (BCS), in collaboration with PricewaterhouseCoopers. The survey enjoys a significant response rate, with around 600 participants each month from across the whole spectrum of the economy, including Manufacturing, Services, Retail and Construction. The BCS serve the scope of providing an instant measure of business operatorsâ&#x20AC;&#x2122; confidence levels and their short term future expectations. Locally, the survey data is very important for the Malta Chamber to compliment economic analysis and surveillance, and a valuable tool for assessment of economic policy needs and outcomes. The Central Bank of Malta is also a regular user of data for qualitative and quantitative analysis. The data collated by the Malta Chamber also feeds the Joint Harmonised EU Programme of Business and Consumer Surveys (BCS) of the European Commission, which in turn produces a cross-country comparison, and aggregated EU-wide sentiment indicators. In 2013, the Malta Chamber also started the process towards providing digests of the survey results to its participants on a quarterly basis. For the purpose of assuring relevance and ease of understanding, feedback was received from participants by circulating a pilot review for the second quarter of 2013 to a small group from the Services Survey, and a pilot review for the third quarter to a representative group from all of the four survey groups. Participants had the possibility of providing comments and suggestions through an online feedback form.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Administration Staff In March, the Malta Chamber completed its staff restructuring programme when Lino Mintoff joined the Malta Chamber as Head of Sectors. In June, Executive Marilena Gauci replaced Marylyn Hili within the Policy Department. Jeanelle Brincat resigned from her post with the Malta Chamber Foundation in September. Maintenance Following the cleaning and restoration of the Malta Chamberâ&#x20AC;&#x2122;s faĂ§ade in 2012, the project continued in the Malta courtyard and upper floors. Maintenance work in the building is carried out on a continuous basis.

ISO 9001:2008

n December, the Malta Competition and Consumer Affairs Authority re-certified The Malta Chamber of Commerce, Enterprise and Industry to comply with the requirements of MSA ISO 9001:2008. The Malta Chamber was originally certified to comply with the standard in December 2010. The scope of the Malta Chamber Quality Management System (QMS) is to support, safeguard and promote the interests of members and influence the formation of policy at National and European level. The QMS is designed to provide documented procedures and a control mechanism to assure the quality of its service, provide controls for the prevention of non-conformities, and assure consistent delivery. The Malta Chamber monitors the effectiveness of its QMS, and its compliance with the requirements of the standard, through regular Internal Audits and Management Review Meetings. However, this year a great deal of work also went into further development, where the need was felt to enhance the service provision of the Malta Chamber to its clients. In fact the Malta Chamber updated its Quality Manual, 35 procedures, 14 processes, 2 policies, 19 forms (and introduced 3 new ones), and 5 work instructions (and introduced 3 new ones).

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Malta Chamber Foundation During the year under review, the Malta Chamber Foundation was chaired by Helga Ellul, and the Board Members were Perit David Xuereb and Frank V. Farrugia.

ollowing the resignations of Mrs Ellul and Perit Xuereb, Norman Aquilina and Michael Scerri were nominated on behalf of their respective Economic Groups. Mr Frank V. Farrugia was elected Chairman of the Foundation after Mrs Ellul. The Foundation underwent further consolidation and a decision was taken to focus more on tapping EU funding opportunities. The Foundation finalised the work which had been undertaken the previous year to finalise a Memorandum of Understanding (MoU) with the University, concluded the work on the Build-Up Skills Project, and assisted the Internationalisation Desk and the Electrical and Electronics Manufacturers Business Section in providing specific courses.

and provide a common framework for all future initiatives. Examples of such initiatives included the provision of input to new and existing courses offered by the University as well as identifying experts from the business community or academia for their involvement in different projects. Importantly, the MoU also made reference to the setting up of frameworks for the provision of internships to University students. The MoU encourages the Malta Chamber and the different faculties to collaborate and ensure that opportunities for work experience are provided during the students’ studies and that this is academically recognised. It was also noted that the signed Memorandum also provided the opportunity for the University and the Malta Chamber to join forces in developing policy and putting forward recommendations to policy-makers. It was in the interest of both institutions to take a common and firm stand on issues of strategic importance, since the sustainability of the economy and the relevance of academic preparation were closely related. This mutually reinforcing relationship between industry and academia needed to be continuously enhanced. Internationalisation Course

Signing of Memorandum of Understanding between the University of Malta and the Malta Chamber Foundation

press conference was held on the 27th March, witnessing the signing of an MoU between the Malta Chamber Foundation and the University of Malta. The signing of the agreement is intended to provide a framework for collaborative research, educational programmes, business initiatives and pooling of resources and expert support for the implementation of identified initiatives. Then Malta Chamber Foundation Chairman Helga Ellul explained that the MoU was the result of a joint working group between the University and the Malta Chamber. The aim of this agreement was to recognise the ongoing relationship between University and the Malta Chamber,

uring the month of May, the Malta Chamber Foundation in collaboration with the Internationsalisation Desk of the Malta Chamber organised a course entitled “Aspects of Internationalisation – Strategic and Practical Considerations for SME’s Going International”. The course was delivered by Internationalisation Manager Klaus Pedersen and various guest lecturers were invited to share their expertise in every course session. The training programme aimed to give business owners, managers and key personnel a perspective on the subject of internationalisation, enabling them to better plan the company’s internationalisation efforts. The course also provided insight into key strategic considerations. Participants hailed from various sectors including manufacturing, IT, financial services and the creative sector. In view of this, Mr Pedersen conducted one-to-one meetings before the course in order to better understand each applicant’s business interests as well as to evaluate the application of the course content to each participant’s company.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

The course dealt with various aspects of the internationalisation process such as export, import, outsourcing, foreign investment and other forms of international exchanges. The subject of internationalisation was discussed both from a theoretical and a practical point of view. On the theoretical side, academic internationalisation-theory was described and discussed and generic business analysis tools were applied to analyse a firm’s internationalisation process. From a practical point of view, subjects such as preparedness for internationalisation, terms of payment, trade terms, intercultural dimensions and the use of the internet in internationalisation were explored. BUILD UP Skills Malta project

uring the year under review, the BUILD UP Skills Malta project, in which the Foundation was a partner, was brought to a close. The project, which commenced in July 2012, had the aim of identifying and eventually bridge any skill gaps identified which exist among tradesmen within the local construction industry. The project included another three partners besides the Malta Chamber Foundation namely the Building Industry Consultative Council (BICC) which was acting as the lead partner, the Malta College of Arts, Science & Technology (MCAST) and the Malta Intelligent Energy Management Agency (MIEMA). The Malta Chamber Foundation was entrusted with the preparation of a National Status Quo Report. The aim of the report was to map the vocational education and training (VET) provisions available locally as well as the skill gaps in the workforce for the green construction industry. Furthermore, the strategies to increase awareness of the cost benefits and investment in renewable energy sources and energy efficient practices have been analysed. The report was based on the collection of primary data which consisted of interviews with a variety of industry professionals. The results have shown a lack of data about the green construction industry and low levels of awareness about RES and EE systems and the advantages of their use. The report also showed the lack of enforcement of existing legislation, particularly the Energy Performance Certificate (EPC) system. If enforced accordingly, this system could have a pronounced positive impact on the industry. Increases in both employment and economic activity would take place, together with a reduction in the energy demand of buildings.

Corporate Social Responsibility Project Malta Chamber and Bank of Valletta launch CSR toolkit

he Malta Chamber, in collaboration with Bank of Valletta launched a Corporate Social Responsibility (CSR) toolkit and report. This formed part of a joint project which specifically addressed the benefits of introducing CSR practices within a

company’s operations. This event, held in January 2014, was addressed by Malta Chamber President David G. Curmi and Chief Officer Operations at Bank of Valletta Michael Galea. The project aimed at mapping out the conduct and development of CSR initiatives by Maltese companies, giving additional promotion to the concept of responsible entrepreneurship amongst the business community and maximising the benefits of CSR to both business and society at large. This was done through a profiling exercise of the business community which concluded that 88 per cent of companies surveyed were engaged in CSR-related activities. This survey also showed that only 55 per cent of companies communicate their CSR activities to their stakeholders. It was also shown that notwithstanding the fact that larger sized enterprises tend to have a more structured CSR policy, small enterprises also have a strong impact on their immediate community and surroundings. It was clear that CSR could and should be the remit of all enterprises. In his address, Mr Curmi, said that the Malta Chamber believes that the companies that perform best over time are those that build a social purpose into their operations that is as important as their economic purpose. “As we all know, in business earning respect is more difficult than earning money. Through this initiative we have shown clearly that it is possible for a business to make a profit and benefit the community at the same time.” Speaking at the event, Mr Galea, said “since launching the CSR programme at Bank of Valletta, it has become more and more difficult to extract CSR-driven initiatives from the dayto-day running of the organisation. I believe that to a great extent, this is a measure of our success because ultimately CSR is not a plug-in formula but a frame of mind that needs to infiltrate into the very fibre of the organisation. It is our way of dealing with the different stakeholder groups and being active responsible citizens. We trust that this toolkit will serve as a stepping stone for our business customers and other companies in the local market to embark on this journey.” The two organisations augured that the launch of this CSR toolkit would urge more companies to actively consider committing themselves to managing their business responsibly.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Public Relations Print Interview with Business Herald

Speaking about the second pillar, Mr Borg said that as this was an obligatory system, it could have serious social and economic implications. Because of this, the Malta Chamber had stated that currently it was not in a position to consider this option, and it would only be in a position to look at this pillar if the details about how it could be incorporated in Malta are known. Regarding the current Pay-As-You-Go System, Mr Borg commented that there is limited space where to manoeuvre and one has to appreciate that a number of measures have already been taken such as a raise in pensionable age to 65 years, a raise in the rates of contributions for both employees and employers, a raise in the ceiling of pensionable income. The Malta Chamber insisted that it was vital that Government’s plans in this regard had to be clear and published from beforehand, so that companies can plan accordingly. Interview on Malta’s economic success with BBC World Service

irector General Kevin J. Borg and Middle East Business Council Chairman Tonio Casapinta were interviewed by the Libya Herald’s Editor in Chief Michel Cousins and Deputy Editor Nel Ash. The Herald is an independent, Englishlanguage newspaper based in Tripoli which was launched in February 2012. The interview was scheduled to appear in the bi-monthly sister publication called Libya Herald Business Eye. The Malta Chamber representatives discussed the manner in which the Malta Chamber intervened and continues to intervene on behalf of its members which deal principally with the Libyan market. Ample reference was made to the work of the Malta Chamber’s Internationalisation Desk and the Libyan Maltese Chamber of Commerce. Mr Cousins underlined the immense economic potential lying in Libya for Maltese entrepreneurs particularly in service industries and in English language teaching.

Radio Pension Reform on RTK

irector General Kevin J. Borg was interviewed by RTK about the Malta Chamber’s position on the pension reform on 4th March. His comments were aired on “IlQanpiena l-Oħra”, a programme moderated by Vanessa Macdonald. Mr Borg said that our current pension system was not sustainable and emphasised that the solution lay in continued economic growth and in the development of a third pensions pillar, which consisted of private pensions schemes, entered into on a purely voluntary basis and in addition to the already existing schemes. He went on to say that these schemes were positive not only because they increase people’s incomes after they had retired, but also because they decreased the financial burden on our social security system and encourage people to save more.

alta Chamber President David G. Curmi was interviewed by BBC World Service reporter Ben Lowings on April 23rd. Mr Lowings travelled specifically to Malta to assess the island’s economic situation. Mr Curmi explained that the secret of Malta’s economic success lay in its diversified economy – encompassing tourism, manufacturing and services. Economic progress had been the result of other critical success factors such as EU membership, economic and political stability, competitive labour costs, good quality of life, an English-speaking workforce and geographic and cultural proximity to the lucrative North African markets. Above all, the President underlined the importance of the country’s robust legal and regulatory framework which was based on EU directives whilst at the same time was business friendly and industry-oriented. Malta’s economic success is confirmed by resilient economic indicators especially in terms of unemployment figures, exports and GDP growth. Public finances were also in check with the deficit/GDP ratio expected to stand at around 2.7 per cent by the end of 2013. The country’s public debt is largely held by local investors of which 29 per cent are individuals and 68 per cent are corporates. This differed significantly from the situation in other Member States. It was further noted that Malta’s economic performance was driven by net exports – which grew at a faster pace than imports – as well as by government consumption. Service

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

exports were boosted mainly by tourism, financial services, cultural and recreational activities. Malta was rated by Fitch, Moody’s and Standard & Poor’s as A+, A3 and BBB+ respectively. Mr Curmi explained to the BBC that Malta had prevailed during the euro crisis because its deficit/GDP ratio was moving in the right direction while its banking sector followed a conservative and prudent approach. An objective analysis of Maltese banks required a segmentation of the sector into “core domestic” banks, “noncore domestic” banks and “international” banks. The core sector accounted for around 223 per cent of GDP, which was half the EU average. Customer loan-to-deposit ratio of the core banks hovered at around 71 per cent. Core banks relied on traditional sources of funds specifically domestic retail deposits. Maltese core banks’ prudent approach to maintain a healthy balance sheet and robust capitalisation meant that they were spared the worst effect of the international financial crisis. The remainder of the sector, which amounts to six times the GDP, was made up of non-core domestic banks and international banks. The majority of these banks were subsidiaries of EU banks that offered a range of services that included trade finance, investment banking and group funding operations. Their contribution to the Maltese economy was marginal because the bulk of their business was situated overseas. Unlike the core domestic banks, in no way could they be considered to be ‘intertwined’ with the Maltese economy. Although the gross value added from the financial services sector doubled from 4.55 per cent in 2008 to 8.11 per cent in 2012, there were a number of other contributing factors to Malta’s success. A true picture of the Maltese economy could not attribute recent success solely to the financial services and shipping industries. Mr Curmi concluded by saying that Malta had used its small size to its advantage throughout the 2008 international financial crisis and again during the Libya Crisis. In fact, the Malta Chamber and other stakeholders teamed up to proactively identify which companies were in most dire need for assistance. The same stakeholders teamed up to organise temporary support measures which served to save around 5,000 jobs. RTK COLA Discussion

evin J. Borg participated in a live radio discussion on the COLA system and the changes required. The Director General debated the subject with representatives of the General Workers Union, Union Ħaddiema Magħqudin and Malta Employers’ Association on a programme called “Drittijiet U Dmirijiet” aired on RTK on 18th October. Mr Borg discussed the COLA system within the context of rising labour and other costs affecting Malta’s competitiveness. He listed the faults of the current system which he described as basic and inflexible and outlined the necessary changes which the Malta Chamber has been advocating to the system for several years. These included the inclusion of a measure of productivity in the formula to render the system more sustainable.

Radio Discussion on Competitiveness

r Borg also participated in a live RTK discussion programme on 31st January. The topic of the discussion was competitiveness. It was presented by Cynthia Zerafa and included the participation of the Malta Employers’ Association. During the programme, Mr Borg explained that competitiveness, in turn, is a function of costs as well as other factors that provide an edge over others, principal amongst which are Quality; Research, Technology, Development and Technology (RTDI); Skills availability; Flexibility of the Workforce; Access to Finance, and Capital/Infrastructural Endowment. The Cost component of competitiveness may be further divided into all components of labour costs such as pensions, COLA and family friendly measures and non-labour costs such as utility rates, transport, interest rates, fuel prices and rents. He explained that statistics were showing a deterioration in Malta’s cost-competitiveness and that this needed to be addressed. The economic, financial and social environments that Malta operated in were very different from those that were in place only five years ago. Several competing nations that had experienced more devastating effects were emerging into the post-crisis world economy stronger and far more competitive. He said that Malta was placed at a natural disadvantage because it was a small, peripheral island state. Reacting to numerous phone calls during the programme, Mr Borg explained that ensuring Malta’s competitiveness did not necessarily have to come about at the cost of the worker. He said the country could address the situation by enhancing skills, by investing in technology and through increased efforts in research and innovation. On the costs side, competitiveness could be assisted through the lowering of energy rates and other costs. Participation in RTK Programme – “ Dmirijiet u Drittijiet” - SMEs

ead of Sectors, Mr Lino MIntoff represented the Malta Chamber in a live radio programme “Dmirijiet u Drittijiet” on RTK which discussed the significance of SMEs in line with the rights and duties of employees. The discussion focused on the importance of SMEs in the creation of jobs and economic growth and the impact on employees of the changing economic environment in which SMEs and micro-enterprises are operating in. There was common agreement on the importance of the role of SMEs and, more so, of micro–enterprises in our economy and that they should be supported to develop further their organisational skills to tap the EU Single Market opportunities.

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The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Television Malta Chamber on TVAM

n October and November, the President and Deputy President participated in two TVAM programmes. On 25th October, Deputy President Anton Borg participated in a discussion on energy rates. Mr Borg highlighted the fact that Malta was the EU member state with the highest commercial electricity rates and had only been recently surpassed by Cyprus. He said that this was impinging very negatively on Malta’s competitiveness especially for companies which had high electricity intensive operations such as manufacturing. It was encouraging to note that Government was considering a lowering in the tariffs in 2015 but Malta’s competitiveness position required that the lowering be more substantial and implemented earlier than the stipulated date. Mr Borg mentioned some practical solutions which the Chamber had been consistently proposing to this and the previous government. The proposals involved the introduction of night tariffs and bulk dis-counts which would be justified by lower distribution costs. President David G. Curmi participated in a discussion on the Budget on 1st November. The panel included Toni Zarb from GWU, Paul Abela from GRTU and Josef Vella from UĦM. Mr Curmi said that the Malta Chamber’s Budget proposals were based on two objectives, being sustainable public finances and economic growth for which continued increased competitiveness was essential. He said that the Malta Chamber believed that public finances should be addressed by reducing waste in resources, the introduction of good efficient structures within Government operations and for abuse in social benefits to be tackled. On the possibility of an increase in indirect taxes, Mr Curmi said that the Malta Chamber would expect better enforcement and that Government should be clear about its intentions to ensure that there is no unfair competition from operators who evaded tax. The President spoke in favour of the introduction of the third pillar voluntary pension schemes. Mr Curmi said that the Malta Chamber was firm in its belief that wealth should be created before it could be distributed. Competitiveness Concerns on NET TV

evin J. Borg gave a brief interview to NET TV in which he aired the Malta Chamber’s concerns with respect to the declines registered in the official statistics pertaining to Industrial Production. The Director General explained that the trend in these statistics was being carefully followed by the Malta Chamber and analysed against qualitative data collected internally through surveys. He confirmed that the trend in official statistics was instable and of concern and stated that this matched the information collected by the Malta Chamber. He said that order books for local manufacturing plants were

generally lower, compared to previous periods, due to the fact that orders were going to countries and regions which were becoming more competitive compared to Malta. Mr Borg appealed to the authorities and stakeholders to take heed of these signs and take the necessary corrective action in the interest of jobs and growth in the country. Interview by PBS on Employment

irector General Mr Kevin J. Borg was interviewed by Mr Sergio Mallia for the PBS programme Focus. In the course of the interview Mr Borg said that job creation was the greatest challenge for any economy. Competitiveness was essential for the generation of employment and was being eroded by expenses which were rising faster than production. He spoke about the importance of an environment which encouraged investment and production costs which compared well with other countries. In particular Mr Borg referred to electricity rates which did not compare favourable to the rates in other European countries and much less so with the rates paid in the United States of America. Last year the Malta Chamber presented Government with a study proposing significant reductions in local energy rates and explaining that in order to protect employment Malta needed to export and that competitiveness was crucial in order to be able to export. Other threats to competitiveness were transport costs which were substantial especially when considering that raw material had to be imported for manufacture and a final product exported. Another threat was posed by changes to EU Regional Aid Intensity Guidelines limiting assistance to investors in large manufacturing concerns, the consequences of which could seriously affect investment in manufacture. Mr Borg also spoke about the skills mismatch which on the other hand was limiting employment creation opportunities in another manner. This required focused educational measures. The Malta Chamber was in favour of any initiative which brought academia and business closer ensuring that school leavers and graduates had the right qualifications and skills. He said that the Malta Chamber was in favour of the Employability Index which Government planned to introduce indicating the possibilities for work according to different courses of study. Interview for dot.eu

irector General, Mr Kevin J. Borg was interviewed by Mr Keith Demicoli for the PBS television programme dot.eu. The interview took place after a recent MCESD meeting with MEPs in which Mr Borg had participated. Mr Borg said that competitiveness was the collective responsibility of all social partners. He said that private sector organisations needed to ensure that businesses were efficient and innovative, unions had to make sure that workers had the right skills and that these were continuously upgraded whilst Government and the European Union needed to enact laws which were conducive to the creation of jobs and growth. A full list of media releases can be found on the following page.

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Media Releases Date

Description

2013 03 04

Malta Chamber disagrees with the recent statements on rent law

2013 03 13

Malta Chamber congratulates Joseph Muscat and calls for resumption of MCESD

2013 03 26

AGM 2013: A new economic vision for Malta required

2013 03 27

Signing of Memorandum of Understanding between the Malta Chamber Foundation and the University of Malta

2013 04 05

David G. Curmi elected Malta Chamber President

2013 04 08

2013 Budget: Maintaining constant direction

2013 05 24

Successful internationalisation course organised by the Malta Chamber

2013 05 27

Malta Chamber – Eco-contribution should be abolished

2013 05 29

Malta Chamber greets commitment by EU states to tackle high energy prices

2013 06 01

Malta Chamber welcomes the re-instatement of the Permanent Residence Scheme

2013 06 06

Human resources and company clustering crucial to prosperous financial services sector

2013 06 17

Malta Chamber ICT Business Section presents key recommendations to Parliamentary Secretary Edward Zammit Lewis

2013 06 25

Malta Motorways of the Sea renews agreement with Malta Chamber

2013 06 26

The Farsons Modern Art Collection at the Malta Chamber - Promoting links between commerce and art

2013 06 27

Malta Chamber wins first prize for National Enterprise Support for second consecutive year

2013 07 05

New tender regulations are ill-timed and detrimental to SMEs

2013 07 09

A message for growth to the Prime Minister

2013 09 11

Electricity agreement is encouraging for business

2013 10 01

Vodafone renews agreement with Malta Chamber

2013 10 10

Middle East Business Council launched at SmartCity Malta

2013 10 11

Middle East Business Council pays courtesy call on the President of Malta H.E. Dr George Abela

2013 10 14

Business is the solution - “Lessons from the economic crisis: An employer’s perspective”

2013 10 15

Malta Chamber urges political consensus on health sector reform

2013 10 16

Middle East Business Council welcomes statement by the Prime Minister

2013 10 23

Mr John Huber elected on Eurochambres’ Budgetary Committee during the 114th Plenary Assembly held in Istanbul

2013 10 24

Uncertainty over proposed Budget measures must be immediately addressed

2013 11 01

National Conference marking the launch of the EY “Malta Attractiveness Report”

2013 11 04

Preliminary reaction to the 2014 Budget speech

2013 11 06

Higher excise taxes require fair and effective enforcement

2013 11 11

The Malta Electronic Communications Providers Task Group launched within the Malta Chamber of Commerce, Enterprise and Industry

2013 11 12

The Malta Chamber urges political consensus on Individual Investor Programme

2013 12 10

La Borsa – The People, The Building, The History

2013 12 12

Bank of Valletta renews gold support agreement with the Malta Chamber

2013 12 20

LA BORSA – Oozing with nostalgia

2014 01 08

No short-cut solutions to address poverty – Malta Chamber

2014 01 10

A proposal that institutionalises an injustice against employers – Malta Chamber

2014 01 17

Bold decisions in healthcare - now or never

2014 01 27

Bank of Valletta and Malta Chamber launch CSR toolkit

2014 02 07

LA BORSA – The People, The Building, The History - Commerce and art working hand-in-hand

2014 02 19

Launch of Maltese-Portuguese Business Council

2014 02 20

Malta Chamber commends decisive action and calls for urgent additional measures

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usinessEurope (formerly known as UNICE) is the leading business lobby group in Europe. It represents all-sized enterprises in 35 European countries and its direct members are the national business federations in each of those States. It plays an influential role as the main business voice in Brussels. BusinessEurope is recognised as an official social partner at European level, giving it a strong institutional role. The group is involved in a wide range of economic and social decisions and cooperates with a large number of stakeholders and business partners. It actively promotes and defends the interests of corporate citizens to ensure that public policy supports a thriving European economy. This year, Emma Marcegaglia, former President of Confindustria, was elected as new BUSINESSEUROPE President. The current Director General is Mr Markus J Beyrer. The Malta Chamber’s was active in BusinessEurope on a number of fronts not least in the Council of Presidents meetings, Executive Committee meetings, BusinessEurope Day and in the organisation’s involvement in a conference held in Malta in connection with the forthcoming European Parliament elections.

Council of Presidents (COPRES) Meetings

he President and Director General participated in both COPRES meetings held during 2013 in Dublin (June) and Vilnius (December). The Dublin meeting was addressed by the Irish Prime Minister Enda Kenny, who outlined the Irish experience of dealing with the financial crisis and the prospects for his country in the coming years following crucial decisions and measures taken by his government. The main item for discussion was the EU’s 2030 Energy and Climate Policy within the framework of Europe’s economic competitiveness in respect of other regions and trading blocs. The meeting unanimously called for Europe to place costcompetitiveness, security of supply and climate objectives on an equal footing within its new policy. The meeting further agreed to: • Restore a better balance between environment/ climate and competitiveness and security of supply objectives for EU policy. • Establish a single CO2 target linked to a global level playing field to address EU climate policy inconsistencies that contributed to higher energy prices in Europe. • Phase out support for the deployment of renewable energy. • Improve energy policy coordination between Member States to build a competitive single market for energy in Europe. • Strengthen energy security by developing indigenous European supplies such as shale gas.

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On this occasion, Malta Chamber President David G. Curmi made an intervention to state that, in Malta, energy has been singled out as an important component of national competitiveness, particularly in terms of energy-intensive sectors such as manufacturing, tourism and retail. The most important factors for business remain security of supply, costeffectiveness and sustainability. The Malta Chamber therefore supported the objectives of the BE position paper on the EU 2030 Climate and Energy project. Mr Curmi said that the situation locally was further aggravated by the fact that the possibilities for using renewables were limited by the fact that hydro-energy was not an option; there were space limitations in the use of solar; and windenergy was not considered advantageous because of the need to go offshore involving expensive technology which remained largely experimental. The Malta Chamber shall continue to try its best endeavours to ensure that the country reaps full benefit from its possibilities. He said his organisation was taking the subject very seriously and was working closely with the newly-elected Minister for Energy and Water Conservation who kindly agreed to address members on the country’s energy policy. In Vilnius, the Heads of Delegation held an exchange of views with President of the Republic of Lithuania H.E. Dalia Grybauskaite and with Lithuanian Minister of Finance Rimantas Šadžius. The main item for discussion at this meeting was, however, BusinessEurope’s Industrial Policy document. This was presented for discussion and approval. The Industrial Policy makes policy recommendations which relate to addressing seven fundamentals which would enable the EU (and the individual member states) to raise the share of manufacturing in the economy to 20%. These fundamentals include strengthening competitiveness in energy and climate policy; opening foreign markets and unleashing the potential of the Single Market; promoting co-operation for innovation; expanding trans-European infrastructure; improving access to finance; making labour markets more dynamic, strengthening flexicurity and productivity; and making education and skills fit for industry. On this occasion, Mr Curmi intervened on the need for Europe to embrace better complementarity for industrial development between member states. Mr Curmi discussed the need to resolve inconsistencies within EU competition regulation as well as to avoid “one size-fits-all” approaches both of which are detrimental to small states on the geographical periphery of Europe. The intervention was followed up with urgent correspondence addressed to the BusinessEurope Director General as well as with an urgent meeting with the drafter of the report.

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The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Executive Committee (EXCO) Meetings

BusinessEurope Day Industry Matters

eputy President Anton Borg travelled to Brussels on 28th January for the first BusinessEurope Day where the Industrial Compact was presented to European Presidents Barroso and Schultz besides other dignitaries. On this occasion, Mr Borg was accompanied by Kevin J. Borg and Lino Mintoff. Amongst others, the high-level event was also addressed by: • José Manuel Barroso, President of the EU Commission • Martin Schulz, President of the European Parliament • Antonis Samaras, Prime Minister of Greece and President of European Council • Antonio Tajani, Vice-President, EU Commission • Günther Oettinger, Commissioner for Energy • Karel De Gucht, Commissioner for Trade • Sir Michael Rake, President CBI, Chairman of BT Group plc., Deputy Chairman of Barclays PLC • Fulvio Conti, CEO Enel • Ingo Kramer, President BDA • Ulrich Grillo, President BDI • John Kennedy, President IBEC • Pierre Gattaz, President Medef • Henryka Bochniarz, President Lewiatan • Margret Suckale, Industrial Relations Director BASF • Theo Henrar, CEO Tata Steel, Netherlands • Pierre Alain de Smedt, President FEB • Jose Vicente Gonzales, President & DG of GH Group Electrotermia • Peter Chase, VP US Chamber of Commerce In a brief intervention, the Malta Chamber Deputy President remarked that the BusinessEurope position on the European Industrial Compact was clear, decisive and well-timed. The Malta Chamber supported the view that production in Europe has increasingly involved value chains stretching across countries, with each country specialising in one or several stages. In this regard, he recommended that Europe needed to ensure that peripheral regions and States were given a fair opportunity to make their contribution to European industry. This could be achieved through the adoption of the principle of common but differentiated responsibilities rather than the easy “one-size-fits-all” approach.

Kevin J. Borg attended two EXCO meetings held in Brussels in May and October. The Executive Committee is composed of Director Generals of national organisations represented by Business Europe. It meets twice annually to discuss the current developments in EU policy as well as the economic situation across EU member states. In May, Mr Borg highlighted Malta’s relative economic resilience. He said that Standard and Poor’s, Fitch, the European Commission and the International Monetary Fund had all given a clean bill of health to the local financial services sector and the economy in general. He presented Malta’s key economic indicators and underlined that Malta’s strength lies in its economic diversification across key pillars such as manufacturing, tourism, financial and other services. He also spoke about the Malta Chamber’s role in influencing the National Reform and Stability and Convergence Programmes citing age-related expenditure, rising public debt and wage indexation amongst the prime areas of interest for the European Commission. The highlight of the October meeting was an exchange of views on the Digital Economy with Vice President of the European Commission and Commissioner responsible for the Digital Agenda, Neelie Kroes. The discussion centred on Europe’s digital agenda as a means to promote growth and jobs through innovation and improved competitiveness in this area through stable, high-speed connectivity. Emphasis was made by the Commissioner on the enhancement of co-operation between operators and better functioning of transparent markets.

BusinessEurope present at “We’re in business together” manifesto launch

usinessEurope was represented by Senior Policy Adviser Christian Feustel in the Business Manifesto launch held in Malta in February 2014, in connection with the forthcoming European Parliament elections. On the initiative of the European Parliament Information Office, the Malta Chamber, together with other Maltese business organisations launched a joint document to highlight the private sector’s priorities and expectations for the May 2014 elections. The need for better dialogue to enhance competitiveness stood out as a recurring theme. Mr Feustel spoke about the relevance of the 2014 European elections to business. He added that considering that the choice of the President of the European Commission will be based on the results of these elections, it was in the interest of all sectors to ensure proper representation.

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The malta chamber of commerce, enterprise and industry

EUROCHAMBRES

reated in 1958, EUROCHAMBRES is the European Association of Chambers of Commerce and Industry, and forms one of the key pillars of business representation to the European institutions. EUROCHAMBRES voices the interest of over 19 million member enterprises in 45 European countries through a network of 2000 regional and local Chambers represented by 45 national and one transnational organisation. The Malta Chamber has been a member of EUROCHAMBRES since 2004, having been an associate between 1989 and 2004.

John Huber re-elected EUROCHAMBRES’ Director as well as Member to the Strategic and Budgetary Committees Malta Chamber Council member John A. Huber was reelected as a Director on the EUROCHAMBRES Board. Furthermore, he was also elected to sit on the Eurochambres Budgetary and Strategic committees. These elections took place during the 114th Plenary Assembly. The main role of the budgetary committee is to oversee the organisation’s overall finances and present them during plenary assemblies in which all the European Chambers are represented. The Strategic Committee, on the other hand, is responsible for the formulation of the strategic direction of the organisation. It prioritises on the main areas of future activity for Eurochambres. 114th EUROCHAMBRES Plenary Assembly - Istanbul

ead of Policy Development, Andre Fenech and Malta Business Bureau Permanent Delegate in Brussels Omar Cutajar represented the Malta Chamber at the EUROCHAMBRES’ 114th plenary assembly in Istanbul on the 17th October. This forum was an opportunity to meet and discuss bilateral cooperation with the other 46 delegations. During the assembly, representatives of the various national delegations elected a new President for Eurochambres. President of the Saarland Chamber of Commerce in Germany Richard Weber

Annual Administrative Report 2013-2014

was elected with an overwhelming majority. The plenary assembly also elected three new Deputy and four new Vice Presidents. Mr Weber stated that during his mandate he will be positioning EUROCHAMBRES as a main European partners on such areas as SME representation, innovation, education and training and intensify collaboration with other main European stakeholders. EUROCHAMBRES Economic Survey 2013-2014

he Malta Chamber of Commerce, Enterprise and Industry participated in the annual Economic Survey on Business Expectations and Performance in the Maltese Islands for the 14th consecutive year. The survey is part of a pan-European exercise co-ordinated by EUROCHAMBRES. The EUROCHAMBRES Economic Survey (EES) is the largest European qualitative survey of business expectations. Its annual survey is conducted across the whole of Europe and gathers the expectations of approximately 53,000 businesses on six economic indicators: business confidence, total turnover, domestic sales, export sales, employment and investment. The business sentiment emerging from the survey is overall positive but the rate of gains in net employment generation has tapered down to its lowest position in the past three surveys. Last year’s projections for employment changes were optimistic but these, in fact, failed to materialise. Indeed, in 2012, 9 per cent of firms had indicated that they were planning to discharge workers. In 2013, this increased to 23 per cent. The economy remains heavily reliant on the performance of export-oriented operations compared to the changes in local sales. But, again, the share of companies that registered a decline in their exports in 2013 was almost double those projected (25 per cent against a projected 13 per cent). The decline in export orders was also captured in official NSO data related to industrial production. The projected parameters for 2014 were overall positive. The net balance for Business Confidence increased from +6 points in 2012 to +14 points in 2013 and to a projected high of +30 points for 2014. This result is an indication of resilient attitudes which policy-makers should strive to support. And while the anticipated performance of the main areas addressed for next year follow a pattern that had been emerging in recent years - more restrained growth in both the Manufacturing and Services sectors on the Local market than in the export sector - the fact that respondents, in the net, are planning to expand their plants implies the presence of an underlying process of adjustment by industry to the evolving economic realities in the respective areas in which they operate.

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European Economic and Social Committee Established by the Treaty of Rome in 1957, the European Economic and Social Committee (EESC) is considered to be a bridge between Europe and civil society. It is a consultative body that gives representatives of Europe’s employers, employees and civil society a formal platform to express their points of view on EU issues.

Lessons from the economic crisis: An employer’s perspective

he Opinions of the EESC are formally submitted to the main EU institutions - the Council, the Commission and the European Parliament – which in turn are ‘obliged’ to take into consideration the views of civil society when formulating EU legislation. The EESC therefore has a formal role in the EU’s decision-making process which is established by the European Treaties. The EESC is made up of three groups which represent the different social partner groupings, Employers, Employees and Various Interest Groups. Malta has five members in the EESC, two representing employers, two representing employees (unions) and one representing civil society. Past President Stefano Mallia is one of the two members appointed by Government to represent employers in Malta. Throughout the year, Mr Mallia kept close contact with the Malta Chamber to inform it about discussions being held within the EESC. Mr Mallia continued to take a very active role within the EESC and participates as a member in the following sections: • Internal Market Section (INT) • Economic and Monetary Union Section (ECO) • Agriculture and Environment Section (NAT) • He is also a member of the Single Market Observatory.

n 11th October, the Malta Chamber was the venue for a conference organised by the Employers’ Group of the European Economic and Social Committee (EESC), the Malta Chamber and other social partners. The objective of the conference was to initiate a frank and open debate on the various responses to the financial and economic crisis in EU Member States and analyse them from a business perspective. The aim was to encourage an exchange of views, diagnoses and practices between EESC Employers’ Group Members and leading Maltese business representatives. Malta Chamber President David G. Curmi opened the conference together with President of the Employers’ Group of the EESC Jacek Krawczyk. The President said that in the Malta Chamber’s point of view, the problems of the euro zone were well understood. Some countries needed to strengthen their balance sheets and improve their competitiveness through reform. From a local dimension he said that ever since the emergence of the financial crisis, the Malta Chamber had called for economic direction based on two principles, these were: wealth had to be generated before it was distributed and any solution to the economic predicament needed to be based on growth. He said that the Malta Chamber believed that wages must be better aligned to productivity especially when considering that other countries were implementing major reforms to

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The malta chamber of commerce, enterprise and industry

become more productive and cost-competitive. He said that the country’s productive capabilities must be given a significant boost through competitiveness-enhancing measures in order to increase its labour force and productivity, as well as the economy’s capabilities to absorb the required added resources. Concluding his address, the President said that “business is not the problem, but rather the solution. Therefore, business has to take centre stage in the new economic plans the EU will be proposing and possibly introducing over the months to come.” Two panel discussions followed. The first dealt with questions from a national point of view and an exchange of ideas as to how the governments and employers were dealing with the crisis and the best practices adopted. The first panel was moderated by Vanessa Macdonald and included the following members of the EESC Employers Group: David Croughan, Economist; Irini Ivoni Pari, Hellenic Federation of Enterprises; Peter Clever, German Employers’ Association BDA and Peter Morgan, an independent businessman. The second panel was moderated by Stefano Mallia, Vice President of the EESC Employers’ Group. It discussed Europe’s response to the economic crises and whether the EU was aware of the needs and realities of employers. The panel was composed of the Hon. Dr Mario de Marco - Deputy Leader of the Opposition and Spokesman on the Economy, Investment and Small Business, Gérald Petit - Policy Analyst - Analysis of Economic Reforms, DG Enterprise, David G. Curmi - President of the Malta Chamber, Arthur Muscat – President, MEA, Tony Zahra – MHRA President and Paul Abela – GRTU President. The closing address was delivered by the Prime Minister, the Hon. Dr Joseph Muscat. Euro-Mediterranean Conference - Textiles and Clothing

n 10th and 11th April, the Malta Chamber hosted the Euro-Mediterranean Conference on Skills Development and Social Dialogue for the Textile and Clothing Sector in the Euro-Mediterranean Area. The event was organised by the European Commission DG Enterprise and Industry in cooperation with the Malta Chamber. The two-day conference was attended by 124 delegates from Europe, North Africa, the Middle East and the Balkan States. The key questions discussed during the Conference were: • How can we assure that the training offered by educational institutes match the needs of textile and clothing companies in the Euro-Mediterranean Area? • What can national, European and International Institutions/social partners/key interlocutors in Education and Training do to enhance the skills development in the textile and clothing industry in the Euro-Mediterranean Area? Then Board of Management member Stefano Mallia, opened the conference. Malta Chamber Vice President Frank V. Farrugia addressed delegates at the close.

Annual Administrative Report 2013-2014

Malta Business Bureau 2013 has been an eventful year for Malta – not only because it went through a general election, but also because this year brought with it the end of the first programming period of EU Funds. The MBB played a particularly active role on both fronts on behalf of the local business community. Furthermore, the Bureau was also active on the policy front as well as in the implementation of EU Funded projects. Publications

uring the frenzy of the electoral campaign, the organisation was pleased to note consensus among the political parties on the need to bring Malta to the forefront of the European Union. In reaction to this, the MBB highlighted the challenging obligations arising from the EU’s long-term competitiveness agenda, as set out in the Europe 2020 Strategy. This was done in a report that was presented to the political parties. The organisation believes that the future of our business economy can only be secured if these challenging targets are given centre stage on our political agenda. The message particularly focused on the importance of enhancing European market access to facilitate cross-border trade in goods and services. The MBB views this as the most effective means to achieve a balance between business competitiveness and environmentally sustainable operations, whilst nurturing a dynamic, skilled and flexible labour market. The Bureau has also expressed its commitment to support the Maltese authorities in implementing the recommendations as outlined in the report to improve Malta’s performance within the EU.

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Impact Assessments

Conferences and Seminars

January – An MBB delegation composed of President George Vella, CEO Joe Tanti and Permanent Delegate in Brussels Omar Cutajar paid a courtesy visit to European Commissioner Michel Barnier in Strasbourg. The purpose of the meeting was for the MBB to communicate to the Commissioner the results emanating from a study the Bureau conducted in 2012 on the experience of Maltese businesses in the European Single Market. The report was also presented to a number of MEPs, including Internal Market Committee’s (IMCO) Chair MEP Malcolm Harbour, and the European People Party’s IMCO Coordinator MEP Andreas Schwab.

n 2013, the MBB was also very active with the publication of two major reports focusing on identifying the local market gaps in access to finance, and the more efficient allocation of EU Funds in aid of private enterprise in the next programming period, between 2014 and 2020. These two reports served as a strong base for the organisation’s lobbying efforts with Government and stakeholders on the serious repercussions that limited access to finance in Malta is having on SMEs and economic growth. The MBB argued for more varied financial instruments, given that currently the only realistic ones available for businesses are bank loans and overdrafts. These may not necessarily be the most appropriate for enterprises particularly in their startup phase. It also argued for a larger allocation of EU Funds to be exclusively invested in the private sector, compared to the previous programming period 2007-2013. Detailed economic arguments are provided, explaining the proven positive impact this would have on the economy. EU Funded Projects

013 saw the successful conclusion of the SHIFT project, aimed to promote flexible work arrangements and familyfriendly measures in the private sector, and also entered the final stages in the implementation of the EU LIFE+ Investing in Water project. As a follow-up to the SHIFT project, a survey was conducted with enterprises to assess the extent of flexiblework arrangements measures being undertaken in the Maltese private sector. Among others this resulted that 91 per cent of respondents agreed that implementing such measures at the workplace lead to increased loyalty towards the organisation. The survey also revealed that 42 per cent of enterprises believe that flexible work measures help motivate employees and 64 per cent of companies associate such measures with the retention of trained and valued employees. During 2013, the EU Life+ Investing in Water Project has held water audits in 72 enterprises, 6 workshops for technical staff and 9 workshops for general employees. A booklet detailing water saving solutions was distributed widely amongst members of the Malta Chamber, while an online self-assessment tool has been made available on the project website - www.investinginwater.org. This tool allows enterprises to enter their water consumption related data, then analyses it and suggests several water saving solutions for implementation, quantifying the financial and water savings benefits of these solutions for the enterprises given its circumstances. Furthermore, the MBB has consulted industry in order to help identifying what issues should be tackled via new project proposals, which shall be submitted in 2014.

February – The MBB held a two-day specialised training programme on accessing direct EU funding programmes for businesses. It provided executives and entrepreneurs with the necessary knowledge, skills and practical understanding for how best to submit an EU-project proposal and subsequently manage the funded project. The training was conducted by EU project management expert Francesco Vallebona, Director of the Brussels-based consultancy Medin Europe. May – A business seminar on ‘Improving Access to Finance for SMEs’ was organised to discuss the findings of the MBB-BOV study on Market Gaps in Access to Finance. This served as an exchange of views with the Maltese business community, public officials, stakeholders and entrepreneurs, particularly on how EU Funds in the new programming period 2014-2020 can be utilized better to address this issue. June – A debate was held between MEPs, the business community and members of the accounting profession on the Single Accounting Directive that the European Parliament approved in June.

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The malta chamber of commerce, enterprise and industry

The Accounting Directive is set to reduce business costs by simplifying accounting obligations for small and medium businesses. The event was co-organised by the European Parliament Information Office (EPIO) in Malta, the MBB and the Malta Institute of Accountants (MIA). September – The MBB and EPIO co-organised a stakeholders’ seminar on Online Gambling. The two organizers collaborated on this event because the online gambling market is growing very rapidly, with betting being the biggest sector. Gambling is regulated by the Member states. Frameworks vary with some member states having no specific regulation, some employing licensing systems and others imposing complete bans. Also, the seminar followed a resolution that was adopted by the European Parliament on 20th September. November – For the 2013 SME Week activities, a full day event was organised on “Tendering Opportunities for SMEs” with the support of the Ministry for the Economy, Investment and Small Business. The morning session was coordinated by the MBB and Malta Enterprise. This focused on ‘Participating in International Tenders’ and was aimed at those companies who would like to direct their business development strategies towards international procurement. An afternoon session was coordinated by Malta Chamber that focused on ‘Facilitating Public Procurement Procedures for SMEs’.

Annual Administrative Report 2013-2014

Malta Business Bureau – Putting Maltese enterprises at the centre of the EU

014 promises to be an equally busy yet interesting year for the MBB with a number of important projects lined up. The MBF Board has given a clear mandate for the MBB to participate in further strategic EU Funded Projects and play an active role in the upcoming Malta’s EU Presidency in 2017. In this respect, the MBB will be looking to identify and submit more project proposals for EU Funding to benefit the Maltese business community. Furthermore, following its active lobbying for the varying of financing options for SMEs, the Bureau is committed to move on from words to action. Over the past weeks an exciting project has been developed, which will see the introduction of the first Crowdfunding platform in Malta. This shall be launched in 2014. This non-profit initiative will offer an alternative means of raising finance to young entrepreneurs, particularly start-ups. The project will be spearheaded by the MBB and the University of Malta. Through its Brussels representation office, the MBB shall continue performing its core role of informing the Maltese business community on any policy development taking place at EU-level. It will continue assisting enterprises with specific queries relating to legislations affecting particular sectors and EU-funding opportunities, while remaining very active in the media. Interestingly, the MBB’s quarterly newspaper Business Agenda will this year be entering its 5th year of publication. Finally, the Bureau is committed to continue building on previous work. It will look forward to develop its services further, become more relevant to the local business community and aim to bring them closer to the EU.

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Malta Chamber Nominees on Government Boards and other Committees Be Smart Online Advisory Board Mr George Sammut Building Industry Consultative Council (BICC) Mr Ian Casolani Mr David Xuereb Crafts Council Mr Joe Said E.Business Awards Committee Mr Chris Vassallo Cesareo eSkills Board of Governors Mr Keith Fearne Employment Relations Board & Gurantee Fund Administration Board Mr Frank V. Farrugia Mr John B. Scicluna Jobs Plus Committee Mrs Catherine Calleja Mr Kevin J. Borg Industrial Tribunals Mr Reginald Fava Ms Mary Gaerty Ms Marlene Seychell Malta College of Arts, Science and Technology - Gateway to Industry Ltd: Board of Directors Ing. Charles Brincat Malta Council for Economic & Social Development (MCESD) Mr David G. Curmi Mr Anton Borg Mr Norman Aquilina (alternate) Mr Kevin J. Borg (alternate) Malta Council for Economic & Social Development (MCESD) - Restructuring Committee Mr Kevin J. Borg

Malta Council for Science & Technology (MCST) Board of Directors Ms Claudine Cassar

Monitoring Committee for the Structural Funds Mr Andre Fenech Mr Joe Tanti

Malta Enterprise Board of Directors Mr David G. Curmi Mr Anton Borg

National Accreditation Board (Malta) Mr Charles M. Mercieca Mr Adrian Zahra Ing. Noel Micallef Ing. Charles Brincat

Malta Environment & Planning Authority (MEPA) Usersâ&#x20AC;&#x2122; Committee Mr Ian Mizzi Mr David Xuereb Malta Statistics Authority (representing all employers) Dr Emanuel P. Delia Malta-EU Steering Action Committee (MEUSAC) Ms Claudine Cassar Mr Chris Vassallo Cesareo Mr Andre Fenech (alternate) Ministry for the Economy, Investment and Small Business Family Business Act Committee Mr Lino Mintoff Ministry of Foreign Affairs Joint Stakeholders Working Council Mr Tonio Casapinta Monitoring Committee for Operational Programme II, Cohesion Policy 2007-2013: Empowering people for more jobs and better quality of life Mr Andre Fenech Mr Joe Tanti Monitoring Committee for Operational Programme I, Cohesion Policy 2007-2013: Investing in competitiveness for a better quality of life Mr Andre Fenech Mr Joe Tanti

National Commission for Sustainable Development Mr David Xuereb National Employment Authority Mr Reginald Fava National SEPA Coordination Committee Mr Peter Sant Property Market Value Index Mr Louis Apap-Bologna Mr Douglas Salt Retail Price Index Consultative Committee Mr John B Scicluna Skills Council Mr Kevin J. Borg Valletta Alive Foundation Mr Anthony T. Camilleri Valletta 2018 Foundation Mr David G. Curmi Working Committee on Pricing of Medicine Products Mr Robert Magri Mr Daniel Vella Friggieri Working Group - Cruise Liner Operations Mr Joe Gerada Permanent Residency Scheme Commission Mr John Huber

The malta chamber of commerce, enterprise and industry Annual Administrative Report 2013-2014

Employers’ Nominees on Boards and Committees of the European Community (Representing all Malta’s Employers) European Agency for Health and Safety at Work - Bilbao Agency

Mr John B. Scicluna

European Centre for the Development of Vocational Training (CEDEFOP)

Mr John A. Huber

European Community Advisory Committee on Free Movement of Workers

Mr John A. Huber

European Community Advisory Committee on Safety & Health Protection at Work

Mr John B. Scicluna

European Community Advisory Committee on Social Security for Migrant Workers

Mr John A. Huber

European Economic and Social Committee

Mr Stefano Mallia

Malta Chamber Nominees on Non-Government Boards and other Committees Brewers of Europe Mr Louis A. Farrugia Mr Anthony J. Tabone (alternate)

EUROCHAMBRES Board of Directors Mr John A. Huber

BUSINESSEUROPE The Confederation of European Business Mr David G. Curmi

EUROCHAMBRES DG’s Committee Mr Kevin J. Borg

BUSINESSEUROPE Entrepreneurship and SMEs Committee Mr Lino Mintoff

EUROCHAMBRES Strategic Committee Board of Directors Mr John A. Huber Eurofound Governing Board Mr David G. Curmi

BUSINESSEUROPE Executive Committee Mr Kevin J. Borg

European Organisation for Quality Mr John B. Scicluna

CEPS - European Spirits Association Mr Anthony Miceli-Demajo

Industrial Management Development Foundation (IMDF) Mr Edmund Tabone

Conservatorio Vincenzo Bugeja Committee Mr Andrew W.J. Mamo Mr Gino Cutajar Mr David Xuereb Enterprise Policy Group Mr Norman Aquilina

Malta Business Foundation Mr Anton Borg Mr Charles Zahra Mr Charles Brincat Mr Mario Spiteri

Malta Chamber Foundation Mr Michael Scerri Mr Norman Aquilina Mr Frank V. Farrugia Malta Community Chest Fund Mr John Huber Mr Mario Spiteri Malta Trade Fairs Corporation Mr Gino Cutajar Mr Aldo Calleja Mr Mario Spiteri Mr Charles A. Zahra Maltese-Arab Chamber of Commerce Mr Frank V. Farrugia Mr Joseph Pace Swiss-Maltese Chamber of Commerce Mr Reginald Fava

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Make it an event to remember at The Exchange Buildings

The Seat of the Malta Chamber Background

The Exchange Buildings are the work of Architect Giuseppe Bonavia. The Exchange Buildings were completed and inaugurated in 1857 â&#x20AC;&#x201C; nine years after the formal establishment of the Malta Chamber. Today, the unique neo-classical style of the Exchange Buildings is viewed, not only as the seat of the business community, but as an elegant and prestigious location for business and social events. Over the years, the building has been maintained to the highest of standards providing a magnificent venue for a variety of events.

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A tour around the building... The Courtyard The imposing entrance of the Exchange leads on to the naturally-lit Lewis Farrugia Courtyard. The Courtyard is an ideal venue for exhibitions, press conferences, receptions, lunches and meetings. The Sir Agostino Portelli Hall An elegant staircase and landing take one to the Sir Agostino Portelli Hall on the first floor. A graceful ballroom, the hall is adorned with portraits of past presidents by Malta’s foremost artists. The hall opens up onto a spacious balcony overlooking Republic Street. The hall may be used for business lunches, dinners, receptions, conferences, seminars, meetings, product launches, etc. The landing can be made available for drinks and coffee breaks. Aula Conciliaris Also on the first floor is the Aula Conciliaris, also known as the Council Room. Reminiscent of a gentleman’s club this handsome room is mainly used as a meeting room. It has also been the venue for exclusive business lunches and dinners with guests including HRH the Duke of York, Heads of State and Prime Ministers. The beautiful period furniture includes three magnificent 18th century paintings of the Grand Harbour and a board/dining table which can comfortably accommodate 20 persons. The Banif Bank Lecture Hall The Banif Bank Lecture Hall is another facility offered by the Malta Chamber. Seating 36 persons, this room is perfect for company workshops and training courses. The BOV Meeting Room Another smart addition to the Malta Chamber’s facilities is the BOV Room. This Board Room seats twelve people and is ideal for less formal gatherings. Wi-Fi cordless internet facilities are available throughout the building. All the rooms are fully air-conditioned and equipped with audio and visual aids for presentation purposes.